AlphaMadera

FBRT Franklin BSP Realty Trust, Inc.

$7.78

Real Estate Investment Trust 85%

P/FFO × Default REIT Multiple

Strong · Conviction

Undervalued

Trading 65.3% below fair value

You pay $7.78

Bear $18.63

Fair $22.45

Bull $26.27

Bear $18.63 +139.5% $1.11 FFO × 18x

Fair $22.45 +188.6% $1.11 FFO × 22x

Bull $26.27 +237.7% $1.11 FFO × 26x

Adjust Assumptions

P/FFO Multiple

22.1x

FFO per Share

1.11$

Key Value Driver

FFO/share ($1.11) × default P/FFO multiple

Terminal Value % of EV

Implied Market Multiple 7.0x

Market is pricing in (growth)

Summary

At $1.11 FFO/share with a 22x default REIT multiple, the base-case value is $22.45 per share. Dividend yield: 12.3%. DDM cross-check: $17.80.

Warnings

⚠ Standard profit figures are misleading for real estate companies — large non-cash accounting charges make profits look artificially low. Dividend yield and funds from operations are better measures.

⚠ Dividend yield of 12.3% is unusually high — make sure the company generates enough cash to keep paying it.

Key Risks

P/E and EV/EBITDA are structurally wrong for REITs — use P/FFO and NAV
Interest rate sensitivity: REIT multiples compress when rates rise
FFO approximation (NI + D&A) may include gains on property sales — verify