NEW YORK--(BUSINESS WIRE)--
TPG RE Finance Trust, Inc. (NYSE:TRTX) announced operating results for
the quarter ended June 30, 2017.
SECOND QUARTER 2017
-
Produced GAAP Net Income and Core Earnings of $25.3 million, or $0.64
per diluted common share, based on a pre-IPO weighted average share
count of 39.5 million shares
-
Increased Net Interest Income to $32.1 million, up $8.8 million, or
37.6% from the three months ended June 30, 2016
-
Closed $332 million of total loan commitments, lifting first half
total loan originations to $676 million
-
Owned a performing $2.7 billion high quality mortgage loan portfolio,
consisting primarily of floating rate, first mortgage loans, with a
weighted average LTV of 60.2%
SUBSEQUENT EVENTS
-
Completed initial public offering of 11.65 million shares of common
stock, including 0.65 million shares issued pursuant to the
underwriters’ greenshoe option, at a public offering price of $20.00
per share generating net proceeds of approximately $212 million
-
Distributed a common stock dividend of 9.5 million shares to pre-IPO
stockholders, simultaneous with the completion of the initial public
offering
-
Closed four first mortgage loans totaling $447.6 million with a
weighted average credit spread of LIBOR plus 4.2% and a weighted
average LTV of 59.6%. Year-to-date loan closings now total $1.12
billion with an additional $298.9 million under executed term sheets
-
Executed four term sheets for first mortgage loans totaling $298.9
million
-
Upsized credit facilities with Morgan Stanley and JP Morgan Chase by
an aggregate $353.5 million
-
Evaluating an existing first mortgage loan pipeline of $3.0 billion
Greta Guggenheim, Chief Executive Officer of TPG RE Finance Trust,
stated: “We maintained our strong origination pace in the second
quarter, closing $332 million of quality first mortgage loans. We did so
while simultaneously working toward our July IPO, which is a testament
to the strength of our team and the quality of our loan pipeline. With
the IPO successfully concluded, we are entirely focused on loan
originations and further reducing our cost of funds. With an enlarged
and strengthened capital base we expect to make deeper inroads in the
large-loan commercial mortgage market nationally. We are pleased with
our originations pace and are rigorously evaluating a $3.0 billion loan
pipeline for more quality originations. In this environment, we expect
our concentration on property-specific dynamics and our strict adherence
to rigorous credit standards will continue to deliver attractive
risk-adjusted returns to our shareholders.”
FINANCIAL RESULTS
During the quarter ended June 30, 2017, GAAP Net Income increased to
$25.3 million, or $0.64 per diluted common share, compared to $17.1
million, or $0.52 per diluted common share, during the same period in
the prior year. The increase was primarily a result of $9.0 million of
mortgage loan discount amortization, exit fees received, and minimum
multiple payments related to loan repayments during the quarter ended
June 30, 2017. This increase was partially offset by an increase in
Management Fees and Incentive Management Fees of $1.2 million.
Core Earnings, during the quarter ended June 30, 2017, increased to
$25.3 million, or $0.64 per diluted common share, compared to $23.5
million, or $0.60 per diluted common share, during the quarter ended
March 31, 2017. This increase was primarily a result of a $1.6 million
minimum multiple payment related to a mortgage loan repayment received
during the current quarter.
INVESTMENT TRANSACTIONS
During the quarter ended June 30, 2017, the following loan and CMBS
investments were executed:
-
Originated three first mortgage loans with an aggregate commitment
amount of $332.4 million, an initial funding amount of $283.1 million
and a deferred funding commitment of $49.3 million. All were bridge or
transitional loans. These loans have a weighted average credit spread
of LIBOR plus 3.9%, a weighted average term to extended maturity of
4.2 years, and a weighted average loan-to-value (“LTV”) of 66.8%.
-
Acquired four CMBS investments for short-term investment purposes,
which had a credit rating of AAA or were backed by the full faith and
credit of the U.S.Treasury, with an aggregate face amount of $60
million and a weighted average yield to final maturity of 2.4%.
During the quarter ended June 30, 2017, the following principal
repayments were received:
-
Ten first mortgage loans totaling $762.7 million were repaid in full.
The weighted average credit spread of these loans, based on unpaid
principal balance at the time of repayment, was LIBOR plus 5.3%. The
net proceeds received from the loan repayments were utilized to retire
$359.1 million of borrowings under the Company’s CLO and $184.3
million of borrowings related to our existing secured revolving
repurchase facilities. Additionally, partial loan repayments of $39.7
million related to 13 loans with a weighted average credit spread of
LIBOR plus 5.1% were received.
-
Seven CMBS investments made principal repayments totaling $28 million,
consisting of three partial repayments totaling $0.1 million and four
full repayments of $27.9 million. The net proceeds from these
repayments retired $19.2 million of borrowings under our existing
secured revolving repurchase facilities.
Since June 30, 2017, and through August 23, 2017, the Company has closed
$447.6 million of first mortgage loans with a weighted average credit
spread of LIBOR plus 4.2%, a weighted average term to extended maturity
of 5.6 years and a weighted average LTV of 59.6%. Year-to-date loan
originations total $1.12 billion in commitments, pending loan
originations subject to executed term sheets total $298.9 million in
commitments, and year-to-date loan repayments total $974.5 million of
unpaid principal balance.
FINANCING ACTIVITIES AND BORROWING CAPACITY
During the quarter ended June 30, 2017, the Company increased its
borrowing capacity by $500 million by amending two of its existing
secured revolving repurchase facilities:
|
1.
|
|
On June 8, 2017, the Wells Fargo Bank, National Association, credit
facility was increased to a maximum facility amount of $750 million
from $500 million. The current extended maturity of this credit
facility is May 2021.
|
| |
|
|
2.
| |
On June 12, 2017, the Goldman Sachs Bank USA, credit facility was
increased to a maximum facility amount of $750 million from $500
million. The current extended maturity of this credit facility is
August 2019.
|
| |
|
As of June 30, 2017, the Company had cash and cash equivalents of $200.7
million, $1.5 billion of financing capacity under its current lending
arrangements to originate or acquire mortgage loans and CMBS
investments, and a weighted average cost of funds of LIBOR plus 2.48%.
The Company’s weighted average cost of funds declined 13 basis points
compared to the prior quarter as a result of reducing its CLO borrowings
and obtaining lower credit spreads on borrowings under its existing
secured revolving repurchase facilities.
LOAN PORTFOLIO
The Company’s $2.7 billion mortgage loan portfolio at June 30, 2017
consisted of high quality, primarily floating rate, first mortgage
loans, secured by properties solely within the United States. The loan
portfolio has an aggregate unpaid principal balance of $2.2 billion, and
approximately $510.3 million of unfunded loan commitments, with a
weighted average credit spread of LIBOR plus 5.0% and a weighted average
LTV of 60.2%. The loan portfolio consists of 97.2% first mortgage loans,
97.8% of the mortgage loans are floating rate, and the loans are
well-diversified by property type, with no property type comprising more
than 22% of the loan portfolio (net). The weighted average credit spread
for our loan portfolio was LIBOR plus 5.02%, as compared to 5.16% for
the prior quarter ended March 31, 2017. No loan impairments or loan loss
reserves were recorded as of June 30, 2017. Since inception, the Company
has not experienced a credit loss event.
INITIAL PUBLIC OFFERING
On July 25, 2017, the Company completed an initial public offering of 11
million shares of common stock at a public offering price of $20.00 per
share, generating net proceeds of approximately $200 million. On August
22, 2017, the Company issued and sold, and the underwriters purchased
under its greenshoe option, 650,000 shares of common stock for net
proceeds of approximately $12.2 million. The combined net proceeds of
approximately $212.2 million will be utilized to originate or acquire
mortgage loans and CMBS investments, and for general corporate purposes.
On July 25, 2017, simultaneous with the completion of the initial public
offering, the Company distributed a stock dividend of approximately 9.5
million shares to its pre-IPO stockholders.
BOARD OF DIRECTORS APPOINTMENTS
Upon the listing of the Company’s common stock on the NYSE on July 20,
2017, four independent members were elected to the Company’s Board of
Directors: Michael Gillmore; Wendy Silverstein; Bradley Smith; and
Gregory White. These directors join three existing members, all of whom
are partners at TPG: Avi Banyasz, Chairman; Greta Guggenheim, CEO; and
Kelvin Davis. The Board of Directors now consists of four independent
and three TPG-affiliated members, all with significant industry-specific
knowledge, experience, and proven relationships within the real estate
industry.
EARNINGS CALL SCHEDULE
The Company will commence regular conference calls to review quarterly
results of operations beginning with the third quarter, in November 2017.
ABOUT TRTX
TPG RE Finance Trust, Inc. (NYSE:TRTX) (the “Company” or “TRTX”) is a
commercial real estate finance company, operating as a real estate
investment trust (“REIT”), that focuses primarily on directly
originating, acquiring, and managing commercial mortgage loans and other
commercial real estate‐related debt instruments for its balance sheet.
The Company is externally managed by TPG RE Finance Trust Management,
L.P., an affiliate of TPG Global, LLC (“TPG”), a leading global
alternative investment firm with over a 20‐year history and over $73
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 originate loans in the pipeline the Company is evaluating are
forward-looking statements, and the Company cannot assure you that TRTX
will enter into definitive documents or close any of the loans 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.
|
|
TPG RE Finance Trust, Inc.
CONSOLIDATED BALANCE
SHEETS
In thousands, except share and per share data
(unaudited) |
|
|
|
|
| June 30,
2017 |
| December 31,
2016 |
| ASSETS | | | | | |
|
Cash and Cash Equivalents
| | |
$
|
200,653
| | |
$
|
103,126
| |
|
Restricted Cash
| | | |
1,081
| | | |
849
| |
|
Accounts Receivable
| | | |
382
| | | |
644
| |
|
Accounts Receivable from Servicer/Trustee
| | | |
47,416
| | | |
34,743
| |
|
Accrued Interest Receivable
| | | |
12,207
| | | |
14,023
| |
Loans Held for Investment (includes $1,462,300 and $1,397,610
pledged
as collateral under repurchase agreements)
| | | |
2,191,911
| | | |
2,449,990
| |
Investment in Commercial Mortgage-Backed Securities, Available-
for-Sale
(includes $128,298 and $51,305 pledged as collateral
under
repurchase agreements)
| | | |
129,585
| | | |
61,504
| |
|
Other Assets, Net
| | |
|
3,427
|
| |
|
704
|
|
|
Total Assets
| | |
$
|
2,586,662
|
| |
$
|
2,665,583
|
|
| LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | |
|
Liabilities
| | | | | |
|
Accrued Interest Payable
| | |
$
|
4,620
| | |
$
|
2,907
| |
|
Accrued Expenses
| | | |
9,407
| | | |
6,555
| |
Collateralized Loan Obligation (net of deferred financing costs of
$1,208 and $2,541)
| | | |
166,077
| | | |
540,780
| |
Repurchase Agreements (net of deferred financing costs of $8,939
and $8,159)
| | | |
1,139,649
| | | |
1,013,370
| |
Notes Payable (net of deferred financing costs of $2,886 and
$2,883)
| | | |
235,525
| | | |
108,499
| |
|
Payable to Affiliates
| | | |
6,536
| | | |
3,955
| |
|
Deferred Revenue
| | | |
356
| | | |
482
| |
|
Dividend Payable
| | |
|
20,520
|
| |
|
18,346
|
|
|
Total Liabilities
| | | |
1,582,690
| | | |
1,694,894
| |
|
Commitments and Contingencies
| | | | | |
|
Stockholders’ Equity:
| | | | | |
Preferred Stock ($0.001 par value; 125 and 125 shares authorized;
125
and 125 shares issued and outstanding, respectively)
| | | |
—
| | | |
—
| |
Common Stock ($0.001 par value; 95,500,000 and 95,500,000
shares
authorized; 39,252,219 and 38,260,053 shares issued and
outstanding, respectively)
| | | |
40
| | | |
39
| |
Class A Common Stock ($0.001 par value; 2,500,000 and
2,500,000
shares authorized; 982,211 and 967,500 shares issued
and outstanding, respectively)
| | | |
1
| | | |
1
| |
| Additional Paid-in-Capital | | | |
1,004,466
| | | |
979,467
| |
|
Retained Earnings (Accumulated Deficit)
| | | |
(3,073
|
)
| | |
(10,068
|
)
|
|
Accumulated Other Comprehensive Income
| | |
|
2,538
|
| |
|
1,250
|
|
|
Total Stockholders' Equity
| | |
|
1,003,972
|
| |
|
970,689
|
|
|
Total Liabilities and Stockholders' Equity
| | |
$
|
2,586,662
|
| |
$
|
2,665,583
|
|
| | | | |
|
|
|
TPG RE Finance Trust, Inc.
CONSOLIDATED STATEMENTS
OF INCOME & COMPREHENSIVE INCOME
In thousands,
except share and per share data
(unaudited) |
|
|
|
|
| Three Months Ended
June 30, |
| Six Months Ended
June 30, |
| | | 2017 |
| 2016 | | 2017 |
| 2016 |
| INTEREST INCOME | | | | | | | | | |
|
Interest Income
| | |
$
|
51,736
| | |
$
|
38,400
| | |
$
|
99,677
| | |
$
|
72,132
| |
|
Interest Expense
| | |
|
(19,635
|
)
| |
|
(15,076
|
)
| |
|
(37,435
|
)
| |
|
(28,006
|
)
|
| Net Interest Income | | |
|
32,101
|
| |
|
23,324
|
| |
|
62,242
|
| |
|
44,126
|
|
| OTHER REVENUE | | | | | | | | | |
|
Other Income, net
| | |
|
245
|
| |
|
296
|
| |
|
367
|
| |
|
311
|
|
| Total Other Revenue | | |
|
245
|
| |
|
296
|
| |
|
367
|
| |
|
311
|
|
| OTHER EXPENSES | | | | | | | | | |
|
Professional Fees
| | | |
463
| | | |
888
| | | |
1,192
| | | |
1,226
| |
|
General and Administrative
| | | |
720
| | | |
1,190
| | | |
1,189
| | | |
1,446
| |
|
Servicing and Asset Management Fees
| | | |
1,205
| | | |
648
| | | |
2,341
| | | |
1,510
| |
|
Management Fee
| | | |
2,768
| | | |
2,149
| | | |
5,356
| | | |
4,133
| |
|
Collateral Management Fee
| | | |
71
| | | |
219
| | | |
202
| | | |
493
| |
|
Incentive Management Fee
| | |
|
1,805
|
| |
|
1,266
|
| |
|
3,386
|
| |
|
2,074
|
|
| Total Other Expenses | | |
|
7,032
|
| |
|
6,360
|
| |
|
13,666
|
| |
|
10,882
|
|
| Income Before Income Taxes | | | |
25,314
| | | |
17,260
| | | |
48,943
| | | |
33,555
| |
|
Income Taxes
| | |
|
14
|
| |
|
(144
|
)
| |
|
(140
|
)
| |
|
(190
|
)
|
| Net Income | | |
$
|
25,328
| | |
$
|
17,116
| | |
$
|
48,803
| | |
$
|
33,365
| |
|
Preferred Stock Dividends
| | |
|
(8
|
)
| |
|
(8
|
)
| |
|
(8
|
)
| |
|
(8
|
)
|
Net Income Attributable to Common Stockholders | | |
$
|
25,320
|
| |
$
|
17,108
|
| |
$
|
48,795
|
| |
$
|
33,357
|
|
|
Basic Earnings per Common Share
| | |
$
|
0.64
|
| |
$
|
0.52
|
| |
$
|
1.24
|
| |
$
|
1.08
|
|
|
Diluted Earnings per Common Share
| | |
$
|
0.64
|
| |
$
|
0.52
|
| |
$
|
1.24
|
| |
$
|
1.08
|
|
Weighted Average Number of Common Shares Outstanding
| | | | | | | | | |
|
Basic:
| | | |
39,482,038
| | | |
32,708,334
| | | |
39,355,499
| | | |
30,900,638
| |
|
Diluted:
| | |
|
39,482,038
|
| |
|
32,708,334
|
| |
|
39,355,499
|
| |
|
30,900,638
|
|
|
Dividends Declared per Common Share
| | |
$
|
0.51
|
| |
$
|
0.53
|
| |
$
|
1.05
|
| |
$
|
0.53
|
|
| OTHER COMPREHENSIVE INCOME | | | | | | | | | |
| Net Income | | |
$
|
25,328
| | |
$
|
17,116
| | |
$
|
48,803
| | |
$
|
33,365
| |
Unrealized Gain on Commercial Mortgage-Backed Securities | | |
|
56
|
| |
|
809
|
| |
|
1,288
|
| |
|
1,037
|
|
Comprehensive Net Income | | |
$
|
25,384
|
| |
$
|
17,925
|
| |
$
|
50,091
|
| |
$
|
34,402
|
|
| | | | | | | | |
|
|
|
TPG RE Finance Trust, Inc.
CONSOLIDATED STATEMENTS
OF CASH FLOWS
In thousands
(unaudited) |
|
|
|
|
| Six Months Ended
June 30, |
| | | 2017 |
| 2016 |
| Cash Flows from Operating Activities: | | | | | |
|
Net Income
| | |
$
|
48,803
| | |
$
|
33,365
| |
Adjustment to Reconcile Net Income to Net Cash Provided by (Used
in) Operating Activities:
| | | | | |
Amortization and Accretion of Premiums, Discounts and Loan
Origination Fees, Net
| | | |
(9,805
|
)
| | |
(1,922
|
)
|
|
Amortization of Deferred Financing Costs
| | | |
5,453
| | | |
4,289
| |
|
Decrease (Increase) in Capitalized Accrued Interest
| | | |
2,456
| | | |
(583
|
)
|
|
Cash Flows Due to Changes in Operating Assets and Liabilities:
| | | | | |
|
Accounts Receivable
| | | |
262
| | | |
2,488
| |
|
Accrued Interest Receivable
| | | |
1,816
| | | |
(3,323
|
)
|
|
Accrued Expenses
| | | |
(671
|
)
| | |
6,020
| |
|
Accrued Interest Payable
| | | |
1,713
| | | |
646
| |
|
Payable to Affiliates
| | | |
2,581
| | | |
(1,553
|
)
|
|
Deferred Income / Gain
| | | |
(126
|
)
| | |
—
| |
|
Change in Other Assets
| | |
|
143
|
| |
|
—
|
|
| Net Cash Provided by Operating Activities | | | |
52,625
| | | |
39,427
| |
| Cash Flows from Investing Activities: | | | | | |
|
Restricted Cash
| | | |
(232
|
)
| | |
(548
|
)
|
|
Origination of Loans Held for Investment
| | | |
(524,725
|
)
| | |
(252,348
|
)
|
|
Purchase of Loans Held for Investment
| | | |
—
| | | |
(358,636
|
)
|
|
Advances on Loans Held for Investment
| | | |
(154,566
|
)
| | |
(152,666
|
)
|
|
Principal Advances Held by Servicer/Trustee
| | | |
—
| | | |
(566
|
)
|
|
Principal Repayments of Loans Held for Investment
| | | |
883,146
| | | |
265,431
| |
|
Proceeds from Sales of Loans Held for Investment
| | | |
52,443
| | | |
—
| |
|
Purchase of Commercial Mortgage-Backed Securities | | | |
(96,610
|
)
| | |
(49,754
|
)
|
|
Principal Repayments of Mortgage-Backed Securities | | | |
29,666
| | | |
—
| |
|
Purchases and Disposals of Fixed Assets
| | |
|
(218
|
)
| |
|
—
|
|
| Net Cash Provided by (Used in) Investing Activities | | | |
188,904
| | | |
(549,087
|
)
|
| Cash Flows from Financing Activities: | | | | | |
|
Payments on Collateralized Loan Obligation
| | | |
(392,289
|
)
| | |
(191,158
|
)
|
|
Proceeds from Collateralized Loan Obligation
| | | |
16,254
| | | |
53,464
| |
|
Payments on Secured Financing Agreements
| | | |
(547,820
|
)
| | |
(101,288
|
)
|
|
Proceeds from Secured Financing Agreements
| | | |
798,514
| | | |
616,246
| |
|
Payment of Deferred Financing Costs
| | | |
(4,027
|
)
| | |
(9,577
|
)
|
|
Proceeds from Issuance of Common Stock
| | | |
24,635
| | | |
98,168
| |
|
Proceeds from Issuance of Class A Common Stock
| | | |
365
| | | |
1,832
| |
|
Dividends Paid on Common Stock
| | | |
(38,177
|
)
| | |
(38,836
|
)
|
|
Dividends Paid on Class A Common Stock
| | | |
(1,449
|
)
| | |
(1,050
|
)
|
|
Dividends Paid on Preferred Stock
| | |
|
(8
|
)
| |
|
(8
|
)
|
| Net Cash Provided by (Used in) Financing Activities | | |
|
(144,002
|
)
| |
|
427,793
|
|
| Net Change in Cash and Cash Equivalents | | | |
97,527
| | | |
(81,867
|
)
|
|
Cash and Cash Equivalents at Beginning of Period
| | |
|
103,126
|
| |
|
104,936
|
|
| Cash and Cash Equivalents at End of Period | | |
$
|
200,653
|
| |
$
|
23,069
|
|
| Supplemental Disclosure of Cash Flow Information: | | | | | |
|
Interest Paid
| | |
$
|
30,270
| | |
$
|
22,556
| |
|
Taxes Paid
| | | |
140
| | | |
69
| |
Supplemental Disclosure of Non-Cash Investing and Financing
Activities: | | | | | |
|
Dividends Declared, not paid
| | |
$
|
20,520
| | |
$
|
—
| |
Principal Repayments of Loans Held for Investment by
Servicer/Trustee, Net
| | | |
44,024
| | | |
3,618
| |
Unrealized Gain on Commercial Mortgage-Backed Securities,
Available-for-Sale
| | | |
1,288
| | | |
1,037
| |
|
Proceeds from Secured Financing Agreements Held by Trustee
| | | |
3,392
| | | |
—
| |
|
Accrued Deferred Financing Costs
| | | |
2,125
| | | |
2,373
| |
|
Accrued Other Assets
| | | |
2,648
| | | |
—
| |
| | | | | | | | |
|
|
|
TPG RE Finance Trust, Inc.
Core Earnings
In
thousands, except share and per share data
(unaudited) |
|
|
|
|
| Three Months Ended |
| | | June 30, 2017 |
|
| March 31, 2017 |
|
Net Income Attributable to Common Stockholders1 | | |
$
|
25,320
| | |
$
|
23,475
|
|
Non-Cash Compensation Expense
| | | |
—
| | | |
—
|
|
Depreciation and Amortization Expense
| | | |
—
| | | |
—
|
|
Unrealized Gains (Losses)
| | | |
—
| | | |
—
|
|
Other Items
| | |
|
—
| | |
|
—
|
|
Core Earnings2 | | |
$
|
25,320
| | |
$
|
23,475
|
Weighted-Average Common Shares Outstanding, Basic and Diluted
| | |
|
39,482,038
| | |
|
39,227,553
|
|
Core Earnings per Common Share, Basic and Diluted
| | |
$
|
0.64
| | |
$
|
0.60
|
_______________
|
|
1.
|
|
Represents GAAP Net Income attributable to our common and Class A
common stockholders.
|
|
2.
| |
We use Core Earnings to evaluate our performance excluding the
effects of certain transactions and GAAP adjustments we believe are
not necessarily indicative of our current loan activity and
operations. Core Earnings is a non-GAAP measure, which we define as
GAAP net income (loss) attributable to our stockholders, including
realized gains and losses not otherwise included in GAAP net income
(loss), and excluding (i) non-cash equity compensation expense, (ii)
depreciation and amortization, (iii) unrealized gains (losses), and
(iv) certain non-cash items. Core Earnings may also be adjusted from
time to time to exclude one-time events pursuant to changes in GAAP
and certain other non-cash charges as determined by our Manager,
subject to approval by a majority of our independent directors. The
exclusion of depreciation and amortization from the calculation of
Core Earnings only applies to debt investments related to real
estate to the extent we foreclose upon the property or properties
underlying such debt investments.
|
| |
|
| |
We believe that Core Earnings provides meaningful information to
consider in addition to our net income and cash flow from operating
activities determined in accordance with GAAP. This adjusted measure
helps us to evaluate our performance excluding the effects of
certain transactions and GAAP adjustments that we believe are not
necessarily indicative of our current loan portfolio and operations.
Although pursuant to the Management Agreement we calculate the
incentive and base management fees due to our Manager using Core
Earnings before incentive fees expense, we report Core Earnings
after incentive fee expense, as we believe this is a more meaningful
presentation of the economic performance of our common and Class A
common stock.
|
| |
|
| |
Core Earnings does not represent net income or cash generated from
operating activities and should not be considered as an alternative
to GAAP net income, or an indication of our GAAP cash flows from
operations, a measure of our liquidity, or an indication of funds
available for our cash needs. In addition, our methodology for
calculating Core Earnings may differ from the methodologies employed
by other companies to calculate the same or similar supplemental
performance measures, and accordingly, our reported Core Earnings
may not be comparable to the Core Earnings reported by other
companies.
|
| |
|
|
|
TPG RE Finance Trust, Inc. |
Book Value per Common Share |
In thousands, except share and per share data |
(unaudited) |
|
|
Set forth below is an analysis of the Company’s book value per share
adjusted for the impact of (1) the initial public offering of 11.65
million shares, inclusive of the underwriters’ partial greenshoe
exercise (650,000 shares), at a public offering price of $20.00 per
share, and (2) the stock dividend paid to the Company’s pre-IPO
stockholders upon the completion of the initial public offering:
|
|
| |
| |
| Three Months Ended June 30, 2017 | | | Amount | | Shares |
|
Total Stockholders’ Equity
| | |
$
|
1,003,972
| | | |
|
Preferred Stock
| | |
|
(125
|
)
| | |
|
Stockholders’ Equity, Net of Preferred Stock
| | |
$
|
1,003,847
|
| | |
|
Number of Common Shares Outstanding at Period End1 | | | | |
40,234,430
|
|
Book Value per Common Share
| | |
$
|
24.95
| | | |
| | | | |
|
| Equity Issuances - July 25, 2017 | | | | | |
|
IPO Net Proceeds
| | |
$
|
199,900
| | | |
|
Shares of Common Stock Issued in IPO
| | | | |
11,000,000
|
|
Dilution in Book Value per Common Share
| | |
$
|
(0.37
|
)
| | |
|
Net Proceeds from Stock Dividend
| | |
$
|
-
| | | |
|
Common Shares Issued in Stock Dividend2 | | | | |
9,455,083
|
|
Dilution in Book Value per Common Share
| | |
$
|
(4.75
|
)
| | |
| Equity Issuance – August 22, 2017 | | | | | |
|
IPO Greenshoe Exercise Net Proceeds
| | |
$
|
12,220
| | | |
|
Shares of Common Stock Issued in Greenshoe Exercise
| | | | |
650,000
|
|
Dilution in Book Value per Common Share
| | |
$
|
(0.01
|
)
| | |
Number of Common Shares Outstanding – Post-Stock Dividend and IPO
(Including Greenshoe Exercise)3 | | | | |
61,339,513
|
As-Adjusted Book Value per Common Share Post-IPO and Stock
Dividend (Including Greenshoe Exercise)4 | | |
$
|
19.82
| | | |
_______________
|
|
1.
|
|
Includes total outstanding common stock and Class A common stock at
June 30, 2017.
|
|
2.
| |
Consists of 9,224,268 shares of common stock and 230,815 shares of
Class A common stock.
|
|
3.
| |
Includes total outstanding common and Class A common stock on an
actual basis as of June 30, 2017, adjusted to give effect to the
July 25, 2017 and August 22, 2017 equity issuances.
|
|
4.
| |
Excludes the impact of operating and investing activities subsequent
to June 30, 2017.
|
| |
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170824006250/en/
TPG RE Finance Trust
INVESTOR RELATIONS
212-405
8500
IR@tpgrefinance.com
or
MEDIA
Luke
Barrett, 415-743-1550
media@tpg.com
Source: TPG RE Finance Trust, Inc.