[Management View]
Franklin BSP Realty Trust emphasized the significant impact of the NewPoint acquisition, which contributed $9.3 million to distributable earnings and drove record origination volumes. The integration of NewPoint is progressing well, with management focused on leveraging expanded capabilities to enhance earnings and book value.

[Outlook]
The company anticipates incremental earnings growth beginning in early 2026, supported by strategic asset recycling and enhanced origination capacity from a recent $1.1 billion CRE CLO issuance. Management is optimistic about achieving dividend coverage and is focused on playing offense as integration proceeds.

[Financial Performance]
Franklin BSP Realty Trust reported GAAP net income of $17.6 million, or $0.13 per share, and distributable earnings of $26.7 million, or $0.22 per share. The book value per share decreased to $14.29, attributed to dividend under coverage and the NewPoint acquisition.

[Q&A Highlights]
Question 1: Matthew Erdner inquired about the factors leading to higher origination volumes and expectations for Q4.
Answer: Michael Comparato explained that the company has been able to convert loans into CMBS products with less competition, and if market conditions hold, Q4 could be a strong quarter for the CMBS group. The company is exploring alternative investments while actively originating in its core business.

Question 2: Erdner asked about future compensation and benefits expenses.
Answer: Jerome S. Baglien noted that these expenses are variable and tied to volume, with potential scaling throughout the year based on performance targets.

Question 3: Timothy Agostino questioned the pace of loan repayments and core portfolio target size.
Answer: Baglien indicated that repayments are expected to remain consistent, with the core portfolio targeted to stabilize between $5 and $5.5 billion.

Question 4: Chris Muller asked about NewPoint's future volume potential and margin expectations.
Answer: Comparato stated that while Q3 was a record quarter, it may not be repeatable every quarter. Margins on large transactions were slightly tighter, but overall, the integration is progressing well.

Question 5: Muller inquired about the potential impact of GSEs exiting conservatorship.
Answer: Comparato speculated that any changes would likely involve an explicit guarantee to avoid market disruption, though he remains skeptical about the speed of such developments.

[Sentiment Analysis]
Analysts expressed optimism about the company's strategic initiatives and integration progress. Management maintained a positive tone, emphasizing growth opportunities and confidence in achieving future targets.

[Quarterly Comparison]
| Key Metrics | Q3 2025 | Q2 2025 |
|------------------------------|------------------|------------------|
| GAAP Net Income | $17.6 million | Not provided |
| Distributable Earnings | $26.7 million | Not provided |
| Book Value Per Share | $14.29 | Not provided |
| Available Liquidity | $522 million | Not provided |
| Core Portfolio Size | $4.4 billion | Not provided |

[Risks and Concerns]
Key risks include dividend under coverage, legacy portfolio markdowns, and margin tightening on large transactions. The company is actively managing its watch list and REO assets to mitigate these risks.

[Final Takeaway]
Franklin BSP Realty Trust's Q3 2025 performance was marked by the successful integration of NewPoint, which significantly contributed to earnings and origination volumes. The company is strategically positioned for future growth, with enhanced origination capacity and a focus on achieving dividend coverage. While challenges remain, management's proactive approach to asset management and strategic investments is expected to drive incremental earnings growth in the coming quarters.