Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): October 30, 2023

Franklin BSP Realty Trust, Inc.

(Exact Name of Registrant as Specified in Its Charter)


Maryland	001-40923	46-1406086
(State or other jurisdiction	(Commission File Number)	(I.R.S. Employer
of incorporation)		Identification No.)

1345 Avenue of the Americas, Suite 32A

New York, New York 10105

(Address of principal executive offices, including zip code)

Registrant’s telephone number, including area code: (212) 588-6770

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):


o			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	FBRT	New York Stock Exchange
7.50% Series E Cumulative Redeemable Preferred Stock, par value $0.01 per share	FBRT PRE	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.02. Results of Operations and Financial Condition.

On October 30, 2023, Franklin BSP Realty Trust, Inc. (the “Company”) issued a press release and supplemental slide presentation reporting the Company’s financial results for the quarter ended September 30, 2023. Copies of the press release and supplemental slide presentation are attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively, and are incorporated herein by reference.

The information in this Item 2.02 (including Exhibits 99.1 and 99.2) shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.


						EXHIBIT INDEX
Exhibit No.						Description
99.1						Press Release dated October 30, 2023 announcing the Company’s financial results for the quarter ended September 30, 2023

99.2						Supplemental Presentation for the quarter ended September 30, 2023

104.1						Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


			FRANKLIN BSP REALTY TRUST, INC.


			By:			/s/ Jerome S. Baglien
			Name:			Jerome S. Baglien
			Title:			Chief Financial Officer, Chief Operating Officer and Treasurer

Date: October 30, 2023


Investor Relations Contact: Lindsey Crabbe l.crabbe@benefitstreetpartners.com (214) 874-2339

Franklin BSP Realty Trust, Inc. Announces Third Quarter 2023 Results

New York City, NY – October 30, 2023 – Franklin BSP Realty Trust, Inc. (NYSE: FBRT) (“FBRT” or the “Company”) today announced financial results for the quarter ended September 30, 2023.

Reported GAAP net income of $31.0 million, or $0.30 per diluted common share for the three months ended September 30, 2023, respectively, compared to $39.6 million, or $0.39 per diluted common share for the three months ended June 30, 2023, respectively.

Reported Distributable Earnings (a non-GAAP financial measure) of $42.0 million, or $0.43 per diluted common share on a fully converted basis(1) for the three months ended September 30, 2023, respectively, compared to $63.5 million, or $0.66 per diluted common share on a fully converted basis(1) for the three months ended June 30, 2023, respectively. Distributable Earnings for three months ended June 30, 2023 included approximately $15.0 million, or $0.17 per diluted common share on a fully converted basis, from the sale of the Williamsburg Hotel.

Third Quarter 2023 Summary

•Produced a third quarter GAAP and Distributable Earnings ROE (a non-GAAP financial measure) of 7.7% and 10.7%, respectively

•Book value of $15.82 per diluted common share on a fully converted basis(1), a decrease of $0.03 from the prior quarter

•Declared a third quarter common stock cash dividend of $0.355, representing a 9.0% yield on book value

•GAAP and Distributable Earnings dividend coverage of 86% and 120%, respectively

•Closed $153 million of new loan commitments at a weighted average spread of 398 basis points

•Closed BSPRT 2023-FL10 ("FL10 CRE CLO"), a $897 million managed Commercial Real Estate Collateralized Loan Obligation ("CLO") with an advance rate of 76%, weighted average interest rate of SOFR+229 and an 18 month reinvestment period(2)

•Total liquidity of $1.8 billion, which includes $411 million in cash and cash equivalents and $25 million in CLO reinvest available

•Fully disposed of the remaining $122.8 million of ARM Agency Securities and sold a real estate owned office property located in St. Louis, Missouri for $12.0 million

Richard Byrne, Chairman and Chief Executive Officer of FBRT, said, “FBRT is generating a double-digit Distributable Earnings ROE while maintaining a substantial liquidity position. We continue to view our asset allocation of nearly 80% multifamily credits as industry-leading, and that allocation should assist us in successfully navigating what are clearly difficult market conditions.”

Further commenting on the Company's results, Michael Comparato, President of FBRT, added, “We strengthened our balance sheet this quarter, issuing our tenth CRE CLO. We believe that liability structure and liquidity are paramount in times of choppy markets. Also, we continue to actively pursue new originations as the credit quality of our underwriting is currently among the best we've seen in recent years.”

Core portfolio: For the quarter ended September 30, 2023, the Company closed $153 million of new loan commitments and funded $197 million of principal balance on new and existing loans. FBRT received loan repayments of $290 million for a net decrease in our loan portfolio of $92 million in the quarter. The Company's core portfolio at the end of the quarter consisted of 145 loans with an aggregate principal balance of approximately $5.0 billion. The average loan size was approximately $34 million. Over 99% of the aggregate principal balance of FBRT's portfolio is in senior mortgage loans, with approximately 98% in floating rate loans. Approximately 78% of the portfolio is collateralized by multifamily properties. The Company's exposure to office loans is 6%. As of September 30, 2023, the

1 Fully converted per share information in this press release assumes applicable conversion of our series of outstanding convertible preferred stock into common stock and the vesting of our outstanding equity compensation awards.

2 Includes the BSPRT 2023-FL10 AS tranche (~$143 million) that we retained and that was levered to a repo counterparty in conjunction with the CLO closing for ~$104 million of debt

Company had three loans on its watch list (risk rating of four or five). Additionally, subsequent to September 30, 2023, the Company closed $138 million of new loan commitments which consisted of four loans.

Conduit: For the quarter ended September 30, 2023, the Company closed a $17 million fixed rate loan that will be sold through FBRT's conduit program. For the same period, the Company sold $34.3 million of conduit loans for a gain of $0.9 million, gross of related derivatives.

Allowance for credit losses: During the quarter, FBRT recognized an incremental provision for credit losses of approximately $2.4 million.

Financing: On July 17, 2023, the Company called all of the outstanding notes issued by BSPRT 2019-FL5 Issuer, Ltd., a wholly owned indirect subsidiary of the Company. The outstanding principal of the notes on the date of the call was $122.0 million. The Company recognized all the remaining unamortized deferred financing costs of $2.9 million recorded within the Realized gain/(loss) on extinguishment of debt line of the consolidated statements of operations.

On September 28, 2023, the Company closed the $897 million managed FL10 CRE CLO with an 18 month re-investment period, advance rate of 76% and a weighted average interest rate of SOFR+229 before accounting for discount and transaction cost(2).

Book Value

As of September 30, 2023, book value was $15.82 per diluted common share on a fully converted basis(1).

Share Repurchase Program

The Company has a $65 million share repurchase program. The Company did not repurchase any shares of FBRT's common stock during the three months ended September 30, 2023. Subsequent to September 30, 2023, the Company repurchased 137,444 shares of common stock at a weighted average cost of $12.55 per share. As of October 25, 2023, $37.5 million remains available under the $65 million share repurchase program. FBRT's Board of Directors has extended the share repurchase authorization through December 31, 2024.

Subsequent Event

Subsequent to September 30, 2023, the Company foreclosed upon one multifamily property located in Texas. The loan had an amortized cost basis of $12.0 million as of September 30, 2023.

Distributable Earnings and Run-Rate Distributable Earnings

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, derivatives and ARMs, including CECL reserves and impairments, (iii) non-cash equity compensation expense, (iv) depreciation and amortization, (v) subordinated performance fee accruals/(reversal), (vi) loan workout charges, (vii) realized gains and losses on debt extinguishment and CLO calls, and (viii) certain other non-cash items. Further, Run-Rate Distributable Earnings, a non-GAAP measure, presents Distributable Earnings before trading and derivative gain/loss on ARMs.

The Company believes that Distributable Earnings and Run-Rate Distributable Earnings provide meaningful information to consider in addition to the disclosed GAAP results. The Company believes Distributable Earnings is a useful financial metric for existing and potential future holders of its common stock as historically, over time, Distributable Earnings has been an indicator of 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 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. The Company believes Run-Rate Distributable Earnings is a useful financial metric because it presents the Distributable Earnings of its core businesses, net of the impacts of the realized trading and derivative gain/loss on the residential adjustable-rate mortgage securities acquired from Capstead Mortgage Corporation, which the Company has liquidated from its portfolio.

Distributable Earnings and Run-Rate Distributable Earnings 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 and

1 Fully converted per share information in this press release assumes applicable conversion of the Company's series of outstanding convertible preferred stock into common stock and full vesting of the Company's outstanding equity compensation awards.

2 Includes the BSPRT 2023-FL10 AS tranche (~$143 million) that we retained and that was levered to a repo counterparty in conjunction with the CLO closing for ~$104 million of debt

Run-Rate Distributable Earnings 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 and Run-Rate Distributable Earnings included at the end of this release for further information.

Supplemental Information

The Company has published a supplemental earnings presentation for the quarter ended September 30, 2023 on its website to provide additional disclosure and financial information. These materials can be found on FBRT’s website at http://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 Tuesday, October 31, 2023, at 9:00 a.m. ET. Participants are encouraged to pre-register for the call and webcast at https://dpregister.com/sreg/10182930/fa8ad39034. 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=cLosDJ7M. 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 FBRT'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 September 30, 2023, FBRT had approximately $5.9 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.

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, 2022 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.

FRANKLIN BSP REALTY TRUST, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands, except share and per share data)


	September 30, 2023		December 31, 2022
ASSETS
Cash and cash equivalents	$	411,437	$	179,314
Restricted cash	6,655		11,173
Commercial mortgage loans, held for investment, net of allowance for credit losses of $37,512 and $40,848 as of September 30, 2023 and December 31, 2022, respectively	4,913,644		5,228,928
Commercial mortgage loans, held for sale, measured at fair value	17,000		15,559
Real estate securities, trading, measured at fair value (includes pledged assets of $227,610 as of December 31, 2022)	—		235,728
Real estate securities, available for sale, measured at fair value, amortized cost of $194,171 and $220,635 as of September 30, 2023 and December 31, 2022, respectively (includes pledged assets of $153,648 and $198,429 as of September 30, 2023 and December 31, 2022, respectively)	193,072		221,025
Derivative instruments, measured at fair value	35		415

Receivable for loan repayment (1)	25,937		42,557
Accrued interest receivable	38,297		34,007
Prepaid expenses and other assets	17,501		15,795
Intangible lease asset, net of amortization	43,604		54,831
Real estate owned, net of depreciation	104,616		127,772
Real estate owned, held for sale	103,657		36,497


Total assets	$	5,875,455	$	6,203,601
LIABILITIES AND STOCKHOLDERS' EQUITY
Collateralized loan obligations	$	3,477,444	$	3,121,983
Repurchase agreements and revolving credit facilities - commercial mortgage loans	249,345		680,859
Repurchase agreements - real estate securities	240,010		440,008
Mortgage note payable	23,998		23,998
Other financings	23,669		76,301
Unsecured debt	81,270		98,695
Derivative instruments, measured at fair value	258		64
Interest payable	11,504		12,715
Distributions payable	36,224		36,317
Accounts payable and accrued expenses	16,884		17,668
Due to affiliates	16,836		15,429
Intangible lease liability, held for sale	12,297		—
Intangible lease liability, net of amortization	—		6,428
Total liabilities	$	4,189,739	$	4,530,465
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 September 30, 2023 and December 31, 2022	$	89,748	$	89,748
Redeemable convertible preferred stock Series I, $0.01 par value, none authorized and outstanding as of September 30, 2023, 1,000 authorized and 1,000 issued and outstanding as of December 31, 2022	—		5,000
Total redeemable convertible preferred stock	$	89,748	$	94,748
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 September 30, 2023 and December 31, 2022	$	258,742	$	258,742
Common stock, $0.01 par value, 900,000,000 shares authorized, 83,019,881 and 82,992,784 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively	822		826
Additional paid-in capital	1,601,282		1,602,247
Accumulated other comprehensive income (loss)	(1,099)		390
Accumulated deficit	(292,833)		(299,225)
Total stockholders' equity	$	1,566,914	$	1,562,980
Non-controlling interest	29,054		15,408
Total equity	$	1,595,968	$	1,578,388
Total liabilities, redeemable convertible preferred stock and equity	$	5,875,455	$	6,203,601

______________________________________________________________________

(1) Includes $25.9 million and $42.5 million of cash held by servicer related to the CLOs as of September 30, 2023 and December 31, 2022, respectively. The Company no longer holds a residential mortgage backed securities principal paydown receivable as of September 30, 2023. The Company held a residential mortgage backed securities principal paydown receivable of $0.1 million as of December 31, 2022.

FRANKLIN BSP REALTY TRUST, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share and per share data)

(Unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Income
Interest income	$	137,042	$	94,131	$	420,470	$	239,602
Less: Interest expense	77,973		46,157		224,347		96,262
Net interest income	59,069		47,974		196,123		143,340
Revenue from real estate owned	3,317		2,312		13,067		6,936
Total income	$	62,386	$	50,286	$	209,190	$	150,276
Expenses
Asset management and subordinated performance fee	$	7,908	$	6,430	$	24,893	$	19,776
Acquisition expenses	316		362		977		996
Administrative services expenses	3,566		3,001		10,993		9,402
Professional fees	4,153		4,074		11,761		18,287
Share-based compensation	1,255		669		3,505		1,851
Depreciation and amortization	1,513		1,295		5,514		3,886
Other expenses	2,856		1,424		9,323		4,849
Total expenses	$	21,567	$	17,255	$	66,966	$	59,047
Other income/(loss)
(Provision)/benefit for credit losses	$	(2,379)	$	599	$	(28,363)	$	(30,976)
Realized gain/(loss) on extinguishment of debt	(2,836)		—		2,201		(5,167)
Realized gain/(loss) on sale of available for sale trading securities	(486)		—		110		—
Realized gain/(loss) on sale of commercial mortgage loans, held for sale	—		9		—		48

Realized gain/(loss) on sale of commercial mortgage loans, held for sale, measured at fair value	933		4,782		3,027		4,838
Unrealized gain/(loss) on commercial mortgage loans, held for sale, measured at fair value	—		58		44		(3,678)
Gain/(loss) on other real estate investments	(4,112)		—		(7,142)		(29)
Trading gain/(loss)	(2,627)		(2,744)		(605)		(113,717)
Unrealized gain/(loss) on derivatives	(183)		1,566		(110)		(12,824)
Realized gain/(loss) on derivatives	67		(1,624)		684		57,599
Total other income/(loss)	$	(11,623)	$	2,646	$	(30,154)	$	(103,906)
Income/(loss) before taxes	29,196		35,677		112,070		(12,677)
(Provision)/benefit for income tax	1,799		(419)		2,408		(281)
Net income/(loss)	$	30,995	$	35,258	$	114,478	$	(12,958)
Net (income)/loss attributable to non-controlling interest	772		—		722		—
Net income/(loss) attributable to Franklin BSP Realty Trust, Inc.	$	31,767	$	35,258	$	115,200	$	(12,958)
Less: Preferred stock dividends	6,748		6,899		20,245		34,865

Net income/(loss) applicable to common stock	$	25,019	$	28,359	$	94,955	$	(47,823)

Basic earnings per share	$	0.30	$	0.34	$	1.14	$	(0.70)
Diluted earnings per share	$	0.30	$	0.34	$	1.14	$	(0.70)
Basic weighted average shares outstanding	82,210,624		83,665,250		82,410,725		67,965,397
Diluted weighted average shares outstanding	82,210,624		83,665,250		82,410,725		67,965,397

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 and Run-Rate Distributable Earnings as of the three and nine months ended September 30, 2023 and 2022 (amounts in thousands, except share and per share data):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
GAAP Net Income (Loss)	$	30,995	$	35,258	$	114,478	$	(12,958)
Adjustments:
CLO amortization acceleration (1)	(1,294)		(1,226)		(3,959)		(4,168)
Unrealized (gain)/loss on financial instruments (2)	4,295		(1,624)		7,208		16,498
Unrealized (gain)/loss - ARMs	—		2,742		415		37,862
(Reversal of)/Provision for credit losses	2,379		(599)		28,363		30,976
Non-Cash Compensation Expense	1,256		833		3,506		833
Depreciation and amortization	1,513		1,295		5,514		3,886
Subordinated performance fee (3)	1,579		(2,461)		3,599		(5,917)
Loan workout charges/(loan workout recoveries) (4)	—		205		(5,105)		5,105
Realized (gain)/loss on debt extinguishment / CLO call	2,836		—		(2,201)		5,167
Realized trading and derivatives (gain)/loss on ARMs	3,113		(155)		677		21,927
Run-Rate Distributable Earnings (5)	$	46,672	$	34,268	$	152,495	$	99,211
Realized Cash Gain/(Loss) Adjustment on REO	(1,571)		—		(1,571)		—
Realized trading and derivatives gain/(loss) on ARMs	(3,113)		155		(677)		(21,927)
Distributable Earnings	$	41,988	$	34,423	$	150,247	$	77,284
7.5% Cumulative Redeemable Preferred Stock, Series E Dividend	(4,842)		(4,842)		(14,525)		$	(14,525)
Noncontrolling interests in joint ventures net income/(loss)	(276)		—		(326)		—
Depreciation and amortization attributed to noncontrolling interests of joint ventures	772		—		(15)		—
Distributable Earnings to Common	$	37,642	$	29,581	$	135,381	$	62,759
Average Common Stock & Common Stock Equivalents	1,402,370		1,422,040		1,406,481		1,470,393
GAAP Net Income/(Loss) ROE	7.7%		8.6%		7.1%		(1.9)%
Run-Rate Distributable Earnings ROE	12.1%		8.3%		9.8%		5.8%
Distributable Earnings ROE	10.7%		8.3%		9.6%		4.3%
GAAP Net Income/(Loss) Per Share, Diluted	$	0.30	$	0.34	$	1.14	$	(0.70)
GAAP Net Income/(Loss) Per Share, Fully Converted (6)	$	0.30	$	0.34	$	1.12	$	(0.31)
Run-Rate Distributable Earnings Per Share, Fully Converted (6)	$	0.48	$	0.33	$	1.55	$	0.94
Distributable Earnings Per Share, Fully Converted (6)	$	0.43	$	0.33	$	1.53	$	0.70

___________________________________________________________________

(1) Adjusted for non-cash CLO amortization acceleration to effectively amortize issuance costs of our CLOs over the expected lifetime of the CLOs. We assume our CLOs will be outstanding for four years and amortized the financing costs over four years in our distributable earnings as compared to effective yield methodology in our GAAP earnings.

(2) 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.

(3) Represents accrued and unpaid subordinated performance fee. In addition, reversal of subordinated performance fee represents cash payments of the subordinated performance fee made during the period.

(4) Represents loan workout charges the Company incurred, which the Company deemed likely to be recovered. Reversal of loan workout charges represent recoveries received. During the second quarter of 2023, the Company recovered $5.1 million of loan workout charges, in aggregate, related to the loan workout charges incurred in the first, second, and third quarters of 2022 amounting to $1.9 million, $3.0 million, and $0.2 million, respectively.

(5) Distributable Earnings before realized trading and derivative gain/loss on residential adjustable-rate mortgage securities (“Run-Rate Distributable Earnings”) (a non-GAAP financial measure).

(6) Fully Converted assumes conversion of our series of convertible preferred stock and full vesting of our outstanding equity compensation awards.

Franklin BSP Realty Trust Supplemental Information Third Quarter 2023

Important Information 2 The information herein relates to the Company’s business and financial information as of September 30, 2023 and does not reflect subsequent developments. Risk Factors Investing in and owning our common stock involves a high degree of risk. See the section entitled “Risk Factors” in our Annual Report on Form 10-K filed with the SEC on March 16, 2023, and the risk disclosure in our subsequent SEC-filed periodic reports, for a discussion of these risks. Forward-Looking Statements Certain statements included in this presentation are forward-looking statements. Those statements include statements regarding the intent, belief or current expectations of Franklin BSP Realty Trust, Inc. (“FBRT” or the “Company”) and may include 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. 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, and the financial stability of our borrowers, and the other factors set forth in the risk factors section of our most recent Form 10-K and Form 10-Q. The extent to which these factors impact us and our borrowers will depend on future developments, which are highly uncertain and cannot be predicted with confidence. 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, except as required by law. Additional Important Information The summary information provided in this presentation does not purport to be complete and no obligation to update or otherwise revise such information is being assumed. Nothing shall be relied upon as a promise or representation as to the future performance of the Company. This summary is not an offer to sell securities and is not soliciting an offer to buy securities in any jurisdiction where the offer or sale is not permitted. This summary is not advice, a recommendation or an offer to enter into any transaction with us or any of our affiliated funds. There is no guarantee that any of the goals, targets or objectives described in this summary will be achieved. The information contained herein is not intended to provide, and should not be relied upon for, accounting, legal, ERISA or tax advice or investment recommendations. Investors should also seek advice from their own independent tax, accounting, financial, ERISA, investment and legal advisors to properly assess the merits and risks associated with their investment in light of their own financial condition and other circumstances. The information contained herein is qualified in its entirety by reference to our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. You may obtain a copy of the most recent Annual Report or Quarterly Report by calling (844) 785-4393 and/or visiting www.fbrtreit.com. This presentation contains information regarding FBRT’s financial results that is calculated and presented on the basis of methodologies other than in accordance with accounting principles generally accepted in the United States (“GAAP”), including Distributable Earnings and Run-Rate Distributable Earnings. Please refer to the appendix for the reconciliation of the applicable GAAP financial measures to non-GAAP financial measures. PAST PERFORMANCE IS NOT A GUARANTEE OR INDICATIVE OF FUTURE RESULTS. INVESTMENTS INVOLVE SIGNIFICANT RISKS, INCLUDING LOSS OF THE ENTIRE INVESTMENT. There is no guarantee that any of the estimates, targets or projections illustrated in this summary will be achieved. Any references herein to any of the Company’s past or present investments, portfolio characteristics, or performance, have been provided for illustrative purposes only. It should not be assumed that these investments were or will be profitable or that any future investments will be profitable or will equal the performance of these investments. There can be no guarantee that the investment objective of the Company will be achieved. Any investment entails a risk of loss. An investor could lose all or substantially all of his or her investment. Please refer to our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q for a more complete list of risk factors. The following slides contain summaries of certain financial information about the Company. The information contained in this presentation is summary information that is intended to be considered in the context of our filings with the Securities and Exchange Commission and other public announcements that we may make, by press release or otherwise, from time to time.

FBRT 3Q 2023 Financial Update 3

FBRT 3Q 2023 Financial Update: Third Quarter 2023 Highlights 4 1. Fully converted per share information assumes applicable conversion of our outstanding series of convertible preferred stock into common stock and the full vesting of our outstanding equity compensation awards. 2. Please see appendix for GAAP net income to Distributable Earnings and Run-Rate Distributable Earnings calculation. 3. Adjusted for accumulated depreciation and amortization of real property of $8.4 million and $8.0 million at 9/30/23 and 6/30/23, respectively. 4. Includes the BSPRT 2023-FL10 AS tranche (~$143 million) that we retained and that was levered to a repo counterparty in conjunction with the CLO closing for ~$104 million of debt. 5. Cash excludes restricted cash. Total liquidity amount includes the cash available we can invest at a market advance rate utilizing our available capacity on financing lines. Earnings ― GAAP Net Income of $31.0 million and $0.30 per diluted common share and $0.30 per fully converted share (1) ― Distributable Earnings (2) of $42.0 million and $0.43 per fully converted share (1) ― Declared a cash dividend of $0.355 per share, representing a yield of 9.0% on book value per share, fully converted (1). GAAP and Distributable Earnings (2) dividend coverage of 86% and 120%, respectively Capitalization ― Book value per share, fully converted is $15.82 vs. $15.85 last quarter (1). Undepreciated book value per share, fully converted is $15.91 vs. $15.94 last quarter (1), (3) ― Net debt to equity is 2.2x; recourse net debt to equity is 0.1x ― 90% of financing sources are non-mark-to-market on our core book ― Closed BSPRT 2023-FL10 in September 2023, a $897 million managed CLO with an advance rate of 76%, weighted average interest rate of S+229 and an 18-month reinvestment period (4) ― $1.8 billion of liquidity of which $411 million is cash and $25 million is CLO reinvest available (5) Investments ― Core portfolio: closed $153 million of new loan commitments and funded $197 million of principal balance including future funding on existing loans. Received loan repayments of $290 million for a net decrease in our loan portfolio of $92 million in the quarter Portfolio ― Core portfolio of 145 CRE loans and $5.0 billion of principal balance, average size of $34 million and 78% multifamily. During the quarter, two assets were removed from the watch list. Three assets remain on the watch list at quarter-end

FBRT 3Q 2023 Financial Update: QTD Highlights 5 Note: All numbers in millions except per share and share data. 1. Does not include conduit operating expenses which are reported under Other income / (loss). 2. Please see appendix for the detail on the adjustments from GAAP net income to Distributable Earnings and Run Rate Distributable Earnings. 3. Fully converted per share information assumes applicable conversion of our outstanding series of convertible preferred stock into common stock and the full vesting of our outstanding equity compensation awards. 4. Includes $90 million of preferred equity that converts to common equity on 1/19/24, subject to the holder's right to accelerate the conversion. These amounts are reflected as temporary equity on the consolidated balance sheets. The remaining $259 million of preferred equity represents the E class, which does not convert to common equity. 5. Includes non-controlling interest. Income Statement Balance Sheet - Assets (End of Quarter) Net interest income / other income $62.6 Total core portfolio $4,913.6 Operating expenses (1) (19.2) Total real estate securities $193.1 Trading and derivatives gain/(loss) on ARMs/Securities (3.1) Cash and restricted cash $418.1 Provision for credit loss / CLO call (5.2) CLO reinvestment available $24.5 Other income/(loss) (4.0) Other assets $326.1 GAAP net income (loss) $31.0 Total assets $5,875.5 Adjustments to GAAP net income (loss) (2) 11.0 Distributable Earnings (2) $42.0 Balance Sheet - Debt & Equity Realized trading and derivatives (gain)/loss on ARMs / Realized Cash Loss Adjustment on REO 4.7 Collateralized loan obligations 3,477.4 Run-Rate Distributable Earnings (2) $46.7 Warehouse 249.3 Run-Rate Distributable Earnings per share, fully converted (2),(3) $0.48 Repo - securities 240.0 Run-Rate Distributable Earnings return on common equity (2) 12.1% Asset specific financings 47.7 Unsecured debt 81.3 GAAP net income (loss) per share, fully converted (3) $0.30 Total Debt $4,095.7 GAAP return on common equity 7.7% Preferred equity (4) 348.5 GAAP dividend coverage, fully converted (2), (3) 85.8% Common stock/retained earnings (5) 1,337.2 Total equity (4), (5) 1,685.7 Distributable Earnings per share, fully converted (2), (3) $0.43 Book value per share, fully converted (3) $15.82 Distributable Earnings return on common equity (2) 10.7% Distributable Earnings dividend coverage, fully converted (2), (3) 119.9% Net debt/total equity 2.18x Recourse net debt/total equity 0.12x Dividend per share $0.355 Dividend per share yield on book value 9.0%

FBRT 3Q 2023 Financial Update: Earnings and Distributions 6 Note: All numbers in millions except per share data. 1. Please see appendix for GAAP net income to Distributable Earnings calculation. 2. Fully converted per share information assumes applicable conversion of our outstanding series of convertible preferred stock into common stock and the full vesting of our outstanding equity compensation awards. 3. In Q2 2023, the sale of the Williamsburg Hotel loan accounted for approximately $15.0 million of Distributable Earnings. GAAP Net Income (Loss) ($M)Distributable Earnings ($M) (1) $27.2 $43.8 $39.6 $31.0 4Q'22 1Q'23 2Q'23 3Q'23 $38.8 $44.8 $63.5 $42.0 4Q'22 1Q'23 2Q'23 3Q'23 $0.355 $0.355 $0.355 $0.355 Dividend per share $0.37 $0.44 $0.66 $0.43 Distributable earnings per share, fully converted (1), (2) 104% 125% 185% 120% Distributable dividend coverage, fully converted (1), (2) Williamsburg Hotel Sale $15.0 (3)

FBRT 3Q 2023 Financial Update: Core Loan Originations 7 Note: All numbers in millions. Numbers in charts above represent principal balance. 1. As of September 30, 2023, future funding remaining on the loans outstanding was $388 million. 2. Includes full paydowns, dispositions, partial paydowns and amortization. (1) 3Q 2023 ($M) YTD 2023 ($M) (1) (2) (2)

FBRT 3Q 2023 Financial Update: Capitalization Overview 1. On our core book (excluding repo-securities), 90% of financings are non-mark-to-market. 8 Collateralized Loan Obligations 85% Warehouse 6% Repo - Securities 6% Asset Specific Financings 1% Unsecured Debt 2% Financing Sources (1) FBRT average debt cost including financing costs was 7.7% in 3Q23 vs. 7.3% last quarter Net Leverage $4.1Bn Total Debt 0.12x 2.18x 0.00x 0.50x 1.00x 1.50x 2.00x 2.50x Recourse Leverage Total Leverage

FBRT 3Q 2023 Financial Update: Financing Detail 9 1. Outstanding balance at September 30, 2023 and net of tranches held by FBRT. 2. Cost of debt is shown before discount and transaction costs. 3. Cost of debt includes the BSPRT 2023-FL10 AS tranche (~$143 million) that we retained and that was levered to a repo counterparty in conjunction with the CLO closing for ~$104 million of debt. 4. Commitment for loans. Excludes bond repurchase agreements. CLO Name Debt Amount (1) Reinvest End Date Cost of Debt BSPRT 2019-FL5 Called 3Q23 n/a n/a BSPRT 2021-FL6 $583 million 10/6/23 S + 1.42% BSPRT 2021-FL7 $720 million 1/8/24 S + 1.64% BSPRT 2022-FL8 $960 million 3/8/24 S + 1.72% BSPRT 2022-FL9 (2) $671 million 7/8/24 S + 2.80% BSPRT 2023-FL10 (2), (3) $574 million 4/8/25 S + 2.29% Total $3,508 million CLO reinvestment available $25 million Repo – Securities (outstanding) $240 million Name Commitment (4) Barclays (Warehouse) $500 million Wells Fargo $500 million JP Morgan $500 million Atlas SP Partners $600 million Barclays (Secured Revolver) $250 million Webster Bank loan participation $24 million Total $2,374 million CLOs Warehouse/Revolver/Other

FBRT 3Q 2023 Financial Update: Liquidity 10Note: All numbers in millions. 1. Represents cash available we can invest at a market advance rate utilizing our available capacity on financing lines. Liquidity ($M) (1)

Portfolio 11

Portfolio: Core Loan Portfolio Composition 12 1. Regions included: New England, Plains, Rocky Mountain. Mezzanine 0.4% Senior 99.6% Southeast 43% Southwest 38% Mideast 9% Great Lakes 3% Far West 2% Various(1) 5% Floating 98% Fixed 2% Portfolio Summary Collateral Summary Collateral by Region Rate Type Portfolio Overview − $5.0 billion total portfolio − 139 senior loans; average size of ~$36 million − 6 mezzanine loans; average size of ~$3 million − Three non-performing loans Multifamily 78% Hospitality 12% Office 6% Industrial 2% Retail 1% Other 1% Collateral by State Texas 33% North Carolina 13% Florida 11% Georgia 6% Various 5% South Carolina 5% Arizona 5% New York 3% All Other 19%

Portfolio: Core Originations in the Quarter 13Note: All numbers in millions. Charts shown above are based on the initial funding/unpaid principal balance of the newly originated loans. 1. All-in coupon based on the 1- month SOFR index as of 9/30/23. − 4 loans; $153 million total commitment ($134 million of initial funding / $19 million of future funding) − 3.98% weighted average spread; 9.30% all-in coupon(1). 1.0% and 0.3% weighted average origination and exit fees, respectively By Collateral By Region By State Overview Texas 58%Florida 33% Georgia 9% Multifamily 58% Hospitality 26% Manufactured Housing 16% Southwest 58% Southeast 42%

Portfolio: Core Portfolio - Case Studies: Watch List Loans (Risk Rating 4&5) 14 Post quarter-end update: − 16-Building Apartment Complex: Foreclosed on property in October 2023. Investment CBD Office Building Suburban Office Park 16-Building Apartment Complex Loan Type Floating Rate Senior Loan Floating Rate Senior Loan Floating Rate Senior Loan Investment Date Q1 2021 Q4 2019 Q1 2021 Default Date None None Q3 2023 Non-Accrual No No Yes Collateral 31-Story, 299k Square Foot Office Building Two, 6-Story Office Buildings 236-Unit Apartment Complex with 16 Buildings Loan Purpose Refinance Acquisition Acquisition Location Denver, Colorado Alpharetta, Georgia Lubbock, Texas Loan Risk Rating 4 4 4

Portfolio: Foreclosure Real Estate Owned (“REO”) 15Note: Foreclosure REO is $110 million of net book value. In addition, FBRT owns an investment REO with a total net book value of $130 million, which is not presented above. Investment Single Tenant Retail Portfolio CBD Office Complex Loan Investment Date Q2 2022 Q1 2020 Foreclosure / Deed-In-Lieu Date Q4 2022 - Q2 2023 Q3 2023 Collateral Type Retail Office Collateral Detail 23 Freestanding Retail Properties 124k Square Foot Office Complex Location Various Portland, Oregon Post quarter-end update: − 16-Building Apartment Complex: Foreclosed on property in October 2023 (detail is provided on previous slide).

Appendix 16

Appendix: Core Portfolio - FBRT Portfolio Details – Top 15 Loans 17 Note: All numbers in millions. 1. All-in Yield defined as: (1) current spread of the loan plus (2) any applicable index or index floor plus (3) origination and exit fees amortized over the initial maturity date of the loan. 2. As-is loan to value percentage is from metrics at origination. Predevelopment construction loans at origination will not have an LTV and therefore is nil. Loan Type Origination Date Current Total Commitment Principal Balance Carrying Value Spread All-in Yield (1) Fully Extended Maturity State Collateral Type As-is LTV (2) Loan 1 Senior Loan 5/26/21 $155 $151 $150 + 4.55% 10.32% 6/9/26 Florida Multifamily 47.8% Loan 2 Senior Loan 6/1/22 153 146 145 + 3.95% 9.76% 6/9/27 Various Multifamily 67.8% Loan 3 Senior Loan 2/9/23 120 120 120 + 4.90% 10.89% 2/9/28 Various Hospitality 53.6% Loan 4 Senior Loan 2/25/22 86 86 86 + 3.24% 9.05% 3/9/26 New Jersey Multifamily 60.0% Loan 5 Senior Loan 2/24/22 86 86 85 + 3.15% 9.20% 3/9/27 North Carolina Multifamily 69.6% Loan 6 Senior Loan 6/1/22 86 84 84 + 3.95% 9.76% 6/9/27 North Carolina Multifamily 71.8% Loan 7 Senior Loan 2/10/22 82 82 82 + 3.20% 8.89% 2/9/27 Florida Multifamily 74.5% Loan 8 Senior Loan 12/15/21 84 81 81 + 3.21% 8.77% 1/9/27 North Carolina Multifamily 76.1% Loan 9 Senior Loan 12/21/21 79 78 78 + 3.45% 8.97% 1/9/27 Florida Multifamily 78.8% Loan 10 Senior Loan 8/1/23 80 78 78 + 3.20% 9.01% 8/9/28 Texas Multifamily 58.7% Loan 11 Senior Loan 3/31/21 79 76 76 + 2.95% 8.58% 4/9/26 Texas Multifamily 72.6% Loan 12 Senior Loan 5/18/22 71 71 71 + 3.80% 9.60% 6/9/27 Georgia Multifamily 77.9% Loan 13 Senior Loan 9/20/21 70 70 69 + 3.25% 9.17% 10/9/26 South Carolina Multifamily 77.1% Loan 14 Senior Loan 6/14/22 71 69 69 + 3.45% 9.57% 6/9/27 Georgia Multifamily 71.6% Loan 15 Senior Loan 10/29/21 70 68 68 + 2.85% 8.70% 11/9/26 Texas Multifamily 70.6% Loans 16 - 145 Senior & Mezz Loans Various 3,977 3,616 3,609 + 3.85% 9.68% Various Various Various 65.9% CECL Reserve (43) Total/Wtd. avg. $5,347 $4,961 $4,908 + 3.80% 9.63% 3.1 years 66.2% Average Loan Size $37 $34 $34

Appendix: Core Portfolio - Risk Ratings 18 Note: Principal balance in millions. Average risk rating was 2.2 for the quarter vs. 2.2 last quarter Risk Rating # of Loans - 115 27 3 - + vs 2Q23 - +4 +9 - - - vs 2Q23 -2 -16 -4 -1 -1 +/- vs 2Q23 -2 -12 +5 -1 -1 Principal Balance $- $4,081 $797 $83 $- Non-Accrual - - 2 1 - 0.0% 82.3% 16.1% 1.7% 0.0% 1 2 3 4 5

Appendix: Earnings Sensitivity 19 Note: Reflects illustrative earnings impact of an increase in the floating-rate indices referenced by our portfolio, assuming no change in credit spreads, portfolio composition or asset performance. Positive earnings correlation to rising rates ($0.05) $0.00 $0.05 $0.11 $0.16 $0.22 -0.50% 9/30/2023 +0.50% +1.00% +1.50% +2.00% Change in Floating Base Rate Indices Sensitivity on Index Rates (Annual EPS Impact)As of 10/26/23: 1M SOFR: 5.33% As of 9/30/23 1M SOFR = 5.32%

Appendix: Rate Cap Sensitivity 20Note: The above analysis assumes fixed rates loan have rate caps that are always active and do not expire. 1. Loans without rate caps includes loans that previously had rate caps, but have expired as of 9/30/23. 90%; 130 91%; 132 93%; 135 Current (as of 9/30/23) +0.50% +1.00% Change in Floating Base Rate Indices All loans with rate caps are activated at +1.00% and above 93% of our loans have a rate cap (average of 2.6% rate cap) and 90% were activated as of 9/30/23 Percentage and Number of Loans with Rate Caps Activated loans loans loans

Appendix: Core Portfolio – Fully Extended Maturities 21 Fully Extended Maturity by Year Note: All numbers in millions. Excludes loans on non-accrual and loans in maturity default at 9/30/23. $23 $214 $395 $1,960 $1,950 $333 4Q23 2024 2025 2026 2027 2028

Appendix: Core Portfolio – Allowance For Loan Loss 22 Note: All numbers in millions. Allowance for loan loss above includes future funding. Allowance for Loan Loss by Collateral Type Multifamily 83% Hospitality 15% Office 1% Other 1% $ millions Allowance for Loan Loss Balance at 6/30/23 - General Reserve $40.2 Provision for Credit Loss - General Reserve 2.8 Allowance for Loan Loss Balance at 9/30/23 - Before Asset-Specific Reserve $42.9 Asset-Specific Reserve at 6/30/23 - Provision / (Benefit) for Credit Loss - Asset-Specific (0.4) Allowance for Loan Loss Balance at 9/30/23 - Including Asset-Specific Reserve $42.5 Cost Recovery at 9/30/23 - Asset-Specific 0.4 Allowance for Loan Loss Balance at 9/30/23 - After Cost Recovery $42.9 Portfolio Principal Balance $4,961 Total Allowance for Loan Loss % of Portfolio 0.9%

Appendix: Segment Reporting Summary 23 Note: All numbers in thousands except share and per share data. “nm” represents not meaningful. 1. Please see appendix for the detail on the adjustments from GAAP net income to Distributable Earnings and Run Rate Distributable Earnings. 2. Includes the real estate debt and other real estate investments segment, TRS segment and real estate owned segment. The preferred E dividend is subtracted from the earnings for the earnings per share and return on common equity calculations. 3. Fully converted per share information assumes applicable conversion of our outstanding series of convertible preferred stock into common stock and the full vesting of our outstanding equity compensation awards. Nominal ($000s) Weighted Average Shares Outstanding, Fully Converted (3) Earnings Per Share, Fully Converted (3) Daily Average Common Equity ($000s) Return on Common Equity GAAP Net Income (Loss) $30,995 88,390,522 $0.30 $1,402,370 7.7% Run-Rate Distributable Earnings (1) $46,671 88,390,522 $0.48 $1,402,370 12.1% Distributable Earnings (1) $41,988 88,390,522 $0.43 $1,402,370 10.7% GAAP Net Income (Loss): Core (2) 32,563 84,739,450 $0.34 1,344,443 8.5% Securities (1,568) 3,651,072 ($0.43) 57,926 (10.8%) Total $30,995 88,390,522 $0.30 $1,402,370 7.7% Run-Rate Distributable Earnings: (1) Core (2) 45,193 84,739,450 $0.48 1,344,443 12.2% Securities 1,478 3,651,072 $0.40 57,926 10.2% Total $46,671 88,390,522 $0.48 $1,402,370 12.1% Distributable Earnings: (1) Core (2) 43,623 84,739,450 $0.46 1,344,443 11.7% Securities (1,635) 3,651,072 ($0.45) 57,926 (11.3%) Total $41,988 88,390,522 $0.43 $1,402,370 10.7%

Appendix: GAAP Net Income to Distributable Earnings Reconciliation 24 Note: All numbers in millions except share and per share data. 1. Adjusted for non-cash CLO amortization acceleration to effectively amortize issuance costs of our CLOs over the expected lifetime of the CLOs. We assume our CLOs will be outstanding for four years and amortized the financing costs over four years in our distributable earnings as compared to effective yield methodology in our GAAP earnings. 2. 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, (iii) derivatives, and (iv) ARMs. 3. Represents accrued and unpaid subordinated performance fee. In addition, reversal of subordinated performance fee represents cash payments of the subordinated performance fee made during the period. 4. Represents loan workout charges the Company incurred, which the Company deemed likely to be recovered. Reversal of loan workout charges represent recoveries received. During the second quarter of 2023, the Company recovered $5.1 million of loan workout charges, in aggregate, related to the loan workout charges incurred in the first, second, and third quarters of 2022 amounting to $1.9 million, $3.0 million, and $0.2 million, respectively. 5. Equal to Distributable Earnings excluding the realized trading and derivatives gain/loss on ARMs and realized cash gain/loss adjustment on REO. 6. Represents the actual realized cash loss on REO investments, which may be different than the GAAP basis. 7. Distributable Earnings to common is net of preferred equity E class dividend payment and non-controlling interests in joint ventures. 8. Represents the average of all equity except the preferred equity E class. 9. Fully converted per share information assumes applicable conversion of our outstanding series of convertible preferred stock into common stock and the full vesting of our outstanding equity compensation awards. 10. Calculated as GAAP net income less preferred dividend on preferred equity E class and non-controlling interests in joint ventures or Distributable Earnings to Common divided by fully converted weighted average shares outstanding. 4Q'22 1Q'23 2Q'23 3Q'23 GAAP Net Income (Loss) 27.2 43.8 39.6 31.0 Adjustments: CLO Amortization Acceleration (1) (1.4) (1.5) (1.2) (1.3) Unrealized (Gain) / Loss (2) 6.2 0.6 2.7 4.3 Subordinated Performance Fee (3) (2.5) (0.6) 2.6 1.6 Non-Cash Compensation Expense 2.7 1.0 1.2 1.3 Depreciation & Amortization 1.5 1.8 2.2 1.5 (Reversal of) / Provision for Credit Loss 5.1 4.4 21.6 2.4 Loan Workout Charges / (Loan Workout Recoveries) (4) - - (5.1) - Realized (Gain) / Loss on Debt Extinguishment / CLO Call - (4.8) (0.3) 2.8 Realized Trading and Derivatives (Gain) / Loss on ARMs (0.2) (2.2) (0.2) 3.1 Run-Rate Distributable Earnings (5) 38.6 42.5 63.3 46.7 Realized Cash Gain/(Loss) Adjustment on REO (6) - - - (1.6) Realized Trading and Derivatives Gain / (Loss) on ARMs 0.2 2.2 0.2 (3.1) Distributable Earnings 38.8 44.8 63.5 42.0 Preferred Equity E Class Dividend (4.8) (4.8) (4.8) (4.8) Depreciation and Amortization Attributed to Noncontrolling Interests of Joint Ventures (1.4) (0.4) (0.4) 0.8 Noncontrolling Interests in Joint Ventures Net (Income) / Loss 0.2 (0.0) (0.0) (0.3) Distributable Earnings to Common (7) 32.8 39.6 58.2 37.6 Average Common Stock & Common Stock Equivalents (8) 1,416.7 1,422.6 1,413.5 1,402.4 GAAP Net Income (Loss) ROE 6.4% 11.0% 9.8% 7.7% Run-Rate Distributable Earnings ROE 9.2% 10.5% 16.4% 12.1% Distributable Earnings ROE 9.2% 11.1% 16.5% 10.7% GAAP Net Income / (Loss) Earnings Per Share, Diluted $0.25 $0.44 $0.39 $0.30 Fully Converted Weighted Average Shares Outstanding (9) 88,704,093 88,916,252 88,421,116 88,390,522 GAAP Net Income / (Loss) Earnings Per Share, Fully Converted (10) $0.25 $0.44 $0.39 $0.30 Run-Rate Distributable Earnings Per Share, Fully Converted (10) $0.37 $0.42 $0.66 $0.48 Distributable Earnings Per Share, Fully Converted (10) $0.37 $0.44 $0.66 $0.43

Appendix: Book Value Per Share & Shares Outstanding 25 Note: All numbers in thousands except per share and share data. Preferred stock values expressed in common stock equivalents. 1. Fully-converted book value per share reflects full conversion of our Series H and Series I convertible preferred stock and vesting of our outstanding equity compensation awards. 2. Excluding the amounts for accumulated depreciation and amortization of real property of $8.4 million and $5.2 million as of September 30, 2023 and December 31, 2022, respectively, would result in a fully-converted book value per share of $15.91 and $15.84 as of September 30, 2023 and December 31, 2022, respectively. September 30, 2023 December 31, 2022 Stockholders' equity applicable to convertible common stock $ 1,397,920 $ 1,398,986 Shares: Common stock 82,210,624 82,479,743 Equity compensation awards (restricted stock) 809,257 513,041 Series H convertible preferred stock 5,370,498 5,370,640 Series I convertible preferred stock — 299,200 Total outstanding 88,390,379 88,662,624 Fully-converted book value per share (1) (2) $ 15.82 $ 15.78

26 Appendix: FBRT Income Statement Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Income Interest income $ 137,042 $ 94,131 $ 420,470 $ 239,602 Less: Interest expense 77,973 46,157 224,347 96,262 Net interest income 59,069 47,974 196,123 143,340 Revenue from real estate owned 3,317 2,312 13,067 6,936 Total income $ 62,386 $ 50,286 $ 209,190 $ 150,276 Expenses Asset management and subordinated performance fee $ 7,908 $ 6,430 $ 24,893 $ 19,776 Acquisition expenses 316 362 977 996 Administrative services expenses 3,566 3,001 10,993 9,402 Professional fees 4,153 4,074 11,761 18,287 Share-based compensation 1,255 669 3,505 1,851 Depreciation and amortization 1,513 1,295 5,514 3,886 Other expenses 2,856 1,424 9,323 4,849 Total expenses $ 21,567 $ 17,255 $ 66,966 $ 59,047 Other income/(loss) (Provision)/benefit for credit losses $ (2,379) $ 599 $ (28,363) $ (30,976) Realized gain/(loss) on extinguishment of debt (2,836) — 2,201 (5,167) Realized gain/(loss) on sale of available for sale trading securities (486) — 110 — Realized gain/(loss) on sale of commercial mortgage loans, held for sale 933 9 3,027 48 Realized gain/(loss) on sale of commercial mortgage loans, held for sale, measured at fair value — 4,782 — 4,838 Unrealized gain/(loss) on commercial mortgage loans, held for sale, measured at fair value — 58 44 (3,678) Gain/(loss) on other real estate investments (4,112) — (7,142) (29) Trading gain/(loss) (2,627) (2,744) (605) (113,717) Unrealized gain/(loss) on derivatives (183) 1,566 (110) (12,824) Realized gain/(loss) on derivatives 67 (1,624) 684 57,599 Total other income/(loss) $ (11,623) $ 2,646 $ (30,154) $ (103,906) Income/(loss) before taxes 29,196 35,677 112,070 (12,677) (Provision)/benefit for income tax 1,799 (419) 2,408 (281) Net income/(loss) $ 30,995 $ 35,258 $ 114,478 $ (12,958) Net (income)/loss attributable to non-controlling interest 772 — 722 — Net income/(loss) attributable to Franklin BSP Realty Trust, Inc. $ 31,767 $ 35,258 $ 115,200 $ (12,958) Less: Preferred stock dividends 6,748 6,899 20,245 34,865 Net income/(loss) applicable to common stock $ 25,019 $ 28,359 $ 94,955 $ (47,823) Basic earnings per share $ 0.30 $ 0.34 $ 1.14 $ (0.70) Diluted earnings per share $ 0.30 $ 0.34 $ 1.14 $ (0.70) Basic weighted average shares outstanding 82,210,625 83,665,250 82,410,725 67,965,397 Diluted weighted average shares outstanding 82,210,625 83,665,250 82,410,725 67,965,397

27 Appendix: FBRT Balance Sheet September 30, 2023 December 31, 2022 ASSETS Cash and cash equivalents $ 411,437 $ 179,314 Restricted cash 6,655 11,173 Commercial mortgage loans, held for investment, net of allowance for credit losses of $37,512 and $40,848 as of September 30, 2023 and December 31, 2022, respectively 4,913,644 5,228,928 Commercial mortgage loans, held for sale, measured at fair value 17,000 15,559 Real estate securities, trading, measured at fair value (includes pledged assets of $227,610 as of December 31, 2022) — 235,728 Real estate securities, available for sale, measured at fair value, amortized cost of $194,171 and $220,635 as of September 30, 2023 and December 31, 2022, respectively (includes pledged assets of $153,648 and $198,429 as of September 30, 2023 and December 31, 2022, respectively) 193,072 221,025 Derivative instruments, measured at fair value 35 415 Receivable for loan repayment 25,937 42,557 Accrued interest receivable 38,297 34,007 Prepaid expenses and other assets 17,501 15,795 Intangible lease asset, net of amortization 43,604 54,831 Real estate owned, net of depreciation 104,616 127,772 Real estate owned, held for sale 103,657 36,497 Total assets $ 5,875,455 $ 6,203,601 LIABILITIES AND STOCKHOLDERS' EQUITY Collateralized loan obligations $ 3,477,444 $ 3,121,983 Repurchase agreements and revolving credit facilities - commercial mortgage loans 249,345 680,859 Repurchase agreements - real estate securities 240,010 440,008 Mortgage note payable 23,998 23,998 Other financings 23,669 76,301 Unsecured debt 81,270 98,695 Derivative instruments, measured at fair value 258 64 Interest payable 11,504 12,715 Distributions payable 36,224 36,317 Accounts payable and accrued expenses 16,884 17,668 Due to affiliates 16,836 15,429 Intangible lease liability, held for sale 12,297 — Intangible lease liability, net of amortization — 6,428 Total liabilities $ 4,189,739 $ 4,530,465 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 September 30, 2023 and December 31, 2022 $ 89,748 $ 89,748 Redeemable convertible preferred stock Series I, $0.01 par value, none authorized and outstanding as of September 30, 2023, 1,000 authorized and 1,000 issued and outstanding as of December 31, 2022 — 5,000 Total redeemable convertible preferred stock $ 89,748 $ 94,748 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 September 30, 2023 and December 31, 2022 $ 258,742 $ 258,742 Common stock, $0.01 par value, 900,000,000 shares authorized, 83,019,881 and 82,992,784 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively 822 826 Additional paid-in capital 1,601,282 1,602,247 Accumulated other comprehensive income (loss) (1,099) 390 Accumulated deficit (292,833) (299,225) Total stockholders' equity $ 1,566,914 $ 1,562,980 Non-controlling interest 29,054 15,408 Total equity $ 1,595,968 $ 1,578,388 Total liabilities, redeemable convertible preferred stock and equity $ 5,875,455 $ 6,203,601

28 Definitions Distributable Earnings and Run-Rate Distributable Earnings 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, derivatives and residential adjustable-rate mortgage pass-through securities ("ARM Agency Securities" or "ARMS"), including CECL reserves and impairments, (iii) non-cash equity compensation expense, (iv) depreciation and amortization, (v) subordinated performance fee accruals/(reversal), (vi) loan workout charges, (vii) realized gains and losses on debt extinguishment, (viii) certain other non-cash items, and (ix) impairments of acquisition assets related to the Capstead merger. Further, Run-Rate Distributable Earnings, a non-GAAP measure, presents Distributable Earnings before trading and derivative gain/loss on ARMs. The Company believes that Distributable Earnings and Run-Rate Distributable Earnings provide meaningful information to consider in addition to the disclosed GAAP results. The Company believes Distributable Earnings is a useful financial metric for existing and potential future holders of its common stock as historically, over time, Distributable Earnings has been an indicator of 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 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. The Company believes Run-Rate Distributable Earnings is a useful financial metric because it presents the Distributable Earnings of its core businesses, net of the impacts of the realized trading and derivative gain/loss on the residential adjustable-rate mortgage securities acquired from Capstead Mortgage Corporation, which the Company has liquidated from its portfolio. Distributable Earnings and Run-Rate Distributable Earnings 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 and Run-Rate Distributable Earnings may differ from the methodologies employed by other companies and thus may not be comparable to the Distributable Earnings reported by other companies.

Cover	Oct. 30, 2023
Document Information [Line Items]
Document Type	8-K
Document Period End Date	Oct. 30, 2023
Entity Registrant Name	Franklin BSP Realty Trust, Inc.
Entity Incorporation, State or Country Code	MD
Entity File Number	001-40923
Entity Tax Identification Number	46-1406086
Entity Address, Address Line One	1345 Avenue of the Americas
Entity Address, Address Line Two	Suite 32A
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10105
City Area Code	212
Local Phone Number	588-6770
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Entity Central Index Key	0001562528
Amendment Flag	false
Common Stock
Document Information [Line Items]
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	FBRT
Security Exchange Name	NYSE
Series E Preferred Stock
Document Information [Line Items]
Title of 12(b) Security	7.50% Series E Cumulative Redeemable Preferred Stock, par value $0.01 per share
Trading Symbol	FBRT PRE
Security Exchange Name	NYSE