Investors clearly had plenty of trust in TPG RE Finance Trust (TRTX -2.14%) this week; after all, the company’s shares flew nearly 8% higher over the period, according to data compiled by S&P Global Market Intelligence. The reason why wasn’t hard to figure out — the mortgage real estate investment trust (mREIT) published an investor-pleasing set of quarterly and annual operating results after market hours on Tuesday.
This, plus a supplemental breakdown, revealed that TPG booked over $100 million in interest income in the fourth quarter. This filtered down into a net income figure of $32.6 million based on generally accepted accounting principles (GAAP), equating to $0.42 per share. That was more than double the $0.18 collectively expected by analysts tracking the stock, so it was little wonder that the market reacted so positively.
Late 2022 certainly wasn’t an easy period for mREITs like TPG, as the Federal Reserve’s series of inflation-fighting interest rate rises played havoc with their business.
In its earnings release, TPG quoted CEO Doug Bouquard as attributing its good showing to “a strong liquidity position and positive asset management resolutions.”
Bouquard added that “we have confidence that the strength of the entire TPG platform will enable us to opportunistically lend into a more attractive market in 2023.”
The company did not proffer guidance for either its current (first) quarter or the entirety of 2023. It did say that it has either closed, or is currently closing, two first mortgage loans. Combined, these have a total commitment amount of nearly $124 million; they also have initial funding of over $111 million.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.