Franklin BSP Realty Trust, Inc. (NYSE:FBRT) (“FBRT” or the “Company”) today announced the Company closed a record $1.6 billion of commitments in the fourth quarter of 2021, resulting in record annual originations of 95 loans totaling approximately $3.2 billion of commitments for the year.
Michael Comparato, Head of Commercial Real Estate for Benefit Street Partners, L.L.C., the Company’s external manager, stated: “FBRT’s record originations of $3.2 billion in 2021 with $1.6 billion of that amount coming in the fourth quarter further proves the strength of our middle-market commercial real estate lending strategy. We begin 2022 with a robust pipeline and are confident we will continue to deliver attractive risk-adjusted returns for our stockholders.”
Fourth Quarter 2021 Activity
- Originated and funded a record $1.5 billion with an additional $100 million of future funding obligations, relating to 38 floating-rate loans.
- The 38 loans have a stabilized loan-to-value (“LTV”) and yield (1) of 63.6% and 4.0%, respectively.
- 93% of fourth quarter new originations were multifamily.
- As of quarter end, 70% of the loan portfolio was invested in multifamily credits.
- Funded approximately $39 million for loans closed prior to the fourth quarter.
- Received $532 million from loan repayments and dispositions.
- Closed merger with Capstead Mortgage Corporation on October 19, 2021, increasing our total common and preferred equity to over $1.8 billion at time of closing and listing our common stock on the New York Stock Exchange.
- Called BSPRT 2018-FL3, a Commercial Real Estate Collateralized Loan Obligation (“CRE CLO”), on December 15, 2021.
- Closed BSPRT 2021-FL7, a $900 million managed CRE CLO, on December 21, 2021. The CLO advance rate was 80.25% and the weighted average cost of funds was 1.64%.
- Declared a $0.355 cash dividend on common stock representing a 9.5% annualized yield on 12/31/2021 closing stock price and an 8.0% annualized yield on 9/30/2021 book value.
1. Yield is defined as: (i.) current spread of the loan plus (ii.) any applicable index or index floor plus (iii.) origination and exit fees amortized over the initial maturity term of the loan.
