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, 2017.
FOURTH QUARTER 2017 HIGHLIGHTS
|
--
|
Generated GAAP net income and Core Earnings of $24.8 million, or
$0.41 per diluted common share, based on a weighted average share
count of 60.8 million common shares
|
|
|
|
--
|
Closed seven new loan commitments totaling $494.58 million, with an
average loan size of $70.65 million, boosting full year closings to
$1.95 billion |
|
|
|
--
|
Declared cash dividends of $23.1 million, or $0.38 per common share,
representing an 8.0% annualized dividend yield based on the year-end
closing share price
|
|
|
| FULL YEAR 2017 HIGHLIGHTS |
|
|
|
--
|
Generated GAAP net income and Core Earnings of $94.4 million, or
$1.74 per diluted common share, based on a weighted average share
count of 54.2 million common shares
|
|
|
|
--
|
Expanded its high quality loan portfolio to $3.73 billion in total
loan commitments, comprised almost entirely of floating rate, first
mortgage loans with a weighted average LTV of 58.7%
|
|
|
|
--
|
Completed an initial public offering of 11.65 million shares of
common stock at a public offering price of $20.00 per share,
generating net proceeds of $211.6 million |
|
|
| SUBSEQUENT EVENTS |
|
|
|
--
|
Closed a $932.4 million collateralized loan obligation (“CLO”) to
finance one first mortgage whole loan and 25 pari passu first
mortgage loan participation interests at a current advance rate of
80.0% and a weighted average coupon of LIBOR plus 1.08%
|
|
|
|
--
|
Closed four first mortgage loans, totaling $367.20 million of loan
commitments, and has pending two first mortgage loans totaling
$206.0 million, for total new loan origination volume of $573.20
million |
Greta Guggenheim, Chief Executive Officer of TPG RE Finance Trust, Inc.,
stated: "We closed approximately $2.0 billion of loan originations in
2017, a year-over-year increase of 60%. Importantly, our growth in
assets and earnings was accompanied by attractive credit spreads, which
were achieved while targeting transitional loans with shorter borrower
business plans. We are off to a strong start in 2018, generating solid
growth in assets and strengthening our liabilities by issuing a $932.4
millionCRE CLO to provide low cost, matched-term funding for almost
one-third of our high-quality loan portfolio. Our performance in this
highly competitive environment demonstrates the importance of our long
term lending, credit and capital markets experience."
FINANCIAL RESULTS
During the quarter ended December 31, 2017, GAAP net income and Core
Earnings increased to $24.8 million, or $0.41 per diluted common share,
compared to $20.8 million, or $0.35 per diluted common share, during the
quarter ended September 30, 2017. The increase was due primarily to net
loan portfolio growth of $352.4 million and increased LIBOR during the
quarter ended December 31, 2017.
For the year ended December 31, 2017, GAAP net income and Core Earnings
increased to $94.4 million, or $1.74 per diluted common share, compared
to $70.0 million, or $1.69 per diluted common share, during the year
ended December 31, 2016. This increase was due primarily to net loan
portfolio growth of $727.0 million, an increase in LIBOR, and a decrease
in overall funding costs. This increase was partially offset by an
increase in Management Fees and Incentive Management Fees of $5.3
million due primarily to a $211.6 million increase in stockholders’
equity resulting from the Company’s initial public offering in July 2017.
INVESTMENT TRANSACTIONS
The following loan investments closed during the quarter and year ended
December 31, 2017:
-
During the three months ended December 31, 2017, the Company
originated and closed seven first mortgage loans with a total
commitment amount of $494.58 million, an initial funding amount of
$451.77 million, and a weighted average loan-to-value ratio of 63.7%.
The average loan size closed during the quarter was $70.65 million.
Additionally, the Company funded $86.97 million in connection with
funding obligations under existing loans, and received repayments of
$182.66 million from loan maturities and partial repayments.
-
For the year ended December 31, 2017, the Company originated and
closed 22 mortgage loans with a total commitment amount of $1.95
billion, an initial funding amount of $1.61 billion, and a weighted
average loan-to-value ratio of 63.3%. The average loan size closed
during the year was $88.43 million. Additionally, the Company funded
$313.16 million in connection with funding obligations under existing
loans, and received repayments of $1.20 billion from loan maturities,
partial repayments of loans, and loan sales.
From January 1, 2018 through February 26, 2018, the Company originated
four first mortgage loans, totaling $367.20 million of loan commitments
which have closed, and has pending two first mortgage loans totaling
$206.0 million for which borrowers have executed non-binding term sheets
with the Company, entered into a period of exclusivity with the Company,
and paid expense deposits to cover underwriting costs of the Company.
These loans will have an aggregate loan commitment of $573.20 million,
an initial funding amount of $503.45 million, and an average loan size
of $95.53 million. These loans were funded, or will be funded upon
closing, with a combination of cash-on-hand and borrowings.
BORROWING CAPACITY AND FINANCING ACTIVITIES
At December 31, 2017, the Company had cash and cash equivalents of $75.0
million and immediately available undrawn capacity of $194.6 million
with respect to collateral that has been pledged to and approved by
lenders under its secured revolving repurchase facilities. Total loan
related borrowings were $2.1 billion as of December 31, 2017,
representing a current advance rate of 66.2% against the aggregate
unpaid principal balance of the loan investments pledged to support
borrowings. The weighted average cost of funds for loan investments was
LIBOR plus 2.45%, a decline of 15 basis points from the year ended
December 31, 2016. In addition, the Company had $1.3 billion of
available financing capacity under its current lending arrangements to
originate or acquire mortgage loans and CMBS investments and a current
weighted average cost of funds of LIBOR plus 2.41%.
INITIAL PUBLIC OFFERING
During the third quarter of 2017, the Company completed its initial
public offering of 11.65 million shares of common stock at a public
offering price of $20.00 per share generating net proceeds of $211.6
million; which were used to originate commercial mortgage loans
consistent with the Company’s investment strategy.
COLLATERALIZED LOAN OBILIGATION
On February 14, 2018, the Company closed TRTX 2018-FL1, a $932.4 million
CLO that financed one first mortgage whole loan and 25 pari passu
first mortgage loan investment participation interests. TRTX 2018-FL1
has a current advance rate of 80.0%, a weighted average coupon of LIBOR
plus 1.08%, and a weighted average expected life of 1.62 years at
issuance. Proceeds from TRTX 2018-FL1 were used to repay $670.2 million
of borrowings under three of the Company’s six secured credit facilities.
DIVIDEND
On December 19, 2017, the Company declared a cash dividend of $0.38 per
common share, representing an 8.0% annualized dividend yield based on a
year-end closing share price of $19.05. The cash dividend was paid on
January 25, 2018 to holders of record as of December 29, 2017. During
the year ended December 31, 2017, TRTX declared cash dividends of $1.56
per common share, or $85.0 million, as compared to cash dividends of
$1.62 per common share, or $66.9 million, during the year ended December
31, 2016.
LOAN PORTFOLIO
The Company’s $3.73 billion mortgage loan portfolio at December 31, 2017
consisted of high quality, primarily floating rate, first mortgage loans
secured by properties in the United States, with 79.1% of the loans
secured by properties located in the top 25 MSAs. The loan portfolio had
an aggregate unpaid principal balance of $3.20 billion, $529.04 million
of unfunded loan commitments, and a weighted average LTV of 58.7%. The
loan portfolio consisted of 98.0% first mortgage loans, 99.9% floating
rate loans, and loans that are well-diversified by property type, with
no property type comprising more than 22.5% of the total. The weighted
average interest rate was LIBOR plus 4.76%. No loan impairments or loan
loss reserves were recorded as of December 31, 2017. Since inception,
the Company has not experienced a credit loss event.
CONFERENCE CALL AND WEBCAST INFORMATION
The Company will host a conference call tomorrow, February 27, 2018, at
8:30 a.m. Eastern Time (ET) to discuss its fourth quarter and full year
2017 results. To participate in the conference call, domestic callers
should dial +1-888-317-6016 at least ten minutes prior to the scheduled
call time. International callers should dial +1-412-317-6016. The
Webcast may also be accessed live by visiting the Company’s investor
relations website at www.investors.tpgrefinance.com/.
For those unable to participate during the live broadcast, a telephonic
replay of the call will also be available from 12:00 p.m. ET on Tuesday,
February 27, 2018 through 11:59 p.m. ET on Tuesday, March 13, 2018. To
access the replay, listeners may use +1-877-344-7529 (domestic) or
+1-412-317-0088 (international). The passcode for the replay is
10112141. The recorded replay will be available on the Company’s website
for one year after the date of the call.
ABOUT TRTX
TPG RE Finance Trust, Inc. (NYSE: TRTX) (“TRTX” or the “Company”) 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 a 25‐year history and approximately $79
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 originate loans in the pipeline 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.
|
|
TPG RE Finance Trust, Inc. CONSOLIDATED BALANCE SHEETS In thousands, except share and per share data |
|
|
| | |
| | |
| | | December 31,
2017 | | | December 31,
2016 | |
| ASSETS | | | | | | | | | |
|
Cash and Cash Equivalents
| | |
$
|
75,037
| | |
$
|
103,126
| |
|
Restricted Cash
| | | |
700
| | | |
849
| |
|
Accounts Receivable
| | | |
141
| | | |
644
| |
|
Accounts Receivable from Servicer/Trustee
| | | |
220
| | | |
34,743
| |
|
Accrued Interest Receivable
| | | |
16,861
| | | |
14,023
| |
|
Loans Held for Investment (includes $2,694,106 and $1,397,610 pledged
as collateral under secured revolving repurchase agreements)
| | | |
3,175,672
| | | |
2,449,990
| |
|
Investment in Commercial Mortgage-Backed Securities,
Available-for-Sale (includes $47,762 and $51,305 pledged as
collateral under secured revolving repurchase agreements)
| | | |
85,895
| | | |
61,504
| |
|
Other Assets, Net
| | |
|
859
| | |
|
704
| |
|
Total Assets
| | |
$
|
3,355,385
| | |
$
|
2,665,583
| |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | |
|
Liabilities
| | | | | | | | | |
|
Accrued Interest Payable
| | |
$
|
5,385
| | |
$
|
2,907
| |
|
Accrued Expenses
| | | |
5,067
| | | |
6,555
| |
|
Collateralized Loan Obligation (net of deferred financing costs of
$0 and $2,541)
| | | |
—
| | | |
540,780
| |
|
Secured Revolving Repurchase and Senior Secured Agreements (net of
deferred financing costs of $8,697 and $8,159)
| | | |
1,827,104
| | | |
1,013,370
| |
|
Notes Payable (net of deferred financing costs of $1,601 and $2,883)
| | | |
287,886
| | | |
108,499
| |
|
Payable to Affiliates
| | | |
5,227
| | | |
3,955
| |
|
Deferred Revenue
| | | |
317
| | | |
482
| |
|
Dividends Payable
| | |
|
23,068
| | |
|
18,346
| |
|
Total Liabilities
| | | |
2,154,054
| | | |
1,694,894
| |
|
Commitments and Contingencies
| | | | | | | | | |
|
Stockholders’ Equity:
| | | | | | | | | |
|
Preferred Stock ($0.001 par value; 100,000,000 and 125 shares
authorized; 125
and 125 shares issued and outstanding, respectively)
| | | |
—
| | | |
—
| |
|
Common Stock ($0.001 par value; 300,000,000 and 95,500,000 shares
authorized;
59,440,112 and 47,251,165 shares issued and outstanding,
respectively)
| | | |
60
| | | |
39
| |
|
Class A Common Stock ($0.001 par value; 2,500,000 and 2,500,000
shares
authorized; 1,178,618 and 1,194,863 shares issued and outstanding,
respectively)
| | | |
1
| | | |
1
| |
| Additional Paid-in-Capital | | | |
1,216,112
| | | |
979,467
| |
|
Accumulated Deficit
| | | |
(14,808
|
)
| | |
(10,068
|
)
|
|
Accumulated Other Comprehensive (Loss) Income
| | |
|
(34
|
)
| |
|
1,250
| |
|
Total Stockholders' Equity
| | |
|
1,201,331
| | |
|
970,689
| |
|
Total Liabilities and Stockholders' Equity
| | |
$
|
3,355,385
| | |
$
|
2,665,583
| |
| | | | | | | | |
|
|
|
TPG RE Finance Trust, Inc. CONSOLIDATED STATEMENTS OF INCOME & COMPREHENSIVE INCOME In thousands, except share and per share data |
|
|
|
| | |
| | | | Year Ended December 31, | |
| | | | 2017 | |
| 2016 | |
| 2015 | |
| INTEREST INCOME | | | | | | | | | | | | | | |
|
Interest Income
| | | |
$
|
198,903
| | |
$
|
153,631
| | |
$
|
128,647
| |
|
Interest Expense
| | | |
|
(78,268
|
)
| |
|
(61,649
|
)
| |
|
(47,564
|
)
|
| Net Interest Income | | | |
|
120,635
| | |
|
91,982
| | |
|
81,083
| |
| OTHER REVENUE | | | | | | | | | | | | | | |
|
Other Income, net
| | | |
|
1,697
| | |
|
416
| | |
|
54
| |
| Total Other Revenue | | | |
|
1,697
| | |
|
416
| | |
|
54
| |
| OTHER EXPENSES | | | | | | | | | | | | | | |
|
Professional Fees
| | | | |
3,132
| | | |
3,260
| | | |
5,224
| |
|
General and Administrative
| | | | |
2,975
| | | |
2,199
| | | |
784
| |
|
Servicing and Asset Management Fees
| | | | |
3,068
| | | |
3,625
| | | |
4,011
| |
|
Management Fee
| | | | |
14,096
| | | |
8,816
| | | |
6,902
| |
|
Collateral Management Fee
| | | | |
225
| | | |
849
| | | |
1,257
| |
|
Incentive Management Fee
| | | |
|
4,338
| | |
|
3,687
| | |
|
1,992
| |
| Total Other Expenses | | | |
|
27,834
| | |
|
22,436
| | |
|
20,170
| |
| Income Before Income Taxes | | | | |
94,498
| | | |
69,962
| | | |
60,967
| |
|
Income Taxes
| | | |
|
(146
|
)
| |
|
5
| | |
|
(1,612
|
)
|
| Net Income | | | |
$
|
94,352
| | |
$
|
69,967
| | |
$
|
59,355
| |
|
Preferred Stock Dividends
| | | |
|
(16
|
)
| |
|
(16
|
)
| |
|
(15
|
)
|
| Net Income Attributable to Common Stockholders | | | |
$
|
94,336
| | |
$
|
69,951
| | |
$
|
59,340
| |
|
Basic Earnings per Common Share
| | | |
$
|
1.74
| | |
$
|
1.69
| | |
$
|
1.81
| |
|
Diluted Earnings per Common Share
| | | |
$
|
1.74
| | |
$
|
1.69
| | |
$
|
1.81
| |
|
Weighted Average Number of Common Shares Outstanding
| | | | | | | | | | | | | | |
|
Basic:
| | | | |
54,194,596
| | | |
41,406,026
| | | |
32,867,969
| |
|
Diluted:
| | | |
|
54,194,596
| | |
|
41,406,026
| | |
|
32,867,969
| |
| OTHER COMPREHENSIVE INCOME | | | | | | | | | | | | | | |
| Net Income | | | |
$
|
94,352
| | |
$
|
69,967
| | |
$
|
59,355
| |
|
Unrealized (Loss) Gain on Commercial Mortgage-Backed Securities | | | |
|
(1,284
|
)
| |
|
1,250
| | |
|
—
| |
| Comprehensive Net Income | | | |
$
|
93,068
| | |
$
|
71,217
| | |
$
|
59,355
| |
| | | | | | | | | | | | | |
|
|
|
TPG RE Finance Trust, Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS In thousands |
|
|
|
| | |
| | | | Year Ended December 31, | |
| | | | 2017 | |
| 2016 | |
| 2015 | |
| Cash Flows from Operating Activities: | | | | | | | | | | | | | | |
|
Net Income
| | | |
$
|
94,352
| | |
$
|
69,967
| | |
$
|
59,355
| |
|
Adjustment to Reconcile Net Income to Net Cash Provided by Operating
Activities:
| | | | | | | | | | | | | | |
|
Amortization and Accretion of Premiums, Discounts and Loan
Origination Fees, Net
| | | | |
(19,477
|
)
| | |
(8,439
|
)
| | |
14,042
| |
|
Amortization of Deferred Financing Costs
| | | | |
11,788
| | | |
9,425
| | | |
6,500
| |
|
Capitalized Accrued Interest
| | | | |
5,517
| | | |
13,434
| | | |
(22,373
|
)
|
|
Gain on Sales of Loans Held for Investment and Commercial
Mortgage-Backed Securities, net
| | | | |
(185
|
)
| | |
—
| | | |
—
| |
|
Stock Compensation Expense
| | | | |
33
| | | |
—
| | | |
—
| |
|
Cash Flows Due to Changes in Operating Assets and Liabilities:
| | | | | | | | | | | | | | |
|
Accounts Receivable
| | | | |
503
| | | |
4,213
| | | |
9,432
| |
|
Accrued Interest Receivable
| | | | |
(3,056
|
)
| | |
(1,813
|
)
| | |
27,155
| |
|
Accrued Expenses
| | | | |
(1,843
|
)
| | |
(182
|
)
| | |
(2,128
|
)
|
|
Accrued Interest Payable
| | | | |
2,478
| | | |
984
| | | |
500
| |
|
Payable to Affiliates
| | | | |
1,272
| | | |
(2,243
|
)
| | |
6,126
| |
|
Deferred Fee Income
| | | | |
(165
|
)
| | |
482
| | | |
—
| |
|
Other Assets
| | | |
|
(44
|
)
| |
|
(94
|
)
| |
|
—
| |
| Net Cash Provided by Operating Activities | | | | |
91,173
| | | |
85,734
| | | |
98,609
| |
| Cash Flows from Investing Activities: | | | | | | | | | | | | | | |
|
Origination of Loans Held for Investment
| | | | |
(1,596,531
|
)
| | |
(535,185
|
)
| | |
(535,357
|
)
|
|
Purchased Accrued Interest
| | | | |
—
| | | |
—
| | | |
10,815
| |
|
Purchase of Loans Held for Investment
| | | | |
—
| | | |
(412,921
|
)
| | |
—
| |
|
Advances on Loans Held for Investment
| | | | |
(313,160
|
)
| | |
(318,998
|
)
| | |
(303,584
|
)
|
|
Principal Advances Held by Servicer/Trustee
| | | | |
496
| | | |
—
| | | |
(3,458
|
)
|
|
Principal Repayments of Loans Held for Investment
| | | | |
1,164,052
| | | |
781,049
| | | |
718,111
| |
|
Proceeds from Sales of Loans Held for Investment
| | | | |
65,054
| | | |
—
| | | |
—
| |
|
Purchase of Commercial Mortgage-Backed Securities | | | | |
(96,294
|
)
| | |
(59,509
|
)
| | |
(1,300
|
)
|
|
Principal Repayments of Mortgage-Backed Securities | | | | |
73,912
| | | |
1,173
| | | |
—
| |
|
Purchases of Fixed Assets
| | | |
|
(111
|
)
| |
|
(500
|
)
| |
|
—
| |
| Net Cash (Used in) Investing Activities | | | | |
(702,582
|
)
| | |
(544,891
|
)
| | |
(114,773
|
)
|
| Cash Flows from Financing Activities: | | | | | | | | | | | | | | |
|
Payments on Collateralized Loan Obligation
| | | | |
(559,574
|
)
| | |
(539,542
|
)
| | |
(508,746
|
)
|
|
Proceeds from Collateralized Loan Obligation
| | | | |
16,254
| | | |
80,083
| | | |
155,946
| |
|
Payments on Secured Financing Agreements
| | | | |
(797,018
|
)
| | |
(369,870
|
)
| | |
—
| |
|
Proceeds from Secured Financing Agreements
| | | | |
1,789,394
| | | |
1,117,069
| | | |
376,857
| |
|
Payment of Deferred Financing Costs
| | | | |
(8,699
|
)
| | |
(7,426
|
)
| | |
(6,808
|
)
|
|
Payment to Retire Common Stock
| | | | |
(13,851
|
)
| | |
—
| | | |
(55,574
|
)
|
|
Proceeds from Issuance of Preferred Stock
| | | | |
—
| | | |
—
| | | |
125
| |
|
Proceeds from Issuance of Common Stock
| | | | |
243,654
| | | |
245,453
| | | |
168,932
| |
|
Proceeds from Issuance of Class A Common Stock
| | | | |
365
| | | |
4,547
| | | |
19,382
| |
|
Payment of Initial Public Offering Transaction Costs
| | | | |
(7,060
|
)
| | |
—
| | | |
—
| |
|
Dividends Paid on Common Stock
| | | | |
(78,475
|
)
| | |
(71,238
|
)
| | |
(38,966
|
)
|
|
Dividends Paid on Class A Common Stock
| | | | |
(1,803
|
)
| | |
(1,875
|
)
| | |
(682
|
)
|
|
Dividends Paid on Preferred Stock
| | | |
|
(16
|
)
| |
|
(20
|
)
| |
|
(15
|
)
|
| Net Cash Provided by Financing Activities | | | |
|
583,171
| | |
|
457,181
| | |
|
110,451
| |
| Net Change in Cash, Cash Equivalents, and Restricted Cash | | | | |
(28,238
|
)
| | |
(1,976
|
)
| | |
94,287
| |
|
Cash, Cash Equivalents and Restricted Cash at Beginning of Year
| | | |
|
103,975
| | |
|
105,951
| | |
|
11,664
| |
| Cash, Cash Equivalents and Restricted Cash at End of Year | | | |
$
|
75,737
| | |
$
|
103,975
| | |
$
|
105,951
| |
| Supplemental Disclosure of Cash Flow Information: | | | | | | | | | | | | | | |
|
Interest Paid
| | | |
$
|
64,003
| | |
$
|
51,269
| | |
$
|
38,966
| |
|
Taxes Paid (Refund)
| | | | |
142
| | | |
(5
|
)
| | |
3,199
| |
| Supplemental Disclosure of Non-Cash Investing and Financing
Activities: | | | | | | | | | | | | | | |
|
Principal Repayments of Loans Held for Investment by
Servicer/Trustee, Net
| | | | |
220
| | | |
25,887
| | | |
58,556
| |
|
Dividends Declared, not paid
| | | | |
23,068
| | | |
18,346
| | | |
24,601
| |
|
Accrued Initial Public Offering Transaction Costs
| | | | |
312
| | | |
—
| | | |
—
| |
|
Accrued Deferred Financing Costs
| | | | |
1,054
| | | |
2,953
| | | |
—
| |
|
Unrealized Gain on Commercial Mortgage-Backed Securities,
Available-for-Sale
| | | | |
1,284
| | | |
1,250
| | | |
—
| |
|
Proceeds from Secured Financing Agreements Held by Trustee
| | | | |
—
| | | |
8,856
| | | |
—
| |
|
Accrued Other Assets Costs
| | | | |
—
| | | |
110
| | | |
—
| |
|
Accrued Common Stock Retirement Costs
| | | | |
239
| | | |
—
| | | |
—
| |
| | | | | | | | | | | | | |
|
|
|
TPG RE Finance Trust, Inc. Core Earnings In thousands, except share and per share data (unaudited) |
|
|
| |
| | | Three Months Ended, |
| | | December 31,
2017 |
|
| September 30,
2017 |
|
Net Income Attributable to Common Stockholders(1) | | |
$
|
24,754
| | |
$
|
20,787
|
|
Non-Cash Compensation Expense
| | | |
33
| | | |
—
|
|
Depreciation and Amortization Expense
| | | |
—
| | | |
—
|
|
Unrealized Gains (Losses)
| | | |
—
| | | |
—
|
|
Other Items
| | |
|
—
| | |
|
—
|
|
Core Earnings
| | |
$
|
24,787
| | |
$
|
20,787
|
|
Weighted-Average Common Shares Outstanding, Basic and Diluted
| | |
|
60,796,636
| | |
|
58,685,979
|
|
Core Earnings per Common Share, Basic and Diluted(2) | | |
$
|
0.41
| | |
$
|
0.35
|
|
Dividends Declared per Common Share
| | |
$
|
0.38
| | |
$
|
0.33
|
|
|
|
| Year Ended December 31, |
| | | | 2017 |
|
|
| 2016 |
|
Net Income Attributable to Common Stockholders(1) | | | |
$
|
94,336
| | | |
$
|
69,951
|
|
Non-Cash Compensation Expense
| | | | |
33
| | | | |
—
|
|
Depreciation and Amortization Expense
| | | | |
—
| | | | |
—
|
|
Unrealized Gains (Losses)
| | | | |
—
| | | | |
—
|
|
Other Items
| | | |
|
—
| | | |
|
—
|
|
Core Earnings
| | | |
$
|
94,369
| | | |
$
|
69,951
|
|
Weighted-Average Common Shares Outstanding, Basic and Diluted
| | | |
|
54,194,596
| | | |
|
41,406,026
|
|
Core Earnings per Common Share, Basic and Diluted(2) | | | |
$
|
1.74
| | | |
$
|
1.69
|
|
Dividends Declared per Common Share
| | | |
$
|
1.56
| | | |
$
|
1.62
|
| | | | | | | | | |
|
|
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, because 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.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20180226006611/en/
TPG RE Finance Trust, Inc.
Investor Relations
212-405-8500
IR@tpgrefinance.com
or
Media
Luke
Barrett, 415-743-1550
media@tpg.com
Source: TPG RE Finance Trust, Inc.