- Earnings call transcript Q3 2022

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Operator

Good day, and welcome to the Franklin BSP Realty Trust Third Quarter 2022 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Lindsey Crabbe, Director of Investor Relations. Please go ahead.

Lindsey Crabbe

morning. Good hosting for call our you today. Thank the conference call. to Franklin BSP earnings quarter third Trust Realty Welcome

As mentioned, are at Real With Chief FBRT; me and the and Investor of Benefit Financial on of operator CEO Head Operating the Street I'm Officer Lindsey Michael and Partners. call Officer Jerome Comparato, Estate today FBRT; Richard Chief Chairman Director Byrne, Baglien Crabbe, of Relations. Commercial of

this team today's conversation, comments today's I want forward-looking statements The results that based mention are of assumes is call, filed during the law. subject the or and by to Those start XX, information as of to comments inherent uncertainties some call, on on from future future most required information, our may any with risks of company including Form we otherwise, in recently are XXXX. result are forward-looking assumptions. XX-Q and The SEC, whether materially. events except statements update only the made and conveyed date actual Before as to as certain current described this filed as a November statements, of assumptions and this new any obligation call no differ

our financial at Additionally, and in on reconciled our which www.fbrtreit.com. will supplementary of measures, earnings slide to we website certain to refer available non-GAAP are release are which GAAP figures deck, each

I With will turn slide We call. on call that, will supplementary over refer to Richard the the today's to Byrne. deck

Richard Byrne

morning, joining today. us and Lindsey, for good thanks Thank everyone. all you Great,

I'm FBRT. the said, Chairman Byrne. and As Lindsey of I'm Rich CEO

our is This third through the to then current results cover the going to course, financial published Then our through to and Mike and deck portfolio going some to Slide also, call and you're walk to I'm is Jerry going activity. general my provide review of our all going earnings slide color. our supplemental on going mentioned discuss in quarter were As going the to questions. status After we're market remarks, our yesterday. our website we're up and to highlights initial X, morning, if portfolio. open deck you you of the Lindsey release greater of quarter third for along on walk begin, and detail I'm following

were was quarter the distributable fight part third with macroeconomic we despite So, very our inflation those the results. were of biggest quarter at to as rate story. generated pleased or continue conditions Fed largely Market backdrop the challenging that to increases the the We through least similar second of environment. in strong the earnings interest

While spreads. what points QX to higher originated in of our we rates attractive our The well this spread $XXX expectation as continue origination our million quarter. first basis first than loans better the year. were wider the certainly loans the approximately wider points. XXX we is was the basis half year than saw with weighted originated we terms commitments half These experienced on XXX spreads of XXX This in much and slowed this originated the in average lower on all opportunities. our the more earnings, in we new that of importantly, will broader posture, market lower the to volume. But delivered loan bring the market experienced volatility given also the deal Despite future and benefit we pace flow more and the market transactional as

approximately balance QX. $X.X billion portfolio ending to increased in Our

we shy now earnings should full of only well-diversified billion our slightly portfolio our size XXX that portfolio of our is have billion achieve average $XX We target. a to $X loan At $X.X stabilized power. our Incidentally, million. billion and is portfolio $X.X loans, level,

one to it in of it's optimal believe portfolio more will we when the the Mike predict quarters. later provide reach will for many sure hard level, two will next ask, call. will to this but I'm As color our you be much us on in

share, common interest from margin. at level. increased almost fully fully driven the X% in maintained were share, per $X.XX net The our or almost level we up book earnings our X.X% We Once $X.XXX our earnings portfolio XX% converted per on earnings equity. return our distributable to the on reaches entirely quarter, increase match translates optimization, by yield prior exceed our was For converted to dividend a representing value. distributable our dividend expect quarter. an This

Now balance I sheet. want on our to focus

we Under both, $XX were XXX,XXX XXXX, repurchases, by quarter, go repurchased an repurchases. million value plan, company's advisor's those extended book Year-to-date, And additional This have converted increased briefly. we through fully quarter second exhausted. program X, of we million. million. plan end, $X.X company's for million advisors the common the quarter, company's program increase $XX.X our speaking end me common repurchase [ph] company this program for share. largely still $XX.XX the to And available way, that coming to repurchased bought purchase in just and into Our our XXX,XXX $XX the per well. approximately was the Through activated. stock quarter was Post Board million that the shares $XX.X the of stock. end let repurchase of repurchase by the share the after stock which, November shares the active quarters. driven December At through was the we through of our Shortly point, the as

thus, our loans. portfolio the market are assets, in the than our for Looking attractive. where quality is we less risk middle the very favor conditions space, at continue believe - diversified we to are competitive return of bigger and And confident those

asset a of property Importantly, of where region amounts Sun collateral continue level. see spread to as the multifamily trends large positive our largely Belt we class migration. is in throughout population And portfolio performance XX% at the result,

later much Our the portfolio office no all. more we in detail into X% only and the exposure to greater at go has Mike and this have international sector, exposure call. will all in

the our XX% portfolio originated our - Importantly, in XX months. of portfolio of was last performing loan

the as and estate maturities will metrics near-term discuss will of this defaults commercial real limited and assessing when increasingly quality these of forward. have but Jerry well. and going believe more, relevant we analysis write-downs We predicting be portfolios like

Our ample liquidity cash end across our our lines extremely in options warehouse with at CLOs. capacity reserves quarter position reinvest strong, and was

quarter opportunities total end under flexibility was liquidity just Our the affords market billion. from a volatility. they $X.X take at This provides of arise and buffer liquidity advantage us great to as

X.X conservative of times our and of We this is highlight use structural our debt of equity non-recourse ended net and quarter debt. to this Another with is XX% leverage. non-mark-to-market

in report we the later two list. a inherent indication gain. of for and will Hotel to believe added result loans on we on rating of brief in our risk positive update but litigation, have provide ongoing to final expect portfolio. X.X% potential quarter, to XXXX. on on not of with we some resolution loans, the which credits. this We We non-accrual Both loan, loans strength of the feel we in Mike watch all our list Walgreens to a have have Because continue at we to the you the non-accrual this our Our color do of the you in portfolio call, believe lot could Brooklyn recovery our and the about two the remained this loans the discussed a be good past. two non-accrual quarter

and will stable leader, developments have COVID positive our been others a those to conclude, as is we there a - we're platform To be lend to like touch are view quarters Mike there and market volatile that came currently on. that an not. the opportunity. However, we when We experience few markets through were able

to will the that I'll quarter. performance to advantage dislocation. you and arise times has attractive of Our through defensive let take enable of in positioning continue walk us, now through market our Jerry opportunities

Jerry Baglien

Rich. everyone. and COO being I I'm the the today. thanks, FBRT. morning, Great Good on of call CFO appreciate Baglien, everyone Jerry

X. start In I'll the of to an distributable through converted on to FBRT $X.XX third equity. share. our an million the on represents generated GAAP - the be $XX.X X.X% of results, distributable earnings income return can Moving fully in walk found quarter, earnings let's per Slide net or on details. That its fully dividend on book covered was quarter. earnings $X.XXX by represents that value of distributable We XX% our that - for and common $XX.XX, amount of earnings release share per aggregate this our quarter, further and of converted a X% paid of for the of stock yield

securities expect holding this we exceed an added yield $XX more do asset fourth $X.X the million this these. We X%. allocated lieu to the quarter, total of increased real as and million. investment-grade million will $XX added into details to further estate in on increased quarter this billion, CRE/CLO securities enhancer cash. portfolio of equity commercial a Mike start after $XXX of estate in additional Our to go class Total not real We to later. Shortly

a Our the very at with leverage net our and remains X.X in quarter leverage at the conservative times, range X.X recourse our ending position times. target leverage ended quarter

converted fully of value Our the up quarter, the end prior at of to book end $XX.XX and the that's from $X.XX the quarter. improved

was earnings QX see distributable right entirely on this Slide quarter improvement was almost our rate share run distributable XX% earnings to to per you Moving our approximately our X, interest and due of will increased by The in our distributable top net margin. earnings.

quarter, while just the the of earlier $X.XX have and be per in - also our in immediately short or base approximately optimization an our base improve did to portfolio are earnings confident action levels mentioned basis. every point our floating benefited this SOFR this dividend seeing base continue rate our LIBOR X% and has Fed's in tailwind on power we basis fall earnings portfolio, The will to increase a And interest We XX benefits as continue annual earnings. with call. increase the nears will share coverage rates increased been earnings rates, our to our raise to on rates, earnings distributable

Slide the XXX $X.X was portfolio million our Net commitments quarter. bringing X, growth core to $XXX portfolio new of we principal Moving loans. million, on for balance in to $XX of billion loan the closed quarter

to the increase to Additionally, in X, defaults issues interest we rates and industry-wide We rates interest create increase in and in as On corresponding dramatic payment Rich the expect is our approximately portfolios. lending swift will $XXX million in not on cap a write-downs see and billion. likely of the in our vintage term. ended portfolio do The dramatic take quarter near to or commitments mortgage a many $X origination rise add-on of funding highlighted. earlier, touched Slide with

maturity are do willing choose once checks they equity we many borrowers problems expect to losses if take potentially thus bigger to or write loans surface However, reach to and sell.

we as statistic markets strong a in believe months, relative age to FBRT's portfolio increasingly a monitor. which wait for inventory past of the while puts was originated position will that XX% us recover. loan XX such, in of believe important become As we to we

million $XX we and maturing the have As post fourth quarter show only the and of maturities, in in for of loan $XXX payoffs the versus reflective is end. that quarter million we now XXXX extensions deck, this

a QX In total million have of XXXX combined. addition, $XXX of QX in and maturing we

While our having are is some X, a capitalization this overview. markets Slide On experiencing limited near-term dislocation, maturities current positive. shows

this to quarter, costs at driven quarter due X.X% increases is higher this average Our trended the compared largely rates. the and base in second in financing X.X% to

we is leverage turn. core of Our just with half sources. our financing see end, financing our you'll XX% XX, non-recourse On recourse details and stands the which best-in-class. overall view as At is a portfolio predominantly our of and financed Slide non-mark-to-market quarter at non-mark-to-market over facilities,

lines have separate on up capacity full liquidity. line of we We CLO. seven the XX through counterparties warehouse have the In and our are on reinvest warehouse options Slide our positioning, total, borrowers. reinvest. we end, the shows ensure picture billion we CLO to and available of be liquidity our quarters because quarter on of both almost now at take $X.X cash, available any available are will including a This for advantage dislocations choice our in capacity of liquidity lender warehouse able of market to coming and proactive

moving optimization seeing the portfolio. closer of estate are commercial We full our to and real capabilities

give of you strength balance turn into sheet to that, Importantly, us our XXXX. over loan diversified I'll fourth the of position an a quarter update Mike our moving portfolio. on and it With in flexible to portfolio puts

Michael Comparato

Slide Mike Thanks, morning, being Comparato, and XX. Head Commercial of the on everyone. at Jerry, today. I'm I on appreciate I'm call Estate BSP. start going good you Real to

commercial of loans, loan which consists XX% portfolio mortgages. senior of XXX Our are

being interest The with with of floating XX% We for environment XX% that rising a rate. allocated are to asset book predominantly the is well positioned multifamily portfolio class. rate

Southeast focal the on is touch footprint want focused geographic as I office Our still across exposure to predominantly current that point to the market and continues be Southwest. in environment. briefly a

office payoff end $XXX the we Yesterday, we received exposure exposure at reducing our As was approximately mentioned office loan, earlier, X% to of office had an QX. million. total

XX% heavily exposure our and/or public overall largest completely office nearly companies are long-term investment-grade to Our very of large leases. or on leased representing two office loans

only has office when those of manageable we $XX at traditional under Our X% an believe levels. very total exposure million, multi-tenant these portfolio loan loans office average is our the excluding two exposure to portfolio and be

We to spreads have loans adding our chosen to portfolio. be the have selective stabilized seem in to recent weeks. in Loan

time X.XX%, loans today, to with from while last X.XX% However, year, higher. are were X.X% This increase. ranging writing to coupons coupons continue we at and coupons

we uncertain continue and positive earnings allowing namely, lender. patient tailwinds of to times. in increases the the we the - in Brooklyn be optimization to resolution those a continuously achieve will that market middle possible, tailwinds as been While desire well us are We we're experiencing soon in as are There expected Hotel XXXX. several as SOFR in have to always are be are origination, as

of quality, Our incredibly size to credit of be size given on us $XX average allows the the million selective loan space.

provides of spreads it book that addition, a meaningfully out granularity the risk. In credit

Moving a commitment total is to Slide of XX, $XXX eight activity third our quarter. originated We to quarter loans the the in specific for million. this

Miami. ticked loan larger one was in to up. average due this for Elser condominium transaction size Our the quarter This loan

with was in the SOFR. weighted coupons coupons we grow ad of Importantly, average saw half XX% in we sector. quarter first into were largest the and higher relatively overall year. in significantly believe continue flat, this increases what of originations over in spreads remain while weighted spreads will QX, the average to via Multifamily Headed our than

quarterly industrial We and also meet and and that has that remain last sectors found call We finding investments risk-return profile. resolved in the focused negative discussed hospitality opportunities on on not our leverage itself. our

tighter More a several of do occur flow to believe itself resolve to and transactional think continues assets be in importantly, widening the both We cap quarters. we meaningful Accordingly, on industrial sectors. rate not it the needs cap for rate limited. deal multifamily still amount will

Finally, end apartment our the on portfolio of quarter have added are building. is were XXXX. apartment is complex Slide risk of the of application and Two watch as with an four. of full loans the with we Both under in before XX, were a loans on complex loans Those office two oldest year. lender, our high-rise expectation originated another high-rise four list for and on The repayment XX. September a loan rating this

$XX principal on million. this balance Our approximately is loan

foreclosure. the deed via office loan, we to For title the in property took early QX a in lieu of

Our was market principal million. X. property loan is on on sale that $XX balance the on for The put November only

The questions ongoing regarding property a other Hotel XXXX. to portfolio. make limited Brooklyn are the answer on resolution we and Retail in and the are Q&A our commentary limited. That so Brooklyn we in of meaningful Because the the expect recovery subject list session the positive Walgreens. we two litigation, our - Walgreens during loans can legal on be to said, to proceedings, Hotel feel are watch ongoing about Both has

have today, $X.X $X.X update. million during cash to recovery I a Through QX. fulsome However, received recovered cash the we million want of of was provide

fair allowance due by specific the that decreased the was adjustments credit However, $XXX,XXX value for cash losses only recovery. offset to

Walgreens addition, going shortly and rent In approximately million portfolio forward rental will the per see from entire received QX, payments beginning directly $X.X the we approximately of to of Walgreens million continue after from directly across back and $X.X of quarter. current

maximize determinable. judgment legal the litigation principles, total collectability, have recovery. is not and final against if our We of a number any, a to of from obtained expand identified judgments have currently we intend The transfers. We fraudulent and its recipients borrower to

have to-date. title locations we on seven and taken foreclosed Lastly,

the first between with foreclosed now it in XXXX the to and balance be to back and XXXX. turn With end operator of the foreclose to of expect on begin the the session. half I like more We to on several that, would Q&A over

Operator

Thank [Operator Instructions] with question ahead. first Please from Our comes JMP you. DeLaney go Steve Securities.

Steve DeLaney

and team. Rich good morning Thanks,

- There have I say want linings when many not silver the CLO can but advantage just CMBS you expertise. take and I there, of opportunistic First, to the out are that applaud investments.

modest at - I think percent. a that's some

an and work Board. for know that's response that well. out will I think appropriate I it - and hope management I the

Richard Byrne

Steve. Thanks

Steve DeLaney

You're welcome.

as the the is only but and think, One date. still strengths of CLOs I you believe sheet fact about is your reinvestment they're that the five, have your one, I balance past

into you're XXXX, XXXX So I out other believe. on the four,

we as originating all-in would you're for SOFR XX - listed So loan? look do the of marginal us incremental the for are LIBOR at least ROE over - you. Thank months with see attractive today deck reinvestment On and coupons at over estimate today, out your XXX that an in you've on what you and into spreads those and us this range? increase if open EPS? an in one not you driver distributable that which XXX, the can key as a that looking is of be And CLOs, next with

Jerry Baglien

I'll maybe take Yes, that.

Richard Byrne

Go Jerry. ahead,

Jerry Baglien

This Jerry. is

Steve DeLaney

Hi Jerry.

Jerry Baglien

short exact going be don't lot loans me talking an any that putting the are spread incremental you're front vintage math couple made is hundred The but to that on than have basis in of yes. the wider the tools. up in points I in loan, driver. a It's answer certainly of a older about of given

simple were basis, we than on returns at factor before. that. it's mid-teens be on doing a that, loan math low to On those just going So an the higher to incremental

drop on You're vintages be to in of there. putting we'll us that those teens high into new some able

that. little September FLX, of we besides managed already reinvestment target same can noted, you And so I do there's and is kind extrapolate think we which assuming that, which the we from over, lot yes, to is far, - of a So next year. of the bit boxes, can of first you all upside a correctly fit

term CLOs over reinvest those a two left all we've on have in that year and we lot a half of the last the So years. done

Steve DeLaney

the you that for And the loans in how to today How times. just check? thank past new originations like one, and being is you you bar opportunities higher percentage are Jerry. Rich, high the of are either loan unprecedented selective Yes, versus that you're guess And at - we of now seeing, for percent historical? Michael, what of actually I bar look your

Richard Byrne

ahead, Michael. Go

Michael Comparato

we've obviously. relatively in never unfortunate Yes, being always on going what's loss. we've credit had good the a more I'd notwithstanding, Walgreens question, like a even the a bar. market. to experienced given it's selective situation we high But credit are think Obviously,

uncertainty, there's was in June. think I a it's it It's lot of looks like funds to. Fed obviously, X% X% now going -

Steve DeLaney

into X%. Go

Michael Comparato

Yes, the there's across from on a players little syndrome bit of market. and equity deer headlight lenders and going

So I that hopefully mentioned clearly we've dividend I rather of us loans. selective. we're get tailwinds here lot think coverage, sooner without I our later, statement, to many than a being And in got think writing even

hotel, Brooklyn SOFR a we're with the XXXX. Just the spot resolution in feel like for we increases in of great

selective a we only think step than can CPI to we're in patient of feel tailwinds being probably obviously right we've got this So next there's meaningful right the morning like market more the not that to think wrong I are being is go we that the XX allow selective direction. months. in that but more six even be But just because still because us we environment,

So is and being move to adding clearly the new patient risk prudent portfolio. the on cautious

Steve DeLaney

great have Thanks. your year. - the close you and for this Well, a morning, thank comments to

Richard Byrne

Thanks, Steve.

Operator

ahead. comes next Our Trading. from with question Jones Please go Jason Stewart

Unidentified Analyst

for best right I active been is is Matthew feel you Congrats good shares. the capital guys repurchasing now? this have Where do quarter. you know to Jason. deploy on a on guys, opportunity Hi like

to you at do new that moment? originations view how the So

Richard Byrne

the then Mike, the put in originations, repurchases. why context we'll new of don't share it you talk about

Michael Comparato

to Yes so you. with Matt, good hey speak

said of Steve, kind now. I the of being what right patient luxury have up we Following to

really to focused. clearly the the So focused we're certainly and most asset We be we're that to and on the multifamily markets recession-resistant out focus sector. there continue find that class in

oriented. knitting stay our to largely multifamily So we want and to stick

opportunities to for we're that continuing look So space. in

retail well hospitality continue and opportunities as while. paid to we're classes other would We for just kind I has office writing industrial. Office and is the going for asset an office. an for loan crisis to the one continue bar be have what to in the to looking close market identity of is say for as to a think be don't appears highest premium And versus providing. I getting anywhere appropriate for And

retail think just we avoiding avoiding not office, we're it because incremental worth a But the that apocalypse I'm retail generally again, on based today. is generally market sure just return taking us is giving receiving risk we're not retail, what coming. So the there's for

heavily So adding forward, continue this to expect multifamily and and very selectively looking oriented hospitality be to I industrial to assets. yes,

Richard Byrne

Matt, and Yes this Rich. is

asked and - Just you that. contextualize about purchases the share to

game I have a it's obviously capital. think zero-sum we with your

You the reasons. merger. Think would only our fortunate share about so have said what we've is we We is in purchases - purchase, we've in on sitting done stock position. the Capstead we're three because conjunction for trading three on and going said. hopefully and much. during the buying One our think But been the a stock we with including out stabilize just we a a and the third market it, REIT Two liquidity is because pretty And stock little to what's has, to Mike bit, mortgage smooth a attractive is investors for bit headlights little traded prices. stock cheap, our and things. as put love at we Clearly, cheap. committed in

mean a thoughtful just dropped been interest put that created. in I rates perspective. look be on in comment a has who existing people that and risk to be. where and need has a risk at effects knock-on all think increase a that, about might and again, all pretty the to I that, there's portfolios And broader for maybe have reason. stocks it dramatic just Now REIT Mortgage

start leverage. when near-term limited going in fact lot have haven't deal to markets have maturities forever that with Jerry public posture X.Xx loans. talked think fairly whether XX% be it's portfolio we but only arise about the are multi think companies has maturities. that or a - very in on I to our of our to long, to We problems been our are structure, we conservative The been vintage

I our if offset bunch we think look the by diversification book of is, other at quite and a I things, think, way opportunity. think good reasonably which - So about this, than you more feel a whole we

but created the also is So market two as has new things. hearing created obviously, opportunity has you're portfolios about great dislocation a risk, One existing originations. in for

So still of course, our But million on share always we're $XX balancing our share that repurchases. for we about repurchases. have against authorization left our

saying that So that it's buying cheap. in way will my long we - I when of market the assume they're shares be in the on active our

Unidentified Analyst

thank for a terms multifamily? bit to then how you then the hospitality, this little loans you those And you of helpful, That's cap quarter could that. rates and compare talk in about originated

Michael Comparato

Matt, Sure. we're I transitional lending assets. on mean, in usually mind, keep

rate or of making is cap a cap loan. we're always loan is I rates reflective a of today not why why So we're generally always making rate say hospitality least not multi just reflective cap are look the look we we multifamily, at. at basis on cap versus on wide hospitality the speaking, XXX-ish generically of probably rates that points that at would on

case-by-case. I be we've go, hospitality rate an environment. basis be back on say markets, it's overall of a multi XXX depending XXX obviously then that lot I there's in points. and probably of bit more a smaller XXX-ish think CBD, go, probably just more seen And in again, could to could We is widening XXX So think the to maybe would little

Unidentified Analyst

the answering. for question guys you for thank Awesome,

Richard Byrne

Thanks Matt.

Michael Comparato

Thanks.

Operator

go next comes Riley. Howlett Our with from B. Please Instructions] Matthew ahead. question [Operator

Matthew Howlett

quarter to Look, quarter, as take Just comes shape. they the through or luxury my But come with in with borrowers? modifications terms really do come is your CLO up liked in and really for that if - and good Do do is what having me can great how much said, is how think up, have that that question. question does terrific over buy And guys, about in - up morning. Thanks we work portfolio you Like - guys a we around about maturing near in, you you do there's about think line? them here extensions, about borrowers Hi the financing? your bank the of you here. taking do think when I from how And - when and you the the fit up? walk they of not how have conversation my term?

Michael Comparato

the Yes, thanks Matt. question, for

management we're a And I COVID they was did the what session dislocation think to dealing job we be asset our and dealing phenomenal think, that few group a with with today. great I a are training for entire obviously, experienced quarters. simultaneously lab. their managing through thing, next COVID, out all maturities out, modifications nice bunch The pretty pointed the over there our of you spread in as is landed

So I situations two, with opportunity one, time. having think three the to we're deal at a

expect extending we and would manageable. we is with them very that the it's original one-way we to to them extensions checkbook. their our middle up show they're that to and have conversation performance are borrower So extension loan doesn't the for very dialogue at qualify nice the that not partner, usually happy say a D&A a to But haven't extend. I modifications, level ground, not where performing If a a clear their but We're they loans message hurdles require the hit for that on going hit option are but to we a not origination. and be can find to to and

class sure the is into on real a own value in I are amortization. then and We focus operating. And we're people. work it's a thoughtful really to we We if comfortable that we interest on very estate. Clearly, think And estate, and the to would never past, from the liquidate. can a second, with went only borrower comfortable best the multi we We desired we getting just owning borrower economics. owning. extended we're asset, So We then credit say, got we in We're operated our to increased wrote some do real we're cases, deeper spread. on can outcome. fee. XX-year have check. But every and the asset we've We a comfortable yesterday the just goal seven-digit making add never before lastly, always focused that we loan first

I next speaking, modifications. us to to it. through COVID from that's the we how and XX So generally needed sets again, And experience potentially XX maturities go up view we really think some experience as well our months

Matthew Howlett

you reassuring hear, do a to it. No that's to come does provide that you may extension, just good cap, an Do, when that curious? and

Michael Comparato

part extension maturity. that new caps requires kind date. borrowers every rate modification, maturity with point is negotiable of just cap a the and/or are an And typically one that's buying our extended of Yes, got in coterminous to so they've purchase our not are that is with through negotiation conjunction interest

Matthew Howlett

And - Great it's note, in sales that. the strong. whether comps guys level, know about. know no, the the But it's tell you Brooklyn I you don't say to you things recent can in us - in is bankruptcy and in good on just come any but area? top of can't It that But very much, On on of terms to Hotel, hotel or us not, that proactive market I comps? looks I it. what like bankruptcy do are but about you appreciate point high can

Michael Comparato

tutelage market [ph] performing process? bankruptcy any the to time it and trustee, kind you the hotel the deal some on via of to through has exceptionally I and would I'm under of not sale sale running is the just going say been comps. quite point that East for for well

Matthew Howlett

on I it? have What's the know you non-fair okay. Great, current it? Got value it.

Michael Comparato

our hotel? of loan or Of the

Matthew Howlett

the Of loan?

Michael Comparato

to original million, balance. which is the principal $XX loan the carrying We're

Matthew Howlett

in have and mean question looks the to it? dry, just think value, underappreciated coverage, good about book in the you're look point stock you I your it is then to, when keep big a way above premium decent year? no for And year. or just even strategically mean may here dividend go to Is buyback until the position, about shares last portfolio. you're next get some entry fourth any dividends higher like is at the wait another new need mean, powder here to Rich, Just the what's dividend, thought use buyback to there you get dividend next I a thought Great. got and I going optimized the your quarter, just a - you to picture, at coverage can

Richard Byrne

there's, a to yes, question. of parts Well I that think couple

to to to to earnings. just dividend always our going respect the with try First, dividend, our we're match

of been at close transition that we've so the other throughout this which wasn't to this period, largely and or a decision. completed. that remember, earned the During pretty earn what through portfolio assets, dividend acquired And it based we Thankfully, we set year the very tough where we've out arms thought transitioning been $X.XXX we'd end. we on

our future other not forward, much it's increases, for around referenced, earnings we've us a so, going and and/or have the get level optimized been. is think higher. potentially Board to I level to or cash should more dividend as at driver whether able going dividend the even hopefully match talk carry be least if And We we've get that SOFR to earnings. like our we'll so match to of

think I it's as that. straightforward

the distributions extent of some as things, to fix We I is our we other you try have we're earnings - which buybacks, originating think capital to will heard with our some as separate our earnings, said Williamsburg to like respect a like it we'll you they impact I almost decision. allocation other with with when match. loans that Again, heard, and pieces stock something. the as mean, And - moving before,

of a little for a which smoothly. help trades buy to the cheap, not stock, well obvious we gets very public not So capital. we a also stock for it to stock certainly least when so it It's attractive use and price, But of like we our us reasons to our been thing our is the only year. all have manage like buy for bad a we've over

above of we're to prudent just make going we're to the and try decisions. So all cognizant

Matthew Howlett

levels, or want there point, the model, that's X.X% it. at Great. to year or of - what - done lot up you would a leverage to other I to you obviously, course, historically. And now, that some anything think a there kind mean, whether then, what clearly, the it's at in some you've no that's point, peers do you're below the from we sort see do of But there of and of out but you capacity sort kind still go need of and of is

Jerry Baglien

dividend And what we earning maybe on we're of you range. a higher tick-up side based that how today a about on see and return where I'd for at. we're always like on of assets, we're Jerry. we're the range opportunity think said, towards it's We're from a perspective. what say of balance now set. we things, we improves our the leverage. we've end credit it's comfortable at net doing us, But talked the X.X% on like kind to at the kind with we'll a X.XX% of market end today based that Hey I just range opportunity and low what of If coverage is almost there basis, and comfortable are the set of on pretty the risk kind

Richard Byrne

to just range peer mean, on, that and add relatively to our is think Yes relative I Matt. I low group. obviously

fact our of deal team. just because per of We million operating sauce a little we've but and interest We're a that's secret size our a the I to operate margin, just loan. consistent been have before there a years which we've in our range been in origination many and a been bit many, have that reason has think able only little we that a little market. less for we've REIT $XX for, is year, that think over average the giant the competing range leverage been for around net competitive public

if do spreads comparable the better, ROEs the can given just leverage with as and for it than fences as we've the or swing do comps good we that less hope with we'd NIM been generate leverage, So we rather producing. our

Matthew Howlett

point hear appreciate I positive it's out that though It's - really and I No, great thing. a your a it. characteristic. thoughts. just

Richard Byrne

sure. For

Operator

like over concludes to This turn back I to question-and-answer conference session. the a the would conclusion. brief for Lindsey

Lindsey Crabbe

attending forward look to you next Thank for with you quarter. speaking today. our call We

Richard Byrne

everyone. Thanks,

Michael Comparato

Thank you.

Operator

has for conference you today's now concluded. attending presentation. The Thank

disconnect. now all may You

Franklin BSP Realty Trust (FBRT) 10 Nov 222022 Q3 Earnings call transcript