Franklin BSP Realty Trust posts Q3 net loss on credit losses

Overview

• US real estate investment trust posted Q3 net loss and negative distributable earnings

• Company repurchased 7.4 mln shares for $60.5 mln, boosting book value per share

• Quarterly results impacted by loan loss provision and focus on resolving legacy assets

Outlook

• Company did not provide specific financial guidance for future quarters or full year

Result Drivers

• SHARE REPURCHASES - Co repurchased 7.4 mln shares for $60.5 mln, resulting in book value accretion

• CREDIT LOSSES - $43.1 mln net provision for credit losses weighed on quarterly results

• LEGACY ASSET RESOLUTION - Co focused on resolving legacy assets as part of quarterly priorities

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialized reits peer group is "buy"

• Wall Street's median 12-month price target for Franklin Bsp Realty Trust, Inc. is $12.00, about 87.2% above its October 27 closing price of $6.41

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago

Reuters Recommended Reads

• Oct 26 - TPG RE Finance Trust Q3 distributable earnings fall on realized loan loss

• Oct 26 - Alexandria Real Estate Q3 net loss widens on impairments

• Oct 27 - National Bank Holdings posts Q3 loss on credit provisions

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)