Franklin BSP Realty Trust (FBRT) investor relations material

Executive summary

• GAAP net income for Q1 2026 was $12.3 million, with distributable earnings of $13.5 million ($0.09 per share) and distributable earnings before realized losses of $25.9 million ($0.22 per share).

• Origination activity exceeded repayments, driving portfolio growth, especially in multifamily lending, amid a competitive market.

• Book value per share increased to $14.18, supported by $39.8 million in share repurchases at an average price of $9.13, adding $0.24 accretion per share.

• The acquisition and integration of NewPoint expanded agency lending and servicing capabilities, with $646 million in new loan commitments and $5.6 million in distributable earnings.

• Progress was made on resolving legacy and REO assets, including the sale of the largest REO position post-quarter.

Financial highlights

• Book value per share rose to $14.18 (fully converted), with adjusted book value at $14.58; GAAP net income was $12.3 million ($0.07–$0.08 per share); distributable earnings after realized losses were $13.5 million ($0.09 per share), and before realized losses were $25.9 million ($0.22 per share).

• Declared a $0.20 per share dividend, annualized yield of 5.6% on book value.

• Total liquidity was $521 million, including $115.6 million in cash.

• Net leverage ended at 2.8x (recourse 1.16x); allowance for loan loss was $49.5 million, 1.1% of UPB.

• Net provision for credit losses was $11.4 million, mainly due to higher reserves for non-performing loans.

Outlook and guidance

• Management expects continued modest portfolio growth, increased equity allocation, and full earnings benefit from NewPoint integration in coming quarters.

• Positive earnings sensitivity to falling rates; annual EPS could increase by $0.17 if rates fall by 1%.

• Board reauthorized a $50 million share repurchase program through December 2026.

• Sufficient liquidity and access to capital expected for the next twelve months and beyond.