Franklin BSP Realty Trust (FBRT) investor relations material

Executive summary

• Leadership transition with Mike Comparato as CEO and Brian Buffone as President, reflecting a strategic evolution and a focus on resolving legacy assets.

• Company repositioned from a pure play mortgage REIT to a diversified commercial real estate investment platform following the NewPoint acquisition.

• Reported GAAP net income of $18.4M ($0.13 per share) for Q4 2025 and $84.1M for FY 2025, with distributable earnings of $17.9M for Q4 and $67.3M for FY 2025.

• Dividend reset to $0.20 per share for Q1 2026 to prioritize book value stability and sustainable earnings.

• Book value per share ended at $14.15, remaining stable despite lower earnings.

Financial highlights

• GAAP net income for Q4 2025 was $18.4M ($0.13 per share); distributable earnings were $17.9M ($0.12 per share), including $9.8M of realized losses.

• Adjusted distributable earnings, excluding realized losses, were $0.22 per share, nearly flat quarter-over-quarter.

• Declared a Q4 2025 cash dividend of $0.355 per share, representing a 10.0% annualized yield on book value.

• Share buybacks totaled $14.4M in Q4, adding $0.05 to book value.

• Total liquidity stood at $820.6M, including $167.3M in cash and equivalents.

Outlook and guidance

• Core loan portfolio targeted to grow to $4.8–$5B by year-end 2026.

• NewPoint expected to contribute $25–$33M in distributable earnings annually, with agency volumes projected at $4.5–$5.5B for 2026.

• Management expects earnings to increase over the next several quarters, aiming to return to $0.35–$0.36 per share.

• Board reset the quarterly dividend to $0.20 to stabilize book value and align distributions with earnings.

• Integration of BSP loan book to NewPoint servicing is on track for completion by mid-Q1 2026.