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].

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 ...