Franklin Bsp Realty Trust, Inc. · NYSE:FBRT
Franklin Bsp Realty Trust — Q2 2022 Earnings Presentation
25 slides from Franklin Bsp Realty Trust's earnings presentation, Jul 29, 2022
Slide 1: Franklin BSP Realty Trust Supplemental Information Second Quarter 2022
Franklin BSP Realty Trust Supplemental Information Second Quarter 2022
Slide 2: Important Information
Important Information The information herein relates to the Company’s business and financial information as of March 31, 2022 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” in
Slide 3: FBRT 2Q 2022 Financial Update
FBRT 2Q 2022 Financial Update 3
Slide 4: Second Quarter 2022 Highlights
FBRT 2Q 2022 Financial Update: Second Quarter 2022 Highlights Earnings ― GAAP Net Income (Loss) of ($25.7) million or ($0.34) per fully converted share (1) ― Distributable Earnings (2) of $30.7 million or $0.29 per fully converted share (1) ― Declared a cash dividend of $0.355 per share, representin
Slide 5: QTD Highlights
FBRT 2Q 2022 Financial Update: QTD Highlights Income Statement Balance Sheet - Assets Net interest income / other income $37.3 Total core portfolio - end of quarter $5,182.5 (1) Operating expenses (18.0) Total ARMs - end of quarter $270.4 Trading and derivatives gain/(loss) on ARMs (15.5) Cash - end
Slide 6: Book Value Per Share, Fully Converted
FBRT 2Q 2022 Financial Update: Book Value Per Share, Fully Converted Book Value Per Share Roll (1) (3) (2) 1. Fully converted per share information assumes applicable conversion of our outstanding series of convertible preferred stock into common stock and the vesting of our outstanding equity compe
Slide 7: Earnings and Distributions
FBRT 2Q 2022 Financial Update: Earnings and Distributions Distributable Earnings ($M) (1) GAAP Net Income (Loss) ($M) Run-Rate Distributable Earnings (1) $38.5 $48.2 $30.1 $30.0 $40.0 $40.1 $34.6 $32.7 $30.7 $26.6 1Q'21 2Q'21 3Q'21 4Q'21 1Q'22 2Q'22 $24.8 ($22.5) ($25.7) $12.1 ($72.9) 1Q'21 2Q'21 3Q
Slide 8: Core Loan Originations
FBRT 2Q 2022 Financial Update: Core Loan Originations 2Q 2022 YTD 2022 Total Total Commitment Commitment $5,907 $1,623 $5,907 $1,020 Total Commitment $5,070 Total Commitment $4,815 +$837M +$1.1Bn Total Total Commitment Commitment (1) (1) Note: All numbers in millions. Numbers in charts above represe
Slide 9: Capitalization Overview
FBRT 2Q 2022 Financial Update: Capitalization Overview Financing Sources (1) Net Leverage FBRT average debt cost including financing costs 3.00x was 2.9% in 2Q22 vs. 1.4% last quarter 2.50x 2.39x Asset Specific Financings Unsecured Debt Repo - 2% 2% Securities 7% 2.00x Warehouse 18% 1.50x $4.5Bn Tot
Slide 10: Financing Detail
FBRT 2Q 2022 Financial Update: Financing Detail CLOs Warehouse/Revolver/Other Reinvest CLO Name Debt Amount (2) End Date Cost of Debt Name Commitment (1) BSPRT 2018-FL4 Called 2Q22 n/a n/a Barclays (Warehouse) $500 million BSPRT 2019-FL5 $293 million Ended L + 1.65% Wells Fargo $500 million BSPRT 20
Slide 11: Portfolio
Portfolio 11
Slide 12: Portfolio: ARMs Securities
Portfolio: ARMs Securities ARMs Portfolio Balances ($M) and Marks Balance Marks $7,134 129 .7 0 $7 , 00 $6 , 00 124 .7 0 $4,567 $5 , 00 119 .7 0 $4 , 00 114 .7 0 $3 , 00 $1,949 109 .7 0 $2 , 00 $104.1 $1 , 00 $103.0 104 .7 0 $101.5 $336 $270 $100.3 $0 $101.8 99.70 9/30/21 12/31/21 3/31/22 5/16/22 6/
Slide 13: Core Loan Portfolio Composition
Portfolio: Core Loan Portfolio Composition Portfolio Overview Portfolio Summary Collateral Summary − Total portfolio of $5.3 Senior Multifamily 99.7% 75% billion − 170 senior loans with average size of ~$31 million − 4 mezzanine loans with Office 9% Other average size of ~$4 Mezzanine 0.3% 1% Self-S
Slide 14: Core Originations in the Quarter
Portfolio: Core Originations in the Quarter Overview By Collateral Retail − Originated 19 loans for a 13% total commitment of $1.0 billion ($843 million of initial funding and $177 million of future funding) − Weighted average spread of 4.30% with an all-in coupon of approx. 6.00%1. Weighted average
Slide 15: Core Portfolio - Case Studies: Watch List Loans (Risk Rating 4&5)
Portfolio: Core Portfolio - Case Studies: Watch List Loans (Risk Rating 4&5) Investment Brooklyn Hotel Single Tenant Retail Portfolio Loan Type Floating Rate Senior Loan Floating Rate Senior Loan Investment Date Q4 2017 Q2 2022 Default Date Q2 2019 Q2 2022 Collateral 147-Key Hotel 24 Freestanding Re
Slide 16: Appendix
Appendix 16
Slide 17: Core Portfolio - FBRT Portfolio Details – Top Loans
Appendix: Core Portfolio - FBRT Portfolio Details – Top 15 Loans Origination Total Principal Fully Extended Loan Type Date Commitment Balance Carrying Value Spread All-in Yield (1) Maturity State Collateral Type As-is LTV (2) Loan 1 Senior Loan 6/1/22 $153 $127 $126 + 3.95% 6.13% 6/9/27 North Caroli
Slide 18: Core Portfolio - Risk Ratings
Appendix: Core Portfolio - Risk Ratings Our average risk rating was 2.1 for the quarter vs. 2.1 last quarter 91.9% 4.8% 2.2% 0.0% 1.1% 1 2 3 4 5 # of Loans 0 156 16 1 1 +/- vs 1Q’22 - +6 +1 - +1 Principal $- $4,829 $253 $57 $113 Balance Non-Accrual - - - 1 1 18 Note: Principal balance in millions.
Slide 19: Earnings Sensitivity − Positive earnings correlation to rising rates
Appendix: Earnings Sensitivity − Positive earnings correlation to rising rates Sensitivity on Index Rates (Annual EPS Impact) As of 7/25/22: 1M LIBOR: 2.30% $0.22 1M SOFR: 2.29% As of 6/30/22 $0.16 1M LIBOR = 1.79% 1M SOFR = 1.69% $0.11 $0.05 $0.00 ($0.02) -0.25% Base +0.50% +1.00% +1.50% +2.00% Cha
Slide 20: Core Portfolio – Allowance For Loan Loss
Appendix: Core Portfolio – Allowance For Loan Loss Allowance for Loan Loss by Collateral Type – Before Asset-Specific Reserve Office Other 3% 3% $ millions Hospitality Allowance for Loan Loss Balance at 3/31/22 $15.1 16% Provision for Credit Loss - General Reserve 4.1 Allowance for Loan Loss Balance
Slide 21: Segment Reporting Summary
Appendix: Segment Reporting Summary Weighted Average Shares Earnings Daily Average Nominal Outstanding, Fully Per Share, Fully Common Equity Return on (3) (3) ($000s) Converted Converted ($000s) Common Equity GAAP Net Income (Loss) ($25,710) 89,995,323 ($0.34) $1,470,643 (8.3%) (1) $24,797 89,995,32
Slide 22: GAAP Net Income to Distributable Earnings Reconciliation
Appendix: GAAP Net Income to Distributable Earnings Reconciliation 3Q'21 4Q'21 1Q'22 2Q'22 GAAP Net Income (Loss) 38.5 (72.9) (22.5) (25.7) Adjustments: Impairment of Acquired Assets (1) - 88.3 - - CLO Amortization Acceleration/CLO Call (2) (0.9) 2.7 (1.0) 3.2 (3) Unrealized (Gain)/Loss Reversal (0.
Slide 23: Book Value Per Share & Shares Outstanding
Appendix: Book Value Per Share & Shares Outstanding June 30, 2022 December 31, 2021 Stockholders' equity applicable to convertible common stock $ 1,423,185 $ 1,543,550 Shares: Common stock 83,709,798 43,951,382 Restricted stock 516,830 14,546 Series C convertible preferred stock 418,880 418,880 Seri
Slide 24: FBRT Income Statement
Appendix: FBRT Income Statement 24
Slide 25: FBRT Balance Sheet
Appendix: FBRT Balance Sheet 25
Franklin BSP Realty Trust — Q2 2022 Earnings Presentation on 6ix