TPG RE Finance Trust(TRTX) - 2019 Q1 - Quarterly Report

Financial Performance - Total assets increased to $5.12 billion as of March 31, 2019, compared to $4.53 billion at December 31, 2018, reflecting a growth of approximately 13.1%[14] - Net interest income for Q1 2019 was $37.23 million, up from $33.37 million in Q1 2018, representing an increase of about 11.1%[17] - Net income attributable to TPG RE Finance Trust, Inc. for Q1 2019 was $28.41 million, compared to $25.11 million in Q1 2018, marking a growth of approximately 9.2%[17] - Basic earnings per common share remained stable at $0.42 for both Q1 2019 and Q1 2018, with the weighted average number of common shares outstanding increasing from 60.39 million to 68.29 million[17] - The company reported a comprehensive net income of $28.52 million for Q1 2019, compared to $24.90 million in Q1 2018, an increase of about 14.3%[17] - Net income for Q1 2019 was $28,412,000, an increase from $25,114,000 in Q1 2018, representing an 9.1% year-over-year growth[22] - Cash provided by operating activities for Q1 2019 was $26,033,000, compared to $23,454,000 in Q1 2018, indicating a 10.9% increase[22] - Dividends paid on common stock in Q1 2019 totaled $28,546,000, compared to $22,620,000 in Q1 2018, representing a 26.3% increase[22] - The company declared dividends per share of $0.43 for common stock in Q1 2019, compared to $0.42 in Q1 2018[20] Assets and Liabilities - Total liabilities rose to $3.68 billion as of March 31, 2019, compared to $3.20 billion at December 31, 2018, indicating an increase of about 14.5%[14] - The company’s investment in available-for-sale securities increased to $308.29 million as of March 31, 2019, compared to $74.38 million at December 31, 2018, a significant increase of approximately 314%[14] - The carrying value of loans held for investment was $4,712.1 million, an increase from $4,293.8 million as of December 31, 2018, reflecting a growth of approximately 9.8%[61] - As of March 31, 2019, the total outstanding balance of secured revolving repurchase agreements, senior secured, and secured credit agreements was $3,586.57 million[81] - The total principal commitment for secured revolving repurchase agreements was $2,894.07 million, with an outstanding balance of $1,615.07 million[81] Investment Activities - The company originated loans held for investment totaling $628,460,000 in Q1 2019, compared to $512,522,000 in Q1 2018, reflecting a 22.6% increase[22] - The Company originated 11 loans with a total commitment of approximately $713.6 million and an initial unpaid principal balance of $633.1 million during the three months ended March 31, 2019[61] - The Company purchased 10 CRE CLO investments for an aggregate purchase price of $234.2 million during the three months ended March 31, 2019[66] - The loan portfolio as of March 31, 2019, included total loan commitments of $5.373 billion, with office properties representing 35.9% of the total[146] - The Bridge loan category comprised 49.5% of total loan commitments, with a UPB of $2,468.3 million[148] Financing and Debt - The Company finances its investments using secured revolving repurchase agreements and other financing arrangements, with 100% of senior mortgage loans transferred on a non-recourse basis to third-party lenders[41][42] - The average interest rate for secured revolving repurchase agreements ranged from 1.7% to 2.7% across different agreements[81] - The Company had outstanding borrowings of $267.7 million under a term loan facility with a maximum capacity of $750 million, bearing interest at LIBOR plus 1.85%[103] - The total principal payments due for secured revolving repurchase agreements in 2019 were $1,281.3 million[105] Risk Management - The company is exposed to various risks including credit risk, prepayment risk, and market volatility, which are monitored through asset management processes[271][273][280] - The Company evaluates loans for impairment on a quarterly basis, with a risk rating system from 1 (Outperform) to 5 (Risk of Impairment/Default)[37] - The Company’s loans are typically collateralized by real estate, and it regularly evaluates credit deterioration associated with the underlying collateral[39] Taxation - The Company operates as a real estate investment trust (REIT) and is not subject to U.S. federal income taxes on REIT taxable income if it distributes all taxable income to stockholders[25] - The effective tax rate for the Company was 0.8% for the three months ended March 31, 2019[114] - The Company had no deferred tax assets or liabilities as of March 31, 2019[115] Shareholder Activities - The company completed a common stock offering of 6.0 million shares at $19.80 per share, generating net proceeds of $118.8 million[131] - The company repurchased 2,324 shares of common stock at a weighted average price of $18.27 per share during the three months ended March 31, 2019[133] - A cash dividend of $0.43 per share, totaling $31.6 million, was paid to stockholders on April 25, 2019[152]