[8-K] Franklin BSP Realty Trust, Inc. Reports Material Event

Q: What return do the BMO Digital Return Buffer Notes provide at maturity?

Investors receive $1,104 per $1,000 note (a 10.40% gain) if the worst of the S&P 500, NASDAQ-100 or Russell 2000 ends at or above 85% of its initial level.

Q: How much principal protection do the notes offer?

The notes include a 15% buffer; losses begin only if the worst index is more than 15% below its initial level, after which loss is 1-for-1 down to an 85% maximum loss.

Q: When do the notes mature and what are the key dates?

Pricing Date: 27 Jun 2025; Settlement Date: 2 Jul 2025; Valuation Date: 29 Jul 2026; Maturity Date: 3 Aug 2026.

Q: Are the notes listed or tradable on an exchange?

No. The notes will not be listed; any resale depends on dealer quotes from BMOCM, which may be limited and at a discount.

Q: What is the estimated initial value versus the issue price?

BMO estimates the initial value at $981.99 per $1,000 note, below the $1,000 price, reflecting commissions and hedging costs.

Q: What are the U.S. federal tax considerations?

BMO intends to treat the notes as pre-paid derivative contracts; however, the IRS could assert a different treatment. Investors should consult tax advisors.

Filing Impact

(Moderate)

Filing Sentiment

(Neutral)

Form Type

8-K

Rhea-AI Filing Summary

Bank of Montreal (BMO) is offering US$425,000 of Senior Medium-Term Notes, Series K – “Digital Return Buffer Notes” – maturing 3 August 2026. The notes are linked to the worst performer of three U.S. equity benchmarks: the S&P 500, NASDAQ-100 and Russell 2000 (each a “Reference Asset”).

Key economic terms:

Digital Return: 10.40% payable at maturity if the closing level of the Least Performing Reference Asset on 29 July 2026 (the Valuation Date) is ≥ 85% of its 27 June 2025 Initial Level (“Digital Barrier”).
Buffer: first 15% downside is absorbed. If the Least Performing Reference Asset drops >15%, principal is reduced point-for-point beyond the buffer, exposing investors to a maximum loss of 85%.
No periodic coupons; single payment at maturity.
Issue price: 100%; agent’s commission 0.375%; estimated initial value: $981.99 per $1,000, reflecting embedded fees and hedging costs.
Credit exposure: unsecured, unsubordinated obligations of BMO; CUSIP 06376EMN9; not FDIC or CDIC insured; not exchange-listed.

Illustrative payouts: any Final Level ≥ 85% triggers a fixed $1,104 per $1,000 note (10.40% gain). A Final Level of 80% returns $950 (-5%); 60% returns $750 (-25%); 0% returns $150 (-85%). Upside is capped at 10.40% irrespective of index performance.

Risk considerations include potential loss of up to 85% of principal, limited upside versus direct index exposure, secondary-market illiquidity (no listing; dealer market making discretionary), BMO credit risk, tax uncertainty (treated as prepaid derivative contracts), and a price-to-public that exceeds the bank’s modeled value.

The product may appeal to investors with a moderately bullish to sideways view on large-, mega- and small-cap U.S. equities over the next ~13 months who are willing to trade upside beyond 10.40% for a 15% buffer and accept issuer credit and liquidity risk.

Bank of Montreal (BMO) offre Senior Medium-Term Notes per un valore di 425.000 USD, Serie K – "Digital Return Buffer Notes" – con scadenza il 3 agosto 2026. Le note sono collegate al peggior rendimento tra tre indici azionari statunitensi: S&P 500, NASDAQ-100 e Russell 2000 (ciascuno un "Reference Asset").

Termini economici principali:

Rendimento Digitale: 10,40% pagabile alla scadenza se il livello di chiusura del Reference Asset con la peggior performance al 29 luglio 2026 (Data di Valutazione) è ≥ 85% del suo livello iniziale del 27 giugno 2025 ("Barriera Digitale").
Buffer: il primo 15% di ribasso è assorbito. Se il Reference Asset con la peggior performance scende oltre il 15%, il capitale è ridotto punto per punto oltre il buffer, esponendo gli investitori a una perdita massima dell'85%.
Non sono previsti coupon periodici; pagamento unico alla scadenza.
Prezzo di emissione: 100%; commissione agente 0,375%; valore iniziale stimato: $981,99 per ogni $1.000, riflettendo costi incorporati e di copertura.
Esposizione creditizia: obbligazioni non garantite e non subordinate di BMO; CUSIP 06376EMN9; non assicurate FDIC o CDIC; non quotate in borsa.

Esempi di rendimento: un livello finale ≥ 85% genera un pagamento fisso di $1.104 per ogni nota da $1.000 (guadagno del 10,40%). Un livello finale dell'80% restituisce $950 (-5%); 60% restituisce $750 (-25%); 0% restituisce $150 (-85%). Il guadagno massimo è limitato al 10,40%, indipendentemente dalla performance degli indici.

Considerazioni sul rischio includono la possibile perdita fino all'85% del capitale, un potenziale di guadagno limitato rispetto all'esposizione diretta agli indici, illiquidità nel mercato secondario (nessuna quotazione; market making discrezionale da parte dei dealer), rischio di credito BMO, incertezza fiscale (trattati come contratti derivati prepagati) e un prezzo di emissione superiore al valore stimato dalla banca.

Il prodotto può interessare investitori con una visione moderatamente rialzista o laterale sulle azioni statunitensi large-, mega- e small-cap nei prossimi ~13 mesi, disposti a rinunciare a guadagni superiori al 10,40% in cambio di un buffer del 15% e ad accettare il rischio di credito dell'emittente e di liquidità.

Bank of Montreal (BMO) ofrece Notas Senior a Medio Plazo por 425.000 USD, Serie K – “Digital Return Buffer Notes” – con vencimiento el 3 de agosto de 2026. Las notas están vinculadas al peor desempeño entre tres índices bursátiles estadounidenses: S&P 500, NASDAQ-100 y Russell 2000 (cada uno un “Activo de Referencia”).

Términos económicos clave:

Retorno Digital: 10,40% pagadero al vencimiento si el nivel de cierre del Activo de Referencia con peor desempeño al 29 de julio de 2026 (Fecha de Valoración) es ≥ 85% de su Nivel Inicial del 27 de junio de 2025 (“Barrera Digital”).
Buffer: se absorbe la primera caída del 15%. Si el Activo de Referencia con peor desempeño cae más del 15%, el principal se reduce punto por punto más allá del buffer, exponiendo a los inversores a una pérdida máxima del 85%.
No hay cupones periódicos; pago único al vencimiento.
Precio de emisión: 100%; comisión del agente 0,375%; valor inicial estimado: $981,99 por cada $1,000, reflejando costos incorporados y de cobertura.
Exposición crediticia: obligaciones no garantizadas y no subordinadas de BMO; CUSIP 06376EMN9; no aseguradas por FDIC o CDIC; no listadas en bolsa.

Pagos ilustrativos: cualquier nivel final ≥ 85% genera un pago fijo de $1,104 por cada nota de $1,000 (ganancia del 10,40%). Un nivel final del 80% devuelve $950 (-5%); 60% devuelve $750 (-25%); 0% devuelve $150 (-85%). La ganancia máxima está limitada al 10,40% sin importar el desempeño del índice.

Consideraciones de riesgo incluyen posible pérdida de hasta el 85% del principal, ganancia limitada frente a la exposición directa al índice, iliquidez en el mercado secundario (sin cotización; formación de mercado discrecional por dealers), riesgo crediticio de BMO, incertidumbre fiscal (tratado como contratos derivados prepagados) y un precio al público que supera el valor modelado por el banco.

El producto puede atraer a inversores con una visión moderadamente alcista o lateral sobre acciones estadounidenses de gran, mega y pequeña capitalización durante los próximos ~13 meses, dispuestos a renunciar a ganancias superiores al 10,40% a cambio de un buffer del 15% y aceptar el riesgo crediticio del emisor y de liquidez.

뱅크 오브 몬트리올(BMO)은 2026년 8월 3일 만기인 시니어 중기채권 시리즈 K – “디지털 리턴 버퍼 노트” – 425,000달러를 제공합니다. 이 노트는 미국 주식 벤치마크 세 가지 중 최저 성과 지수에 연계되어 있습니다: S&P 500, NASDAQ-100, Russell 2000 (각각 “기준 자산”).

주요 경제 조건:

디지털 리턴: 10.40%는 2026년 7월 29일(평가일)에 최저 성과 기준 자산의 종가가 2025년 6월 27일 초기 수준의 85% 이상(“디지털 배리어”)일 경우 만기 시 지급됩니다.
버퍼: 첫 15% 하락은 흡수됩니다. 만약 최저 성과 기준 자산이 15% 이상 하락하면, 버퍼를 초과하는 부분에 대해 원금이 점진적으로 감소하여 투자자는 최대 85% 손실에 노출됩니다.
정기 쿠폰 없음; 만기 시 단일 지급.
발행 가격: 100%; 대리인 수수료 0.375%; 내재 수수료 및 헤지 비용을 반영한 추정 초기 가치: $981.99 (1,000달러당).
신용 노출: BMO의 무담보 비후순위 채무; CUSIP 06376EMN9; FDIC 또는 CDIC 보험 미적용; 거래소 상장 아님.

예시 지급: 최종 수준이 85% 이상이면 1,000달러 노트당 고정 금액 $1,104 지급 (10.40% 수익). 최종 수준 80%는 $950 지급 (-5%); 60%는 $750 지급 (-25%); 0%는 $150 지급 (-85%). 상승 수익은 지수 성과와 관계없이 최대 10.40%로 제한됩니다.

위험 고려사항에는 최대 85% 원금 손실 가능성, 직접 지수 노출 대비 제한된 상승 잠재력, 2차 시장 유동성 부족(상장 없음; 딜러 재량에 따른 시장 조성), BMO 신용 위험, 세금 불확실성(선불 파생상품 계약으로 처리), 은행 모델 가치 초과 가격 등이 포함됩니다.

이 상품은 향후 약 13개월 동안 미국 대형주, 메가캡, 소형주에 대해 다소 강세 또는 횡보 전망을 가진 투자자 중 15% 버퍼를 받고 발행자 신용 및 유동성 위험을 감수하면서 10.40% 이상의 상승 수익을 포기할 의향이 있는 투자자에게 적합할 수 있습니다.

La Banque de Montréal (BMO) propose 425 000 USD de Senior Medium-Term Notes, Série K – « Digital Return Buffer Notes » – arrivant à échéance le 3 août 2026. Les notes sont liées à la moins bonne performance parmi trois indices boursiers américains : le S&P 500, le NASDAQ-100 et le Russell 2000 (chacun un « Actif de Référence »).

Principaux termes économiques :

Rendement numérique : 10,40% payable à l’échéance si le niveau de clôture de l’Actif de Référence le moins performant au 29 juillet 2026 (date d’évaluation) est ≥ 85 % de son niveau initial du 27 juin 2025 (« Barrière numérique »).
Buffer : les 15 % de baisse initiaux sont absorbés. Si l’Actif de Référence le moins performant chute de plus de 15 %, le principal est réduit point par point au-delà du buffer, exposant les investisseurs à une perte maximale de 85 %.
Pas de coupons périodiques ; paiement unique à l’échéance.
Prix d’émission : 100 % ; commission de l’agent 0,375 % ; valeur initiale estimée : 981,99 $ pour 1 000 $, reflétant les frais intégrés et les coûts de couverture.
Exposition au crédit : obligations non garanties et non subordonnées de BMO ; CUSIP 06376EMN9 ; non assurées par la FDIC ou la CDIC ; non cotées en bourse.

Exemples de paiements : tout niveau final ≥ 85 % déclenche un paiement fixe de 1 104 $ par note de 1 000 $ (gain de 10,40 %). Un niveau final de 80 % rend 950 $ (-5 %) ; 60 % rend 750 $ (-25 %) ; 0 % rend 150 $ (-85 %). Le gain maximal est plafonné à 10,40 %, quel que soit le rendement de l’indice.

Considérations sur les risques comprennent une perte potentielle allant jusqu’à 85 % du principal, un potentiel de gain limité par rapport à une exposition directe à l’indice, une illiquidité sur le marché secondaire (pas de cotation ; market making discrétionnaire par les teneurs de marché), un risque de crédit BMO, une incertitude fiscale (traité comme des contrats dérivés prépayés) et un prix public supérieur à la valeur modélisée par la banque.

Ce produit peut intéresser les investisseurs ayant une vision modérément haussière à neutre sur les actions américaines large, méga et small caps pour les ~13 prochains mois, prêts à renoncer à un gain au-delà de 10,40 % en échange d’un buffer de 15 % et à accepter le risque de crédit de l’émetteur ainsi que le risque de liquidité.

Die Bank of Montreal (BMO) bietet Senior Medium-Term Notes in Höhe von 425.000 USD, Serie K – „Digital Return Buffer Notes“ – mit Fälligkeit am 3. August 2026 an. Die Notes sind an die schlechteste Performance von drei US-Aktienbenchmarks gekoppelt: S&P 500, NASDAQ-100 und Russell 2000 (jeweils ein „Referenzwert“).

Wichtige wirtschaftliche Bedingungen:

Digitaler Ertrag: 10,40% zahlbar bei Fälligkeit, wenn der Schlusskurs des am schlechtesten performenden Referenzwerts am 29. Juli 2026 (Bewertungsdatum) ≥ 85 % seines Anfangswerts vom 27. Juni 2025 („Digitaler Schwellenwert“) liegt.
Buffer: Die ersten 15% eines Kursrückgangs werden absorbiert. Fällt der am schlechtesten performende Referenzwert um mehr als 15 %, wird der Kapitalbetrag Punkt für Punkt über den Buffer hinaus reduziert, wodurch Anleger einem maximalen Verlust von 85 % ausgesetzt sind.
Keine periodischen Kupons; Einmalzahlung bei Fälligkeit.
Ausgabepreis: 100 %; Agenturprovision 0,375 %; geschätzter Anfangswert: 981,99 $ pro 1.000 $, was eingebaute Gebühren und Absicherungskosten widerspiegelt.
Kreditrisiko: unbesicherte, nicht nachrangige Verbindlichkeiten von BMO; CUSIP 06376EMN9; nicht FDIC- oder CDIC-versichert; nicht börsennotiert.

Beispielhafte Auszahlungen: Ein Endstand ≥ 85 % löst eine feste Zahlung von 1.104 $ pro 1.000 $-Note aus (10,40 % Gewinn). Ein Endstand von 80 % zahlt 950 $ (-5 %); 60 % zahlt 750 $ (-25 %); 0 % zahlt 150 $ (-85 %). Die Obergrenze der Rendite liegt unabhängig von der Indexentwicklung bei 10,40 %.

Risikohinweise umfassen potenzielle Verluste von bis zu 85 % des Kapitals, begrenztes Aufwärtspotenzial im Vergleich zur direkten Indexexponierung, Illiquidität am Sekundärmarkt (keine Notierung; marktgestaltendes Handeln durch Händler nach Ermessen), BMO-Kreditrisiko, steuerliche Unsicherheiten (Behandlung als vorausbezahlte Derivatverträge) und einen Emissionspreis über dem modellierten Wert der Bank.

Das Produkt könnte für Anleger interessant sein, die in den nächsten ca. 13 Monaten eine moderat bullische bis seitwärts gerichtete Sicht auf US-Aktien großer, Mega- und Small-Cap-Unternehmen haben, bereit sind, auf Gewinne über 10,40 % zu verzichten, um einen 15%igen Puffer zu erhalten, und das Emittenten-Kredit- sowie Liquiditätsrisiko akzeptieren.

Positive

10.40% fixed upside if worst-performing index finishes ≥ 85%, providing an above-market yield in a flat or modestly rising environment.
15% downside buffer mitigates moderate equity declines, offering partial capital protection compared with direct index exposure.
Short 13-month tenor limits long-term market and rate uncertainty.

Negative

Upside capped at 10.40%, materially underperforming equities if indices rally >10.4%.
Potential loss up to 85% of principal if the worst index falls more than 15%.
Issuer credit risk: payments depend solely on Bank of Montreal’s ability to pay.
Liquidity risk: no exchange listing; secondary market, if any, depends on BMOCM’s discretion at likely discounts.
Initial value below issue price ($981.99 vs $1,000) reflects embedded fees and hedging costs, creating negative carry from day one.

Insights

TL;DR Limited-term note offers 10.40% fixed upside with 15% buffer but significant tail-risk and BMO credit exposure.

The design is straightforward: a 13-month digital payoff contingent on the worst of three broad U.S. indices. Statistically, the 85% barrier provides moderate protection, yet historical drawdowns in small-caps (RTY) make breach plausible. Investors forfeit all upside beyond 10.40%, so risk-adjusted appeal depends on one’s view that a <15% decline is more likely than >10.4% appreciation. The 1.88-point markup (price – modeled value) plus 0.375% commission and potential 0.35% referral fee illustrate typical structured-note friction. An estimated breakeven occurs if the worst index ends between 84.999% and 90% of initial, where the buffer or digital feature marginally outperforms passive exposure. Net: product suits yield-seeking allocators comfortable with issuer risk; not compelling for growth-oriented investors.

TL;DR Attractive headline return, but capped upside, liquidity constraints and small-cap drag temper enthusiasm.

From a portfolio construction angle, the note behaves like a credit-linked call spread: long digital on worst-of basket, short equity upside beyond 10.4%, long put struck at 85%. Correlation among SPX/NDX/RTY means RTY dominates risk; historical vol ≈ 22% vs 15% (SPX) makes buffer less reliable. Duration just over a year mitigates rate risk but heightens reinvestment uncertainty. Lack of listing complicates exit; dealer bids likely 2–4 points under theoretical value, especially after the three-month temporary premium expires. I would size conservatively (<2% of total AUM) and treat as a tactical expression if one has high conviction of sideways markets. Impact on BMO’s credit profile is immaterial given size.

Termini economici principali:

Rendimento Digitale: 10,40% pagabile alla scadenza se il livello di chiusura del Reference Asset con la peggior performance al 29 luglio 2026 (Data di Valutazione) è ≥ 85% del suo livello iniziale del 27 giugno 2025 ("Barriera Digitale").
Buffer: il primo 15% di ribasso è assorbito. Se il Reference Asset con la peggior performance scende oltre il 15%, il capitale è ridotto punto per punto oltre il buffer, esponendo gli investitori a una perdita massima dell'85%.
Non sono previsti coupon periodici; pagamento unico alla scadenza.
Prezzo di emissione: 100%; commissione agente 0,375%; valore iniziale stimato: $981,99 per ogni $1.000, riflettendo costi incorporati e di copertura.
Esposizione creditizia: obbligazioni non garantite e non subordinate di BMO; CUSIP 06376EMN9; non assicurate FDIC o CDIC; non quotate in borsa.

Términos económicos clave:

Retorno Digital: 10,40% pagadero al vencimiento si el nivel de cierre del Activo de Referencia con peor desempeño al 29 de julio de 2026 (Fecha de Valoración) es ≥ 85% de su Nivel Inicial del 27 de junio de 2025 (“Barrera Digital”).
Buffer: se absorbe la primera caída del 15%. Si el Activo de Referencia con peor desempeño cae más del 15%, el principal se reduce punto por punto más allá del buffer, exponiendo a los inversores a una pérdida máxima del 85%.
No hay cupones periódicos; pago único al vencimiento.
Precio de emisión: 100%; comisión del agente 0,375%; valor inicial estimado: $981,99 por cada $1,000, reflejando costos incorporados y de cobertura.
Exposición crediticia: obligaciones no garantizadas y no subordinadas de BMO; CUSIP 06376EMN9; no aseguradas por FDIC o CDIC; no listadas en bolsa.

주요 경제 조건:

디지털 리턴: 10.40%는 2026년 7월 29일(평가일)에 최저 성과 기준 자산의 종가가 2025년 6월 27일 초기 수준의 85% 이상(“디지털 배리어”)일 경우 만기 시 지급됩니다.
버퍼: 첫 15% 하락은 흡수됩니다. 만약 최저 성과 기준 자산이 15% 이상 하락하면, 버퍼를 초과하는 부분에 대해 원금이 점진적으로 감소하여 투자자는 최대 85% 손실에 노출됩니다.
정기 쿠폰 없음; 만기 시 단일 지급.
발행 가격: 100%; 대리인 수수료 0.375%; 내재 수수료 및 헤지 비용을 반영한 추정 초기 가치: $981.99 (1,000달러당).
신용 노출: BMO의 무담보 비후순위 채무; CUSIP 06376EMN9; FDIC 또는 CDIC 보험 미적용; 거래소 상장 아님.

Principaux termes économiques :

Rendement numérique : 10,40% payable à l’échéance si le niveau de clôture de l’Actif de Référence le moins performant au 29 juillet 2026 (date d’évaluation) est ≥ 85 % de son niveau initial du 27 juin 2025 (« Barrière numérique »).
Buffer : les 15 % de baisse initiaux sont absorbés. Si l’Actif de Référence le moins performant chute de plus de 15 %, le principal est réduit point par point au-delà du buffer, exposant les investisseurs à une perte maximale de 85 %.
Pas de coupons périodiques ; paiement unique à l’échéance.
Prix d’émission : 100 % ; commission de l’agent 0,375 % ; valeur initiale estimée : 981,99 $ pour 1 000 $, reflétant les frais intégrés et les coûts de couverture.
Exposition au crédit : obligations non garanties et non subordonnées de BMO ; CUSIP 06376EMN9 ; non assurées par la FDIC ou la CDIC ; non cotées en bourse.

Wichtige wirtschaftliche Bedingungen:

Digitaler Ertrag: 10,40% zahlbar bei Fälligkeit, wenn der Schlusskurs des am schlechtesten performenden Referenzwerts am 29. Juli 2026 (Bewertungsdatum) ≥ 85 % seines Anfangswerts vom 27. Juni 2025 („Digitaler Schwellenwert“) liegt.
Buffer: Die ersten 15% eines Kursrückgangs werden absorbiert. Fällt der am schlechtesten performende Referenzwert um mehr als 15 %, wird der Kapitalbetrag Punkt für Punkt über den Buffer hinaus reduziert, wodurch Anleger einem maximalen Verlust von 85 % ausgesetzt sind.
Keine periodischen Kupons; Einmalzahlung bei Fälligkeit.
Ausgabepreis: 100 %; Agenturprovision 0,375 %; geschätzter Anfangswert: 981,99 $ pro 1.000 $, was eingebaute Gebühren und Absicherungskosten widerspiegelt.
Kreditrisiko: unbesicherte, nicht nachrangige Verbindlichkeiten von BMO; CUSIP 06376EMN9; nicht FDIC- oder CDIC-versichert; nicht börsennotiert.

07/01/2025 - 04:30 PM

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): July 1, 2025

Franklin BSP Realty Trust, Inc.

(Exact Name of Registrant as Specified in Its Charter)

Maryland	001-40923	46-1406086
(State or other jurisdiction	(Commission File Number)	(I.R.S. Employer
of incorporation)		Identification No.)

1 Madison Ave., Suite 1600

New York, New York 10010

(Address of principal executive offices, including zip code)

Registrant’s telephone number, including area code: (212) 588-6770

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	FBRT	New York Stock Exchange
7.50% Series E Cumulative Redeemable Preferred Stock, par value $0.01 per share	FBRT PRE	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.01.

Completion of Acquisition or Disposition of Assets.

On July 1, 2025 (the “Closing Date”), FBRT OP LLC (“Purchaser OP”), a consolidated subsidiary of Franklin BSP Realty Trust, Inc. (the “Company”), and FBRT Sub REIT TRS LLC, also a consolidated subsidiary of the Company (together with Purchaser OP, “Purchaser”), completed the previously announced purchase of all of the issued and outstanding membership interests and units (the “Purchased Interests”) of NewPoint Holdings JV LLC (“NewPoint”) held by each of the holders (the “Existing Equityholders”) of the membership interests and units of NewPoint. The purchase was effected pursuant to the Purchase and Sale Agreement (the “Agreement”), by and among the Company, Purchaser, NewPoint, the Existing Equityholders, and, solely in their capacity as the joint representatives of the Existing Equityholders, Meridian Bravo Investment Company, LLC and BMC Holdings DE LLC, as previously disclosed by the Company.

Under the terms and subject to the conditions set forth in the Agreement, following satisfaction of all of the closing conditions, Purchaser purchased all of NewPoint’s Purchased Interests. In exchange for the Purchased Interests, (i) Purchaser paid to the Existing Equityholders an aggregate amount of $318,750,000 in cash, as such amount was adjusted (and remains subject to further post-closing adjustment) in accordance with the purchase price adjustment mechanism set forth in the Agreement, and (ii) Purchaser OP issued to the Existing Equityholders (or their designees) an aggregate of 8,385,951 Class A Units of Purchaser OP.

The foregoing description of the Agreement and the transactions contemplated thereby does not purport to be complete and is qualified in its entirety by reference to the Agreement, a copy of which is filed as Exhibit 2.1 to the Current Report on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) by the Company on March 10, 2025 and is incorporated by reference herein.

Item 3.02.

Unregistered Sales of Equity Securities.

As described above, pursuant to the terms of the Agreement, on the Closing Date, Purchaser OP issued to the Existing Equityholders (or their designees) an aggregate of 8,385,951 Class A Units of Purchaser OP. The offer and sale of such Class A Units was made in reliance on the exemption from registration provided under Section 4(a)(2) of the Securities Act of 1933. Pursuant to the terms of the operating agreement of Purchaser OP, after 12 months from issuance, holders of the Class A Units may elect to have the Class A Units redeemed, in which case the Company and Purchaser OP will have the option to satisfy the redemption consideration with either cash (based on the trading price of the Company’s Common Stock) or the delivery of one share of the Company’s Common Stock for each Class A Unit of Purchaser OP.

Item 7.01.

Regulation FD Disclosure.

On July 1, 2025, the Company issued a press release announcing the acquisition of NewPoint. The full text of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

The information contained in Item 7.01 of this report, including Exhibit 99.1, shall not be incorporated by reference into any filing of the registrant, whether made before, on or after the date hereof, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference to such filing. The information contained in Item 7.01 of this report, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.

Item 9.01.

Financial Statements and Exhibits.

(a)

Financial statements of business acquired.

The financial statements required by Item 9.01(a) of Form 8-K will be filed by amendment to this Current Report on Form 8-K no later than 71 days after the date this report on Form 8-K must be filed.

(b)

Pro forma financial information.

The pro forma financial statements required by Item 9.01(b) of Form 8-K will be filed by amendment to this Current Report on Form 8-K no later than 71 days after the date this report on Form 8-K must be filed.

(d)

Exhibits.

EXHIBIT INDEX

Exhibit
No.		Description
2.1*		Purchase and Sale Agreement, dated as of March 9, 2025, by and among NewPoint Holdings JV LLC, each of the members of NewPoint Holdings JV LLC, FBRT OP LLC, FBRT Sub REIT TRS LLC, Franklin BSP Realty Trust, Inc., and certain other parties named therein, incorporated by reference to Exhibit 2.1 to the Current Report on Form 8-K filed by Franklin BSP Realty Trust, Inc. on March 10, 2025.
99.1		Press Release issued by Franklin BSP Realty Trust, Inc. on July 1, 2025.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

* Schedules and exhibits have been omitted pursuant to Item 601(b)(2) of Regulation S-K. A copy of any omitted schedule or exhibit will be furnished supplementally to the SEC upon request.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	FRANKLIN BSP REALTY TRUST, INC.

	By:	/s/ Jerome S. Baglien
	Name:	Jerome S. Baglien
	Title:	Chief Financial Officer and Chief Operating Officer

Date: July 1, 2025

Source: View Original Filing on SEC EDGAR

FAQ

What return do the BMO Digital Return Buffer Notes provide at maturity?

Investors receive $1,104 per $1,000 note (a 10.40% gain) if the worst of the S&P 500, NASDAQ-100 or Russell 2000 ends at or above 85% of its initial level.

How much principal protection do the notes offer?

The notes include a 15% buffer; losses begin only if the worst index is more than 15% below its initial level, after which loss is 1-for-1 down to an 85% maximum loss.

When do the notes mature and what are the key dates?

Pricing Date: 27 Jun 2025; Settlement Date: 2 Jul 2025; Valuation Date: 29 Jul 2026; Maturity Date: 3 Aug 2026.

Are the notes listed or tradable on an exchange?

No. The notes will not be listed; any resale depends on dealer quotes from BMOCM, which may be limited and at a discount.

What is the estimated initial value versus the issue price?

BMO estimates the initial value at $981.99 per $1,000 note, below the $1,000 price, reflecting commissions and hedging costs.

What are the U.S. federal tax considerations?

BMO intends to treat the notes as pre-paid derivative contracts; however, the IRS could assert a different treatment. Investors should consult tax advisors.

[8-K] Franklin BSP Realty Trust, Inc. Reports Material Event

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What return do the BMO Digital Return Buffer Notes provide at maturity?

How much principal protection do the notes offer?

When do the notes mature and what are the key dates?

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What is the estimated initial value versus the issue price?

What are the U.S. federal tax considerations?

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[8-K] Franklin BSP Realty Trust, Inc. Reports Material Event

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FAQ

What return do the BMO Digital Return Buffer Notes provide at maturity?

How much principal protection do the notes offer?

When do the notes mature and what are the key dates?

Are the notes listed or tradable on an exchange?

What is the estimated initial value versus the issue price?

What are the U.S. federal tax considerations?

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