Franklin BSP Realty Trust, Inc.
For the period ended Sep 30, 2025. Filed Nov 5, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 5, 2025
FBRT$6.20-1.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-07-30.
0001562528-25-000030
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-05.
0001562528-25-000041
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 228 previous paragraphs and 237 current paragraphs.
141 unchanged; 64 reworded; 29 added; 20 removed; 3 previous and 3 current paragraphs rearranged.
Tables are not compared: 21 previous and 22 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (29)
Current report
•our ability to hire and retain key personnel;
Current report
On July 1, 2025, through a wholly owned subsidiary, we acquired NewPoint Holdings JV LLC (“NewPoint”), which now comprises our Agency Business unit. Through this unit, we originate, sell and service a range of multifamily finance products under programs offered by government-sponsored enterprises (“GSEs”), such as the Federal National Mortgage Association (“Fannie Mae”) and Federal Home Loan Mortgage Corporation (“Freddie Mac”) and by government agencies (“Agencies”), such as the Government National Mortgage Association (“Ginnie Mae”) and the Federal Housing Administration, a division of the U.S. Department of Housing and Urban Development (together with Ginnie Mae, “HUD”). We retain the servicing rights and asset management responsibilities on substantially all loans we originate and sell under the GSE and HUD programs. We are an approved Fannie Mae Delegated Underwriting and Servicing (“DUS”) lender, a Freddie Mac Program Plus Seller/Servicer, a Multifamily Accelerated Processing (“MAP”) and Section 232 LEAN lender for HUD and a Ginnie Mae issuer. Additionally, the Company services external portfolios of commercial real estate financing products.
Current report
The decrease in book value per share during the three months ended September 30, 2025 was primarily driven by (i) dividends paid on common stock in excess of net income, and (ii) dilution associated with the issuance of Class A Units in connection with the NewPoint acquisition.
Current report
(2) Fully-converted book value per share assumed conversion of the Company's Series H preferred stock, Class A Units and the vesting of the Company's unvested RSUs.
Current report
Accounting for business combinations requires us to recognize, separately from goodwill, the assets acquired and the liabilities assumed ("net assets") at their acquisition date fair values. Goodwill is measured as the excess of consideration transferred over the net assets acquired at their respective fair values as of the acquisition date. The estimated fair values require significant estimates and assumptions including, but not limited to, estimating projected revenues and developing appropriate discount rates. While we use our best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date, our estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the assets acquired and liabilities assumed with the corresponding adjustment to goodwill, based on new information obtained about the facts and circumstances that existed as of the acquisition date. Upon the conclusion of the measurement period or final determination of the values of net assets acquired, whichever comes first, any subsequent adjustments are recorded to our consolidated financial statements. Refer to Note 3 - Business Combinations for critical accounting estimates around the Company's purchase price accounting allocations.
Current report
As of September 30, 2025 the Company had a total servicing portfolio consisting of 1,575 loans with an unpaid principal balance of $47.3 billion. As of September 30, 2025, the Company owned MSRs of $208.6 million, which consisted of 1,010 loans with an unpaid principal balance of $20.4 billion.
Current report
(2) Interest rates and effective yields represent weighted averages.
Current report
•The agency business focuses on originating, selling, and servicing loans under programs offered by GSE’s and Agencies, such as Fannie Mae, Freddie Mac, Ginnie Mae, and HUD. Additionally, the business services external portfolios of commercial real estate financing products.
Current report
Comparison of the Nine Months Ended September 30, 2025 to the Nine Months Ended September 30, 2024
Current report
Gain/(Loss) on Sales, including fee-based services, net
Current report
Gain on sales, including fee-based services, net for the nine months ended September 30, 2025 and 2024 was $34.7 million and $13.1 million, respectively. The increase was primarily due to agency loans originated and sold from our Agency segment, which we acquired though the NewPoint acquisition on July 1, 2025.
Current report
Mortgage Servicing Rights
Current report
Income from mortgage servicing rights for the nine months ended September 30, 2025 was $19.7 million which related to the fair value on originated MSR's loans rate locked under programs with Fannie Mae, Freddie Mac and HUD. The Company did not have income from mortgage servicing rights for the nine months ended September 30, 2024.
Current report
Servicing Revenue
Current report
Servicing revenue for the nine months ended September 30, 2025 was $3.6 million which related to $11.7 million of servicing fee income and $7.9 million in interest on borrower escrows and reserves. This is offset by $15.9 million in reductions to the MSR for amortization, payoffs and impairment. The Company did not have servicing revenue for the nine months ended September 30, 2024.
Current report
Gain/(Loss) on Derivatives
Current report
Benefit for credit losses was $4.0 million during the nine months ended September 30, 2025 compared to a provision of $34.8 million during the nine months ended September 30, 2024.
Current report
For the nine months ended September 30, 2025, allowance for loss sharing decreased by $1.0 million which related to a $2.7 million decrease to the general CECL reserve due to an increased overall economic outlook. This was offset by a $1.7 million increase in the specific loan reserve due to new at risk loans added to the reserve.
Current report
(Gain)/loss on sales, including fee-based services, net
Current report
Gain on sales, including fee-based services, net for the three months ended September 30, 2025 and June 30, 2025 was $29.4 million and $0.3 million, respectively. The $29.1 million increase was primarily due to agency loans originated and sold from our Agency segment, which we acquired though the NewPoint acquisition on July 1, 2025.
Current report
Mortgage servicing rights
Current report
Income for mortgage servicing rights for the three months ended September 30, 2025 was $19.7 million which related to the fair value on originated MSR's loans rate locked under programs with Fannie Mae, Freddie Mac and HUD. The Company did not have income from mortgage servicing rights for the three months ended June 30, 2025.
Current report
Servicing Revenue
Current report
Servicing revenue for the three months ended September 30, 2025 was $3.6 million which related to $11.7 million of servicing fee income and $7.9 million in interest on borrower escrows and reserves. This is offset by $15.9 million in reductions to the MSR for amortization, payoffs and impairment. The Company did not have servicing revenue for the three months ended June 30, 2025.
Current report
(Gain)/Loss on derivatives
Current report
For the three months ended September 30, 2025 and June 30, 2025, revenue from real estate owned was $7.2 million and $8.3 million, respectively. The $1.1 million decrease was primarily related to the sales of three multifamily assets for the three months ended September 30, 2025.
Current report
For the three months ended September 30, 2025, allowance for loss sharing decreased by $1.0 million which related to a $2.7 million decrease to the general CECL reserve due to an increased overall economic outlook. This was offset by a $1.7 million increase in the specific loan reserve due to new at risk loans added to the reserve.
Current report
For the three months ended September 30, 2025 and June 30, 2025, income from equity method investments was $6.0 thousand and $0.2 million, respectively. The decrease was primarily related to changes in the Company's net allocated percentage of income generated by our equity method investments.
Current report
During the nine months ended September 30, 2023, the maximum average outstanding balance was $1.2 billion, of which $0.9 billion was related to repurchase agreements on our commercial mortgage loans and $0.3 billion for repurchase agreements on our real estate securities.
Removed paragraphs (20)
Previous report
In addition, following the NewPoint acquisition, which closed on July 1, 2025, the Company will also have an agency business which focuses on originating and servicing agency mortgage loans.
Previous report
Comparison of the Six Months Ended June 30, 2025 to the Six Months Ended June 30, 2024
Previous report
Interest Income
Previous report
Revenue from Real Estate Owned
Previous report
Benefit for credit losses was $3.4 million during the six months ended June 30, 2025 compared to a provision of $35.1 million during the six months ended June 30, 2024.
Previous report
Realized Gain/(Loss) on Sale of Commercial Mortgage Loans, Held for Sale, Measured at Fair Value
Previous report
Realized gain on commercial mortgage loans, held for sale, measured at fair value for the six months ended June 30, 2025 of $5.3 million was related to the sale of $114.4 million in principal amount of commercial real estate loans into the CMBS securitization market resulting in proceeds of $119.7 million. Realized gain on commercial mortgage loans, held for sale, measured at fair value for the six months ended June 30, 2024 of $6.9 million was related to the sale of $139.6 million in principal amount of commercial real estate loans into the CMBS securitization market resulting in proceeds of $146.5 million.
Previous report
Unrealized Gain/(Loss) on Commercial Mortgage Loans, Held for Sale, Measured at Fair Value
Previous report
The Company did not recognize an unrealized gain or loss on commercial mortgage loans, held for sale, measured at fair value for the six months ended June 30, 2025. Unrealized gain on commercial mortgage loans, held for sale, measured at fair value for the six months ended June 30, 2024 of $0.6 million was primarily related to the reversal of unrealized loss on sales of commercial real estate loans into the CMBS securitization market.
Previous report
Net Result from Derivative Transactions
Previous report
Interest Income
Previous report
Revenue from Real Estate Owned
Previous report
For the three months ended June 30, 2025 and March 31, 2025, revenue from real estate owned was $8.3 million and $6.8 million, respectively. The $1.5 million increase was primarily the result of rental income from obtaining possession of an additional multifamily property brought on as real estate owned during the quarter, coupled with an increase of rental income from an office property we obtained possession of towards the end of the prior quarter.
Previous report
Realized Gain/(Loss) on Sale of Commercial Mortgage Loans, Held for Sale, Measured at Fair Value
Previous report
Realized gain on commercial mortgage loans, held for sale, measured at fair value for the three months ended June 30, 2025 of $0.3 million was related to the sale of $8.0 million in principal amount of commercial real estate loans into the CMBS securitization market resulting in proceeds of $8.3 million. Realized gain on commercial mortgage loans, held for sale, measured at fair value for the three months ended March 31, 2025 of $5.0 million was related to the sale of $106.5 million in principal amount of commercial real estate loans into the CMBS securitization market resulting in proceeds of $111.5 million.
Previous report
Net Result from Derivative Transactions
Previous report
Income from equity method investments for the three months ended June 30, 2025 was $0.2 million related to the Company's allocated percentage of quarterly income for a mixed use property located in New Jersey. The Company did not recognize income from equity method investments during the three months ended March 31, 2025.
Previous report
The Company has determined to present the results of operations for the most recent quarter compared to the immediately preceding sequential quarter, along with the current year-to-date results compared to prior year-to-date results, for purposes of providing an analysis of material changes in our results of operations. The Company no longer presents the results of operations for the most recent quarter compared to the prior year quarter as the Company does not believe it provides investors incrementally useful information.
Previous report
(2)On July 1, 2025 the Company closed on the acquisition of NewPoint Holdings JV LLC.
Previous report
During the six months ended June 30, 2025, the maximum average outstanding balance was $716.9 million, of which $578.3 million was related to repurchase agreements on our commercial mortgage loans and $138.6 million for repurchase agreements on our real estate securities.
Reworded paragraphs (64)
Previous wording
The Company is a Maryland corporation and has made tax elections to be treated as a real estate investment trust ("REIT") for U.S. federal income tax purposes since 2013. The Company, through one or more subsidiaries which are each treated as a taxable REIT subsidiary ("TRS"), is indirectly subject to U.S. federal, state and local income taxes. We commenced business in May 2013. We primarily originate, acquire and manage a diversified portfolio of commercial real estate debt investments secured by properties located within and outside of the United States. Substantially all of our business is conducted through the OP, a Delaware limited partnership. We are the sole general partner and directly or indirectly held all of the units of limited partner interests in the OP as of June 30, 2025.
Current wording
The Company is a Maryland corporation and has made tax elections to be treated as a real estate investment trust ("REIT") for U.S. federal income tax purposes since 2013. Substantially all of our business is conducted through the OP, a Delaware limited liability company. We are the managing member of the OP and directly or indirectly held 91% of the common units of membership interests in the OP as of September 30, 2025.
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 CMBS securitization transactions. Historically this business has focused primarily on CMBS, CMBS bonds, CDOs and other securities. In addition, following its acquisition of NewPoint in July 2025, the Company originates and services agency mortgage loans. 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.
Current wording
The Company’s operations are organized into two business units: (i) Commercial Real Estate Financing, and (ii) Agency Business. The Commercial Real Estate Financing unit primarily focuses on originating, acquiring and asset managing commercial real estate debt investments, including first mortgage loans, subordinated mortgage loans, mezzanine loans and participations in such loans. Secondarily, this unit also invests in and asset manages real estate securities, with a historical focus on commercial mortgage-backed securities ("CMBS"), commercial real estate collateralized loan obligation bonds and single asset single borrower bonds (collectively "CMBS bonds"), collateralized debt obligations ("CDOs") and other securities. Through this unit the Company also originates conduit loans which the Company intends to sell through its TRS into CMBS securitization transactions, and owns real estate that was either acquired by the Company through foreclosure, deed-in-lieu of foreclosure or that was purchased for investment.
Previous wording
Prior to our acquisition of NewPoint on July 1, 2025 (as discussed below), the Company had no employees. As of July 28, 2025, we have 224 employees, all of which are employees of NewPoint. We are managed by the Advisor pursuant to an advisory agreement, as amended on August 18, 2021 (the "Advisory Agreement") with the Advisor. The Advisor manages our affairs on a day-to-day basis. The Advisor receives compensation and fees for services related to the investment and management of our assets and our operations.
Current wording
We are managed by the Advisor pursuant to an advisory agreement, as amended on August 18, 2021 (the "Advisory Agreement"). The Advisor manages our affairs on a day-to-day basis. The Advisor receives compensation and fees for services related to the investment and management of our assets and our operations.
Previous wording
(3) Book value per share as of June 30, 2025 and December 31, 2024, excluding the impact for accumulated depreciation and amortization of real property of $16.0 million and $13.8 million, respectively, was $15.00 and $15.35.
Current wording
(3) Book value per share as of September 30, 2025 and December 31, 2024, excluding the impact for accumulated depreciation and amortization of real property of $16.4 million and $13.8 million, respectively, was $14.46 and $15.35.
Previous wording
During the six months ended June 30, 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.
Current wording
During the nine months ended September 30, 2025, there were no other 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 discussed in “Note 16 - Subsequent Events”, on July 1, 2025, we completed the acquisition of NewPoint. NewPoint is a commercial real estate finance company focused on originating and servicing agency mortgage loans. NewPoint is a multifamily originator and servicer and is approved by four government sponsored entities (Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, Government National Mortgage Association and U.S. Department of Housing and Urban Development). As of the closing date of the acquisition, NewPoint’s mortgage servicing rights ("MSRs") will be held as an asset on our consolidated balance sheet. As of June 30, 2025, and, as of the closing date of the acquisition, NewPoint had a total servicing portfolio of $55.4 billion. We expect that the NewPoint business will be complimentary to our historical business and will offer our traditional bridge loan borrowers the opportunity to refinance our bridge loans with agency mortgage loans.
Current wording
On July 1, 2025, we completed the acquisition of NewPoint. NewPoint is a commercial real estate finance company focused on originating and servicing agency mortgage loans. NewPoint is a multifamily originator and servicer and is approved by four government sponsored entities (Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, Government National Mortgage Association and U.S. Department of Housing and Urban Development). NewPoint’s mortgage servicing rights ("MSRs") are held as an asset on our consolidated balance sheet. As of September 30, 2025, and as of the closing date of the acquisition, NewPoint had a total servicing portfolio of $47.3 billion and $55.4 billion, respectively. We expect that the NewPoint business will be complimentary to our historical business and will offer our traditional bridge loan borrowers the opportunity to refinance our bridge loans with agency mortgage loans.
Previous wording
The NewPoint acquisition will not have any impact on our arrangements with the Advisor, and our officers, all employees of the Advisor, will oversee and manage the officers and employees of NewPoint.
Current wording
The NewPoint acquisition does not have any impact on our arrangements with the Advisor. The President and the Chief Financial Officer / Chief Operating Officer of the Company oversee and manage the officers and employees of NewPoint serving in their respective roles as CEO and COO of that business.
Previous wording
As a result of the NewPoint acquisition, starting in the third quarter of 2025, we expect to treat the associated agency mortgage business, which focuses on originating and servicing agency mortgage loans, as a new business segment. We expect that the agency business will have a number of impacts on our future consolidated financial statements, including the addition of MSRs to our consolidated balance sheet, the addition of servicing income and gains on sales of originated agency mortgages, and the addition of employee expense. These changes may make it difficult to compare our financial results in future periods with our financial results from periods that preceded the acquisition. In addition, gains on sale from originated agency mortgages will largely be driven by origination volumes in the reported period. As a result, the associated gains on sale may vary significantly quarter to quarter, which may make it difficult to compare future quarter to quarter financial results.
Current wording
As a result of the NewPoint acquisition, we treat the associated agency mortgage business, which focuses on originating, selling and servicing agency mortgage loans, as a new business segment. The agency business has and will continue to have a number of impacts on our future consolidated financial statements, including the addition of MSRs to our consolidated balance sheet, the addition of servicing income and gains on sales of originated agency mortgages, and the addition of employee expense. These changes may make it difficult to compare our financial results in future periods with our financial results from periods that preceded the acquisition. In addition, gains on sale from originated agency mortgages will largely be driven by origination volumes in the reported period. As a result, the associated gains on sale may vary significantly quarter to quarter, which may make it difficult to compare future quarter to quarter financial results.
Previous wording
With respect to liquidity, we expect the agency business will continue to utilize warehouse agreements as the primary form of financing. The warehouse agreements used for the agency business are expected to have significantly higher advance rates than the repurchase and warehouse agreements we use for our commercial mortgage origination business. We also expect that the MSRs we will hold on our balance sheet will increase our ability to expand our revolving credit facilities.
Current wording
With respect to liquidity, we expect the agency business will continue to utilize warehouse agreements as the primary form of financing. The warehouse agreements used for the agency business generally have 100% financing. We also expect that the MSRs we hold on our balance sheet will increase our ability to expand our revolving credit facilities.
Previous wording
As of June 30, 2025 and December 31, 2024, our portfolio consisted of 145 and 155 commercial mortgage loans, held for investment, respectively. The commercial mortgage loans, held for investment, net of allowance for credit losses, as of June 30, 2025 and December 31, 2024 had a total carrying value of $4,482.2 million and $4,908.7 million, respectively. As of June 30, 2025 and December 31, 2024, our commercial mortgage loans, held for sale, measured at fair value, were comprised of three loans with a total fair value of $17.2 million and $87.3 million, respectively. As of June 30, 2025 and December 31, 2024, we had $83.4 million and $203.0 million, respectively, of real estate securities, available for sale, measured at fair value. As of June 30, 2025 and December 31, 2024, our real estate owned, held for investment portfolio was composed of three properties with carrying values of $111.8 million and $113.2 million, respectively. As of June 30, 2025 and December 31, 2024, we had eight and twelve positions classified as real estate owned, held for sale with combined carrying values of $220.4 million and $222.9 million, respectively. As of June 30, 2025 and December 31, 2024 our equity method investments consisted of two properties and one property with carrying values of $23.4 million and $13.4 million, respectively.
Current wording
As of September 30, 2025 and December 31, 2024, our portfolio consisted of 147 and 155 commercial mortgage loans, held for investment, respectively. The commercial mortgage loans, held for investment, net of allowance for credit losses, as of September 30, 2025 and December 31, 2024 had a total carrying value of $4,368.8 million and $4,908.7 million, respectively. As of September 30, 2025, our commercial mortgage loans, held for sale, measured at fair value, were comprised of one conduit loan and 35 Agency loans, with a total fair value of $619.0 million. As of December 31, 2024, our commercial mortgage loans, held for sale, measured at fair value, were comprised of three senior loans with a total fair value of $87.3 million. As of September 30, 2025 and December 31, 2024, we had $82.6 million and $203.0 million, respectively, of real estate securities, available for sale, measured at fair value. As of September 30, 2025 and December 31, 2024, our real estate owned, held for investment portfolio was composed of two and three properties with carrying values of $99.9 million and $113.2 million, respectively. As of September 30, 2025 and December 31, 2024, we had nine and twelve positions classified as real estate owned, held for sale with combined carrying values of $212.4 million and $222.9 million, respectively. As of September 30, 2025 and December 31, 2024 our equity method investments consisted of four investments and one investment with carrying values of $69.1 million and $13.4 million, respectively.
Previous wording
As of June 30, 2025, we had two loans (one secured by an office property and one secured by a multifamily property), designated as non-performing status with a total amortized cost of $56.9 million. As of June 30, 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 $0.3 million.
Current wording
As of September 30, 2025, we had four loans (one secured by an office property, one secured by a portfolio of retail properties, and two secured by multifamily properties), designated as non-performing status with a total amortized cost of $100.7 million. Subsequent to September 30, 2025, we disposed of the loan secured by the portfolio of retail properties at a price equivalent to par, recovering our full basis. As of September 30, 2025, one of the non-performing loans, collateralized by a multifamily property, was placed on cost recovery status with a specific allowance for credit losses of $2.3 million.
Previous wording
As of June 30, 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 7.8% and 8.0%, respectively, and a weighted average remaining contractual maturity life of 1.0 years and 1.1 years, respectively.
Current wording
As of September 30, 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 7.6% and 8.0%, respectively, and a weighted average remaining contractual maturity life of 0.9 years and 1.1 years, respectively.
Previous wording
•The real estate debt business focuses on originating, acquiring and asset managing commercial real estate debt investments, including first mortgages, subordinate mortgages, mezzanine loans and participations in such loans.
Current wording
•The real estate debt business focuses on originating, acquiring and asset managing commercial real estate debt investments, including first mortgages, subordinate mortgages, mezzanine loans and participations in such loans. The business also focuses on investing in and asset managing real estate securities, historically focusing on CMBS, CMBS bonds, CDO notes, and other securities.
Previous wording
Net interest income is generated on our interest-earning assets less related interest-bearing liabilities and is recorded as part of our real estate debt, real estate securities and conduit programs.
Current wording
Net interest income is generated on our interest-earning assets less related interest-bearing liabilities and is recorded as part of our real estate debt, real estate securities, agency and conduit programs.
Previous wording
The following table presents the average balance of interest-earning assets less related interest-bearing liabilities, associated interest income and expense and corresponding yield earned and incurred for the six months ended June 30, 2025 and 2024 (dollars in thousands):
Current wording
The following table presents the average balance of interest-earning assets less related interest-bearing liabilities, associated interest income and expense and corresponding yield earned and incurred for the nine months ended September 30, 2025 and 2024 (dollars in thousands):
Previous wording
(1) Based on amortized cost for real estate debt and real estate securities and principal amount for interest-bearing liabilities. Amounts are calculated based on daily averages for the six months ended June 30, 2025 and 2024, respectively.
Current wording
(1) Based on amortized cost for real estate debt and real estate securities and principal amount for interest-bearing liabilities. Amounts are calculated based on daily averages for the nine months ended September 30, 2025 and 2024, respectively.
Previous wording
Interest income for the six months ended June 30, 2025 and 2024 totaled $225.1 million and $264.1 million, respectively, a decrease of $39.0 million. The decrease was primarily due to an approximate 100 basis point decrease in daily average SOFR and SOFR equivalent rates coupled with a decrease of $419.8 million in the average carrying balance of our real estate debt. As of June 30, 2025, our portfolio consisted of (i) 145 commercial mortgage loans, held for investment, (ii) three commercial mortgage loans, held for sale, measured at fair value and (iii) five real estate securities, available for sale, measured at fair value. As of June 30, 2024, our portfolio consisted of (i) 153 commercial mortgage loans, held for investment, (ii) four commercial mortgage loans, held for sale, measured at fair value and (iii) nine real estate securities, available for sale, measured at fair value.
Current wording
Interest income for the nine months ended September 30, 2025 and 2024 totaled $331.2 million and $398.3 million, respectively, a decrease of $67.1 million. The decrease was primarily due to an approximate 98 basis point decrease in daily average SOFR and SOFR equivalent rates coupled with a decrease of $546.7 million in the average carrying balance of our real estate debt. As of September 30, 2025, our portfolio consisted of (i) 147 commercial mortgage loans, held for investment, (ii) 36 commercial mortgage loans, held for sale, measured at fair value, (iii) two commercial mortgage loans, held for sale and (iv) five real estate securities, available for sale, measured at fair value. 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.
Previous wording
Interest expense for the six months ended June 30, 2025 and 2024 was $140.8 million and $168.1 million, respectively, a decrease of $27.3 million. The decrease was primarily due to an approximate 100 basis point decrease in daily average SOFR and SOFR equivalent rates coupled with a decrease of $253.7 million in the average carrying value of our collateralized loan obligations.
Current wording
Interest expense for the nine months ended September 30, 2025 and 2024 was $217.3 million and $257.9 million, respectively, a decrease of $40.6 million. The decrease was primarily due to an approximate 98 basis point decrease in daily average SOFR and SOFR equivalent rates coupled with a decrease of $329.6 million in the average carrying value of our collateralized loan obligations.
Previous wording
Net result from derivative transactions for the six months ended June 30, 2025 of a $0.3 million loss was composed primarily of a $1.2 million unrealized loss on marks 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. Net result from derivative transactions for the six months ended June 30, 2024 was 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 $0.3 million.
Current wording
Loss on derivatives for the nine months ended September 30, 2025 and 2024 was $0.5 million and $1.3 million, respectively. For the nine months ended September 30, 2025, the loss was composed of a $1.0 million unrealized loss related to mark to market on credit default swaps, treasury note futures, and options, partially offset by a $0.5 million realized gain due to the termination and settlement of treasury note futures. This is compared to a $1.3 million loss for the nine months ended September 30, 2025 related to the termination and settlement of credit default swaps, treasury note futures, and options.
Previous wording
For the six months ended June 30, 2025 and 2024, revenue from real estate owned was $15.1 million and $8.8 million, respectively. The $6.3 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 six months ended June 30, 2025.
Current wording
For the nine months ended September 30, 2025 and 2024, revenue from real estate owned was $22.4 million and $14.2 million, respectively. The $8.2 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 nine months ended September 30, 2025.
Previous wording
For the six months ended June 30, 2025, general benefit for credit losses was $4.2 million compared to a provision of $2.1 million during the six months ended June 30, 2024. General benefit for the six months ended June 30, 2025 is primarily due to a decrease in the size of the overall portfolio. General provision for the six months ended June 30, 2024 was attributable to a more pessimistic view of the macroeconomic scenario utilized for the CECL model compared to preceding periods.
Current wording
For the nine months ended September 30, 2025, general benefit for credit losses was $5.7 million compared to a provision of $1.3 million during the nine months ended September 30, 2024. General benefit for the nine months ended September 30, 2025 is primarily due to a decrease in the size of the overall portfolio. General provision for the nine months ended September 30, 2024 was attributable to a more pessimistic view of the macroeconomic scenario utilized for the CECL model compared to preceding periods.
Previous wording
For the six months ended June 30, 2025, the increase in specific reserve of $0.8 million was related to a non-performing loan secured by a multifamily property in Texas which we foreclosed on during the second quarter, partially offset by a partial paydown on a non-performing loan secured by an office property in Georgia. For the six months ended June 30, 2024, the increase in specific reserve of $33.0 million was related to multiple loans, including non-performing multifamily loans and office loans.
Current wording
For the nine months ended September 30, 2025, the increase in specific reserve of $2.7 million was primarily related to (i) a non-performing loan secured by a multifamily property in Texas which we foreclosed on during the second quarter and (ii) a non-performing loan secured by a multifamily property in Pennsylvania, partially offset by a the reversal of a specific reserve on a non-performing loan secured by an office property in Georgia. For the nine months ended September 30, 2024, the increase in specific reserve of $33.5 million was related to two non-performing loans collateralized by office properties coupled with foreclosures on non-performing loans collateralized by multifamily properties located in Oklahoma and North Carolina.
Previous wording
Realized gain on real estate securities, available for sale for the six months ended June 30, 2025 was $0.1 million related to eight sales of our CRE CLO bonds. This is compared to a gain of $0.1 million for the six months ended June 30, 2024 related to four sales of our CRE CLO bonds.
Current wording
Realized gain on real estate securities, available for sale for the nine months ended September 30, 2025 was $0.1 million related to eight sales of our CRE CLO bonds. This is compared to a gain of $0.1 million for the nine months ended September 30, 2024 related to six sales of our CRE CLO bonds.
Previous wording
Gain on other real estate investments for the six months ended June 30, 2025 was $0.5 million primarily due to the sales and settled litigation regarding the Walgreens Portfolio, partially offset by losses related to the onboarding of real estate owned, held for sale, multifamily and office properties, as well as fair value write downs on two of our multifamily properties. This is compared to a loss of $6.2 million for the six months ended June 30, 2024 primarily due to sales and write offs related to the Walgreens Portfolio coupled with the onboarding of real estate owned, held for sale, multifamily properties.
Current wording
Loss on other real estate investments for the nine months ended September 30, 2025 was $1.7 million primarily due to sales of our multifamily and retail properties, losses related to the onboarding of real estate owned, held for sale, multifamily and office properties and fair value write downs on three of our multifamily properties, partially offset by settled litigation regarding the Walgreens Portfolio. This is compared to a loss of $8.4 million for the nine months ended September 30, 2024 primarily due to sales and write offs related to the Walgreens Portfolio coupled with the onboarding of real estate owned, held for sale, multifamily properties.
Previous wording
Income from equity method investments for the six months ended June 30, 2025 was $0.2 million related to the Company's allocated percentage of quarterly income for a mixed use property located in New Jersey. The Company did not have any equity method investments or income during the six months ended June 30, 2024.
Current wording
Income from equity method investments for the nine months ended September 30, 2025 was $0.2 million related to the Company's net allocated percentage of income generated by our equity method investments. The Company did not have any equity method investments or income during the nine months ended September 30, 2024.
Previous wording
Provision for income tax for the six months ended June 30, 2025 was $0.5 million compared to a provision of $0.7 million for the six months ended June 30, 2024. The difference is related to changes in taxable income/loss in our TRS segment.
Current wording
Benefit for income tax for the nine months ended September 30, 2025 was $2.4 million compared to a provision of $0.9 million for the nine months ended September 30, 2024. The difference is related to changes in taxable earnings in our TRS segment.
Previous wording
Net income attributable to non-controlling interest in our consolidated joint ventures for the six months ended June 30, 2025 was $0.8 million compared to a net loss of $1.7 million for the six months ended June 30, 2024.
Current wording
Net income attributable to non-controlling interest in our consolidated joint ventures for the nine months ended September 30, 2025 was $1.1 million compared to a net loss of $3.1 million for the nine months ended September 30, 2024.
Previous wording
Expenses from operations for the six months ended June 30, 2025 and 2024 consisted of the following (dollars in thousands):
Current wording
Expenses from operations for the nine months ended September 30, 2025 and 2024 consisted of the following (dollars in thousands):
Previous wording
For the six months ended June 30, 2025, we incurred asset management and subordinated performance fees and administrative services expenses of $12.1 million and $7.2 million, respectively, which are payable to our Advisor under our asset management agreement. For the six months ended June 30, 2025 compared to June 30, 2024, asset management and subordinated performance fees decreased due to decreases in applicable equity between periods, while administrative services expenses increased due to the time spent on the NewPoint acquisition. Refer to Note 11 - Related Party Transactions and Arrangements for a summary of the Company's Advisory Agreement with the Advisor and a description of how our fees are calculated.
Current wording
For the nine months ended September 30, 2025, we incurred asset management and subordinated performance fees and administrative services expenses of $18.2 million and $10.7 million, respectively, which are payable to our Advisor under our asset management agreement. For the nine months ended September 30, 2025 compared to September 30, 2024, asset management and subordinated performance fees decreased due to decreases in applicable average equity between periods, while administrative services expenses increased due to the time spent on the NewPoint acquisition. Refer to Note 11 - Related Party Transactions and Arrangements for a summary of the Company's Advisory Agreement with the Advisor and a description of how our fees are calculated.
Previous wording
The increase in operating expense for the six months ended June 30, 2025 was primarily related to (i) an increase in professional fees related to the NewPoint acquisition and (ii) an increase in other expenses related to property operating expenses and third party management fees incurred in order to operate various real estate owned investments in our portfolio.
Current wording
The increase in operating expense for the nine months ended September 30, 2025 was primarily related to (i) an increase in professional fees related to the NewPoint acquisition, (ii) an increase in other expenses related to property operating expenses and third party management fees incurred in order to operate various real estate owned investments in our portfolio and (iii) compensation and benefits related to NewPoint. Historically, we did not have compensation and benefit expenses as the Company did not have employees.
Previous wording
Net interest income is generated on our interest-earning assets less related interest-bearing liabilities and is recorded as part of our real estate debt, real estate securities and conduit programs.
Current wording
Net interest income is generated on our interest-earning assets less related interest-bearing liabilities and is recorded as part of our real estate debt, real estate securities, agency and conduit programs.
Previous wording
Interest income for the three months ended June 30, 2025 and March 31, 2025 totaled $111.2 million and $113.9 million, respectively, a decrease of $2.7 million. This decrease was primarily due to a decrease of $149.9 million in the average carrying balance of our real estate debt. SOFR rates remained consistent quarter over quarter. As of June 30, 2025, our portfolio consisted of (i) 145 commercial mortgage loans, held for investment, (ii) three commercial mortgage loans, held for sale, measured at fair value and (iii) five real estate securities, available for sale, measured at fair value. 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.
Current wording
Interest income for the three months ended September 30, 2025 and June 30, 2025 totaled $106.2 million and $111.2 million, respectively, a decrease of $5.0 million. This decrease was primarily due to a decrease of $198.9 million in the average carrying balance of our real estate debt. Average SOFR and SOFR equivalent rates remained consistent quarter over quarter. As of September 30, 2025, our portfolio consisted of (i) 147 commercial mortgage loans, held for investment, (ii) 36 commercial mortgage loans, held for sale, measured at fair value and (iii) two commercial mortgage loans, held for sale and (iv) five real estate securities, available for sale, measured at fair value. As of June 30, 2025, our portfolio consisted of (i) 145 commercial mortgage loans, held for investment, (ii) three commercial mortgage loan, held for sale, measured at fair value and (iii) five real estate securities, available for sale, measured at fair value.
Previous wording
Interest expense for the three months ended June 30, 2025 and March 31, 2025 totaled $70.2 million and $70.6 million, respectively, a decrease of $0.4 million. The decrease was primarily due to a decrease of $240.2 million in the average carrying balance of our collateralized loan obligations. SOFR rates remained consistent quarter over quarter.
Current wording
Interest expense for the three months ended September 30, 2025 and June 30, 2025 totaled $76.5 million and $70.2 million, respectively, a increase of $6.3 million. The increase was primarily due to a increase of $473.0 million in the average carrying balance of our repurchase agreements - commercial mortgage loans. Average SOFR and SOFR equivalent rates remained consistent quarter over quarter.
Previous wording
Net result from derivative transactions for the three months ended June 30, 2025 of a $0.2 million loss was composed primarily of a $0.1 million unrealized loss on mark to market on credit default swaps and treasury note futures, coupled with a realized loss of $0.1 million due to the termination and settlement of credit default swaps and treasury note futures. This is compared to a net loss on our derivative portfolio of $0.2 million 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 for the three months ended March 31, 2025.
Current wording
Loss on derivatives for the three months ended September 30, 2025 was $0.1 million composed of a $0.4 million realized loss related to the termination and settlement of credit default swaps and treasury note futures, partially offset by a $0.3 million unrealized gain related to mark to market on treasury yield futures, credit default swaps, and options. This is compared to a loss on derivatives for the three months ended June 30, 2025 of $0.2 million related to a $1.1 million unrealized loss on marks 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.
Previous wording
Benefit for credit losses was $1.5 million and $1.9 million, respectively, during the three months ended June 30, 2025 and March 31, 2025.
Current wording
Benefit for credit losses was $0.6 million and $1.5 million, respectively, during the three months ended September 30, 2025 and June 30, 2025.
Previous wording
For the three months ended June 30, 2025 and March 31, 2025, general benefit for credit losses was $2.6 million and $1.6 million, respectively. General benefit for both periods decreased primarily due to the portfolio turnover of older vintage loans with newly originated loans, coupled by a decrease in the overall size of our portfolio.
Current wording
For the three months ended September 30, 2025 and June 30, 2025, general benefit for credit losses was $1.5 million and $2.6 million, respectively. General benefit for both periods decreased primarily due to the portfolio turnover of older vintage loans with newly originated loans, coupled by a decrease in the overall size of our portfolio.
Previous wording
For the three months ended June 30, 2025, specific provision for credit losses was $1.1 million compared to a specific benefit for credit losses of $0.3 million for the three months ended March 31, 2025. For the three months ended June 30, 2025, the increase in specific reserve was primarily related to a non-performing loan secured by a multifamily property in Texas which we foreclosed on during the second quarter. For the three months ended March 31, 2025, the decrease in specific reserve was related to a partial paydown on a non-performing loan secured by an office property in Georgia.
Current wording
For the three months ended September 30, 2025 and June 30, 2025, specific provision for credit losses was $1.9 million and $1.1 million, respectively. For the three months ended September 30, 2025, the increase in specific reserve was primarily related to a non-performing loan secured by a multifamily property in Pennsylvania. For the three months ended June 30, 2025, the decrease in specific reserve was primarily related to a non-performing loan secured by a multifamily property in Texas which we foreclosed on during the second quarter.
Previous wording
Realized gain on real estate securities, available for sale for the three months ended June 30, 2025 of $0.1 million related to eight sales of our CRE CLO bonds. The Company did not realize a gain or loss on real estate securities, available for sale for the three months ended March 31, 2025.
Current wording
The Company did not recognize a realized gain or loss on real estate securities, available for sale for the three months ended September 30, 2025. Realized gain on real estate securities, available for sale for the three months ended June 30, 2025 of $0.1 million related to eight sales of our CRE CLO bonds.
Previous wording
Gain on other real estate investments for the three months ended June 30, 2025 was $2.7 million primarily due to the sales and settled litigation regarding the Walgreens Portfolio, partially offset by losses related to the onboarding of one real estate owned, held for sale, multifamily property, as well as fair value write downs on two multifamily properties. 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.
Current wording
Loss on other real estate investments for the three months ended September 30, 2025 was $2.1 million primarily related to the sales of a Walgreens asset and multifamily asset, coupled with the fair value write down on one multifamily property. This is compared to a gain on other real estate investments for the three months ended June 30, 2025 for $2.7 million primarily due to the sales and settled litigation regarding the Walgreens Portfolio, partially offset by losses related to the onboarding of one real estate owned, held for sale, multifamily properties, as well as fair value write downs on two multifamily properties.
Previous wording
Benefit for income tax for the three months ended June 30, 2025 was $0.1 million compared to provision of $0.7 million for the three months ended March 31, 2025. The difference is related to changes in taxable income/loss in our TRS segment.
Current wording
Benefit for income tax for the three months ended September 30, 2025 was $2.9 million compared to benefit of $0.1 million for the three months ended June 30, 2025. The difference is related to changes in taxable earnings in our TRS segment.
Showing the first 40 of 64 pairs. Open the source sections for the rest.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
As of September 30, 2025, we have 218 employees, all of which are employees of NewPoint.
Current report — wording carried from elsewhere
The following table shows selected data from our commercial mortgage loans, held for sale assets in our portfolio as of September 30, 2025 (dollars in thousands):
Current report — wording carried from elsewhere
(1) LTV represents the ratio of the loan amount to the appraised value of the property at the time of origination.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
(2) Fully-converted book value per share reflects full conversion of our outstanding series of convertible preferred stock and full vesting of our outstanding equity compensation awards.
Previous report — wording carried elsewhere
•The real estate securities business focuses on investing in and asset managing real estate securities. Historically this business has focused primarily on CMBS, CMBS bonds, CDO notes, and other securities.
Previous report — wording carried elsewhere
Comparison of the Three Months Ended June 30, 2025 to the Three Months Ended June 30, 2024