Franklin BSP Realty Trust — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported a GAAP net loss of $27.0 million ($0.41 per diluted common share) for the quarter ended September 30, 2026, compared to a net income of $17.6 million ($0.12 per diluted common share) in the same period in 2025.
• Distributable Earnings were $3.3 million ($0.02 per diluted common share on a fully converted basis), compared to $26.7 million ($0.22 per diluted common share) in Q3 2025.
• Distributable Earnings before realized losses were $25.8 million ($0.24 per diluted common share on a fully converted basis), compared to $28.4 million ($0.23 per diluted common share) in Q3 2025.
• Recognized a net provision for credit losses of $43.1 million for the quarter, including a $37.7 million provision for the core portfolio and a $5.4 million provision for the Agency Business segment.
• Book value per diluted common share on a fully converted basis was $14.26, an increase of $0.02 from the prior quarter.
• Adjusted fully converted book value per share was $15.13, an increase of $0.39 from the prior quarter.
• Total assets were $6.03 billion as of September 30, 2026, compared to $6.06 billion as of December 31, 2025.
• Collateralized loan obligations increased to $2.86 billion from $2.74 billion at year-end 2025.
• Cash and cash equivalents were $100.8 million, down from $167.3 million at year-end 2025.

Guidance and Future Outlook:

• The press release does not provide specific forward-looking financial guidance, revenue targets, or earnings forecasts for future periods.
• Management indicated continued execution on key priorities including accretive share repurchases, resolving legacy assets, and growing the Agency Business contribution.
• The share repurchase program was extended by the Board of Directors to December 31, 2027.

Business Segments and Product Lines:

• Core Portfolio: Principal balance was $4.1 billion across 175 loans with an average loan size of $23.2 million; 83% of collateral is multifamily properties. The average portfolio risk rating remained unchanged at 2.4.
• Core Portfolio Activity: Closed $249.3 million in new loan commitments and funded $284.8 million on new and existing loans; received loan repayments of $405.5 million.
• Agency Business: Servicing portfolio grew by $1.4 billion to $61.3 billion. Originated $670.4 million of new loan commitments under Fannie Mae, Freddie Mac, and HUD programs.
• Mortgage Servicing Rights (MSRs): Book value was $201.2 million, with an additional $8.1 million in MSR book value related to loan commitments and funded agency loans.
• Conduit: Originated $61.5 million of fixed-rate conduit loans and sold $54.5 million of conduit loans for a gain of $1.0 million.
• Real Estate Owned (REO) and Equity Investments: Held ten foreclosure REO positions totaling $339.5 million, one investment REO position of $113.9 million, and six equity method investment positions of $88.7 million.
• Watch List: 13 loans with a principal balance of $333.6 million were on the watch list, six rated a four and seven rated a five.

Market and Competitive Landscape:

• The Company operates in the commercial real estate debt market, originating, acquiring, and managing a diversified portfolio secured by U.S. properties.
• Agency Business activities include programs with major government-sponsored enterprises (Fannie Mae, Freddie Mac) and HUD.
• The Company is externally managed by Benefit Street Partners L.L.C., a subsidiary of Franklin Templeton, which manages $96 billion in assets as of August 31, 2026.

Risks and Challenges:

• The Company recognized a significant net provision for credit losses of $43.1 million, driven by specific allowance provisions in the core portfolio.
• Forward-looking statements note risks including macroeconomic factors such as inflation, changing interest rates, and economic contraction.
• Risks include the extent of recoveries on delinquent loans and the financial stability of borrowers.
• The Company holds 13 loans on its watch list totaling $333.6 million, indicating potential credit deterioration in specific assets.

Management Commentary and Tone:

• Management stated the Company increased fully converted book value per share and continued to execute on key priorities during the quarter.
• The tone emphasizes the resolution of legacy assets and the growth of the Agency Business segment.
• The Board extended the share repurchase program through the end of 2027, signaling confidence in the company's capital allocation strategy.

Other Key Points:

• Repurchased 7,433,748 shares of common stock at an average price of $8.14 per share for an aggregate of $60.5 million, resulting in $0.55 per diluted common share of book value accretion.
• Declared a third-quarter common stock cash dividend of $0.20, representing an annualized 5.6% yield on fully converted book value or a 12.8% yield on the trading price as of October 23, 2026.
• On October 15, 2026, the Company called all outstanding notes issued by BSPRT 2023-FL10 Issuer, Ltd., with an outstanding principal balance of $267.2 million at the time of redemption.
• Total liquidity was $407.2 million, including $100.8 million in cash and cash equivalents.
• The Company published a supplemental earnings presentation available on its website.
• A conference call and webcast were scheduled for October 29, 2026, at 9:00 a.m. ET to discuss results.