Tpg Re Finance Trust, Inc. · NYSE:TRTX
Tpg Re Finance Trust — FY2023 Earnings Presentation
27 slides from Tpg Re Finance Trust's earnings presentation, Feb 20, 2024
Slide 1: Fourth Quarter and Full Year 2023 Supplemental Information
February 20, 2024 Fourth Quarter and Full Year 2023 Supplemental Information Exhibit 99.2
Slide 2: Forward-Looking Statements and Other Disclosures
Supplemental Information| 4Q 2023 2TPG RE Finance Trust, Inc.| NYSE: TRTX Forward-Looking Statements and Other Disclosures 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
Slide 3: TRTX By the Numbers
Supplemental Information| 4Q 2023 3TPG RE Finance Trust, Inc.| NYSE: TRTX TRTX By the Numbers 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 portfol
Slide 4: Fourth Quarter and Full Year 2023 Highlights
Supplemental Information| 4Q 2023 4TPG RE Finance Trust, Inc.| NYSE: TRTX Fourth Quarter and Full Year 2023 Highlights Financials 1.Refer to Appendix for reconciliation from GAAP Net Income (Loss) to Distributable Earnings before realized losses 2. In addition to credit spread, all-in yield includes
Slide 5: 4Q23 Operating Results and Book Value
Supplemental Information| 4Q 2023 5TPG RE Finance Trust, Inc.| NYSE: TRTX $12.04 ($0.02) $0.30 ($0.24) ($0.04) $0.04 ($0.22) $11.86 Book Value 9/30/23 Issuance of Common Stock Net Income, Excluding Credit Loss Expense Dividends on Common Shares Dividends on Preferred Shares Equity Compensation Credi
Slide 6: Quarterly Operating Results
Supplemental Information| 4Q 2023 6TPG RE Finance Trust, Inc.| NYSE: TRTX ($2.05) ($1.33) ($0.18) $0.17 $0.31 $0.18 $0.25 $0.17$0.24 $0.24 $0.24 $0.24 Distributable Earnings per Basic and Diluted Share Distributable Earnings before realized losses per Diluted Share Common Dividend per Share 4Q23 3Q2
Slide 7: Liquidity and Leverage
Supplemental Information| 4Q 2023 7TPG RE Finance Trust, Inc.| NYSE: TRTX Liquidity and Leverage Available Liquidity ($ in millions) Leverage Ratios4,5 1. Cash held to satisfy liquidity covenants under secured credit agreements 2. Available for Eligible Collateral, as defined in relevant loan portfo
Slide 8: Loan Portfolio
Supplemental Information| 4Q 2023 8TPG RE Finance Trust, Inc.| NYSE: TRTX Loan Portfolio 32% 13% 6% Geography4,5 Portfolio Metrics Total Loan Commitments $3.7B Outstanding Principal Balance $3.5B MSA Concentrations (Top 25 / Top 10)1 59.6% / 31.6% Weighted Average All-in Yield2 9.28% Weighted Averag
Slide 9: Loan Portfolio Composition
Supplemental Information| 4Q 2023 9TPG RE Finance Trust, Inc.| NYSE: TRTX 28.5% 24.7% 19.9% 46.0% 46.1% 49.2% 8.9% 11.0% 10.6% 7.5% 9.6% 11.0% 5.2% 3.3% 3.1% 1.7% 2.5% 2.9% 0.9% 1.2% 1.4% 67.2% 67.2% 67.3% Office Multifamily Hotel Life Science Mixed-Use Industrial Self Storage Other Dec 31, 2022 Sep
Slide 10: Significant Reduction in Office Loans; Zero Non-Earning Assets
Supplemental Information| 4Q 2023 10TPG RE Finance Trust, Inc.| NYSE: TRTX Significant Reduction in Office Loans; Zero Non-Earning Assets $2,265.2 $1,553.4 $1,409.9 $1,217.2 $1,042.7 $728.4 4Q21 4Q22 1Q23 2Q23 3Q23 4Q23 68% Reduction in Office Loan Exposure Since 12/31/21 $ in millions 20% 42% 25% 2
Slide 11: Loan Portfolio Walk
Supplemental Information| 4Q 2023 11TPG RE Finance Trust, Inc.| NYSE: TRTX $5,004.8 $51.5 $111.2 ($227.8) $4,939.7 $33.0 ($350.4) ($55.0) $4,567.3 $21.4 $37.2 ($578.6) ($77.1) $3,970.2 $34.6 $48.3 ($315.1) ($254.0) $3,484.1 12/31/2022 Deferred Fundings Originations & Acquisitions Repayments & Sales
Slide 12: Risk Ratings
Supplemental Information| 4Q 2023 12TPG RE Finance Trust, Inc.| NYSE: TRTX 3.18 3.23 3.21 3.03 3/31/2023 06/30/2023 9/30/2023 12/31/2023 Risk Ratings Dispersion of Risk Ratings1 by Amortized Cost ($ in millions) Stable Risk Ratings1 By Amortized Cost Trailing 4 Quarter Average: 3.16 3.1 3.0 2.8 3.0
Slide 13: CECL Reserve
Supplemental Information| 4Q 2023 13TPG RE Finance Trust, Inc.| NYSE: TRTX 420 572 560 190 299 210 145 190 121 362 415 General Reserve Specifically Identified Loans 3/31/2023 6/30/2023 9/30/2023 12/31/2023 CECL Reserve QoQ CECL Reserve Reserve as bps of Total Loan Commitments1 Reserve as $M $222.4 $
Slide 14: Diverse Financing Sources
Supplemental Information| 4Q 2023 14TPG RE Finance Trust, Inc.| NYSE: TRTX Non-MTM 73.5% 26.5% 9.1% 0.8% 63.6% Secured Credit Agreements (MTM) Asset-Specific Financing Secured Revolving Credit Facility Collateralized Loan Obligations Non-MTM Financing Loan Financing Diverse Financing Sources Total F
Slide 15: Real Estate Owned
Supplemental Information| 4Q 2023 15TPG RE Finance Trust, Inc.| NYSE: TRTX Real Estate Owned Note: Data as of December 31, 2023 ($ in thousands) Office Multifamily Office Office Office Acquisition Date April 2023 December 2023 December 2023 December 2023 December 2023 Location Houston, TX Arlington
Slide 16: Impact of Changing Rates
Supplemental Information| 4Q 2023 16TPG RE Finance Trust, Inc.| NYSE: TRTX Change in Index Rate ($0.01) ($0.01) $0.00 $0.01 $0.01 - 1.00% - 0.50% 0.00% + 0.50% + 1.00% ($0.02) ($0.01) $0.00 $0.01 $0.02 Impact of Changing Rates Portfolio Net Interest Income Sensitivity ($ Impact per Share per Quarter
Slide 17: Appendix
TPG RE Finance Trust, Inc.| 4Q 2022 Appendix
Slide 18: TRTX Loan Portfolio
Supplemental Information| 4Q 2023 18TPG RE Finance Trust, Inc.| NYSE: TRTX TRTX Loan Portfolio 1. Represents TRTX’s potential maximum loan commitment/balance 2. Represents TRTX’s current loan balance and excludes third party pari passu and junior positions in the same capital structure, if any 3. Se
Slide 19: Per Share Calculations
Supplemental Information| 4Q 2023 19TPG RE Finance Trust, Inc.| NYSE: TRTX 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 St
Slide 20: Consolidated Balance Sheets
Supplemental Information| 4Q 2023 20TPG RE Finance Trust, Inc.| NYSE: TRTX All amounts in thousands except share and per share amounts Consolidated Balance Sheets ASSETS December 31, 2023 December 31, 2022 Cash and cash equivalents $206,376 $254,050 Restricted cash 642 265 Accounts receivable 40 666
Slide 21: Consolidated Statements of Income (Loss) and Comprehensive Income (Loss)
Supplemental Information| 4Q 2023 21TPG RE Finance Trust, Inc.| NYSE: TRTX Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) All amounts in thousands except share and per share amounts Three Months Ended, (unaudited) Year Ended December 31, Dec 31, 2023 Sep 30, 2023 2023 2022
Slide 22: Consolidated Statements of Cash Flows
Supplemental Information| 4Q 2023 22TPG RE Finance Trust, Inc.| NYSE: TRTX Consolidated Statements of Cash Flows All amounts in thousands Year Ended Cash flows from operating activities: December 31, 2023 December 31, 2022 Net (loss) ($116,630) ($60,066) Adjustment to reconcile net income to net cas
Slide 23: Definitions
Supplemental Information| 4Q 2023 23TPG RE Finance Trust, Inc.| NYSE: TRTX Definitions ▪ Distributable Earnings is a non-GAAP measure, which we define as GAAP net income (loss) attributable to our common stockholders, including realized gains and losses from loan sales and other loan resolutions (in
Slide 24: Definitions (cont.)
Supplemental Information| 4Q 2023 24TPG RE Finance Trust, Inc.| NYSE: TRTX 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 r
Slide 25: Definitions (cont.)
Supplemental Information| 4Q 2023 25TPG RE Finance Trust, Inc.| NYSE: TRTX Definitions (cont.) ▪ Except for construction loans, LTV is calculated for loan originations and existing loans as the total outstanding principal balance of the loan or participation interest in a loan (plus any financing th
Slide 26: Definitions (cont.)
Supplemental Information| 4Q 2023 26TPG RE Finance Trust, Inc.| NYSE: TRTX Definitions (cont.) 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 propert
Slide 27: Company Information
Supplemental Information| 4Q 2023 27TPG RE Finance Trust, Inc.| NYSE: TRTX 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 bfole