TPG RE Finance Trust, Inc. Reports Operating Results for the Quarter Ended March 31, 2021
May 04 2021 - 5:15PM
Business Wire
TPG RE Finance Trust, Inc. (NYSE: TRTX) (“TRTX” or the
“Company”) reported its operating results for the quarter ended
March 31, 2021.
FIRST QUARTER 2021 ACTIVITY
- GAAP net income attributable to common stockholders was $24.2
million, net income per diluted common share was $0.30 based on a
diluted weighted average share count of 80.7 million common shares,
and book value per common share on March 31, 2021 was $16.61.
- Net interest margin was $37.9 million during the three months
ending March 31, 2021 compared to $40.6 million for the preceding
quarter, a decrease of $2.7 million, or 6.6%.
- Declared on March 16, 2021 a dividend of $0.20 per common
share, which was paid on April 23, 2021 to shareholders of record
as of March 26, 2021. Paid on March 31, 2021 a quarterly dividend
on the Company’s Series B Preferred Stock of $6.1 million, or $0.68
per preferred share.
- Closed one new loan commitment totaling $45.4 million, with an
initial unpaid principal balance of $37.5 million, a credit spread
of 3.30%, and a loan-to-value ratio of 63.7%.
- Funded $30.4 million of future funding obligations associated
with existing loans.
- Reduced CECL reserve by $4.0 million to $58.8 million at
quarter-end, equating to 118 basis points of total loan
commitments, down from $62.8 million and 127 basis points at
December 31, 2020.
- Received no repayments of loans in full and $5.3 million of
partial loan repayments.
- Held at quarter-end total liquidity of $632.9 million comprised
of: cash and cash equivalents of $301.6 million; undrawn capacity
(liquidity available to us without the need to pledge additional
collateral to our lenders) under secured borrowing arrangements of
$21.2 million (of which $0.8 million was immediately available);
and $310.1 million of cash in CLOs available for investment in
eligible collateral.
- Closed TRTX 2021-FL4, a $1.25 billion managed CRE CLO with a
24-month reinvestment period and a weighted average interest rate
at issuance of LIBOR plus 1.60%, before transaction costs.
- Repaid $615.0 million in secured financing with proceeds from
TRTX 2021-FL4.
- Increased non-recourse, non-mark-to-market financings to 83.6%
of total loan portfolio financing.
- Benefited from LIBOR floors on our loan portfolio with a
weighted average LIBOR floor of 1.64%, approximately 153 basis
points higher than one-month LIBOR as of March 31, 2021.
SUBSEQUENT EVENTS
- Closed one first mortgage loan with a total loan commitment
amount of $47.0 million and initial funding of $45.9 million. This
loan was financed in TRTX 2021-FL4, and together with the
contribution in April 2021 of a $37.5 million loan, the Company has
utilized $83.4 million of the FL4 Ramp-Up Account.
- Closing seven first mortgage loans with a total loan commitment
amount of $588.7 million and initial fundings of $464.5 million.
The majority of these loans, measured by commitment amount, are
expected to be financed in TRTX 2021-FL4.
Matthew Coleman, President, stated: “Our positive operating
results in the first quarter are the result of key achievements
across multiple areas of strategic importance for TRTX. We remain
focused on originating high quality, first mortgage loans with
best-in-class sponsors in strong growth markets. We continue to
optimize our capital structure by reducing our cost of funds and
increasing our non-mark-to-market liabilities. With substantial
liquidity available for deployment by our experienced team, we are
well positioned for continued growth.”
The Company issued a supplemental presentation detailing its
first quarter 2021 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 10:00 a.m. ET on Wednesday, May 5th, 2021. 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 1:00
p.m. ET on Wednesday, May 5th, 2021 through 11:59 p.m. ET on
Wednesday, May 19, 2021. To access the replay, listeners may use +1
(844) 512-2921 (domestic) or +1 (412) 317-6671 (international). The
passcode for the replay is 13718544. 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 originates, acquires, and manages primarily first
mortgage loans 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 global alternative asset firm TPG. For more
information regarding TRTX, visit
https://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
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 continuing 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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