TPG RE Finance Trust, Inc. Reports Results of Operations for the Quarter Ended September 30, 2021

NEW YORK–(COMMERCIAL THREAD) – TPG RE Finance Trust, Inc. (NYSE: TRTX) (“TRTX” or the “Company”) announced its operating results for the quarter ended September 30, 2021.

THIRD QUARTER 2021 ACTIVITY

  • GAAP net income attributable to common shareholders was $ 26.0 million, diluted net income per common share was $ 0.32 based on a diluted weighted average number of shares of 82.0 million common shares, and the book value per common share as at September 30, 2021 was $ 16.15.

  • Declared on September 13, 2021 a dividend of $ 0.24 per common share, an increase of $ 0.04 per common share or 20.0% from the second quarter of 2021, which was paid on October 22, 2021 to registered shareholders as of September 29, 2021. Paid on September 30, 2021 to shareholders of record on September 20, 2021, the first dividend on the Company’s 6.25% cumulative redeemable preferred shares, Series C of $ 3.7 million, covering the period from from issue to September 30, 2021, but excluding.

  • Closing of seven new loans with total commitments of $ 482.9 million, a total outstanding initial principal balance of $ 433.6 million, a weighted average credit spread of 3.53%, a weighted average LIBOR floor of 0.15% and a weighted average loan-to-value ratio of 72.9%.

  • Net interest margin was $ 39.0 million for the quarter ended September 30, 2021, compared to $ 39.9 million for the previous quarter, a decrease of $ 0.9 million .

  • Funding of $ 37.3 million of future funding obligations associated with existing loans.

  • Received loan repayments of $ 460.4 million, including three full loan repayments totaling $ 418.1 million.

  • The weighted average risk rating of the Company’s loan portfolio remains unchanged from the previous quarter at 3.1 as at September 30, 2021.

  • Reduced CECL reserve from $ 0.3 million to $ 55.0 million at quarter end, or 103 basis points of total loan commitments, from $ 55.3 million or 104 basis points as of June 30, 2021.

  • Transfer of a hotel loan performing loans held for investment to loans held for sale in our Consolidated Balance Sheet. Entered into a buy and sell contract to sell the first mortgage at par, less transaction fees.

  • Ended the quarter with $ 323.6 million in total cash comprising: cash and cash equivalents of $ 269.3 million, of which $ 254.3 million was available for investment, net of $ 15.0 millions of dollars held to meet the liquidity commitment under the Company’s secured credit agreements; unused capacity (liquidity available to the Company without the need to pledge additional collateral) under secured loan agreements of $ 47.4 million (of which $ 0.8 million was immediately available ); and $ 6.9 million of reinvestment capacity in the Company’s CLOs available for investment in eligible guarantees. In addition, the Company held unencumbered loan assets with a total outstanding principal balance of $ 154.2 million as at September 30, 2021.

  • Debt not marked-to-market represents 77.8% of total borrowings in the loan portfolio as at September 30, 2021.

  • Benefited from a weighted average floor LIBOR in the loan portfolio of 1.33%, approximately 125 basis points higher than the one-month LIBOR as of September 30, 2021.

SUBSEQUENT EVENTS

  • Closed or in the process of closing eight first mortgage loans with total commitments of $ 539.2 million and seed financings of $ 465.3 million.

  • Full repayments of $ 257.1 million related to one multi-family loan and two mixed-use loans.

  • Sold a performing hotel loan at par, less transaction costs, which was held for sale at quarter end.

Matt Coleman, President of TRTX, said: “The strong performance of the portfolio resulted in steady growth in distributable earnings, which allowed us to increase our dividend this quarter. Our $ 1.8 billion in year-to-date creations and strong pipeline further builds the strength of our company and team, including the benefits of the global TPG platform, and positions us for growth. continues to profit for the rest of the year and beyond. ”

The Company has issued an additional presentation detailing its third quarter 2021 operating results, which can be viewed at http://investors.tpgrefinance.com/.

CONFERENCE AND WEB BROADCASTING 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, November 3, 2021. To participate in the conference call, callers from the United States and Canada must dial +1 (877) 407-9716, and international callers should dial +1 (201) 493-6779, ten minutes before the scheduled calling time. The webcast can also be viewed 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, November 3, 2021 until 11:59 p.m. ET on Wednesday, November 17, 2021. To access the replay, listeners can use +1 (844) 512-2921 ( national) or +1 (412) 317-6671 (international). The access code for the replay is 13723749. The replay will be available on the Company’s website for one year from the date of the call.

ABOUT TRTX

TPG RE Finance Trust, Inc. is a commercial real estate finance company that primarily creates, acquires and manages senior mortgages secured by institutional properties located in selected primary and secondary markets in the United States. The company is managed externally by TPG RE Finance Trust Management, LP, which is part of TPG Real Estate, which is the real estate investment platform of global alternative asset company TPG. For more information on TRTX, visit https://www.tpgrefinance.com/.

FORWARD-LOOKING STATEMENTS

The information 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 geographic spread, severity and ultimate duration of pandemics such as the novel coronavirus (“COVID-19”) and its variants, the measures that can be taken by government authorities to contain or address the impact of these 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 grant loans in progress and under evaluation by the Company; financing needs and modalities; and the risks, uncertainties and factors set out under the heading “Risk Factors” in the Company’s quarterly report on Form 10-Q for the quarterly period ended September 30, 2021 and in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2020, as these risk factors may be updated from time to time in the Company’s periodic files with the Securities and Exchange Commission (the “SEC”), which are available on the SEC website at www.sec.gov. Forward-looking statements are generally identifiable by the use of forward-looking terminology such as “may”, “will”, “should”, “possible”, “intend”, “expect”, “s ‘strive’, ‘seek’, ” ‘,’ estimate ‘,’ believe ‘,’ might ‘,’ plan ‘,’ 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 operating results, liquidity and / or financial condition or state other forward-looking information. Statements, among others, relating to the continued impact of COVID-19 and its variants on the business, financial condition and results of operations of the Company and the ability of the Company to generate future growth and generate any returns are forward-looking statements, and the Company cannot assure you that TRTX will obtain 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 these forward-looking statements are based on reasonable assumptions, actual results and performance in the future could differ materially from those stated or implied by these forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which only reflect the views of the Company 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 contained in this earnings release. The Company assumes no 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 or a guarantee of future returns. Performance data is presented for illustrative purposes only and has limitations when used for comparison or other purposes due to, among other things, volatility, credit or other factors.

Source link

About Mallory Brown

Check Also

Liberty Union Mortgage Team Helps Homebuyers Bid Over Other Deals As Post-Pandemic Real Estate Market Continues To Soar

Jason Solowsky, Branch Manager Jason Solowsky, Branch Manager for the Liberty Union Team Jason Solowsky, …

Leave a Reply

Your email address will not be published. Required fields are marked *