NEW YORK, Oct. 29, 2024–(BUSINESS WIRE)–TPG RE Finance Trust, Inc. (NYSE: TRTX) (“TRTX” or the “Company”) announced that its financial results for the quarter ended September 30, 2024 We have reported our results.
Doug Bouquard, CEO of TRTX, commented on the third quarter results, saying, “Over the past quarter, TRTX achieved strong operating income, outperformed dividends by more than 115%, and maintained stable CECL reserves. However, there was no change in risk rating.” With TPG’s integrated global real estate investment platform team, we launch $204 million in new investments as we aim to continue to capitalize on the attractive opportunities set within real estate credit. I was able to do that. We believe this capital deployment combined with our strong balance sheet and liquidity profile. We are well-positioned to continue increasing long-term shareholder value. ”
subsequent events
Two multifamily first mortgage loans were fully repaid, resulting in total loan commitments and outstanding principal of $70.6 million and $70.6 million, respectively. As of September 30, 2024, the loan had a risk rating of 3.0.
The Company has published a supplemental presentation detailing its third quarter 2024 results. This presentation can be viewed at http://investors.tpgrefinance.com/.
Conference call and webcast information
The Company will host a conference call and webcast to review financial results with investors and other interested parties on Wednesday, October 30, 2024 at 9:00 a.m. Eastern Time. To participate in the conference call, you must call from the United States and Canada. +1 (877) 407-9716, or for international calls, dial +1 (201) 493-6779 10 minutes before your scheduled call time. You can also access this webcast live by visiting our Investor Relations website at http://investors.tpgrefinance.com/event.
Replay information
A replay of the conference call will be available starting Wednesday, October 30, 2024 at 12:00 PM ET and ending on Wednesday, November 13, 2024 at 11:59 PM ET. To access the replay, listeners can use +1 (844) 512. -2921 (domestic) or +1 (412) 317-6671 (international). The replay passcode is 13745416. Replays will be available on our 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 originates, acquires and manages first mortgage loans secured by institutional real estate in the primary and certain secondary markets of the United States. The Company is externally managed by TPG RE Finance Trust Management, LP, part of TPG Real Estate, the real estate investment platform of global alternative asset management company TPG Inc. (NASDAQ: TPG). For more information about TRTX, please visit https://www.tpgrefinance.com/.
Forward-looking statements
This financial statement 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 investment performance of TPG RE Finance Trust, Inc. (the “Company” or “TRTX”) . Global economic trends and conditions (rising inflation, slowing growth or recession, changes in fiscal and monetary policy, rising interest rates, stress on the U.S. and Western European commercial banking systems, labor shortages, currency fluctuations, supply challenges, etc.) chain. our ability to originate loans that are in the pipeline and under evaluation by us; Financing needs and arrangements. and the risks, uncertainties and factors described under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. These risk factors may be updated from time to time in our reports. Our periodic filings with the Securities and Exchange Commission (the “SEC”) are available on the SEC’s website at www.sec.gov. Forward-looking statements typically include words such as “may,” “will,” “should,” “could,” “intend,” “expect,” “endeavour,” and ” You can identify them by the use of forward-looking terminology such as “seeks,” “anticipates,” and similar forward-looking terms. , “estimate,” “believe,” “may,” “anticipate,” “anticipate,” “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 otherwise Contains forward-looking information. In particular, statements regarding our ability to take advantage of the attractive opportunities created within real estate credits and drive long-term shareholder value are forward-looking statements and reflect our ability to achieve such results. is not guaranteed. TRTX’s ability to predict future events or conditions, their effects, or the actual effects 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 future results and performance may differ materially from those expressed in or implied by such forward-looking statements. there is. You are cautioned not to place undue reliance on these forward-looking statements, as they reflect our views only as of the date of this financial announcement. Except as required by law, neither we nor any other person assumes responsibility for the accuracy or completeness of any forward-looking statements contained in this earnings release. The Company undertakes no obligation to update any forward-looking statements contained in this earnings release, whether as a result of new information, future events or otherwise. Past performance does not indicate or guarantee future profits. Yield data is presented for illustrative purposes only and may be subject to limitations when used for comparative or other purposes due to, among other things, volatility, credit quality and other factors.
Reconciliation of non-GAAP financial measures
Distributable profit
Distributable earnings is a non-GAAP measure and is reported as GAAP net income (loss) attributable to our common stockholders, including realized gains and losses from loan amortizations, loan sales, and other loan resolutions (including conversions to owned real estate). Defined. (“REO”)), regardless of whether such items are included in other comprehensive income or loss or GAAP net income (loss): (i) non-cash stock-based compensation expense; (ii) depreciation and amortization expense; Excludes. iii) unrealized gains (losses) (including credit loss charges (gains), net); and (iv) certain non-cash items or income and expense items. The exclusion of depreciation expense from the calculation of distributable income applies only to debt investments related to real estate to the extent that we foreclose on the real property underlying such debt investments.
We believe that distributable income provides meaningful information to consider in addition to net income (loss) and cash flows from operating activities, as determined in accordance with GAAP. We are generally required to annually distribute at least 90% of our taxable net income, excluding net capital gains, subject to certain adjustments, in order to continue to qualify as a real estate investment trust for U.S. federal income tax purposes. . We believe that one of the primary reasons investors purchase our common stock is to receive our dividends. As our investors continue to focus on our ability to pay dividends, distributable earnings are an important metric to consider when determining our dividend policy and dividends per common share. In addition, distributable income helps us evaluate our results excluding the impact of certain transactions and GAAP adjustments that may not necessarily be indicative of our current financing investments and operating activities.
Distributable income excludes the effect of our allowance for credit losses or the reversal of our allowance for credit losses, to the extent our allowance for credit losses exceeds the credit losses realized during the applicable reporting period. Limited.
Loans are written off as realized losses when they are deemed uncollectible or when a realization event occurs. Such realized losses are generally recognized when the loan receivable is settled, transferred or exchanged or, in the case of a foreclosure, when the underlying asset is seized or sold. A payment may also be determined to be uncollectible if, in our judgment, it is almost certain that the amount due will not be collected in full. Realized losses may be equal to the difference between the cash or consideration received or expected to be received and the net book value of the loan, reflecting our economics related to the ultimate realization of the asset.
Distributable earnings does not represent net income (loss) or cash generated from operating activities, but rather is a substitute for GAAP net income (loss), a measure of GAAP cash flow from operations, a measure of liquidity, or a measure of liquidity. should not be considered as an indicator of Indicates the availability of funds to meet cash needs. In addition, our method of calculating distributable income may differ from the method employed by other companies to calculate the same or similar supplementary performance measures, and therefore the method of distributable income that we report may not be comparable to distributable profits reported by other companies.
Reconciliation of GAAP net income attributable to common stockholders and distributable income
The following table reconciles GAAP net income attributable to common stockholders and related diluted per share amounts with distributable earnings and related diluted per share amounts (in (excluding $1,000, per share data).
3 months are over,
September 30, 2024
Per diluted share (1)
Net income attributable to common shareholders
$
18,676
$
0.23
Depreciation and amortization expenses
3,453
0.04
Non-cash stock compensation expense
1,141
0.01
Credit losses (gain), net
(301
)
—
Distributable profits before realized losses from loan sales and other loan resolutions
$
22,969
$
0.28
Realized losses from loan charge-offs, loan sales and REO conversions
—
—
Distributable profit
$
22,969
$
0.28
Weighted average common shares outstanding (diluted)
81,365,205
_______________________________
(1)
The numbers displayed may not add up to the total due to rounding.
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contact address
Investor information
+1 (212) 405-8500
IR@tpgrefinance.com
media
TPG RE Finance Trust Co., Ltd.
courtney power
+1 (415) 743-1550
media@trpg.com
