Cash conversion efficiency remains strained, evidenced by a negative $54.0 million in operating cash flow during 2026Q1 despite the company reporting $15.4 million in FFO.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Cash from Operations | 121.69M | 291.94M | 57.23M | 197.39M | 152.51M | 146.5M | 115.33M | 45.37M | 7.1M | 8.35M | 35.02M | 25.43M | 2.69M | 776K | 0 |
| Operating CF Growth % | 785.39% | 410.09% | -71% | 29.42% | 4.11% | 27.02% | 154.21% | 539.18% | -15.03% | -76.15% | 37.71% | 847.23% | 246.01% | - | - |
| Operating CF / Revenue % | 30.34% | - | 10.43% | 34.66% | 41.52% | 66.09% | 62.62% | 22.86% | 4.66% | 9.33% | 44.11% | 42.82% | 21.14% | 104.44% | - |
| Net Income | 71.75M | 82.27M | 92.4M | 145.22M | 14.21M | 25.7M | 54.75M | 83.92M | 52.83M | 33.78M | 29.99M | 24.93M | 5.42M | 102K | -96K |
| Depreciation & Amortization | 4.15M | 0 | 5.63M | 7.13M | 5.33M | 2.11M | 2.23M | 3.44M | 8.11M | 2.1M | 1.71M | 1.26M | 80K | 0 | 0 |
| Stock-Based Compensation | 9.28M | 9.12M | 8.17M | 4.76M | 2.52M | 211K | 193K | 156K | 157K | 97K | 44K | 30K | 28.16K | 15.88K | 0 |
| Other Non-Cash Items | 37.97M | 189.66M | -51.61M | 42.56M | 124.95M | 2.79M | 41.75M | -43.85M | -41.82M | -23.53M | 424K | 190K | 311.84K | 1.01M | 96K |
| Working Capital Changes | -1.38M | 10.89M | 2.63M | -2.27M | 5.5M | 102.56M | -2.92M | 5.14M | -8.92M | -1.29M | 1.06M | -38K | -3.07M | -355K | 0 |
| Cash from Investing | -152.25M | 380.81M | -155.47M | 380.81M | 3.1B | 1.07B | 240.69M | -969.24M | -855.81M | -332.76M | 139.41M | -749.85M | -471.64M | -35.76M | 0 |
| Acquisitions (Net) | -297.31M | 0 | 0 | 0 | 0 | 174.08M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Purchase of Investments | -679.09M | 0 | -79.5M | -223.77M | -221.79M | -2.88B | -149.39M | -368.58M | -40.31M | -592K | 1.21B | -85.46M | -45.6M | -5.01B | 0 |
| Sale of Investments | 152.34M | 0 | 154.48M | 0 | 3.73B | 2.06B | 346.2M | 9.37M | 12.46M | 49.89M | 81.3M | 3.01M | 0 | 0 | 0 |
| Other Investing | 671.81M | 380.81M | -230.45M | 604.58M | -411.99M | -1.17B | 43.88M | -610.03M | -827.96M | -382.05M | -1.15B | -667.39M | -471.64M | -35.76M | 0 |
| Cash from Financing | -57.1M | -684.43M | -48.58M | -424.99M | -3.23B | -1.14B | -373M | 828.58M | 961.43M | 290.07M | -71.54M | 738.84M | 469.16M | 35.16M | 6K |
| Dividends Paid | -109.34M | -145.58M | -144.91M | -144.35M | -139.41M | -67.95M | -49.79M | -60.61M | -36.95M | -38.83M | -40.25M | -26.95M | -7.59M | -286K | 0 |
| Common Dividends | -109.34M | -145.58M | -144.91M | -144.35M | -139.41M | -67.95M | -49.79M | -60.61M | -36.95M | -38.83M | -40.25M | -26.95M | -7.59M | -286.58K | 0 |
| Debt Issuance (Net) | 0 | -1000K | 1000K | -1000K | -1000K | -1000K | -1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 0 |
| Share Repurchases | -51.8M | -14.37M | -4.87M | -12.51M | -16.58M | -11.42M | -10.26M | -13.81M | -15.09M | -20.55M | -18.96M | -2.56M | -464K | -35K | 0 |
| Other Financing | -129.12M | -9.68M | -17.63M | -3.07M | 64.63M | -9.52M | 0 | 0 | 0 | -11.96M | 793K | -50.66M | -67K | 956.26K | 6K |
| Net Change in Cash | -87.66M | -11.68M | -146.82M | 153.2M | 22.29M | 76.06M | -16.98M | -95.3M | 112.71M | -34.34M | 102.9M | 14.42M | 208K | -395K | 6K |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 469.23M | 0 | 0 |
| Cash at Beginning | 185.18M | 196.86M | 343.69M | 190.49M | 168.2M | 92.14M | 109.12M | 204.42M | 91.71M | 118.05M | 20.17M | 386K | 178K | 573K | 0 |
| Cash at End | 136.44M | 185.18M | 196.86M | 343.69M | 190.49M | 168.2M | 92.14M | 109.12M | 204.42M | 83.71M | 123.07M | 14.81M | 386K | 178K | 6K |
| Free Cash Flow | 121.33M | 291.94M | 57.23M | 197.39M | 151.85M | 3.03B | 115.33M | 45.37M | 7.1M | 8.35M | 35.02M | 25.43M | 2.69M | 776K | 0 |
| FCF Growth % | -24.41% | 410.09% | -71% | 29.99% | -94.98% | 2525.35% | 154.21% | 539.18% | -15.03% | -76.15% | 37.71% | 847.23% | 246.01% | - | - |
| FCF / Revenue % | 30.25% | - | 10.43% | 34.66% | 41.34% | 1366.09% | 62.62% | 22.86% | 4.66% | 9.33% | 44.11% | 42.82% | 21.14% | 104.44% | - |
Dividend coverage sustainability concerns
As reported in financial statements, FBRT's dividend payout ratio reached 1.61x AFFO in 2025Q4, indicating that the company is currently distributing significantly more cash than its core operations generate, a trend that warrants close investigation regarding the long-term sustainability of current shareholder distributions.
The consistent inability to cover the dividend with AFFO suggests that the company may be relying on capital recycling or balance sheet liquidity to maintain payouts. Investors should monitor whether this payout trajectory forces a dividend reset, as the current margin of safety appears insufficient to absorb potential credit-related cash flow volatility.
Based on the provided quarterly data, FBRT exhibits a significant disconnect between FFO and GAAP operating cash flow, with OCF swinging to a negative $54.0 million in 2026Q1 while FFO remained positive at $15.4 million, highlighting the volatility inherent in the company's cash conversion cycle.
This wide variance suggests that GAAP operating cash flow is heavily distorted by working capital fluctuations and the timing of loan repayments. The reliance on FFO as a primary performance metric may mask underlying liquidity pressures that are more clearly reflected in the erratic swings of the operating cash flow statement.
According to recent SEC filings, the FFO to Net Income ratio has shown extreme instability, reaching 16.20x in 2025Q4, which indicates that non-cash charges and accounting adjustments are creating a substantial wedge between reported GAAP earnings and the actual cash-based performance of the mortgage portfolio.
The magnitude of these adjustments implies that GAAP net income is an unreliable indicator of the company's true economic health. Analysts should interpret these figures with caution, as the frequent divergence suggests that significant non-cash provisions for credit losses are likely suppressing reported earnings relative to the actual cash yield of the assets.
As indicated by the financial data, the company's cash flow statement frequently masks the impact of non-cash interest accruals and potential PIK income, which may be inflating the perceived quality of earnings while failing to provide the necessary liquidity to support the current dividend payout levels.
The absence of consistent AFFO reporting across multiple quarters makes it difficult to assess the true cash-generating capacity of the portfolio. This lack of transparency may hide the extent to which the company is capitalizing interest on stressed loans, potentially overstating the cash available for distribution to shareholders.
Quick answers to the most common questions about buying FBRT stock.
Franklin BSP Realty Trust, Inc. (FBRT) generated $291.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Franklin BSP Realty Trust, Inc. (FBRT) generated $291.9M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Franklin BSP Realty Trust, Inc. (FBRT) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Franklin BSP Realty Trust, Inc. (FBRT) returned $145.6M to shareholders via cash dividends and spent $14.4M on share repurchases. This shows the company's commitment to returning capital to its equity investors.