Is FBRT (Franklin BSP Realty Trust, Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, FBRT is Not Halal (Haram) and is not considered permissible for Muslim investors. It failed 2 of 4 compliance screens. Its debt-to-market-cap ratio of 569.43% exceeds the ≤33% threshold. Its interest income of 77.51% exceeds the ≤5% limit.

Franklin BSP Realty Trust, Inc. (FBRT) is a real estate finance company that originates, acquires, and manages a portfolio of commercial real estate debt secured by properties across the United States. The company's operations heavily involve investing in conduit loans, first mortgages, mezzanine loans, bridge loans, and occasionally owning real estate acquired through foreclosure. For Muslim investors screening stocks on HalalStocks.co.uk, FBRT is classified as Not Halal (Haram). While its base industry classification technically passes the initial business activity screen, the stock completely fails the financial screening criteria, making it strictly impermissible for Islamic portfolios. The primary concerns from an Islamic finance perspective are the company's massive debt load and heavy reliance on interest-based earnings. Its debt-to-market cap ratio is an extreme 569.4%, and a highly problematic 77.51% of its revenue comes directly from interest income, both well above the permissible AAOIFI thresholds. Because FBRT operates as a mortgage REIT dealing almost exclusively in interest-bearing commercial real estate debt instruments, its core operational model conflicts fundamentally with Islamic principles against riba. Muslim investors should avoid this stock entirely, as its structural reliance on interest means it is highly unlikely to ever achieve shariah compliance. Franklin BSP Realty Trust, Inc. operates in the Real Estate sector under the REIT - Mortgage industry and is headquartered in New York City, NY, US. The company is led by CEO Michael Comparato and employs approximately 223 people.

FBRT was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. FBRT passed 2 of these 4 screens.

FBRT was last screened on 2026-04-27. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.