Company Announcements

Franklin BSP Realty Trust, Inc. Announces Second Quarter 2022 Results

NEW YORK--(BUSINESS WIRE)--Jul. 29, 2022-- Franklin BSP Realty Trust, Inc. (NYSE: FBRT) (“FBRT” or the “Company”) today announced financial results for the quarter ended June 30, 2022.

Reported GAAP net income (loss) of $(25.7) million or $(0.43) per diluted sharefor the three months ended June 30, 2022 compared to $(22.5) million or $(0.99) per diluted share for the three months ended March 31, 2022. Fully converted(1) GAAP net income (loss) of $(25.7) million or $(0.34) per diluted share for the three months ended June 30, 2022 compared to $(22.5) million or $(0.30) per diluted share for the three months ended March 31, 2022.

Reported Distributable Earnings (a non-GAAP financial measure) of $30.7 million or $0.29 per fully converted share(1) for the three months ended June 30, 2022 compared to $12.1 million or $0.08 per fully converted share(1) for the three months ended March 31, 2022.

Reported Distributable Earnings before trading and derivative gain/loss on residential adjustable-rate mortgage securities (“Run-Rate Distributable Earnings”) (a non-GAAP financial measure) of $24.8 million or $0.22 per fully converted share(1) for the three months ended June 30, 2022 compared to $40.1 million or $0.39 per fully converted share(1) for the three months ended March 31, 2022.

Second Quarter 2022 Summary

  • Produced a second quarter GAAP ROE of (8.3)% and a Distributable Earnings ROE of 7.0%
  • Book value of $15.81 per fully converted share(1)
  • Declared second quarter common stock cash dividend of $0.355 representing an 9.0% yield on book value
  • Core portfolio ended the quarter at $5.3 billion of principal balance
  • Closed an $803 million managed Commercial Real Estate Collateralized Loan Obligation (“FL9 CRE CLO”) with a two-year re-investment period, initial advance rate of 83.5% and a weighted average interest rate of SOFR+2.80% before accounting for discount and transaction costs
  • Fair market value of the residential adjustable-rate mortgage (“ARM”) portfolio was $270.4 million compared to $1.9 billion at March 31, 2022
  • Recognized provision for credit losses of $32.5 million, inclusive of a credit loss provision of $28.4 million specific to one loan

Richard Byrne, Chairman and Chief Executive Officer of FBRT, said, “The second quarter was a transitional quarter for FBRT, which was consistent with our expectations. Our performance was also negatively affected by certain one-time events. Now that we have nearly completed the divestiture of our residential ARM securities, our complete focus is on our core commercial real estate strategy. In the quarter, we produced a distributable earnings ROE of 7.0% despite continued challenging market conditions and are moving into the third quarter with a strong balance sheet and ample liquidity. We expect to have a fully-optimized portfolio in the fourth quarter. Looking forward, we expect our returns to be more in-line with our historical performance.”

Further commenting on our results, Michael Comparato, Head of Commercial Real Estate of BSP, added, “We grew our commercial real estate portfolio to approximately $5.3 billion this quarter, bringing FBRT closer to our target stabilized core portfolio of $6.2 billion. The second quarter saw a decline in transactional volume across the commercial lending market and we continue to witness the repricing of assets, most notably in multifamily and industrial sectors. We issued our 9th CLO this quarter, and while the economics were not as accretive as our last several CLO's, it was a proactive step toward strengthening our balance sheet and clearing our warehouse facilities giving us additional flexibility to originate attractive investments going into the third quarter.”

Portfolio and Investment Activity

Core portfolio: For the quarter ended June 30, 2022, we closed $1.0 billion of loan commitments, funded $907 million of principal balance on new and existing loans and received loan repayments of $217 million. This activity resulted in net core portfolio growth of $690 million. Our core portfolio at the end of the quarter had 174 loans with an aggregate principal balance of approximately $5.3 billion. The average loan size was $30 million. Over 99% of our aggregate principal balance is in senior mortgage loans with approximately 98% in floating rate loans. When looking at the sector composition of our portfolio, approximately 75% is collateralized by multifamily properties. As of June 30, 2022, we had two non-performing loans.

Residential ARM portfolio: As of June 30, 2022, the value of the Company’s residential ARM Agency Securities portfolio was $270.4 million. The reduction in the value of this portfolio in the second quarter is due in part to (i) $115 million of principal paydowns and (ii) $1.6 billion of sales. During that period, the Company experienced trading losses net of derivatives of $15.5 million related to these assets.

Conduit: For the quarter ended June 30, 2022, the Company closed $186 million of fixed rate loans that we sold or plan to sell through our conduit program. For the same period, we sold $162 million of conduit loans for a gain of $2.5 million net of realized derivatives.

Asset CECL Provision: As of June 30, 2022, the Company had two loans with a total amortized cost basis of $167.7 million designated as non-performing. For one of these loans, the Company recognized a credit loss provision of $28.4 million during the quarter ended June 30, 2022. The Company provided details regarding this loan in its Form 8-K filed with the SEC today in connection with this earnings press release.

Financing: On June 29, 2022, the Company closed an $803 million managed CRE CLO. The FL9 CRE CLO featured a two-year reinvestment period with an initial advance rate of 83.5% and a weighted average interest rate of SOFR+2.80% before accounting for discount and transaction costs.

Book Value

As of June 30, 2022, book value was $15.81 per fully convertedcommon share(1).

1 Fully converted per share information in this press release assumes applicable conversion of our series of outstanding convertible preferred stock into common stock and the vesting of our outstanding equity compensation awards.

Advisor Purchase Program

During the quarter, Benefit Street Partners L.L.C. (the “Advisor”), the Company’s external manager, purchased 1,794,505 shares of the Company’s common stock for an aggregate of $24.9 million at an average gross price of $13.89 per share, inclusive of any broker’s fees or commissions, under the $35 million open market share purchase program that the Advisor agreed to implement in connection with the Company’s acquisition of Capstead Mortgage Corporation ("Capstead"). Subsequent to quarter end, from July 1, 2022 through July 8, 2022, the Advisor purchased an aggregate of 190,199 additional shares of the Company’s common stock for an aggregate of $2.5 million at an average price of $13.33 per share, inclusive of any broker’s fees or commissions, leaving no remaining balance under the Advisor’s program.

Company Repurchase Program

The Company’s board of directors has authorized a $65 million share repurchase program that became operative following the conclusion of the Advisor’s program. No shares were repurchased under this program during the quarter or subsequent to quarter-end.

Distributable Earnings and Run-Rate Distributable Earnings

Distributable Earnings is a non-GAAP measure, which we define as GAAP net income (loss), adjusted for (i) non-cash CLO amortization acceleration and amortization over our expected useful life of our CLOs, (ii) unrealized gains and losses on loans, derivatives and ARMS, including CECL reserves and impairments, (iii) non-cash equity compensation expense, (iv) depreciation and amortization, (v) non-cash incentive fees, (vi) certain other non-cash items, (vii) loan workout expenses the Company deems likely to recover and non-recurring in nature, and (viii) impairments of non-financial assets related to the Capstead merger. Run-Rate Distributable Earnings, a non-GAAP measure, presents Distributable Earnings before trading gain/loss and derivative gain/loss on residential adjustable-rate mortgage securities.

We believe that Distributable Earnings and Run-Rate Distributable Earnings provide meaningful information to consider in addition to our GAAP results. We believe Distributable Earnings is a useful financial metric for existing and potential future holders of our common stock as historically, overtime, Distributable Earnings has been an indicator of our dividends per share. As a REIT, we generally must distribute annually at least 90% of our net taxable income, subject to certain adjustments, and therefore we believe our dividends are one of the principal reasons stockholders may invest in our common stock. Further, Distributable Earnings helps us to evaluate our performance excluding the effects of certain transactions and GAAP adjustments that we believe are not necessarily indicative of our current loan portfolio and operations and is one of the performance metrics we consider when declaring our dividends. We believe Run-Rate Distributable Earnings is a useful financial metric because it presents the Distributable Earnings of our core businesses, net of the impacts of the trading and derivative gain/loss on the residential adjustable-rate mortgage securities we acquired from Capstead that we are currently in the process of liquidating from our portfolio.

Distributable Earnings and Run-Rate Distributable Earnings do not represent net income (loss) and should not be considered as an alternative to GAAP net income (loss). Our methodology for calculating Distributable Earnings and Run-Rate Distributable Earnings may differ from the methodologies employed by other companies and thus may not be comparable to the Distributable Earnings reported by other companies.

Please refer to the financial statements and reconciliation of GAAP Net Income to Distributable Earnings and Run-Rate Distributable Earnings included at the end of this release for further information.

Supplemental Information

The Company has published a supplemental earnings presentation for the quarter ended June 30, 2022 on its website to provide additional disclosure and financial information. These materials can be found on the Company’s website at http://www.fbrtreit.com under the Presentations tab.

Conference Call and Webcast

The Company will host a conference call and live audio webcast to discuss its financial results on Friday, July 29, 2022 at 8:00 a.m. ET. Participants are encouraged to pre-register for the call and webcast at https://dpregister.com/sreg/10169273/f3aee6b40f. If you are unable to pre-register, the conference call may be accessed by dialing (844) 701-1166 (Domestic) or (412) 317-5795 (International). Ask to join the Franklin BSP Realty Trust conference call. Participants should call in at least five minutes prior to the start of the call.

The call will also be accessible via live webcast at https://ccmediaframe.com/?id=EBSJYP8A. Please allow extra time prior to the call to download and install audio software, if needed. A slide presentation containing supplemental information may also be accessed through the Company’s website in advance of the call.

An audio replay of the live broadcast will be available approximately one hour after the end of the conference call on FBRT’s website. The replay will be available for 90 days on the Company’s website.

About Franklin BSP Realty Trust, Inc.

Franklin BSP Realty Trust, Inc. (NYSE: FBRT) is a real estate investment trust that originates, acquires and manages a diversified portfolio of commercial real estate debt secured by properties located in the United States. As of June 30, 2022, FBRT had over $6.3 billion of assets. FBRT is externally managed by Benefit Street Partners L.L.C., a wholly owned subsidiary of Franklin Resources, Inc. For further information, please visit www.fbrtreit.com.

Forward-Looking Statements

This communication includes forward-looking statements. These forward-looking statements generally can be identified by phrases such as “will,” “should,” “expects,” “anticipates,” “foresees,” “forecasts,” “estimates” or other words or phrases of similar import. Similarly, statements herein that describe management’s beliefs, intentions or goals also are forward-looking statements. It is uncertain whether any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what impact they will have on the results of operations and financial condition of the Company or the price of FBRT stock. These forward-looking statements involve certain risks and uncertainties, many of which are beyond our control, that could cause actual results to differ materially from those indicated in such forward-looking statements. Further, forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law. Currently, one of the most significant factors that could cause actual outcomes to differ materially from our forward-looking statements is the continuing adverse effect of the current COVID-19 pandemic on the financial condition, operating results and cash flows of the Company, its borrowers, the real estate market, the global economy and the financial markets. The extent to which the COVID-19 pandemic continues to impact us and our borrowers will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, including resurgences of the virus and its variants, the speed, effectiveness and adoption of vaccine (including boosters) and treatment developments and the direct and indirect economic effects of the pandemic and containment measures, among others.

Our forward-looking statements are subject to various risks and uncertainties, including but not limited to the risks and important factors contained and identified in FBRT’s filings with the Securities and Exchange Commission (“SEC”), including its Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and its subsequent filings with the SEC, any of which could cause actual results to differ materially from the forward-looking statements. The forward-looking statements included in this communication are made only as of the date hereof.

FRANKLIN BSP REALTY TRUST, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

 

 

June 30, 2022

 

December 31, 2021

ASSETS

(Unaudited)

 

 

Cash and cash equivalents

$

445,812

 

 

$

154,929

 

Restricted cash

 

11,354

 

 

 

13,270

 

Commercial mortgage loans, held for investment, net of allowance of $47,025 and $15,827 as of June 30, 2022 and December 31, 2021, respectively

 

5,182,535

 

 

 

4,211,061

 

Commercial mortgage loans, held for sale, measured at fair value

 

129,275

 

 

 

34,718

 

Real estate securities, trading, measured at fair value

 

270,381

 

 

 

4,566,871

 

Derivative instruments, measured at fair value

 

2,622

 

 

 

436

 

Other real estate investments, measured at fair value

 

 

 

 

2,074

 

Receivable for loan repayment (1)

 

44,729

 

 

 

252,351

 

Accrued interest receivable

 

22,899

 

 

 

30,109

 

Prepaid expenses and other assets

 

14,697

 

 

 

13,595

 

Intangible lease asset, net of amortization

 

47,033

 

 

 

48,472

 

Real estate owned, net of depreciation

 

88,897

 

 

 

90,048

 

Cash collateral receivable from derivative counterparties

 

1,672

 

 

 

56,767

 

Total assets

$

6,261,906

 

 

$

9,474,701

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

Collateralized loan obligations

$

3,203,577

 

 

$

2,162,190

 

Repurchase agreements - commercial mortgage loans

 

832,034

 

 

 

1,019,600

 

Repurchase agreements - real estate securities

 

293,288

 

 

 

4,178,784

 

Mortgage note payable

 

23,998

 

 

 

23,998

 

Other financing and loan participation - commercial mortgage loans

 

47,181

 

 

 

37,903

 

Unsecured debt

 

98,645

 

 

 

148,594

 

Derivative instruments, measured at fair value

 

510

 

 

 

32,295

 

Interest payable

 

4,859

 

 

 

2,692

 

Distributions payable

 

36,801

 

 

 

30,346

 

Accounts payable and accrued expenses

 

13,568

 

 

 

12,705

 

Due to affiliates

 

19,754

 

 

 

17,538

 

Total liabilities

$

4,574,215

 

 

$

7,666,645

 

Commitment and contingencies (See Note 10)

 

 

 

Redeemable convertible preferred stock:

 

 

 

Redeemable convertible preferred stock Series C, $0.01 par value, 20,000 authorized and 1,400 issued and outstanding as of June 30, 2022 and December 31, 2021

$

6,975

 

 

$

6,971

 

Redeemable convertible preferred stock Series D, $0.01 par value, 20,000 authorized and 17,950 issued and outstanding as of December 31, 2021

 

 

 

 

89,684

 

Redeemable convertible preferred stock Series H, $0.01 par value, 20,000 authorized and 17,950 issued and outstanding as of June 30, 2022

 

89,748

 

 

 

 

Total redeemable convertible preferred stock

$

96,723

 

 

$

96,655

 

Equity:

 

 

 

Preferred stock, $0.01 par value, 10,000,000 authorized and none issued or outstanding as of June 30, 2022 and December 31, 2021, respectively

 

 

 

 

 

Preferred stock, $0.01 par value; 100,000,000 shares authorized, 7.5% Cumulative Redeemable Preferred Stock, Series E, 10,329,039 shares issued and outstanding as of June 30, 2022 and December 31, 2021

 

258,742

 

 

 

258,742

 

Series F Preferred stock, $0.01 par value, 40,000,000 authorized, none issued or outstanding as of June 30, 2022, and 39,733,299 issued and outstanding as of December 31, 2021

 

 

 

 

710,431

 

Common stock, $0.01 par value, 900,000,000 shares authorized, 84,226,628 and 43,965,928 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively

 

838

 

 

 

441

 

Additional paid-in capital

 

1,614,610

 

 

 

903,264

 

Accumulated other comprehensive income (loss)

 

 

 

 

(62

)

Accumulated deficit

 

(288,986

)

 

 

(167,179

)

Total stockholders' equity

$

1,585,204

 

 

$

1,705,637

 

Non-controlling interest

 

5,764

 

 

 

5,764

 

Total equity

$

1,590,968

 

 

$

1,711,401

 

Total liabilities, redeemable convertible preferred stock and equity

$

6,261,906

 

 

$

9,474,701

 

__________________

(1)

Includes $43.7 million and $187.0 million of cash held by servicer related to the CLOs as of June 30, 2022 and December 31, 2021, respectively, as well as $1.0 million and $65.3 million of RMBS principal paydowns receivable as of June 30, 2022 and December 31, 2021, respectively.

FRANKLIN BSP REALTY TRUST, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share and per share data)

(Unaudited)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2022

 

2021

 

2022

 

2021

Income:

 

 

 

 

 

 

 

Interest income

$

70,213

 

 

$

48,985

 

 

$

145,471

 

 

$

91,222

 

Less: Interest expense

 

32,807

 

 

 

12,637

 

 

 

55,287

 

 

 

24,006

 

Net interest income

 

37,406

 

 

 

36,348

 

 

 

90,184

 

 

 

67,216

 

Revenue from real estate owned

 

2,312

 

 

 

716

 

 

 

4,624

 

 

 

1,432

 

Total income

$

39,718

 

 

$

37,064

 

 

$

94,808

 

 

$

68,648

 

Expenses:

 

 

 

 

 

 

 

Asset management and subordinated performance fee

 

6,601

 

 

 

6,001

 

 

 

13,346

 

 

 

11,417

 

Acquisition expenses

 

319

 

 

 

169

 

 

 

634

 

 

 

322

 

Administrative services expenses

 

3,048

 

 

 

3,078

 

 

 

6,401

 

 

 

6,552

 

Professional fees

 

8,736

 

 

 

2,777

 

 

 

15,395

 

 

 

4,774

 

Depreciation and amortization

 

1,296

 

 

 

406

 

 

 

2,591

 

 

 

812

 

Other expenses

 

1,663

 

 

 

911

 

 

 

3,425

 

 

 

1,406

 

Total expenses

$

21,663

 

 

$

13,342

 

 

$

41,792

 

 

$

25,283

 

Other (income)/loss:

 

 

 

 

 

 

 

Provision/(benefit) for credit losses

 

32,530

 

 

 

(1,508

)

 

 

31,575

 

 

 

(3,839

)

Realized (gain)/loss on extinguishment of debt

 

(15

)

 

 

 

 

 

(15

)

 

 

 

Realized (gain)/loss on sale of real estate securities

 

 

 

 

 

 

 

 

 

 

 

Realized (gain)/loss on sale of commercial mortgage loans, held for sale

 

(39

)

 

 

 

 

 

(39

)

 

 

 

Realized (gain)/loss on sale of real estate owned assets, held for sale

 

 

 

 

(1,112

)

 

 

 

 

 

(1,112

)

Realized (gain)/loss on sale of commercial mortgage loans, held for sale, measured at fair value

 

1,833

 

 

 

(6,520

)

 

 

(56

)

 

 

(13,150

)

Realized (gain)/loss on other real estate investments, measured at fair value

 

 

 

 

 

 

 

33

 

 

 

 

Unrealized (gain)/loss on commercial mortgage loans, held for sale, measured at fair value

 

2,797

 

 

 

(625

)

 

 

3,736

 

 

 

(1,104

)

Unrealized (gain)/loss on other real estate investments, measured at fair value

 

 

 

 

(20

)

 

 

(4

)

 

 

(26

)

Trading (gain)/loss

 

22,538

 

 

 

315

 

 

 

110,973

 

 

 

1,375

 

Unrealized (gain)/loss on derivatives

 

9,427

 

 

 

3,163

 

 

 

14,390

 

 

 

1,054

 

Realized (gain)/loss on derivatives

 

(25,193

)

 

 

(281

)

 

 

(59,223

)

 

 

(2,259

)

Total other (income)/loss

$

43,878

 

 

$

(6,588

)

 

$

101,370

 

 

$

(19,061

)

Income/(loss) before taxes

 

(25,823

)

 

 

30,310

 

 

 

(48,354

)

 

 

62,426

 

Provision/(benefit) for income tax

 

(114

)

 

 

300

 

 

 

(138

)

 

 

2,270

 

Net income/(loss)

$

(25,709

)

 

$

30,010

 

 

$

(48,216

)

 

$

60,156

 

Net income/(loss) applicable to common stock

$

(32,664

)

 

$

22,998

 

 

$

(76,182

)

 

$

46,402

 

 

 

 

 

 

 

 

 

Basic earnings per share

$

(0.43

)

 

$

0.52

 

 

$

(1.27

)

 

$

1.05

 

Diluted earnings per share

$

(0.43

)

 

$

0.52

 

 

$

(1.27

)

 

$

1.05

 

Basic weighted average shares outstanding

 

75,837,621

 

 

 

44,262,934

 

 

 

59,985,361

 

 

 

44,276,480

 

Diluted weighted average shares outstanding

 

75,837,621

 

 

 

44,278,939

 

 

 

59,985,361

 

 

 

44,292,427

 

FRANKLIN BSP REALTY TRUST, INC.

RECONCILIATION OF GAAP NET INCOME TO DISTRIBUTABLE EARNINGS

(In thousands, except share and per share data)

(Unaudited)

 

The following table provides a reconciliation of GAAP net income to Distributable Earnings and Run-Rate Distributable Earnings as of June 30, 2022 and June 30, 2021 (amounts in thousands, except share and per share data):

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2022

 

2021

 

2022

 

2021

GAAP Net Income

$

(25,709

)

 

$

30,010

 

 

$

(48,216

)

 

$

60,156

 

Adjustments:

 

 

 

 

 

 

 

CLO amortization acceleration (1)

 

3,202

 

 

 

(839

)

 

 

2,225

 

 

 

(1,534

)

Unrealized (gain)/loss on financial instruments (2)

 

12,224

 

 

 

2,518

 

 

 

18,122

 

 

 

1,299

 

Unrealized (gain)/loss reversal - ARMs

 

7,658

 

 

 

 

 

 

35,120

 

 

 

 

Incentive fees

 

(3,456

)

 

 

2,104

 

 

 

(3,456

)

 

 

3,765

 

Depreciation and amortization

 

1,296

 

 

 

406

 

 

 

2,591

 

 

 

812

 

Increase/(decrease) in provision for credit losses

 

32,530

 

 

 

(1,508

)

 

 

31,575

 

 

 

(3,839

)

Loan Workout Charges (3)

 

3,000

 

 

 

 

 

 

4,900

 

 

 

 

Realized trading and derivatives (gain)/loss on ARMs

 

(5,946

)

 

 

 

 

 

22,082

 

 

 

 

Run Rate Distributable Earnings (4)

$

24,799

 

 

$

32,691

 

 

$

64,943

 

 

$

60,659

 

Realized trading and derivatives gain/(loss) on ARMs

 

5,946

 

 

 

 

 

 

(22,082

)

 

 

 

Distributable Earnings

$

30,745

 

 

$

32,691

 

 

$

42,861

 

 

$

60,659

 

Average Equity

$

1,470,643

 

 

$

1,047,109

 

 

$

1,495,106

 

 

$

1,035,161

 

7.5% Cumulative Redeemable Preferred Stock, Series E Dividend

$

4,842

 

 

$

 

 

$

9,683

 

 

$

 

GAAP Net Income (Loss) ROE

 

(8.3

)%

 

 

11.5

%

 

 

(7.7

)%

 

 

11.6

%

Run-Rate Distributable Earnings ROE

 

5.4

%

 

 

12.5

%

 

 

7.4

%

 

 

11.7

%

Distributable Earnings ROE

 

7.0

%

 

 

12.5

%

 

 

4.4

%

 

 

11.7

%

GAAP Net Income Per Share, Fully Converted

$

(0.34

)

 

$

0.52

 

 

$

(0.64

)

 

$

1.05

 

Run-Rate Distributable Earnings Per Share, Fully Converted

$

0.22

 

 

$

0.57

 

 

$

0.61

 

 

$

1.06

 

Distributable Earnings Per Share, Fully Converted

$

0.29

 

 

$

0.57

 

 

$

0.37

 

 

$

1.06

 

__________________

(1)

Adjusted for non-cash CLO amortization acceleration to effectively amortize issuance costs of our CLOs over the expected lifetime of the CLOs. We assume our CLOs will be outstanding for four years and amortized the financing costs over four years in our Distributable Earnings and Run-Rate Distributable Earnings as compared to effective yield methodology in our GAAP earnings.

(2)

Adjusted for unrealized gain/loss on commercial mortgage loans, held for sale, measured at fair value and unrealized gain/loss on derivatives.

(3)

Represents loan workout expenses the Company incurred, which the Company deems likely to be recovered and is non-recurring in nature.

(4)

Distributable Earnings before trading and derivative gain/loss on residential adjustable-rate mortgage securities (“Run-Rate Distributable Earnings”) (a non-GAAP financial measure).

 

Investor Relations Contact:
Lindsey Crabbe
l.crabbe@benefitstreetpartners.com
(214) 874-2339

Source: Franklin BSP Realty Trust, Inc.