TPG RE Finance Trust, Inc. Reports Operating Results for the Quarter Ended March 31, 2024
April 30 2024 - 4:13PM
Business Wire
TPG RE Finance Trust, Inc. (NYSE: TRTX) (“TRTX” or the
“Company”) reported its operating results for the quarter ended
March 31, 2024.
Regarding first quarter results, Doug Bouquard, Chief Executive
Officer of TRTX, said: “We ended the quarter with $371 million of
available liquidity and a 100% performing loan portfolio. As part
of our capital allocation strategy, on April 25 our Board of
Directors approved a common stock share repurchase plan of up to
$25 million. We continue to focus on asset management and
opportunistically deploying capital to drive long term shareholder
value.”
FIRST QUARTER 2024 ACTIVITY
- Recognized GAAP net income attributable to common stockholders
of $13.1 million, or $0.17 per common share, based on a diluted
weighted average share count of 77.9 million common shares. Book
value per common share was $11.81 as of March 31, 2024.
- Declared on March 15, 2024 a cash dividend of $0.24 per share
of common stock which was paid on April 25, 2024 to common
stockholders of record as of March 28, 2024. The Company paid on
March 28, 2024 to stockholders of record as of March 18, 2024 a
quarterly dividend on its 6.25% Series C Cumulative Redeemable
Preferred Stock of $0.3906 per share.
- Originated three first mortgage loans with total loan
commitments of $116.3 million, an initial aggregate unpaid
principal balance of $107.0 million, a weighted average interest
rate of Term SOFR plus 3.40%, a weighted average interest rate
floor of 3.28% and a weighted average as-is loan-to-value ratio of
69.9%. Additionally, funded $10.7 million of future funding
obligations associated with previously originated and acquired
loans.
- Received loan repayments of $227.8 million, including five full
loan repayments of $211.3 million, involving the following property
types: 62.7% multifamily, 17.7% hotel, 17.2% other; and 2.4%
office.
- Weighted average risk rating of the Company’s loan portfolio
was 3.0 as of March 31, 2024, unchanged from December 31,
2023.
- Carried at quarter-end an allowance for credit losses of $74.1
million, an increase of $4.4 million from $69.8 million as of
December 31, 2023. The quarter-end allowance equals 210 basis
points of total loan commitments as of March 31, 2024 compared to
190 basis points as of December 31, 2023.
- Ended the quarter with $370.7 million of near-term liquidity:
$188.1 million of cash-on-hand available for investment, net of
$15.0 million held to satisfy liquidity covenants under the
Company’s secured financing agreements; undrawn capacity under
secured financing arrangements of $111.9 million; undrawn capacity
under asset-specific financing arrangements and secured revolving
credit facility of $4.8 million; and $51.0 million of reinvestment
capacity in TRTX 2022-FL5.
- Non-mark-to-market borrowings represented 77.1% of total
borrowings at March 31, 2024.
SUBSEQUENT EVENTS
- Received a full loan repayment of one office first mortgage
loan with a total loan commitment and unpaid principal amount of
$44.5 million and $35.1 million, respectively.
- On April 25, 2024, our Board of Directors approved a share
repurchase program pursuant to which we are authorized to
repurchase up to $25.0 million of our common stock. The repurchase
program authorizes the repurchase of common stock from time to time
on the open market or in privately negotiated transactions,
including under 10b5-1 plans.
The Company issued a supplemental presentation detailing its
first quarter 2024 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 9:00 a.m. ET on Wednesday, May 1, 2024. 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 12:00
p.m. ET on Wednesday, May 1, 2024 through 11:59 p.m. ET on
Wednesday, May 15, 2024. To access the replay, listeners may use +1
(844) 512-2921 (domestic) or +1 (412) 317-6671 (international). The
passcode for the replay is 13743895. The 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 management firm TPG
Inc. (NASDAQ: TPG). For more information regarding TRTX, visit
https://www.tpgrefinance.com/.
FORWARD-LOOKING STATEMENTS
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”); global economic trends and
economic conditions, including heightened inflation, slower growth
or recession, changes to fiscal and monetary policy, higher
interest rates, stress to the commercial banking systems of the
U.S. and Western Europe, labor shortages, currency fluctuations and
challenges in global supply chains; 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 Annual Report on Form 10-K for the fiscal
year ended December 31, 2023, 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 Company’s capital allocation strategy, the common stock share
repurchase program, asset management, and opportunistically
deploying capital to drive long term shareholder value, are
forward-looking statements, and the Company cannot assure you that
it 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 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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