Franklin BSP Realty Trust to acquire NewPoint Holdings

Published 10/03/2025, 21:22
Franklin BSP Realty Trust to acquire NewPoint Holdings

NEW YORK - Franklin BSP Realty Trust, Inc. (NYSE: FBRT), a real estate investment trust (REIT) with a market capitalization of $10.5 billion, has announced its definitive agreement to purchase NewPoint Holdings JV LLC, a commercial real estate finance firm. According to InvestingPro analysis, FBRT maintains a FAIR overall financial health score, with particularly strong performance in cash flow management. The acquisition, expected to finalize in the third quarter of 2025, is subject to regulatory approvals and customary closing conditions.

Richard Byrne, CEO of FBRT, expressed confidence that the acquisition is a transformative step for the company, aiming to enhance its multifamily lending offerings and increase its total addressable market. Michael Comparato, President of FBRT, emphasized the strategic importance of adding agency capabilities to FBRT’s platform, noting the cultural alignment between the two companies.

The deal is anticipated to be accretive to FBRT’s GAAP earnings per share in the first half of 2026 and to its fully converted distributable earnings per share in the second half of 2026. It is also expected to increase the fully converted book value per share in the first half of 2026. Based on InvestingPro Fair Value analysis, FBRT currently appears undervalued, suggesting potential upside from this strategic acquisition. For deeper insights into company valuations and strategic opportunities, explore InvestingPro’s comprehensive research reports covering over 1,400 US equities.

FBRT plans to finance the acquisition with existing cash, debt, and equity issuance. NewPoint’s $54.7 billion servicing portfolio is projected to provide a stable income stream and potential book value growth for FBRT.

With this acquisition, FBRT will expand its multifamily operations to include agency and mortgage servicing, enhancing its market presence. NewPoint, approved by federal entities for multifamily origination and servicing, will enable FBRT to originate agency mortgage loans and manage a diverse mortgage finance platform. FBRT has demonstrated strong financial performance with revenue growth of 11% over the last twelve months and maintains a healthy dividend yield of 6.3%, reflecting its commitment to shareholder returns.

Barclays acted as financial advisor to FBRT, with Hogan Lovells US LLP and Reed Smith LLP as legal counsel. BofA Securities advised NewPoint, with Paul, Weiss, Rifkind, Wharton & Garrison LLP as legal counsel.

FBRT will discuss the acquisition details in a conference call and live audio webcast on Tuesday, March 11, 2025, at 9:00 a.m. ET.

This news is based on a press release statement and contains forward-looking statements regarding the acquisition’s potential benefits and timing. The actual results may differ from those projected.

In other recent news, Franklin Resources, commonly known as Franklin Templeton, reported its preliminary month-end assets under management (AUM) totaling $1.58 trillion as of February 28, 2025. This figure remained steady from the previous month, despite experiencing long-term net outflows of $10 billion, primarily from its subsidiary, Western Asset Management. In a significant development, Franklin Templeton launched a new exchange-traded product (ETP), the Franklin Crypto Index ETF (EZPZ), offering exposure to bitcoin and ether. This move is part of the firm’s strategy to expand its digital asset offerings, with the ETP’s sponsor fee waived until August 31, 2025.

Additionally, the California State Teachers’ Retirement System (CalSTRS) announced its decision to withdraw approximately $1 billion from Western Asset Management amid fraud charges against a former trader. In corporate governance updates, Franklin Resources re-elected its 11-member board of directors and ratified PricewaterhouseCoopers LLP as its independent auditor for the fiscal year ending September 30, 2025. Furthermore, TD Cowen maintained a Hold rating on Franklin Resources while raising the price target to $20, reflecting anticipated cost savings of $200-250 million by fiscal year 2027. These developments highlight the company’s ongoing efforts to navigate market dynamics and maintain investor confidence.

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