Franklin BSP Realty Trust, Inc.

Previous wording

The Company invests in commercial real estate debt investments, which may include first mortgage loans, subordinated mortgage loans, mezzanine loans and participations in such loans. The Company also originates conduit loans which the Company intends to sell through its TRS into commercial mortgage-backed securities ("CMBS") securitization transactions. Historically this business has focused primarily on CMBS, commercial real estate collateralized loan obligation bonds and single asset single borrower bonds (collectively "CMBS bonds"), collateralized debt obligations ("CDOs") and other securities. The Company also owns real estate that was either acquired by the Company through foreclosure or deed in lieu of foreclosure, or that was purchased for investment, primarily subject to triple net leases.

Current wording

The Company invests in commercial real estate debt investments, which may include first mortgage loans, subordinated mortgage loans, mezzanine loans and participations in such loans. The Company also originates conduit loans which the Company intends to sell through its TRS into CMBS securitization transactions. Historically this business has focused primarily on CMBS, CMBS bonds, CDOs and other securities. The Company also owns real estate that was either acquired by the Company through foreclosure or deed-in-lieu of foreclosure, or that was purchased for investment.

Previous wording

Book value per share as of September 30, 2024 and December 31, 2023, excluding the impact for accumulated depreciation and amortization of real property of $12.6 million and $9.4 million, respectively, was $15.38 and $15.88.

Current wording

(3) Book value per share as of March 31, 2025 and December 31, 2024, excluding the impact for accumulated depreciation and amortization of real property of $14.8 million and $13.8 million, respectively, was $15.12 and $15.35.

Previous wording

During the nine months ended September 30, 2024, there were no material changes to our critical accounting estimates as compared to the critical accounting estimates disclosed in Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2023.

Current wording

During the three months ended March 31, 2025, there were no material changes to our critical accounting estimates as compared to the critical accounting estimates disclosed in Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2024.

Previous wording

As of September 30, 2024 and December 31, 2023, our portfolio consisted of 157 and 144 commercial mortgage loans, held for investment, respectively. The commercial mortgage loans, held for investment, net of allowance for credit losses, as of September 30, 2024 and December 31, 2023 had a total carrying value of $5,077.5 million and $4,989.8 million, respectively. As of September 30, 2024 and December 31, 2023 the Company did not hold any commercial mortgage loans, held for sale. As of September 30, 2024 and December 31, 2023, we had $210.7 million and $242.6 million, respectively, of real estate securities, available for sale, measured at fair value. As of September 30, 2024 and December 31, 2023, our real estate owned, held for investment portfolio was composed of three investments with carrying values of $113.8 million and $115.8 million, respectively. As of September 30, 2024 and December 31, 2023, we had 11 positions and one position classified as real estate owned, held for sale with combined carrying values of $284.4 million and $103.7 million, respectively.

Current wording

As of March 31, 2025 and December 31, 2024, our portfolio consisted of 152 and 155 commercial mortgage loans, held for investment, respectively. The commercial mortgage loans, held for investment, net of allowance for credit losses, as of March 31, 2025 and December 31, 2024 had a total carrying value of $4,739.9 million and $4,908.7 million, respectively. As of March 31, 2025 and December 31, 2024, our commercial mortgage loans, held for sale, measured at fair value, were comprised of one and three loans with a total fair value of $5.0 million and $87.3 million, respectively. As of March 31, 2025 and December 31, 2024, we had $167.2 million and $203.0 million, respectively, of real estate securities, available for sale, measured at fair value. As of March 31, 2025 and December 31, 2024, our real estate owned, held for investment portfolio was composed of three properties with carrying values of $112.5 million and $113.2 million, respectively. As of March 31, 2025 and December 31, 2024, we had ten and twelve positions classified as real estate owned, held for sale with combined carrying values of $243.4 million and $222.9 million, respectively.

Previous wording

As of September 30, 2024, we had three loans (one secured by a multifamily property and two secured by office properties) designated as non-performing status with a total amortized cost of $67.9 million. As of September 30, 2024, two loans designated as non-performing and put on cost recovery status were determined to have a combined $28.7 million specific allowance for credit losses. During the first quarter of 2024, one multifamily loan which was designated as non-performing as of December 31, 2023, was assumed by the Company through a deed-in-lieu of foreclosure, and subsequently sold (see "Note 3 - Commercial Mortgage Loans").

Current wording

As of March 31, 2025, we had three loans (one secured by an office property and two secured by multifamily properties), designated as non-performing status with a total amortized cost of $94.0 million. As of March 31, 2025, one of the non-performing loans, collateralized by an office property, continues to be placed on cost recovery status with a specific allowance for credit losses of $0.6 million.

Previous wording

As of September 30, 2024 and December 31, 2023 our commercial mortgage loans, held for investment, excluding commercial mortgage loans on non-performing status, had a weighted average coupon of 8.5% and 9.2%, respectively, and a weighted average remaining contractual maturity life of 1.0 year and 0.9 years, respectively.

Current wording

As of March 31, 2025 and December 31, 2024 our commercial mortgage loans, held for investment, excluding commercial mortgage loans on non-performing status, had a weighted average coupon of 7.9% and 8.0%, respectively, and a weighted average remaining contractual maturity life of 1.1 years and 1.1 years, respectively.

Previous wording

The following charts show the par value by contractual maturity year for the commercial mortgage loans, held for investment (excluding commercial mortgage loans in principal default) in our portfolio as of September 30, 2024 and December 31, 2023:

Current wording

The following charts show the par value by contractual maturity year for the commercial mortgage loans, held for investment in our portfolio as of March 31, 2025 and December 31, 2024:

Previous wording

•The commercial real estate conduit business operated through the Company's TRS, which is focused on generating risk-adjusted returns by originating and subsequently selling fixed-rate commercial real estate loans into the CMBS securitization market at a profit. The TRS may also hold certain mezzanine loans that don't qualify as good REIT assets due to any potential loss from foreclosure.

Current wording

•The commercial real estate conduit business, operated through the Company's TRS, is focused on generating risk-adjusted returns by originating and subsequently selling fixed-rate commercial real estate loans into the CMBS securitization market at a profit. The TRS may also hold certain mezzanine loans that don't qualify as good REIT assets due to any potential loss from foreclosure.

Previous wording

Interest income for the three months ended September 30, 2024 and 2023 totaled $134.1 million and $137.0 million, respectively, a decrease of $2.9 million. This decrease was primarily due to an increase in non-performing loans, which averaged $189.8 million in principal during the three months ended September 30, 2024 partially offset by an increase in the average carrying value of our real estate debt. As of September 30, 2024, our portfolio consisted of (i) 157 commercial mortgage loans, held for investment and (ii) ten real estate securities, available for sale, measured at fair value. As of September 30, 2023, our portfolio consisted of (i) 145 commercial mortgage loans, held for investment, (ii) one commercial mortgage loan, held for sale, measured at fair value and (iii) six real estate securities, available for sale, measured at fair value and (iv) ARMs (as defined below).

Current wording

daily average SOFR and SOFR equivalent rates coupled with a decrease of $177.9 million in the average carrying balance of our real estate debt. As of March 31, 2025, our portfolio consisted of (i) 152 commercial mortgage loans, held for investment (ii) one commercial mortgage loan, held for sale, measured at fair value and (iii) ten real estate securities, available for sale, measured at fair value. As of March 31, 2024, our portfolio consisted of (i) 145 commercial mortgage loans, held for investment, (ii) one commercial mortgage loan, held for sale, measured at fair value and (iii) seven real estate securities, available for sale, measured at fair value.

Previous wording

For the three months ended September 30, 2024 and 2023, revenue from real estate owned was $5.4 million and $3.3 million, respectively. The $2.1 million increase was primarily the result of rental income from obtaining possession of additional multifamily properties brought on as real estate owned for the three months ended September 30, 2024.

Current wording

For the three months ended March 31, 2025 and 2024, revenue from real estate owned was $6.8 million and $4.7 million, respectively. The $2.1 million increase was primarily the result of rental income from obtaining possession of additional multifamily and office properties brought on as real estate owned for the three months ended March 31, 2025.

Previous wording

For the three months ended September 30, 2024, general benefit for credit losses was $0.8 million compared to a general benefit for credit loss of $0.1 million for the three months ended June 30, 2024. General benefit for the three months ended September 30, 2024 was attributable to the portfolio turnover of older vintage loans with new originated loans.

Current wording

For the three months ended March 31, 2025, general benefit for credit losses was $1.6 million compared to a general provision of $2.1 million for the three months ended March 31, 2024. The $3.7 million decrease in general reserve was primarily due to the portfolio turnover of older vintage loans with newly originated loans.

Previous wording

For the three months ended September 30, 2024, specific provision for credit losses was $0.5 million compared to a specific benefit of $0.4 million for the three months ended September 30, 2023. For the three months ended September 30, 2024, the increase in specific reserve was primarily related to foreclosures on multifamily properties located in Oklahoma and North Carolina. For the three months ended September 30, 2023, the increase in specific benefit was related to recoveries recorded due to a deed-in-lieu of foreclosure of an office property located in Oregon.

Current wording

For the three months ended March 31, 2025, specific benefit for credit losses was $0.3 million compared to a specific provision for credit losses of $0.7 million for the three months ended March 31, 2024. For the three months ended March 31, 2025, the decrease in specific reserve was primarily related to a partial paydown on our non-performing loan secured by an office property in Georgia. For the three months ended March 31, 2024, the increase in specific reserve was related to a non-performing loan secured by two multifamily properties located in North Carolina.

Previous wording

Realized gain on real estate securities, available for sale for the three months ended September 30, 2024 of $0.1 million was related to the sale of two CMBS bonds. Realized loss on real estate securities, available for sale for the three months ended September 30, 2023 of $0.5 million was primarily related to the sale of six CMBS bonds.

Current wording

Realized Gain/(Loss) on Real Estate Securities, Available for Sale

Previous wording

Realized gain on real estate securities, available for sale for the three months ended September 30, 2024 of $0.1 million was related to the sale of two CMBS bonds. The Company did not realize a gain or loss on real estate securities, available for sale for the three months ended June 30, 2024.

Current wording

The Company did not realize a gain or loss on real estate securities, available for sale for the three months ended March 31, 2025. Realized gain on real estate securities, available for sale for the three months ended March 31, 2024 of $0.1 million was primarily related to the sale of three CRE CLO bonds.

Previous wording

The Company did not have any commercial mortgage loans, held for sale, measured at fair value held in an unrealized gain or loss position as of September 30, 2024. For the nine months ended September 30, 2023 unrealized gain on commercial mortgage loans, held for sale, measured at fair value was $44.0 thousand primarily related to the reversal of unrealized gain/loss on sales of commercial real estate loans into the CMBS securitization market.

Current wording

The Company did not recognize an unrealized gain or loss on commercial mortgage loans, held for sale, measured at fair value for the three months ended March 31, 2025. For the three months ended March 31, 2024, unrealized gain on commercial mortgage loans, held for sale, measured at fair value, was $0.5 million which was attributable to the change in market value of these loans.

Previous wording

Realized Gain/(Loss) on Extinguishment of Debt

Current wording

Gain/(Loss) on Other Real Estate Investments

Previous wording

Loss on other real estate investments for the three months ended September 30, 2024 was $2.2 million primarily due to write offs related to the Walgreens Portfolio coupled with the onboarding of real estate owned, held for sale, multifamily properties. This is compared to a loss of $4.1 million for the three months ended September 30, 2023 that was primarily due to an impairment on the Walgreens Portfolio.

Current wording

Loss on other real estate investments for the three months ended March 31, 2025 was $2.2 million primarily due to the onboarding of real estate owned, held for sale, multifamily and office properties coupled with losses on the sale of three, held for sale, multifamily properties and one, held for sale, retail property from our Walgreens Portfolio. This is compared to a gain of $6.0 thousand for the three months ended March 31, 2024 that was related to the sale of one real estate owned, held for sale property located in San Antonio, TX.

Previous wording

Net result from derivative transactions for the three months ended September 30, 2024 of a $1.3 million loss was composed of a realized loss of $1.6 million primarily related to the termination and settlement of credit default swaps and treasury note futures partially offset by an unrealized gain of $0.3 million. This is compared to a net loss on our derivative portfolio of $0.1 million composed of a realized gain of $0.1 million primarily due to the termination and settlement of our interest rate swap positions offset by an unrealized loss of $0.2 million for three months ended September 30, 2023.

Current wording

Net result from derivative transactions for the three months ended March 31, 2025 of a $0.2 million loss was composed primarily of a $1.1 million unrealized loss on mark to market on credit default swaps, treasury note futures, and options, partially offset by a realized gain of $0.9 million due to the termination and settlement of treasury note futures. This is compared to a net gain on our derivative portfolio of $0.2 million composed of a realized gain of $0.3 million primarily related to the termination and settlement of credit default swaps and treasury note futures offset by an unrealized loss of $0.1 million for three months ended March 31, 2024.

Previous wording

Net loss attributable to non-controlling interest in our consolidated joint ventures for the three months ended September 30, 2024 and June 30, 2024 was $1.4 million and $1.6 million, respectively.

Current wording

For the three months ended March 31, 2025 and December 31, 2024, general benefit for credit losses was $1.6 million and $1.6 million, respectively. General benefit for the three months ended March 31, 2025 and December 31, 2024, respectively, is primarily due to the portfolio turnover of older vintage loans with newly originated loans.

Previous wording

Net result from derivative transactions for the three months ended September 30, 2024 of a $1.3 million loss was composed of a realized loss of $1.6 million primarily related to the termination and settlement of credit default swaps and treasury note futures partially offset by an unrealized gain of $0.3 million. Net result from derivative transactions for the three months ended June 30, 2024 of a $0.2 million loss composed of a realized gain of $22.0 thousand primarily due to the termination and settlement of credit default swaps and treasury note futures offset by an unrealized loss of $0.2 million.

Current wording

Net result from derivative transactions for the three months ended March 31, 2025 of a $0.2 million loss was composed primarily of a $1.1 million unrealized loss on mark to market on credit default swaps, treasury note futures, and options, partially offset by a realized gain of $0.9 million due to the termination and settlement of treasury note futures. This is compared to a net gain on our derivative portfolio of $1.0 million composed primarily of unrealized gains on mark to market on credit default swaps, treasury note futures, and options for the three months ended December 31, 2024.

Previous wording

The increase in operating expense was primarily related to (i) an increase in administrative service expenses due to an increase in personnel time spent on securitizations and deal workout and (ii) an increase in REO operating expenses due to the onboarding of additional properties during the three months ended September 30, 2024 compared to three months ended June 30, 2024, offset by (iii) a decrease in incentive fees due to the decrease in projected income for the remainder of 2024 as the market adjusts for rate decreases.

Current wording

The increase in operating expense was primarily related to (i) an increase in professional fees due to time spent on the Newpoint acquisition during the three months ended March 31, 2025.

Previous wording

(1)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 debt-to-equity ratio was 0.1x and 0.2x as of September 30, 2024 and December 31, 2023, respectively.

Current wording

(1)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 debt-to-equity ratio was 0.3x and 0.3x as of March 31, 2025 and December 31, 2024, respectively.

Previous wording

(2) 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, to (ii) total equity and total redeemable convertible preferred stock, at period end. Recourse leverage ratio was 0.3x and 0.4x as of September 30, 2024 and December 31, 2023, respectively.

Current wording

(2) 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, to (ii) total equity and total redeemable convertible preferred stock, at period end. Recourse leverage ratio was 0.5x and 0.4x as of March 31, 2025 and December 31, 2024, respectively.

Previous wording

$200 million of shares of our common stock from time to time. We have not sold any shares of common stock under the ATM to date. We also may access liquidity through our dividend reinvestment and direct stock purchase plan ("DRIP").

Current wording

$200 million of shares of our common stock from time to time. We have not sold any shares of common stock under the ATM to date. We also may access liquidity through our dividend reinvestment and stock purchase plan (“DRIP”), which includes a direct stock purchase option.

Previous wording

As of September 30, 2024, the Company had $137.6 million of reinvestment capital available across all outstanding collateralized loan obligations. The following table shows the par value outstanding for each CLO and the respective reinvestment end dates (dollars in millions):

Current wording

As of March 31, 2025, the Company had $34.1 million of reinvestment capital available across all outstanding collateralized loan obligations. The following table shows the par value outstanding for each CLO and the respective reinvestment end dates (dollars in millions):

Previous wording

The Repo and Revolving Credit Facilities are financing sources through which the Company may pledge one or more mortgage loans to the financing entity in exchange for funds at an advance rate that typically ranges between 60% to 75% of the principal amount of the mortgage loan being pledged.

Current wording

The Repo and Revolving Credit Facilities are financing sources through which the Company may pledge one or more mortgage loans to the financing entity in exchange for funds typically at an advance rate that typically range between 60% to 75% of the principal amount of the mortgage loan being pledged.

Previous wording

The following tables summarize our Repo and Revolving Credit Facilities and our master repurchase agreements ("MRAs") for the nine months ended September 30, 2024, 2023, and 2022, respectively (dollars in thousands):

Current wording

The following tables summarize our Repo and Revolving Credit Facilities and our master repurchase agreements ("MRAs") for the three months ended March 31, 2025, 2024, and 2023, respectively (dollars in thousands):

Previous wording

During the nine months ended September 30, 2024, the maximum average outstanding balance was $1.1 billion, of which $0.8 billion was related to repurchase agreements on our commercial mortgage loans and $0.3 billion for repurchase agreements on our real estate securities.

Current wording

During the three months ended March 31, 2023, the maximum average outstanding balance was $1.1 billion, of which $0.7 billion was related to repurchase agreements on our commercial mortgage loans and $0.4 billion for repurchase agreements on our real estate securities.

Previous wording

In September 2024, the Company's board of directors declared the following: (i) a third quarter 2024 dividend of $0.355 per share on the Company's common stock (equivalent to $1.42 per annum), (ii) a third quarter 2024 dividend of $106.216 per share on the Company’s Series H Preferred Stock, and (iii) a third quarter 2024 dividend of $0.46875 per share on the Company’s Series E Preferred Stock, all of which were paid in October 2024 to holders of record as of September 30, 2024.

Current wording

In March 2025, the Company's board of directors declared the following: (i) a first quarter 2025 dividend of $0.355 per share on the Company's common stock (equivalent to $1.42 per annum), (ii) a first quarter 2025 dividend of $106.216 per share on the Company’s Series H Preferred Stock, and (iii) a first quarter 2025 dividend of $0.46875 per share on the Company’s Series E Preferred Stock, all of which were paid in April 2025 to holders of record as of March 31, 2025.

Previous wording

Under the Company’s DRIP, the Company may elect to supply shares for reinvestment via newly issued shares of common stock or via shares of common stock purchased by the DRIP administrator on the open market. During the nine months ended September 30, 2024 and 2023, 0 and 768 shares were newly issued, and 125,350 and 169,354 shares of common stock were purchased, respectively, by the administrator under the dividend reinvestment component of the DRIP.

Current wording

Under the DRIP, the Company may elect to supply shares for reinvestment via newly issued shares of common stock or via shares of common stock purchased by the DRIP administrator on the open market. During the three months ended March 31, 2025 and 2024, no shares were newly issued, and 38,012 and 40,735 shares of common stock were purchased, respectively, by the administrator under the dividend reinvestment component of the DRIP.

Previous wording

During the nine months ended September 30, 2024 and 2023, the Company paid an aggregate of $88.4 million and $87.8 million, respectively, of common stock distributions.

Current wording

During the three months ended March 31, 2025 and 2024, the Company paid an aggregate of $29.5 million and $29.4 million, respectively, of common stock distributions.

Previous wording

The following table sets forth changes in cash, cash equivalents and restricted cash for the nine months ended September 30, 2024 and 2023:

Current wording

The following table sets forth changes in cash, cash equivalents and restricted cash for the three months ended March 31, 2025 and 2024:

Previous wording

During the nine months ended September 30, 2024, cash inflow of $112.3 million from operating activities were primarily driven by cash inflows from (i) net income of $62.2 million and (ii) net cash inflow of $13.1 million related to originations and sales of commercial mortgage loans, held for sale, measured at fair value and (iii) certain non-cash income.

Current wording

During the three months ended March 31, 2025, cash inflow of $116.2 million from operating activities were primarily driven by (i) net income of $23.7 million and (ii) $87.3 million related to originations, sales or repayment of commercial mortgage loans, held for sale, measured at fair value and (iii) certain non-cash income.

Previous wording

During the nine months ended September 30, 2024, cash outflow of $420.4 million from investing activities were primarily driven by (i) the origination and purchase of $1.4 billion of commercial mortgage loans, held for investment and (ii) the purchase of real estate securities for $57.1 million. Outflows were partially offset by (i) proceeds from principal repayments of $834.7 million received on commercial mortgage loans, held for investment, (ii) proceeds received from the sale of real estate securities of $90.3 million, (iii) proceeds from the sale of real estate owned, held for sale assets of $110.1 million and (iv) proceeds from sale of commercial mortgage loans, held for investment of $26.0 million.

Current wording

During the three months ended March 31, 2025, cash inflow of $286.9 million from investing activities were primarily driven by (i) proceeds from principal repayments of $396.9 million received on commercial mortgage loans, held for investment, (ii) proceeds received from the sale or paydown of real estate securities of $35.4 million and (iii) proceeds from the sale of real estate owned, held for sale assets of $28.8 million. Inflows were partially offset by the origination and purchase of $171.9 million of commercial mortgage loans, held for investment.

Previous wording

During the nine months ended September 30, 2023, cash inflow of $554.8 million from investing activities were primarily driven by (i) proceeds from principal repayments on commercial mortgage loans, held for investment of $921.5 million, (ii) proceeds from the sale of real estate securities of $404.6 million, (iii) principal collateral received on mortgage investments of $17.7 million, and (iv) proceeds from sale of other real estate investments of $39.8 million. Inflows were offset by (i) originations and purchases of $668.0 million of commercial mortgage loans, held for investment and (ii) $160.3 million for the purchase of real estate securities, available for sale.

Current wording

During the three months ended March 31, 2024, cash outflows of $139.3 million from investing activities were primarily driven by (i) originations and purchases of $488.3 million of commercial mortgage loans, held for investment and (ii) the purchase of real estate securities, available for sale for $15.7 million. Outflows were offset by (i) proceeds from principal repayments on commercial mortgage loans, held for investment of $280.3 million, (ii) proceeds from sale or paydown of real estate securities of $41.8 million, and (iii) proceeds from sale of real estate owned, held for sale assets of $42.2 million.

Previous wording

During the nine months ended September 30, 2023, cash outflow of $468.7 million from financing activities were primarily driven by (i) net repayments from borrowings on repurchase agreements and revolving credit facilities for commercial mortgage loans of $431.5 million, (ii) net repayments on repurchase agreements for real estate securities of $200.0 million, (iii) repayments on unsecured debt of $13.4 million, (iv) net repayments on other financings of $52.6 million and (v) $108.1 million of distributions paid to shareholders. Outflows were partially offset by net borrowings on collateralized loan obligations of $357.6 million.

Current wording

During the three months ended March 31, 2025, cash outflow of $375.9 million from financing activities were primarily driven by (i) repayments from borrowings on collateralized loan obligations of $404.0 million, (ii) net repayments on repurchase agreements for real estate securities of $30.4 million and (iii) $36.2 million of distributions paid to shareholders. Outflows were partially offset by (i) net borrowings on repurchase agreements and revolving credit facilities for commercial mortgage loans of $99.5 million.

Previous wording

During the nine months ended September 30, 2024, cash inflow of $318.3 million from financing activities were primarily driven by (i) net borrowings on collateralized loan obligations of $531.0 million and (ii) net borrowings on repurchase agreements for real estate securities of $67.2 million. Inflows were partially offset by (i) net repayments on repurchase agreements and revolving credit facilities for commercial mortgage loans of $115.9 million, (ii) repayments on our other financings of $23.7 million, (iii) $108.7 million of distributions paid to shareholders, (iv) distributions paid to noncontrolling interest of $16.2 million and (v) payments of deferred financing costs of $9.1 million.

Current wording

During the three months ended March 31, 2024, cash inflow of $30.8 million from financing activities were primarily driven by (i) net borrowings on repurchase agreements and revolving credit facilities for commercial mortgage loans of $112.8 million and (ii) net borrowings on repurchase agreements for real estate securities of $20.7 million. Inflows were partially offset by (i) net repayments from borrowings on collateralized loan obligations of $38.7 million, (ii) repayments on other financings of $23.7 million and (iii) $36.1 million of distributions paid to shareholders.

Previous wording

In addition to its cash requirements, the Company pays a quarterly dividend and has an existing share repurchase authorization. As of September 30, 2024, the Company’s quarterly cash dividend was $0.355 per share of common stock (which was paid on an as-converted basis on the Company’s shares of Series H Preferred Stock), and $0.46875 per share on the Company’s shares of Series E Preferred Stock. The payment of future dividends is subject to declaration by the board of directors. The Company’s board of directors also has authorized a $65.0 million share repurchase program, of which $31.1 million remained available as of September 30, 2024. The authorization does not obligate the Company to acquire any specific number of shares. The Company did not repurchase any shares during the three months ended September 30, 2024.

Current wording

In addition to its cash requirements, the Company pays a quarterly dividend and has an existing share repurchase authorization. As of March 31, 2025, the Company’s quarterly cash dividend was $0.355 per share of common stock (which was paid on an as-converted basis on the Company’s shares of Series H Preferred Stock), and $0.46875 per share on the Company’s shares of Series E Preferred Stock. The payment of future dividends is subject to declaration by the board of directors. The Company’s board of directors also has authorized a $65.0 million share repurchase program, of which $31.1 million remained available as of March 31, 2025. The authorization does not obligate the Company to acquire any specific number of shares.

Previous wording

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, and (vii) certain other non-cash items. Further, Distributable Earnings to Common, a non-GAAP measure, presents Distributable Earnings net of (i) perpetual preferred stock dividend payments and (ii) non-controlling interests in joint ventures.

Current wording

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, and (vii) certain other non-cash items. 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.

Previous wording

As noted in (ii) 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.

Current wording

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.