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Franklin Bsp Realty Trust, Inc. (FBRT)
:FBRT
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Franklin BSP Realty Trust
(NYSE:FBRT)
Rating:68Neutral
Price Target:
$12.00
▲(10.91% Upside)
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 Performance
The loan portfolio is backed by 99% senior (first mortgage) loans and 93% of the portfolio is floating rate.
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.
Portfolio 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 (FBRT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$895.97M
Dividend Yield13.55%
Average Volume (3M)692.64K
Price to Earnings (P/E)11.1
Beta (1Y)0.60
Revenue Growth-3.60%
EPS Growth19.31%
CountryUS
EmployeesN/A
SectorReal Estate
Sector Strength53
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)0.27
Shares Outstanding82,274,850
10 Day Avg. Volume879,782
30 Day Avg. Volume692,642
Financial Highlights & Ratios
PEG Ratio-0.35
Price to Book (P/B)0.68
Price to Sales (P/S)1.87
P/FCF Ratio17.93
Enterprise Value/Market Cap5.33
Enterprise Value/Revenue8.56
Enterprise Value/Gross Profit49.68
Enterprise Value/Ebitda35.68
Forecast
1Y Price Target
$13.00Price Target Upside20.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Franklin BSP Realty Trust Business Overview & Revenue Model
Company DescriptionFranklin BSP Realty Trust (FBRT) is a real estate investment trust (REIT) that primarily focuses on originating, acquiring, and managing a diversified portfolio of commercial real estate debt investments. The company operates predominantly within the commercial real estate sector, providing capital solutions to property owners and investors across various property types, including office, multifamily, industrial, and retail.
How the Company Makes MoneyFranklin 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 Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: 7.34%|
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted the successful acquisition of NewPoint, strong loan repayments, and positive economic returns, indicating strategic positioning and resilience in the market. However, concerns over dividend coverage, tightening loan spreads, and increased watch list loans suggest challenges ahead. Although the highlights are significant, the lowlights present notable concerns, leading to a balanced overall sentiment.Q2-2025 Updates
Positive Updates
Successful NewPoint Acquisition
FBRT completed the acquisition of NewPoint on July 1, expanding its platform within multifamily lending. The acquisition is expected to bring significant synergies, including scaled origination and servicing capabilities, which will increase the addressable market and enhance income stability. The transaction is projected to be accretive to both GAAP and distributable earnings by 2026.
Strong Loan Repayments
FBRT received $317 million in loan repayments in the second quarter across four different property types, continuing an encouraging trend and positioning the company well for future opportunities.
High Proportion of Post-Rate Hike Loan Originations
56% of FBRT's portfolio at quarter-end consisted of post-interest rate hike loan originations, significantly ahead of peers, reflecting the company's active market participation.
Positive Economic Returns
FBRT delivered economic returns, defined as change in book value plus dividends paid, of 6.6% and 11.9% over the past 12 and 24 months, respectively, placing the company at the top of its peer group.
Reduced Office Exposure
FBRT's total office exposure is only $105 million, which is 2.2% of total assets, spread across four loans with low average loan sizes and two REO assets.
Negative Updates
Dividend Coverage Concerns
FBRT's stock is trading at a steep discount to book value, partly due to concerns over current dividend coverage. The company is focused on calling CLOs and reinvesting to generate liquidity and improve dividend coverage.
Tightening Loan Spreads
The market for multifamily loans has seen spreads tighten significantly, with current spreads 100 to 125 basis points tighter than a year ago and 25 to 50 basis points tighter than 60 to 90 days ago, indicating increased competition.
Increased Watch List Loans
FBRT's watch list includes eight positions, with some loans requiring active management and borrower engagement, indicating ongoing challenges in asset performance.
Company Guidance
During the Franklin BSP Realty Trust's second-quarter 2025 earnings call, key financial metrics and strategic updates were discussed. The company reported GAAP earnings of $24.4 million, or $0.21 per fully converted common share, and distributable earnings totaling $29 million, or $0.27 per share. Loan originations for the quarter were deliberately lower at $61 million, primarily in multifamily assets, while the company received $317 million in loan repayments. The average risk rating at quarter end was 2.3, with only 5% of the portfolio on the watch list. The successful closing of the NewPoint acquisition on July 1 was highlighted as a major milestone, enhancing FBRT's multifamily lending platform and expected to contribute an 8% return on equity (ROE) initially, with potential to reach low teens ROE over time. FBRT's liquidity, excluding NewPoint acquisition cash, stood at $501 million, with $77 million in unrestricted cash. The company plans to call several CLOs to optimize leverage, potentially generating $0.04 to $0.06 per share quarterly, and aims to reinvest proceeds from real estate owned (REO) sales, contributing an additional $0.08 to $0.12 per share per quarter. The strategic repositioning is anticipated to collectively add $0.16 to $0.26 per share each quarter in incremental distributable earnings. Despite trading at a discount to book value, the company remains optimistic about its undervalued stock and strong portfolio, emphasizing disciplined credit decisions and effective capital management.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.65
Positive
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.58
Neutral
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.72
Positive
| 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
Neutral
10.82
Price Trends
10.63
Positive
11.01
Negative
11.49
Negative
Market Momentum
-0.05
Negative
58.31
Neutral
90.12
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 10.82 is above the 20-day moving average (MA) of 10.61, above the 50-day MA of 10.63, and below the 200-day MA of 11.49, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 58.31 is Neutral, neither overbought nor oversold. The STOCH value of 90.12 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 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $895.97M | 11.14 | 6.74% | 13.55% | -3.60% | 19.31% | |
65 Neutral | $1.22B | 9.36 | 9.59% | 12.28% | 11.91% | 52.26% | |
64 Neutral | C$1.98B | 4.12 | -3.29% | 5.13% | 3.04% | -44.21% | |
63 Neutral | $1.10B | 9.09 | 7.32% | 11.01% | 7.13% | 64.82% | |
62 Neutral | $941.33M | 9.34 | 6.91% | 15.49% | 26.34% | 79.07% | |
60 Neutral | $1.63B | 16.05 | 4.93% | 14.68% | 73.74% | -34.10% | |
46 Neutral | $712.72M | ― | -12.42% | 17.94% | -31.47% | -204.79% |
* Real Estate Sector Average
Performance Comparison
FBRT
Franklin BSP Realty Trust
10.89
-0.24
-2.16%
CIM
Chimera Investment
13.57
0.42
3.19%
DX
Dynex Capital
12.53
1.92
18.10%
EFC
Ellington Financial
12.92
1.58
13.93%
MFA
MFA Financial
9.17
-0.85
-8.48%
RC
Ready Capital
4.18
-3.60
-46.27%
Franklin BSP Realty Trust Corporate Events
M&A TransactionsBusiness Operations and Strategy
Franklin BSP Realty Trust Completes Major Acquisition
Positive
Jul 1, 2025
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.
The most recent analyst rating on (FBRT) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Franklin BSP Realty Trust stock, see the FBRT Stock Forecast page.
Private Placements and Financing
Franklin BSP Realty Trust Issues $107M in Senior Notes
Neutral
Jun 20, 2025
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.
The most recent analyst rating on (FBRT) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Franklin BSP Realty Trust stock, see the FBRT Stock Forecast page.
Executive/Board ChangesShareholder Meetings
Franklin BSP Realty Trust Holds Annual Stockholder Meeting
Neutral
Jun 2, 2025
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.
The most recent analyst rating on (FBRT) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Franklin BSP Realty Trust stock, see the FBRT Stock Forecast page.
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.