Franklin BSP Realty Trust (FBRT) AI Stock Analysis

• Market Cap: $873.19M
• Dividend Yield: 13.27%
• Average Volume (3M): 724.51K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.47
• Revenue Growth: -0.93%
• EPS Growth: -1.92%
• Country: US
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Mortgage
• EPS (TTM): 0.22
• Shares Outstanding: 81,606,606
• 10 Day Avg. Volume: 597,992
• 30 Day Avg. Volume: 724,511
• 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: 6.44
• Enterprise Value/Revenue: 10.13
• Enterprise Value/Gross Profit: 50.45
• Enterprise Value/Ebitda: 54.32
• 1Y Price Target: $13.50
• Price Target Upside: 25.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.84
• Revenue Forecast (FY): $287.90M

• Rating: 61 Neutral
• Price Target: $11.00 ▲(2.52% Upside)

The overall stock score reflects a mixed outlook for Franklin BSP Realty Trust. The most significant factor is the financial performance, which is challenged by declining revenues and high leverage. Technical analysis shows a neutral trend with mild bullish momentum. Valuation is reasonable, supported by a high dividend yield, but sustainability is a concern. The earnings call provided a positive outlook with strategic achievements, and the recent securitization deal enhances financial flexibility.

Positive Factors

Successful Acquisition and Integration

The acquisition of NewPoint enhances FBRT's capabilities, contributing significantly to earnings and expanding its servicing portfolio, which supports long-term growth.

Strong Liquidity Position

A strong liquidity position and expanded origination capacity through the CRE CLO enhance FBRT's ability to invest in growth opportunities and manage debt.

Major Securitization Deal

The securitization deal improves financial flexibility, allowing FBRT to repay debt and fund future loans, strengthening its market position and potential returns.

Negative Factors

Declining Revenue Trend

A significant decline in revenue impacts FBRT's profitability and growth prospects, necessitating strategic adjustments to stabilize and grow its income streams.

High Leverage

High leverage poses risks, especially in a rising interest rate environment, potentially straining cash flow and limiting financial flexibility.

Dividend Undercovverage

Dividend undercoverage indicates potential sustainability issues, affecting investor confidence and possibly requiring adjustments to dividend policy.

Franklin BSP Realty Trust Business Overview & Revenue Model

Company Description

Franklin BSP Realty Trust (FBRT) is a diversified real estate investment trust (REIT) focused on investing in and managing a portfolio of commercial real estate assets and real estate-related debt. The company primarily operates in the sectors of commercial real estate, with a strategic emphasis on multifamily, industrial, and office properties. FBRT aims to provide attractive risk-adjusted returns to its investors through prudent investment strategies and efficient asset management.

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

Franklin BSP Realty Trust demonstrates a mixed financial performance. The income statement shows improved profitability but declining revenue growth. The balance sheet highlights high leverage, posing financial risk. The cash flow statement indicates stable cash management but raises concerns about operational cash generation. Overall, the company needs to focus on enhancing revenue growth and managing leverage to improve its financial health.

Income Statement

The income statement shows mixed results. The company has experienced a decline in revenue growth recently, with a negative growth rate in the TTM period. However, the net profit margin has improved over time, indicating better profitability management. The gross profit margin has fluctuated significantly, suggesting potential volatility in cost management. Overall, the income statement reflects moderate performance with room for improvement in revenue growth.

Balance Sheet

The balance sheet indicates a high level of leverage, with a debt-to-equity ratio that has been consistently high, although it has decreased slightly in the TTM period. The return on equity is relatively low, suggesting limited efficiency in generating returns from equity. The equity ratio is not explicitly calculated, but the high debt levels imply a lower proportion of equity in the capital structure. Overall, the balance sheet reflects financial risk due to high leverage.

Cash Flow

The cash flow statement shows positive trends in free cash flow growth, particularly in the TTM period. The operating cash flow to net income ratio is low, indicating that cash generation from operations is not fully aligned with reported net income. However, the free cash flow to net income ratio is strong, suggesting effective cash management. Overall, the cash flow statement reflects a stable cash position with some concerns about operational cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	555.57M	548.92M	569.53M	367.36M	221.65M	184.17M
Gross Profit	111.54M	210.45M	263.95M	201.65M	160.81M	113.96M
EBITDA	103.58M	437.62M	163.18M	106.55M	167.07M	61.40M
Net Income	68.55M	68.89M	145.22M	14.43M	25.70M	54.75M
Balance Sheet
Total Assets	6.22B	6.00B	5.96B	6.20B	9.47B	3.19B
Cash, Cash Equivalents and Short-Term Investments	116.65M	184.44M	337.60M	415.04M	4.72B	82.07M
Total Debt	4.36B	4.31B	4.18B	4.45B	7.57B	2.15B
Total Liabilities	4.65B	4.48B	4.37B	4.63B	7.76B	2.39B
Stockholders Equity	1.47B	1.51B	1.56B	1.56B	1.71B	798.44M
Cash Flow
Free Cash Flow	-75.34M	57.23M	197.39M	151.85M	3.03B	115.33M
Operating Cash Flow	-75.16M	57.23M	197.39M	152.51M	146.50M	115.33M
Investing Cash Flow	738.67M	-155.47M	380.81M	3.10B	1.07B	240.69M
Financing Cash Flow	-873.52M	-48.58M	-424.99M	-3.23B	-1.14B	-373.00M

Franklin BSP Realty Trust Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.73
• 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 10.73 is above the 20-day moving average (MA) of 10.30, above the 50-day MA of 10.41, and above the 200-day MA of 10.71, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 62.36 is Neutral, neither overbought nor oversold. The STOCH value of 80.90 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
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ORC	65 Neutral	$1.08B	14.71	7.02%	20.03%	72.30%	-54.02%
MFA	62 Neutral	$981.08M	11.28	6.90%	14.90%	5.52%	-47.72%
FBRT	61 Neutral	$873.19M	13.40	5.88%	13.27%	-0.93%	-1.92%
PMT	58 Neutral	$1.08B	13.60	6.37%	12.69%	-15.48%	-36.45%
TWO	53 Neutral	$1.03B	-3.99	-9.69%	16.41%	22.48%	50.49%
RWT	45 Neutral	$709.42M	-6.80	-9.19%	13.09%	34.68%	-251.91%

Franklin BSP Realty Trust Corporate Events

Franklin BSP Realty Trust Completes Major Securitization Deal

On October 15, 2025, Franklin BSP Realty Trust, Inc. completed a $1.076 billion commercial real estate mortgage securitization transaction through its subsidiary, BSPRT 2025-FL12 Issuer, LLC. The company sold approximately $947 million of the securitization’s notes in a private placement, which are secured by a portfolio of commercial and multifamily real estate mortgage loans. The proceeds will be used to repay existing credit facilities, fund future loans, and for general corporate purposes. This transaction is expected to enhance the company’s financial flexibility and strengthen its market position by allowing it to manage its portfolio effectively and potentially improve returns for stakeholders.