Franklin BSP (FBRT) Outlook Supported by NewPoint Acquisition and Reliable Revenue Streams

Franklin BSP Realty Trust, Inc. (NYSE:FBRT) ranks among the most undervalued REIT stocks to buy right now. Following Franklin BSP Realty Trust, Inc. (NYSE:FBRT)’s third-quarter 2025 results, Citizens reaffirmed its Market Outperform rating and $13.50 price target on the company’s shares. The firm underlined Franklin BSP’s strong credit performance, which allows the company to utilize capital aggressively as it moves through 2026.

Franklin BSP Realty Trust, Inc. (NYSE:FBRT) reported revenues of $90.12 million, a 66% increase year-over-year. This print outperformed analysts’ forecasts by 10.7%. Despite the revenue beat, the company had a sluggish quarter, falling significantly short of analysts’ net interest income and EPS projections.

More positively, Citizens cited the NewPoint acquisition as an important bonus, noting that it comprises GSE licenses and a servicing portfolio with reliable revenue streams. Speaking on the acquisition, Michael Comparato, President of Franklin BSP Realty Trust, Inc. (NYSE:FBRT), said the following:

“The third quarter was a transitional period for FBRT, highlighted by the successful $425 million acquisition of NewPoint. Integration is progressing very well, and we’ve made meaningful progress on the three-pronged plan to grow distributable earnings.”

Franklin BSP Realty Trust, Inc. (NYSE:FBRT) originates, acquires, and manages a diversified portfolio of commercial real estate debt primarily first mortgage loans.

While we acknowledge the potential of FBRT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds.

Disclosure: None. This article is originally published at Insider Monkey.