TPG RE Finance Trust Reports $59.7M Net Income for 2024, Declares $78.7M in Dividends

TPG RE Finance Trust, Inc. (TRTX) reported net income attributable to common stockholders of $59.7 million, or $0.75 per diluted share, for the year ended December 31, 2024, compared to a net loss of $130.9 million in 2023. Distributable earnings, a non-GAAP measure, were $76.5 million, or $0.96 per diluted share, in 2024. The company declared dividends of $78.7 million, or $0.96 per common share, representing an 11.3% annualized dividend yield based on the December 31, 2024 closing price. Net interest income increased significantly year-over-year, rising to $108.3 million from $88.7 million, primarily due to loan repayments and a decrease in non-accrual loans.

During the fourth quarter of 2024, TRTX originated two first mortgage loans totaling $242.0 million in commitments and received $110.2 million in loan repayments. The company also acquired three multifamily properties with an aggregate carrying value of $88.8 million. For the full year 2024, eight first mortgage loans were originated, totaling $562.3 million in commitments, and loan repayments reached $673.4 million. The company's liquidity position remained strong, with $320.8 million in near-term liquidity as of December 31, 2024, including $175.2 million available for investment. The company's book value per common share decreased to $11.27 from $11.86 in the prior year, primarily due to warrant exercises and increased credit loss expense.

The company's investment portfolio financing consisted of $1.7 billion in collateralized loan obligations (CLOs), $585.0 million in secured credit agreements, $186.5 million in asset-specific financing, and $86.6 million in a secured revolving credit facility. Non-mark-to-market financing comprised 77.0% of total loan portfolio borrowings as of December 31, 2024. The company's loan portfolio consisted of 45 loans with a total commitment of $3.4 billion and an unpaid principal balance of $3.3 billion. As of December 31, 2024, the allowance for credit losses was $64.0 million, or 187 basis points of total loan commitments, a decrease of $5.8 million from the prior year.

The company's operations are subject to various risks, including interest rate fluctuations, prepayment risk, credit risk, and competition. The 10-K filing details these risks extensively, along with risks related to the company's relationship with its manager, TPG RE Finance Trust Management, L.P., its REIT status, and its common stock. The company's outlook is dependent on various factors, including macroeconomic conditions and the availability of attractive investment opportunities. The company's ability to maintain its REIT qualification and avoid registration under the Investment Company Act is also a key factor influencing its future performance.

The company's 10-K filing also includes information on its corporate governance, executive compensation, and security ownership, all of which are incorporated by reference from the company's definitive proxy statement. The filing concludes with exhibits and financial statement schedules, providing further detail on the company's financial position and operations.