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Franklin BSP Realty Trust (FBRT)
NYSE:FBRT
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Franklin BSP Realty Trust
(NYSE:FBRT)
56Neutral
Positive Factors
Business Expansion
Franklin BSP Realty Trust, Inc. is adding a new business line, positioning itself to be a leading multi-channel CMREIT.
Credit Quality
FBRT reduced its number of watchlist loans without any new downgrades during the quarter, showing improved credit quality.
Loan Portfolio
The loan portfolio is composed of 99% senior loans and 95% floating rate, suggesting a lower risk profile and adaptability to interest rate changes.
Negative Factors
Asset Management Challenges
The company saw several REO additions in 3Q, particularly in multifamily properties, which could signal ongoing challenges in asset management.
Dividend Coverage
FBRT reported a fourth-quarter GAAP EPS of $0.29 and distributable EPS of $0.30, which did not fully cover the $0.355 per share quarterly dividend.
Financial Stability
FBRT failed to cover its dividend for the second consecutive quarter, raising concerns about financial stability.
Franklin BSP Realty Trust (FBRT) vs. S&P 500 (SPY)
Market Cap
$973.54M
Dividend Yield12.25%
Average Volume (3M)566.64K
Price to Earnings (P/E)14.2
Beta (1Y)0.68
Revenue Growth-6.28%
EPS Growth-49.57%
CountryUS
EmployeesN/A
SectorReal Estate
Sector Strength83
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)0.81
Shares Outstanding83,637,436
10 Day Avg. Volume461,907
30 Day Avg. Volume566,640
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap5.30
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit24.50
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$15.10Price Target Upside32.69% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
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 MoneyFBRT generates revenue primarily through interest income from its portfolio of commercial real estate loans. The company lends capital to property owners and operators, securing these loans with the underlying real estate as collateral. In addition to interest income, FBRT may also earn fee income from loan origination and servicing. The trust may engage in strategic partnerships or collaborations with other financial institutions to expand its lending capabilities and investment opportunities. Key factors contributing to FBRT's earnings include the performance of the real estate market, interest rate fluctuations, and the company's ability to effectively manage its loan portfolio and mitigate credit risk.
Franklin BSP Realty Trust Financial Statement Overview
Summary
Franklin BSP Realty Trust shows operational efficiency improvements but struggles with revenue consistency. The balance sheet is strong with reduced leverage, yet asset management requires attention. Cash flow reflects volatility, highlighting the need for better cash generation. Overall, the company has strengths in operational efficiency but faces challenges in revenue stability and cash flow consistency.Income Statement
Franklin BSP Realty Trust has shown fluctuating revenue with a noticeable decline in the most recent year. The company experienced negative gross profit in 2023 and a significant drop in net income in 2024. However, EBIT and EBITDA margins have improved, indicating better operational efficiency. Overall, the income statement reflects instability in revenue but some operational improvements.53
Neutral
Balance Sheet
The balance sheet shows a strong equity base with no total debt reported in the latest year, suggesting reduced leverage risk. However, the equity ratio has been inconsistent, reflecting potential asset management issues. Overall, the balance sheet is stable, with a strong equity position and reduced leverage risk, but the fluctuations in equity ratio indicate areas for improvement.61
Positive
Cash Flow
The cash flow statement indicates volatility, with operating cash flow dropping to zero in the most recent year. Free cash flow also saw a decline, indicating cash management challenges. The company needs to focus on improving cash generation consistency to enhance financial stability.47
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 548.92M | 230.79M | 367.36M | 221.65M | 184.17M | Gross Profit |
| 210.45M | -108.63M | 201.65M | 160.81M | 113.96M | EBIT |
| 406.24M | 154.77M | 52.31M | 164.96M | 62.35M | EBITDA |
| 116.41M | 163.18M | 106.55M | 167.07M | 64.58M | Net Income Common Stockholders |
| 68.89M | 145.22M | 14.43M | 25.70M | 54.75M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 387.42M | 343.69M | 415.04M | 154.93M | 82.07M | Total Assets |
| 6.00B | 5.96B | 6.20B | 9.47B | 3.19B | Total Debt |
| 4.31B | 4.18B | 4.45B | 7.57B | 2.15B | Net Debt |
| 4.13B | 3.85B | 4.27B | 7.42B | 2.07B | Total Liabilities |
| 4.48B | 4.28B | 4.63B | 7.76B | 2.39B | Stockholders Equity |
| 1.51B | 1.65B | 1.56B | 1.71B | 798.44M |
| Cash Flow | Free Cash Flow | |||
| 57.23M | 197.39M | 151.85M | 3.03B | 115.33M | Operating Cash Flow |
| 57.23M | 197.39M | 152.51M | 146.50M | 115.33M | Investing Cash Flow |
| 222.84M | 380.81M | 3.10B | 1.07B | 240.69M | Financing Cash Flow |
| -48.58M | -424.99M | -3.23B | -1.14B | -373.00M |
Franklin BSP Realty Trust Technical Analysis
Negative
11.38
Price Trends
12.28
Negative
12.27
Negative
12.23
Negative
Market Momentum
-0.22
Negative
41.88
Neutral
68.08
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 11.38 is below the 20-day moving average (MA) of 11.46, below the 50-day MA of 12.28, and below the 200-day MA of 12.23, indicating a bearish trend. The MACD of -0.22 indicates Negative momentum. The RSI at 41.88 is Neutral, neither overbought nor oversold. The STOCH value of 68.08 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 56 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
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $1.24B | 9.76 | 9.45% | 11.79% | 11.91% | 52.26% | |
63 Neutral | $865.87M | 9.73 | 6.92% | 11.87% | 7.13% | 64.82% | |
62 Neutral | $997.79M | 11.89 | 6.35% | 14.23% | 26.34% | 79.07% | |
60 Neutral | $1.19B | 16.04 | 6.01% | 13.48% | 13.67% | -34.10% | |
60 Neutral | $2.73B | 11.44 | 0.07% | 8661.49% | 5.94% | -15.68% | |
56 Neutral | $973.54M | 14.20 | 5.07% | 12.25% | -6.28% | -49.57% | |
44 Neutral | $785.25M | ― | -19.41% | 20.74% | -24.40% | -210.65% |
* Real Estate Sector Average
Performance Comparison
FBRT
Franklin BSP Realty Trust
11.38
-0.19
-1.64%
CIM
Chimera Investment
12.34
0.87
7.59%
DX
Dynex Capital
12.33
1.98
19.13%
EFC
Ellington Financial
13.03
2.77
27.00%
MFA
MFA Financial
9.82
0.35
3.70%
RC
Ready Capital
4.45
-3.15
-41.45%
Franklin BSP Realty Trust Earnings Call Summary
Earnings Call Date:Apr 28, 2025
(Q1-2025)
| % Change Since: -2.23%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view of FBRT's performance. While there were strong highlights such as robust loan origination, strategic focus on multifamily, and the promising acquisition of NewPoint, there were significant lowlights including negative distributable earnings, challenges with REO and nonperforming loans, and concerns over dividend coverage. The sentiment reflects cautious optimism with acknowledgment of current challenges.Q1-2025 Updates
Positive Updates
Strong Loan Origination and Portfolio Management
FBRT originated $341 million in new loan commitments in Q1 2025, with new loans enhancing the portfolio due to high-quality properties and low loan-to-value ratios. This positions FBRT well in volatile markets.
Significant Loan Repayments
FBRT received $353 million in loan repayments, with 56% of the portfolio now originated post-interest rate hike, indicating a high-quality mortgage REIT portfolio.
Pending Acquisition of NewPoint
The acquisition of NewPoint, set to close early in Q3 2025, is expected to provide meaningful synergies and enhance FBRT's strategic focus on the multifamily sector.
Multifamily Sector Focus
Multifamily accounted for 79% of FBRT's total origination volume in Q1 2025, indicating a strategic focus on this sector.
Strong Liquidity Position
FBRT reported liquidity of $913 million at the end of Q1 2025, including $215 million in unrestricted cash, providing a strong base for future operations.
Negative Updates
Negative Distributable Earnings
FBRT reported negative distributable earnings of $6.2 million due to realized losses in the office asset REO portfolio.
Impact of REO and Nonperforming Loans
REO and nonperforming loans negatively impacted earnings, with plans to liquidate assets causing short-term drag on earnings.
Concerns Over Long-term Dividend Coverage
FBRT anticipates potential shortfalls in dividend coverage due to REO and nonperforming loan portfolios, suggesting a possible need to revisit dividend policy.
Increased Watch List and REO Portfolio
Four loans were added to the watch list in Q1 2025, and the foreclosure REO portfolio had 12 positions, indicating ongoing challenges in portfolio management.
Company Guidance
During the Franklin BSP Realty Trust First Quarter 2025 Earnings Conference Call, the company provided detailed guidance on several key metrics. They reported originating $341 million in new loan commitments, with multifamily loans accounting for 79% of the total. The company received $353 million in loan repayments, bringing the percentage of their portfolio originated post-interest rate hike to 56%. The REO portfolio accounted for a near-term drag on earnings, with $38.6 million in realized losses impacting distributable earnings, reported as negative $6.2 million or negative $0.12 per fully converted share. Liquidity stood at $913 million, including $215 million in unrestricted cash, and the average risk rating at quarter-end was 2.2. The company also highlighted the strategic acquisition of NewPoint, which is expected to close early in the third quarter, aiming to expand their market reach and enhance earnings quality.Franklin BSP Realty Trust Corporate Events
M&A TransactionsBusiness Operations and Strategy
Franklin BSP Realty Trust Expands with NewPoint Acquisition
Positive
Mar 10, 2025
On March 9, 2025, Franklin BSP Realty Trust, Inc. announced its acquisition of NewPoint Holdings JV LLC, a commercial real estate finance company. The transaction, expected to close in the third quarter of 2025, aims to expand FBRT’s multifamily lending offerings and increase its market reach. The acquisition is anticipated to enhance FBRT’s earnings power and diversify its business lines, including agency and mortgage servicing. This strategic move is expected to create a comprehensive one-stop client solution, enhance long-term stockholder value, and potentially allow FBRT to trade at a premium to book value.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.