Franklin BSP Realty Trust reports $28.4M loan fraud loss; files lawsuit, obtains asset freeze

Franklin BSP Realty Trust, Inc.

On July 26, 2022, subsidiary filed lawsuit in Dallas County, TX against borrower, sponsor, guarantors for fraud on $113.2M loan secured by 24 Walgreens properties.
Borrower provided ~100 forged documents inflating property values; confessed to fraud. Court issued TRO freezing assets of borrower, sponsor, and parents.
Company recognized $28.4M credit loss provision as of June 30, 2022 based on estimated collateral value net of sales costs.
Initiating foreclosure proceedings, redirecting Walgreens rents directly, enforcing personal guarantees, and referring fraud to criminal authorities.
Also issued Q2 2022 earnings press release and supplemental presentation; no specific figures provided in this filing excerpt.

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