TPG RE Finance Trust, Inc. Reports Operating Results for the Fourth Quarter and Full Year Ended December 31, 2019
February 18 2020 - 8:28PM
Business Wire
TPG RE Finance Trust, Inc. (NYSE: TRTX) (“TRTX” or the
“Company”) reported its operating results for the fourth quarter
and full year ended December 31, 2019. For the fourth quarter of
2019, GAAP net income attributable to common stockholders was $32.6
million, earnings per diluted common share was $0.44, and book
value per common share at December 31, 2019 was $19.78.
FOURTH QUARTER 2019 HIGHLIGHTS
- Generated GAAP net income attributable to common stockholders
of $32.6 million, or $0.44 per diluted common share, based on a
weighted average share count of 74.5 million common shares
- Closed seven new loan commitments totaling $653.7 million, with
an average loan size of $93.4 million, an initial unpaid principal
balance of $561.1 million, a weighted average credit spread of 290
bps, and a weighted average loan-to-value of 61.7%
- Closed TRTX 2019-FL3, a $1.2 billion managed CRE CLO with a
24-month reinvestment period and a weighted average interest rate
at issuance of LIBOR plus 1.44%, before transaction costs
- Declared cash dividends of $32.8 million, or $0.43 per common
share, representing an 8.7% annualized dividend yield based on a
book value per common share of $19.78
- Issued 1.9 million common shares via our at-the-market (“ATM”)
continuous offering program, which generated proceeds of $38.0
million at an average price per share of $20.42, before dealer
commissions
FULL YEAR 2019 HIGHLIGHTS
- Generated GAAP net income attributable to common stockholders
of $125.6 million, or $1.73 per diluted common share, based on a
weighted average share count of 72.7 million common shares, an
increase of 9.7 million common shares (15.4%) from the prior
year
- Grew our investment portfolio to $6.4 billion from $5.0
billion, an increase of $1.4 billion, or 28.0%, from 2018, driven
by an increase in our loan portfolio commitments to $5.6 billion
from $4.9 billion, a net increase of 13.8%, or $0.7 billion, from
2018
- Originated $2.9 billion of floating rate, primarily first
mortgage transitional loans with an initial unpaid principal
balance of $2.4 billion, an average loan size of $91.5 million, a
weighted average as-is loan-to-value ratio of 63.9%, and a weighted
average credit spread of L + 335 bps
- Increased our equity capital base by $174.5 million via (i) a
$136.5 million underwritten public offering in March 2019 of 6.9
million common shares at $19.80 per share, and (ii) issuance via
our ATM during the fourth quarter of 1.9 million common shares,
which generated proceeds of $38.0 million at an average price per
share of $20.42, before dealer commissions
Greta Guggenheim, Chief Executive Officer, stated: “Throughout
2019, TRTX demonstrated the power of its direct lending platform
and its affiliation with TPG. We originated $2.9 billion in new
loans with a conservative weighted average LTV of 63.9%. Despite
declining yields across all fixed income investments, we covered
our dividend with operating earnings and increased book value to
$19.78 per share. We carefully selected investments supported by
continued reductions in financing costs to sustain our asset-level
ROE. In the 10 quarters since our IPO, we have distinguished
ourselves through our operating performance, portfolio growth and
portfolio construction. We believe this validates our investment
and operating discipline and is a firm foundation for continued
growth.”
The Company issued a supplemental presentation detailing its
fourth quarter and full year 2019 operating results, which can be
viewed at http://investors.tpgrefinance.com/.
CONFERENCE CALL AND WEBCAST INFORMATION
The Company will host a conference call and webcast to review
its financial results with investors and other interested parties
at 8:30 a.m. ET on Wednesday, February 19, 2020. The call will be
hosted by Greta Guggenheim, Chief Executive Officer, and Bob Foley,
Chief Financial and Risk Officer. To participate in the conference
call, callers from the United States and Canada should dial +1
(877) 407-9716, and international callers should dial +1 (201)
493-6779, ten minutes prior to the scheduled call time. The webcast
may also be accessed live by visiting the Company’s investor
relations website at http://investors.tpgrefinance.com/event.
REPLAY INFORMATION
A replay of the conference call will be available after 11:30
a.m. ET on Wednesday, February 19, 2020 through 11:59 p.m. ET on
Wednesday, March 4, 2020. To access the replay, listeners may use
+1 (844) 512-2921 (domestic) or +1 (412) 317-6671 (international).
The passcode for the replay is 13697991. The recorded replay will
be available on the Company’s website for one year after the call
date.
ABOUT TRTX
TPG RE Finance Trust, Inc. is a commercial real estate finance
company that focuses primarily on originating, acquiring, and
managing first mortgage loans and other commercial real
estate‐related debt instruments secured by institutional properties
located in primary and select secondary markets in the United
States. The Company is externally managed by TPG RE Finance Trust
Management, L.P., a part of TPG Real Estate, which is the real
estate investment platform of TPG. TPG is a global alternative
asset firm with a 25-year history and more than $119 billion of
assets under management. For more information regarding TRTX, visit
www.tpgrefinance.com.
FORWARD-LOOKING STATEMENTS
The information contained in this earnings release contains
“forward‐looking statements” within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These forward‐looking
statements are subject to various risks and uncertainties,
including, without limitation, statements relating to the
performance of the Company’s investments, the Company’s ability to
originate loans that are in the pipeline and under evaluation by
the Company, and financing needs and arrangements. Forward‐looking
statements are generally identifiable by use of forward‐looking
terminology such as “may,” “will,” “should,” “potential,” “intend,”
“expect,” “endeavor,” “seek,” “anticipate,” “estimate,” “believe,”
“could,” “project,” “predict,” “continue” or other similar words or
expressions. Forward‐looking statements are based on certain
assumptions, discuss future expectations, describe existing or
future plans and strategies, contain projections of results of
operations, liquidity and/or financial condition or state other
forward‐looking information. Statements, among others, relating to
the Company’s ability to generate future growth and deliver returns
are forward-looking statements, and the Company cannot assure you
that TRTX will achieve such results. The ability of TRTX to predict
future events or conditions or their impact or the actual effect of
existing or future plans or strategies is inherently uncertain.
Although the Company believes that such forward‐looking statements
are based on reasonable assumptions, actual results and performance
in the future could differ materially from those set forth in or
implied by such forward‐looking statements. You are cautioned not
to place undue reliance on these forward‐looking statements, which
reflect the Company’s views only as of the date of this earnings
release. Except as required by law, neither the Company nor any
other person assumes responsibility for the accuracy and
completeness of the forward‐looking statements appearing in this
earnings release. The Company does not undertake any obligation to
update any forward-looking statements contained in this earnings
release as a result of new information, future events or
otherwise.
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INVESTOR RELATIONS +1 (212) 405-8500 IR@tpgrefinance.com
MEDIA TPG RE Finance Trust, Inc. Courtney Power +1 (415)
743-1550 media@tpg.com
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