Monitor the trajectory of Distributable Earnings before realized losses ($0.22/share) as a cleaner run-rate vs the $0.20 dividend. The dividend cut and share repurchase suggest management believes BV is stable but earnings recovery is uncertain. The upcoming Q2 2026 results will show if credit provisions and realized losses moderate.
Price Chart
Executive Summary
Franklin BSP Realty Trust reported Q1 2026 GAAP net income of $12.3M (EPS $0.07), down 48% YoY, but Distributable Earnings improved to $13.5M ($0.09 per share) from -$6.2M a year ago. Revenue of $74.4M slightly beat the $73.1M consensus, driven by NewPoint acquisition and gain on sales, though net interest income fell. The dividend was cut to $0.20/share (from $0.355) and the company repurchased $39.8M of stock. The core loan portfolio grew but credit provisions rose to $11.4M, reflecting ongoing legacy asset resolution.
Key Financial Metrics
Key Facts
- GAAP net income $12.3M vs $23.7M YoY (-48%); diluted EPS $0.07 vs $0.20
- Distributable Earnings (non-GAAP) $13.5M vs -$6.2M; Distributable EPS $0.09 vs -$0.12
- Total revenue (total income) $74.4M vs $55.0M YoY (+35%), consensus $73.1M (slight beat)
- Net interest income fell to $27.0M from $43.3M YoY
- Provision for credit losses $11.4M (net provision vs benefit of $1.9M last year)
- Quarterly dividend cut to $0.20 from $0.355 (annualized yield ~5.6% on BV)
- Repurchased 4.36M shares for $39.8M at avg $9.13, accretive $0.24 to book value
- Book value per share $14.18, up $0.03 from Q4 2025
Financial Impact
GAAP net income halved YoY; core earnings (Distributable) turned positive but dividend coverage thin; $11.4M credit provision signals ongoing credit cost headwinds
Risk Factors
- Sustained credit provisions and realized losses on legacy loans
- Further dividend cuts if Distributable Earnings coverage remains below 50%
- Interest rate sensitivity: 73% of loans floating, net interest margin compressed
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001562528-26-000016 |
| Document: a1q26investorsupplementa.htm | 0001562528-26-000016 |
| Document: fbrt-20260429.htm | 0001562528-26-000016 |
| Document: 0001562528-26-000016-index-headers.html | 0001562528-26-000016 |
| Document: 0001562528-26-000016-index.html | 0001562528-26-000016 |
| Document: 0001562528-26-000016.txt | 0001562528-26-000016 |
| 8-K Data (Synthetic) | 0001562528-26-000016 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 5, 2026 22d ago | SC 13G/A | $6.17 | awaiting T+20 | — | $6.41 (+3.89%) |
Sep 17, 2026 5w ago | 8-K | $7.60 $6.27 | ▼ −17.50% | ▼ −18.71% | $6.41 (−15.66%) |
Jul 29, 2026 12w ago | 8-K | $7.74 $8.38 | ▲ +8.27% | ▲ +4.30% | $6.41 (−17.18%) |
Jun 17, 2026 18w ago | Insider Buy | $8.43 $8.25 | ▼ −2.14% | ▼ −2.67% | $6.41 (−23.96%) |
Apr 29, 2026 25w ago | 8-K | $19.82 $19.88 | ▲ +0.30% | ▼ −4.92% | $6.41 (−67.66%) |
Apr 20, 2026 27w ago | 8-K | $19.70 $19.86 | ▲ +0.81% | ▼ −4.10% | $6.41 (−67.46%) |
Apr 17, 2026 27w ago | DEFA14A | $19.86 $19.98 | ▲ +0.58% | ▼ −4.79% | $6.41 (−67.72%) |
US Market Status
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