TRTX - TPG RE Finance Trust: The 11% Dividend Yield Comes With Multifamily Backing

2024-05-09 14:36:23 ET

Summary

• TPG RE Finance Trust's common shares are trading at a 25% discount to book value after a rise from 52-week lows.
• The mREIT has launched a $25 million share repurchase program and is paying out an 11% dividend yield that is fully covered by distributable earnings.
• TRTX is building a more diversified loan portfolio, which is expected to improve its risk profile.

TPG RE Finance Trust's ( TRTX ) common shares have been rallying heavily since the real estate lender published fiscal 2024 first-quarter earnings, which placed its book value per share at $11.81 . This is now set against common shares currently at $8.80 per share, a 25% discount to book value following the rise from 52-week lows, with its management also launching a $25 million share repurchase program to demonstrate their confidence in the value of the commons. The mREIT last declared a quarterly cash dividend of $0.24 per share , kept unchanged sequentially, and $0.96 per share annualized for an 11% dividend yield. Book value per share dipped by $0.05 sequentially, mainly due to a credit loss expense of $0.06 per share ....

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