# EDGAR Filing Document

**Accession Number:** 0001562528
**File Stem:** 0001104659-25-073109
**Filing Date:** 2025-8
**Character Count:** 37335
**Document Hash:** daa503145a5ccfe4b4099b4138289ae6
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-25-073109.hdr.sgml**: 20250801

**ACCESSION NUMBER**: 0001104659-25-073109

**CONFORMED SUBMISSION TYPE**: 8-K/A

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20250701

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250801

**DATE AS OF CHANGE**: 20250801

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Franklin BSP Realty Trust, Inc.
- **CENTRAL INDEX KEY:** 0001562528
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE INVESTMENT TRUSTS [6798]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 000000000
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K/A
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-40923
- **FILM NUMBER:** 251176198

**BUSINESS ADDRESS:**
- **STREET 1:** ONE MADISON AVENUE, SUITE 1600
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10010
- **BUSINESS PHONE:** (212) 588-6770

**MAIL ADDRESS:**
- **STREET 1:** ONE MADISON AVENUE, SUITE 1600
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10010

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Benefit Street Partners Realty Trust, Inc.
- **DATE OF NAME CHANGE:** 20170203

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Realty Finance Trust, Inc.
- **DATE OF NAME CHANGE:** 20150217

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** ARC Realty Finance Trust, Inc.
- **DATE OF NAME CHANGE:** 20121119

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K/A**

**CURRENT REPORT**

**PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934**

**Date of Report (Date of earliest event reported): July 1, 2025**

**Franklin BSP Realty Trust, Inc.**

(Exact Name of Registrant as Specified in Its Charter)

---

| | | |
|:---|:---|:---|
| **Maryland** | **001-40923** | **46-1406086** |
| (State or other jurisdiction | (Commission File Number) | (I.R.S. Employer |
| of incorporation) |  | Identification No.) |

---

**1 Madison Ave., Suite 1600**

**New York, New York 10010**

(Address of principal executive offices, including zip code)

Registrant's telephone number, including area code: **(212) 588-6770**

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (<u>see</u> General Instruction A.2 below):

◻ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

◻ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

◻ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

◻ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;Title of each class | &nbsp;&nbsp;Trading <br> Symbol(s) | &nbsp;&nbsp;Name of each exchange on which <br> registered |
| &nbsp;&nbsp;Common Stock, par value $0.01 per share | &nbsp;&nbsp;FBRT | &nbsp;&nbsp;New York Stock Exchange |
| &nbsp;&nbsp;7.50% Series E Cumulative Redeemable Preferred Stock, par value $0.01 per share | &nbsp;&nbsp;FBRT PRE | &nbsp;&nbsp;New York Stock Exchange |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ◻

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

**Explanatory Note**

On July 1, 2025, Franklin BSP Realty Trust, Inc. (the "Company") filed a Current Report on Form 8-K (the "Original Form 8-K) with the U.S. Securities and Exchange Commission (the "SEC"), in connection with the consummation on July 1, 2025, of the previously announced purchase of all of the issued and outstanding membership interests and units of NewPoint Holdings JV LLC ("NewPoint") by FBRT OP LLC ("Purchaser OP"), a consolidated subsidiary of the Company, and FBRT Sub REIT TRS LLC, also a consolidated subsidiary of the Company (together with Purchaser OP, "Purchaser"). On July 30, 2025, the Company filed a Current Report on Form 8-K/A to amend the Original Form 8-K to provide financial statements in accordance with the requirements of Item 9.01 of Form 8-K.This Current Report on Form 8-K/A is being filed to amend the Original Form 8-K to provide the pro forma financial information described below, in accordance with the requirements of Item 9.01 of Form 8-K.

---

| | |
|:---|:---|
| **Item 9.01.** | **Financial Statements and Exhibits.** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Pro forma financial information.* **  The pro forma financial statements required by Item 9.01(b) of
Form 8-K in connection with the acquisition of NewPoint are filed as Exhibit 99.4 and incorporated herein by reference.

(d) *Exhibits.* 

**EXHIBIT INDEX**

---

| | |
|:---|:---|
| **Exhibit**<br>**No.** | <br>**Description** |
| [99.4](tm2522176d1_ex99-4.htm) | [Unaudited pro forma condensed combined financial information of Franklin BSP Realty Trust, Inc. as of June 30, 2025 and for the six months ended June 30, 2025 and year ended December 31, 2024.](tm2522176d1_ex99-4.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | |
|:---|:---|
| **FRANKLIN BSP REALTY TRUST, INC.** | **FRANKLIN BSP REALTY TRUST, INC.** |
| By: | /s/ Jerome S. Baglien |
| Name: | Jerome S. Baglien |
| Title: | *Chief Financial Officer and Chief Operating Officer* |

---

Date: August 1, 2025

## Exhibit 99.4

**Exhibit 99.4**

**UNAUDITED PRO FORMA FINANCIAL STATEMENTS**

**<u>Introduction</u>**

The following unaudited pro forma combined balance sheet as of June 30, 2025 and the unaudited pro forma combined statement of income for the six months ended June 30, 2025 and the year ended December 31, 2024, are based on the historical financial statements of Franklin BSP Realty Trust, Inc. ("FBRT") and NewPoint Holdings JV LLC ("NewPoint") after giving effect to the purchase of all of the issued and outstanding membership interests of NewPoint by FBRT OP LLC, a consolidated subsidiary of FBRT, as contemplated by the Purchase and Sale agreement, dated as of March 9, 2025 (the "Transaction"). For purposes of presenting the pro forma financial information, the unaudited pro forma combined balance sheet as of June 30, 2025 assumes the Transaction had closed at the balance sheet date and for the unaudited pro forma combined statements of income, the Transaction is assumed to have occurred as of the beginning of the earliest period presented.

The unaudited pro forma condensed combined financial statements were prepared using the acquisition method of accounting for business combinations pursuant to the provisions of Accounting Standards Codification ("ASC") Topic 805, Business Combinations ("ASC 805"), with FBRT considered the acquirer of NewPoint for accounting purposes. Accordingly, consideration given by FBRT to complete the transaction will be allocated to the assets and liabilities of NewPoint based upon their estimated fair values as of the date of the Transaction. As of the date of this Form 8-K/A, FBRT has not completed the detailed valuation studies necessary to arrive at the required estimates of the fair value of the NewPoint assets to be acquired and the liabilities to be assumed and the related allocations of consideration.

The unaudited pro forma combined financial statements are based upon available information, preliminary estimates, and certain assumptions that FBRT believes are reasonable in the circumstances, as set forth in the notes to the unaudited pro forma combined financial statements.The unaudited pro forma combined financial statements are presented for informational purposes only and are not necessarily indicative of the future financial position or results of operations of the combined company after the Transaction or the combined financial position or the results of operations that would have been realized had the acquisition been consummated during the period or as of the dates for which the unaudited pro forma combined financial statements are presented.

These unaudited pro forma condensed combined financial statements have been developed from and should be read in conjunction with (i) the unaudited consolidated financial statements of each of FBRT and NewPoint for the quarterly period ended June 30, 2025 contained in their respective Quarterly Reports on Form 10-Q for the fiscal quarter ended June 30, 2025 and (ii) the audited consolidated financial statements of each of FBRT and NewPoint contained in their respective Annual Reports on Form 10-K for the fiscal year ended December 31, 2024, all of which are incorporated by reference into this proxy statement/prospectus.

Pro forma adjustments are included only to the extent they are (i) directly attributable to the acquisition, (ii) factually supportable and (iii) with respect to the unaudited pro forma condensed combined statements of income, expected to have a continuing impact on the combined results. FBRT expects to incur significant costs associated with integrating the operations of FBRT and NewPoint. The unaudited pro forma condensed combined financial statements do not reflect the costs of any integration activities or benefits that may result from realization of future cost savings from operating efficiencies or revenue synergies expected to result from the merger.

**UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET**

**AT JUNE 30, 2025**

**(In thousands, except for per share amounts)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | | | **Pro Forma Adjustments** | **Pro Forma Adjustments** | **Pro Forma Adjustments** | |
|  | <br>**Franklin<br> BSP Realty<br> Trust, Inc. <br> Historical as<br> Reclassified<br> (Note 1)** | <br>**NewPoint<br> Holdings<br> JV LLC<br> Historical as<br> Reclassified<br> (Note 2)** | **Purchase<br> Accounting<br> Adjustments<br> (Note 4)** |  | **Accounting<br> Policy<br> Alignment<br> Adjustments<br> (Note 5)** | <br>**Pro Forma<br> Combined** |
| **Assets** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $414085 | $21357 | $(336965) | **(a)** | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | $98477 |
| &nbsp;&nbsp;&nbsp;Restricted cash | 8695 | 14205 |  |  |  | 22900 |
| &nbsp;&nbsp;&nbsp;Restricted investment securities |  | 17843 |  |  |  | 17843 |
| &nbsp;&nbsp;&nbsp;Commercial mortgage loans, held for investment, net | 4482201 |  |  |  |  | 4482201 |
| &nbsp;&nbsp;&nbsp;Commercial mortgage loans, held for sale, measured at fair value | 17150 | 422011 |  |  |  | 439161 |
| &nbsp;&nbsp;&nbsp;Real estate securities, available for sale, measured at fair value | 83361 |  |  |  |  | 83361 |
| &nbsp;&nbsp;&nbsp;Mortgage servicing rights, net |  | 217470 |  |  |  | 217470 |
| &nbsp;&nbsp;&nbsp;Derivative Assets |  | 4268 |  |  |  | 4268 |
| &nbsp;&nbsp;&nbsp;Receivable for loan repayment | 171775 |  |  |  |  | 171775 |
| &nbsp;&nbsp;&nbsp;Accrued interest receivable | 35830 | 4474 |  |  |  | 40304 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | 23155 | 29429 | 1149 | **(h)** |  | 53733 |
| &nbsp;&nbsp;&nbsp;Intangible assets, net of amortization | 38394 | 54218 | 27782 | **(e)** |  | 120394 |
| &nbsp;&nbsp;&nbsp;Goodwill |  | 11818 | 67062 | **(b)** |  | 78880 |
| &nbsp;&nbsp;&nbsp;Real estate owned, net of depreciation | 111839 |  |  |  |  | 111839 |
| &nbsp;&nbsp;&nbsp;Real estate owned, held for sale | 220357 |  |  |  |  | 220357 |
| &nbsp;&nbsp;&nbsp;Loan repurchase option asset |  | 13197 |  |  |  | 13197 |
| &nbsp;&nbsp;&nbsp;Equity method investments | 23376 | 47614 | - |  | - | 70990 |
| &nbsp;&nbsp;&nbsp;**Total Assets** | $**5630218** | $**857904** | $**(240972)** |  | $**-** | $**6247150** |
| &nbsp;&nbsp;&nbsp;**Liabilities** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Collateralized loan obligations | 3043604 |  |  |  |  | 3043604 |
| &nbsp;&nbsp;&nbsp;Repurchase agreements - commercial mortgage loans | 573093 | 413797 |  |  |  | 986890 |
| &nbsp;&nbsp;&nbsp;Repurchase agreements - real estate securities | 128890 |  |  |  |  | 128890 |
| &nbsp;&nbsp;&nbsp;Mortgage note payable | 23998 |  |  |  |  | 23998 |
| &nbsp;&nbsp;&nbsp;Other financing and loan participation - commercial mortgage loans | 12865 |  |  |  |  | 12865 |
| &nbsp;&nbsp;&nbsp;Unsecured Debt | 184934 |  |  |  |  | 184934 |
| &nbsp;&nbsp;&nbsp;Allowance for loss sharing |  | 23586 |  |  |  | 23586 |
| &nbsp;&nbsp;&nbsp;Derivative instruments, measured at fair value | 350 |  |  |  |  | 350 |
| &nbsp;&nbsp;&nbsp;Loan repurchase option liability |  | 13197 |  |  |  | 13197 |
| &nbsp;&nbsp;&nbsp;Accrued compensation |  | 30650 |  |  |  | 30650 |
| &nbsp;&nbsp;&nbsp;Interest payable | 12378 | 1154 |  |  |  | 13532 |
| &nbsp;&nbsp;&nbsp;Distributions payable | 36456 |  |  |  |  | 36456 |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | 14310 | 8043 | 4232 | **(f)** |  | 26585 |
| &nbsp;&nbsp;&nbsp;Due to affiliates | 13074 | 10586 |  |  |  | 23660 |
| &nbsp;&nbsp;&nbsp;Other liabilities | 880 | 25577 | (562) | **(g)** |  | 25895 |
| &nbsp;&nbsp;&nbsp;**Total Liabilities** | **4044832** | **526590** | **3670** |  | **-** | **4575092** |
| &nbsp;&nbsp;&nbsp;Redeemable convertible preferred stock Series H | 89748 |  |  |  |  | 89748 |
| &nbsp;&nbsp;&nbsp;**Equity** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Preferred Stock Series E | 258742 |  |  |  |  | 258742 |
| &nbsp;&nbsp;&nbsp;Common Stock | 822 |  |  |  |  | 822 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 1603162 |  |  |  |  | 1603162 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive income (loss) | (296) |  |  |  |  | (296) |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (373710) | 331314 | (335546) | **(d), (f)** | - | (377942) |
| &nbsp;&nbsp;&nbsp;**Total stockholders' equity** | **1488720** | **331314** | **(335546)** |  | **-** | **1484488** |
| &nbsp;&nbsp;&nbsp;Noncontrolling Interest | 6918 | - | 90904 | **(c)** | - | 97822 |
| &nbsp;&nbsp;&nbsp;**Total Equity** | **1495638** | **331314** | **(244643)** |  | **-** | **1582310** |
| &nbsp;&nbsp;&nbsp;**Total liabilities, convertible preferred stock and equity** | **5630218** | **857904** | **(240972)** |  | **-** | **6247150** |

---

**UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS**

**SIX MONTHS ENDED JUNE 30, 2025**

**(In thousands, except for per share amounts)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Historical** | **Historical** | | | |
|  | **Franklin<br> BSP Realty<br> Trust, Inc. <br> Historical as<br> Reclassified <br> (Note 1)** | **NewPoint<br> Holdings JV<br> LLC,<br> Historical as<br> Reclassified<br> (Note 2)** | <br>**Purchase<br> Accounting<br> Adjustments<br> (Note 4)** | <br>**Accounting<br> Policy<br> Alignment<br> Adjustments<br> (Note 5)** | <br>**Pro Forma<br> Combined** |
| **Income** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | $225079 | $6260 | $- | $- | $231339 |
| &nbsp;&nbsp;&nbsp;Less: Interest expense | 140806 | 5989 | - | - | 146795 |
| &nbsp;&nbsp;&nbsp;Net interest income | 84273 | 271 |  |  | 84544 |
| &nbsp;&nbsp;&nbsp;Gain/(loss) on sales, including fee-based services, net | 5303 | 24944 |  |  | 30247 |
| &nbsp;&nbsp;&nbsp;Mortgage Servicing rights |  | 16218 |  |  | 16218 |
| &nbsp;&nbsp;&nbsp;Servicing Revenue |  | 36442 |  | (13039) **(o)** | 23403 |
| &nbsp;&nbsp;&nbsp;Gain/(loss) on derivatives | (335) |  |  |  | (335) |
| &nbsp;&nbsp;&nbsp;Revenue from real estate owned | 15133 | - | - | - | 15133 |
| **Total income** | **104374** | **77875** | **-** | **(13039)** | **169210** |
| **Expenses** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Asset management and subordinated performance fee | 12092 |  |  |  | 12092 |
| &nbsp;&nbsp;&nbsp;Acquisition expenses | 474 |  |  |  | 474 |
| &nbsp;&nbsp;&nbsp;Administrative services expenses | 7232 |  |  |  | 7232 |
| &nbsp;&nbsp;&nbsp;Compensation and benefits |  | 41387 |  |  | 41387 |
| &nbsp;&nbsp;&nbsp;Professional fees | 11274 | 6487 |  |  | 17761 |
| &nbsp;&nbsp;&nbsp;Share-based compensation | 4562 |  |  |  | 4562 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 2761 | 1378 | (552) **(j)** |  | 3587 |
| &nbsp;&nbsp;&nbsp;Other expenses | 21505 | 6500 | - | - | 28005 |
| **Total expenses** | **59900** | **55752** | **(552)** | **-** | **115100** |
| **Other income/(loss)** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;(Provision)/benefit for credit losses | 3385 | (5606) |  | 6672 **(n)** | 4451 |
| &nbsp;&nbsp;&nbsp;Realized gain/(loss) on real estate securities, available for sale | 113 |  |  |  | 113 |
| &nbsp;&nbsp;&nbsp;Loss/(income) from equity method investments | 181 | (973) |  |  | (792) |
| &nbsp;&nbsp;&nbsp;Unrealized gain/(loss) on other real estate investments, measured at fair value | 452 | - |  |  | 452 |
| **Total other income/(loss)** | **4131** | **(6579)** | **-** | **6672** | **4224** |
| Income/(loss) before taxes | **48605** | **15544** | **552** | **(6367)** | **58334** |
| (Provision)/benefit for income tax | (516) | - | (1493) **(l)** | 2738 **(p)** | 730 |
| **Net income/(loss)** | $**48089** | $**15544** | $**(941)** | $**(3629)** | $**59064** |
| **Net (income)/loss attributable to non-controlling interest** | (830) | - | (5348) **(m)** | - | (6178) |
| **Net income/(loss) attributable to Franklin BSP Realty Trust, Inc.** | **47259** | **15544** | **(6289)** | **(3629)** | **52886** |
| Less: Preferred stock dividends | 13496 | - | - | - | 13496 |
| **Net income/(loss) attributable to common stock** | **33763** | **15544** | **(6289)** | **(3629)** | **39390** |
| **Basic earnings per share** | 0.40 |  |  |  | 0.47 |
| **Diluted earnings per share** | 0.40 |  |  |  | 0.47 |
| **Basic weighted average shares outstanding** | 82117897 |  |  |  | 82117897 |
| **Diluted weighted average shares outstanding** | 82117897 |  |  |  | 82117897 |

---

**UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS**

**YEAR ENDED DECEMBER 31, 2024**

**(In thousands, except for per share amounts)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Historical** | **Historical** | | | |
|  | **Franklin<br> BSP Realty<br> Trust, Inc. <br> Historical as<br> Reclassified <br> (Note 1)** | **NewPoint<br> Holdings JV<br> LLC,<br> Historical as<br> Reclassified<br> (Note 2)** | <br>**Purchase<br> Accounting<br> Adjustments<br> (Note 4)** | <br>**Accounting<br> Policy<br> Alignment<br> Adjustments<br> (Note 5)** | <br>**Pro Forma<br> Combined** |
| **Income** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | $526076 | $12395 | $- | $- | $538471 |
| &nbsp;&nbsp;&nbsp;Less: Interest expense | 338471 | 14011 | - | - | 352482 |
| **Net interest income** | 187605 | (1616) |  |  | 185989 |
| &nbsp;&nbsp;&nbsp;Gain/(loss) on sales, including fee-based services, net | 13125 | 43504 |  |  | 56629 |
| &nbsp;&nbsp;&nbsp;Mortgage servicing rights |  | 35522 |  |  | 35522 |
| &nbsp;&nbsp;&nbsp;Servicing Revenue |  | 51827 |  | (6220) **(o)** | 45607 |
| &nbsp;&nbsp;&nbsp;Gain/(loss) on derivatives | (211) |  |  |  | (211) |
| &nbsp;&nbsp;&nbsp;Revenue from real estate owned | 22849 | - | - | - | 22849 |
| **Total income** | **223368** | **129237** | **-** | **(6220)** | **346385** |
| **Expenses** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Asset management and subordinated performance fee | 25958 |  |  |  | 25958 |
| &nbsp;&nbsp;&nbsp;Acquisition expenses | 996 |  | 4232 **(k)** |  | 5228 |
| &nbsp;&nbsp;&nbsp;Administrative services expenses | 9707 |  |  |  | 9707 |
| &nbsp;&nbsp;&nbsp;Compensation and benefits |  | 97966 |  |  | 97966 |
| &nbsp;&nbsp;&nbsp;Professional fees | 14508 | 7475 |  |  | 21983 |
| &nbsp;&nbsp;&nbsp;Share-based compensation | 8173 |  |  |  | 8173 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 5630 | 2435 | 4477 **(j)** |  | 12542 |
| &nbsp;&nbsp;&nbsp;Other expenses | 21472 | 13191 | - | - | 34663 |
| **Total expenses** | **86444** | **121067** | **8709** | **-** | **216220** |
| **Other income/(loss)** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;(Provision)/benefit for credit losses | (35699) | (6596) |  | 1764 **(n)** | (40531) |
| &nbsp;&nbsp;&nbsp;Realized gain/(loss) on real estate securities, available for sale | 143 |  |  |  | 143 |
| &nbsp;&nbsp;&nbsp;Realized gain/(loss) on sale of commercial mortgage loans, held for investment | 138 |  |  |  | 138 |
| &nbsp;&nbsp;&nbsp;Gain/(loss) on other real estate investments | (7983) |  |  |  | (7983) |
| &nbsp;&nbsp;&nbsp;Gain/(loss) on equity method investments | - | 2981 | - | - | 2981 |
| **Total other income/(loss)** | **(43401)** | **(3615)** | **-** | **1764** | **(45252)** |
| **Income/(loss) before taxes** | **93523** | **4555** | **(8709)** | **(4456)** | **84913** |
| (Provision)/benefit for income tax | (1120) | - | 1425 **(l)** | 1306 **(p)** | 1611 |
| **Net income/(loss)** | $**92403** | $**4555** | $**(7284)** | $**(3150)** | $**86524** |
| **Net (income)/loss attributable to non-controlling interest** | 3475 | - | **(8270)** **(m)** | - | (4795) |
| **Net income/(loss) attributable to Franklin BSP Realty Trust, Inc.** | **95878** | **4555** | **(15554)** | **(3150)** | **81729** |
| Less: Preferred stock dividends | 26993 | - | - | - | 26993 |
| **Net income/(loss) attributable to common stock** | **68885** | **4555** | **(15554)** | **(3150)** | **54736** |
| **Basic earnings per share** | 0.82 |  |  |  | 0.65 |
| **Diluted earnings per share** | 0.82 |  |  |  | 0.65 |
| **Basic weighted average shares outstanding** | 81846170 |  |  |  | 81846170 |
| **Diluted weighted average shares outstanding** | 81846170 |  |  |  | 81846170 |

---

**Note 1. FBRT Reclassifications** 

In certain circumstances, reclassifications have been made to prior period information to conform to the current presentation. Such reclassifications had no effect on previously reported shareholders' equity or net income. Refer to "Note 1. Business and Basis of Presentation" for additional discussion regarding reclassifications.

**Note 2. NewPoint Reclassifications**

The unaudited pro forma financial information has been compiled in a manner consistent with the accounting policies utilized by FBRT. Certain balances from the consolidated financial statements of NewPoint were reclassified to conform its presentation to that of FBRT. (amounts in thousands):

Presented below are the adjustments made to NewPoint's Balance Sheet as of June 30, 2025 in order to conform with the expected combined company presentation:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **NewPoint<br> Historical** | **Reclassification<br> adjustments** |  | **NewPoint <br> Historical, <br> as Reclassified** |
| **Assets** |  |  |  |  |
| Cash and cash equivalents | $21357 |  |  | 21357 |
| Restricted cash | 14205 |  |  | 14205 |
| Restricted investment securities | 17843 |  |  | 17843 |
| Mortgage loans held-for-sale, at fair value | 422011 |  |  | 422011 |
| Mortgage servicing rights, measured at fair value | 217470 |  |  | 217470 |
| Derivative assets, at fair value | 4268 |  |  | 4268 |
| Operating lease right of use assets | 8118 | (8118) | (a) |  |
| Equity method investments | 47614 |  |  | 47614 |
|  |  | 4474 | (b) | 4474 |
| Due from affiliates | 3911 |  |  | 3911 |
| Other assets | 21874 | 3644 | (a), (b) | 25518 |
| Agency licenses intangible asset | 50765 |  |  | 50765 |
| Other intangible assets | 3453 |  |  | 3453 |
| Goodwill | 11818 |  |  | 11818 |
| Loan repurchase option asset | 13197 |  |  | 13197 |
| **Total assets** | $**857904** | $**-** |  | $**857904** |
| **Liabilities and Members' equity** |  |  |  |  |
| **Liabilities** |  |  |  |  |
| Warehouse lines of credit | $413797 |  |  | 413797 |
| Allowance for loss sharing | 23586 |  |  | 23586 |
| Accrued compensation | 30650 |  |  | 30650 |
| Operating lease liabilities | 12075 | (12075) | (c) |  |
| Loan repurchase option liability | 13197 |  |  | 13197 |
|  |  | 1154 | (c) | 1154 |
|  |  | 8043 | (c) | 8043 |
| Due to affiliate | 10586 |  |  | 10586 |
| Other liabilities | 22699 | 2878 | (c), (d) | 25577 |
| Total liabilities | 526590 | - |  | 526590 |
| **Member's Equity** |  |  |  |  |
| Class A | 221552 |  |  |  |
| Class C (authorized, issued and outstanding 111,700 shares) | 12495 |  |  |  |
| Retained earnings | 97267 |  |  |  |
| Total Members' Equity | 331314 |  |  | 331314 |
| **Total liabilities and stockholders' equity** | $**857904** | $- |  | $857904 |

---

Presented below are the adjustments made to NewPoint's Income Statement for the six months ended June 30, 2025 in order to conform with the expected combined company presentation:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **NewPoint<br> Historical** | **Reclassification<br> adjustments** |  | **NewPoint<br> Historical, <br> as Reclassified** |
| **Revenue:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Servicing fees, net | $15078 | $18780 | (a), (b) | $33858 |
| &nbsp;&nbsp;&nbsp;Servicing fees from related parties | 2584 |  |  | 2584 |
| &nbsp;&nbsp;&nbsp;Gains from mortgage banking activities | 41225 | (16281) | (b) | 24944 |
|  |  | 16218 | (b) | 16218 |
| &nbsp;&nbsp;&nbsp;Interest income | 25365 | (19105) | (a), (b) | 6260 |
| &nbsp;&nbsp;&nbsp;Change in fair value of mortgage servicing rights | (388) | 388 | (a) |  |
| &nbsp;&nbsp;&nbsp;Mortgage banking revenue | 83864 | - |  | 83864 |
| **Expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Compensation and benefits | 41279 | 108 | (d) | 41387 |
| &nbsp;&nbsp;&nbsp;Interest expense | 5834 | 155 | (c) | 5989 |
| &nbsp;&nbsp;&nbsp;Provision for loss sharing | 5606 |  |  | 5606 |
| &nbsp;&nbsp;&nbsp;Professional fees | 2227 | 4260 | (c), (d) | 6487 |
| &nbsp;&nbsp;&nbsp;Related Party expenses | 1348 | (1348) | (c) |  |
| &nbsp;&nbsp;&nbsp;General and administrative expenses | 11053 | (11053) | (c) |  |
|  |  | 1378 | (c) | 1378 |
|  |  | 6500 | (c) | 6500 |
| &nbsp;&nbsp;&nbsp;Total expenses | 67347 | - |  | 67347 |
| **Other income/(loss):** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Equity earnings from unconsolidated investees | (973) |  |  | (973) |
|  | (973) | - |  | (973) |
| **Net Income** | $**15544** | **-** |  | $**15544** |

---

Presented below are the adjustments made to NewPoint's Income Statement for the year ended December 31, 2024 in order to conform with the expected combined company presentation:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **NewPoint<br> Historical** | **Reclassification <br> adjustments** |  | **NewPoint<br> Historical,<br> as Reclassified** |
| **Revenue:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Servicing fees, net | $30639 | $15977 | (a) | $46616 |
| &nbsp;&nbsp;&nbsp;Servicing fees from related parties | 5211 |  |  | 5211 |
| &nbsp;&nbsp;&nbsp;Gains from mortgage banking activities | 79000 | (35496) | (b) | 43504 |
|  |  | 35522 | (b) | 35522 |
| &nbsp;&nbsp;&nbsp;Interest income | 56181 | (43786) | (a), (b) | 12395 |
| &nbsp;&nbsp;&nbsp;Change in fair value of mortgage servicing rights | (27783) | 27783 | (a) | - |
| &nbsp;&nbsp;&nbsp;Mortgage banking revenue | 143248 | - |  | 143248 |
| **Expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Compensation and benefits | 97750 | 216 | (d) | 97966 |
| &nbsp;&nbsp;&nbsp;Interest expense | 13572 | 439 | (c) | 14011 |
| &nbsp;&nbsp;&nbsp;Provision for loss sharing | 6596 |  |  | 6596 |
| &nbsp;&nbsp;&nbsp;Professional fees | 4486 | 2989 | (c), (d) | 7475 |
| &nbsp;&nbsp;&nbsp;Related party expenses | 2647 | (2647) | (c) |  |
| &nbsp;&nbsp;&nbsp;General and administrative expenses | 16623 | (16623) | (c) |  |
|  |  | 2435 | (c) | 2435 |
|  | - | 13191 | (c) | 13191 |
| &nbsp;&nbsp;&nbsp;Total expenses | 141674 | - |  | 141674 |
| **Other income/(loss):** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Equity earnings from unconsolidated investees | 2981 |  |  | 2981 |
| &nbsp;&nbsp;&nbsp;Total other income (loss) | 2981 | - |  | 2981 |
| **Net Income** | $**4555** | $**-** |  | $**4555** |

---

Reclassification adjustments have been made to the historical presentation of NewPoint to conform to the financial statement presentation of FBRT for the unaudited pro forma combined balance sheet as of June 30, 2025. Refer to the notes below for further details on the reclassification adjustments**.**

&nbsp;&nbsp;&nbsp;&nbsp;**(a)** Reflects
 the reclassification of the entire amount of NewPoint's "Operating lease right of use
 assets" ($8,118) to FBRT's classification of "Prepaid expenses and other assets"

&nbsp;&nbsp;&nbsp;&nbsp;**(b)** Reflects
 the reclassification of $4,474 from NewPoint's "Other assets" to FBRT's "Accrued
 interest receivable". Additionally, the FSLI caption "Other assets" for NewPoint
 was modified to align with FBRT's caption, "Prepaid expenses and other assets"

&nbsp;&nbsp;&nbsp;&nbsp;**(c)** Reflects
 the reclassification of $9,917 of NewPoint's "Other liabilities" to FBRT's classification
 of "Accounts payable and accrued expenses " ($8,043) and "Interest payable"
 ($1,154).

&nbsp;&nbsp;&nbsp;&nbsp;**(d)** Reflects
 the reclassification of the entire amount of NewPoint's "Operating lease liabilities"
 ($12,075) to FBRT's classification of "Other liabilities".

Reclassification adjustments have been made to the historical presentation of NewPoint to conform to the financial statement presentation of FBRT for the unaudited pro forma combined statement of income for the six months ended June 30, 2025. Refer to the notes below for further details on the reclassification adjustments.

&nbsp;&nbsp;&nbsp;&nbsp;**(a)** Reflects
 the reclassification of $19,094 from NewPoint's "Interest Income" and the entire
 "Change in fair value of mortgage servicing rights" ($338) balance to FBRT's classification
 of "Servicing Revenue". The FSLI caption for NewPoint was adjusted to conform with
 the FBRT title.

&nbsp;&nbsp;&nbsp;&nbsp;**(b)** Reflects
 the reclassification of $16,218 from NewPoint's "Gain from mortgage banking activities"
 to FBRT's "Mortgage servicing rights" ($16,218). Additionally, $10,881 of NewPoint's
 "Interest Income," with a credit balance and $74 of NewPoint's "Servicing
 Fees, net" with a debit balance was reclassified into FBRT's "Gain/(loss) on sales,
 including fee-based services, net." The FSLI caption for NewPoint was adjusted to conform
 with the FBRT title.

&nbsp;&nbsp;&nbsp;&nbsp;**(c)** Reflects
 the reclassification of the entire amount of NewPoint's "General administrative expenses"
 ($11,053) and the entire amount of NewPoint's "Related Party Expenses" ($1,348)
 to FBRT's classification of "Interest expense" ($155), "Depreciation and amortization"
 ($1,378), "Other expenses" ($6,500), and "Professional Fees" ($4,368).

&nbsp;&nbsp;&nbsp;&nbsp;**(d)** Reflects
 the reclassification of $108 from NewPoint's "Professional Fees" to FBRT's "Compensation
 and benefits" expense.

Reclassification adjustments have been made to the historical presentation of NewPoint to conform to the financial statement presentation of FBRT for the unaudited pro forma combined statement of income for the year ended December 31, 2024. Refer to the notes below for further details on the reclassification adjustments.

&nbsp;&nbsp;&nbsp;&nbsp;**(a)** Reflects
 the reclassification of $43,760 from NewPoint's "Interest Income" and the entire
 "Change in fair value of mortgage servicing rights" ($27,783) balance to FBRT's
 classification of "Servicing Revenue". The FSLI caption for NewPoint was adjusted
 to conform with the FBRT title.

&nbsp;&nbsp;&nbsp;&nbsp;**(b)** Reflects
 the reclassification of $35,522 from NewPoint's "Gain from mortgage banking activities"
 to FBRT's "Mortgage servicing rights". Additionally, $26 of NewPoint's "Interest
 Income" was reclassified into FBRT's "Gain/(loss) on sales, including fee-based
 services, net." The FSLI caption for NewPoint was adjusted to conform with the FBRT
 title.

&nbsp;&nbsp;&nbsp;&nbsp;**(c)** Reflects
 the reclassification of the entire amount of NewPoint's "General administrative expenses"
 ($16,623) and the entire amount of NewPoint's "Related party expenses" ($2,647)
 to FBRT's classification of "Interest expense" ($439), "Depreciation and amortization"
 ($2,435), "Other expenses" ($13,191), and "Professional Fees" ($3,205).

&nbsp;&nbsp;&nbsp;&nbsp;**(d)** Reflects
 the reclassification of $216 from NewPoint's "Professional Fees" to FBRT's "Compensation
 and benefits" expense.

**Note 3. Preliminary Purchase Price**

*Estimated Preliminary Purchase Price*

 

The unaudited pro forma condensed combined financial statements reflect an estimated preliminary purchase price of approximately $427.9 million. The calculation of the estimated preliminary purchase price related to the NewPoint Transaction is as follows:

---

| | |
|:---|:---|
| ***(In Thousands)*** | **Amount** |
| **Base Purchase Price (1)** | $**336965** |
| Equity Consideration (2) | 90904 |
| **Total Purchase Price** | $**427869** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Cash consideration, which is subject to possible post-closing adjustments.

&nbsp;&nbsp;&nbsp;&nbsp;(2) The 8,385,951 OP Units were priced at $10.84 per share on July 1, 2025.

The final determination of the purchase price is expected to be completed within 90 days post closing of the Transaction pursuant to the Acquisition Agreement. The allocation of the final purchase price will be completed no later than twelve months following the Acquisition Date. These final allocations will be made after certain valuation and other analyses have been completed.

**Note 4. Summary of Purchase Accounting Pro Forma Adjustments** 

*Adjustments to the Unaudited Pro Forma Combined Balance Sheet*

 

**(a)** Consideration to sellers (note amounts going to sellers will impact goodwill)

**(b)** Reflects the recognition of goodwill resulting from the transaction.

**(c)** Equity Consideration to Sellers

**(d)** Eliminate NewPoint equity

**(e)** Reflects the adjustment to remove NewPoint's historical intangible assets and to recognize the estimated fair value of the acquired NewPoint intangible assets.

**(f)** To record FBRT's estimated remaining transaction-related costs.

**(g)** Reflects the adjustment to revalue the operating lease liability.

**(h)** Reflects the adjustment to revalue the right of use asset.

 

*Adjustements to the Unaudited Pro Forma Combined Income Statement* 

 

&nbsp;&nbsp;&nbsp;&nbsp;**(j)** To record the
 pro forma amortization expense on finite-lived intangibles assets.

**(k)** Record non-recurring Transaction-related
 costs incurred by FBRT.

**(l)** Reflects the tax expense for NewPoint
 and the tax impact on the purchase accounting pro forma adjustments.

**(m)** Reflects the reclassification of the OP units as non-controlling interest.

**Note 5. Summary of Accounting Policy Alignment Pro Forma Adjustments** 

&nbsp;&nbsp;&nbsp;&nbsp;**(n)** FBRT determines the general allowance for credit losses reserve
 by incorporating detailed loan-specific characteristics, including loan-to-value (LTV) ratio, vintage year, loan term, property type,
 occupancy, and geographic location. The evaluation also considers the financial performance of the borrower, expected payments of
 principal and interest, as well as qualitative factors, utilizing both internal or external information. This approach incorporates
 past events, current conditions, and forward-looking information through the use of projected macroeconomic scenarios over reasonable
 and supportable forecasts. This adjustment reflects the alignment of NewPoint's credit loss
 estimation methodology with that of FBRT's methodology, thereby aligning with FBRT's broader credit risk framework and strategic
 objectives.

**(o)** FBRT recognizes Mortgage Servicing Rights (MSRs) using
 the amortization method, under which MSRs are initially recorded at cost and subsequently amortized over the period of estimated
 net servicing income. Because NewPoint's accounting policy is to utilize the fair value method, whereby MSRs are measured at fair
 value with changes in value reported in Servicing Revenue, this adjustment reflects the net change in the amount of Servicing Revenue
 and Mortgage Servicing Rights Income during the period to conform NewPoint's accounting policy to that of FBRT.

**(p)** Reflects the tax expense related to the accounting
 policy alignment pro forma adjustments.