Franklin Bsp Realty Trust Stock Earnings Reports

Franklin BSP Realty Trust (FBRT) reported a transitional Q3 driven by the July 1 acquisition of NewPoint, which produced a record quarter of agency originations ($2.2B) and contributed $9.3M to distributable earnings. Q3 distributable earnings were $26.7M, or $0.22 per fully converted share ($0.23 ex a $1.7M REO sale loss). Core whole-loan portfolio totaled $4.4B at quarter end (75% multifamily); management expects to return the core book to a target of at least $5B over the next few quarters. Post-quarter close FBRT issued a ~$1.1B CRE CLO (FL12) and financed ~$500M with a money center bank, freeing roughly $250M of cash by calling older CLOs and lowering financing costs (expected to add ~$0.05–$0.07 per share of quarterly earnings once deployed starting in early 2026). NewPoint’s MSR and servicing scale ($47.3B servicing portfolio; MSR value ~$221M) are expected to be accretive to GAAP and book value in H1 2026 and to distributable earnings in H2 2026. Management continues to reduce legacy watchlist and REO positions (REO down to 9 positions), sold two REO assets in Q3 with more closing in Q4, and expects additional redeployments to contribute roughly $0.08–$0.12 per share per quarter over time. Origination activity in Q3 included $304M of new commitments (funded $196M), with strong CMBS conduit performance and an encouraging Q4 pipeline. Management has resumed share repurchases (540k shares for ~$6M through Oct 24) and expanded buyback authorization into next year, seeing the stock as materially discounted. Overall, the company is focused on integrating NewPoint, redeploying liquidity into higher-yielding assets, lowering financing costs via new CLOs, and progressing toward dividend coverage.