Tpg Re Finance Trust, Inc. · NYSE:TRTX
Tpg Re Finance Trust — Q1 2021 Earnings Presentation
27 slides from Tpg Re Finance Trust's earnings presentation, May 4, 2021
Slide 1: First Quarter 2021 Supplemental Information
May 4, 2021 First Quarter 2021 Supplemental Information Exhibit 99.2
Slide 2: Forward-Looking Statements and Other Disclosures
Forward-Looking Statements and Other Disclosures The information contained in this earnings 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. These forwar
Slide 3: 1Q 2021 Highlights
1Q 2021 Highlights Earnings Loan Portfolio Liquidity & Capitalization 1. Calculated on Net Income Attributable to Common Stockholders 2. See Appendix for definitions 3. In connection with adoption on January 1, 2020 of Accounting Standards Update 2016-13, Financial Instruments – Credit Losses (“ASU
Slide 4: Loan Portfolio
Loan Portfolio 1. See Appendix for definitions 2. Includes conversion of $112.0M first mortgage loan to Real Estate Owned with carrying value of $99.2M Note: Totals may not sum due to rounding Loan Investment Portfolio1 ($ in millions) As of March 31, 2021 As of December 31, 2020 QoQ Change Total Lo
Slide 5: Operating Performance and Dividend Coverage
Operating Performance and Dividend Coverage Operating Performance 1. See Appendix for definitions Operating Performance¹ ($ in millions) 2Q20 3Q20 4Q20 1Q21 Net Income Attributable to Common Stockholders $40.1 $30.8 $6.6 $24.2 Distributable Earnings $17.5 $32.6 $11.7 $21.7 Cash Dividends Declared on
Slide 6: Liquidity and Leverage
Liquidity and Leverage Available Liquidity Leverage Ratio 1. Cash held to satisfy minimum cash requirement under secured credit facility covenants 2. Represents (i) total outstanding borrowings under financing arrangements, net, including collateralized loan obligations, secured credit agreements, a
Slide 7: Book Value Walk 1Q 2021
Book Value Walk 1Q 2021 $16.55 $16.61 1. Equals CECL reserve of $58.8M divided by loan commitments of $5.0B, both as of March 31, 2021 2. Does not reflect dilutive impact of 12M warrants held by an affiliate of Starwood Capital Group Note: Totals may not sum due to rounding Recurring Operations CECL
Slide 8: National, Major Market Footprint
National, Major Market Footprint2 Lending Focused in Top 25 Markets1 Top 25 Markets Account for 86.8% of Total Loan Commitments Loan Category Geographic Diversity Diversified Loan Portfolio Property Diversity2 1. Top 25 markets determined by US Census. Portfolio loans with collateral properties that
Slide 9: Multifamily and Office Loan Overview
Multifamily and Office Loan Overview Office¹ 65.4% Weighted Average LTV3 96.2% in Top 25 US MSAs / 69.4% in Top 10 0% Construction Loans $106.0M Average Loan Size Multifamily² 74.5% Weighted Average LTV3 74.7% in Top 25 US MSAs / 42.2% in Top 10 0% Construction Loans $77.3M Average Loan Size 1. At M
Slide 10: Risk Ratings
Risk Ratings 1. See Appendix for a description of the Company’s Loan Risk Rating scale and definition of Loan Category 2. Includes a single sponsor relationship with common control of 4 loans with total amortized cost of $25.0 million 3. Includes an amendment and assumption of existing office loan;
Slide 11: Interest Collections
Interest Collections Loan Payment Performance PIK Interest TTM ($ in Thousands) Uncollected Interest1 3.3% 4Q20 1Q21 99.4% interest collections during 1Q21, including PIK interest of 1.2% 1. Scheduled collections of 100% less (i) default interest from maturity date to foreclosure date waived under t
Slide 12: Loan Modifications
Loan Modifications Loan Modifications at 3/31/211 Economic modifications typically consist of one or more of the following: partial repayments of principal; equity contributions; repurposing of reserves; deferred PIK interest agreements; and adjustments to debt yield thresholds or other conditions p
Slide 13: Loan Financing Overview
Loan Financing Overview 1. Omits the impact of LIBOR floors on approximately 8% of our financing 2. Based on extended maturity dates where ability to extend is at Company’s option Note: Totals may not sum due to rounding Loan Financing Arrangements as of March 31, 2021 Total loan portfolio financing
Slide 14: Non-Mark to Market Liabilities
Non-Mark to Market Liabilities 1 1. Includes hotel specific facility which may be re-margined beginning after the facility’s 2nd anniversary date based on LTV test; otherwise, no credit or spread marks apply Non-MTM Liabilities are 84% of total loan portfolio debt, an increase of 41% since 1Q 2020 T
Slide 15: Capital Structure Overview
Capital Structure Overview $50.0 (1%) $2,868.0 (55%) $860.9 (16%) $201.0 (4%) $1,277.2 (24%) Series B Preferred Stock Mortgage Loan Payable Collateralized Loan Obligations Secured Credit Agreements Common Equity at Book Value ($ in millions) Maximum Capacity Maximum Capacity W.A. Approved Advance Ra
Slide 16: Interest Rate Sensitivity
Interest Rate Sensitivity LIBOR $ Impact per Share per Quarter1 100% of the loan portfolio is indexed to one-month USD LIBOR Loan portfolio benefits from low rates due to high in-place LIBOR floors on loans; weighted average LIBOR floor is 1.64% 99% of the loan portfolio is subject to a LIBOR floor
Slide 17: Appendix
Appendix
Slide 18: TRTX Loan Portfolio
TRTX Loan Portfolio Loan Name TRTX Loan Commitment1 TRTX Loan Balance2 Interest Rate Extended Maturity Location Property Type Commitment Per Sq. ft. / Unit LTV3 Loan 1 $300.8 $287.5 L+ 1.6% 3.4 years New York, NY Office $594 Sq. ft. 65.2% Loan 2 $223.0 $172.4 L+ 3.4% 3.4 years Brookhaven (Atlanta),
Slide 19: Per Share Calculations
Per Share Calculations Per Share Calculations / Distributable Earnings Reconciliation Earnings and Dividends per Common Share Three Months Ended (unaudited) March 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Net Income (Loss) Attributable to Common Stockholders1 $24,233 $6,638 $30,782 $40,105 Wei
Slide 20: Consolidated Balance Sheets
ASSETS March 31, 2021 December 31, 2020 Cash and Cash Equivalents $301,607 $319,669 Restricted Cash 813 — Accounts Receivable 755 785 Collateralized Loan Proceeds Held at Trustee 310,070 174 Accounts Receivable from Servicer/Trustee 177 418 Accrued Interest and Fees Receivable 29,229 27,391 Loans He
Slide 21: Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income and Comprehensive Income All amounts in thousands except share and per share amounts (three months ended March 31 is unaudited) Three Months Ended March 31, INTEREST INCOME 2021 2020 Interest Income $58,148 $81,749 Interest Expense (20,290) (38,457) Net Interest Inc
Slide 22: Cash Flows from Operating Activities
Cash Flows from Operating Activities: March 31, 2021 March 31, 2020 Net Income (Loss) $31,955 ($232,790) Adjustment to Reconcile Net Income to Net Cash Provided by Operating Activities: Amortization and Accretion of Premiums, Discounts and Loan Origination Fees, net (1,600) (3,194) Amortization of D
Slide 23: Definitions
Definitions We use Distributable Earnings to evaluate our performance excluding the effects of certain transactions and GAAP adjustments we believe are not necessarily indicative of our current loan activity and operations. Distributable Earnings is a non-GAAP measure, which we define as GAAP net in
Slide 24: Definitions (cont.)
Definitions (cont.) Debt-to-Equity - Represents (i) total outstanding borrowings under financing arrangements, net, including collateralized loan obligations, secured credit agreements, and mortgage loan payable, less cash, to (ii) total stockholders’ equity, at period end Total Leverage - Represent
Slide 25: Definitions (cont.)
Definitions (cont.) Bridge/Stabilization 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 li
Slide 26: Definitions (cont.)
Definitions (cont.) Loan Risk Ratings Using on a 5-point scale, TRTX’s loans are rated “1” through “5,” from least risk to greatest risk, respectively, on a quarterly basis. Risk ratings are presented by amortized cost. The loan risk ratings are defined as follows: 1: Outperform—Exceeds performance
Slide 27: 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 Investor Relations: +1 (212) 405-8500 IR@tpgrefinance.com Media C