Business Wire
Franklin BSP Realty Trust, Inc. Announces Acquisition of NewPoint Holdings JV LLC
Business Wire
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Creating a Comprehensive One-Stop Client Solution, Enhancing Long-Term Stockholder Value

NEW YORK, March 10, 2025--(BUSINESS WIRE)--Franklin BSP Realty Trust, Inc. (NYSE: FBRT) ("FBRT" or the "Company"), a leading real estate investment trust, today announced that it has entered into a definitive agreement to acquire NewPoint Holdings JV LLC ("NewPoint"), a privately held commercial real estate finance company headquartered in Plano, Texas. The transaction is expected to close in the third quarter of 2025, subject to customary closing conditions, including regulatory approvals.

Richard Byrne, CEO of FBRT and Chairman of the FBRT Board of Directors, said, "We are pleased to announce our acquisition of NewPoint, which is a transformative transaction for FBRT. This strategic expansion of our multifamily lending offerings significantly increases our total addressable market in our highest conviction sector. We anticipate this transaction will enable FBRT to deliver long-term stockholder value and creates a clear path for FBRT to be able to trade at a premium to book value."

Further commenting on the acquisition, Michael Comparato, President of FBRT, added, "For years we have been looking to add agency capabilities to the FBRT platform, which already boasts one of the most extensive product offerings in the market. We believe this transaction is the final piece to complete our ‘one stop shop’ puzzle and is even more compelling given the strong cultural alignment between the two teams. We're excited to build on the momentum of this acquisition alongside the NewPoint team, who worked tirelessly in close partnership with us to finalize this deal."

This strategic acquisition expands FBRT’s capabilities across multiple business lines, creating a diversified mortgage finance platform with significant synergies. We expect the combined entity to benefit from:

  • Increased Earnings Power: In addition to potential book value growth, we expect the combined operations will provide an opportunity for earnings growth. The acquisition is expected to be accretive to GAAP earnings per share in the first half of 2026 and fully converted(i) Distributable earnings per share in the second half of 2026. The acquisition is expected to increase fully converted(i) book value per share in the first half of 2026.

  • Diversified Business Lines: The acquisition expands FBRT’s multifamily operations to include agency and mortgage servicing alongside our existing commercial real estate lending products, which include bridge lending, subordinate lending, construction lending, and CMBS.

  • Agency Originations: NewPoint is one of 19 multifamily originators and servicers approved by three government sponsored entities (Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, and U.S. Department of Housing and Urban Development). FBRT will now be able to originate agency mortgage loans. This will facilitate an exit strategy for FBRT’s multifamily bridge loan portfolio, which represents 71% of our book, and significantly broaden FBRT’s market reach.

  • Mortgage Servicing Rights Portfolio: NewPoint's existing $54.7 billion servicing portfolio provides a predictable and durable income stream. The mortgage servicing rights (MSRs) on Agency loans will be held as an asset on FBRT’s consolidated balance sheet and provide an avenue for potential book value growth.

  • Enhanced Market Presence: NewPoint’s agency origination and servicing portfolio, together with the capabilities of FBRT’s external manager, Benefit Street Partners L.L.C. ("BSP"), will give FBRT a stronger market presence and wider geographic footprint, enhancing our local access and market intelligence.

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