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Franklin Bsp Realty Trust, Inc. (FBRT)
NYSE:FBRT
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Franklin BSP Realty Trust
(NYSE:FBRT)
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Rating:61Neutral
Price Target:
$11.00
â–²(2.52% Upside)
Action:ReiteratedDate:12/09/25
The overall stock score reflects a mixed outlook for Franklin BSP Realty Trust. The most significant factor is the financial performance, which is challenged by declining revenues and high leverage. Technical analysis shows a neutral trend with mild bullish momentum. Valuation is reasonable, supported by a high dividend yield, but sustainability is a concern. The earnings call provided a positive outlook with strategic achievements, and the recent securitization deal enhances financial flexibility.
Positive Factors
Successful Acquisition and Integration
The acquisition of NewPoint enhances FBRT's capabilities, contributing significantly to earnings and expanding its servicing portfolio, which supports long-term growth.
Strong Liquidity Position
A strong liquidity position and expanded origination capacity through the CRE CLO enhance FBRT's ability to invest in growth opportunities and manage debt.
Major Securitization Deal
The securitization deal improves financial flexibility, allowing FBRT to repay debt and fund future loans, strengthening its market position and potential returns.
Negative Factors
Declining Revenue Trend
A significant decline in revenue impacts FBRT's profitability and growth prospects, necessitating strategic adjustments to stabilize and grow its income streams.
High Leverage
High leverage poses risks, especially in a rising interest rate environment, potentially straining cash flow and limiting financial flexibility.
Dividend Undercovverage
Dividend undercoverage indicates potential sustainability issues, affecting investor confidence and possibly requiring adjustments to dividend policy.
Franklin BSP Realty Trust (FBRT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$720.59M
Dividend Yield13.31%
Average Volume (3M)887.30K
Price to Earnings (P/E)14.0
Beta (1Y)0.52
Revenue Growth-0.93%
EPS Growth-1.92%
CountryUS
EmployeesN/A
SectorReal Estate
Sector Strength53
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)0.12
Shares Outstanding81,606,606
10 Day Avg. Volume1,455,687
30 Day Avg. Volume887,304
Financial Highlights & Ratios
PEG Ratio-0.55
Price to Book (P/B)0.54
Price to Sales (P/S)1.48
P/FCF Ratio0.00
Enterprise Value/Market Cap6.63
Enterprise Value/Revenue8.45
Enterprise Value/Gross Profit14.31
Enterprise Value/Ebitda20.41
Forecast
1Y Price Target
$13.00Price Target Upside21.16% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.29
Revenue Forecast (FY)$379.24M
Franklin BSP Realty Trust Business Overview & Revenue Model
Company DescriptionFranklin 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.
How the Company Makes MoneyFranklin BSP Realty Trust generates revenue primarily through the acquisition, management, and leasing of its real estate properties, as well as through the origination of real estate-related debt investments. Key revenue streams include rental income from tenants occupying the properties within its portfolio, interest income from mortgage loans and other debt instruments, and potential gains from the sale of properties or refinancing of debt. The company may also enter into partnerships with other investors or real estate firms to co-invest in larger projects, which can provide additional revenue opportunities through shared profits and management fees.
Franklin BSP Realty Trust Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Neutral
The call balanced strategic, longer-term positives — leadership continuity, NewPoint integration, MSR and servicing scale, expanded CLO capacity, continued buybacks and a targeted origination pipeline — against near-term headwinds including a dividend reset to $0.20, $9.8M of realized losses (including debt extinguishments), slower-than-expected REO liquidations, and compressed market spreads that pressure short-term returns. Management emphasized that the company is intentionally repositioning from a pure-play mortgage REIT to a diversified commercial real estate investment platform focused on sustainable dividend coverage, book value growth and recurring fee income. Execution on REO resolutions, NewPoint integration (including the $10B BSP migration) and redeployment of capital will be key to restoring prior earnings power.Q4-2025 Updates
Positive Updates
Leadership Transition and Strategic Positioning
Appointed Michael Comparato as CEO and Brian Buffone as President, signaling continuity and experienced leadership to execute the enlarged commercial real estate investment platform following the NewPoint acquisition.
NewPoint Acquisition and Recurring Revenue
NewPoint integration progressing; NewPoint expected to contribute approximately $25 million to $33 million of distributable earnings annually. Servicing book was $47.8 billion at quarter end and is expected to increase by ~ $10 billion after BSP migrations, supporting more stable, fee-based revenue.
Mortgage Servicing Rights (MSR) Contribution
MSR portfolio valued at ~ $220 million generated $8.8 million of income in Q4 (implied average MSR rate ~82 bps; implied life ~6.4 years), adding recurring income to the business mix.
Core Portfolio Growth and Originations
Core portfolio finished Q4 at roughly $4.4 billion. Originations totaled ~$528 million of new commitments in Q4 versus ~$510 million of loan repayments, a modest net increase in principal balance as originations outpaced payoffs.
Financing and Capital Capacity Expansion
Completed a $1.0 billion CLO (FL12) in Q4 that increased non-recourse financing capacity, will lower financing costs in 2026 and add meaningful origination capacity; net leverage ended the quarter at 2.5x (recourse 0.81x).
Share Repurchases and Board Support for Equity
Repurchased $14.4 million of common stock in Q4 (contributed ~$0.05 to book value). Board reauthorized $50 million available for future repurchases through December 31, 2026.
Reported Earnings and CECL Movement
GAAP net income of $18.4 million ($0.13 per fully converted common share). Distributable earnings were $17.9 million ($0.12 per share); recorded a net CECL benefit of $4.8 million in the quarter.
Selective Origination Strategy and Robust Pipeline
Maintaining origination activity but avoiding the lowest-spread 'commodity' multifamily loans; weighted-average spread on new originations in Q4 was 284 bps and the company has a $1.7 billion under-application pipeline while pursuing higher-quality, diversified deal flow.
Negative Updates
Dividend Reset to $0.20 Per Share
Board approved a reduction of the quarterly dividend to $0.20 per common share beginning Q1 2026 to stabilize book value and better align dividend with current earnings; management described this as necessary after several quarters of distributing below earnings and shrinking book value.
Realized Losses and Debt Extinguishment Charges
Recorded $9.8 million of realized losses in the quarter (including $7.7 million related to debt extinguishments), which reduced reported distributable earnings; the debt extinguishment produced an approximate $0.07 per share charge.
Near-Term Earnings Impact and Timing of Recoveries
Distributable earnings were $0.12 per share; excluding realized losses and special items DE was ~$0.22 per share (nearly flat QoQ). Management noted that previously identified earning power remains but the timing to unlock earnings from REO and legacy positions is taking longer than expected.
Slower REO Liquidations and Legacy Asset Resolution
Foreclosure REO positions declined to 7 from 9, but liquidations are proceeding slower than anticipated; remaining REO and watch-list resolutions continue to delay redeployment of equity into higher-return core loans.
Tight Market Spreads and Rate Sensitivity
Spreads are at multi-decade tights and recent declines in SOFR have reduced short‑term returns on new originations; management cautioned against chasing compressed multifamily pricing, noting returns on many current bids are anemic and highly rate-sensitive.
NewPoint Contribution Muted in Q4
NewPoint contributed modestly in Q4 (lower origination cadence and higher TRS tax reserves reduced reported earnings in the quarter), delaying the near-term accretion expected from the acquisition even though long-term accretive benefits were reiterated.
Specific Credit Actions and Nonaccruals
Recorded ~$3 million of loan-specific CECL reserves for 4 watch-list loans; one loan was transferred to REO and charged off. A Georgia office loan remains on nonaccrual after an 18-month extension and principal paydown (original $27.5M to $21.1M).
Book Value Pressure and Market Valuation Disconnect
Book value per share ended the quarter at $14.15, with management noting dividends had outpaced earnings; management highlighted a perceived disconnect between book value and the company's trading price that will need to be addressed through demonstrated execution over coming quarters.
Company Guidance
Management's guidance emphasized a reset and near‑term stabilization: the quarterly dividend was reset to $0.20 per common share effective Q1 2026, while Q4 results showed GAAP net income of $18.4M ($0.13 per fully converted share) and distributable earnings of $17.9M ($0.12), or $0.22 per share excluding $9.8M of realized losses ( ~$7.7M from debt extinguishments); book value ended the quarter at $14.15 with $14.4M of share repurchases in Q4 (contributing ~$0.05 to book) and a $50M repurchase authorization; core loan portfolio was ~$4.4B (77% multifamily) after $528M of new commitments and $510M of repayments, with origination cadence of 37 loans at a 284 bp weighted‑average spread and a year‑end core target of $4.8–$5.0B; NewPoint guidance calls for agency volume of $4.5–$5.5B in 2026, a servicing book of $47.8B (adding ~ $10B of BSP loans), MSR value ≈ $220M generating $8.8M in Q4 (≈82 bps, 6.4‑year life) and an expected NewPoint distributable earnings run‑rate of ~$25–$33M per year; financing actions included a $1.0B CLO (FL12) and leverage ended the quarter at 2.5x (recourse 0.81x).Franklin BSP Realty Trust Financial Statement Overview
Summary
Franklin BSP Realty Trust faces challenges with declining revenues and high leverage, which could impact future profitability and financial stability. While some profitability metrics remain stable, the significant drop in cash flow and high debt levels are concerning. The company needs to address revenue growth and manage its debt to improve its financial health.Income Statement
The income statement shows a declining revenue trend with a negative revenue growth rate of -52.6% in the TTM period. Gross profit margin has decreased significantly from previous years, indicating pressure on profitability. However, the net profit margin remains relatively stable, suggesting some cost control measures are in place. The EBIT margin is exceptionally high in the TTM period, but this may not be sustainable given the revenue decline.45
Neutral
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 2.96, indicating significant leverage, which poses a risk in a rising interest rate environment. Return on equity is low at 4.52%, reflecting limited profitability relative to shareholder equity. The equity ratio is moderate, suggesting a balanced asset structure but with potential vulnerability due to high debt levels.50
Neutral
Cash Flow
Cash flow analysis indicates negative operating and free cash flows in the TTM period, with a substantial decline in free cash flow growth. The operating cash flow to net income ratio is negative, highlighting cash flow challenges. Despite this, the free cash flow to net income ratio is slightly above 1, suggesting that cash flow issues may be temporary or cyclical.40
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 555.09M | 548.92M | 569.53M | 367.36M | 221.65M |
| Gross Profit | 510.46M | 210.45M | 263.95M | 201.65M | 160.81M |
| EBITDA | 385.89M | 437.62M | 163.18M | 106.55M | 167.07M |
| Net Income | 82.27M | 68.89M | 145.22M | 14.43M | 25.70M |
Balance Sheet | |||||
| Total Assets | 6.06B | 6.00B | 5.96B | 6.20B | 9.47B |
| Cash, Cash Equivalents and Short-Term Investments | 185.18M | 184.44M | 337.60M | 415.04M | 4.72B |
| Total Debt | 4.24B | 4.31B | 4.18B | 4.45B | 7.57B |
| Total Liabilities | 4.44B | 4.48B | 4.37B | 4.63B | 7.76B |
| Stockholders Equity | 1.53B | 1.51B | 1.56B | 1.56B | 1.71B |
Cash Flow | |||||
| Free Cash Flow | 0.00 | 57.23M | 197.39M | 151.85M | 3.03B |
| Operating Cash Flow | 0.00 | 57.23M | 197.39M | 152.51M | 146.50M |
| Investing Cash Flow | 0.00 | -155.47M | 380.81M | 3.10B | 1.07B |
| Financing Cash Flow | 0.00 | -48.58M | -424.99M | -3.23B | -1.14B |
Franklin BSP Realty Trust Technical Analysis
Negative
10.73
Price Trends
10.06
Negative
10.24
Negative
10.40
Negative
Market Momentum
-0.37
Positive
33.53
Neutral
30.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FBRT, the sentiment is Negative. The current price of 10.73 is above the 20-day moving average (MA) of 9.73, above the 50-day MA of 10.06, and above the 200-day MA of 10.40, indicating a bearish trend. The MACD of -0.37 indicates Positive momentum. The RSI at 33.53 is Neutral, neither overbought nor oversold. The STOCH value of 30.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FBRT.
Franklin BSP Realty Trust Risk Analysis
Franklin BSP Realty Trust disclosed 57 risk factors in its most recent earnings report. Franklin BSP Realty Trust reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Franklin BSP Realty Trust Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $1.01B | 7.59 | 9.59% | 14.90% | 5.52% | -47.72% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
61 Neutral | $720.59M | 14.05 | 5.25% | 13.31% | -0.93% | -1.92% | |
57 Neutral | $1.45B | 6.12 | 15.59% | 20.03% | 72.30% | -54.02% | |
55 Neutral | $1.06B | 12.30 | 6.67% | 12.69% | -15.48% | -36.45% | |
49 Neutral | $757.56M | -9.64 | -6.84% | 13.13% | 34.68% | -251.91% | |
45 Neutral | $1.12B | -2.19 | -23.25% | 14.29% | 22.48% | 50.49% |
* Real Estate Sector Average
FBRT
Franklin BSP Realty Trust
8.83
-3.25
-26.89%
MFA
MFA Financial
9.92
0.50
5.30%
TWO
Two Harbors
10.68
-1.48
-12.18%
RWT
Redwood
5.98
0.12
2.05%
PMT
PennyMac Mortgage
12.13
-0.56
-4.44%
ORC
Orchid Island Capital
7.59
0.33
4.60%
Franklin BSP Realty Trust Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Franklin BSP Realty Trust Completes Major Securitization Deal
Positive
Oct 17, 2025
On October 15, 2025, Franklin BSP Realty Trust, Inc. completed a $1.076 billion commercial real estate mortgage securitization transaction through its subsidiary, BSPRT 2025-FL12 Issuer, LLC. The company sold approximately $947 million of the securitization’s notes in a private placement, which are secured by a portfolio of commercial and multifamily real estate mortgage loans. The proceeds will be used to repay existing credit facilities, fund future loans, and for general corporate purposes. This transaction is expected to enhance the company’s financial flexibility and strengthen its market position by allowing it to manage its portfolio effectively and potentially improve returns for stakeholders.
The most recent analyst rating on (FBRT) stock is a Hold with a $11.50 price target. To see the full list of analyst forecasts on Franklin BSP Realty Trust stock, see the FBRT Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.