Franklin BSP Realty Trust, Inc. (FBRT) Monday has entered into a definitive agreement to acquire NewPoint Holdings JV LLC, a commercial real estate finance company based in Plano, Texas. The transaction, subject to regulatory approvals and customary closing conditions, is expected to be finalized in the third quarter of 2025.
FBRT CEO Richard Byrne described the acquisition as a transformative move, expanding the company's multifamily lending capabilities and strengthening its market presence. President Michael Comparato emphasized the strategic alignment between both companies, positioning FBRT as a comprehensive real estate finance provider.
The acquisition is expected to enhance FBRT's earnings, diversify its business lines, and integrate agency mortgage originations, servicing rights, and a broader market footprint. NewPoint's $54.7 billion servicing portfolio will contribute to a stable income stream and potential book value growth.
FBRT plans to finance the acquisition through a mix of cash, debt, and equity issuance, operating the acquired business through a taxable REIT subsidiary. The company will host an investor call on March 11, 2025, at 9:00 a.m. ET to discuss the transaction.
Monday, FBRT closed at $13.30, down 0.60%, and declined further to $13.27, down 0.23%, in after-hours trading on the NYSE.
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