Franklin BSP Realty Trust, Inc.

Good day and welcome to the Franklin BSP Realty Trust Third Quarter 2025 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then 1 on a touch-tone phone. To withdraw your question, please press star, then 2. Please note this event is being recorded. I would now like to turn the conference over to Lindsey Krepp, Director of Industrial Relations. Please go ahead.

Good morning, and welcome to FBRT's Third Quarter Earnings Call. Thank you, Cindy, for hosting our call today. As the operator mentioned, I'm Lindsay Crabb. With me on the call today are Richard Byrne, Chairman and CEO of FBRT, Jerry Baglian, Chief Financial Officer and Chief Operating Officer of FBRT, and Michael Camperato, President of FBRT. Before we begin, I want to mention that some of today's comments are forward-looking statements and are based on certain assumptions. Those comments and assumptions are subject to inherent risks and uncertainties, as described in our most recently filed SEC periodic reports, and actual future results may differ materially. The information conveyed on this call is current only as of the date of this call, October 30, 2025. The company assumes no obligation to update any statements made during this call, including any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Additionally, we will refer to certain non-GAAP financial measures, which are reconciled to GAAP figures in our earnings release and supplementary slide deck, each of which are available on our website at www.fbrtreet.com. We will refer to the supplementary slide deck on today's call. With that, I will turn the call over to Rich Verne.

Rich Verne Great. Thanks, Lindsay, and good morning, everyone. I'm going to start on slide four. by reviewing our third quarter results. And then, as always, we will open the call up for everyone's questions. I'll begin with key developments from the third quarter. Jerry's going to walk through our financial results, including NewPoint's strong contribution to its first full quarter with us at FBRT. And Mike is going to provide updates on several more topics, including market conditions, our watch list, and our REO activity. But to start, as we previously said, the third quarter was a transitional period for FBRT. It was highlighted by the successful closing, as I said, of our acquisition of Newpoint, which occurred on the first day of the quarter, July 1st. The Newpoint integration so far is going exceptionally well. Newpoint had a record volume quarter. It was actually the highest in its history with 2.2 billion of originations. This resulted in $1.8 billion increase in the agency servicing portfolio. In total, NewPoint contributed $9.3 million to distributable earnings in its first full quarter as part of our company. Overall, our distributable earnings were $0.22 per fully converted share. Jerry is going to provide additional details on distributable earnings as well as NewPoint. As expected, maintaining liquidity for the acquisition limited our new loan originations early in the quarter. As such, our core portfolio size declined slightly. We originated approximately $304 million in new loan commitments in the quarter and funded $196 million of those, primarily in multifamily, with the bulk of our origination activity occurring mid-quarter or later. And we received $275 million in loan repayments. We expect our core portfolio to return to its target size of at least $5 billion over the next few quarters. At quarter end, we had $522 million of available liquidity. But following quarter end, we closed our 12th CRE CLO, which refinanced several older CLOs past their reinvestment periods. While these CLO calls will result in some non-cash extinguishing debt charges in the fourth quarter, the transaction lowers our interest expense and adds approximately $1 billion of origination capacity to our total loan portfolio. Our average risk rating held steady at 2.3. We continue to make progress on the legacy portfolio and actively manage our watch list and REO assets. Three new loans were added to the watch list this quarter while one was removed following full repayment. We expect to remove several watch list loans in Q4 via loan modifications or asset sales. On the REO front, we sold two properties this quarter and have a few more slated to close in Q4. You'll hear a lot more about that momentarily. As these legacy issues are resolved, additional capital will be available for us to deploy into our core portfolio. Post-interest rate hike originations now represent approximately 60% of our book. Importantly, we have resumed share repurchases in Q4. We view our stock as significantly discounted and believe it's an important activity supported at these levels. Through October 24, we have repurchased 540,000 shares for approximately $6 million. and have 25.6 million remaining on our buyback allocation. Our board of directors expanded our buyback authorization through December of next year. While this was a transitional quarter, we view it as one that sets the stage for stronger results ahead. We're focused on integrating new point, redeploying liquidity, and leveraging our expanded capabilities to grow earnings and book value as we move through the remainder of this year and well beyond. With that, I'll pass things over to Jerry.