NYSE:TRTX

Stock Analysis Report

Executive Summary

TPG RE Finance Trust, Inc., a commercial real estate finance company, originates, acquires, and manages commercial mortgage loans and other commercial real estate-related debt instruments in North America.


Snowflake Analysis

Proven track record and fair value.


Similar Companies

Share Price & News

How has TPG RE Finance Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TRTX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.6%

TRTX

-5.7%

US Mortgage REITs

-7.6%

US Market


1 Year Return

0.4%

TRTX

2.1%

US Mortgage REITs

10.2%

US Market

Return vs Industry: TRTX underperformed the US Mortgage REITs industry which returned 2.7% over the past year.

Return vs Market: TRTX underperformed the US Market which returned 10.5% over the past year.


Shareholder returns

TRTXIndustryMarket
7 Day-3.6%-5.7%-7.6%
30 Day-2.6%-1.2%-4.5%
90 Day-0.8%2.9%-0.6%
1 Year9.4%0.4%13.2%2.1%12.5%10.2%
3 Yearn/a37.8%-0.4%37.1%28.3%
5 Yearn/a65.3%-5.1%60.8%43.2%

Price Volatility Vs. Market

How volatile is TPG RE Finance Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is TPG RE Finance Trust undervalued compared to its fair value and its price relative to the market?

20.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TRTX ($20.17) is trading below our estimate of fair value ($25.18)

Significantly Below Fair Value: TRTX is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: TRTX is good value based on its PE Ratio (11.6x) compared to the Mortgage REITs industry average (12.9x).

PE vs Market: TRTX is good value based on its PE Ratio (11.6x) compared to the US market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: TRTX is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: TRTX is overvalued based on its PB Ratio (1x) compared to the US Mortgage REITs industry average (1x).


Next Steps

Future Growth

How is TPG RE Finance Trust forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

3.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRTX's forecast earnings growth (3.7% per year) is above the savings rate (1.7%).

Earnings vs Market: TRTX's earnings (3.7% per year) are forecast to grow slower than the US market (13.2% per year).

High Growth Earnings: TRTX's earnings are forecast to grow, but not significantly.

Revenue vs Market: TRTX's revenue (3.9% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: TRTX's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TRTX's Return on Equity is forecast to be low in 3 years time (8.8%).


Next Steps

Past Performance

How has TPG RE Finance Trust performed over the past 5 years?

17.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TRTX has high quality earnings.

Growing Profit Margin: TRTX's current net profit margins (75.8%) are lower than last year (75.9%).


Past Earnings Growth Analysis

Earnings Trend: TRTX's earnings have grown by 17.4% per year over the past 5 years.

Accelerating Growth: TRTX's earnings growth over the past year (18.1%) exceeds its 5-year average (17.4% per year).

Earnings vs Industry: TRTX earnings growth over the past year (18.1%) exceeded the Mortgage REITs industry 11.3%.


Return on Equity

High ROE: TRTX's Return on Equity (8.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is TPG RE Finance Trust's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: TRTX has a low level of unsold assets or inventory.

Debt Coverage by Assets: TRTX's debt is covered by short term assets (assets are 1.2x debt).


Financial Institutions Analysis

Asset Level: TRTX's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if TRTX has a sufficient allowance for bad loans.

Low Risk Liabilities: TRTX reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if TRTX has an acceptable proportion of non-loan assets held.

Low Risk Deposits: TRTX has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if TRTX has an appropriate level of bad loans.


Next Steps

Dividend

What is TPG RE Finance Trust's current dividend yield, its reliability and sustainability?

8.56%

Current Dividend Yield


Dividend Yield vs Market

company8.6%marketbottom25%1.5%markettop25%4.0%industryaverage9.8%forecastin3Years8.6%

Current dividend yield vs market & industry

Notable Dividend: TRTX's dividend (8.53%) is higher than the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: TRTX's dividend (8.53%) is in the top 25% of dividend payers in the US market (3.9%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, TRTX has been paying a dividend for less than 10 years.

Growing Dividend: TRTX's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (99.1%), TRTX's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TRTX's dividends in 3 years are not forecast to be well covered by earnings (94.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.0yrs

Average management tenure


CEO

Greta Guggenheim (60yo)

4.1yrs

Tenure

US$2,900,000

Compensation

Ms. Greta Guggenheim is the Co-Founder of Ladder Capital Corp and served as its Chief Investment Officer from June 2012 to August 24, 2015. Ms. Guggenheim is a Partner of TPG and TPG Real Estate. Ms. Gugge ...


Leadership Team

NamePositionTenureCompensationOwnership
Greta Guggenheim
CEO, President & Director4.1yrsUS$2.90m0.65% $10.1m
Robert Foley
Chief Financial & Risk Officer4.5yrsUS$601.30k0.098% $1.5m
Deborah Ginsberg
VP, General Counsel & Corporate Secretary2.1yrsUS$140.00k0.046% $703.3k
Peter Smith
Vice President3.3yrsUS$840.00k0.15% $2.2m
Matthew Coleman
Vice President4yrsno data0.014% $216.5k
Evelyn Infurna
Investor Relations0yrsno datano data

4.0yrs

Average Tenure

53yo

Average Age

Experienced Management: TRTX's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Greta Guggenheim
CEO, President & Director4.1yrsUS$2.90m0.65% $10.1m
Gregory White
Independent Director2.6yrsUS$110.30k0.0067% $102.5k
Kelvin Davis
Director5.2yrsno data0.030% $462.4k
Wendy Silverstein
Independent Director2.6yrsUS$107.80k0.0067% $102.5k
Avi Banyasz
Chairman of the Board5.2yrsno data0.030% $462.4k
Michael Gillmore
Independent Director2.6yrsUS$112.80k0.0067% $102.5k
Bradley Smith
Independent Director2.6yrsUS$120.30k0.0021% $32.2k

2.6yrs

Average Tenure

58yo

Average Age

Experienced Board: TRTX's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 15.4%.


Top Shareholders

Company Information

TPG RE Finance Trust, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TPG RE Finance Trust, Inc.
  • Ticker: TRTX
  • Exchange: NYSE
  • Founded: 2014
  • Industry: Mortgage REITs
  • Sector: Diversified Financials
  • Market Cap: US$1.535b
  • Shares outstanding: 76.41m
  • Website: https://www.tpgrefinance.com

Location

  • TPG RE Finance Trust, Inc.
  • 888 Seventh Avenue
  • 35th Floor
  • New York
  • New York
  • 10106
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TRTXNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 2017

Biography

TPG RE Finance Trust, Inc., a commercial real estate finance company, originates, acquires, and manages commercial mortgage loans and other commercial real estate-related debt instruments in North America. It invests in commercial mortgage loans; subordinate mortgage interests, mezzanine loans, secured real estate securities, note financing, preferred equity, and miscellaneous debt instruments; and commercial real estate collateralized loan obligations and commercial mortgage-backed securities secured by properties primarily in the office, mixed use, multifamily, industrial, retail, and hospitality real estate sectors. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. TPG RE Finance Trust, Inc. was founded in 2014 and is based in New York, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 02:47
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.