Franklin BSP Real Estate Credit BDC 10-Q 5 Nov 24 2024 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2024	Nov. 05, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 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	Q3
Current Fiscal Year End Date	--12-31

CONSOLIDATED STATEMENT OF ASSET

CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES	Sep. 30, 2024 USD ($) $ / shares
Assets
Investments at fair value	$ 523,045,000	[1],[2],[3],[4]
Cash	10,092,000
Interest and fees receivable	1,383,000
Due from advisor	3,267,000
Deferred financing costs	769,000
Total assets	538,556,000
Liabilities
Repurchase agreements	248,295,000
Accrued administration fee	1,045,000
Accrued organizational costs	585,000
Accrued offering costs	335,000
Interest payable	652,000
Directors’ fees payable	79,000
Other payable	1,448,000
Total liabilities	252,439,000
Commitments & Contingencies (Note 7)
Net Assets
Common Shares, $0.001 par value, unlimited shares authorized, 10,797,864 shares issued and outstanding	11,000
Paid-in-capital in excess of par value	274,990,000
Distributable earnings (loss)	11,116,000
Total net assets	286,117,000
Total liabilities and total net assets	$ 538,556,000
Net asset value per share (in dollars per share) | $ / shares	$ 26.50
[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.

CONSOLIDATED STATEMENT OF ASS_2

CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES (Parenthetical) $ in Thousands	Sep. 30, 2024 USD ($) $ / shares shares
Assets
Investments at fair value | $	$ 517,523	[1],[2],[3],[4]
Net Assets
Common stock, par value (in dollars per share) | $ / shares	$ 0.001
Common stock, issued (in shares)	10,797,864
Common stock, outstanding (in shares)	10,797,864
[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.

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended	7 Months Ended
	Sep. 30, 2024	Sep. 30, 2024
Investment Income
Interest income	$ 7,207	$ 7,433
Fees and other income	312	312
Total investment income	7,519	7,745
Operating Expenses
Interest and debt fees	2,055	2,055
Management fees	405	488
Administration fees	605	1,045
Directors’ fees	79	79
Organizational costs	0	585
Other expenses	1,398	2,012
Total expenses	4,542	6,264
Less: waivers (Note 3)	(2,370)	(4,066)
Net expenses	2,172	2,198
Net investment income	5,347	5,547
Net realized gain (loss) from:
Non-controlled, non-affiliated investments	47	47
Change in unrealized appreciation (depreciation) from:
Non-controlled, non-affiliated investments	4,713	5,522
Total net realized and unrealized appreciation on investments	4,760	5,569
Net increase in net assets resulting from operations	$ 10,107	$ 11,116
Weighted average shares outstanding (in shares)	8,858,831	4,893,281
Net Investment Income per share, basic (in dollars per share)	$ 0.60	$ 1.13
Net Investment Income per share, diluted (in dollars per share)	0.60	1.13
Net increase in net assets resulting from operations per share, basic (in dollars per share)	1.14	2.27
Net increase in net assets resulting from operations per share, diluted (in dollars per share)	$ 1.14	$ 2.27

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS - USD ($)	3 Months Ended	7 Months Ended
	Sep. 30, 2024	Sep. 30, 2024
Increase in net assets resulting from operations:
Net investment income	$ 5,347,000	$ 5,547,000
Net realized gain on investments	47,000	47,000
Net change in unrealized appreciation	4,713,000	5,522,000
Net increase in net assets resulting from operations	10,107,000	11,116,000
Capital share transactions
Issuance of Common Shares, net of offering costs and advisor reimbursement	170,000,000	275,001,000
Net increase in net assets resulting from capital share transactions	170,000,000	275,001,000
Total increase in net assets	180,107,000	286,117,000
Net assets at beginning of period	106,010,000	0
Net assets at end of period	$ 286,117,000	$ 286,117,000
Capital share activity
Shares issued (in shares)	6,597,805	10,797,864
Net increase in shares outstanding (in shares)	6,597,805	10,797,864

CONSOLIDATED STATEMENT OF CASH

CONSOLIDATED STATEMENT OF CASH FLOWS $ in Thousands	7 Months Ended
	Sep. 30, 2024 USD ($)
Operating activities:
Net increase in net assets from operations	$ 11,116
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used for) operating activities:
Origination of loans	(508,992)
Loan origination fees collected	5,595
Net (accretion) on investments	(286)
Purchases of real estate securities	(35,000)
Net change in unrealized appreciation on investments	286
Discounts on real estate securities	88
Sales of real estate securities	21,119
Net realized gain on sale of real estate securities	(47)
Net change in unrealized appreciation on investments	(5,522)
(Increase) decrease in operating assets:
Interest and fees receivable	(1,383)
Due from advisor	(2,932)
Increase (decrease) in operating liabilities:
Accrued administration fee	1,045
Accrued organizational costs	585
Interest payable	652
Directors' fees payable	79
Other payable	1,448
Net cash provided by (used in) operating activities	(512,435)
Financing activities:
Payments of financing costs	(769)
Proceeds on repurchase agreements	248,295
Proceeds from issuance of common shares	275,001
Net cash provided by (used in) financing activities	522,527
Net increase (decrease) in cash	10,092
Cash, beginning of period	0
Cash, end of period	10,092
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	9 Months Ended
	Sep. 30, 2024 USD ($)
Schedule of Investments [Line Items]
Amortized Cost	$ 517,523	[1],[2],[3],[4]
Fair Value	$ 523,045	[1],[2],[3],[4]
% of Net Assets	182.80%	[1],[2],[3],[4]
Qualifying Concentration Risk | Assets, Total | Qualifying Investment Assets
Schedule of Investments [Line Items]
Concentration risk	100%
Senior Mortgage
Schedule of Investments [Line Items]
Amortized Cost	$ 494,644
Fair Value	$ 499,983
% of Net Assets	174.80%
Hospitality, Senior Mortgage
Schedule of Investments [Line Items]
Amortized Cost	$ 90,610
Fair Value	$ 91,667
% of Net Assets	32%
Multifamily, Senior Mortgage
Schedule of Investments [Line Items]
Amortized Cost	$ 388,647
Fair Value	$ 392,760
% of Net Assets	137.40%
Self Storage, Senior Mortgage
Schedule of Investments [Line Items]
Amortized Cost	$ 15,387
Fair Value	$ 15,556
% of Net Assets	5.40%
Mezzanine
Schedule of Investments [Line Items]
Amortized Cost	$ 9,038
Fair Value	$ 9,181
% of Net Assets	3.20%
Multifamily, Mezzanine
Schedule of Investments [Line Items]
Amortized Cost	$ 9,038
Fair Value	$ 9,181
% of Net Assets	3.20%
Real Estate Securities
Schedule of Investments [Line Items]
Amortized Cost	$ 13,841
Fair Value	$ 13,881
% of Net Assets	4.80%
Industrials, Real Estate Securities
Schedule of Investments [Line Items]
Amortized Cost	$ 4,988
Fair Value	$ 5,002
% of Net Assets	1.70%
Multifamily, Real Estate Securities
Schedule of Investments [Line Items]
Amortized Cost	$ 8,853
Fair Value	$ 8,879
% of Net Assets	3.10%
Investment, Identifier [Axis]: 26 W 9th Street LLC, Multifamily, Mezzanine
Schedule of Investments [Line Items]
Spread Above Reference Rate	12.75%	[5],[6],[7],[8]
Interest Rate	17.60%	[6],[7],[8],[9]
Par Amount	$ 1,727	[6],[7],[8]
Amortized Cost	1,702	[6],[7],[8]
Fair Value	$ 1,727	[6],[7],[8]
% of Net Assets	0.60%	[6],[7],[8]
Investment, Identifier [Axis]: 26 W 9th Street LLC, Multifamily, Senior Mortgage
Schedule of Investments [Line Items]
Spread Above Reference Rate	5.25%	[5],[6],[7],[8]
Interest Rate	10.10%	[6],[7],[8],[9]
Par Amount	$ 15,440	[6],[7],[8]
Amortized Cost	15,221	[6],[7],[8]
Fair Value	$ 15,440	[6],[7],[8]
% of Net Assets	5.40%	[6],[7],[8]
Investment, Identifier [Axis]: 68 East Avenue Austin, LLC, Hospitality
Schedule of Investments [Line Items]
Spread Above Reference Rate	4%	[5],[6],[8],[10]
Interest Rate	8.85%	[6],[8],[9],[10]
Par Amount	$ 22,320	[6],[8],[10]
Amortized Cost	22,107	[6],[8],[10]
Fair Value	$ 22,462	[6],[8],[10]
% of Net Assets	7.90%	[6],[8],[10]
Investment, Identifier [Axis]: ALP Delaware, LLC, Multifamily
Schedule of Investments [Line Items]
Spread Above Reference Rate	3.05%	[5],[6],[8],[11]
Interest Rate	7.90%	[6],[8],[9],[11]
Par Amount	$ 21,219	[6],[8],[11]
Amortized Cost	21,026	[6],[8],[11]
Fair Value	$ 21,219	[6],[8],[11]
% of Net Assets	7.40%	[6],[8],[11]
Investment, Identifier [Axis]: AVR Eugene Hotel LLC, Hospitality
Schedule of Investments [Line Items]
Spread Above Reference Rate	4.50%	[5],[6],[7],[8]
Interest Rate	9.35%	[6],[7],[8],[9]
Par Amount	$ 8,969	[6],[7],[8]
Amortized Cost	8,855	[6],[7],[8]
Fair Value	$ 8,969	[6],[7],[8]
% of Net Assets	3.10%	[6],[7],[8]
Investment, Identifier [Axis]: Admiral's Cove Holdings LLC , Multifamily
Schedule of Investments [Line Items]
Spread Above Reference Rate	2.75%	[5],[6],[8],[12]
Interest Rate	7.60%	[6],[8],[9],[12]
Par Amount	$ 46,837	[6],[8],[12]
Amortized Cost	46,403	[6],[8],[12]
Fair Value	$ 46,837	[6],[8],[12]
% of Net Assets	16.40%	[6],[8],[12]
Investment, Identifier [Axis]: Admiral's Cove Holdings Mezz LLC, Multifamily
Schedule of Investments [Line Items]
Spread Above Reference Rate	6.75%	[5],[6],[8],[12]
Interest Rate	11.60%	[6],[8],[9],[12]
Par Amount	$ 3,163	[6],[8],[12]
Amortized Cost	3,132	[6],[8],[12]
Fair Value	$ 3,163	[6],[8],[12]
% of Net Assets	1.10%	[6],[8],[12]
Investment, Identifier [Axis]: Blue Suede Hospitality Group, Hospitality
Schedule of Investments [Line Items]
Spread Above Reference Rate	4.40%	[5],[6],[7],[8],[10]
Interest Rate	9.25%	[6],[7],[8],[9],[10]
Par Amount	$ 18,336	[6],[7],[8],[10]
Amortized Cost	18,150	[6],[7],[8],[10]
Fair Value	$ 18,336	[6],[7],[8],[10]
% of Net Assets	6.40%	[6],[7],[8],[10]
Investment, Identifier [Axis]: CRP/RPM LYV Broadway GP, LLC, Multifamily
Schedule of Investments [Line Items]
Spread Above Reference Rate	2.80%	[5],[6],[8],[12]
Interest Rate	7.65%	[6],[8],[9],[12]
Par Amount	$ 44,250	[6],[8],[12]
Amortized Cost	43,933	[6],[8],[12]
Fair Value	$ 44,250	[6],[8],[12]
% of Net Assets	15.50%	[6],[8],[12]
Investment, Identifier [Axis]: CS Harvey, LTD., Multifamily
Schedule of Investments [Line Items]
Spread Above Reference Rate	2.90%	[5],[6],[8]
Interest Rate	7.75%	[6],[8],[9]
Par Amount	$ 35,200	[6],[8]
Amortized Cost	34,850	[6],[8]
Fair Value	$ 35,200	[6],[8]
% of Net Assets	12.30%	[6],[8]
Investment, Identifier [Axis]: DBGS 2024-SBL D, Industrials
Schedule of Investments [Line Items]
Spread Above Reference Rate	3.54%	[5],[6],[13]
Interest Rate	8.39%	[6],[9],[13]
Par Amount	$ 5,000	[6],[13]
Amortized Cost	4,988	[6],[13]
Fair Value	$ 5,002	[6],[13]
% of Net Assets	1.70%	[6],[13]
Investment, Identifier [Axis]: DK LDOI IV Aggregate Holdco LP, Hospitality
Schedule of Investments [Line Items]
Spread Above Reference Rate	4.03%	[5],[6],[8],[10]
Interest Rate	8.88%	[6],[8],[9],[10]
Par Amount	$ 41,900	[6],[8],[10]
Amortized Cost	41,498	[6],[8],[10]
Fair Value	$ 41,900	[6],[8],[10]
% of Net Assets	14.60%	[6],[8],[10]
Investment, Identifier [Axis]: Grand Cypress Apartments, LLC, Multifamily
Schedule of Investments [Line Items]
Spread Above Reference Rate	2.75%	[5],[6],[7],[8],[12]
Interest Rate	7.60%	[6],[7],[8],[9],[12]
Par Amount	$ 46,880	[6],[7],[8],[12]
Amortized Cost	46,511	[6],[7],[8],[12]
Fair Value	$ 46,880	[6],[7],[8],[12]
% of Net Assets	16.40%	[6],[7],[8],[12]
Investment, Identifier [Axis]: Hallandale Oasis 2019 Holdings LLC, Multifamily
Schedule of Investments [Line Items]
Spread Above Reference Rate	11%	[5],[6],[7],[8]
Interest Rate	15.85%	[6],[7],[8],[9]
Par Amount	$ 4,292	[6],[7],[8]
Amortized Cost	4,204	[6],[7],[8]
Fair Value	$ 4,291	[6],[7],[8]
% of Net Assets	1.50%	[6],[7],[8]
Investment, Identifier [Axis]: Hallandale Oasis 2019 LLC, Multifamily
Schedule of Investments [Line Items]
Spread Above Reference Rate	8.30%	[5],[6],[7],[8]
Interest Rate	13.15%	[6],[7],[8],[9]
Par Amount	$ 5,499	[6],[7],[8]
Amortized Cost	5,286	[6],[7],[8]
Fair Value	$ 5,499	[6],[7],[8]
% of Net Assets	1.90%	[6],[7],[8]
Investment, Identifier [Axis]: NYC 2024-3ELV C, Multifamily
Schedule of Investments [Line Items]
Spread Above Reference Rate	2.84%	[5],[6],[13]
Interest Rate	7.69%	[6],[9],[13]
Par Amount	$ 8,875	[6],[13]
Amortized Cost	8,853	[6],[13]
Fair Value	$ 8,879	[6],[13]
% of Net Assets	3.10%	[6],[13]
Investment, Identifier [Axis]: Paraiso 256, LLC, Multifamily
Schedule of Investments [Line Items]
Spread Above Reference Rate	2.75%	[5],[6],[7],[8],[12]
Interest Rate	7.60%	[6],[7],[8],[9],[12]
Par Amount	$ 26,295	[6],[7],[8],[12]
Amortized Cost	26,075	[6],[7],[8],[12]
Fair Value	$ 26,295	[6],[7],[8],[12]
% of Net Assets	9.20%	[6],[7],[8],[12]
Investment, Identifier [Axis]: Racetrack Properties I, LLC, Multifamily
Schedule of Investments [Line Items]
Spread Above Reference Rate	2.95%	[5],[6],[8]
Interest Rate	7.80%	[6],[8],[9]
Par Amount	$ 44,300	[6],[8]
Amortized Cost	43,859	[6],[8]
Fair Value	$ 44,300	[6],[8]
% of Net Assets	15.50%	[6],[8]
Investment, Identifier [Axis]: SL 418, LLC, Multifamily
Schedule of Investments [Line Items]
Spread Above Reference Rate	2.75%	[5],[6],[7],[8],[12]
Interest Rate	7.60%	[6],[7],[8],[9],[12]
Par Amount	$ 46,385	[6],[7],[8],[12]
Amortized Cost	46,026	[6],[7],[8],[12]
Fair Value	$ 46,385	[6],[7],[8],[12]
% of Net Assets	16.20%	[6],[7],[8],[12]
Investment, Identifier [Axis]: Silver Star Delray, LLC, Self Storage
Schedule of Investments [Line Items]
Spread Above Reference Rate	3.50%	[5],[6],[8],[12]
Interest Rate	8.35%	[6],[8],[9],[12]
Par Amount	$ 15,530	[6],[8],[12]
Amortized Cost	15,387	[6],[8],[12]
Fair Value	$ 15,556	[6],[8],[12]
% of Net Assets	5.40%	[6],[8],[12]
Investment, Identifier [Axis]: Smart Living Texas City MM, LLC, Multifamily
Schedule of Investments [Line Items]
Spread Above Reference Rate	3.80%	[5],[6],[8],[12]
Interest Rate	8.65%	[6],[8],[9],[12]
Par Amount	$ 14,200	[6],[8],[12]
Amortized Cost	14,089	[6],[8],[12]
Fair Value	$ 14,200	[6],[8],[12]
% of Net Assets	5%	[6],[8],[12]
Investment, Identifier [Axis]: VCP Manager LLC, Multifamily
Schedule of Investments [Line Items]
Spread Above Reference Rate	3.10%	[5],[6],[8]
Interest Rate	7.95%	[6],[8],[9]
Par Amount	$ 29,380	[6],[8]
Amortized Cost	29,091	[6],[8]
Fair Value	$ 29,380	[6],[8]
% of Net Assets	10.30%	[6],[8]
Investment, Identifier [Axis]: WHK Waterfront Urban Renewal LLC, Multifamily
Schedule of Investments [Line Items]
Spread Above Reference Rate	5.50%	[5],[6],[7],[8]
Interest Rate	10.35%	[6],[7],[8],[9]
Par Amount	$ 3,190	[6],[7],[8]
Amortized Cost	2,730	[6],[7],[8]
Fair Value	$ 3,195	[6],[7],[8]
% of Net Assets	1.10%	[6],[7],[8]
Investment, Identifier [Axis]: Woodbine MF TIC 1 LLC, Multifamily
Schedule of Investments [Line Items]
Spread Above Reference Rate	2.75%	[5],[6],[8],[10]
Interest Rate	7.60%	[6],[8],[9],[10]
Par Amount	$ 13,680	[6],[8],[10]
Amortized Cost	13,547	[6],[8],[10]
Fair Value	$ 13,680	[6],[8],[10]
% of Net Assets	4.80%	[6],[8],[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. 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 September 30, 2024. As of September 30, 2024, rates for 1M SOFR, 3M SOFR, 6M SOFR, 12M SOFR are 4.85%, 4.59%, 4.25%, and 3.78%, respectively. Certain investments are subject to a SOFR floor. Note 3 - Related Party Transactions. Note 7 Note 5 - Fair Value Measurement. Note 6 ). Note 6 Note 6 Note 6

Organization

Organization	9 Months Ended
	Sep. 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	9 Months Ended
	Sep. 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 September 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 Instruments 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 Changes In 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. Repurchase Agreements Real estate securities sold under repurchase agreements have been treated as collateralized financing transactions because the Company maintains effective control over the transferred securities. Commercial mortgage loans and real estate securities financed through repurchase agreements remain in the Consolidated Statement of Assets and Liabilities as an asset and cash received from the purchaser is recorded as a liability. Interest paid in accordance with repurchase agreements is recorded in interest and debt fees in the Consolidated Statements of Operations. Deferred Financing Costs The deferred financing costs related to the Company's various Master Repurchase Agreements are included in Deferred financing costs in the Consolidated Statement of Assets and Liabilities. Deferred financing costs are amortized over the terms of the respective financing agreement using the straight line method and included in Interest and debt fees on the Consolidated Statements of Operations. Recently Issued Accounting Pronouncements In November 2023, the FASB issued Accounting Standard Update (“ASU”) No. 2023-07, “Improvements to Reportable Segment Disclosures.” This ASU requires enhanced disclosures about significant segment expenses. In addition, the ASU requires specific disclosures related to the title and position of the individual (or the name of the group or committee) identified as the Chief Operating Decision Maker (“CODM”); and an explanation of how the CODM uses the reported measures of segment profit or loss in assessing segment performance and deciding how to allocate resources. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, under a retrospective approach. The Company is assessing the impact of the new ASU on its consolidated financial statements.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 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 $0.2 million of incurred offering costs and $3.1 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 Changes in Net Assets . Co-Investments

Investments

Investments	9 Months Ended
	Sep. 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 September 30, 2024: Investments at Cost Investments at Fair Value Senior Mortgage $ 494,644 $ 499,983 95.5 % Mezzanine 9,038 9,181 1.8 % Real Estate Securities 13,841 13,881 2.7 % Total $ 517,523 $ 523,045 100.0 % The following table shows the investment portfolio composition by industry grouping based on fair value at September 30, 2024: At September 30, 2024 Investments at Percentage of Multifamily $ 410,820 78.5 % Hospitality 91,667 17.5 % Self Storage 15,556 3.0 % Industrials 5,002 1.0 % Total $ 523,045 100.0 % As of September 30, 2024, 100% of investments held were based in the United States.

Fair Value Measurement

Fair Value Measurement	9 Months Ended
	Sep. 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 are valued by the Company’s independent valuation firm and will usually approximate the par value 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. The fair value of our real estate securities are determined using market-based inputs provided by external pricing vendors. The vendors utilize observable market data, including recent trades, benchmark indices, and market yield curves, to estimate valuations. The Company performs periodic reviews to ensure that the pricing sources and methodologies used are consistent. The real estate securities are generally categorized as Level 2. Fair Value Measurements Level 1 Level 2 Level 3 Total Senior Mortgage $ — $ — $ 499,983 $ 499,983 Mezzanine — — 9,181 9,181 Real Estate Securities — 13,881 — 13,881 Total $ — $ 13,881 $ 509,164 $ 523,045 The below tables present a summary of changes in fair value of Level 3 assets by investment type (amounts in thousands): Senior Mortgage Mezzanine Total Balance as of June 30, 2024 $ 88,638 $ — $ 88,638 Loan originations 411,171 9,183 420,354 Loan origination fees (4,633) (150) (4,783) Net accretion of discount 277 6 283 Net change in unrealized appreciation (depreciation) on investments 4,530 142 4,672 Balance as of September 30, 2024 $ 499,983 $ 9,181 $ 509,164 Senior Mortgage Mezzanine Total Balance as of March 11, 2024 $ — $ — $ — Loan originations 499,809 9,183 508,992 Loan origination fees (5,445) (150) (5,595) Net accretion of discount 280 6 286 Net change in unrealized appreciation (depreciation) on investments 5,339 142 5,481 Balance as of September 30, 2024 $ 499,983 $ 9,181 $ 509,164 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 $ 228,441 Recent Transaction n/a n/a n/a n/a Senior Mortgage 271,542 DCF Method Discount Rate 2.65% 8.30% 3.62% Mezzanine 9,181 DCF Method Discount Rate 6.75% 12.75% 9.87% Total $ 509,164

Repurchase Agreements

Repurchase Agreements	9 Months Ended
	Sep. 30, 2024
Broker-Dealer [Abstract]
Repurchase Agreements	Repurchase Agreements On June 24, 2024, the Company’s wholly-owned, consolidated subsidiary, FBRED BDC BB FLOAT, LLC (“Barclays SPV”), entered into a master repurchase agreement (the “Barclays Agreement”), with the Barclays SPV as the seller, and Barclays Bank PLC as the purchaser. The aggregate commitments to purchase the loans under the Barclays Agreement are $250 million. Obligations under the Barclays SPV are secured by a first priority security interest in all of the loans pledged under Barclays SPV. The obligations of Barclays SPV under the Barclays Agreement are nonrecourse to the Company. Any amounts borrowed under the Barclays Agreement will mature, and will be due and payable, on the maturity date, which is June 24, 2027. The Barclays Agreement bore interest at one-month SOFR plus an average spread of 1.64%. On July 3, 2024, the Company’s wholly-owned, consolidated subsidiary, FBRED BDC High Yield Securities, LLC (“JPM Repo SPV”), entered into a master repurchase agreement (the “JPM Repo Agreement”), with the JPM Repo SPV as the seller, and J.P. Morgan Securities LLC as the purchaser. There is no maximum aggregate commitments to purchase real estate securities under the JPM Repo Agreement. Obligations under the JPM Repo SPV are secured by a first priority security interest in all of the real estate securities pledged under JPM Repo SPV. The obligations of JPM Repo SPV under the JPM Repo Agreement are nonrecourse to the Company. Any amounts borrowed under the JPM Repo Agreement will mature, and will be due and payable when the pledged real estate securities mature or are sold by the Company. The JPM Repo Agreement bore interest at one-month SOFR plus an average spread of 0.97%. On August 14, 2024, the Company’s wholly-owned, consolidated subsidiary, FBRED BDC JPM Seller, LLC (“JPM SPV”), entered into a master repurchase agreement (the “JPM Agreement”), with the JPM SPV as the seller, and JPMorgan Chase Bank, National Association as the purchaser. The aggregate commitments to purchase the loans under the JPM Agreement are $500 million. Obligations under the JPM SPV are secured by a first priority security interest in all of the loans pledged under JPM SPV. The obligations of JPM SPV under the JPM Agreement are nonrecourse to the Company. Any amounts borrowed under the JPM Agreement will mature, and will be due and payable, on the maturity date, which is August 14, 2026. The JPM Agreement bore interest at one-month SOFR plus an average spread of 1.81%. On August 15, 2024, the Company’s wholly-owned, consolidated subsidiary, FBRED BDC Landings Finance, LLC (“Webster SPV”), entered into a master repurchase agreement (the “Webster Agreement”), with the Webster SPV as the seller, and Webster Bank, National Associate as the purchaser. The aggregate commitment to purchase a loan under the agreement is $15.9 million. Obligations under the Webster SPV are secured by a first priority security interest in the loan pledged under Webster SPV. The obligations of Webster SPV under the Webster Agreement are nonrecourse to the Company. Any amounts borrowed under the Webster Agreement will mature, and will be due and payable, on the maturity date, which is July 9, 2026. The Webster Agreement bore interest at one-month SOFR plus a spread of 1.95%. The following table represents the Company's repurchase agreements as of September 30, 2024: Maturity Date Interest Expense Incurred Ending Weighted Average Interest Rate Amount Pledged Amount per Consolidated Statements of Assets and Liabilities FBRED BDC BB FLOAT, LLC (“Barclays SPV”) 6/24/2027 $ 1,318 6.97 % $ 243,423 $ 160,136 FBRED BDC High Yield Securities, LLC ("JPM Repo SPV") N/A 115 6.32 % 13,875 11,534 FBRED BDC JPM Seller, LLC ("JPM SPV") 8/14/2026 342 7.23 % 96,236 60,711 FBRED BDC Landings Finance, LLC (“Webster SPV”) 7/9/2026 51 7.24 % 21,219 15,914 Total $ 1,826 7.02 % $ 374,753 $ 248,295 The combined weighted average borrowings outstanding was $47.5 million for the period ended September 30, 2024. In accordance with the 1940 Act, with certain limitations, the Company is allowed to borrow amounts such that its asset coverage, as defined in the 1940 Act, is at least 150% after such borrowing. On April 8, 2024, the Company’s sole initial shareholder approved the adoption of this 150% threshold pursuant to Section 61(a)(2) of the 1940 Act. As of September 30, 2024, the Company’s asset coverage ratio based on the aggregate amount outstanding of senior securities was 215%. At September 30, 2024, the carrying amount of the Company's repurchase agreements approximated their fair value. The fair values of the Company's debt obligations are determined in accordance with ASC 820, which defines fair value in terms of the price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. The fair value of the Company's repurchase agreements is estimated based upon market interest rates for the Company's own borrowings or entities with similar credit risk, adjusted for nonperformance risk, if any. As of September 30, 2024, the Company's borrowings would be deemed to be Level 3, as defined in Note 5

Commitments & Contingencies

Commitments & Contingencies	9 Months Ended
	Sep. 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 September 30, 2024, the Company had unfunded commitments on a delayed draw term loan of $112.7 million. As of September 30, 2024, the Company’s unfunded commitments consisted of the following: Portfolio Company Name Investment Type Commitment Type Total Commitment Remaining Commitment 26 W 9th Street LLC Senior Mortgage Delayed Draw $ 25,210 $ 9,770 26 W 9th Street LLC Mezzanine Delayed Draw 2,801 1,074 AVR Eugene Hotel LLC Senior Mortgage Delayed Draw 12,598 3,629 Blue Suede Hospitality Group Senior Mortgage Delayed Draw 19,510 1,174 Grand Cypress Apartments, LLC Senior Mortgage Delayed Draw 50,000 3,120 Hallandale Oasis 2019 LLC Senior Mortgage Delayed Draw 23,098 17,599 Hallandale Oasis 2019 Holdings LLC Mezzanine Delayed Draw 8,772 4,480 Paraiso 256, LLC Senior Mortgage Delayed Draw 29,896 3,601 SL 418, LLC Senior Mortgage Delayed Draw 48,701 2,316 WHK Waterfront Urban Renewal LLC Senior Mortgage Delayed Draw 50,000 46,810 WHK Waterfront Mezz LLC Mezzanine Delayed Draw 19,091 19,091 Total $ 289,677 $ 112,664 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	9 Months Ended
	Sep. 30, 2024
Equity [Abstract]
Net Assets	Net Assets Equity Issuance The Company has the authority to issue an unlimited number of Common Shares at $0.001 per share par value. As of September 30, 2024, The Company had capital commitments totaling $526.5 million with unfunded commitments totaling $251.5 million and a percent called ratio of 52.2%. 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 September 30, 2024: Share Issue Date Shares Issued Net Proceeds Received June 12, 2024 60 $ 2 June 20, 2024 4,199,999 104,999 July 10, 2024 2,347,417 60,000 August 7, 2024 4,250,388 110,000 Total Capital Drawdowns 10,797,864 $ 275,001 Distributions The Board did not declare a distribution for the period from March 11, 2024 (date of inception) to September 30, 2024.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 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 September 30, 2024 and for the period from March 11, 2024 (date of inception) to September 30, 2024: For the three months ended September 30, 2024 For the period from March 11, 2024 (date of inception) to September 30, 2024 Basic and diluted Net increase in net assets resulting from operations $ 10,107 $ 11,116 Weighted average shares outstanding 8,858,831 4,893,281 Net increase in net assets resulting from operations per share (basic and diluted) (1) $ 1.14 $ 2.27 (1) The Company does not have any outstanding anti-dilutive instruments as of September 30, 2024.

Financial Highlights

Financial Highlights	9 Months Ended
	Sep. 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 September 30, 2024: For the period from March 11, 2024 (date of inception) to September 30, 2024 Per share data: Net asset value, beginning of period $ — Net investment income (5) 1.13 Net change in unrealized gain on investments (5) 1.13 Net realized gain on sale of real estate securities (5) 0.01 Net increase in net assets resulting from operations (5) 2.27 Issuance of Common Shares 25.00 Net increase in net assets 27.27 Other (1) (0.77) Net asset value, end of period $ 26.50 Shares outstanding at end of period 10,797,864 Total return (2) 5.99 % Ratio/Supplemental data attributable to Common Shares: Total net assets attributable to Common Shares, end of period 286,117 Ratio of net investment income to average net assets attributable to Common Shares (3)(4) 6.17 % Ratio of total expenses to average net assets attributable to Common Shares (3)(4) 6.76 % Ratio of net expenses to average net assets attributable to Common Shares (3)(4) 2.44 % (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 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	9 Months Ended
	Sep. 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.

N-2

N-2 - $ / shares	9 Months Ended
	Sep. 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	$ 26.50	$ 0

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 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 Instruments	Fair Value of Instruments 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 Changes In 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.
Repurchase Agreements	Repurchase Agreements Real estate securities sold under repurchase agreements have been treated as collateralized financing transactions because the Company maintains effective control over the transferred securities. Commercial mortgage loans and real estate securities financed through repurchase agreements remain in the Consolidated Statement of Assets and Liabilities as an asset and cash received from the purchaser is recorded as a liability. Interest paid in accordance with repurchase agreements is recorded in interest and debt fees in the Consolidated Statements of Operations.
Deferred Financing Costs	Deferred Financing Costs The deferred financing costs related to the Company's various Master Repurchase Agreements are included in Deferred financing costs
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In November 2023, the FASB issued Accounting Standard Update (“ASU”) No. 2023-07, “Improvements to Reportable Segment Disclosures.” This ASU requires enhanced disclosures about significant segment expenses. In addition, the ASU requires specific disclosures related to the title and position of the individual (or the name of the group or committee) identified as the Chief Operating Decision Maker (“CODM”); and an explanation of how the CODM uses the reported measures of segment profit or loss in assessing segment performance and deciding how to allocate resources. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, under a retrospective approach. The Company is assessing the impact of the new ASU on its consolidated financial statements.

Investments (Tables)

Investments (Tables)	9 Months Ended
	Sep. 30, 2024
Schedule of Investments [Abstract]
Investment Portfolio Composition by Type	The following table represents the Company's investment portfolio as of September 30, 2024: Investments at Cost Investments at Fair Value Senior Mortgage $ 494,644 $ 499,983 95.5 % Mezzanine 9,038 9,181 1.8 % Real Estate Securities 13,841 13,881 2.7 % Total $ 517,523 $ 523,045 100.0 % The following table shows the investment portfolio composition by industry grouping based on fair value at September 30, 2024: At September 30, 2024 Investments at Percentage of Multifamily $ 410,820 78.5 % Hospitality 91,667 17.5 % Self Storage 15,556 3.0 % Industrials 5,002 1.0 % Total $ 523,045 100.0 %

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	9 Months Ended
	Sep. 30, 2024
Fair Value Disclosures [Abstract]
Fair Values of Loan Investments	Fair Value Measurements Level 1 Level 2 Level 3 Total Senior Mortgage $ — $ — $ 499,983 $ 499,983 Mezzanine — — 9,181 9,181 Real Estate Securities — 13,881 — 13,881 Total $ — $ 13,881 $ 509,164 $ 523,045
Changes in Fair Value of Level 3 Assets by Investment Type	The below tables present a summary of changes in fair value of Level 3 assets by investment type (amounts in thousands): Senior Mortgage Mezzanine Total Balance as of June 30, 2024 $ 88,638 $ — $ 88,638 Loan originations 411,171 9,183 420,354 Loan origination fees (4,633) (150) (4,783) Net accretion of discount 277 6 283 Net change in unrealized appreciation (depreciation) on investments 4,530 142 4,672 Balance as of September 30, 2024 $ 499,983 $ 9,181 $ 509,164 Senior Mortgage Mezzanine Total Balance as of March 11, 2024 $ — $ — $ — Loan originations 499,809 9,183 508,992 Loan origination fees (5,445) (150) (5,595) Net accretion of discount 280 6 286 Net change in unrealized appreciation (depreciation) on investments 5,339 142 5,481 Balance as of September 30, 2024 $ 499,983 $ 9,181 $ 509,164
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 $ 228,441 Recent Transaction n/a n/a n/a n/a Senior Mortgage 271,542 DCF Method Discount Rate 2.65% 8.30% 3.62% Mezzanine 9,181 DCF Method Discount Rate 6.75% 12.75% 9.87% Total $ 509,164

Repurchase Agreements (Tables)

Repurchase Agreements (Tables)	9 Months Ended
	Sep. 30, 2024
Broker-Dealer [Abstract]
Schedule of Repurchase Agreements	The following table represents the Company's repurchase agreements as of September 30, 2024: Maturity Date Interest Expense Incurred Ending Weighted Average Interest Rate Amount Pledged Amount per Consolidated Statements of Assets and Liabilities FBRED BDC BB FLOAT, LLC (“Barclays SPV”) 6/24/2027 $ 1,318 6.97 % $ 243,423 $ 160,136 FBRED BDC High Yield Securities, LLC ("JPM Repo SPV") N/A 115 6.32 % 13,875 11,534 FBRED BDC JPM Seller, LLC ("JPM SPV") 8/14/2026 342 7.23 % 96,236 60,711 FBRED BDC Landings Finance, LLC (“Webster SPV”) 7/9/2026 51 7.24 % 21,219 15,914 Total $ 1,826 7.02 % $ 374,753 $ 248,295

Commitments & Contingencies (Ta

Commitments & Contingencies (Tables)	9 Months Ended
	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Unfunded Commitment	As of September 30, 2024, the Company’s unfunded commitments consisted of the following: Portfolio Company Name Investment Type Commitment Type Total Commitment Remaining Commitment 26 W 9th Street LLC Senior Mortgage Delayed Draw $ 25,210 $ 9,770 26 W 9th Street LLC Mezzanine Delayed Draw 2,801 1,074 AVR Eugene Hotel LLC Senior Mortgage Delayed Draw 12,598 3,629 Blue Suede Hospitality Group Senior Mortgage Delayed Draw 19,510 1,174 Grand Cypress Apartments, LLC Senior Mortgage Delayed Draw 50,000 3,120 Hallandale Oasis 2019 LLC Senior Mortgage Delayed Draw 23,098 17,599 Hallandale Oasis 2019 Holdings LLC Mezzanine Delayed Draw 8,772 4,480 Paraiso 256, LLC Senior Mortgage Delayed Draw 29,896 3,601 SL 418, LLC Senior Mortgage Delayed Draw 48,701 2,316 WHK Waterfront Urban Renewal LLC Senior Mortgage Delayed Draw 50,000 46,810 WHK Waterfront Mezz LLC Mezzanine Delayed Draw 19,091 19,091 Total $ 289,677 $ 112,664

Net Assets (Tables)

Net Assets (Tables)	9 Months Ended
	Sep. 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 September 30, 2024: Share Issue Date Shares Issued Net Proceeds Received June 12, 2024 60 $ 2 June 20, 2024 4,199,999 104,999 July 10, 2024 2,347,417 60,000 August 7, 2024 4,250,388 110,000 Total Capital Drawdowns 10,797,864 $ 275,001

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 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 September 30, 2024 and for the period from March 11, 2024 (date of inception) to September 30, 2024: For the three months ended September 30, 2024 For the period from March 11, 2024 (date of inception) to September 30, 2024 Basic and diluted Net increase in net assets resulting from operations $ 10,107 $ 11,116 Weighted average shares outstanding 8,858,831 4,893,281 Net increase in net assets resulting from operations per share (basic and diluted) (1) $ 1.14 $ 2.27 (1) The Company does not have any outstanding anti-dilutive instruments as of September 30, 2024.

Financial Highlights (Tables)

Financial Highlights (Tables)	9 Months Ended
	Sep. 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 September 30, 2024: For the period from March 11, 2024 (date of inception) to September 30, 2024 Per share data: Net asset value, beginning of period $ — Net investment income (5) 1.13 Net change in unrealized gain on investments (5) 1.13 Net realized gain on sale of real estate securities (5) 0.01 Net increase in net assets resulting from operations (5) 2.27 Issuance of Common Shares 25.00 Net increase in net assets 27.27 Other (1) (0.77) Net asset value, end of period $ 26.50 Shares outstanding at end of period 10,797,864 Total return (2) 5.99 % Ratio/Supplemental data attributable to Common Shares: Total net assets attributable to Common Shares, end of period 286,117 Ratio of net investment income to average net assets attributable to Common Shares (3)(4) 6.17 % Ratio of total expenses to average net assets attributable to Common Shares (3)(4) 6.76 % Ratio of net expenses to average net assets attributable to Common Shares (3)(4) 2.44 % (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 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 Millions	9 Months Ended
	Sep. 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
Maximum
Investment Company, Financial Highlights [Line Items]
Loan amount for investments	$ 100

Related Party Transactions (Det

Related Party Transactions (Details) $ in Millions		9 Months Ended
	Jun. 07, 2024	Sep. 30, 2024 USD ($) component quarterPeriod
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
Related Party
Related Party Transaction [Line Items]
Recovery of offering costs		$ 0.2
Reimbursable expense		$ 3.1
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%

Investments - Investment Portfo

Investments - Investment Portfolio (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($)
Schedule of Investments [Line Items]
Investments at Cost	$ 517,523	[1],[2],[3],[4]
Investments at Fair Value	$ 523,045	[1],[2],[3],[4]
Investments, Total | Investment Concentration Risk
Schedule of Investments [Line Items]
Fair Value Percentage of Total Portfolio	100%
Senior Mortgage
Schedule of Investments [Line Items]
Investments at Cost	$ 494,644
Investments at Fair Value	$ 499,983
Senior Mortgage | Investments, Total | Investment Concentration Risk
Schedule of Investments [Line Items]
Fair Value Percentage of Total Portfolio	95.50%
Mezzanine
Schedule of Investments [Line Items]
Investments at Cost	$ 9,038
Investments at Fair Value	$ 9,181
Mezzanine | Investments, Total | Investment Concentration Risk
Schedule of Investments [Line Items]
Fair Value Percentage of Total Portfolio	1.80%
Real Estate Securities
Schedule of Investments [Line Items]
Investments at Cost	$ 13,841
Investments at Fair Value	$ 13,881
Real Estate Securities | Investments, Total | Investment Concentration Risk
Schedule of Investments [Line Items]
Fair Value Percentage of Total Portfolio	2.70%
[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.

Investments - Composition by In

Investments - Composition by Industry Grouping (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($)
Schedule of Investments [Line Items]
Investments at Fair Value	$ 523,045	[1],[2],[3],[4]
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	$ 410,820
Multifamily | Investments, Total | Industry Sector Concentration Risk
Schedule of Investments [Line Items]
Fair Value Percentage of Total Portfolio	78.50%
Hospitality
Schedule of Investments [Line Items]
Investments at Fair Value	$ 91,667
Hospitality | Investments, Total | Industry Sector Concentration Risk
Schedule of Investments [Line Items]
Fair Value Percentage of Total Portfolio	17.50%
Self Storage
Schedule of Investments [Line Items]
Investments at Fair Value	$ 15,556
Self Storage | Investments, Total | Industry Sector Concentration Risk
Schedule of Investments [Line Items]
Fair Value Percentage of Total Portfolio	3%
Industrials
Schedule of Investments [Line Items]
Investments at Fair Value	$ 5,002
Industrials | Investments, Total | Industry Sector Concentration Risk
Schedule of Investments [Line Items]
Fair Value Percentage of Total Portfolio	1%
[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.

Investments - Narrative (Detail

Investments - Narrative (Details)	9 Months Ended
	Sep. 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	Sep. 30, 2024 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	$ 523,045	[1],[2],[3],[4]
Senior Mortgage
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	499,983
Mezzanine
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	9,181
Real Estate Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	13,881
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 1 | Mezzanine
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	0
Level 1 | Real Estate Securities
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	13,881
Level 2 | Senior Mortgage
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	0
Level 2 | Mezzanine
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	0
Level 2 | Real Estate Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	13,881
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	509,164
Level 3 | Senior Mortgage
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	499,983
Level 3 | Mezzanine
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	9,181
Level 3 | Real Estate Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	$ 0
[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.

Fair Value Measurement - Change

Fair Value Measurement - Changes in Fair Value of Level 3 Assets by Investment Type (Details) - USD ($) $ in Thousands	3 Months Ended	7 Months Ended
	Sep. 30, 2024	Sep. 30, 2024
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 88,638	$ 0
Loan originations	420,354	508,992
Loan origination fees	(4,783)	(5,595)
Net accretion of discount	283	286
Net change in unrealized appreciation (depreciation) on investments	4,672	5,481
Ending balance	509,164	509,164
Senior Mortgage
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	88,638	0
Loan originations	411,171	499,809
Loan origination fees	(4,633)	(5,445)
Net accretion of discount	277	280
Net change in unrealized appreciation (depreciation) on investments	4,530	5,339
Ending balance	499,983	499,983
Mezzanine
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	0	0
Loan originations	9,183	9,183
Loan origination fees	(150)	(150)
Net accretion of discount	6	6
Net change in unrealized appreciation (depreciation) on investments	142	142
Ending balance	$ 9,181	$ 9,181

Fair Value Measurement - Unobse

Fair Value Measurement - Unobservable Inputs and Valuation Techniques (Details) $ in Thousands	Sep. 30, 2024 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	$ 523,045	[1],[2],[3],[4]
Senior Mortgage
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	499,983
Mezzanine
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	9,181
Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	509,164
Level 3 | Senior Mortgage
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	499,983
Level 3 | Senior Mortgage | Recent Transaction
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	228,441
Level 3 | Senior Mortgage | DCF Method
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	$ 271,542
Level 3 | Senior Mortgage | DCF Method | Discount Rate | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.0265
Level 3 | Senior Mortgage | DCF Method | Discount Rate | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.0830
Level 3 | Senior Mortgage | DCF Method | Discount Rate | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.0362
Level 3 | Mezzanine
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	$ 9,181
Level 3 | Mezzanine | DCF Method | Discount Rate | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.0675
Level 3 | Mezzanine | DCF Method | Discount Rate | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.1275
Level 3 | Mezzanine | DCF Method | Discount Rate | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.0987
[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.

Repurchase Agreements - Narrati

Repurchase Agreements - Narrative (Details) - USD ($)	Aug. 15, 2024	Aug. 14, 2024	Jul. 03, 2024	Jun. 24, 2024	Sep. 30, 2024
Assets Sold under Agreements to Repurchase [Line Items]
Weighted average borrowing amount outstanding					$ 47,500,000
Asset coverage ratio based on the aggregate amount of outstanding senior securities					215%
Barclays Bank PLC
Assets Sold under Agreements to Repurchase [Line Items]
Aggregate commitment to repurchase				$ 250,000,000
Basis spread on variable rate				1.64%
J.P. Morgan Securities LLC
Assets Sold under Agreements to Repurchase [Line Items]
Aggregate commitment to repurchase			$ 0
Basis spread on variable rate			0.97%
JPMorgan Chase Bank, National Association
Assets Sold under Agreements to Repurchase [Line Items]
Aggregate commitment to repurchase		$ 500,000,000
Basis spread on variable rate		1.81%
Webster Bank, National Associate
Assets Sold under Agreements to Repurchase [Line Items]
Aggregate commitment to repurchase	$ 15,900,000
Basis spread on variable rate	1.95%

Repurchase Agreements - Summary

Repurchase Agreements - Summary of Repurchase Agreements (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($)
Assets Sold under Agreements to Repurchase [Line Items]
Interest Expense Incurred	$ 1,826
Ending Weighted Average Interest Rate	7.02%
Amount Pledged	$ 374,753
Amount per Consolidated Statements of Assets and Liabilities	248,295
Barclays Bank PLC
Assets Sold under Agreements to Repurchase [Line Items]
Interest Expense Incurred	$ 1,318
Ending Weighted Average Interest Rate	6.97%
Amount Pledged	$ 243,423
Amount per Consolidated Statements of Assets and Liabilities	160,136
J.P. Morgan Securities LLC
Assets Sold under Agreements to Repurchase [Line Items]
Interest Expense Incurred	$ 115
Ending Weighted Average Interest Rate	6.32%
Amount Pledged	$ 13,875
Amount per Consolidated Statements of Assets and Liabilities	11,534
JPMorgan Chase Bank, National Association
Assets Sold under Agreements to Repurchase [Line Items]
Interest Expense Incurred	$ 342
Ending Weighted Average Interest Rate	7.23%
Amount Pledged	$ 96,236
Amount per Consolidated Statements of Assets and Liabilities	60,711
Webster Bank, National Associate
Assets Sold under Agreements to Repurchase [Line Items]
Interest Expense Incurred	$ 51
Ending Weighted Average Interest Rate	7.24%
Amount Pledged	$ 21,219
Amount per Consolidated Statements of Assets and Liabilities	$ 15,914

Commitments & Contingencies - N

Commitments & Contingencies - Narrative (Details) $ in Thousands	Sep. 30, 2024 USD ($)
Delayed Draw Term Loan (DDTL)
Financial Support for Nonconsolidated Legal Entity [Line Items]
Unfunded commitment on delayed draw term loan	$ 112,664

Commitments & Contingencies - U

Commitments & Contingencies - Unfunded Commitment (Details) $ in Thousands	Sep. 30, 2024 USD ($)
Delayed Draw Term Loan (DDTL)
Financial Support for Nonconsolidated Legal Entity [Line Items]
Total Commitment	$ 289,677
Remaining Commitment	112,664
Investment, Identifier [Axis]: 26 W 9th Street LLC, Mezzanine, Delayed Draw
Financial Support for Nonconsolidated Legal Entity [Line Items]
Total Commitment	2,801
Remaining Commitment	1,074
Investment, Identifier [Axis]: 26 W 9th Street LLC, Senior Mortgage, Delayed Draw
Financial Support for Nonconsolidated Legal Entity [Line Items]
Total Commitment	25,210
Remaining Commitment	9,770
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
Investment, Identifier [Axis]: Blue Suede Hospitality Group, Senior Mortgage, Delayed Draw
Financial Support for Nonconsolidated Legal Entity [Line Items]
Total Commitment	19,510
Remaining Commitment	1,174
Investment, Identifier [Axis]: Grand Cypress Apartments, LLC, Senior Mortgage, Delayed Draw
Financial Support for Nonconsolidated Legal Entity [Line Items]
Total Commitment	50,000
Remaining Commitment	3,120
Investment, Identifier [Axis]: Hallandale Oasis 2019 Holdings LLC, Mezzanine, Delayed Draw
Financial Support for Nonconsolidated Legal Entity [Line Items]
Total Commitment	8,772
Remaining Commitment	4,480
Investment, Identifier [Axis]: Hallandale Oasis 2019 LLC, Senior Mortgage, Delayed Draw
Financial Support for Nonconsolidated Legal Entity [Line Items]
Total Commitment	23,098
Remaining Commitment	17,599
Investment, Identifier [Axis]: Paraiso 256, LLC, Senior Mortgage, Delayed Draw
Financial Support for Nonconsolidated Legal Entity [Line Items]
Total Commitment	29,896
Remaining Commitment	3,601
Investment, Identifier [Axis]: SL 418, LLC, Senior Mortgage, Delayed Draw
Financial Support for Nonconsolidated Legal Entity [Line Items]
Total Commitment	48,701
Remaining Commitment	2,316
Investment, Identifier [Axis]: WHK Waterfront Mezz LLC, Mezzanine, Delayed Draw
Financial Support for Nonconsolidated Legal Entity [Line Items]
Total Commitment	19,091
Remaining Commitment	19,091
Investment, Identifier [Axis]: WHK Waterfront Urban Renewal LLC, Senior Mortgage, Delayed Draw
Financial Support for Nonconsolidated Legal Entity [Line Items]
Total Commitment	50,000
Remaining Commitment	$ 46,810

Net Assets - Narrative (Details

Net Assets - Narrative (Details)	7 Months Ended	9 Months Ended
	Sep. 30, 2024 USD ($) $ / shares	Sep. 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		$ 251,500,000
Percent called ratio		52.20%
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	7 Months Ended
	Aug. 07, 2024	Jul. 10, 2024	Jun. 20, 2024	Jun. 12, 2024	Sep. 30, 2024	Sep. 30, 2024
Equity [Abstract]
Shares Issued (in shares)	4,250,388	2,347,417	4,199,999	60	6,597,805	10,797,864
Net Proceeds Received	$ 110,000	$ 60,000	$ 104,999	$ 2	$ 170,000	$ 275,001

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	7 Months Ended	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2024	Sep. 30, 2024
Basic and diluted
Net increase in net assets resulting from operations	$ 10,107	$ 11,116
Weighted average shares outstanding, basic (in shares)	8,858,831	4,893,281
Weighted average shares outstanding, diluted (in shares)	8,858,831	4,893,281
Net increase in net assets resulting from operations per share, basic (in dollars per share)	$ 1.14	$ 2.27
Net increase in net assets resulting from operations per share, diluted (in dollars per share)	$ 1.14	$ 2.27
Antidilutive shares (in shares)			0

Financial Highlights (Details)

Financial Highlights (Details) - USD ($)	7 Months Ended
	Sep. 30, 2024	Jun. 30, 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)	1.13
Net change in unrealized gain on investments (in dollars per share)	1.13
Net realized gain on sale of real estate securities (in dollars per share)	0.01
Net increase in net assets resulting from operations (in dollars per share)	2.27
Issuance of Common Shares (in dollars per share)	25
Net increase in net assets (in dollars per share)	27.27
Other (in dollars per share)	(0.77)
Net asset value, end of period (in dollars per share)	$ 26.50
Shares outstanding at end of period (in shares)	10,797,864
Total return	5.99%
Ratio/Supplemental data attributable to Common Shares:
Total net assets attributable to Common Shares, end of period	$ 286,117,000	$ 106,010,000	$ 0
Ratio of net investment income to average net assets attributable to Common Shares	6.17%
Ratio of total expenses to average net assets attributable to Common Shares	6.76%
Ratio of net expenses to average net assets attributable to Common Shares	2.44%