Franklin BSP Realty Trust : FBRT Third Quarter 2024 Supplemental Information

Published: 2024-11-05 01:03:29 ET FBRT

Third Quarter 2024

Franklin BSP

Realty Trust

Supplemental 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" in our Annual Report on Form 10-K filed with the SEC on February 26, 2024, and the risk disclosures in our subsequent periodic reports filed with the SEC for a discussion of these risks.

Forward-Looking Statements

Certain statements included in this presentation are forward-looking statements. Those statements include statements regarding the intent, belief or current expectations of Franklin BSP Realty Trust, Inc. ("FBRT" or the "Company") and may include the assumptions on which such statements are based, and generally are identified by the use of words such as "may," "will," "seeks," "anticipates," "believes," "estimates," "expects," "plans," "intends," "should" or similar expressions. Actual results may differ materially from those contemplated by such forward-looking statements. Factors that could cause actual outcomes to differ materially from our forward-looking statements include macroeconomic factors in the United States including inflation, changing interest rates and economic contraction, impairments in the value of real estate property securing our loans or that we own, the extent of any recoveries on delinquent loans, and the financial stability of our borrowers, and the other factors set forth in the risk factors section of our most recent Form 10-K and Form 10-Q. The extent to which these factors impact us and our borrowers will depend on future developments, which are highly uncertain and cannot be predicted with confidence. Further, forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, except as required by law.

Additional Important Information

The summary information provided in this presentation does not purport to be complete and no obligation to update or otherwise revise such information is being assumed. Nothing shall be relied upon as a promise or representation as to the future performance of the Company. This summary is not an offer to sell securities and is not soliciting an offer to buy securities in any jurisdiction where the offer or sale is not permitted. This summary is not advice, a recommendation or an offer to enter into any transaction with us or any of our affiliated funds. There is no guarantee that any of the goals, targets or objectives described in this summary will be achieved.

The information contained herein is not intended to provide, and should not be relied upon for, accounting, legal, ERISA or tax advice or investment recommendations. Investors should also seek advice from their own independent tax, accounting, financial, ERISA, investment and legal advisors to properly assess the merits and risks associated with their investment in light of their own financial condition and other circumstances. The information contained herein is qualified in its entirety by reference to our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. You may obtain a copy of the most recent Annual Report or Quarterly Report by calling (844) 785-4393 and/or visiting www.fbrtreit.com.

This presentation contains information regarding FBRT's financial results that is calculated and presented on the basis of methodologies other than in accordance with accounting principles generally accepted in the United States ("GAAP"), including Distributable Earnings. Please refer to the appendix for the reconciliation of the applicable GAAP financial measures to non-GAAP financial measures.

PAST PERFORMANCE IS NOT A GUARANTEE OR INDICATIVE OF FUTURE RESULTS. INVESTMENTS INVOLVE SIGNIFICANT RISKS, INCLUDING LOSS OF THE ENTIRE INVESTMENT. There is no guarantee that any of the estimates, targets or projections illustrated in this summary will be achieved. Any references herein to any of the Company's past or present investments, portfolio characteristics, or performance, have been provided for illustrative purposes only. It should not be assumed that these investments were or will be profitable or that any future investments will be profitable or will equal the performance of these investments. There can be no guarantee that the investment objective of the Company will be achieved. Any investment entails a risk of loss. An investor could lose all or substantially all of his or her investment. Please refer to our most recent Annual Report on Form10-Kand Quarterly Report on Form10-Qfor a more complete list of risk factors. The following slides contain summaries of certain financial information about the Company. The information contained in this presentation is summary information that is intended to be considered in the context of our filings with the Securities and Exchange Commission and other public announcements that we may make, by press release or otherwise, from time to time.

B E N E F I T S T R E E T P A R T N E R S |A L C E N T R A

FBRT 3Q 2024 Financial Update

Highlights

Earnings

Capitalization

Investments

Portfolio

B E N E F I T S T R E E T P A R T N E R S |A L C E N T R A

FBRT 3Q 2024 Financial Update

Financial Highlights

Income Statement

Net interest income / other income

Operating expenses

(1)

Provision for credit loss

Other income/(loss)

GAAP net income (loss)

Adjustments to GAAP net income (loss)

(2)

Distributable Earnings

(2)

GAAP net income (loss) per share, fully converted

(3)

GAAP return on common equity

GAAP dividend coverage, fully converted

(2), (3)

Distributable Earnings per share, fully converted

(2), (3)

Distributable Earnings return on common equity

(2)

Distributable Earnings dividend coverage, fully converted

(2), (3)

Dividend per share

Dividend per share yield on book value

Balance Sheet - Assets (End of Quarter)

$48.1

Total core portfolio

$5,077.5

(18.6)

Total real estate securities

210.7

0.3

Cash and restricted cash

353.9

0.5

CLO reinvestment available

137.6

$30.2

Other assets

555.4

(34.1)

Total assets

$6,335.0

(4.0)

Balance Sheet - Debt & Equity

$0.30

Collateralized loan obligations

$4,097.7

7.9%

Warehouse

183.8

85.3%

Repo - securities

241.3

Asset specific financings

36.9

($0.10)

Unsecured debt

81.4

(2.6%)

Total Debt

$4,641.1

(27.9%)

Preferred equity

(4)

348.5

Common stock/retained earnings

(5)

1,265.5

$0.355

Total equity

(4), (5)

1,614.0

9.3%

Book value per share, fully converted

(3)

$15.24

Net debt/total equity

2.66x

Recourse net debt/total equity

0.12x

Note: All numbers in millions except per share and share data.

B E N E F I T S T R E E T P A R T N E R S |A L C E N T R A

FBRT 3Q 2024 Financial Update

Earnings & Distributions

Distributable Earnings ($M) (1)

GAAP Net Income (Loss) ($M)

$39.3

$41.0

$32.4

-$4.0

$35.8

$30.0

$30.2

-$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

Dividend per share

$0.39

$0.41

$0.31

($0.10)

Distributable earnings per share, fully converted

109%

115%

87%

(28%)

Distributable dividend coverage, fully converted

(1), (2)

Note: All numbers in millions except per share data.

B E N E F I T S T R E E T P A R T N E R S |A L C E N T R A

FBRT 3Q 2024 Financial Update

Core Net Fundings

3Q 2024 ($M)

YTD 2024 ($M)

2 4

,43

Total Commitment

of $380M

44 ,2

,002

,04

Total Commitment

of $1,593M

24 oans

undin s on

undin

s on

epayments

(1 )

24 oans

23 oans

undin s on

undin

s on

epayments (1 )

24 oans

utstandin

oans

istin

oans

oreclosures(2 )

utstandin

oans

istin

oans

oreclosures(2 )

utstandin

Note: All numbers in millions.

B E N E F I T S T R E E T P A R T N E R S |A L C E N T R A

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)

Collateralized Loan

Obligations

88%

Warehouse

Repo - Securities

Asset Specific

Financings

Unsecured Debt

3.00x

2.66x

2.50x

2.00x

1.50x

1.00x

0.50x

0.12x

0.00x

Recourse Net Leverage

Total Net Leverage

B E N E F I T S T R E E T P A R T N E R S |A L C E N T R A

FBRT 3Q 2024 Financial Update

Financing Detail

CLOs

Warehouse/Revolver/Other

Reinvest

Cost of

CLO Name

Debt Amount(1)

End Date

Debt(2)

BSPRT 2021-FL6

$402 million

Ended

S + 1.56%

BSPRT 2021-FL7

$611 million

Ended

S + 1.69%

BSPRT 2022-FL8

$895 million

Ended

S + 1.74%

BSPRT 2022-FL9

$618 million

Ended

S + 2.84%

BSPRT 2023-FL10

$717 million

4/8/25

S + 2.59%

BSPRT 2024-FL11

$886 million

10/8/27

S + 1.99%

Total

$4,129 million

CLO reinvestment

$138 million

available

Repo - Securities

$241 million

(outstanding)

Name

Commitment (3)

Barclays (Warehouse)

$500 million

Wells Fargo

$400 million

JP Morgan

$500 million

Atlas SP Partners

$350 million

Churchill

$225 million

Barclays (Secured Revolver)

$100 million

Total

$2,075 million

B E N E F I T S T R E E T P A R T N E R S |A L C E N T R A

FBRT 3Q 2024 Financial Update

Liquidity

Liquidity ($M)

, 2

nrestricted

ein estment

inancin

Total

Cash

ailable

i uidity

ro ress (1)

1. Represents cash available at 9/30/2024 that we can invest at a market advance rate utilizing our available capacity on financing lines

B E N E F I T S T R E E T P A R T N E R S |A L C E N T R A

Disclaimer

Franklin BSP Realty Trust Inc. published this content on November 04, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 05, 2024 at 06:02:17.693.