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1. Company Snapshot

1.a. Company Description

Franklin BSP Realty Trust, Inc., a real estate finance company, originates, acquires, and manages a portfolio of commercial real estate debt secured by properties located in the United States.The company also originates conduit loans; and invests in commercial real estate securities, as well as owns real estate acquired through foreclosure and deed in lieu of foreclosure, and purchased for investment.In addition, it invests in commercial real estate debt investments, which includes first mortgage loans, mezzanine loans, bridge loans, and other loans related to commercial real estate.


The company qualifies as a real estate investment trust for federal income tax purposes.It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders.The company was formerly known as Benefit Street Partners Realty Trust, Inc.


Franklin BSP Realty Trust, Inc.was incorporated in 2012 and is headquartered in New York, New York.

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1.b. Last Insights on FBRT

Franklin BSP Realty Trust, Inc.'s recent positive drivers include a declared fourth quarter 2024 common stock dividend of $0.355 per share, indicating a commitment to shareholder returns. Additionally, the company's Q4 2024 earnings call highlighted its efforts to navigate the current market environment, with management providing guidance on its strategy to improve profitability. The recent dividend payout and management's forward-looking statements may have contributed to a positive outlook for the company.

1.c. Company Highlights

2. FBRT's Q3 Earnings: A Transitional Quarter with Promising Integration

FBRT reported distributable earnings of $0.22 per fully converted share, with a book value of $14.29 per fully converted share. The company's GAAP net income was $17.6 million or $0.13 per fully converted common share. The acquisition of NewPoint contributed $9.3 million to distributable earnings in its first full quarter, driving a record volume quarter of $2.2 billion of originations. However, the actual EPS came in lower than estimates at $0.22 versus $0.295, indicating a challenging quarter. Analysts estimate next year's revenue growth at 35.2%, suggesting a potential rebound.

Publication Date: Nov -25

📋 Highlights
  • NewPoint Integration Success:: Record $2.2 billion in originations post-acquisition, adding $1.8 billion to agency servicing portfolio, with $9.3 million distributable earnings in Q3.
  • Distributable Earnings:: $0.22 per fully converted share, driven by NewPoint's contribution and core portfolio performance, despite $0.13 GAAP EPS due to book value decline.
  • Portfolio Growth & Liquidity:: Core portfolio reached $4.4 billion (75% multifamily), $522 million liquidity, and 12th CRE CLO closed to refinance older CLOs.
  • Legacy Portfolio Management:: 40% of total loans are legacy (82% risk-rated 2-2), with 10 watch list positions and 2 Q4 REO sales expected.
  • Future Earnings Outlook:: Anticipated $0.05–$0.07/share boost from CLO refinancings in early 2026, targeting $5–$5.5 billion stabilized portfolio by 2026.

Financial Performance and Outlook

The company's core portfolio ended the quarter at $4.4 billion, and management expects it to return to its target size of at least $5 billion over the next few quarters. The average risk rating held steady at 2.3, and the company continues to make progress on the legacy portfolio. As Michael Comparato noted, the record quarter was largely due to a large transaction that may not be repeatable, but the cross-selling between NewPoint and the company is going well.

Valuation and Dividend Yield

With a P/B Ratio of 0.56 and a Dividend Yield of 14.12%, FBRT's valuation appears attractive. The company's ROE is 4.52%, and the Net Debt / EBITDA ratio is -0.6, indicating a healthy debt position. The P/E Ratio is 12.07, suggesting that the stock may be undervalued. As the company continues to optimize its portfolio and execute on its strategy, investors may be rewarded with improved financial performance and a stable dividend yield.

Operational Highlights and Market Conditions

The company's conduit business had a very strong quarter, reflecting improved CMBS market liquidity and healthy investor demand. Spreads on whole loan origination have tightened to less compelling levels, but FBRT is confident in its ability to underwrite attractive and differentiated deal flow. The company expects to close approximately $120 million of new loan commitments in the fourth quarter, and the pipeline remains strong.

Legacy Portfolio and Watch List

The majority of FBRT's legacy loans now represent approximately 40% of its total loan commitments, with 82% of these loans risk-rated at 2 or 2+. The company continues to actively manage its watch list, with 10 positions at the end of the quarter. One multifamily loan paid off in full, and the company expects to sell a few more assets in Q4. The REO portfolio has 9 foreclosure REO positions, and the company sold 1 multifamily asset during the quarter at its debt basis.

3. NewsRoom

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Analysts Set Franklin BSP Realty Trust, Inc. (NYSE:FBRT) Target Price at $14.67

Nov -25

Source: defenseworld.net

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Franklin BSP Realty Trust, Inc. $FBRT Shares Sold by Bank of New York Mellon Corp

Nov -22

Source: defenseworld.net

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4 High-Yield Real Estate Stocks to Buy as Investors Get Defensive

Nov -13

Source: marketbeat.com

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Y Intercept Hong Kong Ltd Raises Stake in Franklin BSP Realty Trust, Inc. $FBRT

Nov -06

Source: defenseworld.net

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Franklin BSP Realty: As Dividend Yield Expands To 14%, Fears Of A Cut Rise

Nov -03

Source: seekingalpha.com

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14% Dividend Yield Is Not Enough

Oct -31

Source: seekingalpha.com

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Mutual of America Capital Management LLC Sells 1,536 Shares of Franklin BSP Realty Trust, Inc. $FBRT

Oct -31

Source: defenseworld.net

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Franklin BSP Realty Trust, Inc. (FBRT) Q3 2025 Earnings Call Transcript

Oct -30

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.18%)

6. Segments

Real Estate Debt and Other Real Estate Investments

Expected Growth: 1.2%

Franklin BSP Realty Trust, Inc.'s 1.2% growth in Real Estate Debt and Other Real Estate Investments is driven by increasing demand for commercial properties, low interest rates, and a strong economy. Additionally, the company's diversified portfolio, strategic acquisitions, and effective asset management contribute to its growth.

Real Estate Owned

Expected Growth: 0.8%

Franklin BSP Realty Trust's 0.8% growth in Real Estate Owned is driven by increasing demand for commercial properties, strategic acquisitions, and a strong balance sheet. Additionally, the company's focus on diversified property types and geographic locations has contributed to its steady growth. Furthermore, the company's ability to effectively manage its portfolio and maintain a low debt-to-equity ratio has also supported its growth.

Real Estate Securities

Expected Growth: 1.1%

Franklin BSP Realty Trust, Inc.'s 1.1% growth in Real Estate Securities is driven by increasing demand for commercial properties, steady economic growth, and low interest rates. Additionally, the company's diversified portfolio, strategic acquisitions, and effective asset management contribute to its growth. Furthermore, the growing trend of e-commerce and logistics fuels demand for industrial and warehouse spaces, benefiting the company's investments.

Taxable Real Estate Investment Trust Subsidiary

Expected Growth: 0.9%

Franklin BSP Realty Trust's Taxable REIT Subsidiary growth is driven by increasing demand for commercial properties, strategic acquisitions, and effective asset management. The 0.9 growth rate is also attributed to a strong balance sheet, access to capital markets, and a diversified portfolio of properties across the US.

7. Detailed Products

Commercial Mortgage Loans

Franklin BSP Realty Trust, Inc. offers commercial mortgage loans to investors, providing financing for commercial properties such as office buildings, retail centers, and apartments.

Commercial Real Estate Investments

The company invests in commercial real estate properties, generating rental income and potential long-term appreciation in property value.

Real Estate Debt Investments

Franklin BSP Realty Trust, Inc. offers debt investments in real estate, providing financing for property acquisitions, developments, and refinancings.

Real Estate Equity Investments

The company invests in real estate equity, providing capital for property acquisitions, developments, and joint ventures.

8. Franklin BSP Realty Trust, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Franklin BSP Realty Trust, Inc. is medium due to the availability of alternative investment options in the real estate industry.

Bargaining Power Of Customers

The bargaining power of customers for Franklin BSP Realty Trust, Inc. is low due to the company's diversified portfolio and strong brand presence.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Franklin BSP Realty Trust, Inc. is medium due to the company's dependence on a few key suppliers for its operations.

Threat Of New Entrants

The threat of new entrants for Franklin BSP Realty Trust, Inc. is high due to the relatively low barriers to entry in the real estate industry.

Intensity Of Rivalry

The intensity of rivalry for Franklin BSP Realty Trust, Inc. is high due to the highly competitive nature of the real estate industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 71.73%
Debt Cost 7.17%
Equity Weight 28.27%
Equity Cost 10.72%
WACC 8.17%
Leverage 253.68%

11. Quality Control: Franklin BSP Realty Trust, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Franklin BSP Realty Trust

A-Score: 7.2/10

Value: 7.7

Growth: 6.8

Quality: 6.1

Yield: 10.0

Momentum: 3.0

Volatility: 9.3

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Manhattan Bridge Capital

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Value: 4.5

Growth: 5.0

Quality: 8.2

Yield: 10.0

Momentum: 6.0

Volatility: 9.0

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Ellington Financial

A-Score: 6.8/10

Value: 5.7

Growth: 3.0

Quality: 5.9

Yield: 10.0

Momentum: 6.0

Volatility: 10.0

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AG Mortgage Investment Trust

A-Score: 6.5/10

Value: 7.6

Growth: 3.3

Quality: 5.8

Yield: 10.0

Momentum: 5.0

Volatility: 7.3

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Lument Finance Trust

A-Score: 5.9/10

Value: 8.0

Growth: 3.3

Quality: 5.6

Yield: 10.0

Momentum: 2.0

Volatility: 6.3

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Sachem Capital

A-Score: 4.0/10

Value: 7.0

Growth: 1.0

Quality: 3.0

Yield: 10.0

Momentum: 0.0

Volatility: 3.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

10.64$

Current Price

10.64$

Potential

-0.00%

Expected Cash-Flows