An Outline of TRTX Managementĭoug Bouquard was announced as the new CEO in January 2022. And we'll close with a detail about a perhaps surprising stakeholder in the company that those familiar with the sector might recognize. So in this article we'll share some background on management before turning to our three key takeaways from this earnings report. A key question for all commercial mREITs moving forward is how well management can protect the balance sheet while unwinding troubled loans. Yet as we turn to their specific results we'll see that there are still potential challenges on the horizon. It seems to me that with relatively stable book value and reserve amounts that management has been accurate so far in their assessments. The smaller increase at TRTX may suggest that the portfolio has not deteriorated much over the quarter and reflects the proactive approach.
ACRE increased their reserve by $21 million to a total of $92 million (29.6%) bringing their CECL reserve to about 4% of their portfolio as well. It's a nominal increase by comparison to another peer I've looked at this quarter, Ares Commercial Real Estate. We can see in their 10-q that this CECL reserve totals $222.4 million or ~4% of their total commitments.ĭuring the quarter the company increased this reserve by $7.8 million (3.6%). Management has been proactive in anticipating a tougher credit environment for the past year by building up a cash position and a CECL reserve.
That places the current P/B valuation at 0.39x. If that trend holds that implies an impressive 17.1% annual dividend yield.īook value per share was reported at $14.31 which is down from $14.48 (-1.2%) last quarter. Whatever the fears may be at the time of writing the stock price sits at $5.61 and pays out $0.96 in dividends annually. That's a concerning number given the quarterly dividend on the common was $0.24, and this may be part of what's driving the recent sell-off. At the top level net income per share was $0.05 ($3.8 million) with distributable earnings coming in at $0.17 per share. TPG RE Finance Trust ( NYSE: TRTX) reported earnings on May 2nd, 2023 that did not impress the markets. Will management be able to pull the right levers without toppling over? It's all about maintaining some sort of balance moving forward.
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