Franklin BSP Realty Trust Q2 net income falls, sets $1.8 mln share repurchase

Overview

• US commercial real estate debt REIT's Q2 net income fell to $16.3 mln yr/yr

• Distributable earnings per share exceeded quarterly dividend; book value per share rose to $14.24

• Company repurchased 1.8 mln shares, boosting book value per share

Outlook

• Company did not provide specific financial guidance or outlook for future quarters

Result Drivers

• SHARE REPURCHASES - Repurchase of 1.8 mln shares at an average price of $8.70 increased book value per share

• LOAN PORTFOLIO ACTIVITY - Closed $166.7 mln in new loan commitments, funded $248.4 mln, and received $457.7 mln in repayments; average portfolio risk rating improved to 2.4 from 2.5

• AGENCY BUSINESS GROWTH - Servicing portfolio grew by $1.7 bln to $59.8 bln; originated $398.8 mln of new loan commitments under Fannie Mae, Freddie Mac, and HUD programs

Company press release: ID:nBw2Ctqsna

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialized reits peer group is "buy"

• Wall Street's median 12-month price target for Franklin BSP Realty Trust Inc is $12.50, about 66% above its July 29 closing price of $7.53

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads

• July 29 - Claros Mortgage Trust Q2 net loss widens on higher credit loss provisions

• July 28 - TPG RE Finance Trust Q2 adjusted EPS misses analyst estimates

• July 28 - BrightSpire Capital posts Q2 net loss

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)