Franklin BSP Realty Trust Q2 2024 10-Q Filing

TL;DR

**BSP Realty Trust Q2 10-Q: Financials out, check asset performance & debt.**

AI Summary

Franklin BSP Realty Trust, Inc. filed its 10-Q for the period ending June 30, 2024. The company reported its financial performance and condition, including details on its real estate assets and financing. Key financial data and operational updates are provided for the second quarter of 2024.

Why It Matters

This filing provides investors with crucial financial details about Franklin BSP Realty Trust's performance and assets, impacting investment decisions.

Risk Assessment

Risk Level: medium — Real estate investment trusts are subject to market fluctuations, interest rate changes, and property-specific risks.

Key Numbers

• 2024-06-30 — Reporting Period End Date (Indicates the end of the financial period covered by the report.)
• 2024-07-31 — Filing Date (The date the report was officially submitted to the SEC.)
• 1231 — Fiscal Year End (Specifies the end of the company's fiscal year.)

Key Players & Entities

• Franklin BSP Realty Trust, Inc. (company) — Filer of the 10-Q
• 2024-06-30 (date) — End of the reporting period
• 2024-07-31 (date) — Filing date
• Benefit Street Partners Realty Trust, Inc. (company) — Former company name
• Realty Finance Trust, Inc. (company) — Former company name
• ARC Realty Finance Trust, Inc. (company) — Former company name

FAQ

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share FBRT New York Stock Exchange

Filing Documents

• bsprt-20240630.htm (10-Q) — 3104KB
• fbrt-exhibit311_q224.htm (EX-31.1) — 8KB
• fbrt-exhibit312_q224.htm (EX-31.2) — 9KB
• fbrt-exhibit32_q224.htm (EX-32) — 5KB
• bsprt-20240630_g1.jpg (GRAPHIC) — 47KB
• bsprt-20240630_g10.jpg (GRAPHIC) — 122KB
• bsprt-20240630_g11.jpg (GRAPHIC) — 123KB
• bsprt-20240630_g2.jpg (GRAPHIC) — 48KB
• bsprt-20240630_g3.jpg (GRAPHIC) — 60KB
• bsprt-20240630_g4.jpg (GRAPHIC) — 61KB
• bsprt-20240630_g5.jpg (GRAPHIC) — 491KB
• bsprt-20240630_g6.jpg (GRAPHIC) — 72KB
• bsprt-20240630_g7.jpg (GRAPHIC) — 72KB
• bsprt-20240630_g8.jpg (GRAPHIC) — 76KB
• bsprt-20240630_g9.jpg (GRAPHIC) — 78KB
• 0001562528-24-000025.txt ( ) — 17873KB
• bsprt-20240630.xsd (EX-101.SCH) — 79KB
• bsprt-20240630_cal.xml (EX-101.CAL) — 118KB
• bsprt-20240630_def.xml (EX-101.DEF) — 612KB
• bsprt-20240630_lab.xml (EX-101.LAB) — 933KB
• bsprt-20240630_pre.xml (EX-101.PRE) — 805KB
• bsprt-20240630_htm.xml (XML) — 2757KB

Consolidated Financial Statements and Notes (unaudited)

Item 1. Consolidated Financial Statements and Notes (unaudited) 1

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 36

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 66

Controls and Procedures

Item 4. Controls and Procedures 67 PART II

Legal Proceedings

Item 1. Legal Proceedings 68

Risk Factors

Item 1A. Risk Factors 68

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 68

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 69

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 69

Other Information

Item 5. Other Information 69

Exhibits

Item 6. Exhibits 70

Signatures

Signatures 71 i Table of Contents

Item 1. Consolidated Financial Statements and Notes (unaudited)

PART I. Item 1. Consolidated Financial Statements and Notes (unaudited) FRANKLIN BSP REALTY TRUST, INC. CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share data) (Unaudited) June 30, 2024 December 31, 2023 ASSETS Cash and cash equivalents $ 94,779 $ 337,595 Restricted cash 10,957 6,092 Commercial mortgage loans, held for investment, net of allowance for credit losses of $ 80,536 and $ 47,175 as of June 30, 2024 and December 31, 2023, respectively 5,347,395 4,989,767 Commercial mortgage loans, held for sale, measured at fair value 62,165 — Real estate securities, available for sale, measured at fair value, amortized cost of $ 214,752 and $ 243,272 as of June 30, 2024 and December 31, 2023, respectively (includes pledged assets of $ 215,327 and $ 167,948 as of June 30, 2024 and December 31, 2023, respectively) 215,327 242,569 Receivable for loan repayment (1) 54,483 55,174 Accrued interest receivable 39,819 42,490 Prepaid expenses and other assets 17,306 19,213 Intangible lease asset, net of amortization 41,280 42,793 Real estate owned, net of depreciation 114,509 115,830 Real estate owned, held for sale 271,316 103,657 Total assets $ 6,269,336 $ 5,955,180 LIABILITIES AND STOCKHOLDERS' EQUITY Collateralized loan obligations $ 3,420,137 $ 3,567,166 Repurchase agreements and revolving credit facilities - commercial mortgage loans 762,437 299,707 Repurchase agreements - real estate securities 243,646 174,055 Mortgage note payable 23,998 23,998 Other financings 12,865 36,534 Unsecured debt 81,345 81,295 Derivative instruments, measured at fair value 1,013 — Interest payable 13,531 15,383 Distributions payable 36,233 36,133 Accounts payable and accrued expenses 13,014 13,339 Due to affiliates 16,550 19,316 Intangible lease liability, held for sale 10,934 12,297 Total liabilities $ 4,635,703 $ 4,279,223 Commitments and Contingencies Redeemable convertible preferred stock: Redeemable convertible preferred stock Ser

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2024 (Unaudited) Note 1 - Organization and Business Operations Franklin BSP Realty Trust, Inc., (the "Company") is a real estate finance company that primarily originates, acquires and manages a diversified portfolio of commercial real estate debt investments secured by properties located within and outside the United States. The Company is a Maryland corporation and has made tax elections to be treated as a real estate investment trust (a "REIT") for U.S. federal income tax purposes since 2013. The Company believes that it has qualified as a REIT and intends to continue to meet the requirements for qualification and taxation as a REIT. Substantially all of the Company's business is conducted through Benefit Street Partners Realty Operating Partnership, L.P. (the "OP"), a Delaware limited partnership. The Company is the sole general partner and directly or indirectly holds all of the units of limited partner interests in the OP. In addition, the Company, through one or more subsidiaries which are treated as a taxable REIT subsidiary (a "TRS"), is indirectly subject to U.S. federal, state and local income taxes. The Company has no employees. Benefit Street Partners L.L.C. serves as the Company's advisor (the "Advisor") pursuant to an advisory agreement, as amended on August 18, 2021 (the "Advisory Agreement"). The Advisor, an investment adviser registered with the SEC, is a credit-focused alternative asset management firm. Established in 2008, the Advisor's credit platform manages funds for institutions and high-net-worth investors across various credit funds and complementary strategies including high yield, levered loans, private/opportunistic debt, liquid credit, structured credit and commercial real estate debt. These strategies complement each other as they all leverage the sourcing, analytical, compliance, and operational capabilities that encompass the platform. The Advisor manages the Company's affa

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2024 (Unaudited) Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company, the OP and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. In determining whether the Company has a controlling financial interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, authority to make decisions and contractual and substantive participating rights of the other partners or members, as well as whether the entity is a variable interest entity ("VIE") for which the Company is the primary beneficiary. The Company has determined the OP is a VIE of which the Company is the primary beneficiary. Substantially all of the Company's assets and liabilities are held by the OP. The Company consolidates all entities that it controls through either majority ownership or voting rights. In addition, the Company consolidates all VIEs of which the Company is considered the primary beneficiary. VIEs are entities in which equity investors (i) do not have the characteristics of a controlling financial interest and/or (ii) do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. The entity that consolidates a VIE is its primary beneficiary and is generally the entity with (i) the power to direct the activities that most significantly affect the VIE's economic performance and (ii) the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE. Non-controlling interest represents the equity of consolidated joint ventures that are not owned by the Company. The accompanying consolidated financial statements include the accounts of collateralized loan obligations ("CLOs") issued and securitized by who

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