Franklin Bsp Realty Trust, Inc. (FBRT)
NYSE:FBRT
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Franklin BSP Realty Trust
(NYSE:FBRT)
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Rating:54Neutral
Price Target:
$9.00
â–¼(-16.12% Downside)
Action:ReiteratedDate:02/26/26
The score is held back primarily by weaker financial quality—especially inconsistent cash generation and high leverage—alongside bearish technical trends. These are partly offset by a reasonable P/E and high dividend yield, and an earnings-call narrative focused on stabilizing dividend coverage and building more recurring fee income, though near-term execution risks remain.
Positive Factors
Recurring fee income from NewPoint MSR/servicing
Adding NewPoint shifts FBRT toward fee-based earnings with a large servicing base and MSR economics. The expected $25–$33M run-rate and a $47.8B servicing book (plus ~ $10B BSP migration) create more predictable, recurring revenue that stabilizes distributable earnings and reduces reliance on volatile loan spread income.
Negative Factors
Elevated leverage
A structurally high debt-to-equity ratio (~2.7–2.9) increases sensitivity to rising funding costs and property value declines. High leverage limits financial flexibility, magnifies mark-to-market volatility in earnings and book value, and constrains the company’s ability to absorb credit stress while pursuing originations or buybacks.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring fee income from NewPoint MSR/servicing
Adding NewPoint shifts FBRT toward fee-based earnings with a large servicing base and MSR economics. The expected $25–$33M run-rate and a $47.8B servicing book (plus ~ $10B BSP migration) create more predictable, recurring revenue that stabilizes distributable earnings and reduces reliance on volatile loan spread income.
Read all positive factors
Franklin BSP Realty Trust (FBRT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$701.97M
Dividend Yield13.31%
Average Volume (3M)1.15M
Price to Earnings (P/E)10.0
Beta (1Y)0.53
Revenue Growth-0.93%
EPS Growth-1.92%
CountryUS
Employees223
SectorReal Estate
Sector Strength53
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)0.12
Shares Outstanding80,965,790
10 Day Avg. Volume691,494
30 Day Avg. Volume1,150,878
Financial Highlights & Ratios
PEG Ratio-0.55
Price to Book (P/B)0.54
Price to Sales (P/S)1.48
P/FCF Ratio2.82
Enterprise Value/Market Cap6.78
Enterprise Value/Revenue8.43
Enterprise Value/Gross Profit14.27
Enterprise Value/Ebitda20.35
Forecast
1Y Price Target
$13.00Price Target Upside21.16% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.17
Revenue Forecast (FY)$339.54M
Franklin BSP Realty Trust Business Overview & Revenue Model
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...
How the Company Makes Money
Franklin 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 in...
Franklin BSP Realty Trust Key Performance Indicators (KPIs)
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.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.
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.
Read all updates
Q4-2025 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
62
Positive
Balance Sheet
55
Neutral
Cash Flow
28
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 | 291.94M | 57.23M | 197.39M | 151.85M | 3.03B |
| Operating Cash Flow | 291.94M | 57.23M | 197.39M | 152.51M | 146.50M |
| Investing Cash Flow | 380.81M | -155.47M | 380.81M | 3.10B | 1.07B |
| Financing Cash Flow | -684.43M | -48.58M | -424.99M | -3.23B | -1.14B |
Franklin BSP Realty Trust Technical Analysis
Neutral
10.73
Price Trends
8.98
Negative
9.40
Negative
9.70
Negative
Market Momentum
-0.12
Negative
50.27
Neutral
86.29
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FBRT, the sentiment is Neutral. The current price of 10.73 is above the 20-day moving average (MA) of 8.54, above the 50-day MA of 8.98, and above the 200-day MA of 9.70, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 50.27 is Neutral, neither overbought nor oversold. The STOCH value of 86.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FBRT.
Franklin BSP Realty Trust Risk Analysis
Franklin BSP Realty Trust disclosed 59 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 | $1.02B | 5.46 | 9.66% | 14.90% | 5.52% | -47.72% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
55 Neutral | $1.03B | 8.54 | 6.79% | 12.69% | -15.48% | -36.45% | |
55 Neutral | $1.37B | 2.89 | 15.05% | 20.03% | 72.30% | -54.02% | |
54 Neutral | $701.97M | 9.99 | 5.60% | 13.31% | -0.93% | -1.92% | |
51 Neutral | $1.16B | 23.35 | -23.93% | 14.29% | 22.48% | 50.49% | |
48 Neutral | $741.19M | -8.93 | -5.86% | 13.13% | 34.68% | -251.91% |
* Real Estate Sector Average
FBRT
Franklin BSP Realty Trust
8.67
-1.05
-10.77%
MFA
MFA Financial
9.99
2.59
35.02%
TWO
Two Harbors
11.02
1.51
15.87%
RWT
Redwood
5.93
1.33
29.00%
PMT
PennyMac Mortgage
11.89
0.85
7.72%
ORC
Orchid Island Capital
7.20
2.04
39.59%
Franklin BSP Realty Trust Corporate Events
Business Operations and StrategyExecutive/Board Changes
Franklin BSP Realty Trust Announces CEO and Leadership Changes
Positive
Feb 10, 2026
On February 10, 2026, Franklin BSP Realty Trust announced a leadership transition in which President Michael Comparato was appointed Chief Executive Officer, succeeding Richard Byrne, who resigned as CEO but remains Chairman of the Board. The move...
Business Operations and StrategyRegulatory Filings and Compliance
Franklin BSP Realty Trust Extends Series H Conversion Timeline
Neutral
Jan 21, 2026
On January 20, 2026, Franklin BSP Realty Trust, Inc. filed an amendment to the terms governing its Series H Convertible Preferred Stock, after approval by its board of directors and the sole holder of the Series H shares. The amendment extends the...
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.