Richard Byrne, CEO and chairman of Franklin BSP Realty Trust Inc. (NYSE: FBRT), sat down for a video interview during Nareit’s REITweek: 2025 Investor Conference in New York City on June 2-5.
Byrne outlined key growth drivers for the firm over the next six to 12 months, emphasizing that the current market dislocation has opened significant lending opportunities as many traditional competitors, especially regional banks, remain on the sidelines. “We’re getting looks at really attractive properties at really attractive terms,” Byrne said, highlighting the firm’s ability to capitalize on favorable deal flow.
A major strategic move is Franklin BSP’s pending acquisition of NewPoint, an agency lender originating loans through government-sponsored entities like Fannie Mae, Freddie Mac, and HUD. Byrne explained that the acquisition offers vertical integration in multifamily lending, providing both transitional and permanent financing options. “The opportunity to cross-originate is enormous,” he noted.
Byrne also pointed out that NewPoint’s servicing business offers a stable revenue stream and the potential to generate mortgage servicing rights, which can help grow book value—a significant advantage in a sector often challenged by declining book values. “Having the ability to grow book value...creates a really great distinguishing factor for us,” he said.
On balance sheet management, Byrne stressed Franklin BSP’s leadership in securitization, with 80-90% of its balance sheet funded through match-term, non-recourse securitizations, and relatively low leverage. Despite industry-wide declines in origination volumes, Byrne remained optimistic: “We’re seeing some of the most attractive deals [that] we’ve seen in a very long time.”