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Franklin BSP Realty Trust
(NYSE:FBRT)
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Rating:59Neutral
Price Target:
$9.00
â–¼(-1.42% Downside)
Action:Reiterated
Date:06/10/26
FBRT scores as a mid-range setup: financial performance is acceptable but pressured by declining TTM revenue, cash-flow volatility, and leverage/credit sensitivity. The earnings call adds support via guidance for improvement, buybacks, and funding/liquidity actions, while credit charges and watch-list/legacy asset work remain key constraints. Valuation is supportive (low P/E and high yield), but technicals are notably weak with the stock trading below all major moving averages and negative MACD.
Positive Factors
Margin Strength and Cash Generation
FBRT’s recent margins (net ~17%, EBITDA ~53%) and positive operating cash flow reflect a high-margin, interest-income driven model. Durable margin levels and recurring net interest spread provide a structural cushion to absorb credit losses and support distributable cash over the medium term.
Negative Factors
Top-line Decline and Cash-Flow Volatility
A ~27% TTM revenue decline and ~58% fall in free cash flow indicate volatile origination and prepayment dynamics. Persistent top-line weakness and uneven cash generation reduce predictability of distributable earnings and constrain confident, sustained dividend restoration or portfolio growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Strength and Cash Generation
FBRT’s recent margins (net ~17%, EBITDA ~53%) and positive operating cash flow reflect a high-margin, interest-income driven model. Durable margin levels and recurring net interest spread provide a structural cushion to absorb credit losses and support distributable cash over the medium term.
Read all positive factors
Franklin BSP Realty Trust Key Performance Indicators (KPIs)
Any
Net Income by Segment
Shows profit contribution from each business line or property type, highlighting which segments are the primary earnings drivers and which are lagging. Investors can use it to spot recurring versus one‑off profits, assess operational efficiency by segment, and judge how shifts in portfolio mix could affect future payouts.
Shows profit contribution from each business line or property type, highlighting which segments are the primary earnings drivers and which are lagging. Investors can use it to spot recurring versus one‑off profits, assess operational efficiency by segment, and judge how shifts in portfolio mix could affect future payouts.
Data provided by:
The Fly
The FlyFranklin BSP Realty Trust (FBRT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$621.09M
Dividend Yield13.31%
Average Volume (3M)1.08M
Price to Earnings (P/E)15.5
Beta (1Y)0.55
Revenue Growth5.47%
EPS Growth-22.89%
CountryUS
Employees223
SectorReal Estate
Sector Strength53
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)0.52
Shares Outstanding76,963,010
10 Day Avg. Volume1,400,131
30 Day Avg. Volume1,077,023
Financial Highlights & Ratios
PEG Ratio-0.82
Price to Book (P/B)0.57
Price to Sales (P/S)1.48
P/FCF Ratio2.82
Enterprise Value/Market Cap8.20
Enterprise Value/Revenue9.53
Enterprise Value/Gross Profit14.11
Enterprise Value/Ebitda23.12
Forecast
1Y Price Target
$11.00Price Target Upside20.48% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.99
Revenue Forecast (FY)$316.08M
Franklin BSP Realty Trust Business Overview & Revenue Model
Company Description
Franklin BSP Realty Trust, Inc. functions as a real estate finance firm, primarily engaged in the creation, acquisition, and management of a varied portfolio of commercial real estate debt, secured by properties located across the United States. I...
How the Company Makes Money
FBRT primarily makes money through net interest income generated from its real estate debt investment portfolio. The core revenue stream is interest earned on loans it originates or acquires (typically senior secured commercial real estate loans),...
Franklin BSP Realty Trust Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The quarter demonstrated clear operational progress: portfolio growth, successful integration of the BSP servicing book into NewPoint, issuance of an $880.4 million CRE CLO, meaningful share buybacks and book value appreciation, and reductions in REO. However, the quarter also included notable credit-related charges — $12.3 million of realized REO losses and a $13.5 million CECL provision driven by a single watch-list loan — along with seasonally weak agency originations (down ~41% q/q) and ongoing legacy asset work. On balance, the company showed momentum in redeploying capital, strengthening liquidity, and integrating businesses, while actively addressing remaining legacy credit issues.Positive Updates
Portfolio Growth and Originations
Core portfolio grew by $173 million during Q1 to ~$4.6 billion (net growth ≈ 3.8% q/q). New loan commitments totaled $468 million versus $323 million of repayments. The quarter produced 26 originations at a weighted average spread of 278 bps, with multifamily representing 92% of production.
Negative Updates
Realized Losses and CECL Reserve Build
Realized losses tied to foreclosure real estate totaled $12.3 million and were included in distributable earnings. The company recorded a CECL provision of $13.5 million in Q1, which included a $14.8 million specific reserve primarily tied to a single watch-list loan (netting a $1.3 million general reserve benefit).
Read all updates
Q1-2026 Updates
Positive
Negative
Portfolio Growth and Originations
Core portfolio grew by $173 million during Q1 to ~$4.6 billion (net growth ≈ 3.8% q/q). New loan commitments totaled $468 million versus $323 million of repayments. The quarter produced 26 originations at a weighted average spread of 278 bps, with multifamily representing 92% of production.
Read all positive updates
Company Guidance
Management guided that earnings should improve through 2026 as the larger core portfolio and a more stable NewPoint contribution drive results, pointing to Q1 core portfolio of ~$4.6B with net growth of $173M (from $468M of new commitments less $323M of repayments), 26 loans originated at a 278 bp weighted-average spread (92% multifamily), NewPoint distributable earnings of $5.6M on $646M of agency originations, a $58.1B servicing book and a ~$217M MSR portfolio that generated $6.7M (~100 bps); they expect continued modest portfolio growth, increased equity allocation through 2026 (with opportunistic exits), and higher origination volumes if rates stabilize. Capital and balance-sheet priorities include continued share buybacks (nearly $40M repurchased in Q1 and a $50M reauthorization through 12/31/2026), a target net leverage (ex-NewPoint) of 2.75–3.0x (Q1 net/recourse 2.84x/1.16x; ex-NewPoint 2.62x), an $880.4M CRE CLO issued post-quarter, CECL provision of $13.5M, book value per share of $14.18, and ongoing resolution of legacy REO (REO count reduced to 6 with largest REO sold early in Q2).Franklin BSP Realty Trust Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
62
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 534.94M | 555.97M | 548.92M | 569.53M | 367.36M | 221.65M |
| Gross Profit | 361.26M | 512.28M | 210.45M | 263.95M | 201.65M | 160.81M |
| EBITDA | 220.45M | 385.89M | 437.62M | 163.18M | 106.55M | 167.07M |
| Net Income | 71.75M | 82.27M | 68.89M | 145.22M | 14.43M | 25.70M |
Balance Sheet | ||||||
| Total Assets | 6.30B | 6.06B | 6.00B | 5.96B | 6.20B | 9.47B |
| Cash, Cash Equivalents and Short-Term Investments | 115.60M | 167.29M | 184.44M | 337.60M | 415.04M | 4.72B |
| Total Debt | 4.58B | 4.25B | 4.31B | 4.18B | 4.45B | 7.57B |
| Total Liabilities | 4.82B | 4.53B | 4.48B | 4.37B | 4.63B | 7.76B |
| Stockholders Equity | 1.39B | 1.44B | 1.51B | 1.56B | 1.56B | 1.71B |
Cash Flow | ||||||
| Free Cash Flow | 121.33M | 291.94M | 57.23M | 197.39M | 151.85M | 3.03B |
| Operating Cash Flow | 121.69M | 291.94M | 57.23M | 197.39M | 152.51M | 146.50M |
| Investing Cash Flow | -152.25M | 380.81M | -155.47M | 380.81M | 3.10B | 1.07B |
| Financing Cash Flow | -57.10M | -684.43M | -48.58M | -424.99M | -3.23B | -1.14B |
Franklin BSP Realty Trust Technical Analysis
Negative
9.13
Price Trends
8.45
Negative
8.53
Negative
9.10
Negative
Market Momentum
-0.10
Negative
45.42
Neutral
31.20
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 9.13 is above the 20-day moving average (MA) of 8.12, above the 50-day MA of 8.45, and above the 200-day MA of 9.10, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 45.42 is Neutral, neither overbought nor oversold. The STOCH value of 31.20 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 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
59 Neutral | $621.09M | 15.47 | 4.95% | 13.31% | 5.47% | -22.89% | |
57 Neutral | $1.34B | 10.40 | 10.24% | 20.03% | 81.33% | 86.84% | |
56 Neutral | $963.13M | 8.69 | 7.43% | 14.90% | 2.05% | -11.87% | |
54 Neutral | $942.66M | 9.28 | 7.62% | 12.69% | 23.64% | 24.40% | |
52 Neutral | $1.27B | -3.16 | -19.11% | 14.29% | -6.44% | -1044.78% | |
49 Neutral | $560.97M | -5.76 | -9.19% | 13.13% | 16.94% | -469.13% |
* Real Estate Sector Average
FBRT
Franklin BSP Realty Trust
8.07
-1.67
-17.14%
MFA
MFA Financial
9.48
1.11
13.29%
TWO
Two Harbors
12.07
2.76
29.58%
RWT
Redwood
4.48
-0.88
-16.36%
PMT
PennyMac Mortgage
10.81
-0.82
-7.02%
ORC
Orchid Island Capital
6.92
1.01
16.99%
Franklin BSP Realty Trust Corporate Events
Executive/Board ChangesShareholder Meetings
Franklin BSP Realty Shareholders Approve Directors and Auditor
Positive
Jun 9, 2026
Franklin BSP Realty Trust, Inc. held its 2026 annual meeting of stockholders on June 8, 2026, where investors elected six directors, including Pat Augustine and Richard J. Byrne, to one-year terms ending at the 2027 annual meeting. The slate of no...
Business Operations and StrategyPrivate Placements and Financing
Franklin BSP Realty Trust Completes Major Mortgage Securitization
Positive
Apr 20, 2026
On April 15, 2026, a consolidated subsidiary of Franklin BSP Realty Trust closed an approximately $880.4 million commercial real estate mortgage securitization and privately placed about $778.1 million of notes across nine tranches backed by a por...
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.