Franklin BSP Realty Trust, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the third quarter of 2024, the company recorded net income of $30.2 million, a slight decrease from $31.0 million in Q3 2023. For the nine months ended September 30, 2024, net income fell to $62.2 million from $114.5 million in the same period last year. This decline in profitability is attributed to a decrease in interest income, which totaled $134.1 million in Q3 2024, down from $137.0 million in Q3 2023, and $398.3 million for the nine months, compared to $420.5 million in 2023. The decrease in interest income was primarily due to an increase in non-performing loans.

Net interest income for Q3 2024 was $44.3 million, down from $59.1 million in Q3 2023, while for the nine months, it decreased to $140.3 million from $196.1 million. The company’s total income for Q3 2024 was $49.7 million, compared to $62.4 million in Q3 2023. The decline in income was influenced by a higher average carrying balance of collateralized loan obligations, which increased interest expenses to $89.9 million in Q3 2024 from $78.0 million in Q3 2023.

Strategically, Franklin BSP Realty Trust has expanded its commercial mortgage loan portfolio, which increased to $5.1 billion as of September 30, 2024, from $5.0 billion at the end of 2023. The company also reported a significant rise in real estate owned, held for sale, amounting to $284.4 million, up from $103.7 million at the end of 2023. This increase reflects the acquisition of properties through foreclosure, including a multifamily property in San Antonio, TX.

The company’s total assets rose to $6.3 billion as of September 30, 2024, compared to $6.0 billion at the end of 2023, while total liabilities increased to $4.7 billion from $4.3 billion. Stockholders' equity decreased to $1.5 billion from $1.6 billion during the same period.

In terms of cash flow, net cash provided by operating activities for the nine months ended September 30, 2024, was $112.3 million, down from $141.5 million in 2023. The company also reported a cash dividend of $0.355 per share for Q3 2024, consistent with the previous year.

Overall, Franklin BSP Realty Trust's financial performance reflects challenges in interest income and profitability, alongside strategic growth in its loan portfolio and real estate holdings.

About Franklin BSP Realty Trust, Inc.

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