Franklin BSP Realty Trust (FBRT) priced a new $880.4 million managed commercial real‑estate collateralized loan obligation, designated FL13, on March 30 2026. The CLO carries a 30‑month reinvestment period, an initial advance rate of 88.375 %, and a weighted‑average interest cost of 1 M CME Term SOFR + 1.76 % before transaction costs. Settlement is scheduled for April 15 2026.
The transaction is part of FBRT’s strategy to transition from a traditional mortgage REIT to a broader commercial‑real‑estate investment platform. The CLO’s portfolio is approximately 84 % multifamily exposure, and the company’s total assets were $6.1 billion as of December 31 2025. The financing will provide additional capital to support fee‑based revenue streams from servicing and managing the underlying assets, and it follows a $1.076 billion CLO (FL12) that settled in October 2025.
FBRT’s most recent quarterly results showed GAAP net income of $18.4 million for the three months ended December 31 2025, down from $30.2 million in the same period a year earlier, and diluted earnings per share of $0.13 versus $0.29. Revenue for the quarter was $281.92 million, a 50.22 % increase from the prior year, but the company’s dividend was cut to $0.20 per share from $0.355 to align payouts with earnings. These figures illustrate the company’s revenue growth amid a decline in profitability, a trend that the CLO issuance seeks to address by expanding fee income.
"In a more challenging market backdrop, the successful pricing of this $880.4 million managed CRE CLO reflects strong investor confidence and our team's disciplined execution. The transaction underscores our ability to originate and aggregate high‑quality assets, with this CLO featuring approximately 84% multifamily exposure, and reflects continued progress in executing our strategy," said CEO Michael Comparato.
The company is also facing a class action lawsuit alleging false and misleading statements about its prospects and dividend sustainability, with the lawsuit’s class period running from November 5 2024 to February 11 2026. In addition, Comparato became CEO on February 10 2026, and Brian Buffone was promoted to president. These developments, combined with the new CLO, highlight FBRT’s efforts to strengthen its capital base and governance amid regulatory and market pressures.
The pricing of FL13 represents a significant capital deployment that aligns with FBRT’s broader strategy to diversify its business model, enhance fee‑based revenue, and support future origination and servicing growth. The transaction’s timing and terms suggest confidence from investors in the company’s asset quality and management execution, even as the firm navigates earnings volatility and legal challenges.
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