Tpg Re Finance Trust, Inc. · NYSE:TRTX
Tpg Re Finance Trust — FY2020 Earnings Presentation
25 slides from Tpg Re Finance Trust's earnings presentation, Feb 24, 2021
Slide 1: Fourth Quarter and Full Year 2020 Supplemental Information
February 24, 2021 Fourth Quarter and Full Year 2020 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: 4Q 2020 Earnings, Loan Portfolio, Liquidity & Capitalization
4Q 2020 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 2016-13”, o
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 3. Includes one land loan with a commitment amount of $112.0 million converted to REO at December 31, 2020 Note: Totals may not sum due to rounding
Slide 5: 2Q20 - 4Q20 Operating Performance and Dividend Coverage
2Q20 - 4Q20 Operating Performance and Dividend Coverage Operating Performance 1. See Appendix for definitions Common Dividend Special Dividend Operating Performance¹ ($ in millions) 2Q20 3Q20 4Q20 Total Net Income Attributable to Common Stockholders $40.1 $30.8 $6.6 $77.5 Distributable Earnings $17.
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 facilities, s
Slide 7: Book Value Walk 4Q 2020
Book Value Walk 4Q 2020 $16.71 $16.50 1. Does not reflect dilutive impact of 12M warrants held by an affiliate of Starwood Capital Group 2. Realization of loss upon conversion to Real Estate Owned 3. Equals CECL reserve of $62.8M divided by loan commitments of $4.9B, both as of December 31, 2020 Not
Slide 8: National, Major Market Footprint
National, Major Market Footprint2 Lending Focused in Top 25 Markets1 Top 25 Markets Account for 87.7% 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: Property Diversity by Region
Property Diversity by Region Exposure as % of Loan Portfolio1 Region Commitment (in Millions) Office Multifamily Hotel Mixed-Use East $2,050.9 25.9% 4.3% 5.0% 5.8% Midwest $428.4 5.5% 3.2% - - Southeast $678.3 6.6% 4.2% 3.0% - Southwest $657.0 3.9% 4.6% 1.5% 3.2% West $1,128.9 13.9% - 5.5% 2.8% Tota
Slide 10: Multifamily and Office Loan Overview
Multifamily and Office Loan Overview Office¹ 65.4% Weighted Average LTV3 96.2% in Top 25 US MSAs 0% Construction Loans $106.0M Average Loan Size Multifamily² 75.1% Weighted Average LTV3 79.0% in Top 25 US MSAs 0% Construction Loans $80.5M Average Loan Size 1. At December 31, 2020 represented 55.7% o
Slide 11: 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 12: Loan Modifications and Payment Performance
Loan Modifications at 12/31/201 4Q Interest Collections Economic 10% Non-Economic 2% 96.7% interest collections during Q42, including PIK of 1.7% Economic modifications typically consist of repurposing of reserves, equity contributions, and/or deferred PIK interest agreements Non-economic modificati
Slide 13: Loan Financing Overview
Loan Financing Overview 1. Includes one non-consolidated senior interest of $132.0 million 2. Omits the impact of LIBOR floors on approximately 12% of our financing 3. See Appendix for definition of Loan Portfolio Leverage 4. Based on extended maturity dates where ability to extend is at Company’s o
Slide 14: Capital Structure Overview
Capital Structure Overview $50.0 (1%) $1,834.8 (38%) $1,522.9 (31%) $199.6 (4%) $1,266.9 (26%) Series B Preferred Stock Mortgage Loan Payable Collateralized Loan Obligations Secured Credit Agreements Common Equity at Book Value ($ in millions) Maximum Capacity W.A. Approved Advance Rate Look-Through
Slide 15: Interest Rate Sensitivity
Interest Rate Sensitivity LIBOR $ Impact per Share per Quarter2 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 loans1 ; weighted average LIBOR floor of 1.66% 100% of the loan portfolio is subject to a LIBOR flo
Slide 16: Appendix
Appendix
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 $300.8 $283.6 L+ 1.6% 3.7 years New York, NY Office $594 Sq. ft. 65.2% Loan 2 $223.0 $171.3 L+ 3.4% 3.6 years Brookhaven (Atlanta),
Slide 18: Per Share Calculations / Distributable Earnings Reconciliation
Per Share Calculations Per Share Calculations / Distributable Earnings Reconciliation Earnings and Dividends per Common Share Year Ended Three Months Ended (unaudited) Dec 31, 2020 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Net Income (Loss) Attributable to Common Stockholders1 ($155,532) $
Slide 19: Consolidated Balance Sheets
ASSETS December 31, 2020 December 31, 2019 Cash and Cash Equivalents $319,669 $79,182 Restricted Cash — 484 Accounts Receivable 785 2,344 Accounts Receivable from Servicer/Trustee 592 13,741 Accrued Interest and Fees Receivable 27,391 28,107 Loans Held for Investment 4,516,400 4,980,389 Allowance fo
Slide 20: 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 December 31 is unaudited) Three Months Ended Dec 31, Year Ended Dec 31, INTEREST INCOME 2020 2019 2020 2019 Interest Income 62,018 $82,597 283,672 $339,814 Inter
Slide 21: 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 22: Definitions (cont.)
Definitions (cont.) Debt-to-Equity - Represents (i) total outstanding borrowings under financing arrangements, net, including collateralized loan obligations, secured credit facilities, secured revolving credit facilities, a term loan facility, and asset-specific financing agreements less cash, to (
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 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 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. Bob Foley Chief Financial Officer +1 (212) 430-4111 bfoley@tpg.com Investor Relations: +1 (212) 405-8500 IR@tpgrefinance.com Media C