Franklin BSP Realty Trust (FBRT) AI Stock Analysis

• Market Cap: $933.00M
• Dividend Yield: 12.51%
• Average Volume (3M): 600.04K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.59
• Revenue Growth: -3.60%
• EPS Growth: 19.31%
• Country: US
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 52
• Industry: REIT - Mortgage
• EPS (TTM): 0.27
• Shares Outstanding: 82,274,850
• 10 Day Avg. Volume: 401,323
• 30 Day Avg. Volume: 600,036
• PEG Ratio: -0.35
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 1.87
• P/FCF Ratio: 17.93
• Enterprise Value/Market Cap: 5.12
• Enterprise Value/Revenue: 8.56
• Enterprise Value/Gross Profit: 49.68
• Enterprise Value/Ebitda: 35.68
• 1Y Price Target: $12.75
• Price Target Upside: 12.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: $12.50 ▲(10.13% Upside)

FBRT's overall stock score reflects a balanced view of its strengths and challenges. The most significant factor is its attractive valuation, supported by a high dividend yield and reasonable P/E ratio. Technical analysis indicates positive momentum, although caution is advised due to potential overbought conditions. Financial performance is stable but shows areas for improvement, particularly in operational efficiency and leverage. The earnings call and recent corporate events highlight strategic growth initiatives, though concerns about dividend coverage and market conditions remain.

Positive Factors

Business Expansion

Franklin BSP Realty Trust, Inc. is adding a new business line that positions FBRT to be a leading multi-channel CMREIT.

Loan Origination

Originations accelerated 16.1% sequentially to $441M, which speaks to the strength of the company's underwriting capabilities and management's overall confidence in the outlook for its portfolio.

Portfolio Performance

Limited realized losses and relative CECL stability despite foreclosures, asset sales, and watchlist migrations highlight the principal protection provided by FBRT's multifamily focus.

Negative Factors

Dividend Coverage

FBRT reported 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.

Loan Downgrades

FBRT saw two loans downgraded to its watchlist, both of which were originated during the 'easy money era' of 2021/1H22.

Watchlist Stability

The company has yet to reach stability in either its watchlist or its REO portfolio, and the dividend remains uncovered for the third straight quarter.

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 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 Money

Franklin BSP Realty Trust generates revenue primarily through interest income from its portfolio of commercial real estate debt investments. These investments include first mortgage loans, subordinate loans, and other real estate-related securities. The company earns interest income by providing these loans and collecting interest payments over the life of the loan. Additionally, FBRT may also receive income from fees associated with loan origination and other services. The trust's earnings are largely influenced by the interest rate environment, the credit quality of its borrowers, and the overall performance of the commercial real estate market. Strategic partnerships with real estate professionals and financial institutions also play a role in sourcing and managing its investment opportunities.

Franklin BSP Realty Trust Financial Statement Overview

Summary

Franklin BSP Realty Trust shows moderate revenue and net income growth, but operational margins face pressure. The balance sheet reflects high leverage, posing potential risks if market conditions deteriorate. Cash flow generation remains strong, although recent declines in free cash flow growth warrant caution.

Income Statement

The income statement reveals a mixed financial health. The TTM Gross Profit Margin is approximately 30.08%, and the Net Profit Margin is about 9.97%, indicating moderate profitability. Revenue has grown by 4.16% from the previous year, showcasing steady growth. However, the EBIT and EBITDA Margins have seen some decline compared to previous periods, reflecting potential challenges in operational efficiency.

Balance Sheet

The balance sheet indicates a high leverage with a Debt-to-Equity Ratio of approximately 2.65, signaling significant debt reliance. The Return on Equity (ROE) is about 3.80%, which is relatively low, suggesting limited returns on equity investment. The Equity Ratio stands at 26.52%, indicating a reasonable proportion of equity financing but with high liabilities.

Cash Flow

The cash flow statement shows strong operational cash generation, with a significant increase in Operating Cash Flow in the TTM period. The Free Cash Flow to Net Income Ratio is 2.81, indicating robust cash flow relative to net earnings. However, the Free Cash Flow Growth Rate is negative compared to previous periods, highlighting potential cash flow sustainability issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	558.50M	548.92M	230.79M	367.36M	221.65M	184.17M
Gross Profit	96.18M	210.45M	-108.63M	201.65M	160.81M	113.96M
EBITDA	133.94M	116.41M	163.18M	106.55M	167.07M	64.58M
Net Income	82.85M	68.89M	145.22M	14.43M	25.70M	54.75M
Balance Sheet
Total Assets	5.63B	6.00B	5.96B	6.20B	9.47B	3.19B
Cash, Cash Equivalents and Short-Term Investments	422.78M	184.44M	343.69M	415.04M	154.93M	82.07M
Total Debt	3.97B	4.31B	4.18B	4.45B	7.57B	2.15B
Total Liabilities	4.04B	4.48B	4.28B	4.63B	7.76B	2.39B
Stockholders Equity	1.58B	1.51B	1.65B	1.56B	1.71B	798.44M
Cash Flow
Free Cash Flow	170.41M	57.23M	197.39M	151.85M	3.03B	115.33M
Operating Cash Flow	170.41M	57.23M	197.39M	152.51M	146.50M	115.33M
Investing Cash Flow	899.58M	-155.47M	380.81M	3.10B	1.07B	240.69M
Financing Cash Flow	-700.93M	-48.58M	-424.99M	-3.23B	-1.14B	-373.00M

Franklin BSP Realty Trust Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FBRT, the sentiment is Positive. The current price of 11.35 is above the 20-day moving average (MA) of 10.97, above the 50-day MA of 10.77, and below the 200-day MA of 11.42, indicating a neutral trend. The MACD of 0.17 indicates Negative momentum. The RSI at 63.57 is Neutral, neither overbought nor oversold. The STOCH value of 87.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FBRT.

Franklin BSP Realty Trust Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FBRT	74 Outperform	$933.00M	11.53	6.74%	12.51%	-3.60%	19.31%
EFC	69 Neutral	$1.39B	11.43	8.81%	11.31%	20.32%	1.58%
CIM	63 Neutral	$1.14B	11.17	7.32%	10.55%	4.83%	-25.07%
Sector *	63 Neutral	$7.00B	13.45	-0.52%	6.98%	3.61%	-22.78%
MFA	62 Neutral	$1.03B	11.52	6.90%	14.16%	-7.70%	40.36%
DX	60 Neutral	$1.63B	15.88	4.93%	15.05%	35.01%	1115.85%
RC	46 Neutral	$672.10M	―	-13.92%	17.77%	-34.48%	-373.29%

Franklin BSP Realty Trust Corporate Events

Franklin BSP Realty Trust Completes Major Acquisition

On July 1, 2025, Franklin BSP Realty Trust, Inc. completed the acquisition of NewPoint Holdings JV L.L.C. for $425 million, marking a significant strategic expansion in its multifamily lending capabilities. This acquisition is expected to enhance FBRT’s long-term stockholder value by integrating agency lending capabilities and creating a comprehensive lending solution, thereby positioning the company for future growth and opportunities in partnership with NewPoint.

Franklin BSP Realty Trust Issues $107M in Senior Notes

On June 20, 2025, Franklin BSP Realty Trust, Inc. announced the issuance of $107 million in unsecured senior notes through its operating partnership, FBRT OP LLC. The issuance includes $82 million of fixed-rate notes due in 2030 and $25 million of floating-rate notes due in 2028. The proceeds are expected to be used for general corporate purposes, potentially including the acquisition of NewPoint Holdings JV LLC. The notes were offered to qualified institutional buyers and accredited investors under specific regulatory exemptions, and they will not initially be registered under the Securities Act.

Franklin BSP Realty Trust Holds Annual Stockholder Meeting

On May 28, 2025, Franklin BSP Realty Trust, Inc. held its annual meeting of stockholders where several key decisions were made. The stockholders elected seven directors to the board for one-year terms and ratified the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025. However, a proposal to eliminate supermajority voting requirements was not approved, while the advisory vote on executive compensation was passed.