Franklin BSP Realty Trust, Inc. Announces Second Quarter 2024 Results
Franklin BSP Realty Trust (NYSE: FBRT) announced its Q2 2024 financial results. Key highlights include:
- GAAP net loss of $3.8 million, compared to $35.8 million profit in Q1 2024
- Diluted EPS of $(0.11), down from $0.35 in Q1 2024
- Distributable Earnings of $32.4 million ($0.31 per diluted share), compared to $41.0 million ($0.41 per share) in Q1 2024
- Core portfolio principal balance increased by $195 million to $5.4 billion
- Closed $622 million of new loan commitments at a weighted average spread of 318 basis points
- Declared Q2 common stock cash dividend of $0.355, representing a 9.3% annualized yield on book value per share
- Book value of $15.27 per diluted common share
- Repurchased 240,740 shares at an average price of $12.42 per share
Franklin BSP Realty Trust (NYSE: FBRT) ha annunciato i risultati finanziari per il secondo trimestre del 2024. I punti salienti includono:
- Perdita netta GAAP di 3,8 milioni di dollari, rispetto a un profitto di 35,8 milioni di dollari nel primo trimestre del 2024
- EPS diluito di $(0,11), in calo rispetto a $0,35 nel primo trimestre del 2024
- Utili distribuibili di 32,4 milioni di dollari ($0,31 per azione diluita), rispetto a 41,0 milioni di dollari ($0,41 per azione) nel primo trimestre del 2024
- Il saldo principale del portafoglio centrale è aumentato di 195 milioni di dollari, raggiungendo 5,4 miliardi di dollari
- Chiusura di 622 milioni di dollari di nuovi impegni di prestito con uno spread medio ponderato di 318 punti base
- Dichiarato un dividendo in denaro per azioni ordinarie del secondo trimestre di 0,355 dollari, che rappresenta un rendimento annualizzato del 9,3% sul valore contabile per azione
- Valore contabile di 15,27 dollari per azione comune diluita
- Riacquistate 240.740 azioni a un prezzo medio di 12,42 dollari per azione
Franklin BSP Realty Trust (NYSE: FBRT) anunció sus resultados financieros del segundo trimestre de 2024. Los aspectos destacados incluyen:
- Pérdida neta GAAP de $3.8 millones, en comparación con una ganancia de $35.8 millones en el primer trimestre de 2024
- EPS diluido de $(0.11), una disminución respecto a $0.35 en el primer trimestre de 2024
- Ganancias distribuibles de $32.4 millones ($0.31 por acción diluida), comparado con $41.0 millones ($0.41 por acción) en el primer trimestre de 2024
- El saldo principal de la cartera principal aumentó en $195 millones hasta alcanzar $5.4 mil millones
- Cerrado $622 millones en nuevos compromisos de préstamo con un diferencial promedio ponderado de 318 puntos base
- Declarado un dividendo en efectivo de acciones comunes del segundo trimestre de $0.355, que representa un rendimiento anualizado del 9.3% sobre el valor contable por acción
- Valor contable de $15.27 por acción común diluida
- Recompradas 240,740 acciones a un precio promedio de $12.42 por acción
Franklin BSP Realty Trust (NYSE: FBRT)는 2024년 2분기 금융 결과를 발표했습니다. 주요 하이라이트는 다음과 같습니다:
- GAAP 순손실이 380만 달러로, 2024년 1분기에 3580만 달러의 이익과 비교됩니다
- 희석 주당 순이익(EPS)은 $(0.11)로, 2024년 1분기의 $0.35에서 감소했습니다
- 배당 가능한 수익은 3240만 달러($0.31 per 희석 주당)로, 2024년 1분기의 4100만 달러($0.41 per 주당)와 비교됩니다
- 핵심 포트폴리오의 원금 잔고가 1억 9500만 달러 증가하여 54억 달러에 도달했습니다
- 318베이시스 포인트의 가중 평균 스프레드로 6억 2200만 달러의 신규 대출 약정을 체결했습니다
- 2024년 2분기 보통주 현금 배당금을 $0.355 선언했으며, 이는 주당 장부가치에 대한 연율화 수익률 9.3%를 나타냅니다
- 희석된 보통주당 장부가치는 $15.27입니다
- 주당 평균 가격 $12.42로 240,740주를 재매입했습니다
Franklin BSP Realty Trust (NYSE: FBRT) a annoncé ses résultats financiers pour le deuxième trimestre 2024. Les points clés incluent :
- Perte nette GAAP de 3,8 millions de dollars, par rapport à un bénéfice de 35,8 millions de dollars au premier trimestre 2024
- BPA dilué de $(0,11), en baisse par rapport à 0,35 $ au premier trimestre 2024
- Bénéfices distribuables de 32,4 millions de dollars (0,31 $ par action diluée), contre 41,0 millions de dollars (0,41 $ par action) au premier trimestre 2024
- Le solde principal du portefeuille principal a augmenté de 195 millions de dollars pour atteindre 5,4 milliards de dollars
- Clôturé 622 millions de dollars de nouveaux engagements de prêt avec un différentiel moyen pondéré de 318 points de base
- Dividende en espèces sur actions ordinaires du deuxième trimestre de 0,355 $, représentant un rendement annualisé de 9,3 % sur la valeur comptable par action
- Valeur comptable de 15,27 $ par action ordinaire diluée
- A racheté 240 740 actions à un prix moyen de 12,42 $ par action
Franklin BSP Realty Trust (NYSE: FBRT) hat die finanziellen Ergebnisse für das zweite Quartal 2024 veröffentlicht. Die wichtigsten Punkte umfassen:
- GAAP Nettoverlust von 3,8 Millionen Dollar, verglichen mit einem Gewinn von 35,8 Millionen Dollar im ersten Quartal 2024
- Verwässertes EPS von $(0,11), ein Rückgang von 0,35 Dollar im ersten Quartal 2024
- Verteilbare Erträge von 32,4 Millionen Dollar (0,31 Dollar pro verwässerter Aktie), im Vergleich zu 41,0 Millionen Dollar (0,41 Dollar pro Aktie) im ersten Quartal 2024
- Der Hauptkreditportfoliostand erhöhte sich um 195 Millionen Dollar auf 5,4 Milliarden Dollar
- Verschlossene 622 Millionen Dollar an neuen Kreditverpflichtungen mit einem gewichteten Durchschnittsspread von 318 Basispunkten
- Erklärte eine Barausschüttung auf Stammaktien im zweiten Quartal von 0,355 Dollar, was eine annualisierte Rendite von 9,3% auf den Buchwert pro Aktie darstellt
- Buchwert von 15,27 Dollar pro verwässerter Stammaktie
- Erwarb 240.740 Aktien zu einem Durchschnittspreis von 12,42 Dollar pro Aktie
- Core portfolio principal balance increased by $195 million to $5.4 billion
- Closed $622 million of new loan commitments at a weighted average spread of 318 basis points
- Total liquidity of $699 million, including $95 million in cash and cash equivalents
- 74% of the portfolio is collateralized by multifamily properties
- Only 4.7% exposure to office loans
- GAAP net loss of $3.8 million, compared to $35.8 million profit in Q1 2024
- Diluted EPS decreased to $(0.11) from $0.35 in Q1 2024
- Distributable Earnings decreased to $32.4 million from $41.0 million in Q1 2024
- GAAP and Distributable Earnings dividend coverage of -22% and 87%, respectively
- Recognized an additional incremental provision for credit losses of $32.2 million
Insights
Franklin BSP Realty Trust's Q2 2024 results present a mixed picture. The company reported a GAAP net loss of
The company's focus on multifamily properties (
However, the Distributable Earnings of
The additional provision for credit losses of
Overall, while FBRT continues to grow its loan portfolio, the declining profitability and increasing credit provisions suggest caution is warranted.
FBRT's Q2 2024 results reflect the broader trends in the real estate market. The company's strategic focus on multifamily properties, which comprise
The new loan commitments of
However, the increase in the watch list to seven loans, with two rated at the highest risk level, signals potential stress in parts of the portfolio. This, coupled with the additional
The sale of Walgreens stores from the REO portfolio at a loss highlights the challenges in the retail real estate sector. This trend may continue as the retail landscape evolves post-pandemic.
The book value per share of
In summary, while FBRT's strategy appears sound, the company is not immune to broader market pressures and investors should closely monitor credit quality and earnings trends in coming quarters.
Reported GAAP net income (loss) of
Reported Distributable Earnings (a non-GAAP financial measure) of
Second Quarter 2024 Summary
-
Core portfolio principal balance of
, an increase of$5.4 billion from the prior quarter$195 million -
Closed
of new loan commitments at a weighted average spread of 318 basis points, bringing total commitments for the first two quarters of 2024 to$622 million $1.2 billion -
Total liquidity of
, which includes$699 million in cash and cash equivalents$95 million -
Produced a second quarter GAAP and Distributable Earnings return on equity (a non-GAAP financial measure) of (2.0)% and
8.0% , respectively -
Declared second quarter common stock cash dividend of
, representing an annualized$0.35 59.3% yield on book value per share , fully converted(1) -
GAAP and Distributable Earnings dividend coverage of (
22% ) and87% , respectively -
Book value of
per diluted common share on a fully converted basis(1)$15.27 -
Repurchased 240,740 shares of common stock at a net average price of
per share for an aggregate of$12.42 , which represents a$3.0 million per share increase to book value$0.01 - During the quarter, the Company sold two Walgreens stores that were part of the REO single tenant retail portfolio. Subsequent to quarter-end, the Company sold an additional 16 Walgreens stores
Richard Byrne, Chairman and Chief Executive Officer of FBRT, said, “We continue to take advantage of attractive market opportunities and have originated over
Further commenting on the Company's results, Michael Comparato, President of FBRT, added, “Our
Portfolio and Investment Activity
Core Portfolio: For the quarter ended June 30, 2024, the Company closed
Conduit: For the quarter ended June 30, 2024, the Company closed
Real Estate Owned: During the second quarter, the Company sold two Walgreens stores that were part of the single tenant retail portfolio held in REO. The Company recorded a loss of
Allowance for Credit Losses: During the quarter, the Company recognized an additional incremental provision for credit losses of approximately
Book Value
As of June 30, 2024, book value was
Share Repurchase Program
During the quarter, the Company repurchased 240,740 shares of the Company's common stock under the Company's
Subsequent Event
Subsequent to the quarter ended June 30, 2024, the Company sold 16 of the 21 remaining retail properties in the Walgreens Portfolio for a sale price of
Distributable Earnings and Distributable Earnings to Common
Distributable Earnings is a non-GAAP measure, which the Company defines as GAAP net income (loss), adjusted for (i) non-cash CLO amortization acceleration and amortization over the expected useful life of the Company's CLOs, (ii) unrealized gains and losses on loans and derivatives, including CECL reserves and impairments, net of realized gains and losses, as described further below, (iii) non-cash equity compensation expense, (iv) depreciation and amortization, (v) subordinated performance fee accruals/(reversal), (vi) realized gains and losses on debt extinguishment and CLO calls, and (vii) certain other non-cash items. Further, Distributable Earnings to Common, a non-GAAP measure, presents Distributable Earnings net of (i) perpetual preferred stock dividend payments and (ii) non-controlling interests in joint ventures.
As noted in (ii) above, we exclude unrealized gains and losses on loans and other investments, including CECL reserves and impairments, from our calculation of Distributable Earnings and include realized gains and losses. The nature of these adjustments is described more fully in the footnotes to our reconciliation tables. GAAP loan loss reserves and any property impairment losses have been excluded from Distributable Earnings consistent with other unrealized losses pursuant to our existing definition of Distributable Earnings. We expect to only recognize such potential credit or property impairment losses in Distributable Earnings if and when such amounts are deemed nonrecoverable upon a realization event. This is generally at the time a loan is repaid, or in the case of a foreclosure or other property, when the underlying asset is sold. The realized loss amount reflected in Distributable Earnings will generally equal the difference between the cash received and the Distributable Earnings basis of the asset. The timing of any such loss realization in our Distributable Earnings may differ materially from the timing of the corresponding loss reserves, charge-offs or impairments in our consolidated financial statements prepared in accordance with GAAP.
The Company believes that Distributable Earnings and Distributable Earnings to Common provide meaningful information to consider in addition to the disclosed GAAP results. The Company believes Distributable Earnings and Distributable Earnings to Common are useful financial metrics for existing and potential future holders of its common stock as historically, over time, Distributable Earnings to Common has been an indicator of common dividends per share. As a REIT, the Company generally must distribute annually at least
Distributable Earnings and Distributable Earnings to Common do not represent net income (loss) and should not be considered as an alternative to GAAP net income (loss). The methodology for calculating Distributable Earnings and Distributable Earnings to Common 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 Distributable Earnings to Common included at the end of this release for further information.
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. |
Supplemental Information
The Company published a supplemental earnings presentation for the quarter ended June 30, 2024 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 Thursday, August 1, 2024, at 9:00 a.m. ET. Participants are encouraged to pre-register for the call and webcast at https://dpregister.com/sreg/10190149/fcd91dd337. 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=MxpMVJBX. 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
Forward-Looking Statements
Certain statements included in this press release are forward-looking statements. Those statements include statements regarding the intent, belief or current expectations of the Company and members of our management team, as well as the assumptions on which such statements are based, and generally are identified by the use of words such as "may," "will," "seeks," "anticipates," "believes," "estimates," "expects," "plans," "intends," "should" or similar expressions. Actual results may differ materially from those contemplated by 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.
The Company's forward-looking statements are subject to various risks and uncertainties. Factors that could cause actual outcomes to differ materially from our forward-looking statements include macroeconomic factors in
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 |
|
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 |
|
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 Series H, |
$ |
89,748 |
|
|
$ |
89,748 |
|
Total redeemable convertible preferred stock |
$ |
89,748 |
|
|
$ |
89,748 |
|
Equity: |
|
|
|
||||
Preferred stock, |
$ |
258,742 |
|
|
$ |
258,742 |
|
Common stock, |
|
818 |
|
|
|
820 |
|
Additional paid-in capital |
|
1,596,709 |
|
|
|
1,599,197 |
|
Accumulated other comprehensive income (loss) |
|
575 |
|
|
|
(703 |
) |
Accumulated deficit |
|
(337,734 |
) |
|
|
(298,942 |
) |
Total stockholders' equity |
$ |
1,519,110 |
|
|
$ |
1,559,114 |
|
Non-controlling interest |
|
24,775 |
|
|
|
27,095 |
|
Total equity |
$ |
1,543,885 |
|
|
$ |
1,586,209 |
|
Total liabilities, redeemable convertible preferred stock and equity |
$ |
6,269,336 |
|
|
$ |
5,955,180 |
|
_________________________________________________________
(1) |
Includes |
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, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Income |
|
|
|
|
|
|
|
||||||||
Interest income |
$ |
133,553 |
|
|
$ |
152,892 |
|
|
$ |
264,111 |
|
|
$ |
283,428 |
|
Less: Interest expense |
|
86,740 |
|
|
|
75,299 |
|
|
|
168,058 |
|
|
|
146,374 |
|
Net interest income |
|
46,813 |
|
|
|
77,593 |
|
|
|
96,053 |
|
|
|
137,054 |
|
Revenue from real estate owned |
|
4,072 |
|
|
|
6,438 |
|
|
|
8,784 |
|
|
|
9,750 |
|
Total income |
$ |
50,885 |
|
|
$ |
84,031 |
|
|
$ |
104,837 |
|
|
$ |
146,804 |
|
Expenses |
|
|
|
|
|
|
|
||||||||
Asset management and subordinated performance fee |
$ |
6,252 |
|
|
$ |
8,900 |
|
|
$ |
14,117 |
|
|
$ |
16,985 |
|
Acquisition expenses |
|
195 |
|
|
|
283 |
|
|
|
433 |
|
|
|
661 |
|
Administrative services expenses |
|
704 |
|
|
|
3,398 |
|
|
|
3,564 |
|
|
|
7,427 |
|
Professional fees |
|
3,864 |
|
|
|
2,794 |
|
|
|
7,948 |
|
|
|
7,608 |
|
Share-based compensation |
|
2,087 |
|
|
|
1,228 |
|
|
|
3,886 |
|
|
|
2,250 |
|
Depreciation and amortization |
|
1,417 |
|
|
|
2,196 |
|
|
|
2,835 |
|
|
|
4,001 |
|
Other expenses |
|
3,202 |
|
|
|
4,301 |
|
|
|
5,565 |
|
|
|
6,467 |
|
Total expenses |
$ |
17,721 |
|
|
$ |
23,100 |
|
|
$ |
38,348 |
|
|
$ |
45,399 |
|
Other income/(loss) |
|
|
|
|
|
|
|
||||||||
(Provision)/benefit for credit losses |
$ |
(32,178 |
) |
|
$ |
(21,624 |
) |
|
$ |
(35,059 |
) |
|
$ |
(25,984 |
) |
Realized gain/(loss) on extinguishment of debt |
|
— |
|
|
|
270 |
|
|
|
— |
|
|
|
5,037 |
|
Realized gain/(loss) on real estate securities, available for sale |
|
— |
|
|
|
— |
|
|
|
88 |
|
|
|
596 |
|
Realized gain/(loss) on sale of commercial mortgage loans, held for sale, measured at fair value |
|
1,384 |
|
|
|
2,094 |
|
|
|
6,897 |
|
|
|
2,094 |
|
Unrealized gain/(loss) on commercial mortgage loans, held for sale, measured at fair value |
|
158 |
|
|
|
(303 |
) |
|
|
615 |
|
|
|
44 |
|
Gain/(loss) on other real estate investments |
|
(6,249 |
) |
|
|
(1,691 |
) |
|
|
(6,243 |
) |
|
|
(3,030 |
) |
Trading gain/(loss) |
|
— |
|
|
|
(946 |
) |
|
|
— |
|
|
|
2,022 |
|
Unrealized gain/(loss) on derivatives |
|
(183 |
) |
|
|
393 |
|
|
|
(321 |
) |
|
|
73 |
|
Realized gain/(loss) on derivatives |
|
22 |
|
|
|
573 |
|
|
|
313 |
|
|
|
617 |
|
Total other income/(loss) |
$ |
(37,046 |
) |
|
$ |
(21,234 |
) |
|
$ |
(33,710 |
) |
|
$ |
(18,531 |
) |
Income/(loss) before taxes |
|
(3,882 |
) |
|
|
39,697 |
|
|
|
32,779 |
|
|
|
82,874 |
|
(Provision)/benefit for income tax |
|
117 |
|
|
|
(53 |
) |
|
|
(717 |
) |
|
|
609 |
|
Net income/(loss) |
$ |
(3,765 |
) |
|
$ |
39,644 |
|
|
$ |
32,062 |
|
|
$ |
83,483 |
|
Net (income)/loss attributable to non-controlling interest |
|
1,590 |
|
|
|
(41 |
) |
|
|
1,683 |
|
|
|
(50 |
) |
Net income/(loss) attributable to Franklin BSP Realty Trust, Inc. |
$ |
(2,175 |
) |
|
$ |
39,603 |
|
|
$ |
33,745 |
|
|
$ |
83,433 |
|
Less: Preferred stock dividends |
|
6,748 |
|
|
|
6,749 |
|
|
|
13,497 |
|
|
|
13,497 |
|
Net income/(loss) applicable to common stock |
$ |
(8,923 |
) |
|
$ |
32,854 |
|
|
$ |
20,248 |
|
|
$ |
69,936 |
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share |
$ |
(0.11 |
) |
|
$ |
0.39 |
|
|
$ |
0.24 |
|
|
$ |
0.83 |
|
Diluted earnings per share |
$ |
(0.11 |
) |
|
$ |
0.39 |
|
|
$ |
0.24 |
|
|
$ |
0.83 |
|
Basic weighted average shares outstanding |
|
81,815,681 |
|
|
|
82,252,979 |
|
|
|
81,904,888 |
|
|
|
82,512,434 |
|
Diluted weighted average shares outstanding |
|
81,815,681 |
|
|
|
82,252,979 |
|
|
|
81,904,888 |
|
|
|
82,512,434 |
|
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 Distributable Earnings to Common as of the three and six months ended June 30, 2024 and 2023 (amounts in thousands, except share and per share data): |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
GAAP Net Income (Loss) |
$ |
(3,765 |
) |
|
$ |
39,644 |
|
|
$ |
32,062 |
|
|
$ |
83,483 |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
CLO amortization acceleration(1) |
|
— |
|
|
|
(1,197 |
) |
|
|
— |
|
|
|
(2,665 |
) |
Unrealized (gain)/loss on financial instruments(2) |
|
6,274 |
|
|
|
1,601 |
|
|
|
5,949 |
|
|
|
2,913 |
|
Unrealized (gain)/loss - ARMs |
|
— |
|
|
|
1,149 |
|
|
|
— |
|
|
|
415 |
|
(Reversal of)/Provision for credit losses |
|
32,178 |
|
|
|
21,624 |
|
|
|
35,059 |
|
|
|
25,984 |
|
Non-Cash Compensation Expense |
|
2,087 |
|
|
|
1,228 |
|
|
|
3,886 |
|
|
|
2,250 |
|
Depreciation and amortization |
|
1,417 |
|
|
|
2,196 |
|
|
|
2,835 |
|
|
|
4,001 |
|
Subordinated performance fee(3) |
|
(2,158 |
) |
|
|
2,614 |
|
|
|
(2,712 |
) |
|
|
2,020 |
|
Realized (gain)/loss on debt extinguishment / CLO call |
|
— |
|
|
|
(270 |
) |
|
|
— |
|
|
|
(5,037 |
) |
Realized Cash Gain/(Loss) Adjustment on REO(4) |
|
(3,680 |
) |
|
|
— |
|
|
|
(3,680 |
) |
|
|
— |
|
Loan workout charges/(loan workout recoveries)(5) |
|
— |
|
|
|
(5,105 |
) |
|
|
— |
|
|
|
(5,105 |
) |
Distributable Earnings |
$ |
32,353 |
|
|
$ |
63,484 |
|
|
$ |
73,399 |
|
|
$ |
108,259 |
|
|
|
(4,842 |
) |
|
|
(4,842 |
) |
|
|
(9,684 |
) |
|
|
(9,683 |
) |
Noncontrolling Interests in Joint Ventures Net (Income) / Loss |
|
1,590 |
|
|
|
(41 |
) |
|
|
1,683 |
|
|
|
(50 |
) |
Noncontrolling Interests in Joint Ventures Adjusted Net (Income) / Loss DE Adjustments |
|
(1,676 |
) |
|
|
(426 |
) |
|
|
(1,952 |
) |
|
|
(787 |
) |
Distributable Earnings to Common |
$ |
27,425 |
|
|
$ |
58,175 |
|
|
$ |
63,446 |
|
|
$ |
97,739 |
|
Average Common Stock & Common Stock Equivalents(6) |
|
1,370,731 |
|
|
|
1,413,493 |
|
|
|
1,380,321 |
|
|
|
1,408,571 |
|
GAAP Net Income/(Loss) ROE |
|
(2.0 |
)% |
|
|
9.8 |
% |
|
|
3.5 |
% |
|
|
5.2 |
% |
Distributable Earnings ROE |
|
8.0 |
% |
|
|
16.5 |
% |
|
|
9.2 |
% |
|
|
6.9 |
% |
GAAP Net Income/(Loss) Per Share, Diluted |
$ |
(0.11 |
) |
|
$ |
0.39 |
|
|
$ |
0.24 |
|
|
$ |
0.83 |
|
GAAP Net Income/(Loss) Per Share, Fully Converted(7) |
$ |
(0.08 |
) |
|
$ |
0.39 |
|
|
$ |
0.27 |
|
|
$ |
0.83 |
|
Distributable Earnings Per Share, Fully Converted(7) |
$ |
0.31 |
|
|
$ |
0.66 |
|
|
$ |
0.72 |
|
|
$ |
1.10 |
|
________________________
(1) |
Before Q1 2024, we adjusted GAAP income for non-cash CLO amortization acceleration to effectively amortize the issuance costs of our CLOs over the expected lifetime of the CLOs. We assume our CLOs will be outstanding for approximately four years and amortized the financing costs over approximately four years in our distributable earnings as compared to effective yield methodology in our GAAP earnings. Starting in Q1 2024, we amortized the issuance costs incurred on our CLOs over the expected lifetime of the CLOs in our GAAP presentation, making our previous adjustment no longer necessary. |
|
(2) |
Represents unrealized gains and losses on (i) commercial mortgage loans, held for sale, measured at fair value, (ii) other real estate investments, measured at fair value and (iii) derivatives. |
|
(3) |
Represents accrued and unpaid subordinated performance fee. In addition, reversal of subordinated performance fee represents cash payment obligations in the quarter. |
|
(4) |
Represents the actual realized cash loss upon the sale of REO investments, which may be different than the GAAP basis. As of June 30, 2024, the Company has |
|
(5) |
Represents loan workout charges the Company incurred, which the Company deemed likely to be recovered. Reversal of loan workout charges represent recoveries received. During the second quarter of 2023, the Company recovered |
|
(6) |
Represents the average of all classes of equity except the Series E Preferred Stock. |
|
(7) |
Fully Converted assumes conversion of our series of convertible preferred stock and full vesting of our outstanding equity compensation awards. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240731164046/en/
Investor Relations Contact:
Lindsey Crabbe
l.crabbe@benefitstreetpartners.com
(214) 874-2339
Source: Franklin BSP Realty Trust, Inc.
FAQ
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