10 Cheap REITs with Huge Upside

8. Franklin BSP Realty Trust, Inc. (NYSE:FBRT)

Average Upside Potential: 15.92%

Forward P/E: 7.72

Number of Hedge Funds: 8

Franklin BSP Realty Trust, Inc. (NYSE:FBRT) originates, acquires, and manages a diversified portfolio of commercial real estate debt primarily first mortgage loans. The REIT’s portfolio of debt investments is generally secured by real estate located in the United States. Additionally, the firm invests in subordinate loans, mezzanine loans, and securities. FBRT had approximately $6.3 billion of assets, as of June 30.

The firm maintains a diversified portfolio that is capable of generating attractive risk-adjusted returns and a stable income. One of the strengths of the REIT is that the process is handled internally including the origination, underwriting, and asset management. The REIT also boasts a strong network of broker and borrower relationships which leads to proprietary deal flow and an extensive pipeline of investment opportunities.

Franklin BSP Realty Trust, Inc. (NYSE:FBRT) continues to take advantage of attractive market opportunities. It closed $622 million of new loan commitments at a weighted average spread of 318 basis points in Q2. The REIT has originated $1.2 billion of new loan commitments year-to-date in 2024. The REIT has been actively originating loans in the middle market. In September, FBRT announced the closing of a $1.024 billion Commercial Real Estate Collateralized Loan Obligation.

Franklin BSP Realty Trust, Inc. (NYSE:FBRT) has a diversified portfolio of senior, floating rate loans, a national origination footprint, an experienced real estate team, and a credit-focused culture. As of October 24, the average upside for the stock is 15.92%.