TPG RE Finance Trust, Inc. Reports Operating Results for the Quarter Ended September 30, 2023

TPG RE Finance Trust, Inc. (NYSE: TRTX) (“TRTX” or the “Company”) reported its operating results for the quarter ended September 30, 2023.

Regarding third quarter results, Doug Bouquard, Chief Executive Officer of TRTX, said: “We believe that this quarter's activity further positions TRTX to deliver long-term value to its shareholders. We believe our strong liquidity position, stable capital structure and the depth and breadth of the TPG real estate platform will enable TRTX to benefit from an attractive future investment environment.”

THIRD QUARTER 2023 ACTIVITY

• Recognized GAAP net (loss) attributable to common stockholders of ($64.6) million, or ($0.83) per common share, based on a diluted weighted average share count of 77.7 million common shares. Book value per common share was $12.04 as of September 30, 2023.
• Declared on September 11, 2023 a cash dividend of $0.24 per share of common stock which was paid on October 25, 2023 to common stockholders of record as of September 28, 2023. The Company paid on September 29, 2023 to stockholders of record as of September 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 with a total loan commitment of $43.6 million, an initial unpaid principal balance of $37.2 million, an interest rate of Term SOFR plus 4.55%, an interest rate floor of 3.25% and an as-is loan-to-value ratio of 63.3%. Additionally, funded $21.4 million of future funding obligations associated with previously originated and acquired loans.
• Received loan repayments of $297.0 million, including two full loan repayments totaling $261.3 million, across the following property types: 51.7% hotel; 45.8% multifamily; and 2.5% office.
• Sold an office loan for $79.0 million with an unpaid principal balance of $152.4 million, resulting in a loss on sale of $74.4 million, including transaction costs of $0.9 million.
• Sold a mixed-use loan for $95.0 million with an unpaid principal balance of $129.2 million, resulting in a loss on sale of $35.0 million, including transaction costs of $0.8 million.
• Acquired through foreclosure a multifamily property with a carrying value at September 30, 2023 of $71.3 million and a fair value at foreclosure of $71.1 million.
• Weighted average risk rating of the Company’s loan portfolio was 3.2 as of September 30, 2023, unchanged from June 30, 2023.
• Carried at quarter-end an allowance for credit losses of $236.6 million, a decrease of $41.7 million from $278.3 million as of June 30, 2023. Of the $236.6 million allowance for credit losses, $175.3 million is a specific reserve relating to five loans. The quarter-end allowance equals 560 basis points of total loan commitments as of September 30, 2023 compared to 572 basis points as of June 30, 2023.
• Held four non-accrual loans with a total amortized cost of $318.1 million compared to five loans at June 30, 2023 with a total amortized cost of $546.7 million.
• Ended the quarter with $570.6 million of total liquidity, comprised of: $286.7 million of cash-on-hand available for investment, net of $15.6 million held to satisfy liquidity covenants under the Company’s secured financing agreements; undrawn capacity under secured financing arrangements of $30.5 million; undrawn capacity under asset-specific financing arrangements and secured revolving credit facility of $0.3 million; and $237.5 million of reinvestment capacity in one of the Company’s three CRE CLOs.
• Non-mark-to-market debt represented 68.9% of total borrowings at September 30, 2023.

SUBSEQUENT EVENTS