Tpg Re Finance Trust, Inc. · NYSE:TRTX
Tpg Re Finance Trust — Q2 2017 Earnings Presentation
22 slides from Tpg Re Finance Trust's earnings presentation, Aug 24, 2017
Slide 1: Second Quarter 2017 Operating Results
Second Quarter 2017 Operating Results August 24, 2017 Exhibit 99.2
Slide 2: TPG RE Finance Trust Announces Second Quarter 2017 Results
TPG RE Finance Trust Announces Second Quarter 2017 Results ABOUT TRTX TPG RE Finance Trust, Inc. (NYSE:TRTX) (the “Company” or “TRTX”) is a commercial real estate finance company, operating as a real estate investment trust (“REIT”), that focuses primarily on directly originating, acquiring, and man
Slide 3: Second Quarter 2017 Highlights
Second Quarter 2017 Highlights Loan portfolio leverage of 65.3%, with loan portfolio weighted average cost of funds of LIBOR plus 2.58%, a decline of 6 basis points from the quarter ended March 31, 2017 $3.0 billion of financing commitments at June 30, 2017, including a $500.0 million increase from
Slide 4: Operating Performance
Operating Performance GAAP Net Income and Core Earnings1 of $25.3 million, or $0.64 per diluted common share for the quarter ended June 30, 2017 Net Interest Income increased to $32.1 million, up $8.8 million, or 37.6%, from the three months ended June 30, 2016 Declared dividends of $0.51 per common
Slide 5: Book Value per Common Share
Book Value per Common Share TRTX Equity Issuances and Net Income Drive Book Value per Common Share 1. On June 15, 2017, the Company completed a drawdown of $25 million of equity capital commitments from existing private stockholders, at a price of $24.83 per share, which was the book value per share
Slide 6: Loan Originations Q2 2017 Investment Highlights
Loan Originations Q2 2017 Investment Highlights Increased Loan Originations3 Closed 3 first mortgage loans Total commitment of $332.4 million Average loan size of $110.8 million 100% Floating Rate Weighted average credit spread of LIBOR plus 3.9% Weighted average LTV of 66.8% Diversified by property
Slide 7: Second Quarter 2017 Loan Originations
Second Quarter 2017 Loan Originations Investment: Mixed-Use Multifamily Mixed-Use $188.0M $84.4M $60.0M L+4.10% L+3.75% L+3.85% Nashville, TN Jersey City, NJ Newark, NJ 350 Luxury Residential Units | 180-Key Hotel | 32,273 NSF of Retail and Restaurants | 635-Space Parking Garage 569 Residential Unit
Slide 8: Diversified Loan Portfolio: Geographic Diversity
Geographic Diversity2 Loan Portfolio: $2.7 billion Loan Type: First Mortgage 97.2% | Mezzanine 2.8% Weighted Average Credit Spread: 5.0% Weighted Average LTV: 60.2% Property Diversity: No property type > 22% (net) Diversified Loan Portfolio National, Major Market Footprint Property Diversity2 Lendin
Slide 9: Financing Facilities as of June 30, 2017
Financing Facilities as of June 30, 2017 Total commitments of $3.0 billion1 at a weighted average cost of funds of LIBOR plus 2.58% for the loan portfolio Added $500.0 million of financing capacity via $250.0 million upsizes to existing Well Fargo and Goldman Sachs secured revolving repurchase agree
Slide 10: Capitalization as of June 30, 2017
Capitalization as of June 30, 2017 Current Leverage Ratio and Available Liquidity to Drive Loan Portfolio Growth 1. Includes $107.0 million of financing capacity at June 30, 2017 under a subscription secured line of credit that was terminated on July 20, 2017 as a result of the completion of the Com
Slide 11: Interest Rate Sensitivity
Interest Rate Sensitivity 97.8% floating rate primarily first mortgage loan portfolio well positioned in a rising interest rate environment1 Net floating rate mortgage loan exposure of $697 million generates an annualized per diluted common share increase of $0.07 to Net Interest Income for every 50
Slide 12: Subsequent Events through August 24, 2017
Subsequent Events through August 24, 2017 Closed $353.5 million of additional financing capacity for new loan investments Upsized Morgan Stanley credit facility to $400.0 million from $250.0 million, with accordion feature to $500.0 million Upsized JP Morgan Chase credit facility to $417.2 million f
Slide 13: Appendix
Appendix
Slide 14: Per Share Calculations / Core Earnings Reconciliation
Per Share Calculations Per Share Calculations / Core Earnings Reconciliation Earnings and Dividends per Common Share Three Months Ended June 30, 2017 March 31, 2017 Net Income Attributable to Common Stockholders1 $ 25,320 $ 23,475 Weighted Average Number of Common Shares Outstanding, Basic and Dilut
Slide 15: Year-to-Date Loan Funding Activity
Year-to-Date Loan Funding Activity Loan Funding Activity1 $ Millions 1. Deferred fundings exclude the net change in accrued PIK interest of: $3.0 million in Q1 2017; $0.5 million in Q2 2017; and $0.1 million from July 1, 2017 to August 23, 2017. 2. Total loan commitments exclude accrued PIK interest
Slide 16: TRTX Loan Portfolio
TRTX Loan Portfolio Loan Name TRTX Loan Commitment1 TRTX Loan Balance2 Credit Spread Extended Maturity Location Property Type Loan PSF LTV3 Loan 1 $188.0 $142.0 L + 4.1% 4.3 years Nashville, TN Mixed-Use4 $292 Sq ft 60.7% Loan 2 164.0 122.5 L + 4.5% 4.5 years Atlanta, GA Retail $462 Sq ft 47.7% Loan
Slide 17: Consolidated Balance Sheets
Consolidated Balance Sheets Jun 30, 2017 Dec 31, 2016 ASSETS (unaudited) Cash and Cash Equivalents $200,653 $103,126 Restricted Cash 1,081 849 Accounts Receivable 382 644 Accounts Receivable from Servicer / Trustee 47,416 34,743 Accrued Interest Receivable 12,207 14,023 Loans Held for Investment (in
Slide 18: Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income and Comprehensive Income Three Months Ended Jun 30, Six Months Ended Jun 30, 2017 2016 2017 2016 INTEREST INCOME Interest Income $51,736 $38,400 $99,677 $72,132 Interest Expense (19,635) (15,076) (37,435) (28,006) Net Interest Income 32,101 23,324 62,242 44,126 OTHE
Slide 19: Definitions
Definitions TRTX uses Core Earnings to evaluate its performance excluding the effects of certain transactions and GAAP adjustments it believes are not necessarily indicative of its current loan activity and operations. Core Earnings is a non-GAAP measure, which TRTX defines as GAAP net income (loss)
Slide 20: Definitions (cont.)
Definitions (cont.) Debt-to-Equity - Represents (i) total outstanding borrowings under secured debt agreements (collateralized loan obligation, net), secured financing/repurchase agreements (net) and notes payable (net), less cash, to (ii) total stockholders’ equity, at period end Total Leverage - R
Slide 21: Definitions (cont.)
Definitions (cont.) In connection with any origination or co‐origination of a mezzanine loan by TRTX, the senior mortgage loan that is contemporaneously issued by the borrower to a senior mortgage lender or that is transferred by TRTX to the co‐originating senior mortgage lender. In either case, the
Slide 22: Company Information
Company Information Contact Information Headquarters: 888 Seventh Avenue 35th Floor New York, NY 10106 Investor Relations: (212) 405-8500 IR@tpgrefinance.com New York Stock Exchange: Symbol: TRTX Analyst Coverage Bank of America Merrill Lynch Kenneth Bruce (415) 676-3545 Deutsche Bank George Bahamon