{"data":{"id":"sw_16521bf60285a15528a5","slug":"franklin-bsp-realty-trust-s-series-e-preferred-trades-past-call-date-yields-over","title":"Franklin BSP Realty Trust's Series E Preferred Trades Past Call Date, Yields Over 10%","subheadline":"The 7.5% cumulative preferred has been callable since 2018 yet still trades about 28% below par, a gap market watchers attribute to rate and credit conditions rather than any single catalyst.","summary":"Franklin BSP Realty Trust's 7.5% Series E preferred has traded past its 2018 call date for eight years, yielding over 10% while sitting well below its $25 par value, a persistence that raises questions about redemption timing and credit perception.","body":"Franklin BSP Realty Trust's 7.5% Series E cumulative preferred stock has been eligible for redemption since May 13, 2018, yet it continues to trade on the open market nearly eight years later, last changing hands around $17.84 to $18.00 a share against a $25 liquidation preference. At that price, the security carries a current yield above 10%, with the stock sitting roughly 28% below its original par value, a gap that has persisted even as the call option has remained available to the issuer for close to a decade.\n\nThe pattern first stood out in data tracked on Preferred Stock AI, a Madison Labs research site, which flags the issue as \"now trading post call date\" alongside its 7.500% original coupon, $1.8750 annual dividend, and cumulative distribution feature. A preferred stock trading past its call date simply means the issuer has not exercised its right to redeem shares at par, leaving the security to trade based on market supply and demand rather than an impending buyback price. For FBRT'E, that has meant years of trading at a discount while the market has not priced in redemption as an imminent event.\n\nFor income focused investors, the dynamic illustrates a structural feature of perpetual preferred stocks: the call date is an option for the issuer, not an obligation, and companies can choose to leave higher coupon preferred shares outstanding rather than refinance them, particularly if replacing the 7.5% coupon would require issuing new securities at a similarly high or higher rate in current market conditions. The discount to par also means an investor purchasing shares today near $17.84 to $18.00 would, assuming no change in price, capture a yield on cost above the 7.5% stated coupon rate, though the shares carry the same credit and market risks as any perpetual security with no maturity date.\n\nFranklin BSP Realty Trust is a Maryland based real estate investment trust externally managed by Benefit Street Partners L.L.C., a credit focused investment advisor founded in 2008 that oversees high yield, private debt, structured credit, and commercial real estate debt strategies. The REIT operates through a Commercial Real Estate Financing segment and an Agency Business, the latter expanded in July 2025 through the acquisition of NewPoint Holdings JV LLC. The Series E preferred itself was issued in May 2013 with 6.9 million shares offered, carrying a $25 liquidation preference, quarterly cumulative dividends, and limited conversion rights tied to a change of control, according to the terms outlined in the company's SEC prospectus.\n\nThe broader backdrop for the issuer has been active in recent weeks. BTIG Research downgraded Franklin BSP Realty Trust to Neutral in mid September, according to a report from thelincolnianonline.com, around the same time the company announced the reinstatement of Richard J. Byrne as chief executive officer alongside a new co-president appointment, as reported by kalkinemedia.com. The common stock, which traded around $6.16 most recently, sits well below its 52 week high of $11.35, reflecting a decline in the equity even as the preferred shares have continued to pay their quarterly cumulative dividend, most recently $0.468750 per share with an ex-date of September 30, 2026.\n\nFranklin BSP Realty Trust has scheduled its third quarter 2026 earnings release and conference call, according to a Yahoo Finance report, giving investors a near term opportunity to hear management's commentary on capital allocation, including any discussion of outstanding preferred share redemptions. Market participants watching mortgage REIT preferred stocks more broadly will likely continue to weigh how issuers across the sector treat legacy fixed rate preferred issues that are well past their call windows, since refinancing decisions depend on an issuer's cost of capital relative to the coupon already locked in. For FBRT'E specifically, the persistence of the discount to par alongside the still active call option leaves open questions about timing that only the company's future capital decisions, not the market price alone, can resolve. No redemption announcement for the Series E preferred has been made as of the most recent trading session reflected in the data reviewed.","source":{"name":"Preferred Stock AI","slug":"preferredstock-ai"},"category":"Preferred Stocks","article_type":"News","license":"Free to republish, in full or in part, with attribution to Capital Data Wire and a link to the original article. No fees, registration, or permission required.","quality_score":83,"human_reviewed":false,"original_url":"https://preferredstock.ai/symbol/FBRT-P-E","featured_image":null,"published_at":"2026-10-08T11:25:25.318437+00:00","updated_at":"2026-10-08T11:25:25.318437+00:00","is_demo":false,"attribution":"Via Capital Data Wire. Discovered via Preferred Stock AI.","attribution_html":"Via Capital Data Wire. Discovered via Preferred Stock AI."},"meta":{"demo_data":false}}