NEW YORK, November 01, 2022–(BUSINESS WIRE)–TPG RE Finance Trust, Inc. (NYSE: TRTX) (“TRTX” or the “Company”) has released its operating results for the quarter ended September 30, 2022. Regarding the results of the third quarter, Doug Bouquard, President and CEO of TRTX, said, “Our company’s strong liquidity position and TPG’s industry-leading global real estate platform enabled TRTX to opportunistically deploy $984.0 million in new investments during the third quarter and to maintain sufficient liquidity of $571.3 million to navigate the current market. environment.”
THIRD QUARTER 2022 ACTIVITY
GAAP recognized net loss attributable to common shareholders of ($117.9) million, or $(1.52) per common share (based on a basic and diluted weighted average number of shares of 77.4 million of common shares) and book value per common share as of September 30, 2022 of $14.28.
Declared on September 12, 2022 a cash dividend of $0.24 per common share which was paid on October 25, 2022 to common shareholders of record as of September 28, 2022. The Company paid on September 30, 2022 to shareholders of record as of September 20, 2022. September 2022, a quarterly dividend on its 6.25% Series C Cumulative Redeemable Preferred Shares of $0.3906 per share.
Issued five and acquired at a discount five performing first mortgages with total loan commitments of $984.0 million, an aggregate original outstanding principal balance of $950.1 million, a weighted average interest rate of applicable reference rate plus 3.52%, a weighted average interest rate floor of 0.89% and a weighted average loan-to-value ratio of 64.8%. In addition, funding of $47.3 million of future funding obligations associated with previously contracted loans.
Received loan repayments of $371.1 million, including eight full loan repayments totaling $291.4 million, consisting primarily of the following property types: 77.6% office and 12.0% hotel .
The weighted average risk rating of the Company’s loan portfolio was 3.2 as of September 30, 2022, unchanged from June 30, 2022.
Carried at the end of the quarter an allowance for credit losses of $225.6 million, or 390 basis points of total loan commitments, an increase of $132.3 million from $93.4 million , or 180 basis points of total loan commitments, as of June 30, 2022. $225.6 million provision for credit losses, $72.3 million relates to the Company’s specific reserve.
Entered into an asset-specific financing agreement with an institutional lender backed by five performing first mortgages. This financing is term-matched, non-recourse and not marked to market.
Ended the quarter with $571.3 million in total liquidity, consisting of: $210.7 million cash available for investment, net of $25.4 million held to satisfy liquidity covenants under the agreements guaranteed financing of the company; undrawn capacity under secured financing arrangements of $48.6 million; and $286.6 million of reinvestment capacity in the Company’s CRE CLOs. In addition, the Company held investments in the form of unencumbered loans with a total outstanding principal balance of $7.6 million as at September 30, 2022.
The weighted average interest rate floor for loan investments was 85 basis points as of September 30, 2022, compared to 90 basis points as of June 30, 2022. The Company’s assets and liabilities are now fully rate sensitive. .
Rate caps on substantially all of the Company’s loans had a weighted average strike price of 2.87% as of September 30, 2022, compared to 2.83% as of June 30, 2022.
Acquisition by deed in lieu of foreclosure of an 845,919 square foot Class B office building in Dallas, Texas. As at September 30, 2022, the related loan had a risk rating of “5”, which is the lowest rating of the Company’s 1 to 5 risk rating system.
The Company has released a supplemental presentation detailing its third quarter 2022 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, November 2, 2022. 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 before the scheduled call time. The webcast can also be viewed 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 1:00 p.m. ET on Wednesday, November 2, 2022 until 11:59 p.m. ET on Wednesday, November 16, 2022. To access the replay, listeners can use +1 (844) 512-2921 (domestic) or +1 (412) 317-6671 (international). The password for the replay is 13730311. The 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 originates, acquires and primarily services first mortgage loans secured by institutional properties located in selected primary and secondary markets in the United States. The company is externally managed 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 management firm TPG Inc. (NASDAQ: TPG). For more information about TRTX, visit https://www.tpgrefinance.com/.
This press 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 regarding 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 COVID-19 and its variants, measures that may be taken by government authorities to contain or deal with the impact of such pandemics, and the potential negative impacts of these pandemics on the global economy and the Company’s financial condition and results of operations; the Company’s ability to initiate loans which are in preparation and being evaluated by the Company; financing needs and modalities; 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, 2021, as such risk factors may be updated from time to time. elsewhere in the Company’s annual report. periodic filings with the Securities and Exchange Commission (the “SEC”), which are available on the SEC’s website at www.sec.gov. Forward-looking statements are generally identifiable by the use of forward-looking words such as “may”, “will”, “should”, “potential”, “intend”, “expect”, “endeavour”. “, “seeks”, “anticipates”, “estimate”, “believe”, “could”, “project”, “predict”, “continue” or other similar words or expressions. Forward-looking statements are based on certain assumptions , discusses future expectations, describes existing or future plans and strategies, contains projections of results of operations, liquidity and/or financial condition or sets out other forward-looking information. the Company to generate future growth and to generate value and returns, and the Company’s ability to provide effective financing solutions to borrowers are forward-looking statements, and the Company cannot assure you that TRTX will achieve these results. . The TRTX’s ability 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 expressed or implied by these 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 or completeness of the forward-looking statements contained in this press release. The Company undertakes no obligation to update any forward-looking statements contained in this press 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. .
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INVESTOR RELATIONS CONTACT
+1 (212) 405-8500
TPG RE Finance Trust, Inc.
+1 (415) 743-1550