MeritValue

Franklin BSP Realty Trust, Inc.

FBRTdata completeness 75%13 fiscal years on file

Data notes: no data for concept 'capex'

The thesis, from the filings

Franklin BSP Realty Trust, Inc. earns about 5% on equity, but has diluted owners by 98% over 5 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $9.89 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$4.76M1$9.66M2$17M3$22.8M3$29.6M3
Net income$25.7M4$14.4M5$145.2M6$95.9M6$82.3M6
Operating cash flow$146.5M7$152.5M8$197.4M9$57.2M9$291.9M9
Capital expenditure—————
Free cash flow (derived)—————
Total debt—————
Cash & equivalents$154.9M10$179.3M11$337.6M11$184.4M11$167.3M11
Diluted shares43.4M71.6M82.3M81.8M86.2M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$167.25
your share of equity
Profit it earned you last year
$9.55
Free cash flow it threw off
—
Debt you’d be carrying
—

10 shares is a claim on $167.25 of net worth that earned you $9.55 last year.

iii. Is this a good business?
Moat signal · return on equity
5% avg · 5y
FY21 2%FY22 1%FY23 9%FY24 6%FY25 6%

It earned an average 5% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+98% shares · 5y

Share count is up 98% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$9.89
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$82.3M
  • growthAssumed0.0%
Graham Number
$15.52
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001562528-24-000008 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001562528-25-000013 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001562528-26-000008 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0001562528-24-000008 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001562528-25-000013 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001562528-26-000008 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001562528-24-000008 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001562528-25-000013 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001562528-26-000008 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001562528-25-000013 (CashAndCashEquivalentsAtCarryingValue)
  11. 10-K · period ending 2022-12-31 · accession 0001562528-26-000008 (CashAndCashEquivalentsAtCarryingValue)