Press Release: Franklin BSP Realty Trust, Inc. Announces Second Quarter 2026 Results

Dow Jones
07/30
NEW YORK--(BUSINESS WIRE)--July 29, 2026-- 

Franklin BSP Realty Trust, Inc. (NYSE: FBRT) ("FBRT" or the "Company") today announced financial results for the quarter ended June 30, 2026.

During the second quarter, FBRT increased GAAP book value per share, generated distributable earnings that exceeded its quarterly dividend, continued repurchasing common stock and made further progress resolving legacy assets.

Second Quarter 2026 Summary

   --  GAAP net income of $16.3 million or $0.12 per diluted common share 
 
   --  Distributable Earnings (a non-GAAP financial measure) of $28.3 million, 
      or $0.25 per diluted common share on a fully converted basis(1) 
 
   --  Distributable Earnings before realized losses (a non-GAAP financial 
      measure) of $30.2 million, or $0.28 per diluted common share on a fully 
      converted basis(1) 
 
   --  Repurchased 1,838,855 shares of common stock at an average price of 
      $8.70 per share for an aggregate of $16.0 million, which provided an 
      $0.11 increase in book value per diluted common share on a fully 
      converted basis(1) 
 
   --  Book value of $14.24 per diluted common share on a fully converted 
      basis(1), an increase of $0.06 from the prior quarter 
 
   --  Adjusted(2) fully converted(1) book value per share of $14.74, an 
      increase of $0.16 from the prior quarter 
 
   --  Core portfolio: 
 
          --  Principal balance totaled $4.3 billion across 172 loans, 
             averaging $25.3 million each, with 80% collateralized by 
             multifamily properties 
 
          --  Closed $166.7 million of new loan commitments at a weighted 
             average spread of 238 basis points 
 
          --  Funded $248.4 million of principal balance including future 
             funding on existing loans and received loan repayments of $457.7 
             million 
 
          --  Average portfolio risk rating improved to 2.4 from 2.5 in the 
             prior quarter 
 
 
 
   --  Agency Business segment: 
 
          --  Servicing portfolio grew by $1.7 billion to $59.8 billion(3) 
 
          --  Originated $398.8 million of new loan commitments under programs 
             with Fannie Mae, Freddie Mac, and HUD 
 
          --  Mortgage Servicing Rights ("MSRs") valued at $205.5 million 
 
 
 
   --  Declared a second quarter common stock cash dividend of $0.20, 
      representing an annualized 5.6% yield on book value, or 10.2% yield on 
      current trading price(4) 
 
   --  Total liquidity of $796.7 million, which includes $136.3 million in 
      cash and cash equivalents 
 
   --  Closed BSPRT 2026-FL13 ("FL13 CRE CLO"), an $880.4 million managed 
      Commercial Real Estate Collateralized Loan Obligation ("CLO"), resulting 
      in financing of $778.1 million, with a 30 month re-investment period, an 
      advance rate of 88.4% and a weighted average interest rate of 1M Term 
      SOFR+176 before accounting for discount and transaction costs 
 
   --  On July 28, 2026, the Board of Directors reauthorized the Company's 
      share repurchase program, making $50.0 million available for repurchases 
      through December 31, 2026 

Portfolio and Investment Activity

Core portfolio: For the quarter ended June 30, 2026, the Company closed $166.7 million of new loan commitments, funded $248.4 million of principal balance on new and existing loans, and received loan repayments of $457.7 million. FBRT's average portfolio risk rating improved to 2.4 from 2.5 in the prior quarter. At quarter end, the Company had 12 loans on its watch list, seven of which are risk rated a four and five of which are risk rated a five.

Conduit: For the quarter ended June 30, 2026, the Company originated $78.3 million of fixed rate conduit loans and sold $249.5 million of conduit loans for a gain of $6.0 million, gross of related derivatives.

Agency Business segment: For the quarter ended June 30, 2026, the Company originated $398.8 million of new commitments under programs with Fannie Mae, Freddie Mac, and HUD and managed a servicing portfolio of $59.8 billion.

Real estate owned and equity method investments: For the quarter ended June 30, 2026, the Company had six foreclosure real estate owned positions totaling $198.7 million, one investment real estate owned position of $115.2 million, and five equity method investment positions of $89.2 million.

Allowance for credit losses: During the quarter, the Company recognized a net provision for credit losses of $7.2 million. Provision for our core portfolio was $5.2 million, comprised of a specific allowance provision of $1.5 million and a general provision of $3.7 million. Provision for our Agency Business was $2.0 million, comprised of a general provision of $2.1 million, partially offset by a benefit in the specific allowance of $0.1 million.

Book Value

As of June 30, 2026, book value was $14.24 per diluted common share on a fully converted basis(1) .

Share Repurchase Program

During the quarter ended June 30, 2026, the Company repurchased 1,838,855 shares of common stock at an average price of $8.70 per share for an aggregate of $16.0 million, which represents an $0.11 per share increase to book value.

Subsequent to quarter end, the Board of Directors reauthorized the Company's share repurchase program, again providing $50.0 million available for future share repurchases through December 31, 2026.

Subsequent Events

Subsequent to quarter end, holders of OP Units in our operating partnership redeemed 7,918,314 OP Units for an equal number of shares of the Company's common stock.

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, (vii) non-cash income from mortgage servicing rights, and (viii) certain other non-cash items. Distributable Earnings before realized losses, a non-GAAP measure, presents Distributable Earnings gross of realized gain (loss) on debt extinguishment and realized gain (loss) on loans and real estate owned. Further, Distributable Earnings to Common, a non-GAAP measure, presents Distributable Earnings net of (x) perpetual preferred stock dividend payments and (y) non-controlling interests in joint ventures.

As noted 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. Amounts may also be deemed non-recoverable if, in our determination, it is nearly certain the carrying amounts will not be collected or realized. 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, Distributable Earnings before realized losses and Distributable Earnings to Common provide meaningful information to consider in addition to the disclosed GAAP results. The Company believes Distributable Earnings, Distributable Earnings before realized losses 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 90% of its taxable income, subject to certain adjustments, and therefore believes dividends are one of the principal reasons stockholders may invest in its common stock. Further, Distributable Earnings to Common helps investors evaluate performance excluding the effects of certain transactions and GAAP adjustments that the Company does not believe are necessarily indicative of current loan portfolio performance and the Company's operations and is one of the performance metrics the Company's board of directors considers when dividends are declared.

Distributable Earnings, Distributable Earnings before realized losses 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, Distributable Earnings before realized losses 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, Distributable Earnings before Realized Losses and Distributable Earnings to Common included at the end of this release for further information.

Supplemental Information

The Company published a supplemental earnings presentation for the quarter ended June 30, 2026 on its website to provide additional disclosure and financial information. These materials can be found on the Company's website at https://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, July 30, 2026 at 9:00 a.m. ET. Participants are encouraged to pre-register for the call and webcast at https://dpregister.com/sreg/10210247/10460f4a8af. 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=QqEK5fFK. 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, 2026, FBRT had approximately $6.4 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.

About Benefit Street Partners

Benefit Street Partners is an alternative credit pioneer with $93 billion in assets under management as of March 31, 2026 (including Apera). It seeks to deliver attractive, risk-adjusted returns through its deep specialism, long-term relationships and global reach. A wholly owned subsidiary of Franklin Templeton, BSP is focused on credit. Through its disciplined, solutions-oriented approach, BSP unlocks opportunities across market cycles and geographies. The firm manages strategies spanning private debt, real estate debt, structured credit, and liquid loans. For more information, visit bspcredit.com.

About Franklin Templeton

Franklin Templeton is a trusted investment partner, delivering tailored solutions that align with clients' strategic goals. With deep portfolio management expertise across public and private markets, we combine investment excellence with cutting-edge technology. Since our founding in 1947, we have empowered clients through strategic partnership, forward-looking insights, and continuous innovation -- providing the tools and resources to navigate change and capture opportunity.

With more than $1.79 trillion in assets under management as of June 30, 2026, Franklin Templeton operates globally in more than 35 countries.

To learn more, visit franklintempleton.com and follow us on LinkedIn.

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 the United States including inflation, changing interest rates and economic contraction, the extent of any recoveries on delinquent loans, the financial stability of our borrowers and the other, risks and important factors contained and identified in the Company's filings with the Securities and Exchange Commission ("SEC"), including its Annual Report on Form 10-K for the fiscal year ended December 31, 2025 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.

 
(1) Fully Converted assumes conversion of our series of convertible preferred 
stock and OP Units along with full vesting of our outstanding equity 
compensation awards. 
(2) Excludes the impact of accumulated depreciation and amortization of real 
property and includes the impact of the fair value of our MSRs over their 
carrying value, resulting in a total adjustment of $45.7 million. 
(3) Includes $4.6 billion of principal serviced for a wholly owned subsidiary 
of the Company; related revenue is eliminated in consolidation. 
(4) Current trading price as of July 27, 2026. 
 
 
                     FRANKLIN BSP REALTY TRUST, INC. 
                       CONSOLIDATED BALANCE SHEETS 
              (In thousands, except share and per share data) 
 
                                     June 30, 2026     December 31, 2025 
                                    ---------------  --------------------- 
ASSETS 
Cash and cash equivalents            $     136,347    $         167,292 
Restricted cash                             18,664               17,889 
Investment securities, held to 
 maturity(1)                                23,356               20,483 
Commercial mortgage loans, held 
 for investment, net of allowance 
 for credit losses of $54,457 and 
 $38,302 as of June 30, 2026 and 
 December 31, 2025, 
 respectively(2)                         4,275,122            4,383,134 
Commercial mortgage loans, held 
 for sale, measured at fair 
 value(3)                                  251,842              360,718 
Real estate securities, available 
 for sale, measured at fair value, 
 amortized cost of $187,905 and 
 $151,946 as of June 30, 2026 and 
 December 31, 2025, 
 respectively(4)                           187,247              151,662 
Mortgage servicing rights, net             205,549              212,216 
Accrued interest receivable                 33,665               41,468 
Receivable for loan repayment(5)            80,337               50,619 
Prepaid expenses and other assets           37,233               45,112 
Real estate owned, net of 
 depreciation                              164,593               99,265 
Real estate owned, held for sale           115,738              198,883 
Equity method investments                   89,186               71,682 
Intangible assets, net of 
 amortization                              111,866              115,553 
Goodwill                                    92,048               92,048 
Derivative instruments, measured 
 at fair value                              12,155               11,315 
Loans eligible for repurchase                4,881               17,911 
Variable interest entity ("VIE") 
assets, measured at fair value             544,017                   -- 
                                        ----------       -------------- 
   Total assets                      $   6,383,846    $       6,057,250 
                                        ==========       ============== 
LIABILITIES AND STOCKHOLDERS' 
EQUITY 
Collateralized loan obligations      $   2,943,642    $       2,735,582 
Repurchase agreements and 
 revolving credit facilities - 
 commercial mortgage loans                 802,380            1,087,087 
Repurchase agreements - real 
 estate securities                         196,538              187,371 
Other financings                            12,865               12,865 
Unsecured debt                             185,923              185,466 
Mortgage note payable                       24,186               23,998 
Allowance for loss sharing                  19,409               19,484 
Accrued compensation                        32,878               43,662 
Liability for loans eligible for 
 repurchase                                  4,881               17,911 
Interest payable                            13,460               16,110 
Distributions payable                       22,945               38,935 
Accounts payable and accrued 
 expenses                                   15,266               18,892 
Due to affiliates                           11,322               12,054 
Derivative instruments, measured 
 at fair value                               7,477                6,951 
Other liabilities                           25,022               29,657 
VIE liabilities, measured at fair 
value                                      516,419                   -- 
                                        ----------       -------------- 
   Total liabilities                 $   4,834,613    $       4,436,025 
                                        ==========       ============== 
Commitments and Contingencies 
Redeemable convertible preferred 
stock: 
Redeemable convertible preferred 
 stock Series H, $0.01 par value, 
 20,000 authorized and 17,950 
 issued and outstanding as of June 
 30, 2026 and December 31, 2025      $      89,748    $          89,748 
                                        ----------       -------------- 
   Total redeemable convertible 
    preferred stock                  $      89,748    $          89,748 
                                        ----------       -------------- 
Equity: 
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, 2026 
 and December 31, 2025               $     258,742    $         258,742 
Common stock, $0.01 par value, 
 900,000,000 shares authorized, 
 75,436,265 and 81,553,982 shares 
 issued and outstanding as of June 
 30, 2026 and December 31, 2025, 
 respectively                                  750                  808 
Additional paid-in capital               1,540,232            1,593,365 
Accumulated other comprehensive 
 income/(loss)                                (658)                (284) 
Accumulated deficit                       (426,442)            (411,101) 
                                        ----------       -------------- 
   Total stockholders' equity        $   1,372,624    $       1,441,530 
                                        ----------       -------------- 
Non-controlling interest                    86,861               89,947 
                                        ----------       -------------- 
   Total equity                      $   1,459,485    $       1,531,477 
                                        ----------       -------------- 
   Total liabilities, redeemable 
    convertible preferred stock 
    and equity                       $   6,383,846    $       6,057,250 
                                        ==========       ============== 
 
 
____________________ 
(1)    Includes pledged assets of $23.1 million and $20.2 million as of June 
       30, 2026 and December 31, 2025, respectively. 
(2)    Includes pledged assets of $818.5 million and $855.2 million as of June 
       30, 2026 and December 31, 2025, respectively. 
(3)    Includes pledged assets of $243.4 million and $329.2 million as of June 
       30, 2026 and December 31, 2025, respectively. 
(4)    Includes pledged assets of $187.2 million and $151.7 million as of June 
       30, 2026 and December 31, 2025, respectively. 
(5)    Includes $80.2 million and $50.5 million of cash held by servicer 
       related to the CLOs as of June 30, 2026 and December 31, 2025, 
       respectively. 
 

The accompanying notes are an integral part of these unaudited consolidated financial statements.

 
                         FRANKLIN BSP REALTY TRUST, INC. 
                      CONSOLIDATED STATEMENTS OF OPERATIONS 
                 (In thousands, except share and per share data) 
 
                          Three Months Ended June 
                                    30,               Six Months Ended June 30, 
                         --------------------------  ---------------------------- 
                             2026          2025          2026          2025 
                          ----------    ----------    ----------    ---------- 
Income 
   Interest income       $    97,187   $   111,171   $   189,436   $   225,079 
   Less: Interest 
    expense                   67,261        70,213       132,491       140,806 
                          ----------    ----------    ----------    ---------- 
   Net interest income        29,926        40,958        56,945        84,273 
   Gain/(loss) on 
    sales, including 
    fee-based services, 
    net                       15,775           264        37,105         5,303 
   Mortgage servicing 
    rights                     3,917            --        10,659            -- 
   Servicing revenue, 
    net                        9,658            --        20,208            -- 
   Gain/(loss) on 
    derivatives                  480          (217)        2,334          (335) 
   Revenue from real 
    estate owned               5,538         8,336        12,420        15,133 
                          ----------    ----------    ----------    ---------- 
   Total income          $    65,294   $    49,341   $   139,671   $   104,374 
                          ----------    ----------    ----------    ---------- 
Expenses 
   Compensation and 
    benefits             $    20,969   $        --   $    43,793   $        -- 
   Asset management and 
    subordinated 
    performance fee            5,969         5,537        12,023        12,092 
   Acquisition expenses          415           175           586           474 
   Administrative 
    services expenses          2,028         3,884         4,362         7,232 
   Professional fees           7,241         4,698        16,526        11,274 
   Other expenses             12,030        11,569        23,235        21,505 
   Depreciation and 
    amortization               1,983         1,381         5,403         2,761 
   Share-based 
    compensation               2,457         2,316         4,860         4,562 
                          ----------    ----------    ----------    ---------- 
   Total expenses        $    53,092   $    29,560   $   110,788   $    59,900 
                          ----------    ----------    ----------    ---------- 
Other income/(loss) 
   (Provision)/benefit 
    for credit losses    $    (7,235)  $     1,487   $   (18,626)  $     3,385 
   Realized gain/(loss) 
    on real estate 
    securities, 
    available for sale            --           113            --           113 
   Realized gain/(loss) 
    on extinguishment 
    of debt                     (933)           --          (933)           -- 
   Gain/(loss) on other 
    real estate 
    investments                7,705         2,684         3,229           452 
   Income/(loss) from 
    equity method 
    investments                1,345           181        13,752           181 
   Change in net assets 
    of consolidated 
    VIE, CMBS trust              296            --           296            -- 
                          ----------    ----------    ----------    ---------- 
   Total other 
    income/(loss)        $     1,178   $     4,465   $    (2,282)  $     4,131 
                          ----------    ----------    ----------    ---------- 
   Income/(loss) before 
    taxes                     13,380        24,246        26,601        48,605 
   (Provision)/benefit 
    for income tax             2,895           138         1,966          (516) 
                          ----------    ----------    ----------    ---------- 
Net income/(loss)        $    16,275   $    24,384   $    28,567   $    48,089 
                          ----------    ----------    ----------    ---------- 
Net (income)/loss 
 attributable to 
 non-controlling 
 interest                       (706)       (1,183)       (1,018)         (830) 
                          ----------    ----------    ----------    ---------- 
Net income/(loss) 
 attributable to 
 Franklin BSP Realty 
 Trust, Inc.             $    15,569   $    23,201   $    27,549   $    47,259 
                          ----------    ----------    ----------    ---------- 
   Less: Preferred 
    stock dividends            5,916         6,748        11,832        13,496 
                          ----------    ----------    ----------    ---------- 
Net income/(loss) 
 applicable to common 
 stock                   $     9,653   $    16,453   $    15,717   $    33,763 
                          ==========    ==========    ==========    ========== 
 
Basic earnings per 
 share                   $      0.12   $      0.19   $      0.19   $      0.40 
Diluted earnings per 
 share                   $      0.12   $      0.19   $      0.19   $      0.40 
Basic weighted average 
 shares outstanding       76,367,888    82,181,403    78,137,174    82,117,897 
Diluted weighted 
 average shares 
 outstanding              84,753,839    82,181,403    86,523,125    82,117,897 
 
 
                            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, Distributable Earnings before Realized Losses and Distributable Earnings to 
Common for the three and six months ended June 30, 2026 and 2025 (amounts in thousands, 
except share and per share data): 
 
                           Three Months Ended June 30,      Six Months Ended June 30, 
                          ------------------------------  ------------------------------ 
                             2026            2025            2026            2025 
                           ---------       ---------       ---------       --------- 
GAAP Net Income (Loss)    $   16,275      $   24,384      $   28,567      $   48,089 
Adjustments: 
Unrealized (gain)/loss 
 on financial 
 instruments(1)               (6,473)         (2,531)         (3,283)            757 
Subordinated performance 
 fee(2)                           --            (791)             --            (540) 
Non-cash compensation 
 expense                       3,435           2,316           6,496           4,562 
Depreciation and 
 amortization, net             1,939           1,381           5,313           2,761 
Transaction-related and 
 non-recurring items(3)           --           1,847              --           4,821 
(Reversal of)/provision 
 for credit losses             7,235          (1,487)         18,626          (3,385) 
(Gain) / loss on debt 
 extinguishment 
 reversal                        933              --             933              -- 
Income from mortgage 
 servicing rights             (3,917)             --         (10,659)             -- 
Amortization and 
 write-offs of MSRs           11,268              --          20,269              -- 
Deferred tax adjustment         (296)             --             392              -- 
Fair value adjustments 
 on equity 
 investments(4)                 (202)             --         (10,607)             -- 
                           ---------       ---------       ---------       --------- 
Distributable Earnings 
 before realized 
 gain/(loss)              $   30,197      $   25,119      $   56,047      $   57,065 
Realized gain / (loss) 
 on debt extinguishment         (933)             --            (933)             -- 
Realized gain/(loss) 
 adjustment on loans and 
 REO(5)                         (962)          3,886         (13,269)        (34,294) 
                           ---------       ---------       ---------       --------- 
Distributable Earnings    $   28,302      $   29,005      $   41,845      $   22,771 
7.5% series E cumulative 
 redeemable preferred 
 stock dividend               (4,842)         (4,842)         (9,684)         (9,684) 
Noncontrolling interests 
 net (income) / loss            (706)         (1,183)         (1,018)           (830) 
Noncontrolling interests 
 net (income) / loss DE 
 adjustments                     622           1,094             848             744 
                           ---------       ---------       ---------       --------- 
Distributable Earnings 
 to Common                $   23,376      $   24,074      $   31,991      $   13,001 
                           =========       =========       =========       ========= 
Average common stock & 
 common stock 
 equivalents(6)            1,297,442       1,324,424       1,319,051       1,331,629 
GAAP net income/(loss) 
 ROE                             3.3%            5.5%            2.7%            5.6% 
Distributable earnings 
 ROE                             7.2%            7.3%            4.9%            2.0% 
GAAP net income/(loss) 
 per share, diluted       $     0.12      $     0.19      $     0.19      $     0.40 
GAAP net income/(loss) 
 per share, fully 
 converted(7)             $     0.13      $     0.21      $     0.21      $     0.42 
Distributable earnings 
 per share, fully 
 converted(7)             $     0.25      $     0.27      $     0.34      $     0.15 
Distributable earnings 
 per share before 
 realized gain/(loss), 
 fully converted(7)       $     0.28      $     0.23      $     0.49      $     0.53 
 
 
________________________ 
(1)    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. 
(2)    Represents accrued and unpaid subordinated performance fee. In 
       addition, reversal of subordinated performance fee represents cash 
       payment obligations in the quarter. 
(3)    Represents transaction-related and non-recurring costs associated with 
       the acquisition of NewPoint. 
(4)    Represents non-cash (income) loss from equity method investments, net 
       of cash received as return on capital for the quarter. 
(5)    Represents amounts deemed nonrecoverable upon a realization event, 
       which 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. 
       Amounts may also be deemed non-recoverable if, in our determination, it 
       is nearly certain the carrying amounts will not be collected or 
       realized upon sale. Amount may be different than the GAAP basis. As of 
       June 30, 2026, the Company has $10.0 million of GAAP gain adjustments 
       and $4.6 million of GAAP loss adjustments that would run through 
       distributable earnings if and when cash gains or losses are realized. 
(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 OP units along with full vesting of our outstanding 
       equity compensation awards. 
 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260729823627/en/

 
    CONTACT:    Investor Relations contact 

Lindsey Crabbe

l.crabbe@bspcredit.com

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