Franklin BSP Realty (NYSE: FBRT) Q2 2026 earnings and dividend detail

Rhea-AI Filing Summary

Franklin BSP Realty Trust reported second-quarter 2026 GAAP net income of $16.3 million, or $0.12 per diluted common share and $0.13 per fully converted share. Distributable Earnings were $28.3 million, or $0.25 per fully converted share, and Distributable Earnings before realized losses were $30.2 million, or $0.28 per share. The company declared a $0.20 per share common dividend, which it states equates to a 5.6% yield on fully converted book value and 10.2% on its recent trading price. Fully converted book value per share was $14.24, or $14.74 on an adjusted basis, and repurchases of 1,838,855 shares for $16.0 million added $0.11 of accretion.

The core loan portfolio totaled $4.3 billion across 172 loans averaging $25.3 million, with 80% collateralized by multifamily properties and an average risk rating of 2.4; 12 loans were on the watch list. The Agency Business managed a $59.8 billion servicing portfolio and held mortgage servicing rights valued at $205.5 million. Total liquidity was $796.7 million, including $136.3 million of cash and cash equivalents, and net debt to equity was 2.6x, with 79% of core portfolio financing from non-mark-to-market sources. During the quarter the company closed an $880.4 million CRE CLO financing $778.1 million of assets, and subsequent to quarter end 7,918,314 OP Units were redeemed for the same number of common shares.

Filing Explained

As of June 30, the company had $136.3 million cash within $796.7 million liquidity, while $50 million repurchase capacity remained authorized through December 31.

This July 29 Form 8-K updates the completed quarter ended June 30, 2026 with a new authorization: the board made $50.0 million available for common-stock repurchases through December 31, 2026. That is future capacity, not a stated commitment to spend the full amount.

Form 8-K reports specified material events; here, the completed second-quarter results are accompanied by a reauthorized repurchase program. The company had already repurchased $16.0 million during the quarter, but the new authorization does not establish additional completed repurchases or a resulting change in shares outstanding.

The disclosed $796.7 million of liquidity is broader than cash: it includes $136.3 million of cash and cash equivalents and $78 million of CLO reinvestment availability. At quarter end, 12 loans were on the watch list, including 7 rated 4 and 5 rated 5; the company also reported 9 non-performing loans and a $5.2 million core-portfolio provision.

The company reported 6 foreclosure real-estate-owned positions totaling $198.7 million and one investment real-estate-owned position of $115.2 million. The next specific checkpoint for the repurchase capacity is December 31, 2026, when the stated authorization ends; subsequent filings would establish how much, if any, is used.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Key Figures

GAAP net income: $16.3 million Distributable Earnings: $28.3 million Distributable EPS, fully converted: $0.25 per share +5 more

8 metrics

GAAP net income $16.3 million Three months ended June 30, 2026

Distributable Earnings $28.3 million Three months ended June 30, 2026

Distributable EPS, fully converted $0.25 per share Three months ended June 30, 2026

Quarterly dividend per share $0.20 Second quarter 2026 common stock cash dividend

Book value per share, fully converted $14.24 As of June 30, 2026

Core loan portfolio principal $4.3 billion Principal balance across 172 core loans at June 30, 2026

Total liquidity $796.7 million Company-reported liquidity including cash and financing capacity

Net debt to equity 2.60x As presented in Q2 2026 financial highlights

Key Terms

Distributable Earnings, Commercial Real Estate Collateralized Loan Obligation, Mortgage Servicing Rights, Variable interest entity, +1 more

5 terms

Distributable Earnings financial

"Distributable Earnings is a non-GAAP measure, which the Company defines as GAAP net income (loss), adjusted"

Distributable earnings are the portion of a company’s reported profits that management determines is safe to pay out to shareholders after accounting for cash needs, required reserves, and non-cash bookkeeping items. Think of it like the money left in your household budget after paying bills and putting aside savings — it shows what can realistically be handed out as dividends or distributions and helps investors judge how sustainable and reliable future payouts may be.

Commercial Real Estate Collateralized Loan Obligation financial

"an $880.4 million managed Commercial Real Estate Collateralized Loan Obligation with a 30 month reinvestment period"

A commercial real estate collateralized loan obligation is a financial product that pools many loans made to office buildings, shopping centers, apartments and other commercial properties, then sells pieces of that pool to investors with different levels of risk and return — think of a large bundle of mortgages cut into slices. It matters to investors because it offers a way to gain exposure to commercial property income while spreading risk across many loans; however, its value depends on how well the underlying properties perform and whether borrowers keep paying, so downturns in property markets, rising vacancies or higher interest rates can reduce payments and hit the riskiest slices first.

Mortgage Servicing Rights financial

"Mortgage Servicing Rights (MSRs) valued at $205.5 million in the Agency Business segment"

Mortgage servicing rights are the contractual right to collect mortgage payments, manage escrow accounts, handle customer service and delinquency actions on a pool of home loans, in exchange for a portion of the loan’s payments. They matter to investors because their value behaves like a revenue stream that can rise or fall with interest rates and borrower behavior — similar to owning a toll bridge where income depends on traffic volume and maintenance costs — and thus affect a lender’s earnings and risk profile.

Variable interest entity financial

"Variable interest entity (VIE) assets, measured at fair value, totaled $544.0 million"

A variable interest entity (VIE) is a company structure where one party controls another company’s operations and economic outcomes through contracts or special arrangements instead of owning a majority of its voting shares. For investors, VIEs matter because the controlling party’s financial results, debts and risks can appear in the controller’s reports even though ownership looks separate, so understanding VIEs helps assess true exposure, governance limits and transparency—like spotting a puppet controlled by strings rather than direct ownership.

CECL reserves financial

"we exclude unrealized gains and losses on loans and other investments, including CECL reserves and impairments"

CECL reserves are the funds a lender sets aside under the Current Expected Credit Loss accounting rule to cover losses it expects to incur on loans and other credit exposures over their lifetime. They matter to investors because larger reserves reduce reported profits and available capital today—like a household putting extra money in a savings jar for likely future repairs—so changes in CECL reserves signal shifts in a lender’s expected credit risk and financial strength.

Earnings Snapshot

GAAP net income: $16.3 million

Quarter ended June 30, 2026

GAAP net income $16.3 million Prior-year quarter GAAP net income was $24.4 million

GAAP diluted EPS $0.12 Prior-year quarter diluted EPS was $0.19

Distributable Earnings $28.3 million Prior-year quarter Distributable Earnings were $29.0 million

Distributable EPS, fully converted $0.25 Prior-year quarter Distributable EPS, fully converted, was $0.27

Common dividend per share $0.20 First quarter 2026 common dividend per share was $0.200

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FAQ

What were Franklin BSP Realty Trust (FBRT)’s key earnings results for Q2 2026?

FBRT reported GAAP net income of $16.3 million for Q2 2026, or $0.12 per diluted share and $0.13 per fully converted share. Distributable Earnings were $28.3 million, equal to $0.25 per fully converted share, with $30.2 million before realized losses.

How did Franklin BSP Realty Trust (FBRT) cover its dividend in Q2 2026?

FBRT declared a $0.20 per share common dividend for Q2 2026. Distributable Earnings per fully converted share were $0.25, and the company reports distributable dividend coverage of 127.4% and coverage before realized losses of 137.7% for the quarter.

What was Franklin BSP Realty Trust (FBRT)’s book value per share at June 30, 2026?

As of June 30, 2026, FBRT’s fully converted book value per share was $14.24. Adjusted fully converted book value per share, incorporating depreciation and mortgage servicing rights adjustments, was $14.74. Share repurchases of 1,838,855 shares added $0.11 of book value accretion.

How large is Franklin BSP Realty Trust (FBRT)’s core loan portfolio and what is its composition?

FBRT’s core portfolio had a $4.3 billion principal balance across 172 loans at June 30, 2026. Loans averaged $25.3 million and 80% were collateralized by multifamily properties. The average portfolio risk rating was 2.4, with 12 loans on the watch list.

What liquidity and leverage levels did Franklin BSP Realty Trust (FBRT) report for Q2 2026?

FBRT reported total liquidity of $796.7 million, including $136.3 million of cash and cash equivalents. Net debt to equity was 2.6x, recourse net debt to equity was 0.70x, and the company states 79% of core portfolio financing is non-mark-to-market.

What activity did Franklin BSP Realty Trust (FBRT) report in its Agency Business and MSRs for Q2 2026?

In Q2 2026, FBRT’s Agency Business originated $398.8 million of new loan commitments and managed a $59.8 billion servicing portfolio. Mortgage Servicing Rights were valued at $205.5 million, with MSR-related income and amortization detailed in the earnings tables.

What notable capital markets transaction did Franklin BSP Realty Trust (FBRT) complete in Q2 2026?

FBRT closed BSPRT 2026-FL13, an $880.4 million managed CRE CLO that provided $778.1 million of financing. The transaction has a 30-month reinvestment period, an 88.4% advance rate and a weighted average rate of 1M Term SOFR plus 176 basis points.

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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 29, 2026

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,

New York, New York 10010

(Address of principal executive offices, including zip code)

(Former name, former address and former fiscal year, if changed since last report)

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):

o			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o			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 2.02. Results of Operations and Financial Condition.

On July 29, 2026, Franklin BSP Realty Trust, Inc. (the “Company”) issued a press release and supplemental slide presentation reporting the Company’s financial results for the quarter ended June 30, 2026. Copies of the press release and supplemental slide presentation are attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively, and are incorporated herein by reference.

The information in this Item 2.02 (including Exhibits 99.1 and 99.2) shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

						EXHIBIT INDEX
Exhibit No.						Description
99.1						Press Release dated July 29, 2026 announcing the Company’s financial results for the quarter ended June 30, 2026
99.2						Supplemental Presentation for the quarter ended June 30, 2026
104.1						Cover Page Interactive Data File (embedded within the Inline XBRL document)

2

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 29, 2026

3

Investor Relations contact			Lindsey Crabbe			FOR IMMEDIATE RELEASE
			l.crabbe@bspcredit.com
Media contact			Sam Turvey
			s.turvey@bspcredit.com

Franklin BSP Realty Trust, Inc. Announces Second Quarter 2026 Results

New York City, NY – July 29, 2026 – Franklin BSP Realty Trust, Inc. (NYSE: FBRT) (“FBRT” or the “Company”) today announced financial results for the quarter ended June 30, 2026.

During the second quarter, FBRT increased GAAP book value per share, generated distributable earnings that exceeded its quarterly dividend, continued repurchasing common stock and made further progress resolving legacy assets.

Second Quarter 2026 Summary

•GAAP net income of $16.3 million or $0.12 per diluted common share

•Distributable Earnings (a non-GAAP financial measure) of $28.3 million, or $0.25 per diluted common share on a fully converted basis(1)

•Distributable Earnings before realized losses (a non-GAAP financial measure) of $30.2 million, or $0.28 per diluted common share on a fully converted basis(1)

•Repurchased 1,838,855 shares of common stock at an average price of $8.70 per share for an aggregate of $16.0 million, which provided an $0.11 increase in book value per diluted common share on a fully converted basis(1)

•Book value of $14.24 per diluted common share on a fully converted basis(1), an increase of $0.06 from the prior quarter

•Adjusted(2) fully converted(1) book value per share of $14.74, an increase of $0.16 from the prior quarter

•Core portfolio:

◦Principal balance totaled $4.3 billion across 172 loans, averaging $25.3 million each, with 80% collateralized by multifamily properties

◦Closed $166.7 million of new loan commitments at a weighted average spread of 238 basis points

◦Funded $248.4 million of principal balance including future funding on existing loans and received loan repayments of $457.7 million

◦Average portfolio risk rating improved to 2.4 from 2.5 in the prior quarter

•Agency Business segment:

◦Servicing portfolio grew by $1.7 billion to $59.8 billion(3)

◦Originated $398.8 million of new loan commitments under programs with Fannie Mae, Freddie Mac, and HUD

◦Mortgage Servicing Rights ("MSRs") valued at $205.5 million

•Declared a second quarter common stock cash dividend of $0.20, representing an annualized 5.6% yield on book value, or 10.2% yield on current trading price(4)

•Total liquidity of $796.7 million, which includes $136.3 million in cash and cash equivalents

•Closed BSPRT 2026-FL13 ("FL13 CRE CLO"), an $880.4 million managed Commercial Real Estate Collateralized Loan Obligation ("CLO"), resulting in financing of $778.1 million, with a 30 month re-investment period, an advance rate of 88.4% and a weighted average interest rate of 1M Term SOFR+176 before accounting for discount and transaction costs

1 Fully Converted assumes conversion of our series of convertible preferred stock and OP Units along with full vesting of our outstanding equity compensation awards.

2 Excludes the impact of accumulated depreciation and amortization of real property and includes the impact of the fair value of our MSRs over their carrying value, resulting in a total adjustment of $45.7 million.

3 Includes $4.6 billion of principal serviced for a wholly owned subsidiary of the Company; related revenue is eliminated in consolidation.

4 Current trading price as of July 27, 2026.

•On July 28, 2026, the Board of Directors reauthorized the Company’s share repurchase program, making $50.0 million available for repurchases through December 31, 2026

Portfolio and Investment Activity

Core portfolio: For the quarter ended June 30, 2026, the Company closed $166.7 million of new loan commitments, funded $248.4 million of principal balance on new and existing loans, and received loan repayments of $457.7 million. FBRT's average portfolio risk rating improved to 2.4 from 2.5 in the prior quarter. At quarter end, the Company had 12 loans on its watch list, seven of which are risk rated a four and five of which are risk rated a five.

Conduit: For the quarter ended June 30, 2026, the Company originated $78.3 million of fixed rate conduit loans and sold $249.5 million of conduit loans for a gain of $6.0 million, gross of related derivatives.

Agency Business segment: For the quarter ended June 30, 2026, the Company originated $398.8 million of new commitments under programs with Fannie Mae, Freddie Mac, and HUD and managed a servicing portfolio of $59.8 billion.

Real estate owned and equity method investments: For the quarter ended June 30, 2026, the Company had six foreclosure real estate owned positions totaling $198.7 million, one investment real estate owned position of $115.2 million, and five equity method investment positions of $89.2 million.

Allowance for credit losses: During the quarter, the Company recognized a net provision for credit losses of $7.2 million. Provision for our core portfolio was $5.2 million, comprised of a specific allowance provision of $1.5 million and a general provision of $3.7 million. Provision for our Agency Business was $2.0 million, comprised of a general provision of $2.1 million, partially offset by a benefit in the specific allowance of $0.1 million.

Book Value

As of June 30, 2026, book value was $14.24 per diluted common share on a fully converted basis(1).

Share Repurchase Program

During the quarter ended June 30, 2026, the Company repurchased 1,838,855 shares of common stock at an average price of $8.70 per share for an aggregate of $16.0 million, which represents an $0.11 per share increase to book value.

Subsequent to quarter end, the Board of Directors reauthorized the Company's share repurchase program, again providing $50.0 million available for future share repurchases through December 31, 2026.

Subsequent Events

Subsequent to quarter end, holders of OP Units in our operating partnership redeemed 7,918,314 OP Units for an equal number of shares of the Company’s common stock.

Distributable Earnings and Distributable Earnings to Common

Distributable Earnings is a non-GAAP measure, which the Company defines as GAAP net income (loss), adjusted for (i) non-cash CLO amortization acceleration and amortization over the expected useful life of the Company's CLOs, (ii) unrealized gains and losses on loans and derivatives, including CECL reserves and impairments, net of realized gains and losses, as described further below, (iii) non-cash equity compensation expense, (iv) depreciation and amortization, (v) subordinated performance fee accruals/(reversal), (vi) realized gains and losses on debt extinguishment and CLO calls, (vii) non-cash income from mortgage servicing rights, and (viii) certain other non-cash items. Distributable Earnings before realized losses, a non-GAAP measure, presents Distributable Earnings gross of realized gain (loss) on debt extinguishment and realized gain (loss) on loans and real estate owned. Further, Distributable Earnings to Common, a non-GAAP measure, presents Distributable Earnings net of (x) perpetual preferred stock dividend payments and (y) non-controlling interests in joint ventures.

1 Fully Converted assumes conversion of our series of convertible preferred stock and OP Units along with full vesting of our outstanding equity compensation awards.

As noted above, we exclude unrealized gains and losses on loans and other investments, including CECL reserves and impairments, from our calculation of Distributable Earnings and include realized gains and losses. The nature of these adjustments is described more fully in the footnotes to our reconciliation tables. GAAP loan loss reserves and any property impairment losses have been excluded from Distributable Earnings consistent with other unrealized losses pursuant to our existing definition of Distributable Earnings. We expect to only recognize such potential credit or property impairment losses in Distributable Earnings if and when such amounts are deemed nonrecoverable upon a realization event. This is generally at the time a loan is repaid, or in the case of a foreclosure or other property, when the underlying asset is sold. Amounts may also be deemed non-recoverable if, in our determination, it is nearly certain the carrying amounts will not be collected or realized. The realized loss amount reflected in Distributable Earnings will generally equal the difference between the cash received and the Distributable Earnings basis of the asset. The timing of any such loss realization in our Distributable Earnings may differ materially from the timing of the corresponding loss reserves, charge-offs or impairments in our consolidated financial statements prepared in accordance with GAAP.

The Company believes that Distributable Earnings, Distributable Earnings before realized losses and Distributable Earnings to Common provide meaningful information to consider in addition to the disclosed GAAP results. The Company believes Distributable Earnings, Distributable Earnings before realized losses and Distributable Earnings to Common are useful financial metrics for existing and potential future holders of its common stock as historically, over time, Distributable Earnings to Common has been an indicator of common dividends per share. As a REIT, the Company generally must distribute annually at least 90% of its taxable income, subject to certain adjustments, and therefore believes dividends are one of the principal reasons stockholders may invest in its common stock. Further, Distributable Earnings to Common helps investors evaluate performance excluding the effects of certain transactions and GAAP adjustments that the Company does not believe are necessarily indicative of current loan portfolio performance and the Company's operations and is one of the performance metrics the Company's board of directors considers when dividends are declared.

Distributable Earnings, Distributable Earnings before realized losses and Distributable Earnings to Common do not represent net income (loss) and should not be considered as an alternative to GAAP net income (loss). The methodology for calculating Distributable Earnings, Distributable Earnings before realized losses and Distributable Earnings to Common may differ from the methodologies employed by other companies and thus may not be comparable to the Distributable Earnings reported by other companies.

Please refer to the financial statements and reconciliation of GAAP Net Income to Distributable Earnings, Distributable Earnings before Realized Losses and Distributable Earnings to Common included at the end of this release for further information.

Supplemental Information

The Company published a supplemental earnings presentation for the quarter ended June 30, 2026 on its website to provide additional disclosure and financial information. These materials can be found on the Company’s website at https://www.fbrtreit.com under the Presentations tab.

Conference Call and Webcast

The Company will host a conference call and live audio webcast to discuss its financial results on Thursday, July 30, 2026 at 9:00 a.m. ET. Participants are encouraged to pre-register for the call and webcast at https://dpregister.com/sreg/10210247/10460f4a8af. If you are unable to pre-register, the conference call may be accessed by dialing (844) 701-1166 (Domestic) or (412) 317-5795 (International). Ask to join the Franklin BSP Realty Trust conference call. Participants should call in at least five minutes prior to the start of the call.

The call will also be accessible via live webcast at https://ccmediaframe.com/?id=QqEK5fFK. Please allow extra time prior to the call to download and install audio software, if needed. A slide presentation containing supplemental information may also be accessed through the Company’s website in advance of the call.

An audio replay of the live broadcast will be available approximately one hour after the end of the conference call on FBRT’s website. The replay will be available for 90 days on the Company’s website.

About Franklin BSP Realty Trust, Inc.

Franklin BSP Realty Trust, Inc. (NYSE: FBRT) is a real estate investment trust that originates, acquires and manages a diversified portfolio of commercial real estate debt secured by properties located in the United States. As of June 30, 2026, FBRT had approximately $6.4 billion of assets. FBRT is externally managed by Benefit Street Partners L.L.C., a wholly owned subsidiary of Franklin Resources, Inc. For further information, please visit www.fbrtreit.com.

About Benefit Street Partners

Benefit Street Partners is an alternative credit pioneer with $93 billion in assets under management as of March 31, 2026 (including Apera). It seeks to deliver attractive, risk-adjusted returns through its deep specialism, long-term relationships and global reach. A wholly owned subsidiary of Franklin Templeton, BSP is focused on credit. Through its disciplined, solutions-oriented approach, BSP unlocks opportunities across market cycles and geographies. The firm manages strategies spanning private debt, real estate debt, structured credit, and liquid loans. For more information, visit bspcredit.com.

About Franklin Templeton

Franklin Templeton is a trusted investment partner, delivering tailored solutions that align with clients’ strategic goals. With deep portfolio management expertise across public and private markets, we combine investment excellence with cutting-edge technology. Since our founding in 1947, we have empowered clients through strategic partnership, forward-looking insights, and continuous innovation – providing the tools and resources to navigate change and capture opportunity.

With more than $1.79 trillion in assets under management as of June 30, 2026, Franklin Templeton operates globally in more than 35 countries.

To learn more, visit franklintempleton.com and follow us on LinkedIn.

Forward-Looking Statements

Certain statements included in this press release are forward-looking statements. Those statements include statements regarding the intent, belief or current expectations of the Company and members of our management team, as well as the assumptions on which such statements are based, and generally are identified by the use of words such as "may," "will," "seeks," "anticipates," "believes," "estimates," "expects," "plans," "intends," "should" or similar expressions. Actual results may differ materially from those contemplated by such forward-looking statements. Further, forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law.

The Company's forward-looking statements are subject to various risks and uncertainties. Factors that could cause actual outcomes to differ materially from our forward-looking statements include macroeconomic factors in the United States including inflation, changing interest rates and economic contraction, the extent of any recoveries on delinquent loans, the financial stability of our borrowers and the other, risks and important factors contained and identified in the Company’s filings with the Securities and Exchange Commission (“SEC”), including its Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and its subsequent filings with the SEC, any of which could

cause actual results to differ materially from the forward-looking statements. The forward-looking statements included in this communication are made only as of the date hereof.

FRANKLIN BSP REALTY TRUST, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

			June 30, 2026						December 31, 2025
ASSETS
Cash and cash equivalents			$	136,347					$	167,292
Restricted cash			18,664						17,889
Investment securities, held to maturity(1)			23,356						20,483
Commercial mortgage loans, held for investment, net of allowance for credit losses of $54,457 and $38,302 as of June 30, 2026 and December 31, 2025, respectively(2)			4,275,122						4,383,134
Commercial mortgage loans, held for sale, measured at fair value(3)			251,842						360,718
Real estate securities, available for sale, measured at fair value, amortized cost of $187,905 and $151,946 as of June 30, 2026 and December 31, 2025, respectively(4)			187,247						151,662
Mortgage servicing rights, net			205,549						212,216
Accrued interest receivable			33,665						41,468
Receivable for loan repayment(5)			80,337						50,619
Prepaid expenses and other assets			37,233						45,112
Real estate owned, net of depreciation			164,593						99,265
Real estate owned, held for sale			115,738						198,883
Equity method investments			89,186						71,682
Intangible assets, net of amortization			111,866						115,553
Goodwill			92,048						92,048
Derivative instruments, measured at fair value			12,155						11,315
Loans eligible for repurchase			4,881						17,911
Variable interest entity (“VIE”) assets, measured at fair value			544,017						—
Total assets			$	6,383,846					$	6,057,250
LIABILITIES AND STOCKHOLDERS' EQUITY
Collateralized loan obligations			$	2,943,642					$	2,735,582
Repurchase agreements and revolving credit facilities - commercial mortgage loans			802,380						1,087,087
Repurchase agreements - real estate securities			196,538						187,371
Other financings			12,865						12,865
Unsecured debt			185,923						185,466
Mortgage note payable			24,186						23,998
Allowance for loss sharing			19,409						19,484
Accrued compensation			32,878						43,662
Liability for loans eligible for repurchase			4,881						17,911
Interest payable			13,460						16,110
Distributions payable			22,945						38,935
Accounts payable and accrued expenses			15,266						18,892
Due to affiliates			11,322						12,054
Derivative instruments, measured at fair value			7,477						6,951
Other liabilities			25,022						29,657
VIE liabilities, measured at fair value			516,419						—
Total liabilities			$	4,834,613					$	4,436,025
Commitments and Contingencies
Redeemable convertible preferred stock:
Redeemable convertible preferred stock Series H, $0.01 par value, 20,000 authorized and 17,950 issued and outstanding as of June 30, 2026 and December 31, 2025			$	89,748					$	89,748
Total redeemable convertible preferred stock			$	89,748					$	89,748
Equity:
Preferred stock, $0.01 par value; 100,000,000 shares authorized, 7.5% Cumulative Redeemable Preferred Stock, Series E, 10,329,039 shares issued and outstanding as of June 30, 2026 and December 31, 2025			$	258,742					$	258,742
Common stock, $0.01 par value, 900,000,000 shares authorized, 75,436,265 and 81,553,982 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively			750						808
Additional paid-in capital			1,540,232						1,593,365
Accumulated other comprehensive income/(loss)			(658)						(284)
Accumulated deficit			(426,442)						(411,101)
Total stockholders' equity			$	1,372,624					$	1,441,530
Non-controlling interest			86,861						89,947
Total equity			$	1,459,485					$	1,531,477
Total liabilities, redeemable convertible preferred stock and equity			$	6,383,846					$	6,057,250

____________________

(1) Includes pledged assets of $23.1 million and $20.2 million as of June 30, 2026 and December 31, 2025, respectively.

(2) Includes pledged assets of $818.5 million and $855.2 million as of June 30, 2026 and December 31, 2025, respectively.

(3) Includes pledged assets of $243.4 million and $329.2 million as of June 30, 2026 and December 31, 2025, respectively.

(4) Includes pledged assets of $187.2 million and $151.7 million as of June 30, 2026 and December 31, 2025, respectively.

(5) Includes $80.2 million and $50.5 million of cash held by servicer related to the CLOs as of June 30, 2026 and December 31, 2025, respectively.

The accompanying notes are an integral part of these unaudited consolidated financial statements.

FRANKLIN BSP REALTY TRUST, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share and per share data)

			Three Months Ended June 30,												Six Months Ended June 30,
			2026						2025						2026						2025
Income
Interest income			$	97,187					$	111,171					$	189,436					$	225,079
Less: Interest expense			67,261						70,213						132,491						140,806
Net interest income			29,926						40,958						56,945						84,273
Gain/(loss) on sales, including fee-based services, net			15,775						264						37,105						5,303
Mortgage servicing rights			3,917						—						10,659						—
Servicing revenue, net			9,658						—						20,208						—
Gain/(loss) on derivatives			480						(217)						2,334						(335)
Revenue from real estate owned			5,538						8,336						12,420						15,133
Total income			$	65,294					$	49,341					$	139,671					$	104,374
Expenses
Compensation and benefits			$	20,969					$	—					$	43,793					$	—
Asset management and subordinated performance fee			5,969						5,537						12,023						12,092
Acquisition expenses			415						175						586						474
Administrative services expenses			2,028						3,884						4,362						7,232
Professional fees			7,241						4,698						16,526						11,274
Other expenses			12,030						11,569						23,235						21,505
Depreciation and amortization			1,983						1,381						5,403						2,761
Share-based compensation			2,457						2,316						4,860						4,562
Total expenses			$	53,092					$	29,560					$	110,788					$	59,900
Other income/(loss)
(Provision)/benefit for credit losses			$	(7,235)					$	1,487					$	(18,626)					$	3,385
Realized gain/(loss) on real estate securities, available for sale			—						113						—						113
Realized gain/(loss) on extinguishment of debt			(933)						—						(933)						—
Gain/(loss) on other real estate investments			7,705						2,684						3,229						452
Income/(loss) from equity method investments			1,345						181						13,752						181
Change in net assets of consolidated VIE, CMBS trust			296						—						296						—
Total other income/(loss)			$	1,178					$	4,465					$	(2,282)					$	4,131
Income/(loss) before taxes			13,380						24,246						26,601						48,605
(Provision)/benefit for income tax			2,895						138						1,966						(516)
Net income/(loss)			$	16,275					$	24,384					$	28,567					$	48,089
Net (income)/loss attributable to non-controlling interest			(706)						(1,183)						(1,018)						(830)
Net income/(loss) attributable to Franklin BSP Realty Trust, Inc.			$	15,569					$	23,201					$	27,549					$	47,259
Less: Preferred stock dividends			5,916						6,748						11,832						13,496
Net income/(loss) applicable to common stock			$	9,653					$	16,453					$	15,717					$	33,763
Basic earnings per share			$	0.12					$	0.19					$	0.19					$	0.40
Diluted earnings per share			$	0.12					$	0.19					$	0.19					$	0.40
Basic weighted average shares outstanding			76,367,888						82,181,403						78,137,174						82,117,897
Diluted weighted average shares outstanding			84,753,839						82,181,403						86,523,125						82,117,897

FRANKLIN BSP REALTY TRUST, INC.

RECONCILIATION OF GAAP NET INCOME TO DISTRIBUTABLE EARNINGS

(In thousands, except share and per share data)

(Unaudited)

The following table provides a reconciliation of GAAP net income to Distributable Earnings, Distributable Earnings before Realized Losses and Distributable Earnings to Common for the three and six months ended June 30, 2026 and 2025 (amounts in thousands, except share and per share data):

			Three Months Ended June 30,												Six Months Ended June 30,
			2026						2025						2026						2025
GAAP Net Income (Loss)			$	16,275					$	24,384					$	28,567					$	48,089
Adjustments:
Unrealized (gain)/loss on financial instruments(1)			(6,473)						(2,531)						(3,283)						757
Subordinated performance fee(2)			—						(791)						—						(540)
Non-cash compensation expense			3,435						2,316						6,496						4,562
Depreciation and amortization, net			1,939						1,381						5,313						2,761
Transaction-related and non-recurring items(3)			—						1,847						—						4,821
(Reversal of)/provision for credit losses			7,235						(1,487)						18,626						(3,385)
(Gain) / loss on debt extinguishment reversal			933						—						933						—
Income from mortgage servicing rights			(3,917)						—						(10,659)						—
Amortization and write-offs of MSRs			11,268						—						20,269						—
Deferred tax adjustment			(296)						—						392						—
Fair value adjustments on equity investments(4)			(202)						—						(10,607)						—
Distributable Earnings before realized gain/(loss)			$	30,197					$	25,119					$	56,047					$	57,065
Realized gain / (loss) on debt extinguishment			(933)						—						(933)						—
Realized gain/(loss) adjustment on loans and REO(5)			(962)						3,886						(13,269)						(34,294)
Distributable Earnings			$	28,302					$	29,005					$	41,845					$	22,771
7.5% series E cumulative redeemable preferred stock dividend			(4,842)						(4,842)						(9,684)						(9,684)
Noncontrolling interests net (income) / loss			(706)						(1,183)						(1,018)						(830)
Noncontrolling interests net (income) / loss DE adjustments			622						1,094						848						744
Distributable Earnings to Common			$	23,376					$	24,074					$	31,991					$	13,001
Average common stock & common stock equivalents(6)			1,297,442						1,324,424						1,319,051						1,331,629
GAAP net income/(loss) ROE			3.3		%				5.5		%				2.7		%				5.6		%
Distributable earnings ROE			7.2		%				7.3		%				4.9		%				2.0		%
GAAP net income/(loss) per share, diluted			$	0.12					$	0.19					$	0.19					$	0.40
GAAP net income/(loss) per share, fully converted(7)			$	0.13					$	0.21					$	0.21					$	0.42
Distributable earnings per share, fully converted(7)			$	0.25					$	0.27					$	0.34					$	0.15
Distributable earnings per share before realized gain/(loss), fully converted(7)			$	0.28					$	0.23					$	0.49					$	0.53

________________________

(1) Represents unrealized gains and losses on (i) commercial mortgage loans, held for sale, measured at fair value, (ii) other real estate investments, measured at fair value and (iii) derivatives.

(2) Represents accrued and unpaid subordinated performance fee. In addition, reversal of subordinated performance fee represents cash payment obligations in the quarter.

(3) Represents transaction-related and non-recurring costs associated with the acquisition of NewPoint.

(4) Represents non-cash (income) loss from equity method investments, net of cash received as return on capital for the quarter.

(5) Represents amounts deemed nonrecoverable upon a realization event, which is generally at the time a loan is repaid, or in the case of a foreclosure or other property, when the underlying asset is sold. Amounts may also be deemed non-recoverable if, in our determination, it is nearly certain the carrying amounts will not be collected or realized upon sale. Amount may be different than the GAAP basis. As of June 30, 2026, the Company has $10.0 million of GAAP gain adjustments and $4.6 million of GAAP loss adjustments that would run through distributable earnings if and when cash gains or losses are realized.

(6) Represents the average of all classes of equity except the Series E Preferred Stock.

(7) Fully Converted assumes conversion of our series of convertible preferred stock and OP units along with full vesting of our outstanding equity compensation awards.

Franklin BSP Realty Trust Second Quarter 2026 Supplemental Information

B E N E F I T S T R E E T P A R T N E R S 2 Important Information The information herein relates to the Company’s business and financial information as of June 30, 2026 and does not reflect subsequent developments. Risk Factors Investing in and owning our common stock involves a high degree of risk. For a discussion of these risks, see the section entitled “Risk Factors” in our Annual Report on Form 10- K filed with the SEC on February 25, 2026, and the risk disclosures in our subsequent periodic reports filed with the SEC, including our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026. Forward-Looking Statements Certain statements included in this presentation are forward-looking statements. Those statements include statements regarding the intent, belief or current expectations of Franklin BSP Realty Trust, Inc. (“FBRT” or the “Company”) and may include the assumptions on which such statements are based, and generally are identified by the use of words such as "may," "will," "seeks," "anticipates," "believes," "estimates," "expects," "plans," "intends," "should" or similar expressions. Actual results may differ materially from those contemplated by such forward-looking statements. Factors that could cause actual outcomes to differ materially from our forward-looking statements include macroeconomic factors in the United States including inflation, changing interest rates and economic contraction, impairments in the value of real estate property securing our loans or that we own, the extent of any recoveries on delinquent loans, and the financial stability of our borrowers, and the other factors set forth in the risk factors section of our most recent Form 10-K and Form 10-Q. The extent to which these factors impact us and our borrowers will depend on future developments, which are highly uncertain and cannot be predicted with confidence. Further, forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, except as required by law. Additional Important Information The summary information provided in this presentation does not purport to be complete and no obligation to update or otherwise revise such information is being assumed. Nothing shall be relied upon as a promise or representation as to the future performance of the Company. This summary is not an offer to sell securities and is not soliciting an offer to buy securities in any jurisdiction where the offer or sale is not permitted. This summary is not advice, a recommendation or an offer to enter into any transaction with us or any of our affiliated funds. There is no guarantee that any of the goals, targets or objectives described in this summary will be achieved. The information contained herein is not intended to provide, and should not be relied upon for, accounting, legal, ERISA or tax advice or investment recommendations. Investors should also seek advice from their own independent tax, accounting, financial, ERISA, investment and legal advisors to properly assess the merits and risks associated with their investment in light of their own financial condition and other circumstances. The information contained herein is qualified in its entirety by reference to our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. You may obtain a copy of the most recent Annual Report or Quarterly Report by calling (844) 785-4393 and/or visiting www.fbrtreit.com. This presentation contains information regarding FBRT’s financial results that is calculated and presented on the basis of methodologies other than in accordance with accounting principles generally accepted in the United States (“GAAP”), including Distributable Earnings. Please refer to the appendix for the reconciliation of the applicable GAAP financial measures to non-GAAP financial measures. PAST PERFORMANCE IS NOT A GUARANTEE OR INDICATIVE OF FUTURE RESULTS. INVESTMENTS INVOLVE SIGNIFICANT RISKS, INCLUDING LOSS OF THE ENTIRE INVESTMENT. There is no guarantee that any of the estimates, targets or projections illustrated in this summary will be achieved. Any references herein to any of the Company’s past or present investments, portfolio characteristics, or performance, have been provided for illustrative purposes only. It should not be assumed that these investments were or will be profitable or that any future investments will be profitable or will equal the performance of these investments. There can be no guarantee that the investment objective of the Company will be achieved. Any investment entails a risk of loss. An investor could lose all or substantially all of his or her investment. Please refer to our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q for a more complete list of risk factors. The following slides contain summaries of certain financial information about the Company. The information contained in this presentation is summary information that is intended to be considered in the context of our filings with the Securities and Exchange Commission and other public announcements that we may make, by press release or otherwise, from time to time.

FBRT 2Q 2026 Financial Update

B E N E F I T S T R E E T P A R T N E R S 4 2Q 2026 Highlights 1. Fully Converted assumes conversion of our series of convertible preferred stock and Class A units in FBRT OP LLC, our operating partnership (“OP Units”), along with full vesting of our outstanding equity compensation awards. 2. Please see appendix for GAAP net income to Distributable Earnings calculation. 3. Excludes the impact of accumulated depreciation and amortization of real property and includes the impact of the fair value of our MSRs over their carrying value. Please see appendix for GAAP book value to adjusted book value calculation. 4. Cash excludes restricted cash. Total liquidity amount includes the cash available we can invest at a market advance rate utilizing our available capacity on financing lines. FBRT 2Q 2026 Financial Update Earnings • GAAP Net Income of $16.3 million or $0.12 per diluted common share or $0.13 per fully converted share (1) • Distributable Earnings before realized losses (2) of $30.2 million or $0.28 per fully converted share (1) • Distributable Earnings (2) of $28.3 million or $0.25 per fully converted share (1) • Declared a 2Q 2026 cash dividend of $0.20 per share, representing an annualized yield of 5.6% on fully converted book value per share (1) Capitalization • Fully converted book value per share is $14.24 vs. $14.18 in Q1 2026 (1). Adjusted fully converted book value per share is $14.74 vs. $14.58 in Q1 2026 (1) (3) • Net debt to equity is 2.6x; recourse net debt to equity is 0.7x • 79% of financing sources are non-mark-to-market on our core book • $797 million of liquidity of which $136 million is cash and $78 million is CLO reinvest/ramp available (4) • Repurchased $16.0 million of common stock with a weighted average price of $8.70, which resulted in $0.11 of accretion to fully converted book value per share (1) Investments • Core Portfolio: Principal balance totaled $4.3 billion following $458 million of loan repayments, with $167 million of new loan commitments and $248 million of total fundings during the quarter • Agency Business: Originated $399 million of new loan commitments under programs with Fannie Mae, Freddie Mac, and HUD Portfolio • Core Portfolio of 172 CRE loans and $4.3 billion of principal balance, average size of $25 million and 80% multifamily. One asset was removed from the watch list. 12 assets remain on the watch list, five of which are risk rated a five and seven of which are risk rated a four • REO portfolio of six foreclosure positions (vs. six in Q1 2026) totaling $199 million and one investment real estate owned position of $115 million

B E N E F I T S T R E E T P A R T N E R S 5 Income Statement Balance Sheet - Assets (End of Quarter) Net interest income (1) $29.3 Total core portfolio $4,275.1 Operating expenses (1), (2) (15.0) Variable interest entities assets, at fair value 544.0 (Provision) / Benefit for credit loss (1) (5.2) Loans held-for-sale 251.8 NewPoint net income (loss) (3.1) Total real estate securities 187.2 Other income/(loss) (1) 10.3 Mortgage servicing rights 205.5 GAAP net income (loss) $16.3 Cash and restricted cash 155.0 NewPoint adjustments to GAAP net income (loss) (3) 10.5 Real estate owned 317.5 Other adjustments to GAAP net income (loss) (3) 3.4 Other assets 447.7 Distributable Earnings before realized gain/(loss) (3) $30.2 Total assets $6,383.8 Realized gain/(loss) adjustments to GAAP net income (loss) (3) (1.9) Distributable Earnings (3) $28.3 Balance Sheet - Debt & Equity Collateralized loan obligations $2,943.6 GAAP net income (loss) per share, fully converted (4) $0.13 Warehouse - Core 559.0 GAAP return on common equity 3.3% Warehouse - NewPoint 243.4 GAAP dividend coverage, fully converted (3), (4) 63.4% Repo - securities 196.5 Asset specific financings 37.1 Distributable Earnings per share before realized gain/(loss), fully converted (3), (4) $0.28 Unsecured debt 185.9 Distributable Earnings return on common equity before realized gain/(loss) (3) 7.8% Total debt $4,165.5 Distributable Earnings dividend coverage before realized gain/(loss), fully converted (3), (4) 137.7% Preferred equity (5) 348.5 Distributable Earnings per share, fully converted (3), (4) $0.25 Common stock/retained earnings (6) 1,200.7 Distributable Earnings return on common equity (3) 7.2% Total equity (5), (6) $1,549.2 Distributable Earnings dividend coverage, fully converted (3), (4) 127.4% Book value per share, fully converted (4) $14.24 Dividend per share $0.200 Net debt/total equity 2.60x Dividend per share yield on book value 5.6% Net debt/total equity ex. NewPoint 2.44x Recourse net debt/total equity 0.70x Financial Highlights Note: All numbers in millions except per share and share data. 1. Excludes NewPoint. 2. Does not include real estate owned operating income which is reported under Other income / (loss). 3. Please see appendix for the detail on the adjustments from GAAP net income to Distributable Earnings. 4. Fully Converted assumes conversion of our series of convertible preferred stock and OP Units along with full vesting of our outstanding equity compensation awards. 5. Includes $90 million of preferred equity that converts to common equity on 1/21/28, subject to the holder's right to accelerate the conversion. These amounts are reflected as temporary equity on the consolidated balance sheets. The remaining $259 million of preferred equity represents the Series E preferred, which is not convertible into common equity. 6. Includes non-controlling interest. FBRT 2Q 2026 Financial Update

B E N E F I T S T R E E T P A R T N E R S 6 $26.7 $17.9 $13.5 $28.3 3Q'25 4Q'25 1Q'26 2Q'26 $25.9 (2) $28.4 (2) $27.7 (2) $30.2 (2) Earnings & Distributions Note: All numbers in millions except per share data. 1. Please see appendix for the detail on the adjustments from GAAP net income to Distributable Earnings. 2. Distributable earnings before realized gain/(loss). 3. Fully Converted assumes conversion of our series of convertible preferred stock and OP Units along with full vesting of our outstanding equity compensation awards. FBRT 2Q 2026 Financial Update Distributable Earnings ($M) (1) GAAP Net Income (Loss) ($M) $17.6 $18.4 $12.3 $16.3 3Q'25 4Q'25 1Q'26 2Q'26 3Q'25 4Q'25 1Q'26 2Q'26 $0.355 $0.355 $0.200 $0.200 Dividend per share $0.22 $0.12 $0.09 $0.25 Distributable earnings per share, fully converted (1), (3) $0.23 $0.22 $0.22 $0.28 Distributable earnings per share before realized gain/(loss), fully converted (1), (3) 61% 34% 45% 127% Distributable dividend coverage, fully converted (1), (3) 66% 63% 110% 138% Distributable dividend coverage before realized gain/(loss), fully converted (1), (3)

B E N E F I T S T R E E T P A R T N E R S 7 Core Net Fundings Note: All numbers in millions. 1. Includes full paydowns, dispositions, partial paydowns, non-REO related charge-offs and amortization. 2. Includes REO related charge-offs. FBRT 2Q 2026 Financial Update 2Q 2026 ($M) YTD 2026 ($M) $165 $84 ($458) $4,609 ($57) $4,343 1Q26 Loans Outstanding Fundings on New Loans Fundings on Existing Loans Repayments¹ REO/ Foreclosures² 2Q26 Loans Outstanding $627 $117 ($780) ($57) $4,436 $4,343 4Q25 Loans Outstanding Fundings on New Loans Fundings on Existing Loans Repayments¹ REO/ Foreclosures² 2Q26 Loans Outstanding Total Commitment of $635M Total Commitment of $167M

B E N E F I T S T R E E T P A R T N E R S 8 Capitalization Overview 1. On our core book (excluding repo-securities and NewPoint), 79% of financings are non-mark-to-market. 2. Net leverage represents (i) total outstanding borrowings under secured financing arrangements, including collateralized loan obligations, repurchase agreements - commercial mortgage loans, repurchase agreements - real estate securities, asset-specific financing arrangements, and unsecured debt, less cash and cash equivalents, to (ii) total equity and total redeemable convertible preferred stock, at period end. Recourse net leverage excludes collateralized loan obligations. FBRT 2Q 2026 Financial Update Financing Sources (1) Net Leverage (2) Average cost of debt, including financing costs, was 6.2% in 2Q26 vs. 6.0% in 1Q26 Collateralized Loan Obligations, 71% Warehouse, 19% Unsecured Debt, 4% Repo - Securities, 5% Asset Specific Financings, 1% 0.70x 2.60x 0.00x 0.50x 1.00x 1.50x 2.00x 2.50x 3.00x Recourse Net Leverage Total Net Leverage

B E N E F I T S T R E E T P A R T N E R S 9 Financing Lines 1. Outstanding balance as of June 30, 2026 and net of tranches held by FBRT. 2. Cost of debt is shown before discount and transaction costs. 3. Capacity for loans. Excludes bond repurchase agreements. FBRT 2Q 2026 Financial Update CLOs Warehouse/Revolver/Other CLO Name Debt Amount(1) Reinvest End Date Cost of Debt(2) BSPRT 2023-FL10 $356 million Ended S + 2.92% BSPRT 2024-FL11 $886 million 10/8/27 S + 1.99% BSPRT 2025-FL12 $947 million 5/8/28 S + 1.61% BSPRT 2026-FL13 $778 million 11/10/28 S + 1.76% Total $2,967 million CLO reinvestment available $78 million Repo – Securities (outstanding) $197 million Name Capacity (3) JP Morgan $750 million Barclays (Warehouse) $500 million Atlas SP Partners $350 million Wells Fargo $250 million Morgan Stanley $150 million Barclays (Secured Revolver) $100 million BAML Line of Credit (NewPoint) $450 million Fifth Third Warehouse Line of Credit (NewPoint) $400 million Fifth Third Line of Credit (NewPoint) $125 million JPM Line of Credit (NewPoint) $700 million PNC Line of Credit (NewPoint) $500 million ASAP Line of Credit (NewPoint) $100 million Total $4,375 million

B E N E F I T S T R E E T P A R T N E R S 10 $78 $583 $136 $797 Unrestricted Cash CLO Reinvestment Available Financing Available & In Progress¹ Total Liquidity Liquidity ($M) Liquidity 1. Represents cash available at 6/30/2026 that we can invest at a market advance rate utilizing our available capacity on financing lines. FBRT 2Q 2026 Financial Update

B E N E F I T S T R E E T P A R T N E R S 11 Income Statement (QTD) Volume UPB Count Net interest income $0.6 Q2 2026 Total $398.8 20 Gain / (loss) on sales 9.7 Mortgage servicing rights 3.9 Mortgage servicing rights amortization, impairments & payoffs (11.3) Servicing and ancillary fees 12.4 Servicing interest on escrows 8.0 Other income 1.2 Total Revenues $24.5 Operating expenses (28.9) Taxes 3.2 All other (1.9) GAAP net income (loss) ($3.1) Mortgage servicing rights (3.9) Mortgage servicing rights amortization, impairments & payoffs 11.3 Fair value adjustments on equity investments (0.3) Other adjustments 3.4 Distributable Earnings $7.4 ROE GAAP return on equity (1) (3.0%) Distributable Earnings return on equity (1) 7.2% NewPoint Financial Highlights Note: All numbers in millions. 1. Based on final purchase price of $410 million. FBRT 2Q 2026 Financial Update

B E N E F I T S T R E E T P A R T N E R S 12 MSR Rollforward MSR Value on Commitments (1) Total MSR Value Ending balance at 3/31 $211.9 $5.8 $217.7 OMSR - new commitments - 3.9 3.9 OMSR - moved at settlement 4.9 (4.9) - Amortization, impairments & payoffs (11.3) - (11.3) Ending Balance at 6/30 $205.5 $4.8 $210.3 Servicing Book Rollforward Product Type 3/31 UPB Change 6/30 UPB Fannie $7,937 ($2) $7,935 Freddie 8,877 197 9,074 Ginnie 5,205 63 5,268 Bridge 422 (21) 401 Affordable 448 33 481 Benefit Street Partners (2) 10,025 884 10,909 Private Label 25,216 554 25,770 Total $58,130 $1,708 $59,838 Agency/FHA $22,019 $258 $22,277 Other $36,111 $1,450 $37,561 NewPoint MSR & Servicing Book Note: All numbers in millions. 1. Included in commercial mortgage loans held for sale and derivative instruments on the balance sheet. 2. Represents the bridge book serviced for the Company's affiliates, including $4.6 billion of the $10.9 billion serviced for a wholly owned subsidiary; related revenue is eliminated in consolidation. FBRT 2Q 2026 Financial Update

Portfolio

B E N E F I T S T R E E T P A R T N E R S 14 Post-Rate Hike, 77% Pre-Rate Hike, 23% Senior, 99% Mezzanine, 1% Floating, 90% Fixed, 10% Multifamily, 80% Hospitality, 10% Industrial, 6% Office, 1% Other, 3% Texas, 27% Florida, 15% North Carolina, 14% Various, 8% Georgia, 7% New York, 5% Arizona, 3% South Carolina, 3% All Other, 18% Core Loan Portfolio Composition 1. Weighted average loan-to-value percentage (WA LTV) represents the weighted average ratio of the loan amount to the appraised value of the property at the time of origination. 2. Unpaid principal balance (UPB) represents the portion of the loan that has not yet been remitted to the lender. 3. Five risk rated 5 and four risk rated 4. Portfolio $4.3B total portfolio; 64.2% WA LTV (1) Portfolio Summary Rate Type Collateral Summary Collateral by Vintage Collateral by State 161 senior loans; average UPB (2) of $27M 11 mezzanine loans; average UPB (2) of $5M 9 non-performing loans (3) Portfolio Overview

B E N E F I T S T R E E T P A R T N E R S 15 Southeast, 71% Various, 12% Mideast, 9% Southwest, 4% Far West, 4% Multifamily, 78% Mixed Use, 22% North Carolina, 64% Various, 12% New Jersey, 9% Georgia, 7% Texas, 4% Washington, 4% By Region By State 9 loans; $167 million total commitment ($165 million of initial funding / $2 million of future funding) 2.38% weighted average spread (1); 6.03% all-in coupon (2) 1.0% and 0.1% weighted average origination and exit fees, respectively By Collateral Core Originations in the Quarter Portfolio Overview Note: Charts shown above are based on the initial funding/unpaid principal balance of the newly originated loans. 1. Represents the Year 1 weighted average spread. The weighted average spread will increase to 2.48% in Year 2, reflecting one loan’s rate increase to SOFR + 2.25%. 2. All-in coupon based on 6/30/26 SOFR indices.

B E N E F I T S T R E E T P A R T N E R S 16 Investment Loan Type Investment Date Default Date Non-Performing Collateral Loan Purpose Location Loan Risk Rating 456-Unit Apartment Community Floating Rate Senior Loan Q4 2021 Q1 2026 Yes Multifamily Acquisition Durham, NC 5 276-Unit Apartment Community Floating Rate Senior Loan Q2 2022 Q1 2026 Yes Multifamily Acquisition Charlotte, NC 5 184-Unit Apartment Community Floating Rate Senior Loan Q4 2021 None Yes Multifamily Acquisition Glendale, AZ 5 344-Unit Apartment Community Floating Rate Senior Loan Q4 2022 None Yes Multifamily Acquisition San Antonio, TX 5 Suburban Office Park Floating Rate Senior Loan Q4 2019 None Yes Office Acquisition Alpharetta, GA 5 848-Unit Apartment Community Floating Rate Senior Loan Q1 2021 Q2 2026 Yes Multifamily Acquisition Garland, TX 4 352-Unit Apartment Community Floating Rate Senior Loan Q1 2024 None No Multifamily Acquisition San Antonio, TX 4 172-Unit Apartment Community Floating Rate Senior Loan Q1 2022 None Yes Multifamily Acquisition Tempe, AZ 4 476-Unit Apartment Community Floating Rate Senior Loan Q1 2021 None No Multifamily Acquisition Austin, TX 4 324-Unit Apartment Community Fixed Rate Senior Loan Q2 2025 Q2 2026 Yes Multifamily Other Houston, TX 4 176-Unit Apartment Community Floating Rate Senior Loan Q2 2022 Q2 2026 No Multifamily Acquisition Fort Worth, TX 4 197-Unit Multifamily Portfolio Floating Rate Senior Loan Q3 2021 None Yes Multifamily Acquisition Warner Robins, GA 4 Core Portfolio - Watch List Loans (Risk Rating 4&5) Note: Watch list loans are loans with a risk rating of 4 or 5. Portfolio

B E N E F I T S T R E E T P A R T N E R S 17 Investment Loan Investment Date Foreclosure / Deed-In-Lieu Date Collateral Type Collateral Detail Location CBD Office Complex Q1 2020 Q3 2023 Office 124k Square Foot Office Complex Portland, OR 297-Unit Apartment Community Q3 2022 Q2 2026 Multifamily 297-Unit, Garden Style Apartment Community Huntersville, NC 426-Unit Apartment Community Q2 2018 Q2 2024 Multifamily 426-Unit, High Rise Apartment Community Cleveland, OH CBD Office Complex Q1 2021 Q1 2025 Office 301k Square Foot Office Complex Denver, CO 249-Unit Apartment Community Q1 2021 Q2 2025 Multifamily 249-Unit, Garden Style Apartment Community Austin, TX 272-Unit Apartment Community Q2 2022 Q4 2025 Multifamily 272-Unit, Garden Style Apartment Community Fort Worth, TX Foreclosure Real Estate Owned (“REO”) Portfolio • During the quarter, we sold the largest REO asset in the portfolio and completed the foreclosure of a Huntersville, North Carolina asset, where favorable underlying economics supported an increase in carrying value.

Appendix

B E N E F I T S T R E E T P A R T N E R S 19 Core Portfolio – FBRT Portfolio Details – Top 15 Loans Note: All numbers in millions. 1. Effective Yield defined as: (1) current spread of the loan plus (2) the greater of any applicable index or index floor. 2. As-is loan to value percentage is from metrics at origination. Predevelopment construction loans at origination will not have an LTV and therefore is nil Appendix Loan Loan Type Origination Date Par Value Amortized Cost Spread Effective Yield (1) Fully Extended Maturity State Collateral Type As-is LTV (2) Loan 1 Senior Loan 5/10/24 117 116 + 2.50% 6.15% 5/9/29 Connecticut Multifamily 50.7% Loan 2 Senior Loan 2/9/23 94 94 + 4.00% 8.00% 5/9/28 Various Hospitality 53.6% Loan 3 Senior Loan 10/28/25 93 92 + 2.30% 5.95% 11/9/30 Various Multifamily 72.1% Loan 4 Senior Loan 12/15/21 80 80 4.25% 4.25% 3/9/27 North Carolina Multifamily 76.1% Loan 5 Senior Loan 2/16/24 79 79 + 3.65% 7.30% 3/9/29 Texas Multifamily 53.3% Loan 6 Senior Loan 2/10/22 77 77 + 3.20% 6.85% 2/9/27 Florida Multifamily 74.5% Loan 7 Senior Loan 3/7/24 75 75 + 2.70% 6.35% 3/9/29 North Carolina Industrial 58.6% Loan 8 Senior Loan 2/9/26 73 73 + 3.50% 7.15% 2/9/31 Florida Multifamily 62.9% Loan 9 Senior Loan 9/6/24 73 73 + 2.75% 6.40% 9/9/28 Florida Multifamily 72.7% Loan 10 Senior Loan 3/31/21 72 72 + 2.20% 5.85% 7/9/26 Texas Multifamily 72.6% Loan 11 Senior Loan 4/1/26 71 70 + 2.00% 5.66% 4/9/31 North Carolina Multifamily 93.9% Loan 12 Senior Loan 2/29/24 67 67 + 3.25% 7.25% 3/9/29 Florida Multifamily 58.7% Loan 13 Senior Loan 6/14/22 64 64 + 3.45% 7.10% 6/9/27 Georgia Multifamily 71.6% Loan 14 Senior Loan 1/24/25 60 60 + 2.50% 6.15% 2/9/29 Texas Multifamily 86.7% Loan 15 Senior Loan 2/12/25 57 56 4.75% 4.75% 2/9/29 Texas Multifamily 88.6% Loans 16 - 172 Senior & Mezz Loans Various 3,191 3,182 + 3.42% 7.18% Various Various Various 62.7% Total/Wtd. avg. $4,343 $4,330 + 3.22% 6.97% 2.5 years 64.2% Average Loan Size $25 $25

B E N E F I T S T R E E T P A R T N E R S 20 Risk Rating Risk Rating Principal Balance Loan Count, 1Q26 (+) Addition (-) Reduction Loan Count, 2Q26 Change QoQ Non-Performing Watch List 1 - - - - - - - - 2 3,052 140 9 (13) 136 (4) - - 3 858 26 3 (5) 24 (2) - - 4 220 7 2 (2) 7 - 4 7 5 213 4 1 - 5 1 5 5 Total 4,343 177 15 (20) 172 (5) 9 12 0.0% 70.3% 19.7% 5.1% 4.9% 1 2 3 4 5 Average risk rating was 2.4 for the quarter vs. 2.5 from 1Q26 Core Portfolio – Risk Ratings Note: Principal balance in millions. Watch list loans are loans with a risk rating of 4 or 5. Appendix Risk Ratings

B E N E F I T S T R E E T P A R T N E R S 21 $0.11 $0.06 $0.00 ($0.02) ($0.03) -0.75% -0.50% 6/30/2026 +0.25% +0.50% Change in Floating Base Rate Indices Core Portfolio – Earnings Sensitivity Note: Reflects earnings impact of an increase or decrease in the floating-rate indices referenced by our portfolio, assuming no change in credit spreads, portfolio composition or asset performance. Appendix Annual EPS Sensitivity on Index Rates As of 6/30/26 1M SOFR: 3.66% As of 7/15/26 1M SOFR: 3.68%

B E N E F I T S T R E E T P A R T N E R S 22 $365 $795 $892 $1,281 $593 $417 2026 ROY 2027 2028 2029 2030 2031 Core Portfolio – Fully Extended Maturities Note: All numbers in millions. Appendix Fully Extended Maturity by Year

B E N E F I T S T R E E T P A R T N E R S 23 Multifamily 93% Hospitality 4% All Other 3% Core Portfolio – Allowance For Loan Loss Note: All numbers in millions. Allowance for loan loss above includes future funding. Appendix Total Allowance for Credit Loss by Collateral Type 1Q26 Provision/ (Benefit) 2Q26 UPB As % of Total UPB General CECL Allowance $33.2 $3.7 $36.9 $4,152 0.9% Specific CECL Allowance 16.3 1.5 17.8 $191 0.4% Total Allowance for Credit Losses $49.5 $5.2 $54.7 $4,343 1.3% As % of Total UPB 1.1% 0.1% 1.3%

B E N E F I T S T R E E T P A R T N E R S 24 GAAP Net Income to Distributable Earnings Reconciliation Note: All numbers in millions except share and per share data. 1. Represents unrealized gains and losses on (i) commercial mortgage loans, held for sale, measured at fair value, (ii) other real estate investments, measured at fair value and (iii) derivatives. 2. Represents accrued and unpaid subordinated performance fee. In addition, reversal of subordinated performance fee represents cash payment obligations in the quarter. 3. Represents transaction-related and non-recurring costs associated with the acquisition of NewPoint. 4. Represents non-cash (income) loss from equity method investments, net of cash received as return on capital for the quarter. 5. Represents amounts deemed nonrecoverable upon a realization event, which is generally at the time a loan is repaid, or in the case of a foreclosure or other property, when the underlying asset is sold. Amounts may also be deemed non- recoverable if, in our determination, it is nearly certain the carrying amounts will not be collected or realized upon sale. Amount may be different than the GAAP basis. As of June 30, 2026, the Company has $10.0 million of GAAP gain adjustments and $4.6 million of GAAP loss adjustments that would run through distributable earnings if and when cash gains or losses are realized. 6. Represents the average of all classes of equity except the Series E Preferred Stock. 7. Fully Converted assumes conversion of our series of convertible preferred stock and OP Units along with full vesting of our outstanding equity compensation awards. Appendix 2Q'26 1Q'26 4Q'25 3Q'25 GAAP Net Income (Loss) 16.3 12.3 18.4 17.6 Adjustments: Unrealized (Gain) / Loss (1) (6.5) 3.2 1.8 1.9 Subordinated Performance Fee (2) - - (0.3) (0.3) Non-Cash Compensation Expense 3.4 3.1 3.3 5.2 Depreciation & Amortization, net 1.9 3.4 3.4 3.4 Transaction-Related and Non-Recurring Items (3) - - - 4.0 (Reversal of) / Provision for Credit Loss 7.2 11.4 (7.9) (0.6) (Gain) / Loss on Debt Extinguishment Reversal 0.9 - 7.7 - Income from mortgage servicing rights (3.9) (6.7) (8.8) (19.7) Amortization and write-offs of MSRs 11.3 9.0 9.7 15.9 Deferred tax adjustment (0.3) 0.7 3.0 - Fair value adjustments on equity investments (4) (0.2) (10.4) (2.6) 0.9 Distributable Earnings before realized gain/(loss) 30.2 25.9 27.7 28.4 Realized Gain / (Loss) on Debt Extinguishment (0.9) - (7.7) - Realized Gain / (Loss) Adjustment on Loans and REO (5) (1.0) (12.3) (2.2) (1.7) Distributable Earnings 28.3 13.5 17.9 26.7 7.5% Series E Cumulative Redeemable Preferred Stock Dividend (4.8) (4.8) (4.8) (4.8) Noncontrolling Interests Net (Income) / Loss (0.7) (0.3) (0.7) (0.3) Noncontrolling Interests Net (Income) / Loss DE Adjustments 0.6 0.2 (0.5) (0.5) Distributable Earnings to Common 23.4 8.6 11.8 21.0 Average Common Stock & Common Stock Equivalents (6) $1,297.7 $1,340.9 $1,370.0 $1,385.4 GAAP Net Income / (Loss) ROE 3.3% 2.1% 3.8% 3.6% Distributable Earnings ROE 7.2% 2.6% 3.5% 6.1% GAAP Net Income / (Loss) Earnings Per Share, Diluted $0.12 $0.07 $0.13 $0.12 Fully Converted Weighted Average Shares Outstanding (7) 91,748,980 95,257,000 96,607,015 97,406,462 GAAP Net Income / (Loss) Earnings Per Share, Fully Converted (7) $0.13 $0.08 $0.13 $0.13 Distributable Earnings Per Share, Fully Converted (7) $0.25 $0.09 $0.12 $0.22 Distributable Earnings Per Share before realized gain/(loss), Fully Converted (7) $0.28 $0.22 $0.22 $0.23

B E N E F I T S T R E E T P A R T N E R S 25 June 30, 2026 Stockholders' equity applicable to convertible common stock $ 1,288,620 Shares: Common stock 75,124,154 Restricted stock and restricted stock units 1,634,880 Series H convertible preferred stock 5,370,498 Class A OP Units 8,385,951 Total outstanding shares 90,515,483 Fully converted book value per share (1) $ 14.24 June 30, 2026 Stockholders' equity applicable to convertible common stock $ 1,288,620 Accumulated depreciation and amortization adjustment 19,518 MSR Fair Value adjustment 26,158 Adjusted Stockholders’ equity applicable to convertible common stock 1,334,296 Shares: Common stock 75,124,154 Restricted stock and restricted stock units 1,634,880 Series H convertible preferred stock 5,370,498 Class A OP Units 8,385,951 Total outstanding shares 90,515,483 Adjusted fully converted book value per share (1) $ 14.74 Book Value Per Share & Shares Outstanding Appendix Note: All numbers in thousands except per share and share data. Preferred stock values expressed in common stock equivalents. 1. Fully Converted book value per share assumed conversion of the Company's Series H preferred stock, OP Units and the vesting of the Company's unvested RSUs. Book Value Per Share Adjusted Book Value Per Share

B E N E F I T S T R E E T P A R T N E R S 26 2026 2025 Income Interest income $ 97,187 $ 111,171 Less: Interest expense 67,261 70,213 Net interest income 29,926 40,958 Gain/(loss) on sales, including fee-based services, net 15,775 264 Mortgage servicing rights 3,917 — Servicing revenue, net 9,658 — Gain/(loss) on derivatives 480 (217) Revenue from real estate owned 5,538 8,336 Total income $ 65,294 $ 49,341 Expenses Compensation and benefits $ 20,969 $ — Asset management and subordinated performance fee 5,969 5,537 Acquisition expenses 415 175 Administrative services expenses 2,028 3,884 Professional fees 7,241 4,698 Other expenses 12,030 11,569 Depreciation and amortization 1,983 1,381 Share-based compensation 2,457 2,316 Total expenses $ 53,092 $ 29,560 Other income/(loss) (Provision)/benefit for credit losses $ (7,235) $ 1,487 Realized gain/(loss) on real estate securities, available for sale — 113 Realized gain/(loss) on extinguishment of debt (933) — Gain/(loss) on other real estate investments 7,705 2,684 Income/(loss) from equity method investments 1,345 181 Income/(loss) from VIE's 296 — Total other income/(loss) $ 1,178 $ 4,465 Income/(loss) before taxes 13,380 24,246 (Provision)/benefit for income tax 2,895 138 Net income/(loss) $ 16,275 $ 24,384 Net (income)/loss attributable to non-controlling interest (706) (1,183) Net income/(loss) attributable to Franklin BSP Realty Trust, Inc. $ 15,569 $ 23,201 Less: Preferred stock dividends 5,916 6,748 Net income/(loss) applicable to common stock $ 9,653 $ 16,453 Basic earnings per share $ 0.12 $ 0.19 Diluted earnings per share $ 0.12 $ 0.19 Basic weighted average shares outstanding 76,367,888 82,181,403 Diluted weighted average shares outstanding 84,753,839 82,181,403 Three Months Ended June 30, FBRT Income Statement Appendix

B E N E F I T S T R E E T P A R T N E R S 27 FBRT Balance Sheet Appendix June 30, 2026 ASSETS Cash and cash equivalents $ 136,347 Restricted cash 18,664 Investment securities, held to maturity 23,356 Commercial mortgage loans, held for investment, net of allowance for credit losses of $54,457 as of June 30, 2026 4,275,122 Commercial mortgage loans, held for sale, measured at fair value 251,842 Real estate securities, available for sale, measured at fair value, amortized cost of $187,905 as of June 30, 2026 187,247 Mortgage servicing rights, net 205,549 Accrued interest receivable 33,665 Receivable for loan repayment 80,337 Prepaid expenses and other assets 37,233 Real estate owned, net of depreciation 164,593 Real estate owned, held for sale 115,738 Equity method investments 89,186 Intangible assets, net of amortization 111,866 Goodwill 92,048 Derivative instruments, measured at fair value 12,155 Loans eligible for repurchase 4,881 Variable interest entity (“VIE”) assets, measured at fair value 544,017 Total assets $ 6,383,846 LIABILITIES AND STOCKHOLDERS' EQUITY Collateralized loan obligations $ 2,943,642 Repurchase agreements and revolving credit facilities - commercial mortgage loans 802,380 Repurchase agreements - real estate securities 196,538 Other financings 12,865 Unsecured debt 185,923 Mortgage note payable 24,186 Allowance for loss sharing 19,409 Accrued compensation 32,878 Liability for loans eligible for repurchase 4,881 Interest payable 13,460 Distributions payable 22,945 Accounts payable and accrued expenses 15,266 Due to affiliates 11,322 Derivative instruments, measured at fair value 7,477 Other liabilities 25,022 VIE liabilities, measured at fair value 516,419 Total liabilities $ 4,834,613 Commitments and Contingencies Redeemable convertible preferred stock: Redeemable convertible preferred stock Series H, $0.01 par value, 20,000 authorized and 17,950 issued and outstanding as of June 30, 2026 $ 89,748 Total redeemable convertible preferred stock $ 89,748 Equity: Preferred stock, $0.01 par value; 100,000,000 shares authorized, 7.5% Cumulative Redeemable Preferred Stock, Series E, 10,329,039 shares issued and outstanding as of June 30, 2026 $ 258,742 Common stock, $0.01 par value, 900,000,000 shares authorized, 75,436,265 shares issued and outstanding as of June 30, 2026 750 Additional paid-in capital 1,540,232 Accumulated other comprehensive income/(loss) (658) Accumulated deficit (426,442) Total stockholders' equity $ 1,372,624 Non-controlling interest 86,861 Total equity $ 1,459,485 Total liabilities, redeemable convertible preferred stock and equity $ 6,383,846

B E N E F I T S T R E E T P A R T N E R S 28 Definitions Distributable Earnings and Distributable Earnings to Common Distributable Earnings is a non-GAAP measure, which the Company defines as GAAP net income (loss), adjusted for (i) non-cash CLO amortization acceleration and amortization over the expected useful life of the Company's CLOs, (ii) unrealized gains and losses on loans and derivatives, including CECL reserves and impairments, net of realized gains and losses, as described further below, (iii) non-cash equity compensation expense, (iv) depreciation and amortization, (v) subordinated performance fee accruals/(reversal), (vi) realized gains and losses on debt extinguishment and CLO calls, (vii) non-cash income from mortgage servicing rights, and (viii) certain other non-cash items. Distributable Earnings before realized losses, a non-GAAP measure, presents Distributable Earnings gross of realized gain (loss) on debt extinguishment and realized gain (loss) on loans and real estate owned. Further, Distributable Earnings to Common, a non-GAAP measure, presents Distributable Earnings net of (x) perpetual preferred stock dividend payments and (y) non-controlling interests in joint ventures. As noted above, we exclude unrealized gains and losses on loans and other investments, including CECL reserves and impairments, from our calculation of Distributable Earnings and include realized gains and losses. The nature of these adjustments is described more fully in the footnotes to our reconciliation tables. GAAP loan loss reserves and any property impairment losses have been excluded from Distributable Earnings consistent with other unrealized losses pursuant to our existing definition of Distributable Earnings. We expect to only recognize such potential credit or property impairment losses in Distributable Earnings if and when such amounts are deemed nonrecoverable upon a realization event. This is generally at the time a loan is repaid, or in the case of a foreclosure or other property, when the underlying asset is sold. Amounts may also be deemed non-recoverable if, in our determination, it is nearly certain the carrying amounts will not be collected or realized. The realized loss amount reflected in Distributable Earnings will generally equal the difference between the cash received and the Distributable Earnings basis of the asset. The timing of any such loss realization in our Distributable Earnings may differ materially from the timing of the corresponding loss reserves, charge-offs or impairments in our consolidated financial statements prepared in accordance with GAAP. The Company believes that Distributable Earnings, Distributable Earnings before realized losses and Distributable Earnings to Common provide meaningful information to consider in addition to the disclosed GAAP results. The Company believes Distributable Earnings, Distributable Earnings before realized losses and Distributable Earnings to Common are useful financial metrics for existing and potential future holders of its common stock as historically, over time, Distributable Earnings to Common has been an indicator of common dividends per share. As a REIT, the Company generally must distribute annually at least 90% of its taxable income, subject to certain adjustments, and therefore believes dividends are one of the principal reasons stockholders may invest in its common stock. Further, Distributable Earnings to Common helps investors evaluate performance excluding the effects of certain transactions and GAAP adjustments that the Company does not believe are necessarily indicative of current loan portfolio performance and the Company's operations and is one of the performance metrics the Company's board of directors considers when dividends are declared. Distributable Earnings, Distributable Earnings before realized losses and Distributable Earnings to Common do not represent net income (loss) and should not be considered as an alternative to GAAP net income (loss). The methodology for calculating Distributable Earnings, Distributable Earnings before realized losses and Distributable Earnings to Common may differ from the methodologies employed by other companies and thus may not be comparable to the Distributable Earnings reported by other companies.

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