TPG RE Finance Trust Q3 distributable earnings fall on realized loan loss

Overview

• U.S. commercial real estate lender's Q3 net income was $5.8 mln, EPS $0.08

• Company repurchased 1.2 mln shares and approved new $50 mln buyback program

• Book value per share fell to $10.85 from $10.95 in prior qtr

Outlook

• Company did not provide specific financial guidance for future quarters or the full year in its press release

Result Drivers

• LOAN ORIGINATIONS - Co originated eight first mortgage loans and acquired one, totaling $773 mln in commitments

• SHARE REPURCHASE - Repurchased 1.2 mln shares, increasing book value per share by $0.04

• CREDIT LOSS ALLOWANCE - Allowance for credit losses decreased by $4.5 mln to $76.1 mln

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the specialized reits peer group is "buy"

• Wall Street's median 12-month price target for TPG RE Finance Trust Inc is $9.50, about 51.3% above its October 23 closing price of $6.28

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)