Franklin BSP Realty Trust (FBRT) AI Stock Analysis

• Market Cap: $927.24M
• Dividend Yield: 12.54%
• Average Volume (3M): 417.89K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.56
• Revenue Growth: -3.60%
• EPS Growth: 19.31%
• Country: US
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Mortgage
• EPS (TTM): 0.27
• Shares Outstanding: 82,274,850
• 10 Day Avg. Volume: 395,359
• 30 Day Avg. Volume: 417,892
• 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: 5.15
• Enterprise Value/Revenue: 8.56
• Enterprise Value/Gross Profit: 49.68
• Enterprise Value/Ebitda: 35.68
• 1Y Price Target: $13.00
• Price Target Upside: 14.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: $12.50 ▲(10.42% Upside)

FBRT's overall stock score reflects a balanced view of its strengths and challenges. The earnings call highlighted significant achievements, such as the NewPoint acquisition and improved liquidity, which positively impact the score. The attractive valuation with a high dividend yield also supports the stock's appeal. However, financial performance is mixed, with high leverage and pressure on operational margins, which slightly temper the overall score.

Positive Factors

NewPoint Acquisition

The acquisition enhances FBRT's market position and income stability by expanding its lending capabilities and increasing its addressable market.

Improved Liquidity

Improved liquidity provides FBRT with greater financial flexibility to capitalize on investment opportunities and manage debt obligations effectively.

Strong Economic Returns

Consistent economic returns demonstrate FBRT's ability to generate value for shareholders, indicating effective management and strategic execution.

Negative Factors

High Leverage

High leverage can increase financial risk, particularly if market conditions worsen, potentially impacting FBRT's long-term financial stability.

Dividend Coverage Concerns

Uncertainty around dividend coverage can affect investor confidence and the company's ability to maintain its dividend yield, impacting its attractiveness.

Tighter Loan Origination Spreads

Tighter spreads can reduce profitability on new loans, impacting FBRT's revenue generation and margin sustainability in the long term.

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 presents a mixed financial outlook. The company shows moderate revenue and net income growth, but operational margins have faced pressure. The balance sheet reflects high leverage, which could pose risks if market conditions deteriorate. Cash flow generation remains strong, though recent declines in free cash flow growth warrant caution. Overall, the financial health is stable, but there are areas for potential improvement.

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: Neutral
• Last Price: 11.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 11.32 is below the 20-day moving average (MA) of 11.43, above the 50-day MA of 11.01, and below the 200-day MA of 11.39, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 51.00 is Neutral, neither overbought nor oversold. The STOCH value of 10.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	73 Outperform	$927.24M	11.53	6.74%	12.54%	-3.60%	19.31%
EFC	69 Neutral	1.32B	10.91	9.29%	11.79%	20.32%	1.58%
CIM	63 Neutral	1.13B	11.19	0.00%	10.54%	4.83%	-25.07%
MFA	62 Neutral	1.01B	11.27	0.00%	14.59%	-7.70%	40.36%
DX	60 Neutral	1.62B	15.92	0.00%	15.20%	35.01%	1115.85%
RC	50 Neutral	698.39M	-2.27	-23.71%	17.36%	-34.48%	-373.29%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

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.

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.

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.

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.