• It's like **JPMorgan Chase**, but solely focused on lending money for commercial real estate projects.
• Think of it as the commercial real estate debt-lending division of a firm like **Blackstone**, structured as a publicly traded REIT.

• Commercial Real Estate First Mortgage Loans: FBRT originates and acquires senior secured loans collateralized by institutional quality commercial properties across various property types.
• Opportunistic Real Estate Debt and Equity Investments: FBRT also invests in other commercial real estate debt instruments like mezzanine loans, preferred equity, and commercial mortgage-backed securities (CMBS) to diversify its portfolio and enhance returns.

Franklin BSP Realty Trust (FBRT) - Major Customers

Franklin BSP Realty Trust (FBRT) operates as a commercial real estate credit REIT. Its business involves originating, acquiring, managing, and servicing a diversified portfolio of commercial real estate debt investments, primarily senior loans secured by various property types.

Therefore, FBRT sells its financial products (loans) primarily to other companies, specifically commercial real estate sponsors, developers, and owners. Due to the nature of its diversified lending business and borrower confidentiality, FBRT does not publicly disclose a list of specific "major customer companies" by name, nor are these typically public companies with stock symbols in the way a traditional product-selling company would have major buyers.

Instead, FBRT's customers are best described by the types of commercial real estate entities they lend to, which can be broadly categorized as:

• Commercial Real Estate Developers: Companies and sponsors focused on the acquisition, development, and construction of commercial properties across various asset classes (e.g., multifamily, industrial, office, retail, hospitality). They seek financing for their project pipelines.
• Commercial Real Estate Owners/Operators: Entities that own and manage existing income-producing commercial properties. They require financing for acquisitions, refinancing existing debt, or capital improvements to their properties.
• Real Estate Investment Firms/Sponsors: Institutional and private equity firms that invest in commercial real estate. These firms often seek large-scale financing solutions for their portfolio assets, new acquisitions, or recapitalizations.

These customers are typically private entities seeking financing for their commercial real estate projects and portfolios.

• Benefit Street Partners L.L.C. (affiliate of Franklin Resources, Inc., NYSE: BEN)
• Deloitte & Touche LLP

Richard Byrne, Chairman & CEO

Richard Byrne has served as Chairman of the Board of Directors and Chief Executive Officer of Franklin BSP Realty Trust (FBRT) since September 2016. He is also the President of Benefit Street Partners (BSP), the external manager of FBRT, and serves as Chairman and CEO of Franklin BSP Capital Corp. and Benefit Street Partners Multifamily Trust. Mr. Byrne is the founder and Chief Executive Officer of KASAI Elite Grappling Championships. Prior to joining BSP in 2013, he was Chief Executive Officer of Deutsche Bank Securities, Inc. from 2008 to 2013. Before Deutsche Bank, Mr. Byrne was global co-head of the leveraged finance group and global head of credit research at Merrill Lynch from 1985 to 1999.

Jerome Baglien, CFO, COO & Treasurer

Jerome Baglien serves as FBRT's Chief Financial Officer, Chief Operating Officer, and Treasurer, functioning as a managing director and portfolio manager of real estate. Before joining BSP in 2016, Mr. Baglien was director of fund finance for GTIS Partners LP, where he was responsible for all finance and operations for GTIS funds. Previously, he was an accounting manager at iStar Inc. with oversight of loans and special investments.

Michael Comparato, President

Michael Comparato serves as President of FBRT. He is also a Senior Managing Director and the Head of Commercial Real Estate at Benefit Street Partners, FBRT's external manager. Prior to joining BSP in 2015, Mr. Comparato was Head of U.S. Equity Investments at Ladder Capital. Before Ladder Capital, he was President of BankAtlantic Commercial Mortgage Capital, the CMBS affiliate of BankAtlantic, and also previously ran Compson Holding Corporation, which made various equity investments in commercial real estate assets and publicly traded REITs.

Micah Goodman, Managing Director, General Counsel and Chief Administrative Officer

Micah Goodman is a Managing Director, General Counsel, and Chief Administrative Officer of Benefit Street Partners' commercial real estate business, and General Counsel and Corporate Secretary of Benefit Street Partners Realty Trust, Inc. Prior to joining BSP in 2014, Mr. Goodman was an executive director in the transaction management group at Ladder Capital Finance, where his team was responsible for structuring, negotiating, and closing commercial real estate loans.

Matthew Jacobs, Managing Director, Chief Credit Officer

Matthew Jacobs serves as Managing Director and Chief Credit Officer for Franklin BSP Realty Trust.

The structural decline in demand and value for office properties driven by the widespread adoption of remote and hybrid work models. This trend directly impacts the collateral underlying a significant portion of Franklin BSP Realty Trust's loan portfolio, increasing the risk of defaults and potential losses for the company.

Expected Drivers of Future Revenue Growth for Franklin BSP Realty Trust (FBRT)

Over the next 2-3 years, Franklin BSP Realty Trust (FBRT) anticipates several key drivers for future revenue growth:

1. Integration and Growth of NewPoint Acquisition: The recent acquisition of NewPoint is expected to be a significant contributor to FBRT's earnings. NewPoint reported a record $2.2 billion in originations in Q3 2025, adding $9.3 million to distributable earnings in its first full quarter as part of FBRT. The full integration of FBRT's loan servicing into NewPoint is projected to be completed by Q1 2026, with an expected annual earnings boost of $0.04 to $0.06 per fully converted share. Further growth in NewPoint's earnings contribution is anticipated to enhance GAAP earnings and book value by the first half of 2026, and distributable earnings by the second half of 2026.
2. Expansion of Core Loan Portfolio, Focused on Multifamily: FBRT aims to grow its core portfolio back to a target size of at least $5 billion in the coming quarters. The company continues to prioritize new loan originations, particularly within the multifamily sector, which comprised a substantial portion of its new loan commitments in Q1 and Q3 2025. Analysts also view the strategic recycling of capital from legacy asset sales and Collateralized Loan Obligations (CLOs) into multifamily lending as a critical lever for generating higher, recurring revenue streams.
3. Capital Recycling and Resolution of Real Estate Owned (REO) Assets: FBRT is actively working to divest REO assets and redeploy the capital into new, productive investments. The company reduced its REO portfolio by approximately $63 million through asset sales in Q4 2024. This ongoing resolution of REO is expected to generate an additional $0.25 to $0.30 annually to distributable earnings as the equity is put back to work.
4. Strong Performance of the Conduit Business: The company's conduit business has shown robust performance, particularly in Q3 2025, driven by improved CMBS (Commercial Mortgage-Backed Securities) market liquidity and healthy investor demand. Management indicated that if favorable market conditions persist, the CMBS performance in Q4 2025 could rank among the strongest quarters in the company's history.
5. Optimizing Financing through New CLO Issuances: FBRT strategically utilizes CLOs to manage its debt and enhance its origination capacity. The closing of its 12th CRE CLO after Q3 2025 is expected to lower interest expense and provide approximately $1 billion in additional origination capacity for its loan portfolio. This financial optimization supports increased lending activity and improved profitability.

Share Repurchases

• Franklin BSP Realty Trust repurchased 540,000 shares for approximately $6 million in 2025 as of October 24.
• As of October 24, 2025, $25.6 million remained available under the Company's $65.0 million share repurchase program, which has been extended through December 31, 2026.

Share Issuance

• In July 2025, as part of the acquisition of NewPoint Holdings JV LLC, Franklin BSP Realty Trust issued 8,385,951 Class A Units of FBRT OP LLC.
• Approximately 32,071,599 shares of FBRT Common Stock were issued in October 2021 in connection with the merger with Capstead Mortgage Corporation.

Outbound Investments

• On July 1, 2025, Franklin BSP Realty Trust completed the acquisition of NewPoint Holdings JV L.L.C. for a total consideration of $428.2 million, paid with $337.3 million in cash and 8,385,951 Class A Units of FBRT OP LLC. This acquisition was a strategic expansion of multifamily lending capabilities.
• In October 2021, FBRT merged with Capstead Mortgage Corporation, a transaction that involved Capstead common stockholders receiving FBRT common stock and cash.

Capital Expenditures

• For the period ending September 30, 2025, "Purchase of real estate owned and capital expenditures" amounted to $1,250 million.
• For the period ending December 31, 2024, "Purchase of real estate owned and capital expenditures" amounted to $45 million.
• The capital expenditures forecast for the upcoming fiscal year (beyond November 7, 2025) is zero. These expenditures primarily focus on the acquisition and management of real estate owned, aligning with the company's business model as a real estate investment trust.