Franklin BSP Realty Trust, Inc. (NYSE: FBRT) (“FBRT” or “the Company”) today announced the successful disposition of its largest foreclosure real estate owned (REO) asset, a multifamily property located in Raleigh, North Carolina, which closed on April 1, 2026. The sale marks an important step in the Company’s ongoing strategy to recycle capital out of non-performing assets and redeploy it into higher-yielding opportunities. While the transaction was completed at a discount to carrying value, the Company views the outcome as a constructive advancement in resolving legacy assets and strengthening overall portfolio performance.

“The successful disposition of our largest REO asset represents a meaningful milestone in unlocking value across our portfolio,” said Brian Buffone, President of FBRT. “We remain well positioned to execute additional REO resolutions in the near term, as we continue to prioritize redeploying capital into performing loans and driving forward momentum.”

In connection with the sale, FBRT also provided financing to the buyer, immediately converting the asset into an income-generating investment.

“This transaction underscores our ability to transform a non-performing asset into a performing one in a single step, with an immediate positive impact on earnings,” said Michael Comparato, Chief Executive Officer of FBRT. “While we are not fully beyond the challenges associated with our 2021–2022 originations, we are closer than ever to that inflection point and encouraged by the progress we are making.”

About Franklin BSP Realty Trust, Inc.

Franklin BSP Realty Trust, Inc. (NYSE: FBRT) is a real estate investment trust that originates, acquires and manages a diversified portfolio of commercial real estate debt secured by properties located in the United States. As of December 31, 2025, FBRT had approximately $6.1 billion in assets. FBRT is externally managed by Benefit Street Partners L.L.C., a wholly owned subsidiary of Franklin Resources, Inc. For further information, please visit www.fbrtreit.com.

Forward-Looking Statements

Certain statements included in this press release are forward-looking statements. Those statements include statements regarding the intent, belief or current expectations of FBRT and members of our management team, as well as the assumptions on which such statements are based, and generally are identified by the use of words such as "may," "will," "seeks," "anticipates," "believes," "estimates," "expects," "plans," "intends," "should" or similar expressions. Actual results may differ materially from those contemplated by such forward-looking statements. Further, forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law. FBRT's forward-looking statements are subject to various risks and uncertainties. Factors that could cause actual outcomes to differ materially from our forward-looking statements include macroeconomic factors in the United States including, but not limited to, inflation, changing interest rates and economic contraction, the extent of any recoveries on delinquent loans, the financial stability of our borrowers and the other risks and important factors contained and identified in FBRT’s filings with the Securities and Exchange Commission (“SEC”), including its Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and its subsequent filings with the SEC, any of which could cause actual results to differ materially from the forward-looking statements. The forward-looking statements included in this communication are made only as of the date hereof.

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