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Section 1: 10-Q (10-Q)

trtx-10q_20180930.htm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended September 30, 2018.

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from       to       

Commission file number 001-38156

 

TPG RE Finance Trust, Inc.

(Exact name of registrant as specified in its charter)

 

 

Maryland

 

36-4796967

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

888 Seventh Avenue, 35th Floor

New York, New York 10106

(Address of principal executive offices)(Zip Code)

(212) 601-4700

(Registrant’s telephone number, including area code)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  YES   NO 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  YES   NO 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large Accelerated Filer

 

Accelerated Filer

Non-accelerated Filer

 

Smaller Reporting Company

Emerging Growth Company

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) YES  NO 

As of November 2, 2018, there were 66,043,964 shares of the registrant’s common stock, $0.001 par value per share, and 1,143,313 shares of the registrant’s Class A common stock, $0.001 par value per share, outstanding.

 

 


CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which reflect our current views with respect to, among other things, our operations and financial performance. You can identify these forward-looking statements by the use of words such as “outlook,” “believe,” “expect,” “potential,” “continue,” “may,” “should,” “seek,” “approximately,” “predict,” “intend,” “will,” “plan,” “estimate,” “anticipate,” the negative version of these words, other comparable words or other statements that do not relate strictly to historical or factual matters. By their nature, forward-looking statements speak only as of the date they are made, are not statements of historical fact or guarantees of future performance and are subject to risks, uncertainties, assumptions or changes in circumstances that are difficult to predict or quantify. Our expectations, beliefs and projections are expressed in good faith, and we believe there is a reasonable basis for them. However, there can be no assurance that management’s expectations, beliefs and projections will occur or be achieved, and actual results may vary materially from what is expressed in or indicated by the forward-looking statements.

There are a number of risks, uncertainties and other important factors that could cause our actual results to differ materially from the forward-looking statements contained in this Form 10-Q. Such risks, uncertainties and other important factors include, among others, the risks, uncertainties and factors set forth under the heading Item 1A – “Risk Factors” in our Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 26, 2018, as such risk factors may be updated from time to time in our periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. Such risks, uncertainties and other factors include, but are not limited to, the following:

 

the general political, economic and competitive conditions in the markets in which we invest;

 

the level and volatility of prevailing interest rates and credit spreads;

 

adverse changes in the real estate and real estate capital markets;

 

general volatility of the securities markets in which we participate;

 

changes in our business, investment strategies or target assets;

 

difficulty in obtaining financing or raising capital;

 

reductions in the yield on our investments and increases in the cost of our financing;

 

adverse legislative or regulatory developments, including with respect to tax laws;

 

acts of God such as hurricanes, floods, earthquakes, wildfires, mudslides, volcanic eruptions, and other natural disasters, acts of war and/or terrorism and other events that may cause unanticipated and uninsured performance declines and/or losses to us or the owners and operators of the real estate securing our investments;

 

changes in the availability of attractive loan and other investment opportunities, whether they are due to competition, regulation or otherwise;

 

deterioration in the performance of properties securing our investments that may cause deterioration in the performance of our investments and potentially principal losses to us;

 

defaults by borrowers in paying debt service on outstanding indebtedness;

 

the adequacy of collateral securing our investments and declines in the fair value of our investments;

 

adverse developments in the availability of desirable investment opportunities;  

 

difficulty in successfully managing our growth, including integrating new assets into our existing systems;

 

the cost of operating our platform, including, but not limited to, the cost of operating a real estate investment platform and the cost of operating as a publicly traded company;

 

the availability of qualified personnel and our relationship with TPG RE Finance Trust Management, L.P. (our “Manager”);

 

conflicts with TPG Global, LLC and its affiliates (“TPG”), including our Manager, the personnel of TPG providing services to us, including our officers, and certain funds managed by TPG;

 

our qualification as a real estate investment trust (“REIT”) for U.S. federal income tax purposes and our exclusion from registration under the Investment Company Act of 1940, as amended (the “Investment Company Act”); and

 

authoritative U.S. generally accepted accounting principles (or “GAAP”) or policy changes from standard-setting bodies such as the Financial Accounting Standards Board (the “FASB”), the SEC, the Internal Revenue Service (the “IRS”), the New York Stock Exchange (the “NYSE”) and other authorities that we are subject to, as well as their counterparts in any foreign jurisdictions where we might do business.


There may be other risks, uncertainties or factors that may cause our actual results to differ materially from the forward-looking statements, including risks, uncertainties, and factors disclosed under the sections entitled “Risk Factors” in our Form 10-K filed with the SEC on February 26, 2018 and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Form 10-Q. You should evaluate all forward-looking statements made in this Form 10-Q in the context of these risks, uncertainties and other factors.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. We caution you that the risks, uncertainties and other factors referenced above may not contain all of the risks, uncertainties and other factors that are important to you. In addition, we cannot assure you that we will realize the results, benefits or developments that we expect or anticipate or, even if substantially realized, that they will result in the consequences or affect us or our business in the way expected. All forward-looking statements in this Form 10-Q apply only as of the date made and are expressly qualified in their entirety by the cautionary statements included in this Form 10-Q and in other filings we make with the SEC. We undertake no obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances, except as required by law.

Except where the context requires otherwise, the terms “Company,” “we,” “us,” and “our” refer to TPG RE Finance Trust, Inc., a Maryland corporation, and its subsidiaries; the term “Manager” refers to our external manager, TPG RE Finance Trust Management, L.P., a Delaware limited partnership; and the term “TPG” refers to TPG Global, LLC, a Delaware limited liability company, and its affiliates.


TABLE OF CONTENTS

 

Part I. Financial Information

1

 

 

 

Item 1.

Financial Statements

1

 

 

 

 

Consolidated Balance Sheets as of September 30, 2018 (unaudited) and December 31, 2017

1

 

 

 

 

Consolidated Statements of Income and Comprehensive Income (unaudited) for the Three and Nine Months ended September 30, 2018 and September 30, 2017

2

 

 

 

 

Consolidated Statements of Changes in Equity (unaudited) for the Nine Months ended September 30, 2018 and September 30, 2017

3

 

 

 

 

Consolidated Statements of Cash Flows (unaudited) for the Nine Months ended September 30, 2018 and September 30, 2017

4

 

 

 

 

Notes to the Consolidated Financial Statements (unaudited)

5

 

 

 

Item 2. 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

29

 

 

 

Item 3. 

Quantitative and Qualitative Disclosures About Market Risk

52

 

 

 

Item 4. 

Controls and Procedures

54

 

 

 

Part II. Other Information

55

 

 

Item 1. 

Legal Proceedings

55

 

 

 

Item 1A. 

Risk Factors

55

 

 

 

Item 2. 

Unregistered Sales of Equity Securities and Use of Proceeds

55

 

 

 

Item 3. 

Defaults Upon Senior Securities

55

 

 

 

Item 4. 

Mine Safety Disclosures

55

 

 

 

Item 5. 

Other Information

55

 

 

 

Item 6. 

Exhibits

56

 

 

 

Signatures

57

 

 


 

Part I. Financial Information

Item 1. Financial Statements

TPG RE Finance Trust, Inc.

Consolidated Balance Sheets (Unaudited)

(in thousands, except share and per share data)

 

 

 

September 30, 2018

 

 

December 31, 2017

 

ASSETS(1)

 

 

 

 

 

 

 

 

Cash and Cash Equivalents

 

$

46,203

 

 

$

75,037

 

Restricted Cash

 

 

250

 

 

 

700

 

Accounts Receivable

 

 

38

 

 

 

141

 

Accounts Receivable from Servicer/Trustee

 

 

2,547

 

 

 

220

 

Accrued Interest Receivable

 

 

19,338

 

 

 

16,861

 

Loans Held for Investment (includes $3,035,098 and $2,694,106 pledged as collateral

   under repurchase agreements and senior secured agreements)

 

 

4,157,653

 

 

 

3,175,672

 

Investment in Commercial Mortgage-Backed Securities, Available-for-Sale

   (includes $37,345 and $47,762 pledged as collateral under repurchase agreements)

 

 

75,414

 

 

 

85,895

 

Other Assets, net

 

 

710

 

 

 

859

 

Total Assets

 

$

4,302,153

 

 

$

3,355,385

 

LIABILITIES AND STOCKHOLDERS’ EQUITY(1)

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Accrued Interest Payable

 

$

5,025

 

 

$

5,385

 

Accrued Expenses

 

 

8,839

 

 

 

5,067

 

Collateralized Loan Obligation (net of deferred financing costs of $5,489 and $0)

 

 

735,415

 

 

 

 

Secured Revolving Repurchase and Senior Secured Agreements (net of deferred

   financing costs of $12,924 and $8,697)

 

 

2,087,118

 

 

 

1,827,104

 

Notes Payable (net of deferred financing costs of $506 and $1,601)

 

 

100,832

 

 

 

287,886

 

Payable to Affiliates

 

 

6,904

 

 

 

5,227

 

Deferred Revenue

 

 

216

 

 

 

317

 

Dividend Payable

 

 

28,918

 

 

 

23,068

 

Total Liabilities

 

 

2,973,267

 

 

 

2,154,054

 

Commitments and Contingencies - See Note 14

 

 

 

 

 

 

 

 

Stockholders’ Equity:

 

 

 

 

 

 

 

 

Preferred Stock ($0.001 par value; 100,000,000 shares authorized;

   0 and 125 shares issued and outstanding, respectively)

 

 

 

 

 

 

Common Stock ($0.001 par value; 300,000,000 shares authorized;

   66,043,964 and 59,440,112 shares issued and outstanding, respectively)

 

 

67

 

 

 

60

 

Class A Common Stock ($0.001 par value; 2,500,000 shares authorized;

   1,143,313 and 1,178,618 shares issued and outstanding, respectively)

 

 

1

 

 

 

1

 

Additional Paid-in-Capital

 

 

1,355,037

 

 

 

1,216,112

 

Accumulated Deficit

 

 

(25,070

)

 

 

(14,808

)

Accumulated Other Comprehensive (Loss)

 

 

(1,149

)

 

 

(34

)

Total Stockholders' Equity

 

 

1,328,886

 

 

 

1,201,331

 

Total Liabilities and Stockholders' Equity

 

$

4,302,153

 

 

$

3,355,385

 

 

(1)

At December 31, 2017, there were no VIE assets or liabilities recorded in the Company’s Total Assets and Total Liabilities. The Company’s consolidated Total Assets and Total Liabilities at September 30, 2018 include VIE assets and liabilities of $954.4 million and $741.5 million, respectively. These assets can be used only to satisfy obligations of the VIE, and creditors of the VIE have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details.

See accompanying notes to the Consolidated Financial Statements

 

1


 

TPG RE Finance Trust, Inc.

Consolidated Statements of Income

and Comprehensive Income (Unaudited)

(in thousands, except share and per share data)

 

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

INTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Income

 

$

69,863

 

 

$

46,734

 

 

$

193,921

 

 

$

146,411

 

Interest Expense

 

 

(34,297

)

 

 

(19,150

)

 

 

(90,449

)

 

 

(56,585

)

Net Interest Income

 

 

35,566

 

 

 

27,584

 

 

 

103,472

 

 

 

89,826

 

OTHER REVENUE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (Loss) Income, net

 

 

(55

)

 

 

669

 

 

 

820

 

 

 

1,036

 

Total Other Revenue

 

 

(55

)

 

 

669

 

 

 

820

 

 

 

1,036

 

OTHER EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Professional Fees

 

 

905

 

 

 

1,256

 

 

 

2,659

 

 

 

2,448

 

General and Administrative

 

 

965

 

 

 

1,003

 

 

 

3,162

 

 

 

2,192

 

Servicing and Asset Management Fees

 

 

767

 

 

 

720

 

 

 

2,301

 

 

 

3,061

 

Management Fee

 

 

4,879

 

 

 

4,133

 

 

 

14,346

 

 

 

9,489

 

Collateral Management Fee

 

 

 

 

 

23

 

 

 

 

 

 

225

 

Incentive Management Fee

 

 

1,168

 

 

 

327

 

 

 

3,240

 

 

 

3,713

 

Total Other Expenses

 

 

8,684

 

 

 

7,462

 

 

 

25,708

 

 

 

21,128

 

Income Before Income Taxes

 

 

26,827

 

 

 

20,791

 

 

 

78,584

 

 

 

69,734

 

Income Tax Expense

 

 

(3

)

 

 

 

 

 

(208

)

 

 

(140

)

Net Income

 

$

26,824

 

 

$

20,791

 

 

$

78,376

 

 

$

69,594

 

Preferred Stock Dividends

 

 

 

 

 

(4

)

 

 

(3

)

 

 

(12

)

Net Income Attributable to TPG RE Finance Trust, Inc.

 

$

26,824

 

 

$

20,787

 

 

$

78,373

 

 

$

69,582

 

Basic Earnings per Common Share(1)

 

$

0.42

 

 

$

0.35

 

 

$

1.27

 

 

$

1.34

 

Diluted Earnings per Common Share(1)

 

$

0.42

 

 

$

0.35

 

 

$

1.27

 

 

$

1.34

 

Weighted Average Number of Common Shares Outstanding(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic:

 

 

64,295,973

 

 

 

58,685,979

 

 

 

61,635,988

 

 

 

51,969,733

 

Diluted:

 

 

64,295,973

 

 

 

58,685,979

 

 

 

61,635,988

 

 

 

51,969,733

 

OTHER COMPREHENSIVE INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

$

26,824

 

 

$

20,791

 

 

$

78,376

 

 

$

69,594

 

Unrealized  Gain (Loss) on Commercial Mortgage-Backed

   Securities

 

 

523

 

 

 

(2,558

)

 

 

(1,115

)

 

 

(1,270

)

Comprehensive Net Income

 

$

27,347

 

 

$

18,233

 

 

$

77,261

 

 

$

68,324

 

 

(1)

Share and per share data reflect the impact of the common stock and Class A common stock dividend which was paid upon completion of the Company’s initial public offering on July 25, 2017 to holders of record as of July 3, 2017. See Note 12 to the Consolidated Financial Statements for details.

 

See accompanying notes to the Consolidated Financial Statements

 

 

2


 

TPG RE Finance Trust, Inc.

Consolidated Statements of

Changes in Equity (Unaudited)

(In thousands, except share and per share data)

 

 

 

Preferred Stock

 

 

Common Stock

 

 

Class A Common Stock

 

 

Additional

 

 

 

 

 

 

Accumulated

Other

 

 

 

 

 

 

 

Shares

 

 

Par

Value

 

 

Shares

 

 

Par

Value

 

 

Shares

 

 

Par

Value

 

 

Paid-

in-Capital

 

 

Accumulated

Deficit

 

 

Comprehensive

(Loss) Income

 

 

Total

Equity

 

Balance at December 31, 2016

 

 

125

 

 

$

 

 

 

38,260,053

 

 

$

39

 

 

 

967,500

 

 

$

1

 

 

$

979,467

 

 

$

(10,068

)

 

$

1,250

 

 

$

970,689

 

Issuance of Class A Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14,711

 

 

 

 

 

 

365

 

 

 

 

 

 

 

 

 

365

 

Issuance of Common Stock

 

 

 

 

 

 

 

 

12,642,166

 

 

 

12

 

 

 

 

 

 

 

 

 

257,622

 

 

 

 

 

 

 

 

 

257,634

 

Common Stock and Class A Common Stock

   Dividend

 

 

 

 

 

 

 

 

9,224,268

 

 

 

9

 

 

 

230,815

 

 

 

 

 

 

(9

)

 

 

 

 

 

 

 

 

 

Repurchases of Common Stock

 

 

 

 

 

 

 

 

(334,745

)

 

 

 

 

 

 

 

 

 

 

 

(7

)

 

 

(6,551

)

 

 

 

 

 

(6,558

)

Initial Public Offering Transaction Costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(20,713

)

 

 

 

 

 

 

 

 

(20,713

)

Net Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

69,594

 

 

 

 

 

 

69,594

 

Other Comprehensive (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,270

)

 

 

(1,270

)

Dividends on Preferred Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(12

)

 

 

 

 

 

(12

)

Dividends on Common Stock (Dividends

   Declared per Share of $1.18)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(60,566

)

 

 

 

 

 

(60,566

)

Dividends on Class A Common Stock

  (Dividends Declared per Share of $1.18)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,365

)

 

 

 

 

 

(1,365

)

Balance at September 30, 2017

 

 

125

 

 

$

 

 

 

59,791,742

 

 

$

60

 

 

 

1,213,026

 

 

$

1

 

 

$

1,216,725

 

 

$

(8,968

)

 

$

(20

)

 

$

1,207,798

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2017

 

 

125

 

 

$

 

 

 

59,440,112

 

 

$

60

 

 

 

1,178,618

 

 

$

1

 

 

$

1,216,112

 

 

$

(14,808

)

 

$

(34

)

 

$

1,201,331

 

Issuance of Class A Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of Common Stock

 

 

 

 

 

 

 

 

7,019,352

 

 

 

7

 

 

 

 

 

 

 

 

 

139,433

 

 

 

 

 

 

 

 

 

139,440

 

Conversions of Class A Common Stock to

   Common Stock

 

 

 

 

 

 

 

 

35,305

 

 

 

 

 

 

(35,305

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Repurchases of Common Stock

 

 

 

 

 

 

 

 

(450,805

)

 

 

 

 

 

 

 

 

 

 

 

(9

)

 

 

(8,499

)

 

 

 

 

 

(8,508

)

Redemption of Series A Preferred Stock

 

 

(125

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(125

)

 

 

 

 

 

 

 

 

(125

)

Equity Issuance and Shelf Registration

   Statement Transaction Costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(857

)

 

 

 

 

 

 

 

 

(857

)

Amortization of Share Based Compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

483

 

 

 

 

 

 

 

 

 

483

 

Net Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

78,376

 

 

 

 

 

 

78,376

 

Other Comprehensive (Loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,115

)

 

 

(1,115

)

Dividends on Preferred Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3

)

 

 

 

 

 

(3

)

Dividends on Common Stock

   (Dividends Declared per Share of $1.28)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(78,663

)

 

 

 

 

 

(78,663

)

Dividends on Class A Common Stock

  (Dividends declared per Share of $1.28)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,473

)

 

 

 

 

 

(1,473

)

Balance at September 30, 2018

 

 

 

 

$

 

 

 

66,043,964

 

 

$

67

 

 

 

1,143,313

 

 

$

1

 

 

$

1,355,037

 

 

$

(25,070

)

 

$

(1,149

)

 

$

1,328,886

 

 

See accompanying notes to the Consolidated Financial Statements

 

3


 

TPG RE Finance Trust, Inc.

Consolidated Statements of Cash Flows (Unaudited)

(In thousands)

 

 

 

Nine Months Ended

September 30,

 

 

 

2018

 

 

2017

 

Cash Flows from Operating Activities:

 

 

 

 

 

 

 

 

Net Income

 

$

78,376

 

 

$

69,594

 

Adjustment to Reconcile Net Income to Net Cash Provided by Operating Activities:

 

 

 

 

 

 

 

 

Amortization and Accretion of Premiums, Discounts and Loan Origination Fees, net

 

 

(11,867

)

 

 

(15,867

)

Amortization of Deferred Financing Costs

 

 

12,103

 

 

 

9,160

 

Capitalized Accrued Interest

 

 

 

 

 

1,865

 

Loss (Gain) on Sales of Loans Held for Investment and Commercial Mortgage-Backed Securities, net

 

 

524

 

 

 

(185

)

Stock Compensation Expense

 

 

483

 

 

 

 

Cash Flows Due to Changes in Operating Assets and Liabilities:

 

 

 

 

 

 

 

 

Accounts Receivable

 

 

103

 

 

 

503

 

Accrued Interest Receivable

 

 

(4,012

)

 

 

(776

)

Accrued Expenses

 

 

1,113

 

 

 

(2,454

)

Accrued Interest Payable

 

 

(360

)

 

 

826

 

Payable to Affiliates

 

 

1,677

 

 

 

5,193

 

Deferred Fee Income

 

 

(101

)

 

 

75

 

Other Assets

 

 

149

 

 

 

(694

)

Net Cash Provided by Operating Activities

 

 

78,188

 

 

 

67,240

 

Cash Flows from Investing Activities:

 

 

 

 

 

 

 

 

Origination of Loans Held for Investment

 

 

(1,622,084

)

 

 

(1,149,911

)

Advances on Loans Held for Investment

 

 

(207,657

)

 

 

(226,187

)

Principal Advances Held by Servicer/Trustee

 

 

 

 

 

496

 

Principal Repayments of Loans Held for Investment

 

 

858,130

 

 

 

975,258

 

Proceeds from Sales of Loans Held for Investment

 

 

2,174

 

 

 

65,054

 

Purchase of Commercial Mortgage-Backed Securities

 

 

(143,643

)

 

 

(96,294

)

Sales and Principal Repayments of  Commercial Mortgage-Backed Securities

 

 

146,016

 

 

 

29,802

 

Purchases and Disposals of Fixed Assets

 

 

 

 

 

(108

)

Net Cash Used in Investing Activities

 

 

(967,064

)

 

 

(401,890

)

Cash Flows from Financing Activities:

 

 

 

 

 

 

 

 

Payments on Collateralized Loan Obligation

 

 

 

 

 

(559,574

)

Proceeds from Collateralized Loan Obligation

 

 

745,904

 

 

 

16,254

 

Payments on Secured Financing Agreements

 

 

(1,432,221

)

 

 

(621,552

)

Proceeds from Secured Financing Agreements

 

 

1,508,313

 

 

 

1,293,530

 

Payment of Deferred Financing Costs

 

 

(18,818

)

 

 

(6,207

)

Proceeds from Issuance of Common Stock

 

 

139,440

 

 

 

243,654

 

Payments to Repurchase Common Stock

 

 

(8,361

)

 

 

(6,000

)

Proceeds from Issuance of Class A Common Stock

 

 

 

 

 

365

 

Payments to Redeem Series A Preferred Stock

 

 

(125

)

 

 

 

Payment of Equity Issuance and Shelf Registration Statement Transaction Costs

 

 

(251

)

 

 

(4,341

)

Dividends Paid on Common Stock

 

 

(72,857

)

 

 

(58,743

)

Dividends Paid on Class A Common Stock

 

 

(1,429

)

 

 

(1,403

)

Dividends Paid on Preferred Stock

 

 

(3

)

 

 

(8

)

Net Cash Provided by Financing Activities

 

 

859,592

 

 

 

295,975

 

Net Change in Cash, Cash Equivalents, and Restricted Cash

 

 

(29,284

)

 

 

(38,675

)

Cash, Cash Equivalents and Restricted Cash at Beginning of Period

 

 

75,737

 

 

 

103,975

 

Cash, Cash Equivalents and Restricted Cash at End of Period

 

$

46,453

 

 

$

65,300

 

Supplemental Disclosure of Cash Flow Information:

 

 

 

 

 

 

 

 

Interest Paid

 

$

78,707

 

 

$

46,600

 

Taxes Paid

 

 

208

 

 

 

141

 

Supplemental Disclosure of Non-Cash Investing and Financing Activities: