TPG RE Finance Trust, Inc. Reports Operating Results for the Quarter Ended June 30, 2022
SECOND QUARTER 2022 ACTIVITY
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Recognized GAAP net income (loss) attributable to common stockholders of
, or$(8.8) million per common share based on a basic and diluted weighted average share count of 77.2 million common shares, and book value per common share on$(0.11) June 30, 2022 of .$16.03
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Declared on
June 13, 2022 a cash dividend of per share of common stock which was paid on$0.24 July 25, 2022 to common stockholders of record as ofJune 28, 2022 . The Company paid onJune 30, 2022 , to stockholders of record as ofJune 20, 2022 , a quarterly dividend on its6.25% Series C Cumulative Redeemable Preferred Stock of per share.$0.39 06
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Originated seven first mortgage loans with total loan commitments of
, an aggregate initial unpaid principal balance of$380.3 million , a weighted average interest rate of Term SOFR plus$312.7 million 4.21% , a weighted average interest rate floor of0.28% and a weighted average loan-to-value ratio of65.1% . Additionally, funded of deferred future funding obligations associated with previously originated loans.$29.3 million
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Received loan repayments of
, including seven full loan repayments totaling$757.0 million comprised primarily of the following property types:$676.9 million 28.0% office,25.8% multifamily and24.4% hotel.
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Weighted average risk rating of the Company’s loan portfolio was 3.2 as of
June 30, 2022 .
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Carried at quarter-end an allowance for credit losses of
, or 180 basis points of total loan commitments, an increase of$93.4 million from$42.3 million , or 91 basis points of total loan commitments, as of$51.1 million March 31, 2022 .
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Closed an asset-specific financing arrangement with
Axos Bank secured by one performing first mortgage loan secured by an office property. The arrangement provides financing on a non-mark-to-market basis and a term of up to 2 years.
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Closed a
loan financing facility with$200.0 million BMO Harris Bank which provides asset-specific financing on a non-mark-to-market basis with matched term.
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Ended the quarter with
of total liquidity, comprised of:$771.7 million of cash-on-hand available for investment, net of$338.7 million held to satisfy liquidity covenants under the Company’s secured financing agreements; undrawn capacity under secured financing arrangements of$17.3 million ; and$50.7 million of reinvestment capacity in the Company’s CRE CLOs. Additionally, the Company held unencumbered loan investments with an aggregate unpaid principal balance of$365.0 million as of$74.3 million June 30, 2022 .
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Non-mark-to-market debt represented
73.7% of total borrowings atJune 30, 2022 .
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Weighted average interest rate floor for loan investments declined to 90 basis points as of
June 30, 2022 from 105 basis points as ofMarch 31, 2022 .
SUBSEQUENT EVENTS
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Closed, or are in the process of closing, seven first mortgage loans with a total loan commitment amount of
and initial fundings of$557.1 million .$513.0 million
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Received full loan repayments related to two first mortgage loans with an aggregate loan commitment and unpaid principal balance of
and$226.6 million , respectively. Both first mortgage loans were secured by office properties.$226.2 million
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Entered into an extension and modification agreement with respect to its one risk category “5” office loan to facilitate an orderly disposition of the underlying property by the borrower. The amortized cost of the loan was
, and the carrying value of the loan was$55.7 million , net of its CECL reserve of$44.6 million , as of$11.1 million June 30, 2022 . The loan is performing and all contractual amounts due to the Company have been received.
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Received net proceeds of
to retire the Company’s non-performing retail loan after the property securing the loan was sold by the borrower for$18.6 million . The Company will realize a$19.7 million loss during the three months ended$4.4 million September 30, 2022 , which was fully reserved as ofJune 30, 2022 .
The Company issued a supplemental presentation detailing its second 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
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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INVESTOR RELATIONS
+1 (212) 405-8500
IR@tpgrefinance.com
MEDIA
+1 (415) 743-1550
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