TPG RE Finance Trust, Inc. Reports Operating Results for the Quarter and Full Year Ended December 31, 2023
Regarding fourth quarter results,
FOURTH QUARTER 2023 ACTIVITY
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Recognized GAAP net income attributable to common stockholders of
$2.6 million , or$0.03 per common share, based on a diluted weighted average share count of 77.7 million common shares. Book value per common share was$11.86 as ofDecember 31, 2023 . -
Declared on
December 18, 2023 a cash dividend of$0.24 per share of common stock which was paid onJanuary 25, 2024 to common stockholders of record as ofDecember 29, 2023 . The Company paid onDecember 29, 2023 to stockholders of record as ofDecember 19, 2023 a quarterly dividend on its 6.25% Series C Cumulative Redeemable Preferred Stock of$0.3906 per share. -
Originated one first mortgage loan on a stabilized multifamily property with a total loan commitment of
$62.0 million , an initial unpaid principal balance of$48.3 million , an interest rate of Term SOFR plus 3.50%, an interest rate floor of 3.50% and an as-is loan-to-value ratio of 66.1%. Additionally, funded$34.6 million of future funding obligations associated with previously originated and acquired loans. -
Received loan repayments of
$103.1 million , including one full loan repayment of$70.0 million , involving the following property types: 69.9% hotel; 22.1% mixed-use; 7.0% office; and 1.0% multifamily. -
Sold an office loan with an unpaid principal balance of
$84.7 million for$29.0 million , resulting in a loss on sale of$55.8 million , including transaction costs of$0.04 million . -
Sold a multifamily loan with an unpaid principal balance of
$127.3 million for$98.7 million , resulting in a loss on sale of$22.4 million , including transaction costs of$2.7 million and$8.9 million from the reversal of an unamortized purchase discount from acquisition. -
Acquired three office properties through deeds-in-lieu of foreclosure and one multifamily property through a UCC equity foreclosure with an aggregate carrying value at
December 31, 2023 of$152.0 million and a fair value at foreclosure of$152.0 million . -
Sold a multifamily property in
November 2023 acquired as real estate owned inAugust 2023 for net proceeds of$75.4 million , resulting in a gain on sale of real estate, net of$7.0 million . -
Reduced the weighted average risk rating of the Company’s loan portfolio to 3.0 as of
December 31, 2023 , compared to 3.2 as ofSeptember 30, 2023 . -
Carried at quarter-end an allowance for credit losses of
$69.8 million , a decrease of$166.9 million from$236.6 million as ofSeptember 30, 2023 . The quarter-end allowance equals 190 basis points of total loan commitments as ofDecember 31, 2023 compared to 560 basis points as ofSeptember 30, 2023 . -
Held no non-accrual loans at
December 31, 2023 , compared to four loans atSeptember 30, 2023 with a total amortized cost of$318.1 million . -
Closed a
$90.6 million asset-specific, non-mark-to-market, matched-term financing with a global bank. -
Ended the quarter with
$480.0 million of near-term liquidity:$191.4 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$24.8 million ; undrawn capacity under asset-specific financing arrangements and secured revolving credit facility of$1.6 million ; and$247.2 million of reinvestment capacity in TRTX 2022-FL5. -
Non-mark-to-market debt represented 73.5% of total borrowings at
December 31, 2023 .
FULL YEAR 2023 ACTIVITY
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Recognized GAAP net (loss) attributable to common stockholders of
($130.9) million , or ($1.69 ) per common share, based on a basic and diluted weighted average share count of 77.6 million common shares. -
Declared cash dividends of
$76.0 million , or$0.96 per common share, representing a 14.8% annualized dividend yield based on theDecember 29, 2023 closing price of$6.50 , and an 8.1% annualized dividend yield based on theDecember 31, 2023 book value per common share of$11.86 . -
Originated four first mortgage loans with total loan commitments of
$229.4 million , an aggregate initial unpaid principal balance of$196.7 million , a weighted average interest rate of Term SOFR plus 4.30%, a weighted average interest rate floor of 3.59% and a weighted average loan-to-value ratio of 61.9%. Additionally, funded$140.5 million of future funding obligations associated with previously originated loans. Unfunded commitments atDecember 31, 2023 were$183.3 million , or 5.0% of total loan commitments. -
Received loan repayments of
$907.0 million , including full loan repayments of$711.6 million on 10 loans, involving: 55.6% multifamily, 30.7% hotel, and 10.5% office. -
Sold three office loans with an aggregate unpaid principal balance of
$308.4 million for$155.8 million , resulting in a loss on sale of$155.0 million , including transaction costs of$2.3 million . Sold a mixed-use loan with an unpaid principal balance of$129.2 million for$95.0 million , resulting in a loss on sale of$35.0 million , including transaction costs of$0.8 million . -
Sold a multifamily loan with an unpaid principal balance of
$127.3 million for$98.7 million , resulting in a loss on sale of$22.4 million , including transaction costs of$2.7 million and$8.9 million from the reversal of an unamortized purchase discount from acquisition. -
Acquired and held four office properties through deeds-in-lieu of foreclosure and one multifamily property through a UCC equity foreclosure with an aggregate carrying value at
December 31, 2023 of$199.8 million and a fair value at foreclosure of$198.0 million . -
Acquired in
August 2023 through foreclosure a multifamily property with a fair value at foreclosure of$71.1 million and subsequently sold the property inNovember 2023 for net proceeds of$75.4 million , resulting in a gain on sale of real estate, net of$7.0 million . -
Retired
$362.2 million and$179.0 million of liabilities associated with TRTX 2019-FL3 and TRTX 2021-FL4, respectively, using proceeds from loan repayments. -
Carried a CECL reserve of
$69.8 million as ofDecember 31, 2023 , compared to$214.6 million as ofDecember 31, 2022 . -
Recognized credit loss expense of
$189.9 million , or$2.44 per basic and diluted common share.
SUBSEQUENT EVENTS
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Closed two first mortgage loans secured by multifamily properties with an aggregate total loan commitment of
$82.3 million and initial funding of$74.7 million . -
Received full loan repayments related to four first mortgage loans with a total loan commitment and unpaid principal balance of
$195.0 million and$179.4 million , respectively. The first mortgage loans were secured by the following property types (as a percentage of total loan commitments repaid): 54.0% multifamily, 25.9% other (land), and 20.1% hotel. -
Extended one secured credit agreement with
August 2024 next maturity date for two years toAugust 2026 . During the two-year extension period, new and revolving borrowings are permitted, after which the secured credit agreement automatically enters a two-year term-out period throughAugust 2028 .
The Company issued a supplemental presentation detailing its fourth quarter and full year 2023 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
REPLAY INFORMATION
A replay of the conference call will be available after
ABOUT TRTX
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
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