TPG RE Finance Trust, Inc. Reports Operating Results for the Quarter Ended, March 31, 2020
May 11 2020 - 4:31PM
Business Wire
TPG RE Finance Trust, Inc. (NYSE: TRTX) (“TRTX” or the
“Company”) reported its operating results for the quarter ended
March 31, 2020. For the first quarter of 2020, GAAP net loss
attributable to common stockholders was $233.1 million, net loss
per diluted common share was $(3.05), and book value per common
share at March 31, 2020 was $16.06.
FIRST QUARTER 2020 ACTIVITY
- Generated GAAP net loss attributable to common stockholders of
$233.1 million, or $(3.05) per diluted common share, based on a
weighted average share count of 76.5 million common shares.
- Increased net interest margin on investments to $43.3 million
from $37.2 million for the three months ending March 31, 2020, an
increase of $6.1 million, or 16.4%, compared to the three months
ended March 31, 2019.
- Closed five new loan commitments totaling $437.4 million, with
an average loan size of $87.5 million, an initial unpaid principal
balance of $353.5 million, a weighted average credit spread of 284
bps, and a weighted average loan-to-value of 73.5%.
- Sustained losses on CRE debt securities of $203.5 million,
comprised of $36.2 million realized from sales in March 2020 and an
impairment charge of $167.3 million related to CRE debt securities
owned as of March 31, 2020.
- Recorded an initial allowance for credit loss of $19.6 million
upon implementation of ASU 2016-13 at January 1, 2020. The Current
Expected Credit Losses (“CECL”) reserve totaled $83.0 million at
March 31, 2020, producing net CECL expense of $63.3 million, or
$(0.83) per share, for the quarter.
- Issued 0.6 million common shares via our at-the-market (“ATM”)
continuous offering program, which generated proceeds of $12.9
million at a weighted average price per share of $20.53, before
dealer commissions.
SUBSEQUENT EVENTS
- Reduced to zero the Company’s portfolio of CRE debt securities,
and liabilities associated therewith. Losses sustained after
quarter-end equaled the impairment charge of $167.3 million
recorded at March 31, 2020.
- On April 7, 2020, the Company’s external manager (the
“Manager”) agreed to defer to July 6, 2020 payment of the $5.0
million base management fee accrued and payable to the Manager for
the quarter ended March 31, 2020. The Company was not subject to,
and did not accrue, an incentive fee for the quarter.
- Extended through May 4, 2021 an existing secured revolving
repurchase agreement with Morgan Stanley Bank with a commitment
amount of $500 million.
Greta Guggenheim, Chief Executive Officer, stated: “Despite
strong loan originations through early March, the COVID-19 pandemic
presents real challenges to TRTX, and to the commercial real estate
industry. The complete divestiture of our securities portfolio
demonstrates our commitment to defending our balance sheet to
enable us to serve our borrowers and lenders, weather this storm,
and maximize value for shareholders. We remain continuously engaged
with our borrowers and lenders to mitigate the effects of this
crisis. The value of being part of the TPG franchise has never been
more important than in these turbulent times.”
The Company issued a supplemental presentation detailing its
first quarter 2020 operating results, which can be viewed at
http://investors.tpgrefinance.com/.
CONFERENCE CALL AND WEBCAST INFORMATION
The Company will host a webcast and conference call to review
its financial results at 8:30 a.m. ET on Tuesday, May 12, 2020. The
webcast and conference call will be hosted by Greta Guggenheim,
Chief Executive Officer, and Bob Foley, Chief Financial and Risk
Officer.
WEBCAST INFORMATION
The live webcast can be accessed through the Investor Relations
section of the Company’s website at
http://investors.tpgrefinance.com/event. The Company encourages use
of the webcast due to potential extended wait times to access the
conference call via dial-in.
CONFERENCE CALL
For those unable to access the webcast, the conference call will
be accessible domestically or internationally, by dialing
1-866-575-6539 or 1-929-477-0402, respectively, and requesting the
TPG RE Finance Trust First Quarter 2020 Earnings Conference
Call.
REPLAY INFORMATION
A replay of the conference call will be available after 11:30
a.m. ET on Tuesday, May 12, 2020 through 11:59 p.m. ET on Tuesday,
May 26, 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 3596270. 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 $88 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 investments of the Company; the ultimate
geographic spread, severity and duration of pandemics such as the
recent outbreak of novel coronavirus ("COVID-19"), actions that may
be taken by governmental authorities to contain or address the
impact of such pandemics, and the potential negative impacts of
such pandemics on the global economy and the Company’s financial
condition and results of operations; 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 potential impact of COVID-19 on the Company’s business,
financial condition and results of operations and 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 CONTACT +1 (212) 405-8500
IR@tpgrefinance.com
MEDIA CONTACT TPG RE Finance Trust, Inc. Courtney Power
+1 (415) 743-1550 media@tpg.com
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