Franklin BSP Realty Trust (FBRT) AI Stock Analysis

• Market Cap: $720.59M
• Dividend Yield: 13.31%
• Average Volume (3M): 915.88K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.52
• Revenue Growth: -0.93%
• EPS Growth: -1.92%
• Country: US
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Mortgage
• EPS (TTM): 0.12
• Shares Outstanding: 81,606,606
• 10 Day Avg. Volume: 1,565,069
• 30 Day Avg. Volume: 915,883
• PEG Ratio: -0.55
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 1.48
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 6.65
• Enterprise Value/Revenue: 8.48
• Enterprise Value/Gross Profit: 14.36
• Enterprise Value/Ebitda: 20.48
• 1Y Price Target: $13.00
• Price Target Upside: 21.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 1.24
• Revenue Forecast (FY): $339.54M

• Rating: 54 Neutral
• Price Target: $9.00 ▼(-16.12% Downside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 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.

Expanded non-recourse financing (CLO) increases capacity

The $1.0B CLO broadens funding diversification and lowers funding costs, supporting higher origination capacity without proportionately raising recourse leverage. This structurally improves funding flexibility, allows selective origination scaling, and reduces immediate refinancing risk versus relying solely on recourse borrowings.

Management succession with experienced leadership

Promoting seasoned internal leaders preserves institutional knowledge and execution continuity for integration and portfolio repositioning. Leadership continuity from Benefit Street Partners executives supports disciplined origination, servicing integration and strategic shifts, reducing execution risk tied to major acquisitions and capital actions.

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.

Inconsistent cash generation

Volatile and recently absent operating/free cash flow undermines sustainable dividend coverage and capital deployment. Zero OCF in 2025 (and a -100% FCF change) means earnings are not reliably translating to cash, forcing dependence on financing or asset sales and raising execution risk for repurchases and reinvestment plans.

Dividend reset and book value pressure

Resetting the dividend signals prior distributions were unsustainable and weakens investor confidence in payout durability. The cut is necessary to protect book value, but it also reduces income appeal and makes future payout restoration contingent on execution—REO liquidations, NewPoint accretion and consistent distributable earnings.

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 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 Financial Statement Overview

Summary

Profitability remains positive with mid-teens net margins, but revenue has contracted in 2024–2025 and is historically volatile. Leverage is structurally high (debt-to-equity ~2.7–2.9), increasing sensitivity to funding and asset values. Cash-flow quality is the biggest drag, with highly inconsistent conversion and a reported zero operating/free cash flow year in 2025.

Income Statement

Revenue has been volatile: strong expansion in 2022–2023, followed by declines in 2024 (-3.6%) and 2025 (-8.5%). Profitability is positive with net margins in the mid-teens in 2024–2025, but well below the 2023 peak, suggesting a less favorable earnings environment. Margins and earnings are still holding up, yet the recent top-line contraction and year-to-year variability temper the outlook.

Balance Sheet

Leverage remains elevated, with debt-to-equity consistently around ~2.7–2.9 in recent years (and higher historically), which is typical for a mortgage REIT but increases sensitivity to funding costs and asset value moves. Equity is relatively stable while debt has modestly improved from the 2021 high, and returns on equity are positive but moderate (~4.6%–9.3% over 2023–2025). Overall, the balance sheet is workable, but leverage is the key constraint.

Cash Flow

Cash generation shows meaningful inconsistency. Operating and free cash flow were solid in 2022–2024, but both are reported at zero in 2025, alongside a -100% free cash flow change and a zero relationship between operating cash flow and net income. Even in 2024, operating cash flow covered only a small portion of earnings, highlighting weaker cash conversion. The volatility and latest-year drop materially weaken cash-flow quality.

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	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

• Technical Analysis Sentiment: Negative
• Last Price: 10.73
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 9.66, above the 50-day MA of 10.02, and above the 200-day MA of 10.39, indicating a bearish trend. The MACD of -0.36 indicates Positive momentum. The RSI at 38.54 is Neutral, neither overbought nor oversold. The STOCH value of 43.28 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MFA	67 Neutral	$1.01B	7.60	9.59%	14.90%	5.52%	-47.72%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ORC	57 Neutral	$1.45B	6.12	15.59%	20.03%	72.30%	-54.02%
PMT	55 Neutral	$1.06B	12.28	6.67%	12.69%	-15.48%	-36.45%
FBRT	54 Neutral	$720.59M	13.80	5.25%	13.31%	-0.93%	-1.92%
RWT	49 Neutral	$757.56M	-9.56	-6.84%	13.13%	34.68%	-251.91%
TWO	45 Neutral	$1.12B	-1.98	-23.25%	14.29%	22.48%	50.49%

Franklin BSP Realty Trust Corporate Events

Franklin BSP Realty Trust Announces CEO and Leadership Changes

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 elevates Comparato, a senior Benefit Street Partners real estate executive, to lead the NYSE-listed commercial real estate debt REIT.

Effective the same date, the board promoted Brian Buffone, formerly Head of Real Estate Operations at the company’s external manager, to President, filling Comparato’s prior role. The board and executives framed the changes as part of a planned management succession designed to preserve strategic continuity, strengthen execution of FBRT’s long-term strategy, and maintain stability for shareholders in a shifting real estate market.

The most recent analyst rating on (FBRT) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on Franklin BSP Realty Trust stock, see the FBRT Stock Forecast page.

Franklin BSP Realty Trust Extends Series H Conversion Timeline

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 mandatory conversion date for the Series H Preferred Stock from January 21, 2026 to January 21, 2028, with the possibility of additional one-year extensions by mutual agreement, and grants the holder the right to convert up to 4,487 shares once per calendar month before the new mandatory conversion date upon 10 business days’ notice. No other terms of the Series H Preferred Stock were changed, and the sole stockholder of the Series H shares had provided written consent to the amendment on January 14, 2026, underscoring the holder’s active role in reshaping the timing and flexibility of conversion, which affects the company’s future capital structure and the preferred stockholder’s conversion strategy.

The most recent analyst rating on (FBRT) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on Franklin BSP Realty Trust stock, see the FBRT Stock Forecast page.