The reported revenue represents a surprise of +2.31% over the Zacks Consensus Estimate of $38.42 million. With the consensus EPS estimate being $0.28, the company has not delivered EPS surprise. Here is how TPG RE Finance Trust performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Other income, net : $11.78 million versus the two-analyst average estimate of $10 million. View all Key Company Metrics for TPG RE Finance Trust here>>> TPG RE ...

A quarter ago, it was expected that this commercial real estate finance company would post earnings of $0.17 per share when it actually produced earnings of $0.30, delivering a surprise of 76.47%. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. There are no easy answers to this key question, but one reliable measure that can help investors address this is the ...

Interest Rate Exposure - As of June 30, 2024, the weighted average interest rate floor for the loan portfolio was 1.34%[391] - 99.8% of the loans by unpaid principal balance earned a floating rate of interest, with less than 0.9% of liabilities not containing interest rate floors greater than zero[391] - An immediate increase of 25 basis points in the benchmark interest rate would result in an increase of $7,995,000 in interest income from floating rate mortgage loan assets[392] - The total net exposure for floating rate mortgage loan assets was $3,198,152,000, leading to a net interest income change of $1,752,000 with a 25 basis point increase[392] Credit and Liquidity Risks - The company is exposed to credit risk, with performance depending on the sponsors' ability to generate adequate cash flows from properties serving as collateral[394] - Liquidity risk is associated with financing longer-maturity investments with shorter-term borrowings, potentially leading to margin call risks[401] - The company may sell assets to maintain adequate liquidity, especially during market disruptions that affect transaction activity[402] - The company is required to distribute a significant portion of its taxable income annually, which constrains its ability to accumulate operating cash flow[403] Market Conditions - Global macroeconomic conditions have led to increased volatility in public debt and equity markets, causing a reduction in investment activity in 2023 and early 2024[404] Risk Management - The company intends to hedge any currency exposures prudently, although such strategies may not eliminate all currency risk[408] Internal Controls - The effectiveness of the company's disclosure controls and procedures was confirmed by the Chief Executive Officer and Chief Financial Officer as of June 30, 2024[412] - There were no changes in internal control over financial reporting during the most recently completed fiscal quarter that materially affected the internal control[413]

Impact of Changing Rates Portfolio Net Interest Income Sensitivity ($ Impact per Share per Qua TRTX Loan Portfolio Consolidated Balance Sheets Three Months Ended June 30, 2024 $96,716 Net interest income Other income, net Revenue from real estate owned operations Total other revenue Other expenses 1,572 1,261 1,813 290 5,949 1,848 12,733 Credit loss benefit (expense), net (69,168) (5) Net income (loss) (3,551) Net Income (Loss) Attributable to Common Stockholders Weighted Average Number of Common Shares Out ...

Financial Data and Key Metrics Changes - GAAP net income attributable to common shareholders increased to $13.1 million from $2.6 million in the previous quarter [8] - Net interest margin for the loan portfolio rose to $26.8 million from $21.3 million, an increase of $5.5 million or $0.07 per common share [8] - Book value per share decreased slightly to $11.81 from $11.86 due to a slight increase in the CECL reserve [9] - Distributable earnings were $23.3 million or $0.30 per share, with a coverage ratio of 1.25 times for the $0.24 dividend [42] Business Line Data and Key Metrics Changes - Multifamily properties now represent 50% of the loan portfolio, while office properties have declined to 20.4% [9] - The company originated three senior mortgage loans totaling $116 million, all secured by multifamily properties [14] Market Data and Key Metrics Changes - The 10-year treasury yield approached 4.7%, with corporate credit spreads at multiyear tights [4] - Real estate credit spreads have rallied in certain areas but continue to underperform on a relative basis [4] Company Strategy and Development Direction - The company focuses on maintaining elevated levels of liquidity, proactively managing investment portfolio risks, and positioning the balance sheet to take advantage of dislocations in lending markets [5] - A share repurchase plan of up to $25 million was approved, reflecting management's confidence in the value of the company's shares [40] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in taming inflation and the impact of the Fed's signaling on rate cuts, which may pressure near-term values and borrowing costs [4] - Despite pressures on values within the multifamily sector, ample liquidity for both debt and equity transactions is still observed [39] Other Important Information - The company ended the quarter with $370 million of liquidity and a debt to equity ratio of 2.21 [6] - The CECL reserve increased slightly to $74.1 million, with no non-performing loans reported [42][43] Q&A Session Summary Question: Inquiry about investment activity and pipeline - Management expressed excitement about a very active pipeline, focusing on multifamily lending due to lower loan-to-value ratios and current market conditions [24] Question: Thoughts on extending the Morgan Stanley facility - Management confirmed a strong relationship with Morgan Stanley and noted that they have not drawn much from this facility recently due to a shift in financing focus [25] Question: Expectations for portfolio growth in the coming quarters - Management indicated that repayments have slowed but expressed a strong appetite for new investments to grow earnings [76] Question: Context on cap rates in the multifamily sector - Management noted that cap rates for new transactions are generally in the mid to high 5s range, with liquidity tightening as cap rates approach 6% [32] Question: Approach to share repurchase plan - Management stated that the share repurchase is a tool to generate earnings and reflects confidence in the company's credit quality relative to book value [95]

First Quarter 2024 Supplemental Information April 30, 2024 Forward-Looking Statements and Other Disclosur This progentation contains from and looking stations within the meaning of Serient 72L of the Securities de of 1932 as annonded and Serieng 2F of the Seruition Ferhange (4r with respect to, anong other things, our operations and financial performance. You can itentfy these forward looking statements by the use of words such as "outlook," "beli roredict, ""intend," "will," "plon," "estimate," "anticipate ...

Part I. Financial Information [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for TPG RE Finance Trust, Inc. as of March 31, 2024, and for the three months then ended, including balance sheets, income statements, cash flows, and detailed notes [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased to $3.83 billion from $4.21 billion, primarily due to reductions in loans held for investment, while total liabilities also decreased to $2.71 billion from $3.09 billion, mainly from repayments on secured financing Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $203,077 | $206,376 | | Loans held for investment, net | $3,296,232 | $3,409,684 | | Real estate owned | $169,267 | $174,057 | | **Total assets** | **$3,829,326** | **$4,214,312** | | **Liabilities** | | | | Collateralized loan obligations, net | $1,875,381 | $1,915,174 | | Secured financing agreements, net | $619,832 | $820,824 | | **Total liabilities** | **$2,708,434** | **$3,089,527** | | **Stockholders' equity** | | | | **Total stockholders' equity** | **$1,120,892** | **$1,124,785** | [Consolidated Statements of Income and Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) Net income significantly increased to $16.7 million for Q1 2024 from $7.4 million in Q1 2023, driven by higher net interest income and revenue from real estate owned operations, resulting in $0.17 diluted earnings per share Consolidated Income Statement Highlights (in thousands, except per share data) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net interest income | $26,803 | $21,736 | | Total other revenue | $12,124 | $3,519 | | Credit loss expense, net | $(4,356) | $(7,784) | | **Net income** | **$16,744** | **$7,375** | | **Net income attributable to common stockholders** | **$13,055** | **$3,823** | | **Earnings per common share, diluted** | **$0.17** | **$0.05** | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating activities generated $37.4 million in cash, while investing activities provided $365.5 million, largely from loan repayments, offset by $406.5 million used in financing activities, resulting in a slight net decrease in cash Consolidated Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $37,371 | $23,473 | | Net cash provided by investing activities | $365,515 | $61,596 | | Net cash used in financing activities | $(406,542) | $(177,218) | | **Net change in cash, cash equivalents, and restricted cash** | **$(3,656)** | **$(92,149)** | [Notes to the Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) These notes detail the company's accounting policies, loan portfolio, real estate owned assets, financing arrangements, and other financial matters, including CECL methodology and VIE consolidation - The company's principal business is originating and acquiring a diversified portfolio of commercial real estate credit investments, primarily first mortgage loans in the U.S.[30](index=30&type=chunk) - The allowance for credit losses is determined using the Current Expected Credit Loss (CECL) model, which involves significant estimates regarding loan performance, collateral values, and macroeconomic forecasts[40](index=40&type=chunk)[45](index=45&type=chunk) - The company consolidates Variable Interest Entities (VIEs), primarily its Collateralized Loan Obligation (CLO) issuers, where it is determined to be the primary beneficiary[33](index=33&type=chunk)[130](index=130&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=51&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2024 financial condition and operations, covering business overview, loan activities, key financial metrics, investment portfolio, financing, liquidity, capital resources, and critical accounting estimates [First Quarter 2024 Activity and Key Financial Measures](index=52&type=section&id=First%20Quarter%202024%20Activity%20and%20Key%20Financial%20Measures) In Q1 2024, the company originated $116.3 million in loans and received $227.8 million in repayments, reporting $13.1 million in net income and $23.3 million in Distributable Earnings - Originated three first mortgage loans with total commitments of **$116.3 million**[237](index=237&type=chunk) - Received five full loan repayments and other principal payments totaling **$227.8 million**[237](index=237&type=chunk) Key Financial Metrics Q1 2024 | Metric | Value | | :--- | :--- | | Net Income (Common Stockholders) | $13.1 million | | Distributable Earnings | $23.3 million | | Distributable Earnings per Diluted Share | $0.30 | | Common Stock Dividend per Share | $0.24 | | Book Value per Common Share | $11.81 | - Available near-term liquidity as of March 31, 2024, was **$370.7 million**, comprised of cash-on-hand, cash in CRE CLOs, and undrawn capacity under various financing agreements[236](index=236&type=chunk) [Investment Portfolio Overview](index=55&type=section&id=Investment%20Portfolio%20Overview) As of March 31, 2024, the loan portfolio comprised 51 floating-rate first mortgage loans totaling $3.5 billion in commitments, with a weighted average risk rating of 3.0 and an increased allowance for credit losses of $74.1 million Loan Portfolio Statistics (as of March 31, 2024) | Metric | Value | | :--- | :--- | | Number of loans | 51 | | Total loan commitments | $3.54 billion | | Unpaid principal balance | $3.37 billion | | Floating rate loans | 100.0% | | Weighted average LTV | 67.4% | | Weighted average risk rating | 3.0 | - The allowance for credit losses increased to **$74.1 million**, or **210 bps** of total loan commitments, reflecting ongoing macroeconomic concerns[266](index=266&type=chunk)[268](index=268&type=chunk) - The company holds five Real Estate Owned (REO) properties with an aggregate carrying value of **$192.4 million**, consisting of four office properties and one multifamily property[252](index=252&type=chunk)[260](index=260&type=chunk) [Investment Portfolio Financing](index=60&type=section&id=Investment%20Portfolio%20Financing) The company's $2.7 billion portfolio is primarily financed by collateralized loan obligations and secured credit agreements, with non-mark-to-market financing accounting for 77.1% of total borrowings, ensuring compliance with all financial covenants Financing Breakdown (in billions) | Financing Type | Outstanding Principal Balance (Mar 31, 2024) | | :--- | :--- | | Collateralized loan obligations | $1.9 | | Secured credit agreements | $0.6 | | Asset-specific financing | $0.1 | | Other | $0.1 | | **Total** | **$2.7** | - Non-mark-to-market financing comprised **77.1%** of total loan portfolio borrowings, an increase from **73.5%** at year-end 2023, enhancing financial stability[273](index=273&type=chunk)[274](index=274&type=chunk) - The company was in compliance with all financial covenants as of March 31, 2024. A temporary waiver for the minimum interest coverage ratio expired, and the threshold reverted to **1.40 to 1.0** for Q1 2024[305](index=305&type=chunk)[306](index=306&type=chunk) [Results of Operations](index=70&type=section&id=Results%20of%20Operations) Net interest income increased quarter-over-quarter by $5.5 million and year-over-year by $5.1 million, driven by secured financing repayments and REO operations, while credit loss expense significantly decreased in both periods - **QoQ (vs. Q4 2023):** Net interest income increased by **$5.5 million**, primarily due to repayments on secured financing arrangements. Credit loss expense decreased by **$12.9 million**[320](index=320&type=chunk)[322](index=322&type=chunk)[326](index=326&type=chunk) - **YoY (vs. Q1 2023):** Net interest income increased by **$5.1 million**. Other revenue increased by **$8.6 million**, mainly from REO operations. Credit loss expense decreased by **$3.4 million**[330](index=330&type=chunk)[331](index=331&type=chunk)[332](index=332&type=chunk)[334](index=334&type=chunk) [Liquidity and Capital Resources](index=74&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2024, the company maintained $370.7 million in near-term liquidity, including $203.1 million in cash, with its debt-to-equity ratio improving to 2.20x, and a $25.0 million share repurchase program approved post-quarter-end Sources of Liquidity (in thousands) | Source | March 31, 2024 | | :--- | :--- | | Cash and cash equivalents | $203,077 | | Secured credit agreements (undrawn) | $111,872 | | CLO proceeds held at trustee | $51,000 | | Other | $4,765 | | **Total** | **$370,714** | - The Debt-to-Equity ratio decreased to **2.20x** as of March 31, 2024, compared to **2.53x** as of December 31, 2023[340](index=340&type=chunk) - On April 25, 2024, the Board of Directors approved a share repurchase program authorizing up to **$25.0 million** of the company's common stock[227](index=227&type=chunk)[343](index=343&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=84&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages interest rate risk by matching floating-rate assets and liabilities, with a 75 basis point rate change impacting net interest income by approximately $5.6 million annually, while credit and liquidity risks are mitigated through active management and non-mark-to-market financing - The company's business model aims to minimize interest rate risk by matching the duration and indices of its assets and liabilities. As of March 31, 2024, **100%** of loan investments were floating rate[380](index=380&type=chunk) Interest Rate Sensitivity Analysis (Annual Impact, in thousands) | Basis Point Change | Impact on Net Interest Income | | :--- | :--- | | +75 bps | $5,555 | | +50 bps | $3,704 | | +25 bps | $1,852 | | -25 bps | $(1,852) | | -50 bps | $(3,704) | | -75 bps | $(5,555) | - Liquidity risk is a principal concern, particularly related to margin calls on secured credit agreements. This risk is mitigated as these agreements are subject only to credit-specific marks, not market-wide spread movements[391](index=391&type=chunk) [Item 4. Controls and Procedures](index=87&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of March 31, 2024[402](index=402&type=chunk) - No material changes to the internal control over financial reporting occurred during the quarter ended March 31, 2024[403](index=403&type=chunk) Part II. Other Information [Item 1. Legal Proceedings](index=88&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no involvement in any material legal proceedings as of March 31, 2024 - As of March 31, 2024, the company was not involved in any material legal proceedings[406](index=406&type=chunk) [Item 1A. Risk Factors](index=88&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2023, were reported - No material changes to the risk factors disclosed in the 2023 Form 10-K were reported[407](index=407&type=chunk)

Financial Data and Key Metrics Changes - GAAP net income attributable to common shareholders was $2.6 million for Q4 2023, compared to a loss of $64.6 million in Q3 2023 [9] - Net interest margin for the loan portfolio increased to $21.3 million from $19.5 million in the prior quarter, an increase of $1.8 million or $0.02 per common share [9] - CECL reserve decreased by $166.8 million or 70.5% to $69.8 million from $236.6 million as of September 30, 2023 [10] - Distributable earnings before realized credit losses were $24.4 million or $0.31 per common share, compared to $13.7 million or $0.18 per common share in the prior quarter [100] - Book value per share declined to $11.86, down $0.18 from $12.04 in Q3 [101] Business Line Data and Key Metrics Changes - Multifamily loans now represent 49.2% of the loan portfolio, while office loans have declined 68% over the past eight quarters to 19.9% [77] - The company resolved $466 million of identified credit challenge loans in Q4 and $951 million during the entire year [101] - The REO portfolio at year-end comprised five properties, with a total carrying value of $199.8 million and a blended current annualized yield of 6% [78] Market Data and Key Metrics Changes - The S&P 500 has rallied approximately 5% since the start of the year and 40% since October 2022, indicating a broad market recovery [3] - Credit spreads in the CMBS and Series CLO markets have tightened, with strong demand for multifamily and industrial property types [69] Company Strategy and Development Direction - The company aims to maintain elevated liquidity levels, resolve credit-challenged loans, and position itself to take advantage of investment opportunities in 2024 [70] - The strategy includes reducing exposure to the office market by approximately 70% since early 2022 [71] - The company is focused on the multifamily sector, which it believes has positive long-term tailwinds despite near-term pressures [72] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current environment due to the substantial progress made in reshaping the loan portfolio and maintaining strong liquidity [73] - The pace of Fed rate cuts is seen as a key driver of credit performance, particularly for floating rate lenders [69] - Management acknowledged ongoing uncertainty in the real estate market but believes the company is well-positioned for 2024 and beyond [73] Other Important Information - The company has $480 million in available liquidity, a conservative leverage ratio of 2.5 to 1, and no material financing maturities until 2026 [98] - The company has utilized $71.2 million of its CLO reinvestment capacity and intends to fully utilize the remaining $176 million before mid-April [15] Q&A Session Summary Question: What is the earnings power now that the company has resolved non-performing loans? - Management indicated that the average distributable earnings before credit losses in 2023 was approximately $0.23 per quarter, providing a solid foundation for future growth [108] Question: How does the company view share buybacks given the stock's valuation? - Management acknowledged that share repurchase is a potential tool but emphasized the importance of evaluating new investments and capital deployment strategies [138] Question: What are the liquidity needs for the REO portfolio? - Management stated that properties generating less current cash may require more capital for investment and have a longer hold period to realize returns [119] Question: How does the company plan to manage its dividend policy moving forward? - Management is considering dividend policy in light of long-term earnings power and the realized losses in 2023, indicating a focus on preserving capital [126][147]

Maryland 001-38156 36-4796967 (State or Other Jurisdiction of Incorporation) (Commission File Number) (IRS Employer Identification No.) TPG RE Finance Trust, Inc. (Exact Name of Registrant as Specified in its Charter) ___________________________________________________________________ Securities registered pursuant to Section 12(b) of the Act: 99.1 Earnings Release, dated February 20, 2024 (d) Exhibits. TPG RE Finance Trust, Inc. February 20, 2024 • Recognized GAAP net income attributable to common stockhol ...

Fourth Quarter and Full Year : Supplemental Information February 20, 2024 Forward-Looking Statements and Other Disclosur This progentation contains from and looking stations within the meaning of Serient 72L of the Securities de of 1932 as annonded and Serieng 2F of the Seruition Ferhange (4r with respect to, anong other things, our operations and financial performance. You can itentfy these forward looking statements by the use of words such as "outlook," "beli roredict, ""intend," "will," "plon," "estimat ...