Latest news with #NewPoint
Yahoo
01-08-2025
- Business
- Yahoo
Franklin BSP Realty Trust Inc (FBRT) Q2 2025 Earnings Call Highlights: Strategic Growth Amid ...
Release Date: July 31, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Franklin BSP Realty Trust Inc (NYSE:FBRT) successfully originated $61 million in new loan commitments, primarily in multi-family assets, indicating strategic growth in a key sector. The company received $317 million in loan repayments across four different property types, showcasing strong cash flow and repayment trends. FBRT's portfolio of post-interest rate hike loan originations was 56% at quarter end, demonstrating proactive market engagement. The acquisition of New Point is expected to significantly enhance FBRT's platform, particularly in multi-family lending, and provide synergies that increase the addressable market. FBRT's economic returns, defined as change in book value plus dividends paid, were 6.6% and 11.9% over the past 12 and 24 months, respectively, placing them at the top of their peer group. Negative Points FBRT's stock continues to trade at a steep discount to book value, indicating potential market concerns about asset quality and dividend coverage. The company's average risk rating at quarter end was 2.3%, with some loans on the watch list, reflecting ongoing risk management challenges. There is a significant focus on addressing legacy portfolio concerns, particularly in the office sector, which may impact future performance. The market is experiencing tighter spreads compared to a year ago, which could affect FBRT's profitability on new originations. FBRT's liquidity position, while strong, is contingent on successful CLO calls and reinvestment strategies, which carry inherent execution risks. Q & A Highlights Warning! GuruFocus has detected 7 Warning Signs with FBRT. Q: Have you resumed originations since the closing of New Point, and what is the ideal portfolio size to get back to dividend coverage? A: Yes, we have resumed originations, starting slowly but expected to grow quarter over quarter. We aim for a core portfolio size of around $5 billion to maximize dividend coverage. (Mike Camporado, President, and Jerry Bagmanan, CFO & COO) Q: What are you seeing in terms of spreads compared to a year ago? A: Spreads are meaningfully tighter, about 100 to 125 basis points tighter on multi-family loans compared to a year ago, and 25 to 50 basis points tighter than 60 to 90 days ago. (Mike Camporado, President) Q: How will the calling of CLOs affect your leverage and liquidity? A: Calling CLOs will allow us to re-lever assets, freeing up cash for more originations. We aim to reset leverage to around 75% advance rates, which will help achieve our core portfolio target. (Jerry Bagmanan, CFO & COO) Q: Can you expand on the pro forma numbers for New Point and how they relate to your guidance? A: Pro forma numbers will be out soon and should help in modeling the forward-looking combined business. They will provide guidance on volume numbers and expected results. (Jerry Bagmanan, CFO & COO) Q: What impact would a GSE privatization scenario have on your business? A: A GSE privatization would likely have minimal impact. The federal government aims to maintain liquidity in the housing sector, ensuring it remains the lowest cost of capital in commercial real estate. (Mike Camporado, President) Q: How does the current market for bridge loans compare to 2021-2022? A: The current market is more rational, with higher quality assets and better credit metrics. We are focusing on high-quality, newer multi-family assets rather than older, transitional properties. (Mike Camporado, President) Q: What does New Point need to ramp up origination activity? A: New Point needs a larger sourcing network and more infrastructure. We are expanding our net across the country and adding people to drive volume. (Mike Camporado, President) Q: What will finally spark a sustained recovery in investment sales? A: There may not be a specific catalyst; it will likely be a gradual acceptance phase where investors and regulators push for marking loans appropriately. (Mike Camporado, President) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
01-07-2025
- Business
- Business Wire
Franklin BSP Realty Trust, Inc. Announces Closing of NewPoint Holdings JV L.L.C. Acquisition
NEW YORK--(BUSINESS WIRE)--Franklin BSP Realty Trust, Inc. (NYSE: FBRT) ('FBRT' or the 'Company') today announced the closing of its previously announced acquisition of NewPoint Holdings JV L.L.C. ('NewPoint') for a total consideration of $425 million. For additional details on the transaction, please refer to the press release issued by FBRT on March 10, 2025. Richard Byrne, CEO of FBRT and Chairman of the FBRT Board of Directors, said, 'This acquisition represents a transformational milestone for FBRT, strategically expanding our multifamily lending capabilities. The transaction is highly synergistic and positions FBRT to deliver long-term stockholder value through book value growth and enhanced earnings streams.' Further commenting on the acquisition, Michael Comparato, President of FBRT, shared, 'By adding agency lending capabilities onto our platform, we've taken a major step toward delivering a fully integrated, 'one-stop shop' solution for our clients. The cultural alignment we recognized early on with NewPoint has only deepened through the closing process and we look forward to executing on future opportunities in partnership with the NewPoint team.' About Franklin BSP Realty Trust, Inc. Franklin BSP Realty Trust, Inc. (NYSE: FBRT) is a real estate investment trust that originates, acquires and manages a diversified portfolio of commercial real estate debt secured by properties located in the United States. As of March 31, 2025, FBRT had approximately $5.7 billion of assets. FBRT is externally managed by Benefit Street Partners L.L.C., a wholly owned subsidiary of Franklin Resources, Inc. For further information, please visit About NewPoint Real Estate Capital NewPoint Real Estate Capital L.L.C. (NewPoint) is a prominent commercial real estate finance company delivering lending solutions to investors of multifamily, affordable housing, seniors housing, healthcare, and manufactured housing properties nationwide. NewPoint leverages technology, data, capital, and the expertise of its industry-leading team to provide loan origination, servicing, execution, and a suite of Agency and curated proprietary products to meet the evolving needs of borrowers. In addition to being a Fannie Mae DUS®, Freddie Mac Optigo®, and FHA/HUD MAP and LEAN Lender, as well as an approved issuer of Ginnie Mae securities, NewPoint also offers proprietary bridge and affordable housing financing, as well as third-party placement solutions. Forward-Looking Statements Certain statements included in this press release are forward-looking statements. Those statements include statements regarding the intent, belief or current expectations of the Company and members of our management team, as well as the assumptions on which such statements are based, and generally are identified by the use of words such as "may," "will," "seeks," "anticipates," "believes," "positions," "estimates," "expects," "plans," "intends," "should" or similar expressions. Actual results may differ materially from those contemplated by such forward-looking statements. Further, forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law. The Company's forward-looking statements are subject to various risks and uncertainties. Factors that could cause actual outcomes to differ materially from our forward-looking statements include macroeconomic factors in the United States including inflation, changing interest rates and economic contraction, the extent of any recoveries on delinquent loans, the financial stability of our borrowers and the other, risks and important factors contained and identified in the Company's filings with the Securities and Exchange Commission ('SEC'), including its Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and its subsequent filings with the SEC, any of which could cause actual results to differ materially from the forward-looking statements. The forward-looking statements included in this communication are made only as of the date hereof.
