Franklin BSP Realty Trust (FBRT) investor relations material

Executive summary

• GAAP net income for Q2 2026 was $16.3 million ($0.12 per diluted share, $0.13 per fully converted share), with distributable earnings of $28.3 million ($0.25 per share), both exceeding the quarterly dividend.

• Book value per share increased to $14.24 from $14.18 sequentially, with adjusted book value per share at $14.74; book value per share as of June 30, 2026 was $14.51.

• Repurchased $16 million of common stock at an average price of $8.70 per share, increasing book value per share by $0.11; share repurchase program reauthorized for $50 million through December 2026.

• Portfolio is over 77% comprised of loans originated after the interest rate hiking cycle, with multifamily concentration at 80%.

• Liquidity remains strong, with $796.7–$800 million available, supporting flexibility for future opportunities.

Financial highlights

• Net interest income for Q2 2026 was $29.9 million, down from $41.0 million in Q2 2025; total income was $65.3 million, up from $49.3 million year-over-year.

• Distributable earnings for the quarter were $28.3 million ($0.25 per share); distributable earnings before realized losses were $30.2 million ($0.28 per share).

• Dividend payout was $0.20 per share, with a coverage ratio of 127.4% and a yield of 5.6% on book value.

• Net leverage at 2.6x; recourse leverage at 0.7x; 79% of core financing is non-mark-to-market.

• Allowance for credit losses increased by $7.2 million during the quarter, totaling $54.7 million or 1.3% of total UPB.

Outlook and guidance

• Management expects sufficient liquidity to meet obligations for the next twelve months and beyond, with $797 million in available liquidity.

• Earnings are expected to trend in the $0.22–$0.23 per share range, with some variability from one-time items.

• Portfolio remains heavily weighted to multifamily loans (80%), with 77% of collateral originated post-rate hike.

• Management sees a clear path to higher earnings as legacy assets are resolved and buybacks continue.

• Forward-looking statements caution about macroeconomic risks, including inflation, interest rates, and borrower stability.