Franklin BSP Real Estate Credit BDC 10-Q 12 Aug 24 2024 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2024	Aug. 12, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Entity File Number	000-56653
Entity Registrant Name	FRANKLIN BSP REAL ESTATE DEBT BDC
Entity Incorporation, State or Country Code	DE
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
Entity Tax Identification Number	99-1918767
City Area Code	212
Local Phone Number	588-6770
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		10,797,864.24
Entity Central Index Key	0002018545
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31

CONSOLIDATED STATEMENT OF ASSET

CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES	Jun. 30, 2024 USD ($) $ / shares
Assets
Investments at fair value	$ 88,638,000	[1],[2]
Cash	18,677,000
Due from Advisor	1,948,000
Total assets	109,263,000
Liabilities
Interest received in advance	294,000
Accrued administration fee	440,000
Accrued organizational costs	585,000
Accrued offering costs	335,000
Other payable	1,599,000
Total liabilities	3,253,000
Commitments & Contingencies (Note 6)
Net Assets
Common Shares, $0.001 par value, unlimited shares authorized, 4,200,059 shares issued and outstanding	4,000
Paid-in-capital in excess of par value	104,997,000
Distributable earnings (loss)	1,009,000
Total net assets	106,010,000
Total liabilities and total net assets	$ 109,263,000
Net asset value per share (in dollars per share) | $ / shares	$ 25.24
[1] All of the Company’s investments are Non-Control/Non-Affiliate investments. Non-Control/Non-Affiliate investments as defined by the 1940 Act, are those that are neither Control nor Affiliate investments and in which we own less than 25.0%/5.0% of the issued and outstanding voting securities.

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended	4 Months Ended
	Jun. 30, 2024	Jun. 30, 2024
Investment Income
Interest income	$ 226	$ 226
Total investment income	226	226
Operating Expenses
Management fee	68	83
Administration fee	440	440
Organizational costs	189	585
Other expenses	614	614
Total expenses	1,311	1,722
Less: waivers (Note 3)	(1,681)	(1,696)
Net expenses	(370)	26
Net investment income	596	200
Change in unrealized appreciation (depreciation) from:
Non-controlled, non-affiliated investments	809	809
Net increase in net assets resulting from operations	$ 1,405	$ 1,009
Weighted average shares outstanding (in shares)	512,254	512,254
Net Investment Income per share, basic (in dollars per share)	$ 1.16	$ 0.39
Net Investment Income per share, diluted (in dollars per share)	1.16	0.39
Earnings per share, basic (in dollars per share)	2.74	1.97
Earnings per share, diluted (in dollars per share)	$ 2.74	$ 1.97

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES NET ASSETS - USD ($)	3 Months Ended	4 Months Ended
	Jun. 30, 2024	Jun. 30, 2024
Increase in net assets resulting from operations:
Net investment income	$ 596,000	$ 200,000
Net change in unrealized appreciation	809,000	809,000
Net increase in net assets resulting from operations	1,405,000	1,009,000
Capital share transactions
Issuance of Common Shares, net of offering costs and advisor reimbursement	105,001,000	105,001,000
Net increase in net assets resulting from capital share transactions	105,001,000	105,001,000
Total increase in net assets	106,406,000	106,010,000
Net assets at beginning of period	(396,000)	0
Net assets at end of period	$ 106,010,000	$ 106,010,000
Capital share activity
Shares issued (in shares)	4,199,999	4,200,059
Net increase in shares outstanding (in shares)	4,199,999	4,200,059

CONSOLIDATED STATEMENT OF CASH

CONSOLIDATED STATEMENT OF CASH FLOWS $ in Thousands	4 Months Ended
	Jun. 30, 2024 USD ($)
Operating activities:
Net increase (decrease) in net assets from operations	$ 1,009
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used for) operating activities:
Origination of loans	(88,638)
Loan origination fees collected	812
Net change in unrealized appreciation on investments	(809)
Net (accretion) on investments	(3)
(Increase) decrease in operating assets:
Due from Advisor	(1,613)
Increase (decrease) in operating liabilities:
Accrued administration fee	440
Accrued organizational costs	585
Interest received in advance	294
Other payable	1,599
Net cash provided by (used in) operating activities	(86,324)
Financing activities:
Proceeds from issuance of shares of Common Shares	105,001
Net cash provided by (used in) financing activities	105,001
Net increase (decrease) in cash	18,677
Cash, beginning of period	0
Cash, end of period	18,677
Supplemental disclosures of non - cash flow information:
Accrued offering costs net of related advisor reimbursement	$ 335

CONSOLIDATED SCHEDULE OF INVEST

CONSOLIDATED SCHEDULE OF INVESTMENTS $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Schedule of Investments [Line Items]
Amortized Cost	$ 87,829	[1],[2]
Fair Value	$ 88,638	[1],[2]
% of Net Assets	83.60%	[1],[2],[3],[4]
Qualifying Concentration Risk | Assets, Total | Qualifying Investment Assets
Schedule of Investments [Line Items]
Concentration risk	83.60%
Senior Mortgage
Schedule of Investments [Line Items]
Amortized Cost	$ 87,829
Fair Value	$ 88,638
% of Net Assets	83.60%
Hospitality Senior Mortgage
Schedule of Investments [Line Items]
Amortized Cost	$ 8,843	[5],[6]
Fair Value	$ 8,969	[5],[6]
% of Net Assets	8.50%	[5],[6]
Multifamily Senior Mortgage
Schedule of Investments [Line Items]
Amortized Cost	$ 78,986	[5],[6]
Fair Value	$ 79,669	[5],[6]
% of Net Assets	75.10%	[5],[6]
Investment, Identifier [Axis]: ALP Delaware, LLC, Multifamily
Schedule of Investments [Line Items]
Spread Above Reference Rate	3.05%	[7]
Interest Rate	8.39%	[5],[6],[7],[8]
Par Amount	$ 21,219
Amortized Cost	21,007
Fair Value	$ 21,219
% of Net Assets	20%
Investment, Identifier [Axis]: AVR Eugene Hotel LLC, Hospitality
Schedule of Investments [Line Items]
Spread Above Reference Rate	3.95%	[7]
Interest Rate	9.84%	[5],[6],[7],[8]
Par Amount	$ 8,969
Amortized Cost	8,843
Fair Value	$ 8,969
% of Net Assets	8.50%
Investment, Identifier [Axis]: CRP/RPM LYV Broadway GP, LLC, Multifamily
Schedule of Investments [Line Items]
Spread Above Reference Rate	2.80%	[7]
Interest Rate	8.14%	[5],[6],[7],[8]
Par Amount	$ 44,250
Amortized Cost	43,919
Fair Value	$ 44,250
% of Net Assets	41.70%
Investment, Identifier [Axis]: Smart Living Texas City MM, LLC, Multifamily
Schedule of Investments [Line Items]
Spread Above Reference Rate	3.80%	[7]
Interest Rate	9.15%	[5],[6],[8]
Par Amount	$ 14,200
Amortized Cost	14,060
Fair Value	$ 14,200
% of Net Assets	13.40%
[1] All of the Company’s investments are Non-Control/Non-Affiliate investments. Non-Control/Non-Affiliate investments as defined by the 1940 Act, are those that are neither Control nor Affiliate investments and in which we own less than 25.0%/5.0% of the issued and outstanding voting securities. All debt investments are income-producing, unless otherwise noted. All investments are U.S. domiciled. The investments herein bear interest at rates that may be determined by reference to Secured Overnight Financing Rate (“SOFR”), which typically resets monthly or quarterly. For each such investment, the Company has provided the spread over SOFR and the current contractual interest rate in effect at June 30, 2024. As of June 30, 2024, rates for 1M SOFR, 3M SOFR, 6M SOFR, 12M SOFR are 5.34%, 5.32%, 5.25%, and 5.04%, respectively. Certain investments are subject to a SOFR floor.

CONSOLIDATED STATEMENT OF ASS_2

CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES (Parenthetical) $ in Thousands	Jun. 30, 2024 USD ($) $ / shares shares
Assets
Amortized cost | $	$ 87,829	[1],[2]
Net Assets
Common stock, par value (in dollars per share) | $ / shares	$ 0.001
Common stock, issued (in shares)	4,200,059
Common stock, outstanding (in shares)	4,200,059
[1] All of the Company’s investments are Non-Control/Non-Affiliate investments. Non-Control/Non-Affiliate investments as defined by the 1940 Act, are those that are neither Control nor Affiliate investments and in which we own less than 25.0%/5.0% of the issued and outstanding voting securities.

Organization

Organization	6 Months Ended
	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Organization Franklin BSP Real Estate Debt BDC (the “Company”) is a newly formed, externally managed, non-diversified, closed-end management investment company that elected to be regulated as a business development company (a “BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”) on June 6, 2024 and intends to elect to be treated for U.S. federal income tax purposes, and to qualify annually thereafter, as a real estate investment trust (“REIT”). The Company was formed as a Delaware statutory trust on March 11, 2024 (date of inception). As a BDC, the Company must comply with certain regulatory requirements. The Company is externally managed by Benefit Street Partners, L.L.C. (the “Advisor”). The Company’s Advisor is a limited liability company that is registered as an investment advisor with the Securities and Exchange Commission (the “SEC”) under the Investment Advisers Act of 1940, as amended (the “Advisers Act”). The Advisor oversees the management of the Company’s activities and is responsible for making investment decisions with respect to the Company’s portfolio. The Company’s investment objectives are to seek to provide high current income while maintaining downside protection. The Company will seek to invest in assets that will enable it to: • provide current income in the form of regular, stable cash distributions to achieve an attractive distribution yield; • preserve and protect invested capital, by primarily focusing on high-quality credit investments supported by current cash-flow and/or limited business plan risk in the underlying assets; • reduce downside risk through loans with relatively low loan-to-value ratios, meaning we generally invest in less risky loans with low interest rates which are backed by high-quality real assets, with a focus on residential lending and with meaningful borrower equity; and • provide an investment alternative for shareholders seeking to allocate a portion of their long-term investment portfolios to commercial real estate (“CRE”) debt with expected lower volatility than publicly traded securities and compelling risk-adjusted returns compared to fixed income alternatives. The Company intends to use its proceeds from its private offering of Common Shares (the “offering”) to finance the Company’s investment objectives. The Company’s investment strategy is to originate, acquire, finance and manage a portfolio of primarily CRE investments, focused on senior secured, CRE loans across a wide range of geography. The Company will focus its investments in the middle market, with loans in the range of $25—$100 million, across a mix of asset classes, but maintain a focus on multi-family lending. To a lesser extent, the Company may invest in, or originate, other real-estate related debt and equity investments, which may include subordinated debt, commercial mortgage-backed securities (“CMBS”) and collateralized loan obligations (“CLOs”). The Company will seek to focus on a flexible mix of credit and other real estate investments associated with high-quality assets to generate current cash flow. The Company seeks to identify attractive risk-reward investment opportunities with a focus on financing middle market investments. The Company is a fixed-term BDC, meaning it is an investment vehicle of defined duration. Following the initial closing, the Company will have an investment period (the “Investment Period”) of 18 months during which it may invest capital commitments and reinvest proceeds in line with the Company’s investment strategy. The term of the Company shall not extend beyond the 4 year anniversary of the end of the Investment Period.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation The following is a summary of significant accounting policies consistently followed by the Company in the preparation of its consolidated financial statements. The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Company is an investment company and accordingly applies specific accounting and financial reporting requirements under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, Financial Services-Investment Companies. The functional and reporting currency for the Company is the U.S. dollar. The interim consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Articles 6, 10 and 12 of Regulation S-X. Accordingly, certain disclosures accompanying the annual consolidated financial statements prepared in accordance with U.S. GAAP are omitted. In the opinion of management, all adjustments, consisting solely of normal recurring accruals considered necessary for the fair statement of financial statements for the interim period presented, have been included. The current period’s results of operations will not necessarily be indicative of results that ultimately may be achieved for the fiscal year ending December 31, 2024. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in these consolidated financial statements. Actual results could differ from those estimates. Principles of Consolidation The Company will generally consolidate any wholly or substantially owned subsidiary when the design and purpose of the subsidiary is to act as an extension of the Company’s investment operations and to facilitate the execution of the Company’s investment strategy. Accordingly, the Company consolidated the results of its wholly or substantially owned subsidiaries in its consolidated financial statements. Cash Cash as of June 30, 2024, includes cash held in banks. Income Taxes The Company intends to elect to be treated as a REIT under the Internal Revenue Code (the “Code”) beginning with the taxable year ending December 31, 2024. Furthermore, the Company intends to operate in such a manner as to qualify for taxation as a REIT under the applicable provisions of the Code so long as the Company’s board of trustees (the “Board of Trustees” or the “Board”) determines that REIT qualification remains in the Company’s best interest. The Company evaluates tax positions taken or expected to be taken in the course of preparing the Company’s tax returns to determine whether it is “more-likely-than-not” (i.e., greater than 50-percent) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. The Company did not record any tax provision in the current period. However, management’s conclusions regarding tax positions taken may be subject to review and adjustment at a later date based on factors including, but not limited to, examination by tax authorities on-going analysis of and changes to tax laws, regulations and interpretations thereof. Fair Value of Investments The Company applies fair value to all of its financial instruments in accordance with ASC Topic 820 - Fair Value Measurement and Disclosure (“ASC Topic 820”). ASC Topic 820 defines fair value, establishes a framework used to measure fair value and requires disclosures for fair value measurements. In accordance with ASC Topic 820, the Company has categorized its financial instruments carried at fair value, based on the priority of the valuation technique, into a three-level fair value hierarchy. Fair value is a market-based measure considered from the perspective of the market participant who holds the financial instrument rather than an entity-specific measure. Therefore, when market assumptions are not readily available, the Company’s own assumptions are set to reflect those that management believes market participants would use in pricing the financial instrument at the measurement date. Revenue Recognition Loan origination transactions are recorded as of the trade date for financial reporting purposes. All costs associated with consummated investments are included in the cost of such investments. Interest income and interest expense are recognized on an accrual basis. Interest income on debt instruments is accrued and recognized for those issuers who are currently paying in full or expected to pay in full. Loan origination fees, other upfront fees related to loan originations are capitalized as part of the underlying cost of the loans and accreted over the life of the loan into interest income. Upon prepayment of a loan or debt security, any prepayment premiums, unamortized upfront loan fees and unaccreted discounts are recorded as interest income in the current period. Organization and Offering Costs Organization costs consist of costs incurred to establish the Company and enable it legally to do business. Organization costs are expensed as incurred. Offering costs in connection with the offering of Common Shares of the Company are reimbursed by the Advisor and disclosed net of issuance of Common Shares in the Consolidated Statements of Net Assets (see Note 3- Related Party Transactions). The Company will bear the organization and offering expenses incurred in connection with the formation of the Company and the offering, including certain out of pocket expenses of the Advisor and its agents and affiliates (“Affiliate”) under the Company’s investment advisory agreement (the “Investment Advisory Agreement”). In addition, the Advisor may request reimbursement from the Company for the organization and offering costs it incurs on the Company’s behalf. New Accounting Pronouncements The Company does not believe any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the accompanying consolidated financial statements.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2024
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions Investment Advisory Agreement The Company entered into an Investment Advisory Agreement with the Advisor in which the Advisor, subject to the overall supervision of the Company’s Board of Trustees, manages the day-to-day operations of, and provides investment advisory services to the Company. Pursuant to the Investment Advisory Agreement with the Advisor, the Company pays the Advisor a fee for investment advisory and management services consisting of two components—a base management fee (the “Management Fee”) and an incentive fee (the “Incentive Fee”). The Management Fee is payable quarterly in arrears and is calculated at an annual rate of 0.50% based on the average value of the Company’s gross assets at the end of the two most recently completed quarters. The Incentive Fee shall be calculated and payable quarterly in arrears based on the Company’s pre-incentive fee net investment income for the immediately preceding quarter given that it exceeds a preferred return rate of 5.00% annually on net assets, which 100% of the dollar amount that exceeds the preferred return shall be payable to the Advisor. The Incentive Fee is subject to a “catch up” feature, which is intended to provide the Advisor with an incentive fee of 12.5% on all of the Company’s pre-incentive fee net investment income when the pre-incentive fee net investment income on net assets reaches or exceeds 5.71% annualized. The preferred return will be capped at 12.5% and catch up will have been achieved. On June 7, 2024 a Fee Waiver Agreement (“fee waiver”) was entered into between the Advisor and the Company. Under the terms of the fee waiver, (a) the Advisor shall waive its Management Fee indefinitely and (b) the Advisor shall waive its Incentive Fee for a period of 12 months after the initial closing of the Company’s private placement of Common Shares of beneficial interests. Administration Agreement The Company entered into an administration agreement with Benefit Street Partners (the “Administration Agreement”), pursuant to which Benefit Street Partners (in such capacity, the “Administrator”) provides the Company with office facilities and certain administrative services necessary for the Company to conduct its business. At the request of the Administrator, the Company may reimburse certain costs and expenses incurred in connection with this agreement. Expense Support and Conditional Reimbursement Agreement The Company has entered into an Expense Limitation Agreement with the Advisor. The Advisor agrees on a quarterly basis to reimburse the Company’s Specified Expenses (as defined below) to the extent that such annualized Specified Expenses in respect of the relevant quarter exceed 0.10% of the Company’s quarter-end net asset value (the “Expense Limitation”). Specified Expenses shall mean the Company’s initial organizational and offering costs as well as its total operating expenses, inclusive of any fees the Company has agreed to bear pursuant to 4(b) of the Administration Agreement between the Advisor and the Company, but excluding (1) expenses directly related to the interest costs and structuring costs for borrowing and line(s) of credit, taxes, litigation or extraordinary expenses; (2) any tax, litigation and extraordinary expenses related to any structuring, litigation or other actions taken by the Advisor to preserve or enhance the value of investments for the Company’s shareholders; and (3) the incentive fees. Due from Advisor Included in Due from Advisor within the Company’s Consolidated Statement of Assets and Liabilities is $0.3 million of incurred offering costs and $1.6 million of Specified Expenses reimbursed by the Advisor related to the Expense Limitation. The amounts for offering costs are disclosed on net basis and included in Issuance of Common Shares, net of offering costs and advisor reimbursement within the Consolidated Statements of Net Assets . Co-Investments

Investments

Investments	6 Months Ended
	Jun. 30, 2024
Schedule of Investments [Abstract]
Investments	Investments Under the 1940 Act, the Company is required to separately identify non-controlled investments where it owns 5% or more of a portfolio company’s outstanding voting securities and/or had the power to exercise control over the management or policies of such portfolio company as investments in “affiliated” companies. In addition, under the 1940 Act, the Company is required to separately identify investments where it owns more than 25% of a portfolio company’s outstanding voting securities and/or had the power to exercise control over the management or policies of such portfolio company as investments in “controlled” companies. Under the 1940 Act, “non-affiliated investments” are defined as investments that are neither controlled investments nor affiliated investments. Detailed information with respect to the Company’s non-controlled, non-affiliated; non-controlled, affiliated; and controlled affiliated investments is contained in the consolidated financial statements, including the Consolidated Schedule of Investments. The information in the tables below is presented on an aggregate portfolio basis, without regard to whether they are non-controlled, non-affiliated; non-controlled, affiliated; or controlled affiliated investments. The following table represents the Company's investment portfolio as of June 30, 2024: Investments at Cost Investments at Fair Value Senior Mortgage $ 87,829 $ 88,638 100.0 % Total $ 87,829 $ 88,638 100.0 % The following table shows the portfolio composition by industry grouping based on fair value at June 30, 2024: At June 30, 2024 Investments at Percentage of Multifamily $ 79,669 89.9 % Hospitality 8,969 10.1 % Total $ 88,638 100.0 % As of June 30, 2024, 100.0% of investments held were based in the United States.

Fair Value Measurement

Fair Value Measurement	6 Months Ended
	Jun. 30, 2024
Fair Value Disclosures [Abstract]
Fair Value Measurement	Fair Value Measurement In accordance with ASC Topic 820, fair value is defined as the price that the Company would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 also establishes a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability as of the reporting date. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs reflect the Company’s own assumptions about the assumptions that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. Each investment is assigned a level based upon the observability of the inputs which are significant to the overall valuation.The three-tier hierarchy of inputs is summarized below: • Level 1 – Quoted prices in active markets for identical investments. • Level 2 – Other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.). • Level 3 – Significant unobservable inputs (including the Company’s own assumptions in determining the fair value of investments at the reporting date). The level in the fair value hierarchy within which the fair value measurement is categorized in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement in its entirety. For this purpose, the significance of an input is assessed against the fair value measurement in its entirety. If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a Level 3 measurement. If a fair value measurement uses price data vendors or observable market price quotations, that measurement may be a Level 1 or Level 2 measurement. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgment and consideration of factors specific to the asset or liability. The determination of what constitutes “observable” requires significant judgment by the Company. The Company considers observable data to be market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market. Valuation of Investments Investments are valued at fair value as determined in good faith by the Advisor, subject to the oversight of the Board, based on input from management and independent valuation firms that have been engaged to assist in the valuation of portfolio investments without readily available market quotations. This valuation process is conducted at the end of each fiscal quarter. Investments for which market quotations are not readily available are valued at fair value as determined in good faith pursuant to Rule 2a-5 under the 1940 Act and ASC Topic 820. As a general principle, the fair value of a security or other asset is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Pursuant to Rule 2a-5, the Board has designated the Advisor as the valuation designee (“Valuation Designee”) for the Company to perform the fair value determination relating to all Company investments. The Advisor may carry out its designated responsibilities as Valuation Designee through various teams and committees. The Valuation Designee’s policies and procedures govern the Valuation Designee’s selection and application of methodologies for determining and calculating the fair value of Company investments. The Valuation Designee may value Company portfolio securities for which market quotations are not readily available and other Company assets utilizing inputs from pricing sources, quotation reporting systems, valuation agents and other third-party sources (together, “Pricing Sources”). The fair market value of the Company’s commercial real estate (“CRE”) loans and other real asset loan investments shall be determined by the Advisor, who has been appointed the Valuation Designee on a quarterly basis. Newly originated or acquired loan investments’ fair value in the month they are closed will approximate the par balance of the loan investment. For each quarter after the initial month in which a loan investment is closed, an independent third-party appointed by the Valuation Designee shall review and confirm the reasonableness of the Advisor’s valuation of each of the Company’s CRE loan and other real asset loan investments. Updated valuations of CRE loan and other real asset loan investments will reflect changes in interest rates, spreads, collateral value, loan tests (including loan impairment testing) and metrics, risk ratings, and anticipated liquidation timing and proceeds, among other items. The fair values shall generally be determined by discounting the future contractual cash flows to the present value using a current market interest rate or spread. The market rate shall generally be determined through consideration of the interest rates for debt of comparable quality and maturity, and, where applicable, the value of the underlying real estate investment. The fair values of loan investments based upon pricing data vendors or observable market price quotations are generally categorized as Level 1 or Level 2. Loan investments priced using internal models with significant unobservable inputs are categorized as Level 3. Fair Value Measurements Level 1 Level 2 Level 3 Total Senior Mortgage $ — $ — $ 88,638 $ 88,638 Total $ — $ — $ 88,638 $ 88,638 The below table presents a summary of changes in fair value of Level 3 assets by investment type (amounts in thousands): Senior Mortgage Total Balance as of March 11, 2024 $ — $ — Originations 88,638 88,638 Loan origination Fees (812) (812) Net accretion of discount 3 3 Net change in unrealized appreciation (depreciation) on investments 809 809 Balance as of June 30, 2024 $ 88,638 $ 88,638 The following table presents quantitative information about the significant unobservable inputs of the Company’s Level 3 financial instruments. The table is not intended to be all-inclusive but instead captures the significant unobservable inputs relevant to the Company’s determination of fair value (amounts in thousands). Range Asset Category Fair Value Primary Valuation Technique Unobservable Inputs Minimum Maximum Weighted Average Senior Mortgage $ 88,638 Recent Transaction Par value n/a n/a n/a Total $ 88,638

Secured Borrowings

Secured Borrowings	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
Secured Borrowings	Secured BorrowingsOn June 24, 2024, the Company’s wholly, consolidated subsidiary, FBRED BDC BB FLOAT, LLC (the “SPV”), entered into a master repurchase agreement (“agreement”), with the SPV as the seller, and Barclays Bank PLC as the purchaser. The aggregate commitments to purchase the loans under the agreement are $250 million. As of June 30, 2024, the Company has not entered into any borrowings under the agreement.

Commitments & Contingencies

Commitments & Contingencies	6 Months Ended
	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments & Contingencies	Commitments & Contingencies Commitments In the ordinary course of business, the Company may enter into future funding commitments. As of June 30, 2024, the Company had an unfunded commitment on a delayed draw term loan of $3.6 million. As of June 30, 2024, the Company’s unfunded commitments consisted of the following: Portfolio Company Name Investment Type Commitment Type Total Commitment Remaining Commitment AVR Eugene Hotel LLC Senior Mortgage Delayed Draw $ 12,598 $ 3,629 Total $ 12,598 $ 3,629 Litigation and Regulatory Matters In the ordinary course of business, the Company may become subject to litigation, claims, and regulatory matters. The Company has no knowledge of material legal or regulatory proceedings pending or known to be contemplated against the Company at this time. Indemnifications

Net Assets

Net Assets	6 Months Ended
	Jun. 30, 2024
Equity [Abstract]
Net Assets	Net Assets Equity Issuance The Company’s authorized shares consists of unlimited Shares of Common Shares, par value $0.001 per share. As of June 30, 2024, The Company had capital commitments totaling $526.5 million with unfunded commitments totaling $421.5 million and a percent called ratio of 19.9%. The following table summarizes the total shares issued and amount received related to capital drawdowns delivered pursuant to the Subscription Agreements for the period from March 11, 2024 (date of inception) to June 30, 2024: Share Issue Date Shares Issued Net Proceeds Received June 12, 2024 60 $ 2 June 20, 2024 4,199,999 104,999 Total Capital Drawdowns 4,200,059 $ 105,001 Distributions The Board did not declare a distribution for the period from March 11, 2024 (date of inception) to June 30, 2024.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 30, 2024
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share The following table sets forth the computation of basic and diluted earnings (loss) per Common Share for the three months ended June 30, 2024 and for the period from March 11, 2024 (date of inception) to June 30, 2024: For the three months ended June 30, 2024 For the period from March 11, 2024 (date of inception) to June 30, 2024 Basic and diluted Net increase in net assets resulting from operations $ 1,405 $ 1,009 Weighted average shares outstanding 512,254 512,254 Net increase in net assets resulting from operations per share $ 2.74 $ 1.97

Financial Highlights

Financial Highlights	6 Months Ended
	Jun. 30, 2024
Investment Company [Abstract]
Financial Highlights	Financial Highlights The following is a schedule of financial highlights for the period from March 11, 2024 (date of inception) to June 30, 2024: For the period from March 11, 2024 (date of inception) to June 30, 2024 Per share data: Net asset value, beginning of period $ — Net investment income (5) 0.39 Net realized and unrealized gain on investments (5) 1.58 Net increase in net assets resulting from operations (5) 1.97 Issuance of Common Shares 25.00 Net increase in net assets 26.97 Other (1) $ (1.73) Net asset value, end of period $ 25.24 Shares outstanding at end of period 4,200,059 Total return (2) 0.96 % Ratio/Supplemental data attributable to Common Shares: Total net assets attributable to Common Shares, end of period 106,010 Ratio of net investment income to average net assets attributable to Common Shares (3)(4) 1.00 % Ratio of total expenses to average net assets attributable to Common Shares (3)(4) 6.81 % Ratio of net expenses to average net assets attributable to Common Shares (3)(4) 0.13 % (1) Represents the impact of calculating certain per share amounts based on weighted average Common Shares outstanding during the period and certain per share amounts based on Common Shares outstanding as of period end. (2) Total return is calculated as the change in NAV per share during the period, plus distributions per share, if any, divided by the NAV per share at the beginning of the period. Total return is for the period indicated and has not been annualized. (3) Ratios are annualized for the period, except for expenses included in organizational costs. (4) Average net assets are computed by taking the average of our end of quarter net assets for each quarter in the reporting period. (5) The per share data was derived by using the weighted average shares outstanding during the period.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2024
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events The Company has evaluated subsequent events through the filing of this Form 10-Q and has determined that there have been no events that have occurred that would require adjustments to the Company’s disclosures in the consolidated financial statements, except as set forth below. On July 10, 2024, the Company issued 2,347,417.13 unregistered Common Shares of beneficial interest in the Company, par value $0.001 (the “Shares”) to certain investors pursuant to capital drawdown notices issued by the Company and sent to each of such investors for a total consideration of $60 million. The offer and sale of the Shares was exempt from the registration provisions of the Securities Act of 1933, as amended (the “Securities Act”), pursuant to Section 4(a)(2) of the Securities Act, Regulation D thereunder.

N-2

N-2 - $ / shares	6 Months Ended
	Jun. 30, 2024	Mar. 10, 2024
Cover [Abstract]
Entity Central Index Key	0002018545
Amendment Flag	false
Securities Act File Number	000-56653
Document Type	10-Q
Entity Registrant Name	FRANKLIN BSP REAL ESTATE DEBT BDC
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
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
General Description of Registrant [Abstract]
Investment Objectives and Practices [Text Block]	The Company’s investment objectives are to seek to provide high current income while maintaining downside protection. The Company will seek to invest in assets that will enable it to: • provide current income in the form of regular, stable cash distributions to achieve an attractive distribution yield; • preserve and protect invested capital, by primarily focusing on high-quality credit investments supported by current cash-flow and/or limited business plan risk in the underlying assets; • reduce downside risk through loans with relatively low loan-to-value ratios, meaning we generally invest in less risky loans with low interest rates which are backed by high-quality real assets, with a focus on residential lending and with meaningful borrower equity; and • provide an investment alternative for shareholders seeking to allocate a portion of their long-term investment portfolios to CRE debt with expected lower volatility than publicly traded securities and compelling risk-adjusted returns compared to fixed income alternatives. The Company intends to use its proceeds from its offering to finance the Company’s investment objectives. The Company’s investment strategy is to originate, acquire, finance and manage a portfolio of primarily CRE investments, focused on senior secured, CRE loans across a wide range of geography. The Company will focus its investments in the middle market, with loans in the range of $25—$100 million, across a mix of asset classes, but maintain a focus on multi-family lending. To a lesser extent, the Company may invest in, or originate, other real-estate related debt and equity investments, which may include subordinated debt, CMBS and CLOs The Company is a fixed-term BDC, meaning it is an investment vehicle of defined duration. Following the initial closing, the Company will have an Investment Period of 18 months during which it may invest capital commitments and reinvest proceeds in line with the Company’s investment strategy. The term of the Company shall not extend beyond the 4 year anniversary of the end of the Investment Period. We plan to conduct a private offering of our Common Shares in reliance on an exemption from the registration requirements of the Securities Act to investors that are (i) accredited investors (as defined in Regulation D under the Securities Act) and (ii) in the case of Common Shares sold outside the United States, to persons that are not “U.S. persons” (as defined in Regulation S under the Securities Act). At the closing of any private placement, each investor will make a Capital Commitment to purchase Common Shares pursuant to a Subscription Agreement entered into with us. Investors will be required to fund drawdowns to purchase shares of Common Shares up to the amount of their respective Capital Commitments each time we deliver the Drawdown Notice to the investors. We are not aware of any material trends or uncertainties, favorable or unfavorable, other than national economic conditions affecting real estate generally, that may be reasonably anticipated to have a material impact on either capital resources or the revenues or income to be derived from our real estate debt investments or real estate-related securities, other than those referred to in this Quarterly Report on Form 10-Q.
NAV Per Share	$ 25.24	$ 0

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The following is a summary of significant accounting policies consistently followed by the Company in the preparation of its consolidated financial statements. The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Company is an investment company and accordingly applies specific accounting and financial reporting requirements under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, Financial Services-Investment Companies. The functional and reporting currency for the Company is the U.S. dollar. The interim consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Articles 6, 10 and 12 of Regulation S-X. Accordingly, certain disclosures accompanying the annual consolidated financial statements prepared in accordance with U.S. GAAP are omitted. In the opinion of management, all adjustments, consisting solely of normal recurring accruals considered necessary for the fair statement of financial statements for the interim period presented, have been included. The current period’s results of operations will not necessarily be indicative of results that ultimately may be achieved for the fiscal year ending December 31, 2024.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in these consolidated financial statements. Actual results could differ from those estimates.
Principles of Consolidation	Principles of Consolidation The Company will generally consolidate any wholly or substantially owned subsidiary when the design and purpose of the subsidiary is to act as an extension of the Company’s investment operations and to facilitate the execution of the Company’s investment strategy. Accordingly, the Company consolidated the results of its wholly or substantially owned subsidiaries in its consolidated financial statements.
Income Taxes	Income Taxes The Company intends to elect to be treated as a REIT under the Internal Revenue Code (the “Code”) beginning with the taxable year ending December 31, 2024. Furthermore, the Company intends to operate in such a manner as to qualify for taxation as a REIT under the applicable provisions of the Code so long as the Company’s board of trustees (the “Board of Trustees” or the “Board”) determines that REIT qualification remains in the Company’s best interest. The Company evaluates tax positions taken or expected to be taken in the course of preparing the Company’s tax returns to determine whether it is “more-likely-than-not” (i.e., greater than 50-percent) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. The Company did not record any tax provision in the current period. However, management’s conclusions regarding tax positions taken may be subject to review and adjustment at a later date based on factors including, but not limited to, examination by tax authorities on-going analysis of and changes to tax laws, regulations and interpretations thereof.
Fair Value of Investments	Fair Value of Investments The Company applies fair value to all of its financial instruments in accordance with ASC Topic 820 - Fair Value Measurement and Disclosure (“ASC Topic 820”). ASC Topic 820 defines fair value, establishes a framework used to measure fair value and requires disclosures for fair value measurements. In accordance with ASC Topic 820, the Company has categorized its financial instruments carried at fair value, based on the priority of the valuation technique, into a three-level fair value hierarchy. Fair value is a market-based measure considered from the perspective of the market participant who holds the financial instrument rather than an entity-specific measure. Therefore, when market assumptions are not readily available, the Company’s own assumptions are set to reflect those that management believes market participants would use in pricing the financial instrument at the measurement date.
Revenue Recognition	Revenue Recognition Loan origination transactions are recorded as of the trade date for financial reporting purposes. All costs associated with consummated investments are included in the cost of such investments. Interest income and interest expense are recognized on an accrual basis. Interest income on debt instruments is accrued and recognized for those issuers who are currently paying in full or expected to pay in full. Loan origination fees, other upfront fees related to loan originations are capitalized as part of the underlying cost of the loans and accreted over the life of the loan into interest income. Upon prepayment of a loan or debt security, any prepayment premiums, unamortized upfront loan fees and unaccreted discounts are recorded as interest income in the current period.
Organization and Offering Costs	Organization and Offering Costs Organization costs consist of costs incurred to establish the Company and enable it legally to do business. Organization costs are expensed as incurred. Offering costs in connection with the offering of Common Shares of the Company are reimbursed by the Advisor and disclosed net of issuance of Common Shares in the Consolidated Statements of Net Assets (see Note 3- Related Party Transactions). The Company will bear the organization and offering expenses incurred in connection with the formation of the Company and the offering, including certain out of pocket expenses of the Advisor and its agents and affiliates (“Affiliate”) under the Company’s investment advisory agreement (the “Investment Advisory Agreement”). In addition, the Advisor may request reimbursement from the Company for the organization and offering costs it incurs on the Company’s behalf.
New Accounting Pronouncements	New Accounting Pronouncements The Company does not believe any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the accompanying consolidated financial statements.

Investments (Tables)

Investments (Tables)	6 Months Ended
	Jun. 30, 2024
Schedule of Investments [Abstract]
Investment Portfolio Composition by Type	The following table represents the Company's investment portfolio as of June 30, 2024: Investments at Cost Investments at Fair Value Senior Mortgage $ 87,829 $ 88,638 100.0 % Total $ 87,829 $ 88,638 100.0 % The following table shows the portfolio composition by industry grouping based on fair value at June 30, 2024: At June 30, 2024 Investments at Percentage of Multifamily $ 79,669 89.9 % Hospitality 8,969 10.1 % Total $ 88,638 100.0 %

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	6 Months Ended
	Jun. 30, 2024
Fair Value Disclosures [Abstract]
Fair Values of Loan Investments	The fair values of loan investments based upon pricing data vendors or observable market price quotations are generally categorized as Level 1 or Level 2. Loan investments priced using internal models with significant unobservable inputs are categorized as Level 3. Fair Value Measurements Level 1 Level 2 Level 3 Total Senior Mortgage $ — $ — $ 88,638 $ 88,638 Total $ — $ — $ 88,638 $ 88,638
Changes in Fair Value of Level 3 Assets by Investment Type	The below table presents a summary of changes in fair value of Level 3 assets by investment type (amounts in thousands): Senior Mortgage Total Balance as of March 11, 2024 $ — $ — Originations 88,638 88,638 Loan origination Fees (812) (812) Net accretion of discount 3 3 Net change in unrealized appreciation (depreciation) on investments 809 809 Balance as of June 30, 2024 $ 88,638 $ 88,638
Unobservable Inputs and Valuation Techniques	The following table presents quantitative information about the significant unobservable inputs of the Company’s Level 3 financial instruments. The table is not intended to be all-inclusive but instead captures the significant unobservable inputs relevant to the Company’s determination of fair value (amounts in thousands). Range Asset Category Fair Value Primary Valuation Technique Unobservable Inputs Minimum Maximum Weighted Average Senior Mortgage $ 88,638 Recent Transaction Par value n/a n/a n/a Total $ 88,638

Commitments & Contingencies (Ta

Commitments & Contingencies (Tables)	6 Months Ended
	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Unfunded Commitment	As of June 30, 2024, the Company’s unfunded commitments consisted of the following: Portfolio Company Name Investment Type Commitment Type Total Commitment Remaining Commitment AVR Eugene Hotel LLC Senior Mortgage Delayed Draw $ 12,598 $ 3,629 Total $ 12,598 $ 3,629

Net Assets (Tables)

Net Assets (Tables)	6 Months Ended
	Jun. 30, 2024
Equity [Abstract]
Shares Issued and Amount Received Related to Capital Drawdowns	The following table summarizes the total shares issued and amount received related to capital drawdowns delivered pursuant to the Subscription Agreements for the period from March 11, 2024 (date of inception) to June 30, 2024: Share Issue Date Shares Issued Net Proceeds Received June 12, 2024 60 $ 2 June 20, 2024 4,199,999 104,999 Total Capital Drawdowns 4,200,059 $ 105,001

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2024
Earnings Per Share [Abstract]
Basic and Diluted Earnings (Loss) per Common Share	The following table sets forth the computation of basic and diluted earnings (loss) per Common Share for the three months ended June 30, 2024 and for the period from March 11, 2024 (date of inception) to June 30, 2024: For the three months ended June 30, 2024 For the period from March 11, 2024 (date of inception) to June 30, 2024 Basic and diluted Net increase in net assets resulting from operations $ 1,405 $ 1,009 Weighted average shares outstanding 512,254 512,254 Net increase in net assets resulting from operations per share $ 2.74 $ 1.97

Financial Highlights (Tables)

Financial Highlights (Tables)	6 Months Ended
	Jun. 30, 2024
Investment Company [Abstract]
Financial Highlights	The following is a schedule of financial highlights for the period from March 11, 2024 (date of inception) to June 30, 2024: For the period from March 11, 2024 (date of inception) to June 30, 2024 Per share data: Net asset value, beginning of period $ — Net investment income (5) 0.39 Net realized and unrealized gain on investments (5) 1.58 Net increase in net assets resulting from operations (5) 1.97 Issuance of Common Shares 25.00 Net increase in net assets 26.97 Other (1) $ (1.73) Net asset value, end of period $ 25.24 Shares outstanding at end of period 4,200,059 Total return (2) 0.96 % Ratio/Supplemental data attributable to Common Shares: Total net assets attributable to Common Shares, end of period 106,010 Ratio of net investment income to average net assets attributable to Common Shares (3)(4) 1.00 % Ratio of total expenses to average net assets attributable to Common Shares (3)(4) 6.81 % Ratio of net expenses to average net assets attributable to Common Shares (3)(4) 0.13 % (1) Represents the impact of calculating certain per share amounts based on weighted average Common Shares outstanding during the period and certain per share amounts based on Common Shares outstanding as of period end. (2) Total return is calculated as the change in NAV per share during the period, plus distributions per share, if any, divided by the NAV per share at the beginning of the period. Total return is for the period indicated and has not been annualized. (3) Ratios are annualized for the period, except for expenses included in organizational costs. (4) Average net assets are computed by taking the average of our end of quarter net assets for each quarter in the reporting period. (5) The per share data was derived by using the weighted average shares outstanding during the period.

Organization (Details)

Organization (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Investment Company, Financial Highlights [Line Items]
Investment period	18 months
Fixed term following investment period	4 years
Minimum
Investment Company, Financial Highlights [Line Items]
Loan amount for investments	$ 25,000
Maximum
Investment Company, Financial Highlights [Line Items]
Loan amount for investments	$ 100,000

Related Party Transactions (Det

Related Party Transactions (Details) $ in Millions		6 Months Ended
	Jun. 07, 2024	Jun. 30, 2024 USD ($) quarterPeriod component
Related Party Transaction [Line Items]
Related party transaction, components (in components) | component		2
Related party transaction, quarter periods (in quarter periods) | quarterPeriod		2
Related party transaction, period	12 months
Quarterly Management Fee Rate
Related Party Transaction [Line Items]
Related party transaction, rate		0.50%
Incentive Fee Preferred Return Threshold
Related Party Transaction [Line Items]
Related party transaction, rate		5%
Incentive Fee Preferred Return Above Threshold
Related Party Transaction [Line Items]
Related party transaction, rate		100%
Incentive Rate
Related Party Transaction [Line Items]
Related party transaction, rate		12.50%
Incentive Rate, Trigger
Related Party Transaction [Line Items]
Related party transaction, rate		5.71%
Cap Incentive Rate
Related Party Transaction [Line Items]
Related party transaction, rate		12.50%
Reimbursable Expense, Threshold
Related Party Transaction [Line Items]
Related party transaction, rate		0.10%
Related Party
Related Party Transaction [Line Items]
Recovery of offering costs		$ 0.3
Reimbursable expense		$ 1.6

Investments - Investment Portfo

Investments - Investment Portfolio (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Schedule of Investments [Line Items]
Amortized cost	$ 87,829	[1],[2]
Investments at fair value	$ 88,638	[1],[2]
Investments, Total | Investment Concentration Risk
Schedule of Investments [Line Items]
Fair Value Percentage of Total Portfolio	100%
Senior Mortgage
Schedule of Investments [Line Items]
Amortized cost	$ 87,829
Investments at fair value	$ 88,638
Senior Mortgage | Investments, Total | Investment Concentration Risk
Schedule of Investments [Line Items]
Fair Value Percentage of Total Portfolio	100%
[1] All of the Company’s investments are Non-Control/Non-Affiliate investments. Non-Control/Non-Affiliate investments as defined by the 1940 Act, are those that are neither Control nor Affiliate investments and in which we own less than 25.0%/5.0% of the issued and outstanding voting securities.

Investments - Composition by In

Investments - Composition by Industry Grouping (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Schedule of Investments [Line Items]
Investments at fair value	$ 88,638	[1],[2]
Investments, Total | Industry Sector Concentration Risk
Schedule of Investments [Line Items]
Fair Value Percentage of Total Portfolio	100%
Multifamily
Schedule of Investments [Line Items]
Investments at fair value	$ 79,669
Multifamily | Investments, Total | Industry Sector Concentration Risk
Schedule of Investments [Line Items]
Fair Value Percentage of Total Portfolio	89.90%
Hospitality
Schedule of Investments [Line Items]
Investments at fair value	$ 8,969
Hospitality | Investments, Total | Industry Sector Concentration Risk
Schedule of Investments [Line Items]
Fair Value Percentage of Total Portfolio	10.10%
[1] All of the Company’s investments are Non-Control/Non-Affiliate investments. Non-Control/Non-Affiliate investments as defined by the 1940 Act, are those that are neither Control nor Affiliate investments and in which we own less than 25.0%/5.0% of the issued and outstanding voting securities.

Investments - Narrative (Detail

Investments - Narrative (Details)	6 Months Ended
	Jun. 30, 2024
Investments | Geographic Concentration Risk | UNITED STATES
Concentration Risk [Line Items]
Concentration risk	100%

Fair Value Measurement - Fair V

Fair Value Measurement - Fair Values of Loan Investments (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	$ 88,638	[1],[2]
Senior Mortgage
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	88,638
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	0
Level 1 | Senior Mortgage
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	0
Level 2 | Senior Mortgage
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	88,638
Level 3 | Senior Mortgage
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	$ 88,638
[1] All of the Company’s investments are Non-Control/Non-Affiliate investments. Non-Control/Non-Affiliate investments as defined by the 1940 Act, are those that are neither Control nor Affiliate investments and in which we own less than 25.0%/5.0% of the issued and outstanding voting securities.

Fair Value Measurement - Change

Fair Value Measurement - Changes in Fair Value of Level 3 Assets by Investment Type (Details) $ in Thousands	4 Months Ended
	Jun. 30, 2024 USD ($)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 0
Originations	88,638
Loan origination Fees	(812)
Net accretion of discount	3
Net change in unrealized appreciation (depreciation) on investments	809
Ending balance	88,638
Senior Mortgage
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	0
Originations	88,638
Loan origination Fees	(812)
Net accretion of discount	3
Net change in unrealized appreciation (depreciation) on investments	809
Ending balance	$ 88,638

Fair Value Measurement - Unobse

Fair Value Measurement - Unobservable Inputs and Valuation Techniques (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	$ 88,638	[1],[2]
Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	88,638
Senior Mortgage
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	88,638
Senior Mortgage | Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	$ 88,638
[1] All of the Company’s investments are Non-Control/Non-Affiliate investments. Non-Control/Non-Affiliate investments as defined by the 1940 Act, are those that are neither Control nor Affiliate investments and in which we own less than 25.0%/5.0% of the issued and outstanding voting securities.

Secured Borrowings (Details)

Secured Borrowings (Details) $ in Millions	Jun. 24, 2024 USD ($)
Debt Disclosure [Abstract]
Commitments to sell loans	$ 250

Commitments & Contingencies - N

Commitments & Contingencies - Narrative (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Delayed Draw Term Loan (DDTL)
Financial Support for Nonconsolidated Legal Entity [Line Items]
Unfunded commitment on delayed draw term loan	$ 3,629

Commitments & Contingencies - U

Commitments & Contingencies - Unfunded Commitment (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Delayed Draw Term Loan (DDTL)
Financial Support for Nonconsolidated Legal Entity [Line Items]
Total Commitment	$ 12,598
Remaining Commitment	3,629
Investment, Identifier [Axis]: AVR Eugene Hotel LLC, Senior Mortgage, Delayed Draw
Financial Support for Nonconsolidated Legal Entity [Line Items]
Total Commitment	12,598
Remaining Commitment	$ 3,629

Net Assets - Narrative (Details

Net Assets - Narrative (Details)	4 Months Ended	6 Months Ended
	Jun. 30, 2024 USD ($) $ / shares	Jun. 30, 2024 USD ($) $ / shares
Equity [Abstract]
Common stock, par value (in dollars per share) | $ / shares	$ 0.001	$ 0.001
Capital commitments		$ 526,500,000
Unfunded commitments		$ 421,500,000
Percent called ratio		19.90%
Dividend distribution	$ 0

Net Assets - Shares Issued and

Net Assets - Shares Issued and Amount Received Related to Capital Drawdowns (Details) - USD ($) $ in Thousands			3 Months Ended	4 Months Ended
	Jun. 20, 2024	Jun. 12, 2024	Jun. 30, 2024	Jun. 30, 2024
Equity [Abstract]
Shares Issued (in shares)	4,199,999	60	4,199,999	4,200,059
Net Proceeds Received	$ 104,999	$ 2	$ 105,001	$ 105,001

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	4 Months Ended
	Jun. 30, 2024	Jun. 30, 2024
Basic and diluted
Net increase in net assets resulting from operations	$ 1,405	$ 1,009
Weighted average shares outstanding (in shares)	512,254	512,254
Weighted average shares outstanding, diluted (in shares)	512,254	512,254
Net increase in net assets resulting from operations per share, basic (in dollars per share)	$ 2.74	$ 1.97
Net increase in net assets resulting from operations per share, diluted (in dollars per share)	$ 2.74	$ 1.97

Financial Highlights (Details)

Financial Highlights (Details) - USD ($)	4 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Mar. 10, 2024
Investment Company, Financial Highlights [Roll Forward]
Net asset value, beginning of period (in dollars per share)	$ 0
Net investment income (in dollars per share)	0.39
Net realized and unrealized gain on investments (in dollars per share)	1.58
Net increase in net assets resulting from operations (in dollars per share)	1.97
Issuance of Common shares (in dollars per share)	25
Net increase in net assets (in dollars per share)	26.97
Other (in dollars per share)	(1.73)
Net asset value, end of period (in dollars per share)	$ 25.24
Shares outstanding at end of period (in shares)	4,200,059
Total return	0.96%
Ratio/Supplemental data attributable to Common Shares:
Total net assets attributable to Common Shares, end of period	$ 106,010,000	$ (396,000)	$ 0
Ratio of net investment income to average net assets attributable to Common Shares	1%
Ratio of total expenses to average net assets attributable to Common Shares	6.81%
Ratio of net expenses to average net assets attributable to Common Shares	0.13%

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions	Aug. 07, 2024	Jul. 10, 2024	Jun. 30, 2024
Subsequent Event [Line Items]
Common stock, par value (in dollars per share)			$ 0.001
Subsequent Event
Subsequent Event [Line Items]
Common stock, par value (in dollars per share)		$ 0.001
Subsequent Event | Private Placement
Subsequent Event [Line Items]
Shares issued in sale of stock (in shares)	4,250,386.42	2,347,417.13
Consideration received in sale of stock	$ 110	$ 60