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FBRT NYSE· Franklin BSP Realty Trust Inc.
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FBRT NYSE· Franklin BSP Realty Trust Inc.
Earnings report Q2 2023

FBRT Reports Increase in Revenue for Latest Quarter

Segments of revenue

FBRT's revenue for the latest quarter can be broken down into three segments. Revenue from real estate owned was $6.4 million, representing an increase from the previous quarter's revenue of $3.3 million. This growth can be attributed to the addition of retail properties held for investment. Additionally, there was a realized gain on commercial mortgage loans, held for sale, measured at fair value, amounting to $2.1 million. Lastly, there were no sales of available for sale trading securities during the quarter.

Strengths

FBRT demonstrated strength in its revenue performance for the latest quarter. The increase in revenue from real estate owned can be attributed to the acquisition of additional retail properties, which indicates a successful expansion strategy. The realized gain on commercial mortgage loans also contributed positively to the company's financial performance.

Challenges

One potential weakness for FBRT in the latest quarter is the provision for credit losses, which amounted to $21.6 million. This represents a significant increase from the previous quarter's provision of $4.4 million. Further analysis is needed to understand the reasons behind this increase and assess its impact on the company's overall financial health.

Noteworthy

It is worth noting that FBRT reported a realized gain on extinguishment of debt of $0.3 million for the latest quarter. This gain was related to the buybacks of BSPRT 2021-FL7 E and BSPRT 2018-FL4 D. Additionally, there were no sales of available for sale trading securities during the quarter.

Summary

FBRT reported a strong performance in terms of revenue for the latest quarter. The company experienced an increase in revenue from real estate owned, driven by the acquisition of additional retail properties. The realized gain on commercial mortgage loans also contributed positively to the company's financial performance. However, the significant increase in provision for credit losses poses a challenge that requires further analysis. Overall, FBRT's revenue growth indicates a positive trajectory for the company.

Source documents

Form 10-Q  filed on Jul 31, 2023
33 pages scanned

Reference data

Company financials Q2 revenue 49.4M
Analyst estimates Q2 EPS missed by -4.29%
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