Tpg Re Finance Trust, Inc. · NYSE:TRTX
Tpg Re Finance Trust — Q2 2019 Earnings Presentation
25 slides from Tpg Re Finance Trust's earnings presentation, Jul 29, 2019
Slide 1: Second Quarter 2019 Operating Results
July 29, 2019 Second Quarter 2019 Operating Results Exhibit 99.2
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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 forward‐looking statements a
Slide 3: Second Quarter 2019 Highlights
Second Quarter 2019 Highlights 2Q 2019 Highlights 1. See Appendix for definitions, including definitions of Core Earnings (reconciliation to GAAP net income), Asset-Level Estimated Return on Equity (“ALEROE”), LTV, and Loan Risk Rating 2. Inclusive of the Stanly Ranch co-originated senior loan of $1
Slide 4: Loan Portfolio Highlights
Loan Portfolio Highlights Loan Investment Activity Loan Portfolio 1. See Appendix for definitions, including definitions of LTV, Loan Category, Property Type, Loan Risk Rating, and Asset-Level Estimated Return on Equity (“ALEROE”) 2. Inclusive of the Stanly Ranch co-originated senior loan of $132.0
Slide 5: Operating Performance Highlights
Operating Performance Highlights Financial Performance Performance Metric June 30, 2019 March 31, 2019 QoQ Change GAAP net income $32.0 million ($0.43 / share) $28.4 million ($0.42 / share) 12.7% Core Earnings1 $32.7 million ($0.44 / share) $28.9 million ($0.43 / share) 13.1% Cash dividends declared
Slide 6: Operating Performance
$0.43 $0.43 $0.43 Operating Performance 2Q19 net interest income increased to $41.8 million, up $4.6 million, or 12.4%, from the quarter ended March 31, 2019, due primarily to net growth of interest earning assets Declared cash dividends of $0.43 per common share during the quarter ended June 30, 20
Slide 7: Diversified Loan Portfolio
Loan Category Geographic Diversity Diversified Loan Portfolio National, Major Market Footprint2 Property Diversity2 Lending Focused in Top 25 Markets1 Fixed vs. Floating2 1. Top 25 markets determined by US Census. Portfolio loans with collateral properties that are located in different MSAs are clas
Slide 8: Diversified Loan Portfolio
Diversified Loan Portfolio 1. See Appendix for a description of the Company’s Loan Risk Rating scale and definition of Loan Category and Property Type 2. By total loan commitment 3. By loan carrying value 4. Includes the Las Vegas Land loan (total loan commitment of $112.0 million), which closed dur
Slide 9: Loan Originations
Loan Originations 2Q19 Investment Highlights1 Closed 8 first mortgage loans, retaining 1 mezzanine loan Total commitments of $755.0 million Initial fundings of $507.8 million Average loan size of $94.4 million2 100% Floating Rate Weighted average LIBOR floor of 1.84% Weighted average interest rate o
Slide 10: Select 2Q 2019 Loan Originations
Hotel Office Mixed-use $62.0M $135.0M $143.0M Calistoga, CA Charlotte, NC & Sarasota, FL New York, NY 89-key luxury resort (expanding to 100-keys) Two office buildings totaling 725k SF A 100% leased office building (Microsoft (AAA/Aaa)) with ground floor retail Complete 11 new suites, expand meeting
Slide 11: Loan Funding Activity through June 30, 2019
Loan Funding Activity through June 30, 2019 2Q19 portfolio growth spurred by $755.01 million of new loan commitments with a $94.4 million average loan size Loan UPB grew $116.2 million to $4.8 billion; loan repayments totaled $451.3 million in 2Q19, compared to $271.1 million in 1Q19 1. New loan ori
Slide 12: Loan Portfolio Financing as of June 30, 2019
Loan Portfolio Financing as of June 30, 2019 1. Total Loan Portfolio Financing Capacity and Financing Utilization relates only to the financing of the Company’s loan investments 2. Borrowings are 100% recourse to the Company Note: Excludes items related to CMBS and CRE CLO investments. Totals may no
Slide 13: Capital Deployment
Capital Deployment Strong, Diverse Capital Base Drives Portfolio Growth & Attractive Asset-Level Returns 1. See Appendix for definitions, including definitions of Debt-to-Equity and Total Leverage 2. Outstanding total loan commitments as of the reporting date 3. Does not take into account near term
Slide 14: Interest Rate Sensitivity
Interest Rate Sensitivity Net floating rate mortgage loan exposure of $1.1 billion generates an annualized increase in net interest income of approximately $5.5 million for every 50 basis point increase in 1-month LIBOR1 100% floating rate loan portfolio that benefits from contractual interest rate
Slide 15: Appendix
Appendix
Slide 16: Per Share Calculations / Core Earnings Reconciliation
Per Share Calculations Per Share Calculations / Core Earnings Reconciliation Earnings and Dividends per Common Share For the Period Ended (unaudited) Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Net Income Attributable to Common Stockholders1 $31,827 $28,268 $28,467 $26,797 Weighted-Average N
Slide 17: 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 $223.0 $167.8 L + 3.4% 5.1 years Atlanta, GA Office $214 Sq. ft. 61.4% Loan 2 $210.0 131.9 L + 3.6% 4.5 years Detroit, MI Office $21
Slide 18: Consolidated Balance Sheets
ASSETS June 30, 2019 December, 2018 Cash and Cash Equivalents $70,042 $39,720 Restricted Cash 450 1,000 Accounts Receivable 42 38 Accounts Receivable from Servicer/Trustee 213,410 96,464 Accrued Interest Receivable 30,923 20,731 Loans Held for Investment, net (includes $2,807,240 and $2,219,574 pled
Slide 19: 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 and six months ended June 30 is unaudited) Three Months Ended June 30, Six Months Ended June 30, INTEREST INCOME 2019 2018 2019 2018 Interest Income $88,254 $64,693 $164,855
Slide 20: Consolidated Statements of Cash Flows
Six Months Ended, Cash Flows from Operating Activities: June 30, 2019 June 30, 2018 Net Income $60,381 $51,552 Adjustment to Reconcile Net Income to Net Cash Provided by (Used in) Operating Activities: Amortization and Accretion of Premiums, Discounts and Loan Origination Fees, net (7,898) (8,911) A
Slide 21: 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 22: Definitions (cont.)
Definitions (cont.) Debt-to-Equity - Represents (i) total outstanding borrowings under financing arrangements, net, including collateralized loan obligations, secured revolving repurchase agreements, senior secured and secured credit agreements, a term loan facility, and an asset-specific financing
Slide 23: 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 24: Definitions (cont.)
Definitions (cont.) Loan Risk Ratings Based on a 5-point scale, TRTX’s loans are rated “1” through “5,” from least risk to greatest risk, respectively, on a quarterly basis. The loan risk ratings are defined as follows: 1: Outperform—Exceeds performance metrics (for example, technical milestones, oc
Slide 25: 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. Robert Foley Chief Financial & Risk Officer +1 (212) 430-4111 bfoley@tpg.com Investor Relations: +1 (212) 405-8500 IR@tpgrefinance.c