Company Overview - TPG RE Finance Trust (TRTX) shares increased by 5.6% to $7.18, following a significant trading volume, contrasting with a 19.1% loss over the past four weeks [1] - The rise in investor optimism is linked to President Donald Trump's announcement of a 90-day pause on reciprocal tariffs for most countries [1] Earnings Expectations - TPG RE Finance Trust is projected to report quarterly earnings of $0.25 per share, reflecting a year-over-year decline of 16.7% [2] - Expected revenues for the upcoming report are $36.67 million, down 5.8% from the same quarter last year [2] Stock Performance and Trends - The consensus EPS estimate for TPG RE Finance Trust has remained unchanged over the last 30 days, indicating a potential lack of momentum in stock price movement without earnings estimate revisions [3] - The stock currently holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook [3] Industry Comparison - TPG RE Finance Trust is part of the Zacks Real Estate - Operations industry, where Bridge Investment Group Holdings Inc. (BRDG) also operates [3] - BRDG shares closed 16.8% higher at $8.97, but have experienced a -16.3% return over the past month [3] - The consensus EPS estimate for Bridge Investment Group has remained unchanged at $0.17, with a Zacks Rank of 4 (Sell) [4]

Financial Data and Key Metrics Changes - The company reported a 3% increase in net earning assets in the second half of 2024, driven by $446 million in new loan commitments, primarily in multifamily and industrial loans [9][16] - Distributable earnings for the year fully covered the $0.96 per share annual dividend, with a prerealized loss basis generating $1.08 per share, covering the dividend at 1.1 times [7][8] - The company maintained a 100% performing loan portfolio at year-end, with a weighted-average risk rating of 3.0, consistent over four quarters [17][32] Business Line Data and Key Metrics Changes - In 2024, the company originated 8 loans totaling $562.3 million, with 2 loans amounting to $242 million originated in the fourth quarter [18][68] - The company has a substantial investment pipeline with over $300 million in live investment opportunities in various stages of pursuit and diligence [9][30] Market Data and Key Metrics Changes - The company noted strong liquidity of $320.8 million and leverage of only 2.14:1, indicating a solid financial position to support growth [16][30] - The company expects real estate investment activity to increase in 2025, driven by elevated interest rates and the deployment of capital into new acquisitions [6][31] Company Strategy and Development Direction - The company aims to continue providing acquisition and tailored financing to recapitalize broken capital structures at reset valuations [6][12] - The management emphasized a focus on thoughtful, assertive, value-oriented risk and asset management to maximize shareholder value [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2025, citing a favorable economic environment and a reduction in interest rate volatility, which is expected to drive real estate activity [5][49] - The company anticipates that existing loans are more likely to lengthen rather than prepay due to the current interest rate environment [70] Other Important Information - The company has a low share of REO and nonaccrual loans, with no nonaccrual loans for five consecutive quarters [32] - The company owns 8 REO properties with an aggregate carrying value of $275.8 million, representing 7.4% of total assets [22][24] Q&A Session Summary Question: Can you discuss the multifamily loans that went into foreclosure? - Management indicated that the decision to foreclose was made after it became clear that borrowers would not meet modification terms, and they are now stabilizing the properties for sale [36][39] Question: How do you expect leverage to scale through the year? - Management expects to deploy existing liquidity first and then back-leverage, with current leverage at 2.14:1, historically operating around 3x to 3.3x [41][45] Question: Can you provide an update on life sciences exposure? - The company currently has 3 life sciences transactions, all built out and focusing on high-quality borrowers, with a slight uptick in leasing activity noted [52][54] Question: How do you define "reasonably quickly" regarding REO sales? - Management expects to reduce the existing REO portfolio by about half by the end of 2025, with some properties already in the market [61][63] Question: What is the outlook for CECL reserves going forward? - Management anticipates that the CECL rate expressed in basis points will remain stable or decline, with the dollar amount of reserves expected to increase as the loan book grows [84][86]

Core Insights - TPG RE Finance Trust (TRTX) reported revenue of $34.74 million for the quarter ended December 2024, reflecting a year-over-year increase of 10.3% [1] - The earnings per share (EPS) for the quarter was $0.10, a significant improvement from -$2.05 in the same quarter last year [1] - The reported revenue fell short of the Zacks Consensus Estimate of $39.48 million, resulting in a revenue surprise of -12.00% [1] - The company experienced an EPS surprise of -64.29%, with the consensus EPS estimate being $0.28 [1] Financial Performance Metrics - Net Interest Income was reported at $24.68 million, below the average estimate of $28.21 million from two analysts [4] - Other income, net, was $2.53 million, also falling short of the average estimate of $3.60 million from two analysts [4] - Total other revenue amounted to $10.06 million, compared to the two-analyst average estimate of $11.28 million [4] - Revenue from real estate owned operations was $7.54 million, slightly below the estimated $7.68 million from two analysts [4] Stock Performance - TPG RE Finance Trust shares returned +2% over the past month, while the Zacks S&P 500 composite increased by +4.7% [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Viewpoint - TPG RE Finance Trust reported quarterly earnings of $0.10 per share, significantly missing the Zacks Consensus Estimate of $0.28 per share, representing an earnings surprise of -64.29% [1][2] Financial Performance - The company posted revenues of $34.74 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 12%, compared to revenues of $31.49 million a year ago [2] - Over the last four quarters, TPG RE Finance Trust has surpassed consensus EPS estimates only once [2] Stock Performance and Outlook - TPG RE Finance Trust shares have increased by approximately 2.1% since the beginning of the year, while the S&P 500 has gained 4% [3] - The current consensus EPS estimate for the upcoming quarter is $0.26 on revenues of $39.5 million, and for the current fiscal year, it is $1.07 on revenues of $161.12 million [7] Industry Context - The Real Estate - Operations industry, to which TPG RE Finance Trust belongs, is currently ranked in the bottom 14% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact TPG RE Finance Trust's stock performance [5][6]

Core Insights - TPG RE Finance Trust (TRTX) is currently more attractive to value investors compared to WillScot (WSC) based on various financial metrics and outlooks [1][7]. Valuation Metrics - TRTX has a forward P/E ratio of 7.54, significantly lower than WSC's forward P/E of 19.61 [5]. - The PEG ratio for TRTX is 0.23, indicating a favorable valuation relative to its expected earnings growth, while WSC has a PEG ratio of 1.82 [5]. - TRTX's P/B ratio stands at 0.60, contrasting sharply with WSC's P/B ratio of 6.14, suggesting TRTX is undervalued compared to its book value [6]. Earnings Outlook - TRTX holds a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while WSC has a Zacks Rank of 4 (Sell), suggesting a less favorable earnings outlook [3]. - The solid earnings outlook for TRTX further supports its position as the superior value option in comparison to WSC [7]. Value Grades - TRTX has been assigned a Value grade of B, while WSC has a Value grade of C, reflecting TRTX's stronger valuation metrics [6].

Core Insights - TPG RE Finance Trust (TRTX) is currently more attractive to value investors compared to WillScot (WSC) based on various financial metrics and rankings [1][4][8] Valuation Metrics - TRTX holds a Value grade of B, while WSC has a Value grade of D, indicating TRTX is considered more undervalued [3] - TRTX has a P/B ratio of 0.60, significantly lower than WSC's P/B ratio of 5.91, suggesting TRTX is more undervalued relative to its book value [5] - The forward P/E ratio for TRTX is 7.37, while WSC's forward P/E is 21.95, further indicating TRTX's superior valuation [9] - TRTX has a PEG ratio of 0.22, compared to WSC's PEG ratio of 2.04, highlighting TRTX's better earnings growth potential relative to its price [9] Earnings Outlook - TRTX has a Zacks Rank of 1 (Strong Buy), indicating a strong earnings outlook, while WSC has a Zacks Rank of 5 (Strong Sell), suggesting a weaker earnings outlook [4][8] - The combination of a strong Zacks Rank and favorable Value grade positions TRTX as a superior investment opportunity [6]

Core Viewpoint - TPG RE Finance Trust (TRTX) is currently viewed as a better value opportunity compared to WillScot (WSC) based on various financial metrics and rankings [1]. Valuation Metrics - TRTX has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while WSC has a Zacks Rank of 5 (Strong Sell) [3]. - The forward P/E ratio for TRTX is 7.89, significantly lower than WSC's forward P/E of 23.36 [5]. - TRTX has a PEG ratio of 0.24, while WSC's PEG ratio is 2.17, suggesting TRTX is more favorably valued in terms of expected earnings growth [5]. - TRTX's P/B ratio stands at 0.65, compared to WSC's P/B of 6.29, indicating TRTX is trading at a lower market value relative to its book value [6]. - Based on these metrics, TRTX has earned a Value grade of B, while WSC has a Value grade of D [6]. Earnings Outlook - TRTX is experiencing an improving earnings outlook, which enhances its attractiveness as a value investment [7].

For the quarter ended September 2024, TPG RE Finance Trust (TRTX) reported revenue of $29.28 million, up 8.4% over the same period last year. EPS came in at $0.28, compared to -$1.33 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $39.86 million, representing a surprise of -26.53%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.28. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings - ...

TPG RE Finance Trust (TRTX) came out with quarterly earnings of $0.28 per share, in line with the Zacks Consensus Estimate. This compares to loss of $1.33 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this commercial real estate finance company would post earnings of $0.28 per share when it actually produced earnings of $0.28, delivering no surprise.Over the last four quarters, the company has surpassed consensus EPS estimates just once.TPG RE F ...

Financial Performance - Net interest income for the three months ended September 30, 2024, was $29.28 million, compared to $19.55 million for the same period in 2023, representing a 49.0% increase [13]. - Net income for the three months ended September 30, 2024, was $22.19 million, a significant recovery from a net loss of $61.21 million in the same period of 2023 [13]. - Earnings per common share for the three months ended September 30, 2024, was $0.23, compared to a loss of $0.83 per share in the same period of 2023 [13]. - Other revenue for the three months ended September 30, 2024, increased to $10.86 million, up from $7.47 million in the same period of 2023 [13]. - The company reported a credit loss benefit of $0.30 million for the three months ended September 30, 2024, contrasting with an expense of $75.81 million in the same period of 2023 [13]. - For the quarter ending June 30, 2024, net income was reported at $22,194,000, reflecting a positive performance compared to previous quarters [16]. - The net income attributable to common stockholders for the three months ended September 30, 2024, was $18.7 million, compared to a net loss of $64.6 million in the same period of 2023 [181]. Assets and Liabilities - Total assets as of September 30, 2024, were $3.66 billion, a decrease from $4.21 billion as of December 31, 2023 [12]. - Total liabilities decreased to $2.54 billion as of September 30, 2024, from $3.09 billion as of December 31, 2023 [12]. - Loans held for investment, net, decreased to $3.19 billion as of September 30, 2024, from $3.41 billion as of December 31, 2023 [12]. - Total stockholders' equity remained relatively stable at $1.12 billion as of September 30, 2024, compared to $1.12 billion as of December 31, 2023 [12]. - The carrying value of loans held for investment was $3,192.61 million as of September 30, 2024, with a fair value of $3,235.15 million [159]. Cash Flow and Financing Activities - Net cash provided by operating activities increased to $86,634, up from $56,903 in the prior year, representing a 52.3% increase [19]. - Net cash provided by investing activities was $558,279, a decrease from $982,534 in the previous year, indicating a 43.1% decline [19]. - Net cash used in financing activities decreased to $625,132 from $991,407, reflecting a 36.9% reduction [19]. - Cash, cash equivalents, and restricted cash at the end of the period totaled $226,799, down from $302,345 a year earlier, a decrease of 25% [19]. - Interest paid during the period was $151,682, compared to $203,615 in the same period last year, a reduction of 25.5% [19]. Credit Losses and Allowance - The allowance for credit losses was $66.68 million as of September 30, 2024, slightly down from $67.09 million as of December 31, 2023 [12]. - The company reported a significant decrease in the allowance for credit losses, with a net decrease of $482 compared to an increase of $172,658 in the previous year [19]. - The allowance for credit losses is adjusted by credit loss (expense) benefits, which are reported in the consolidated statements of income and comprehensive income [33]. - The allowance for credit losses related to senior loans was $66,680 as of September 30, 2024 [96]. - The total allowance for credit losses for loans held for investment was $236,629 as of September 30, 2023 [95]. Real Estate and Investments - The Company operates primarily as a real estate investment trust (REIT), maintaining its qualification to avoid U.S. federal income taxes on its taxable income [21]. - The carrying value of the Company's real estate owned (REO) assets was $188.5 million as of September 30, 2024, down from $198.0 million at acquisition [111]. - The Company modified loans to extend maturities and increase credit spreads, with one loan modification requiring an additional cash injection of $11.3 million from the borrower [108]. - The estimated fair value of the Company's loans held for investment portfolio was $3.2 billion as of September 30, 2024, with a weighted average gross credit spread of 3.71% [160]. - The Company incurred capital expenditures of $4.4 million for the nine months ended September 30, 2024, including $1.0 million of accrued capital expenditures [116]. Dividends and Stockholder Equity - Dividends on common stock declared per share remained at $0.24, with total dividends amounting to $19,798,000 for the quarter ending June 30, 2024 [16]. - The Company declared a cash dividend of $0.24 per share of common stock for Q3 2024, totaling $19.7 million, to be paid on October 25, 2024 [192]. - For the nine months ended September 30, 2024, common stock dividends amounted to $58.7 million, compared to $56.9 million for the same period in 2023, reflecting a year-over-year increase of 3.2% [195]. - The Company has a share repurchase program authorized for up to $25.0 million, with $24.96 million remaining capacity as of September 30, 2024 [190]. - Preferred stock dividends for the three months ended September 30, 2024, were $3.1 million, consistent with the previous year [181]. Management and Fees - The base management fee paid to the Manager is the greater of $250,000 per annum or 1.50% per annum of the Company's Equity [173]. - For the three months ended September 30, 2024, management fees incurred were $5.1 million, a decrease of 7.9% from $5.5 million in the same period of 2023 [176]. - The total management and incentive fees paid during the three months ended September 30, 2024, were $5.0 million, down from $5.9 million in 2023, reflecting a 15.2% decrease [176]. - The Company reimbursed the Manager $0.4 million for services rendered during the three months ended September 30, 2024, compared to $0.3 million in 2023 [178]. Compliance and Covenants - The Company must maintain a minimum cash liquidity of $15 million or 5% of recourse indebtedness as part of its financial covenants [153]. - The Company’s debt-to-equity ratio must not exceed 4.25 to 1.0 as per its financial covenants [153]. - The Company is in compliance with all financial covenants for its investment portfolio financing arrangements as of September 30, 2024 [155]. - The Company received a waiver for the minimum interest coverage ratio covenant, which was reduced from 1.5 to 1.0 to 1.4 to 1.0 effective June 30, 2023 [153].