Franklin BSP Realty Trust, Inc. · NYSE:FBRT
Franklin BSP Realty Trust — Benefit Street Partners Realty Trust — Q4 2016 Earnings Presentation
27 slides from Franklin BSP Realty Trust's earnings presentation, Apr 7, 2017
Slide 1: Financing the Growth of Commercial Real Estate
Financing the Growth of Commercial Real Estate Note: This program does not own the properties pictured. The properties serve as the underlying collateral for mezzanine loan s h eld by BSP Realty Trust. Fourth Quarter 2016 Investor Presentation
Slide 2: Important Information
2 IMPORTANT INFORMATION This presentation was prepared exclusively for the benefit and use of the Benefit Street Partners Realty Trust, Inc . (“BSP Realty Trust”) investors to whom it is directly addressed and delivered and does not carry any right of publication or disclosure, in whole or in part,
Slide 3: Today's Speakers
3 Richard J. Byrne Chief Executive Officer and President of BSP Realty Trust Jerome S. Baglien Chief Financial Officer of BSP Realty Trust TODAY’S SPEAKERS Richard Byrne is president of Benefit Street Partners and is based in BSP’s New York office . Mr . Byrne is also Chairman and Chief Executive Of
Slide 4: Table of Contents
4 TABLE OF CONTENTS Section I Overview of Adviser Section II Overview of BSP Realty Trust Section III 4Q16 Financial Update Section IV Strategic Initiatives
Slide 5: Executive Summary
5 EXECUTIVE SUMMARY ▪ For the quarter ended 12/31/16 , net income was $0.20 per share vs . $0.17 per share for the quarter ended 9/30/16. ▪ Our dividend remained unchanged at $0.52 per share quarterly, or $2.06 per share annually. ▪ The Company’s portfolio consisted of 71 loans and 6 CMBS investment
Slide 6: Section I – Overview of Adviser
6 Section I – Overview of Adviser — Benefit Street Partners L.L.C. (“BSP” or the “Adviser”)
Slide 7: Adviser: BSP Overview
7 Section I - Overview of Adviser: BSP Overview Assets / Committed Capital Under Management $20 billion 1 Investment Record 8 years 2 Dedicated Investment Professionals 90+ investment professionals Offices New York, Charlotte, Houston, Providence Investment Strategies Private Debt /Opportunistic Cre
Slide 8: Adviser: BSP Platform
8 Section I - Overview of Adviser: BSP Platform Established , high - quality institutional infrastructure to support all credit activities Extensive networks and expertise across numerous sectors; Direct origination and research capabilities Seek to achieve downside protection through lien protectio
Slide 9: Adviser: BSP Commercial Real Estate Overview
9 Section I - Overview of Adviser: BSP Commercial Real Estate Overview ▪ BSP’s extensive network of brokers and borrowers helps drive proprietary deal flow and generates numerous high return opportunities. ▪ BSP team has originated $2.5+ billion of commercial mortgages since inception. ▪ Leverage re
Slide 10: Section II – Trust
10 Section II – Overview of BSP Realty Trust
Slide 11: Trust: Investment Strategy
11 We are focused on originating commercial real estate debt investments with attractive risk adjusted returns Primary investment objectives: ▪ To pay attractive and stable cash distributions to stockholders; and ▪ To preserve and return stockholders’ invested capital . Note: There can be no assuran
Slide 12: Trust: Loan Portfolio Snapshot
12 Section II - Overview of BSP Realty Trust : Loan Portfolio Snapshot ▪ 71 Portfolio Loans ▪ $1.1 Billion in Outstanding Par Amount ▪ 11.3% Weighted Average Levered Yield 1 ▪ 84% Senior Loans ▪ 92% Floating Rate ▪ 73% Loan to Value 2 Loan Type Fixed vs. Floating 15% 84% 1% Mezzanine Senior Subordin
Slide 13: Trust: Portfolio Diversification
13 Section II - Overview of BSP Realty Trust : Portfolio Diversification Loan Portfolio by Collateral Type Loan Portfolio by Region 16.9% 4.9% 5.0% 29.2% 30.3% 13.7% Hospitality Industrial Mixed Use Multifamily Office Retail 1.9% 17.5% 19.6% 5.2% 17.3% 17.8% 7.4% 13.3% New England Mideast Great Lake
Slide 14: Trust: Portfolio Composition
14 Section II - Overview of BSP Realty Trust: Portfolio Composition BSP Realty Trust’s senior loan portfolio has increased while mezzanine loans have declined Portfolio Composition by Loan Type Loan Type Q4 20 15 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Senior 79% 80% 81% 80% 84% Mezzanine 20% 19% 18% 19% 15
Slide 15: Trust: Distribution History
15 Since inception, BSP Realty Trust has paid out an aggregate of $7.41 per share of regular distributions in cash and DRIP. Section II - Overview of BSP Realty Trust : Distribution History 0.52 0.52 0.52 0.52 0.52 0.52 0.52 0.52 0.52 0.52 0.52 0.52 0.52 0.52 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.6
Slide 16: Trust: Book Value Per Share History
16 Section II - Overview of BSP Realty Trust : Book Value Per Share History 20.71 21.20 21.51 21.36 21.28 21.14 21.02 20.85 20.51 20.33 20.10 19.87 $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Book Value Per Share Source: SEC filings as of 3/29/
Slide 17: Trust: Financing Sources
17 Section II - Overview of BSP Realty Trust : Financing Sources JP Morgan • $300mm Line • Libor + 225 to 250 • Avg. Spread of 230 • June 2017 Maturity • $257mm drawn Goldman Sachs • $250mm Line • Libor + 235 to 285 • Avg. Spread of 260 • December 2019 Maturity • $0.0mm drawn RFT FL1 – 2015 • $428mm
Slide 18: Experienced Board and Management Team
18 Richard J. Byrne Chief Executive Officer and President Jerome S. Baglien Chief Financial Officer and Treasurer Elizabeth K. Tuppeny Independent Director Peter J. McDonough Independent Director Richard J. Byrne Chairman BSP Realty Trust Board of Directors BSP Realty Trust Officers Legacy New Jamie
Slide 19: Section III – 4Q16 Financial Update
19 Section III – 4Q16 Financial Update
Slide 20: 4Q16 Financial Highlights
20 Section III – 4Q16 Financial Update: Financial Highlights ($’s in thousands, where applicable) Source: SEC filings as of 3/29/17. Note: PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. ANY INVESTMENT INVOLVES SIGNIFICANT RISK, INCLUDING LOSS O F T HE ENTIRE INVESTMENT. 1 Debt to
Slide 21: 4Q16 Financial Update: Credit Quality
21 21 Section III – 4Q6 Financial Update: Credit Quality Loans in non - accrual status Loans on watchlist None None Average Risk Rating 2.1 Investment Rating Summary Description 1 Investment exceeding fundamental performance expectations and/or capital gain expected. Trends and risk factors since ti
Slide 22: Section IV – Strategic Initiatives
22 Section IV – Strategic Initiatives
Slide 23: Strategic Initiatives
23 Note: There can be no assurance that BSP Realty Trust will be able to implement its investment strategy and achieve its investment objectives. Views expressed are those of BSP . Deploy Capital ▪ Leverage breadth of BSP’s commercial real estate platform to originate n ew loans with attractive risk
Slide 24: 2017 Year-to-Date Originations
24 Notes: As of March 31, 2017. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. ANY INVESTMENT INVOLVES SIGNIFICANT RISK, INCLUDING LOSS O F T HE ENTIRE INVESTMENT. Views expressed are those of BSP . There can be no assurance that signed applications will close and fund. 1 Loan to
Slide 25: Strategic Initiatives: Financing Sources
25 Section IV – Strategic Initiatives: Financing Sources JP Morgan • $300mm Line • Libor + 225 to 250 • Avg. Spread of 230 • June 2017 Maturity • $257mm drawn Goldman Sachs • $250mm Line • Libor + 235 to 285 • Avg. Spread of 260 • December 2019 Maturity • $0.0mm drawn RFT FL1 – 2015 • $428mm Line •
Slide 26: Risk Factors
26 RISK FACTORS Our potential risks and uncertainties are presented in the section titled “Item 1A. Risk Factors” disclosed in our Annual Rep ort on Form 10 - K for the year ended December 31, 2016. The following are some of the risks and uncertainties, although not all risks and uncertainties, that
Slide 27: Financing the Growth of Commercial Real Estate
Financing the Growth of Commercial Real Estate www.bsprealtytrust.com ▪ Investor and Financial Advisors can call (844) 785 - 4393 for account information, balances and the status of submitted paperwork ▪ Financial Advisors may view client accounts, statements and tax forms at www.dstvision.com ▪ Sha
Benefit Street Partners Realty Trust — Q4 2016 Earnings Presentation on 6ix