NEW YORK–(BUSINESS WIRE)–TPG RE Finance Trust, Inc. (NYSE: TRTX) (“TRTX” or the “Company”) reported its operating results for the fourth quarter and full year ended December 31, 2019. For the fourth quarter of 2019, GAAP net income attributable to common stockholders was $32.6 million, earnings per diluted common share was $0.44, and book value per common share at December 31, 2019 was $19.78.
FOURTH QUARTER 2019 HIGHLIGHTS
- Generated GAAP net income attributable to common stockholders of $32.6 million, or $0.44 per diluted common share, based on a weighted average share count of 74.5 million common shares
- Closed seven new loan commitments totaling $653.7 million, with an average loan size of $93.4 million, an initial unpaid principal balance of $561.1 million, a weighted average credit spread of 290 bps, and a weighted average loan-to-value of 61.7%
- Closed TRTX 2019-FL3, a $1.2 billion managed CRE CLO with a 24-month reinvestment period and a weighted average interest rate at issuance of LIBOR plus 1.44%, before transaction costs
- Declared cash dividends of $32.8 million, or $0.43 per common share, representing an 8.7% annualized dividend yield based on a book value per common share of $19.78
- Issued 1.9 million common shares via our at-the-market (“ATM”) continuous offering program, which generated proceeds of $38.0 million at an average price per share of $20.42, before dealer commissions
FULL YEAR 2019 HIGHLIGHTS
- Generated GAAP net income attributable to common stockholders of $125.6 million, or $1.73 per diluted common share, based on a weighted average share count of 72.7 million common shares, an increase of 9.7 million common shares (15.4%) from the prior year
- Grew our investment portfolio to $6.4 billion from $5.0 billion, an increase of $1.4 billion, or 28.0%, from 2018, driven by an increase in our loan portfolio commitments to $5.6 billion from $4.9 billion, a net increase of 13.8%, or $0.7 billion, from 2018
- Originated $2.9 billion of floating rate, primarily first mortgage transitional loans with an initial unpaid principal balance of $2.4 billion, an average loan size of $91.5 million, a weighted average as-is loan-to-value ratio of 63.9%, and a weighted average credit spread of L + 335 bps
- Increased our equity capital base by $174.5 million via (i) a $136.5 million underwritten public offering in March 2019 of 6.9 million common shares at $19.80 per share, and (ii) issuance via our ATM during the fourth quarter of 1.9 million common shares, which generated proceeds of $38.0 million at an average price per share of $20.42, before dealer commissions
Greta Guggenheim, Chief Executive Officer, stated: “Throughout 2019, TRTX demonstrated the power of its direct lending platform and its affiliation with TPG. We originated $2.9 billion in new loans with a conservative weighted average LTV of 63.9%. Despite declining yields across all fixed income investments, we covered our dividend with operating earnings and increased book value to $19.78 per share. We carefully selected investments supported by continued reductions in financing costs to sustain our asset-level ROE. In the 10 quarters since our IPO, we have distinguished ourselves through our operating performance, portfolio growth and portfolio construction. We believe this validates our investment and operating discipline and is a firm foundation for continued growth.”
The Company issued a supplemental presentation detailing its fourth quarter and full year 2019 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 8:30 a.m. ET on Wednesday, February 19, 2020. The call will be hosted by Greta Guggenheim, Chief Executive Officer, and Bob Foley, Chief Financial and Risk Officer. 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.
A replay of the conference call will be available after 11:30 a.m. ET on Wednesday, February 19, 2020 through 11:59 p.m. ET on Wednesday, March 4, 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 13697991. The recorded replay will be available on the Company’s website for one year after the call date.
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 $119 billion of assets under management. For more information regarding TRTX, visit www.tpgrefinance.com.
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 Company’s investments, 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 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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TPG RE Finance Trust, Inc.
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