TPG RE Finance Trust, Inc. (NYSE:TRTX) Q4 2022 Earnings Call Transcript

Doug Bouquard: Yeah, I mean that’s a great question and I think it really kind of goes back to our approach. We’re solely focused on maximizing shareholder value. That may take the form of and again, that could be a modification, that could be a principal pay-down, that could be an extension, that could be a note sale, that could be foreclosing. So the reason why I highlight that myriad of path is we’re just solely focused on maximizing shareholder value. And I think from a timing perspective, we are I would say pursuing all of those paths with a general eye on the fact that our view is that office is more likely to not improve in the near term. So on the margin we are trying to move quickly, and that’s why again, I would sort of go back to parts of the asset that we resolved in Q4 as I think a very good proxy for our ability to asset manage and the pace at which we do it.

That was basically all kind of transpired within one quarter. I do acknowledge that some assets may take longer than just within a quarter to resolve, but we’re generally speaking, we’ve been I think very front footed relative to competitors, and I think that we will be able to quickly resolve while maximizing shareholder value.

Don Fandetti: Got it. And the buyer of that office property, you had mentioned was a local buyer, what did they – what’s their sort of business plan? What did they see that the other borrower was unable to execute on or handle?

Doug Bouquard: Sorry, I shouldn’t have been more clear, which is that the buyer itself has experienced across the U.S. and happened to know that market very well. But I would say the principal strategy for the buyer was just to focus on leasing up the space. I think the prior owner had frankly lost some momentum on that front, and this is a good example where you have a new buyer coming up $30 million, approximately $30 million of fresh cash equity behind us and with that cash equity infusion, they are basically focused on leasing up the remaining space in that office asset.

Don Fandetti: Okay, thanks.

Operator: Thank you. Ladies and gentlemen, we have reached the end of the question-and-answer session, and I’d like to turn the floor back over to Doug Bouquard for closing comments. Over to you, sir.

Doug Bouquard : Yes, again just wanted to thank everyone for taking the time this morning. And look forward to keeping you updated over the next few quarters. Thank you very much.

Operator: Thank you. This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.