TPG RE Finance Trust, Inc. Reports Operating Results for the Quarter Ended June 30, 2021
August 03 2021 - 5:31PM
Business Wire
TPG RE Finance Trust, Inc. (NYSE: TRTX) (“TRTX” or the
“Company”) reported its operating results for the quarter ended
June 30, 2021.
SECOND QUARTER 2021 ACTIVITY
- GAAP net income was $32.4 million during the three months
ending June 30, 2021, compared to $32.0 million for the preceding
quarter, an increase of $0.4 million, or 1.3%.
- Net interest margin was $39.9 million during the three months
ending June 30, 2021, compared to $37.9 million for the preceding
quarter, an increase of $2.0 million, or 5.3%.
- GAAP net loss attributable to common stockholders was $21.0
million, or $(0.27) per diluted common share, and book value per
common share on June 30, 2021 was $16.03.
- Issued 8.05 million shares of 6.25% Series C Cumulative
Redeemable Preferred Stock, generating net proceeds of $194.4
million.
- Redeemed 9.0 million shares of 11.0% Series B Cumulative
Redeemable Preferred Stock at an aggregate redemption price of
$247.5 million, including a $225.0 million par redemption price and
a $22.5 million make-whole payment equal to the present value of
all remaining dividend payments due after the redemption date
through the second anniversary of the original issue date.
- Closed nine new loans with total commitments of $752.5 million,
an aggregate initial unpaid principal balance of $597.0 million, a
weighted average credit spread of 3.48%, a weighted average LIBOR
floor of 0.22% and a weighted average loan-to-value ratio of
67.3%.
- Funded $43.9 million of future funding obligations associated
with existing loans.
- Received loan repayments of $334.0 million, including four full
loan repayments totaling $330.7 million, of which 90.3% measured by
unpaid principal balance was office loans.
- Weighted average risk rating of the Company’s loan portfolio
remains unchanged from the preceding quarter at 3.1 as of June 30,
2021.
- Reduced CECL reserve by $3.5 million to $55.3 million at
quarter-end, equating to 104 basis points of total loan
commitments, down from $58.8 million and 118 basis points at March
31, 2021.
- Sold one performing hotel loan with an unpaid principal balance
of $60.7 million for $59.5 million, a $0.98 dollar price based on
par value. The loss on sale of $1.6 million does not include the
beneficial impact to the Company’s general CECL reserve resulting
from the sale of the loan, which exceeded the loss on sale.
- Ended the quarter with $393.0 million of total liquidity
comprised of: cash and cash equivalents of $239.7 million, of which
$224.7 million was available for investment, net of $15.0 million
held to satisfy a cash liquidity covenant under the Company’s
secured credit agreements; undrawn capacity (liquidity available to
the Company without the need to pledge additional collateral) under
secured borrowing arrangements of $99.5 million (of which $68.8
million was immediately available); and $53.8 million of
reinvestment capacity in the CLOs available for investment in
eligible collateral. Additionally, the Company held unencumbered
loan assets with an unpaid principal balance of $69.7 million as of
June 30, 2021.
- Non-mark-to-market debt represented 81.9% of total loan
portfolio borrowings at June 30, 2021.
- Benefited from weighted average LIBOR floors in the loan
portfolio of 1.44%, or approximately 134 basis points higher than
one-month LIBOR as of June 30, 2021.
- Declared on June 14, 2021 a dividend of $0.20 per common share,
which was paid on July 23, 2021 to shareholders of record as of
June 28, 2021. Paid on June 16, 2021 a final quarterly dividend on
the Company’s 11.0% Series B Cumulative Redeemable Preferred Stock
of $6.2 million, or $0.69 per Series B preferred share.
SUBSEQUENT EVENTS
- Closed or are in the process of closing five first mortgage
loans with commitments totaling $372.5 million and initial fundings
of $363.1 million.
- Received repayments in full of $212.8 million relating to one
multifamily loan and one office loan.
- Extended the initial maturity date of an existing $250.0
million secured credit facility from August 19, 2021 to August 19,
2022, with two additional one-year extensions at our option,
provided the secured credit facility is not in default.
Matt Coleman, President of TRTX, said: “TRTX delivered a very
strong quarter, significantly advancing our strategic goals. The
redemption of our 11% Series B preferred stock and the issuance of
our 6.25% Series C preferred stock were critical steps in
optimizing our capital structure. Additionally, our origination
engine remains active, with approximately $1.1 billion of first
mortgage loans originated year-to-date. We believe we are
well-positioned to build on these achievements for a successful
second half of the year.”
The Company issued a supplemental presentation detailing its
second 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, August 4th, 2021. To participate in
the conference call, callers from the United States and Canada
should dial +1 (866) 248-8441, and international callers should
dial +1 (929) 477-0591, 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, August 4th, 2021 through 11:59 p.m. ET on
Wednesday, August 18th, 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 9626733. 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 TPG RE Finance Trust, Inc. (the
“Company” or “TRTX”); the ultimate geographic spread, severity and
duration of pandemics such as the 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; financing needs and arrangements; and
the risks, uncertainties and factors set forth under the heading
“Risk Factors” in the Company’s Quarterly Report on Form 10-Q for
the quarterly period ended June 30, 2021 and in the Company’s
Annual Report on Form 10-K for the fiscal year ended December 31,
2020, as such risk factors may be updated from time to time in the
Company’s periodic filings with the Securities and Exchange
Commission (the “SEC”), which are accessible on the SEC’s website
at www.sec.gov. 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. Past
performance is not indicative nor a guarantee of future returns.
Yield data are shown for illustrative purposes only and have
limitations when used for comparison or for other purposes due to,
among other matters, volatility, credit or other factors.
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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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