Franklin BSP Realty Trust Files Q3 2024 10-Q

TL;DR

BSP's Q3 10-Q is in. Check financials for common & Series E preferred stock.

AI Summary

Franklin BSP Realty Trust, Inc. filed its 10-Q for the period ending September 30, 2024. The company reported its financial performance and position, including details on its common stock and Series E preferred stock. The filing also references various financial instruments and real estate-related assets.

Why It Matters

This filing provides investors with an update on Franklin BSP Realty Trust's financial health and operational status, crucial for understanding its real estate investment strategy and performance.

Risk Assessment

Risk Level: medium — Real estate investment trusts are subject to market fluctuations and interest rate risks, which can impact their financial performance.

Key Numbers

• 2024-09-30 — Reporting Period End Date (Indicates the specific date for which financial data is reported.)
• 2024-11-04 — Filing Date (The date the 10-Q was officially submitted to the SEC.)
• 2023-12-31 — Previous Fiscal Year End (Provides a point of comparison for year-over-year performance.)

Key Players & Entities

• Franklin BSP Realty Trust, Inc. (company) — Filer of the 10-Q
• 2024-09-30 (date) — End of the reporting period
• 2024-11-04 (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-20240930.htm (10-Q) — 3172KB
• fbrt-exhibit311_q324.htm (EX-31.1) — 8KB
• fbrt-exhibit312_q324.htm (EX-31.2) — 9KB
• fbrt-exhibit32_q324.htm (EX-32) — 5KB
• bsprt-20240930_g1.jpg (GRAPHIC) — 49KB
• bsprt-20240930_g10.jpg (GRAPHIC) — 124KB
• bsprt-20240930_g11.jpg (GRAPHIC) — 123KB
• bsprt-20240930_g2.jpg (GRAPHIC) — 48KB
• bsprt-20240930_g3.jpg (GRAPHIC) — 63KB
• bsprt-20240930_g4.jpg (GRAPHIC) — 61KB
• bsprt-20240930_g5.jpg (GRAPHIC) — 491KB
• bsprt-20240930_g6.jpg (GRAPHIC) — 74KB
• bsprt-20240930_g7.jpg (GRAPHIC) — 72KB
• bsprt-20240930_g8.jpg (GRAPHIC) — 78KB
• bsprt-20240930_g9.jpg (GRAPHIC) — 78KB
• 0001562528-24-000034.txt ( ) — 17749KB
• bsprt-20240930.xsd (EX-101.SCH) — 78KB
• bsprt-20240930_cal.xml (EX-101.CAL) — 114KB
• bsprt-20240930_def.xml (EX-101.DEF) — 621KB
• bsprt-20240930_lab.xml (EX-101.LAB) — 927KB
• bsprt-20240930_pre.xml (EX-101.PRE) — 773KB
• bsprt-20240930_htm.xml (XML) — 2715KB

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 37

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 67

Controls and Procedures

Item 4. Controls and Procedures 68 PART II

Legal Proceedings

Item 1. Legal Proceedings 69

Risk Factors

Item 1A. Risk Factors 69

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 69

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) September 30, 2024 December 31, 2023 ASSETS Cash and cash equivalents $ 346,153 $ 337,595 Restricted cash 7,720 6,092 Commercial mortgage loans, held for investment, net of allowance for credit losses of $ 76,640 and $ 47,175 as of September 30, 2024 and December 31, 2023, respectively 5,077,476 4,989,767 Real estate securities, available for sale, measured at fair value, amortized cost of $ 210,256 and $ 243,272 as of September 30, 2024 and December 31, 2023, respectively (includes pledged assets of $ 210,656 and $ 167,948 as of September 30, 2024 and December 31, 2023, respectively) 210,656 242,569 Receivable for loan repayment (1) 196,314 55,174 Accrued interest receivable 37,517 42,490 Prepaid expenses and other assets 20,315 19,213 Intangible lease asset, net of amortization 40,554 42,793 Real estate owned, net of depreciation 113,848 115,830 Real estate owned, held for sale 284,423 103,657 Total assets $ 6,334,976 $ 5,955,180 LIABILITIES AND STOCKHOLDERS' EQUITY Collateralized loan obligations $ 4,097,668 $ 3,567,166 Repurchase agreements and revolving credit facilities - commercial mortgage loans 183,761 299,707 Repurchase agreements - real estate securities 241,266 174,055 Mortgage note payable 23,998 23,998 Other financings 12,865 36,534 Unsecured debt 81,370 81,295 Interest payable 12,378 15,383 Distributions payable 36,240 36,133 Accounts payable and accrued expenses 14,013 13,339 Due to affiliates 15,630 19,316 Intangible lease liability, held for sale 1,805 12,297 Total liabilities $ 4,720,994 $ 4,279,223 Commitments and Contingencies Redeemable convertible preferred stock: Redeemable convertible preferred stock Series H, $ 0.01 par value, 20,000 authorized and 17,950 issued and outstanding as of September 30, 2024 and Dece

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 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 b

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View this 10-Q filing on SEC EDGAR