Home Finance TPG RE Finance Trust, Inc. Reports Operating Results for the Fourth Quarter and Full Year Ended December 31, 2018 – Business Wire

TPG RE Finance Trust, Inc. Reports Operating Results for the Fourth Quarter and Full Year Ended December 31, 2018 – Business Wire

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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, 2018. For the fourth quarter of 2018 GAAP net income
was $28.6 million, earnings per diluted common share was $0.43, and book
value per common share at December 31, 2018 was $19.76.

FOURTH QUARTER 2018 HIGHLIGHTS

— Generated GAAP net income of $28.6 million, or $0.43 per diluted
common share, based on a weighted average share count of 67.2 million
common shares, an increase of 2.9 million common shares (4.5%) from the
three months ended September 30, 2018, due to the Company’s August 2018
underwritten public offering of common stock

— Closed five new loan commitments totaling $623.7 million, with an
average loan size of $124.7 million, an initial unpaid principal balance
of $452.1 million, a weighted average credit spread of 326 bps, and a
weighted average loan-to-value of 64.8%

— Closed a $1.0 billion managed Commercial Real Estate Collateralized
Loan Obligation (“CRE CLO”), which features a 24-month reinvestment
period, an advance rate of 79.5%, and a weighted average interest rate
at issuance of LIBOR plus 1.45%, before transaction costs

— Declared cash dividends of $29.0 million, or $0.43 per common share,
representing a 9.4% annualized dividend yield based on the quarter end
closing share price of $18.28

FULL YEAR 2018 HIGHLIGHTS

— Generated GAAP net income of $106.9 million, or $1.70 per diluted
common share, based on a weighted average share count of 63.0 million
common shares, an increase of 8.8 million common shares (16.2%) from the
year ended December 31, 2017, due to the Company’s August 2018
underwritten public offering of common stock and initial public offering
of common stock in July 2017

— Grew loan portfolio commitments to $4.9 billion, an increase of $1.2
billion (32.7%) from 2017, through the origination of $2.5 billion of
high quality floating rate, first mortgage loans, with an average loan
size of $97.0 million, an initial unpaid principal balance of $2.1
billion, and a weighted average credit spread of 356 bps

— Closed two CRE CLOs totaling $1.9 billion, financing 51 existing TRTX
first mortgage loan investments, comprising 48 pari passu
participation interests and three whole loans, further diversifying
sources of debt financing, reducing cost of funds, and increasing
non-recourse, matched-term financing to 52.1% of loan portfolio
borrowings

— Increased equity capital base through a $138.7 million underwritten
public offering of 7 million shares of common stock at $19.82 per common
share

Greta Guggenheim, Chief Executive Officer, stated: “We had a very strong
year, with originations totaling $2.5 billion, a 30% increase from 2017,
and with a weighted-average spread on 2018 originations of 356 bps. In
the face of ongoing competitive headwinds, we continued to strengthen
credit quality with 100% first mortgage loans, focusing on existing,
cash flowing assets. 2019 is already off to a strong start, with $629.5
million of loans closed, or in the process of closing, which together
with an expected lower level of 2019 repayments will support earnings
growth in the first quarter and beyond.”

The Company issued a supplemental presentation detailing its fourth
quarter and full year 2018 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 Tuesday, February 26, 2019. 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.

REPLAY INFORMATION

A replay of the conference call will be available after 11:30 a.m. ET on
Tuesday, February 26, 2019 through 11:59 p.m. ET on Tuesday, March 12,
2019. To access the replay, listeners may use +1-844-512-2921 (domestic)
or +1-412-317-6671 (international). The passcode for the replay is
13686717. The recorded replay will be available on the Company’s website
for one year after the call date.

ABOUT TRTX

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 $103
billion of assets under management. For more information regarding TRTX,
visit www.tpgrefinance.com.

FORWARD-LOOKING STATEMENTS

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 relating to the Company’s
ability to fund loans that are under signed term sheets and in closing
and originating loans in the pipeline that the Company is evaluating are
forward-looking statements, and the Company cannot assure you that TRTX
will close loans that are under signed term sheets and in closing or
enter into definitive documents and close any of the loans in the
pipeline that the Company is evaluating. 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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