TPG RE Finance Trust, Inc. Provides Update
March 23 2020 - 9:28AM
Business Wire
On March 23, 2020, TPG RE Finance Trust, Inc. (NYSE: TRTX)
(“TRTX” or the “Company”) announced that the Company’s previously
authorized cash dividend for the first quarter of 2020 of $0.43 per
share of common stock will now be payable on July 14, 2020 to
stockholders of record as of June 15, 2020.
Subsequent to the announcement of the dividend on March 18,
2020, the intensifying COVID-19 crisis caused real estate
securities markets to experience significant volatility and
widening credit spreads, which have had a negative impact on the
Company’s highly rated, primarily floating rate CRE debt securities
portfolio. As of March 22, 2020, the Company held a CRE debt
securities portfolio with an aggregate face amount of approximately
$960 million, which portfolio is pledged as collateral under daily
mark-to-market secured revolving repurchase facilities in the
amount of approximately $760 million. Fluctuations in the value of
the Company’s CRE debt securities portfolio, including as a result
of changes in credit spreads, have resulted in the Company being
required to post cash collateral with its lenders under such
facilities. In the current market environment, such fluctuations
and requirements to post cash collateral have been, and may
continue to be, material. If the requirements to post additional
cash collateral continue to be material, there is no certainty that
the Company will be in a position to continue to fund such
payments.
In addition, as of March 22, 2020, the Company held a loan
portfolio with an aggregate unpaid principal balance of
approximately $5.1 billion, and approximately 48% of the Company’s
indebtedness secured by this loan portfolio consisted of term
financing, including collateralized loan obligations. Substantially
all of the remainder of the loan portfolio is pledged as collateral
under secured revolving repurchase facilities. The occurrence of
certain specified credit events with respect to the properties
underlying the loan portfolio may result in the Company being
required to post cash collateral with its lenders under such
facilities.
As a result of this recent extraordinary volatility in real
estate securities markets, recent posting of additional cash
collateral, and the Company’s potential near-term cash needs, the
Company has re-evaluated its liquidity position, and the Board of
Directors has determined that it would be prudent and in the best
interests of the Company to delay the payment of the previously
authorized first quarter dividend.
The Company is engaging in active discussions with its lenders
and other potential sources of financing, but it cannot predict
whether it will be able to agree to terms with such parties on an
expedited basis. The Company is also monitoring the potential
availability of government programs.
ABOUT TRTX
TPG RE Finance Trust, Inc. is a commercial real estate finance
company that focuses primarily on originating, acquiring, and
managing first mortgage loans and other commercial real
estate‐related debt instruments secured by institutional properties
located in primary and select secondary markets in the United
States. The Company is externally managed by TPG RE Finance Trust
Management, L.P., a part of TPG Real Estate, which is the real
estate investment platform of TPG. TPG is a global alternative
asset firm with a 25-year history and more than $119 billion of
assets under management. For more information regarding TRTX, visit
www.tpgrefinance.com.
FORWARD-LOOKING STATEMENTS
The information contained in this press 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.
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, among others,
relating to the Company’s ability to satisfy requirements to post
cash collateral and negotiate with its lenders and potential
alternative sources of financing are forward-looking statements,
and the Company cannot assure you that TRTX will achieve such
results. 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, in particular due to the
uncertainties created by the COVID-19 pandemic and resulting market
volatility. 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 this press release as a result of new
information, future events or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20200323005374/en/
INVESTOR RELATIONS CONTACT (212) 405-8500
IR@tpgrefinance.com
MEDIA CONTACT TPG RE Finance Trust, Inc. Courtney Power
(415) 743-1550 media@tpg.com
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