Company in Focus
May 13, 2022 – As a commercial real estate investment trust (REIT), TPG RE Finance Trust Inc. (TRTX) is a member of the Russell 2000 Index.
It had reported a net income of $20.4 million dollars in its second quarter ended March 31, 2022, based on a diluted count of 81.80 million shares, or $0.25 per common share.
TPG’s net income in its last fiscal year ended December 31, 2021 – was over $116 million.
Priced at $10.23 per share at today’s market close, its annual dividend amounts to $0.96 a share, yielding a good 9.37 percent a year.
This is of course not as high as the current inflation rate of around 14 percent (highest in some 40 years) but it certainly goes a long way to relieve economic pain felt by lower-income people and protect everyone from our present-day dollar-devaluing scourge that no government bond yield can even come close enough to alleviate us.
Here are some significant reasons why I state that TRTX is a GOOD BUY today:
- This company’s annual 9.37 percent dividend yield is higherthan the REIT industry dividend average of 8.28 percent.
- Its price-to-earnings (PE) ratio is just 12.65, versus the current S&P high average PE of 30.90 being nearly two-and-a-half times higher! For investors who want to buy shares of relatively low-PE companies with consistently good earnings, TRTX is a good buy.
- Almost 77 percent of its shareholders are institutions, who typically examine a company’s financials quite intensively, before investing.
- The book value of TRTX is actually $16.41, significantly higher by 57 percent, than its May 13 closing price of $10.23 per share, so you’re getting a great bargain.
- In the four years from 2017 to 2021, TRTX’s net income has grown $44.2 million from $94.3 million to $138.5 million, an average of nearly 12 percent annual growth.
- TRTX was priced more than double – at $20.72 a share – before the height of the pandemic in March 2020. There’s a chance its current price may go back to double its current price per share of $10.23, besides giving you an annual 9.55% dividend yield payable on a quarterly basis.
