Tpg Re Finance Trust, Inc. · NYSE:TRTX
Tpg Re Finance Trust — Investor Presentation (November 2022)
26 slides from Tpg Re Finance Trust's investor presentation, Nov 16, 2022
Slide 1: TPG RE Finance Trust, Inc. Investor Presentation November 2022
November 2022 TPG RE Finance Trust, Inc. Investor Presentation Exhibit 99.1
Slide 2: Forward-Looking Statements and Other Disclosures
Forward-Looking Statements and Other Disclosures 2 This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which reflect our current vie
Slide 3: TRTX By the Numbers
3 TRTX By the Numbers $5.8 billion Total Loan Commitments 1. In addition to credit spread, all-in yield includes the amortization of deferred origination fees, purchase price discount, and accrual of both extension and exit fees. All-in yield for the total portfolio assumes the applicable floating b
Slide 4: TPG – Premier Global Asset Manager
4Investor Presentation | November 2022 TPG – Premier Global Asset Manager Capital Real Estate Impact TPG Real Estate Partners (TREP) Market Solutions $68B $20B $16B$22B $10B Real Estate Thematic Advantage Core Plus (TAC+) TPG Real Estate Partners (TREP) TPG RE Finance Trust (TRTX) TPG Rise Climate T
Slide 5: Career Credit Investors Drive Investment Strategy
5 Career Credit Investors Drive Investment Strategy Leadership team has invested through multiple business and real estate cycles Emphasis on credit quality and principal protection Engagement throughout the investment process Deep, extensive relationships with owners, borrowers, brokers and
Slide 6: 3Q22 Operating Results
6 3Q22 Operating Results ($ in millions) Net Income (Loss) Attributable to Common Stockholders1 Adjustments Distributable Earnings2 Interest Income $75.5 $ - $75.5 Interest Expense (45.1) - (45.1) Net Interest Income $30.4 - $30.4 Management Fees (5.9) - (5.9) Stock Compensation Expense (0.9) 0.9 -
Slide 7: Common Dividend Coverage
7 Common Dividend Coverage 1. Refer to Appendix for reconciliation from GAAP Net Income (Loss) to Net Income (Loss) Attributable to Common Stockholders 2. Refer to Appendix for reconciliation from GAAP Net Income (Loss) to Distributable Earnings 3. Includes Special Dividend of $5.5M total, or $0.07
Slide 8: Liquidity and Leverage
2.36x 2.50x 2.47x 3.13x 2.45x 2.59x 2.56x 3.13x 12/31/2021 3/31/2022 6/30/2022 9/30/2022 Debt-to-Equity Ratio Total Leverage Ratio Liquidity and Leverage Available Liquidity ($ in millions) Leverage Ratios4 1. Cash held to satisfy liquidity covenants under secured credit agreements 2. Available for
Slide 9: Diversified Loan Portfolio
9 Diversified Loan Portfolio 29% 16% 13% 7% Geography4,5 East 34.0% Midwest 6.4% Southeast 12.6% Southwest 15.6% West 31.4% Portfolio Metrics Total Loan Commitments $5.8B Outstanding Principal Balance $5.3B MSA Concentrations (Top 25 / Top 10)1 70.5% / 47.1% Weighted Average All-in Yield2 7.09% Weig
Slide 10: Loan Portfolio Shift
43.4% 41.9% 28.1% 8.9% 9.1% 7.0% 23.4% 29.5% 44.2% 12.6% 12.2% 11.7% 10.7% 6.4% 4.9% 2.0% 1.0% 0.9% 2.1% 66.4% 67.1% 67.2% Sep 30, 2021 Dec 31, 2021 Sep 30, 2022 10 Loan Portfolio Shift Theme-driven investment approach targeting multifamily and industrial properties in high-growth regions Contin
Slide 11: Select 3Q22 Investments
11 Select 3Q22 Investments Multifamily Multifamily Hotel3 $245.0M $72.0M $148.5M San Jose, CA Yonkers, NY Dallas, TX 551-unit, 2-building property with 35k SF of ground floor retail and 950 parking spaces; buildings were completed in 2019 and 2020 180-unit high-rise, completed in 2021, adjacent
Slide 12: Loan Portfolio Walk
Loan Portfolio Walk 12 Loan Funding Activity Repayments/Sales Unfunded Loan CommitmentsDeferred Fundings and New Loan Investments2UPBTotal Loan Commitments1 3 44 5 QoQ Increase of 13.2% 1. Loan commitments exclude (1) PIK interest of $2.4 million as of September 30, 2022, $2.4 million as of June 30,
Slide 13: Risk Ratings
Risk Ratings Dispersion of Risk Ratings1 Stable Risk Ratings1 By Amortized Cost 5 13 3.01 3.14 3.17 3.17 12/31/2021 3/31/2022 6/30/2022 9/30/2022 Start of Period 3.1 3.0 3.1 3.2 Repayments/ Sales 3.3 3.0 2.8 2.6 Originations/ Acquisitions 3.0 3.0 3.0 3.0 End of Period 3.0 3.1 3.2 3.2 Trailing 4 Quar
Slide 14: CECL Reserve
14 CECL Reserve $46.2 $51.1 $82.3 $153.3 $11.1 $72.3 $46.2 $51.1 $93.4 $225.6 12/31/2021 3/31/2022 6/30/2022 9/30/2022 General Reserve Specifically Identified Loans QoQ CECL Reserve 85 91 159 265 21 125 85 91 180 390 1 12/31/2021 3/31/2022 6/30/2022 9/30/2022 General Reserve Specifically Identified
Slide 15: Loan Financing
25.1% 13.1% 4.7%57.1% Secured Credit Agreements (MTM) Asset-Specific Financing Secured Revolving Credit Facility Collateralized Loan Obligations 15 Loan Financing Financing Metrics Total Financing Capacity $6.3B Outstanding Principal Balance $4.3B Sources of Financing 14 Non-Mark-to-Market 74.9% Wei
Slide 16: Focus on Non-MTM Financing
Focus on Non-MTM Financing 16 31.2% 19.7% 13.3% 64.1% 31.2% 59.8% 0.0% 0.0% 68.8% 80.3% 86.7% 35.9% 68.8% 40.2% 100.0% 100.0% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% Office Multifamily Mixed-Use Life Science Hotel Industrial Self-Storage Land % MTM % Non-MTM Investor Presentation | November 2022 Financi
Slide 17: Benefit of Rising Rates
17 Benefit of Rising Rates ($0.01) $0.01 $0.02 $0.03 $0.07 -$0.01 $0.01 $0.03 $0.05 $0.07 -0.25% 0.00% 0.25% 0.50% 1.00% 2.00% Portfolio Net Interest Income Sensitivity ($ Impact per Share per Quarter)1 $ .00 Index Rate at September 30, 2022 LIBOR: 3.14% Term SOFR: 3.04% + 0.50%+ 0.25%- 0.25% + 2.00
Slide 18: Interest Rate Floors
$2,635M $744M $678M $1,113M $161M 2.20% 3.39% 3.47% 3.69% 3.08% 0.16% 0.88% 1.48% 1.88% 2.23% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% $0 $500 $1,000 $1,500 $2,000 $2,500 0.50% or Less 0.51% to 1.00% 1.01% to 1.50% 1.51% to 2.00% 2.01% or More W eighted Average Index Rate Floor U PB ($
Slide 19: Appendix
Appendix
Slide 20: Per Share Calculations and Reconciliation of Distributable Earnings
Per Share Calculations Reconciliation of Net Income Attributable to Common Stockholders and Distributable Earnings 1. Includes preferred stock dividends declared and paid for Series A preferred stock and Series C Preferred Stock 2. For the three months ended June 30, 2022 and December 31, 2021, taxa
Slide 21: Definitions
Definitions Distributable Earnings is a non-GAAP measure defined as GAAP net income (loss) attributable to our common stockholders, including realized gains and losses, regardless of whether such items are included in other comprehensive income or loss, or in GAAP net income (loss), and excluding
Slide 22: Definitions (cont.)
Definitions (cont.) Fundings to borrowers that are made under existing loan commitments after a loan closing dateDeferred Fundings Geographic Diversity TRTX divides the South region into separate Southeast and Southwest regions using definitions established by The National Council of Real Estate
Slide 23: Definitions (cont.)
Definitions (cont.) 23 Bridge Loan - A loan with limited deferred fundings, generally less than 10% of the total loan commitment, which fundings are commonly conditioned on the borrower’s satisfaction of certain collateral performance tests. The related business plan generally involves little or n
Slide 24: Definitions (cont.)
Definitions (cont.) 24 Property Types Mixed-Use: TRTX classifies a loan as mixed-use if the property securing TRTX’s loan (a) involves more than one use; and (b) no single use represents more than 60% of the collateral property’s total value. In certain instances, TRTX’s classification may be dete
Slide 25: Definitions (cont.) Loan Risk Ratings
Definitions (cont.) 25Investor Presentation | November 2022 Loan Risk Ratings Based on a 5-point scale, the Company’s loans are rated “1” through “5,” from least risk to greatest risk, respectively, which ratings are defined as follows: – 1 - Outperform—Exceeds performance metrics (for example, te
Slide 26: Company Information
Company Information Contact Information Headquarters: 888 Seventh Avenue 35th Floor New York, NY 10106 New York Stock Exchange: Symbol: TRTX TPG RE Finance Trust, Inc. Bob Foley Chief Financial Officer +1 (212) 430-4111 bfoley@tpg.com Brandon Fox Chief Accounting Officer +1 (415) 706-2751 bfox@tpg.c
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