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): February 14, 2024

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 February 14, 2024, Franklin BSP Realty Trust, Inc. (the “Company”) issued a press release and supplemental slide presentation reporting the Company’s financial results for the quarter and year ended December 31, 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 February 14, 2024 announcing the Company’s financial results for the quarter and year ended December 31, 2023

99.2						Supplemental Presentation for the quarter ended December 31, 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: February 14, 2024


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

Franklin BSP Realty Trust, Inc. Announces Fourth Quarter and Full Year 2023 Results

New York City, NY – February 14, 2024 – Franklin BSP Realty Trust, Inc. (NYSE: FBRT) (“FBRT” or the “Company”) today announced financial results for the quarter and full year ended December 31, 2023.

Reported GAAP net income of $30.0 million and $144.5 million for the three and twelve months ended December 31, 2023, respectively, compared to $27.2 million and $14.2 million for the three and twelve months ended December 31, 2022, respectively. Reported diluted earnings per share ("EPS") to common stockholders of $0.28 and $1.42 for the three and twelve months ended December 31, 2023, respectively, compared to $0.25 and $(0.38) for the three and twelve months ended December 31, 2022, respectively.

Reported Distributable Earnings (a non-GAAP financial measure) of $39.3 million and $189.5 million, or $0.39 and $1.92 per diluted common share on a fully converted basis(1), for the three and twelve months ended December 31, 2023, respectively, compared to $38.8 million and $116.1 million, or $0.37 and $1.07 per diluted common share on a fully converted basis(1), for the three and twelve months ended December 31, 2022, respectively.

Fourth Quarter 2023 Summary

•Produced a fourth quarter GAAP and Distributable Earnings ROE (a non-GAAP financial measure) of 7.2% and 9.8%, respectively

•Book value of $15.77 per diluted common share on a fully converted basis(1)

•Declared fourth quarter common stock cash dividend of $0.355, representing an annualized 9.0% yield on book value

•GAAP and Distributable Earnings dividend coverage of 80% and 109%, respectively

•Closed $231 million of new loan commitments at a weighted average spread of 391 basis points

•Total liquidity of $1.5 billion, which includes $338 million in cash and cash equivalents and $55 million in CLO reinvest available

•Repurchased 267,968 shares of common stock at a net average price of $12.47 per share for an aggregate of $3.3 million, which represents a $0.01 per share increase to book value

Full Year 2023 Summary

•Produced a full year GAAP and Distributable Earnings ROE of 8.9% and 12.1%, respectively

•GAAP and Distributable Earnings dividend coverage of 100% and 135%, respectively

•Closed $818 million of new loan commitments at a weighted average spread of 450 basis points, ending the year with a core portfolio aggregate principal balance of approximately $5.0 billion

•Closed BSPRT 2023-FL10 ("FL10 CRE CLO"), a $897 million managed Commercial Real Estate Collateralized Loan Obligation ("CLO") with an 18-month reinvestment period

•Received proceeds of $96 million on the Brooklyn hotel loan, representing the full principal amount of the loan and approximately $20 million in additional proceeds after payment of all related closing expenses

•Repurchased 1,026,105 shares of common stock at an average price of $12.19 per share for an aggregate of $12.5 million, which represents a $0.05 per share increase to book value

Richard Byrne, Chairman and Chief Executive Officer of FBRT, said, “FBRT achieved strong results in the fourth quarter, comfortably covering our common stock dividend on a distributable earnings basis. For the year, FBRT delivered a 12.1% distributable earnings return on common equity, reflecting the stability of our multifamily-focused portfolio. We remain committed to delivering long-term stockholder value."

Further commenting on the Company's results, Michael Comparato, President of FBRT, added, “We are defensively positioned and ended the year with a liquidity position totaling $1.5 billion. We also have been actively originating new

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.

loans throughout 2023. As our pipeline grows and origination volumes improve, we expect to grow our portfolio and put this capital to work at attractive levels in 2024."

Core portfolio: For the quarter ended December 31, 2023, the Company closed $231 million of new loan commitments, funded $270 million of principal balance on new and existing loans, and received loan repayments of $174 million for a net increase in our core portfolio principal balance of $84 million. The Company's core portfolio at the end of the quarter consisted of 144 loans with an aggregate principal balance of approximately $5.0 billion. The average loan size was approximately $35 million. Over 99% of the aggregate principal balance of the Company's portfolio is in senior mortgage loans with approximately 98% in floating rate loans and approximately 77% of the portfolio is collateralized by multifamily properties. The Company's exposure to office loans is only 5%. As of December 31, 2023, the Company had six loans on its watch list (risk rating of four). Subsequent to year-end, the Company closed $113.2 million of new loan commitments consisting of two loans.

Allowance for credit losses: During the quarter, the Company recognized an incremental provision for credit losses of approximately $5.4 million.

Book Value

As of December 31, 2023, book value was $15.77 per diluted common share on a fully converted basis(1).

Share Repurchase Program

During the quarter, the Company repurchased 267,968 shares of the Company's common stock under the Company's $65 million share repurchase program. These shares were repurchased at a net average price of $12.47 per share, inclusive of any broker's fees or commissions, for an aggregate of $3.3 million. As of February 7, 2024, $35.2 million remains available under the $65 million share repurchase plan. FBRT's Board of Directors has extended the share repurchase authorization through December 31, 2024.

Subsequent Event

Subsequent to year end, the Company obtained, through deed-in-lieu of foreclosure, a multifamily property located in San Antonio, Texas. The watch list loan had an amortized cost basis of $42.2 million as of December 31, 2023. The Company is under contract to sell the property for $42.8 million. The sale is expected to close in the immediate future.

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, (viii) actual realized cash loss on a specific real estate owned ("REO") investment, (ix) impairments of acquisition assets related to the Capstead merger and (x) certain other non-cash items. Further, Run-Rate Distributable Earnings, a non-GAAP measure, presents Distributable Earnings before (i) trading and derivative gain/loss on ARMs and (ii) realized cash gain/loss adjustments on REO.

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 realized cash gain/loss adjustments on REO as well as 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

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 published a supplemental earnings presentation for the quarter ended December 31, 2023 on its website to provide additional disclosure and financial information. These materials can be found on the Company’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 Thursday, February 15, 2024 at 9:00 a.m. ET. Participants are encouraged to pre-register for the call and webcast at https://dpregister.com/sreg/10185473/fb540286fb. 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=IGbENPjX. 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 December 31, 2023, FBRT had approximately $6.0 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

(In thousands, except share and per share data)


	December 31, 2023		December 31, 2022
ASSETS
Cash and cash equivalents	$	337,595	$	179,314
Restricted cash	6,092		11,173
Commercial mortgage loans, held for investment, net of allowance for credit losses of $47,175 and $40,848 as of December 31, 2023 and 2022, respectively	4,989,767		5,228,928
Commercial mortgage loans, held for sale, measured at fair value	—		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 $243,272 and $220,635 as of December 31, 2023 and 2022, respectively (includes pledged assets of $167,948 and $198,429 as of December 31, 2023 and 2022, respectively)	242,569		221,025
Derivative instruments, measured at fair value	—		415

Receivable for loan repayment (1)	55,174		42,557
Accrued interest receivable	42,490		34,007
Prepaid expenses and other assets	19,213		15,795
Intangible lease asset, net of amortization	42,793		54,831
Real estate owned, net of depreciation	115,830		127,772
Real estate owned, held for sale	103,657		36,497


Total assets	$	5,955,180	$	6,203,601
LIABILITIES AND STOCKHOLDERS' EQUITY
Collateralized loan obligations	$	3,567,166	$	3,121,983
Repurchase agreements and revolving credit facilities - commercial mortgage loans	299,707		680,859
Repurchase agreements - real estate securities	174,055		440,008
Mortgage note payable	23,998		23,998
Other financings	36,534		76,301
Unsecured debt	81,295		98,695
Derivative instruments, measured at fair value	—		64
Interest payable	15,383		12,715
Distributions payable	36,133		36,317
Accounts payable and accrued expenses	13,339		17,668
Due to affiliates	19,316		15,429
Intangible lease liability, held for sale	12,297		—
Intangible lease liability, net of depreciation	—		6,428
Total liabilities	$	4,279,223	$	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 December 31, 2023 and 2022, respectively	$	89,748	$	89,748
Redeemable convertible preferred stock Series I, $0.01 par value, none issued and outstanding as of December 31, 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 December 31, 2023 and 2022	$	258,742	$	258,742
Common stock, $0.01 par value, 900,000,000 shares authorized, 82,751,913 and 82,992,784 issued and outstanding as of December 31, 2023 and 2022, respectively	820		826
Additional paid-in capital	1,599,197		1,602,247
Accumulated other comprehensive income (loss)	(703)		390
Accumulated deficit	(298,942)		(299,225)
Total stockholders' equity	$	1,559,114	$	1,562,980
Non-controlling interest	27,095		15,408
Total equity	$	1,586,209	$	1,578,388
Total liabilities, redeemable convertible preferred stock and equity	$	5,955,180	$	6,203,601

______________________________________________________________________

(1) Includes $55.1 million and $42.5 million of cash held by the servicer related to the CLOs as of December 31, 2023 and 2022, respectively. The Company no longer holds a residential mortgage backed securities principal paydown receivable as of December 31, 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)


	Year Ended December 31,
	2023		2022		2021
Income
Interest income	$	552,506	$	357,705	$	216,890
Less: Interest expense	305,577		160,526		56,193
Net interest income	246,929		197,179		160,697
Revenue from real estate owned	17,021		9,655		4,759
Total income	$	263,950	$	206,834	$	165,456
Expenses
Asset management and subordinated performance fee	$	33,847	$	26,157	$	28,110
Acquisition expenses	1,241		1,360		1,203
Administrative services expenses	14,440		12,928		7,658
Impairment of acquired assets	—		—		88,282
Professional fees	15,270		22,566		11,650
Share-based compensation	4,761		2,519		—

Depreciation and amortization	7,128		5,408		2,107
Other expenses	11,135		6,572		3,946
Total expenses	$	87,822	$	77,510	$	142,956
Other income/(loss)
(Provision)/benefit for credit losses	(33,738)		(36,115)		5,192

Realized gain/(loss) on extinguishment of debt	2,201		(5,167)		(4,642)
Realized gain/(loss) on sale of available for sale trading securities	80		—		—
Realized gain/(loss) on sale of commercial mortgage loans, held for sale	—		(354)		26

Realized gain/(loss) on sale of commercial mortgage loans, held for sale, measured at fair value	3,873		2,358		24,208
Gain/(loss) on other real estate investments	(7,089)		(692)		9,790
Unrealized gain/(loss) on commercial mortgage loans, held for sale, measured at fair value	44		(511)		469

Trading gain/(loss)	(605)		(119,220)		(36,128)
Unrealized gain/(loss) on derivatives	(140)		(15,840)		7,402
Realized gain/(loss) on derivatives	998		60,033		484
Total other income/(loss)	$	(34,376)	$	(115,508)	$	6,801
Income/(loss) before taxes	141,752		13,816		29,301
(Provision)/benefit for income tax	2,757		399		(3,599)
Net income/(loss)	$	144,509	$	14,215	$	25,702
Net (income)/loss attributable to non-controlling interest	706		216		—
Net income/(loss) attributable to Franklin BSP Realty Trust, Inc.	$	145,215	$	14,431	$	25,702
Less: Preferred stock dividends	26,993		41,741		33,587

Net income/(loss) attributable to common stock	$	118,222	$	(27,310)	$	(7,885)

Basic earnings per share	$	1.42	$	(0.38)	$	(0.18)
Diluted earnings per share	$	1.42	$	(0.38)	$	(0.18)
Basic weighted average shares outstanding	82,307,970		71,628,365		43,419,209
Diluted weighted average shares outstanding	82,307,970		71,628,365		43,434,731

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 for the years ended December 31, 2023, 2022 and 2021 (dollars in thousands):


	Year Ended December 31,
	2023			2022			2021
GAAP Net Income	$	144,509		$	14,215		$	25,702
Adjustments:
Depreciation and amortization	7,128			5,408			2,107
Impairment of Acquired Assets	—			—			88,282
CLO amortization acceleration (1)	(5,521)			(438)			250
Unrealized (gain)/loss on financial instruments (2)	7,185			17,010			(7,853)
Unrealized (gain)/loss - ARMs	415			43,557			20,670
Subordinated performance fee (3)	6,171			(8,380)			9,846
Non-Cash Compensation Expense	4,762			3,485			—
(Reversal of)/Provision for credit losses	33,738			36,115			(5,192)
Loan workout charges/(loan workout recoveries) (4)	(5,105)			5,104			—
Realized (gain)/loss on debt extinguishment / CLO call	(2,201)			—			—
Realized trading and derivatives (gain)/loss on ARMs	677			21,726			13,600
Run Rate Distributable Earnings (5)	$	191,758		$	137,802		$	147,412
Realized trading and derivatives gain/(loss) on ARMs	(677)			(21,726)			(13,600)
Realized cash gain/(loss) adjustment on REO (6)	(1,571)			—			—
Distributable Earnings	$	189,510		$	116,076		$	133,812
7.5% Cumulative Redeemable Preferred Stock, Series E Dividend	(19,367)			(19,367)			(4,842)
Non-controlling interests in joint ventures net (income)/loss	(602)			216			—
Depreciation and amortization attributed to non-controlling interests of joint ventures	(31)			(1,415)			—
Distributable Earnings to Common	$	169,510		$	95,510		$	128,970
Average Common Stock and Common Stock Equivalents	1,403,558			1,456,871			1,146,009
GAAP Net Income/(Loss) ROE	8.9		%	(0.3)		%	1.8		%
Run-Rate Distributable Earnings ROE	12.2		%	8.0		%	12.4		%
Distributable Earnings ROE	12.1		%	6.6		%	11.3		%
GAAP Net Income/(Loss) Per Share, Diluted	$	1.42		$	(0.38)		$	(0.18)
GAAP Net Income/(Loss) Per Share, Fully Converted (7)	$	1.42		$	(0.06)		$	0.33
Run-Rate Distributable Earnings Per Share, Fully Converted (7)	$	1.94		$	1.31		$	2.23
Distributable Earnings Per Share, Fully Converted (7)	$	1.92		$	1.07		$	2.02

________________________

(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 2022.

(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) Represents the actual realized cash loss on a specific REO investment.

(7) 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 Fourth Quarter 2023

Important Information 2 The information herein relates to the Company’s business and financial information as of December 31, 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 4Q 2023 Financial Update 3

FBRT 4Q 2023 Financial Update: Fourth 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 $9.4 million and $8.4 million at 12/31/23 and 9/30/23, respectively. 4. 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 $30.0 million and $0.28 per diluted common share and $0.29 per fully converted share (1) ― Distributable Earnings (2) of $39.3 million and $0.39 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 80% and 109%, respectively Capitalization ― Book value per share, fully converted is $15.77 vs. $15.82 last quarter (1). Undepreciated book value per share, fully converted is $15.88 vs. $15.91 last quarter (1), (3) ― Net debt to equity is 2.3x; recourse net debt to equity is 0.2x ― 89% of financing sources are non-mark-to-market on our core book ― $1.5 billion of liquidity of which $338 million is cash and $55 million is CLO reinvest available (4) Investments ― Core portfolio: Principal balance increased by $84 million in quarter. Closed $231 million of new loan commitments and funded $270 million of principal balance including future funding on existing loans. Received loan repayments of $174 million Portfolio ― Core portfolio of 144 CRE loans and $5.0 billion of principal balance, average size of $35 million and 77% multifamily. During the quarter, one asset was removed from the watch list. Six assets remain on the watch list at quarter-end

FBRT 4Q 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 1/21/25, 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 $54.0 Total core portfolio $4,989.8 Operating expenses (1) (18.7) Total real estate securities $242.6 Provision for credit loss (5.4) Cash and restricted cash $343.7 Other income/(loss) 0.1 CLO reinvestment available $54.5 GAAP net income (loss) $30.0 Other assets $324.6 Adjustments to GAAP net income (loss) (2) 9.2 Total assets $5,955.2 Distributable Earnings (2) $39.3 Realized trading and derivatives (gain)/loss on ARMs / Realized Cash Loss Adjustment on REO - Balance Sheet - Debt & Equity Run-Rate Distributable Earnings (2) $39.3 Collateralized loan obligations 3,567.2 Run-Rate Distributable Earnings per share, fully converted (2),(3) $0.39 Warehouse 299.7 Run-Rate Distributable Earnings return on common equity (2) 9.8% Repo - securities 174.1 Asset specific financings 60.5 GAAP net income (loss) per share, fully converted (3) $0.29 Unsecured debt 81.3 GAAP return on common equity 7.2% Total Debt $4,182.8 GAAP dividend coverage, fully converted (2), (3) 80.4% Preferred equity (4) 348.5 Common stock/retained earnings (5) 1,327.5 Distributable Earnings per share, fully converted (2), (3) $0.39 Total equity (4), (5) 1,676.0 Distributable Earnings return on common equity (2) 9.8% Book value per share, fully converted (3) $15.77 Distributable Earnings dividend coverage, fully converted (2), (3) 109.0% Net debt/total equity 2.29x Dividend per share $0.355 Recourse net debt/total equity 0.16x Dividend per share yield on book value 9.0%

FBRT 4Q 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) $43.8 $39.6 $31.0 $30.0 1Q'23 2Q'23 3Q'23 4Q'23 $44.8 $63.5 $42.0 $39.3 1Q'23 2Q'23 3Q'23 4Q'23 Williamsburg Hotel Sale $15.0 (3) $0.355 $0.355 $0.355 $0.355 Dividend per share $0.44 $0.66 $0.43 $0.39 Distributable earnings per share, fully converted (1), (2) 125% 185% 120% 109% Distributable dividend coverage, fully converted (1), (2)

FBRT 4Q 2023 Financial Update: Core Loan Originations 7 Note: All numbers in millions. Numbers in charts above represent principal balance. 1. As of December 31, 2023, future funding remaining on the loans outstanding was $288 million. 2. Includes full paydowns, dispositions, partial paydowns and amortization. (1) 4Q 2023 ($M) FY 2023 ($M) (1) (2) (2)

FBRT 4Q 2023 Financial Update: Capitalization Overview 1. On our core book (excluding repo-securities), 89% of financings are non-mark-to-market. 8 Collateralized Loan Obligations 85% Warehouse 7% Repo - Securities 4% Asset Specific Financings 1% Unsecured Debt 2% Financing Sources (1) FBRT average debt cost including financing costs was 7.9% in 4Q23 vs. 7.7% last quarter Net Leverage $4.2Bn Total Debt 0.16x 2.29x 0.00x 0.50x 1.00x 1.50x 2.00x 2.50x Recourse Leverage Total Leverage

FBRT 4Q 2023 Financial Update: Financing Detail 9 1. Outstanding balance at December 31, 2023 and net of tranches held by FBRT. 2. Cost of debt is shown before discount and transaction costs. 3. Commitment for loans. Excludes bond repurchase agreements. CLO Name Debt Amount (1) Reinvest End Date Cost of Debt (2) BSPRT 2021-FL6 $558 million Ended S + 1.43% 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 $671 million 7/8/24 S + 2.80% BSPRT 2023-FL10 $689 million 4/8/25 S + 2.57% Total $3,598 million CLO reinvestment available $55 million Repo – Securities (outstanding) $174 million Name Commitment (3) Barclays (Warehouse) $500 million Wells Fargo $400 million JP Morgan $500 million Atlas SP Partners $600 million Churchill $225 million Barclays (Secured Revolver) $250 million Webster Bank loan participation $37 million Total $2,512 million CLOs Warehouse/Revolver/Other

FBRT 4Q 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 39% Southwest 38% Mideast 9% Great Lakes 3% Far West 2% Various(1) 9% Floating 98% Fixed 2% Portfolio Summary Collateral Summary Collateral by Region Rate Type Portfolio Overview − $5.0 billion total portfolio − 138 senior loans; average size of ~$36 million − 6 mezzanine loans; average size of ~$3 million − Two non-performing loans Multifamily 77% Hospitality 13% Office 5% Industrial 1% Mixed Use 1% Retail 1% Other 2% 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 12/31/23. − 7 loans; $231 million total commitment ($218 million of initial funding / $14 million of future funding) − 3.91% weighted average spread; 9.26% all-in coupon(1). 1.0% and 0.5% weighted average origination and exit fees, respectively By Collateral By Region By State Overview Texas 55% Florida 14% Tennessee 19% Nevada 12% Multifamily 55% Hospitality 45% Southwest 55% Southeast 33% Far West 12%

Portfolio: Core Portfolio - Case Studies: Watch List Loans (Risk Rating 4&5) 14 Investment CBD Office Building Suburban Office Park Full Service Hotel 352-Unit Apartment Community 471-Unit Apartment Community Two Property Portfolio Apartment Communities Loan Type Floating Rate Senior Loan Floating Rate Senior Loan Floating Rate Senior Loan Floating Rate Senior Loan Floating Rate Senior Loan Floating Rate Senior Loan Investment Date Q1 2021 Q4 2019 Q3 2019 Q4 2021 Q2 2022 Q2 2022 Default Date None None None Q4 2023 None None Non-Accrual No No No Yes No No Collateral 31-Story, 299k Square Foot Office Building Two, 6-Story Office Buildings 279-Key, Full-Service Hotel 352-Unit, Garden Style Apartment Community 471-Unit, Garden Style Apartment Community Two Property, Garden- Style Apartment Communities Loan Purpose Refinance Acquisition Acquisition Acquisition Acquisition Acquisition Location Denver, Colorado Alpharetta, Georgia Dallas, Texas San Antonio, Texas Raleigh, North Carolina Mooresville & Chapel Hill, North Carolina Loan Risk Rating 4 4 4 4 4 4

Portfolio: Foreclosure Real Estate Owned (“REO”) 15Note: Foreclosure REO is $122 million of net book value. In addition, FBRT owns an investment REO with a total net book value of $128 million, which is not presented above. Investment Single Tenant Retail Portfolio CBD Office Complex 16-Building Apartment Complex Loan Investment Date Q2 2022 Q1 2020 Q1 2021 Foreclosure / Deed-In-Lieu Date Q4 2022 - Q2 2023 Q3 2023 Q4 2023 Collateral Type Retail Office Multifamily Collateral Detail 23 Freestanding Retail Properties 124k Square Foot Office Complex 236-Unit Apartment Complex with 16 Buildings Location Various Portland, Oregon Lubbock, Texas

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 $152 $152 + 4.55% 10.36% 6/9/26 Florida Multifamily 47.8% Loan 2 Senior Loan 6/1/22 152 147 147 + 3.95% 9.80% 6/9/27 Various Multifamily 67.8% Loan 3 Senior Loan 2/9/23 120 120 120 + 4.90% 10.92% 2/9/28 Various Hospitality 53.6% Loan 4 Senior Loan 2/25/22 86 86 86 + 3.24% 9.08% 3/9/26 New Jersey Multifamily 60.0% Loan 5 Senior Loan 2/24/22 86 86 85 + 3.15% 9.24% 3/9/27 North Carolina Multifamily 69.6% Loan 6 Senior Loan 6/1/22 86 84 84 + 3.95% 9.80% 6/9/27 North Carolina Multifamily 71.8% Loan 7 Senior Loan 2/10/22 82 82 82 + 3.20% 8.93% 2/9/27 Florida Multifamily 74.5% Loan 8 Senior Loan 12/15/21 84 81 81 + 3.21% 8.81% 1/9/27 North Carolina Multifamily 76.1% Loan 9 Senior Loan 8/1/23 80 79 79 + 3.20% 9.05% 8/9/28 Texas Multifamily 58.7% Loan 10 Senior Loan 12/21/21 79 78 78 + 3.45% 9.00% 1/9/27 Florida Multifamily 78.8% Loan 11 Senior Loan 3/31/21 79 76 76 + 2.95% 8.62% 4/9/26 Texas Multifamily 72.6% Loan 12 Senior Loan 5/18/22 71 71 71 + 3.80% 9.64% 6/9/27 Georgia Multifamily 77.9% Loan 13 Senior Loan 6/14/22 71 71 71 + 3.45% 9.61% 6/9/27 Georgia Multifamily 71.6% Loan 14 Senior Loan 9/20/21 70 70 69 + 3.25% 9.21% 10/9/26 South Carolina Multifamily 77.1% Loan 15 Senior Loan 11/30/21 69 69 69 + 2.88% 8.84% 12/9/26 Texas Multifamily 74.8% Loans 16 - 144 Senior & Mezz Loans Various 3,965 3,694 3,688 + 3.84% 9.71% Various Various Various 64.8% CECL Reserve (48) Total/Wtd. avg. $5,333 $5,045 $4,989 + 3.79% 9.66% 2.9 years 65.4% Average Loan Size $37 $35 $35

Appendix: Core Portfolio - Risk Ratings 18 Note: Principal balance in millions. Average risk rating was 2.3 for the quarter vs. 2.2 last quarter Risk Rating # of Loans - 111 27 6 - + vs 3Q23 - +8 +6 +4 - - vs 3Q23 - -12 -6 -1 - +/- vs 3Q23 - -4 - +3 - Principal Balance $- $3,898 $875 $272 $- Non-Accrual - - 1 1 - 0.0% 77.3% 17.4% 5.4% 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 ($0.11) ($0.06) $0.00 $0.06 $0.11 -1.00% -0.50% 12/31/2023 +0.50% +1.00% Change in Floating Base Rate Indices Sensitivity on Index Rates (Annual EPS Impact)As of 2/9/24: 1M SOFR: 5.32% As of 12/31/23 1M SOFR = 5.35%

Appendix: Rate Cap Sensitivity 20Note: The above analysis assumes fixed rates loan have rate caps that are always active and do not expire. Loans without rate caps includes loans that previously had rate caps, but have expired as of 12/31/23. All loans with rate caps are activated at +1.00% and above Percentage and Number of Loans with Rate Caps Activated loans loans loans 81%; 117 84%; 121 88%; 126 Current (as of 12/31/23) +0.50% +1.00% Change in Floating Base Rate Indices 88% of our loans have a rate cap (average of 2.8% rate cap) and 81% were activated as of 12/31/23

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 12/31/23. $216 $380 $1,857 $1,943 $450 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 84% Hospitality 13% Office 2% Other 1% $ millions Allowance for Loan Loss Balance at 9/30/23 - General Reserve $42.9 Provision for Credit Loss - General Reserve 5.4 Allowance for Loan Loss Balance at 12/31/23 - Before Asset-Specific Reserve $48.3 Asset-Specific Reserve at 9/30/23 - Provision / (Benefit) for Credit Loss - Asset-Specific - Allowance for Loan Loss Balance at 12/31/23 - Including Asset-Specific Reserve $48.3 Portfolio Principal Balance $5,045 Total Allowance for Loan Loss % of Portfolio 1.0%

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) $30,031 88,182,810 $0.29 $1,394,883 7.2% Run-Rate Distributable Earnings (1) $39,263 88,182,810 $0.39 $1,394,883 9.8% Distributable Earnings (1) $39,263 88,182,810 $0.39 $1,394,883 9.8% GAAP Net Income (Loss): Core (2) 29,268 82,255,399 $0.30 1,301,123 7.5% Securities 763 5,927,411 $0.13 93,760 3.3% Total $30,031 88,182,810 $0.29 $1,394,883 7.2% Run-Rate Distributable Earnings: (1) Core (2) 38,499 82,255,399 $0.41 1,301,123 10.3% Securities 763 5,927,411 $0.13 93,760 3.3% Total $39,263 88,182,810 $0.39 $1,394,883 9.8% Distributable Earnings: (1) Core (2) 38,499 82,255,399 $0.41 1,301,123 10.3% Securities 763 5,927,411 $0.13 93,760 3.3% Total $39,263 88,182,810 $0.39 $1,394,883 9.8%

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 a specific REO investment. 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. 1Q'23 2Q'23 3Q'23 4Q'23 GAAP Net Income (Loss) 43.8 39.6 31.0 30.0 Adjustments: CLO Amortization Acceleration (1) (1.5) (1.2) (1.3) (1.6) Unrealized (Gain) / Loss (2) 0.6 2.7 4.3 (0.0) Subordinated Performance Fee (3) (0.6) 2.6 1.6 2.6 Non-Cash Compensation Expense 1.0 1.2 1.3 1.3 Depreciation & Amortization 1.8 2.2 1.5 1.6 (Reversal of) / Provision for Credit Loss 4.4 21.6 2.4 5.4 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 (2.2) (0.2) 3.1 - Run-Rate Distributable Earnings (5) 42.5 63.3 46.7 39.3 Realized Cash Gain/(Loss) Adjustment on REO (6) - - (1.6) - Realized Trading and Derivatives Gain / (Loss) on ARMs 2.2 0.2 (3.1) - Distributable Earnings 44.8 63.5 42.0 39.3 Preferred Equity E Class Dividend (4.8) (4.8) (4.8) (4.8) Depreciation and Amortization Attributed to Noncontrolling Interests of Joint Ventures (0.4) (0.4) 0.8 (0.0) Noncontrolling Interests in Joint Ventures Net (Income) / Loss (0.0) (0.0) (0.3) (0.3) Distributable Earnings to Common (7) 39.6 58.2 37.6 34.1 Average Common Stock & Common Stock Equivalents (8) 1,422.6 1,413.5 1,402.4 1,394.9 GAAP Net Income (Loss) ROE 11.0% 9.8% 7.7% 7.2% Run-Rate Distributable Earnings ROE 10.5% 16.4% 12.1% 9.8% Distributable Earnings ROE 11.1% 16.5% 10.7% 9.8% GAAP Net Income / (Loss) Earnings Per Share, Diluted $0.44 $0.39 $0.30 $0.28 Fully Converted Weighted Average Shares Outstanding (9) 88,916,252 88,421,116 88,390,522 88,182,810 GAAP Net Income / (Loss) Earnings Per Share, Fully Converted (10) $0.44 $0.39 $0.30 $0.29 Run-Rate Distributable Earnings Per Share, Fully Converted (10) $0.42 $0.66 $0.48 $0.39 Distributable Earnings Per Share, Fully Converted (10) $0.44 $0.66 $0.43 $0.39

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 outstanding series of convertible preferred stock and vesting of our outstanding equity compensation awards. 2. Excluding the amounts for accumulated depreciation and amortization of real property of $9.4 million and $5.2 million as of December 31, 2023 and 2022, respectively, would result in a fully-converted book value per share of $15.88 and $15.84 as of December 31, 2023 and 2022, respectively. December 31, 2023 December 31, 2022 Stockholders' equity applicable to convertible common stock $ 1,390,120 $ 1,398,986 Shares: Common stock 81,942,656 82,479,743 Restricted stock and restricted stock units 809,257 513,041 Series H convertible preferred stock 5,370,498 5,370,640 Series I convertible preferred stock — 299,200 Total outstanding shares 88,122,411 88,662,624 Fully-converted book value per share (1) (2) $ 15.77 $ 15.78

26 Appendix: FBRT Income Statement Year Ended December 31, 2023 2022 2021 Income Interest income $ 552,506 $ 357,705 $ 216,890 Less: Interest expense 305,577 160,526 56,193 Net interest income 246,929 197,179 160,697 Revenue from real estate owned 17,021 9,655 4,759 Total income $ 263,950 $ 206,834 $ 165,456 Expenses Asset management and subordinated performance fee $ 33,847 $ 26,157 $ 28,110 Acquisition expenses 1,241 1,360 1,203 Administrative services expenses 14,440 12,928 7,658 Impairment of acquired assets — — 88,282 Professional fees 15,270 22,566 11,650 Share-based compensation 4,761 2,519 — Depreciation and amortization 7,128 5,408 2,107 Other expenses 11,135 6,572 3,946 Total expenses $ 87,822 $ 77,510 $ 142,956 Other income/(loss) (Provision)/benefit for credit losses $ (33,738) $ (36,115) $ 5,192 Realized gain/(loss) on extinguishment of debt 2,201 (5,167) (4,642) Realized gain/(loss) on sale of available for sale trading securities 80 — — Realized gain/(loss) on sale of commercial mortgage loans, held for sale — (354) 26 Realized gain/(loss) on sale of commercial mortgage loans, held for sale, measured at fair value 3,873 2,358 24,208 Gain/(loss) on other real estate investments (7,089) (692) 9,790 Unrealized gain/(loss) on commercial mortgage loans, held for sale, measured at fair value 44 (511) 469 Trading gain/(loss) (605) (119,220) (36,128) Unrealized gain/(loss) on derivatives (140) (15,840) 7,402 Realized gain/(loss) on derivatives 998 60,033 484 Total other income/(loss) $ (34,376) $ (115,508) $ 6,801 Income/(loss) before taxes 141,752 13,816 29,301 (Provision)/benefit for income tax 2,757 399 (3,599) Net income/(loss) $ 144,509 $ 14,215 $ 25,702 Net (income)/loss attributable to non-controlling interest 706 216 — Net income/(loss) attributable to Franklin BSP Realty Trust, Inc. $ 145,215 $ 14,431 $ 25,702 Less: Preferred stock dividends 26,993 41,741 33,587 Net income/(loss) applicable to common stock $ 118,222 $ (27,310) $ (7,885) Basic earnings per share $ 1.42 $ (0.38) $ (0.18) Diluted earnings per share $ 1.42 $ (0.38) $ (0.18) Basic weighted average shares outstanding 82,307,970 71,628,365 43,419,209 Diluted weighted average shares outstanding 82,307,970 71,628,365 43,434,731

27 Appendix: FBRT Balance Sheet December 31, 2023 December 31, 2022 ASSETS Cash and cash equivalents $ 337,595 $ 179,314 Restricted cash 6,092 11,173 Commercial mortgage loans, held for investment, net of allowance for credit losses of $47,175 and 40,848 as of December 31, 2023 and December 31, 2022, respectively 4,989,767 5,228,928 Commercial mortgage loans, held for sale, measured at fair value — 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 $243,272 and $220,635 as of December 31, 2023 and December 31, 2022, respectively (includes pledged assets of $167,948 and $198,429 as of December 31, 2023 and December 31, 2022, respectively) 242,569 221,025 Derivative instruments, measured at fair value — 415 Receivable for loan repayment 55,174 42,557 Accrued interest receivable 42,490 34,007 Prepaid expenses and other assets 19,213 15,795 Intangible lease asset, net of amortization 42,793 54,831 Real estate owned, net of depreciation 115,830 127,772 Real estate owned, held for sale 103,657 36,497 Total assets $ 5,955,180 $ 6,203,601 LIABILITIES AND STOCKHOLDERS' EQUITY Collateralized loan obligations $ 3,567,166 $ 3,121,983 Repurchase agreements and revolving credit facilities - commercial mortgage loans 299,707 680,859 Repurchase agreements - real estate securities 174,055 440,008 Mortgage note payable 23,998 23,998 Other financings 36,534 76,301 Unsecured debt 81,295 98,695 Derivative instruments, measured at fair value — 64 Interest payable 15,383 12,715 Distributions payable 36,133 36,317 Accounts payable and accrued expenses 13,339 17,668 Due to affiliates 19,316 15,429 Intangible lease liability, held for sale 12,297 — Intangible lease liability, net of depreciation — 6,428 Total liabilities $ 4,279,223 $ 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 December 31, 2023 and 2022, respectively $ 89,748 $ 89,748 Redeemable convertible preferred stock Series I, $0.01 par value, none issued and outstanding as of December 31, 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 December 31, 2023 and 2022 $ 258,742 $ 258,742 Common stock, $0.01 par value, 900,000,000 shares authorized, 82,751,913 and 82,992,784 issued and outstanding as of December 31, 2023 and 2022, respectively 820 826 Additional paid-in capital 1,599,197 1,602,247 Accumulated other comprehensive income (loss) (703) 390 Accumulated deficit (298,942) (299,225) Total stockholders' equity $ 1,559,114 $ 1,562,980 Non-controlling interest 27,095 15,408 Total equity $ 1,586,209 $ 1,578,388 Total liabilities, redeemable convertible preferred stock and equity $ 5,955,180 $ 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 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, (viii) realized cash loss on a specific real estate owned ("REO") investment, (ix) impairments of acquisition assets related to the Capstead merger and (x) certain other non-cash items. Further, Run-Rate Distributable Earnings, a non-GAAP measure, presents Distributable Earnings before (i) trading and derivative gain/loss on ARMs and (ii) realized cash gain/loss adjustments on REO. 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	Feb. 14, 2024
Document Information [Line Items]
Document Type	8-K
Document Period End Date	Feb. 14, 2024
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