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Franklin BSP Realty Trust posts Q3 net loss on credit losses

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Loss Per Share

$0.41

Q3 Net Loss

$27.04 mln

Q3 Net Interest Income

$24.37 mln

Q3 Loan Loss Provision

-$43.11 mln


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


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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