Franklin BSP (FBRT) Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
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Should l Buy FBRT?
Source: NASDAQ.COM
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Analyst Views on FBRT
Wall Street analysts forecast FBRT stock price to rise
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 8.710
Low
14.00
Averages
14.67
High
15.00
Current: 8.710
Low
14.00
Averages
14.67
High
15.00
About FBRT
Franklin BSP Realty Trust, Inc. is a real estate finance company. The Company primarily originates, acquires, and manages a diversified portfolio of commercial real estate debt investments secured by properties located within and outside the United States. Its investment objective is to provide its common shareholders attractive, risk-adjusted returns through a stable dividend and capital growth. It operates through four segments: the real estate debt business, the real estate securities business, the commercial real estate conduit business and the real estate-owned business. The Company invests in commercial real estate debt investments, which include first mortgage loans, subordinated mortgage loans, mezzanine loans and participations in such loans. It also originates conduit loans that intend to sell through its taxable REIT subsidiary (TRS) into commercial mortgage-backed securities securitization transactions. The investment advisor of the Company is Benefit Street Partners L.L.C.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Rosen Law Firm Investigates Franklin BSP Realty Trust for Potential Securities Claims
- Securities Claims Investigation: Rosen Law Firm has announced an investigation into Franklin BSP Realty Trust due to potential misleading business information issued to investors, exposing shareholders to possible securities claims.
- Earnings Miss Impact: Franklin BSP Realty Trust reported Q4 earnings of $0.120 per share, missing analyst expectations of $0.280, with revenue at $81.12 million falling short of the $93.65 million consensus, resulting in a 14.18% stock price drop on the announcement day.
- Class Action Preparation: The firm is preparing a class action lawsuit seeking compensation for investor losses, with no out-of-pocket fees or costs required from investors.
- Law Firm Credentials: Rosen Law Firm specializes in securities class actions and has recovered over $438 million for investors in 2019 alone, being ranked first by ISS Securities Class Action Services in 2017, highlighting its successful track record and resource capabilities in this field.
See More
Franklin BSP (FBRT) Earnings Call Transcript
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Franklin BSP Realty Trust Cuts Quarterly Dividend by 43.7%
- Dividend Cut Announcement: Franklin BSP Realty Trust has declared a quarterly dividend of $0.20 per share, representing a significant 43.7% decrease from the previous dividend of $0.355, indicating financial pressure as the company shifts towards stable earnings.
- Yield Implications: Following this dividend adjustment, the forward yield stands at 9.42%, which, while still attractive, may undermine investor confidence and future capital inflows due to the substantial cut.
- Record and Payment Dates: The new dividend will be payable on April 15, with a record date of March 31 and an ex-dividend date also set for March 31, requiring investors to hold shares by this date to qualify for the dividend.
- Core Asset Target: Franklin BSP Realty Trust has outlined a core book target of $4.8 billion to $5 billion, signaling a strategic shift aimed at achieving more stable earnings, despite facing short-term challenges.
See More
Franklin BSP Realty Trust Q4 Earnings Call Highlights
- Leadership Changes: Franklin BSP Realty Trust appointed Mike Comparato as CEO and Brian Buffone as President, representing a natural progression in executing the company's strategy in a dynamic market, while Richard Jan Byrne remains as Chairman focusing on strategic oversight.
- Dividend Reset: Management has decided to reset the quarterly dividend to $0.20 per share to stabilize book value and better align current earnings, despite the company's capacity to support a higher dividend, reflecting a commitment to future financial health.
- Strategic Transformation: The company has transitioned from being a pure-play mortgage REIT to a commercial real estate investment platform, which, while lowering overall dividend yield, will provide significantly more earnings stability and stronger long-term book value growth.
- Financial Performance: Franklin BSP reported GAAP net income of $18.4 million and distributable earnings of $0.12 per share, despite including $9.8 million in realized losses, indicating ample liquidity and financing capacity, with a $14.4 million stock repurchase contributing to book value enhancement.
See More
Franklin BSP Realty Trust Misses FY Non-GAAP EPS Expectations
- Disappointing Performance: Franklin BSP Realty Trust reported a FY Non-GAAP EPS of $0.49, missing expectations by $0.17, indicating pressure on profitability that could affect investor confidence.
- Net Interest Income: The company reported net interest income of $141.95 million, which, while stable, failed to compensate for the EPS shortfall, potentially leading to future stock price volatility.
- Market Reaction Outlook: Given the earnings miss, the market is expected to adopt a cautious stance towards Franklin BSP Realty Trust's future performance, which may influence shareholder investment decisions and market confidence.
- Financial Transparency Improvement: The company's efforts in financial disclosure, although not improving current performance, help enhance investor understanding and trust in its long-term strategy.
See More
Franklin BSP Realty Trust Q4 Earnings Announcement Scheduled
- Earnings Announcement Schedule: Franklin BSP Realty Trust (FBRT) is set to announce its Q4 2023 earnings on February 11th after market close, with consensus EPS estimate at $0.27, reflecting a 10% year-over-year decline.
- Performance Expectation Analysis: Over the past two years, FBRT has only beaten EPS estimates 25% of the time and has not exceeded revenue estimates, indicating volatility in its profitability.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen one upward revision and one downward revision, while revenue estimates have experienced one upward revision with no downward adjustments, suggesting a cautious market outlook.
- Financial Overview: FBRT's financial data and dividend scorecard highlight its market performance, and despite facing challenges, it remains crucial to monitor its future financial health.
See More
Rosen Law Firm Investigates Franklin BSP Realty Trust for Potential Securities Claims
- Securities Claims Investigation: Rosen Law Firm has announced an investigation into Franklin BSP Realty Trust due to potential misleading business information issued to investors, exposing shareholders to possible securities claims.
- Earnings Miss Impact: Franklin BSP Realty Trust reported Q4 earnings of $0.120 per share, missing analyst expectations of $0.280, with revenue at $81.12 million falling short of the $93.65 million consensus, resulting in a 14.18% stock price drop on the announcement day.
- Class Action Preparation: The firm is preparing a class action lawsuit seeking compensation for investor losses, with no out-of-pocket fees or costs required from investors.
- Law Firm Credentials: Rosen Law Firm specializes in securities class actions and has recovered over $438 million for investors in 2019 alone, being ranked first by ISS Securities Class Action Services in 2017, highlighting its successful track record and resource capabilities in this field.
See More
Franklin BSP (FBRT) Earnings Call Transcript
See More
Franklin BSP Realty Trust Cuts Quarterly Dividend by 43.7%
- Dividend Cut Announcement: Franklin BSP Realty Trust has declared a quarterly dividend of $0.20 per share, representing a significant 43.7% decrease from the previous dividend of $0.355, indicating financial pressure as the company shifts towards stable earnings.
- Yield Implications: Following this dividend adjustment, the forward yield stands at 9.42%, which, while still attractive, may undermine investor confidence and future capital inflows due to the substantial cut.
- Record and Payment Dates: The new dividend will be payable on April 15, with a record date of March 31 and an ex-dividend date also set for March 31, requiring investors to hold shares by this date to qualify for the dividend.
- Core Asset Target: Franklin BSP Realty Trust has outlined a core book target of $4.8 billion to $5 billion, signaling a strategic shift aimed at achieving more stable earnings, despite facing short-term challenges.
See More
Franklin BSP Realty Trust Q4 Earnings Call Highlights
- Leadership Changes: Franklin BSP Realty Trust appointed Mike Comparato as CEO and Brian Buffone as President, representing a natural progression in executing the company's strategy in a dynamic market, while Richard Jan Byrne remains as Chairman focusing on strategic oversight.
- Dividend Reset: Management has decided to reset the quarterly dividend to $0.20 per share to stabilize book value and better align current earnings, despite the company's capacity to support a higher dividend, reflecting a commitment to future financial health.
- Strategic Transformation: The company has transitioned from being a pure-play mortgage REIT to a commercial real estate investment platform, which, while lowering overall dividend yield, will provide significantly more earnings stability and stronger long-term book value growth.
- Financial Performance: Franklin BSP reported GAAP net income of $18.4 million and distributable earnings of $0.12 per share, despite including $9.8 million in realized losses, indicating ample liquidity and financing capacity, with a $14.4 million stock repurchase contributing to book value enhancement.
See More
Franklin BSP Realty Trust Misses FY Non-GAAP EPS Expectations
- Disappointing Performance: Franklin BSP Realty Trust reported a FY Non-GAAP EPS of $0.49, missing expectations by $0.17, indicating pressure on profitability that could affect investor confidence.
- Net Interest Income: The company reported net interest income of $141.95 million, which, while stable, failed to compensate for the EPS shortfall, potentially leading to future stock price volatility.
- Market Reaction Outlook: Given the earnings miss, the market is expected to adopt a cautious stance towards Franklin BSP Realty Trust's future performance, which may influence shareholder investment decisions and market confidence.
- Financial Transparency Improvement: The company's efforts in financial disclosure, although not improving current performance, help enhance investor understanding and trust in its long-term strategy.
See More
Franklin BSP Realty Trust Q4 Earnings Announcement Scheduled
- Earnings Announcement Schedule: Franklin BSP Realty Trust (FBRT) is set to announce its Q4 2023 earnings on February 11th after market close, with consensus EPS estimate at $0.27, reflecting a 10% year-over-year decline.
- Performance Expectation Analysis: Over the past two years, FBRT has only beaten EPS estimates 25% of the time and has not exceeded revenue estimates, indicating volatility in its profitability.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen one upward revision and one downward revision, while revenue estimates have experienced one upward revision with no downward adjustments, suggesting a cautious market outlook.
- Financial Overview: FBRT's financial data and dividend scorecard highlight its market performance, and despite facing challenges, it remains crucial to monitor its future financial health.
See More
