Franklin BSP Realty Trust reported third‑quarter 2025 results with GAAP net income of $17.6 million and diluted earnings per share of $0.12, down from $24.4 million and $0.19 in the second quarter. Distributable earnings fell to $26.7 million, or $0.22 per diluted share, versus $29.0 million ($0.27) in the prior quarter.
Year‑over‑year, GAAP net income was $17.31 million ($0.12 per share) in Q3 2025 compared with $31.61 million ($0.30 per share) in Q3 2024. Revenue rose to $89.55 million, a 79.3% increase from $54.03 million in the prior year. The company’s EPS of $0.12 missed analyst estimates of $0.25 to $0.29, while revenue beat expectations of $54.25 million to $81.39 million.
The company closed $304.2 million of new loan commitments, funded $195.7 million of principal, and received $275.0 million in repayments. It transferred $33.9 million of principal to held‑for‑sale and maintained a watch list of ten loans, eight of which are risk‑rated four and two risk‑rated five.
Franklin BSP Realty Trust completed its $425 million acquisition of NewPoint Holdings JV LLC on July 1 2025. The agency mortgage origination and servicing platform is now fully integrated, and the servicing portfolio stands at $47.3 billion. Management expects the acquisition to become accretive to GAAP earnings per share in the first half of 2026 and to distributable earnings per share in the second half of 2026.
The company declared a common‑stock cash dividend of $0.355 per share for Q3 2025, which was paid on October 10 2025. As of September 30 2025, book value was $14.29 per diluted share on a fully converted basis.
Management emphasized that integration is proceeding well and that the firm remains on track to grow distributable earnings through CLO re‑leveraging, REO capital redeployment, and NewPoint’s contribution. The company maintains a cautious but optimistic outlook amid macroeconomic headwinds.
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