Tpg Re Finance Trust, Inc. · NYSE:TRTX
Tpg Re Finance Trust — Q3 2021 Earnings Presentation
29 slides from Tpg Re Finance Trust's earnings presentation, Nov 2, 2021
Slide 1: Third Quarter 2021 Supplemental Information
November 2, 2021 Third 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: 3Q 2021 Highlights
3Q 2021 Highlights Earnings Loan Portfolio Liquidity & Capitalization 1. Calculated on Net Income (Loss) Attributable to Common Stockholders; refer to Appendix for reconciliation from GAAP Net Income (Loss) to Net Income (Loss) Attributable to Common Stockholders 2. Refer to Appendix for reconciliat
Slide 4: Loan Portfolio
1. See Appendix for definitions including LTV and Life Science Note: As of September 30, 2021 loan portfolio data includes one loan classified as held for sale with a carrying value of $86.6 million Property Type % of Loan Portfolio, by Commitment Loan Maturities as of 9/30/21 by Commitment ($ in mi
Slide 5: Operating Performance and Dividend Coverage
5 Operating Performance and Dividend Coverage Ratio of Distributable Earnings2 to Common Dividend Nine Months Ended September 30, 2021 1. Refer to Appendix for reconciliation from GAAP Net Income (Loss) to Net Income (Loss) Attributable to Common Stockholders 2. Refer to Appendix for reconciliation
Slide 6: Liquidity and Leverage
Liquidity and Leverage Available Liquidity Leverage Ratio2 1. Cash held to satisfy the liquidity covenant under the secured credit agreements 2. See Appendix for definitions of Debt-to-Equity and Total Leverage Note: Totals may not sum due to rounding 12/31/2020 6 TPG RE Finance Trust, Inc.| 3Q2021
Slide 7: Book Value Walk
Book Value Walk 1. Does not reflect dilutive impact of 12M warrants held by an affiliate of Starwood Capital Group; book value per share reflecting pro forma dilution resulting from an assumed exercise of these warrants at September 30, 2021 is $15.21 Note: Totals may not sum due to rounding CECL Re
Slide 8: Diversified Loan Portfolio
Top 25 Markets Account for 85.7% of Total Loan Commitments Diversified Loan Portfolio 1. Top 25 markets determined by US Census. Portfolio loans with collateral properties that are located in different MSAs are classified in the market designation with over 50% of underlying loan collateral by unpai
Slide 9: Multifamily and Office Loan Overview
Multifamily and Office Loan Overview Office 52.3%1 of the Company’s total commitments at September 30, 2021 96.3% in Top 25 US MSAs / 64.8% in Top 10 65.7% Weighted Average LTV2 $106.9M Average Loan Size 100% Interest Collections in 3Q21 Multifamily 1. 8.9% of which is Life Science related; see Appe
Slide 10: YTD Loan Activity
10 YTD Loan Activity 24% of total loan portfolio was originated after September 30, 2020 Closed 17 first mortgage loans with total commitments of $1,280.7 million and initial fundings of $1,068.1 million YTD Loan Funding Activity ($ in millions) 1. UPB includes accrued PIK interest of: $4.7 million
Slide 11: 3Q21 Loan Originations
11 3Q21 Loan Originations 3Q21 Investment Highlights1 7 first mortgage loans Total commitments of $482.9 million Initial fundings of $433.6 million Average loan size of $69.0 million 100% floating rate Weighted average interest rate of L + 3.53% Weighted average LIBOR floor of 15 bps Weighted Averag
Slide 12: Select 3Q21 Loan Originations
12 Select 3Q21 Loan Originations Commitment Location Collateral Borrower Business Plan LTV / In-Place Debt Yield1,2 Loan Category1 Property Photos Investment Date 1. See Appendix for definitions, including LTV, Loan Category and Life Science 2. In-place debt yield for loans originated during 3Q21 is
Slide 13: Risk Ratings
Risk Ratings 1. See Appendix for a description of the Company’s Loan Risk Rating scale 2. Includes a single sponsor relationship with common control of 4 loans with total amortized cost of $23.0 million 3. Includes conversion of one first mortgage loan to Real Estate Owned with an amortized cost of
Slide 14: Loan Performance
Loan Performance PIK Interest TTM ($ in millions) 1. Loan defaulted in 4Q20 2. Based on Portfolio UPB at September 30, 2021 3. See Appendix for descriptions of Economic and Non-Economic Modifications 4. Includes the write-off of outstanding PIK interest associated with the sale of one hotel loan Not
Slide 15: 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 3% of our financing 3. Represents capacity available to be borrowed provided we pledge, and the lender approves, additional collateral assets 4. Based on ex
Slide 16: Capital Structure Overview
Capital Structure Overview $50.0 (1%) $2,762.5 (53%) $847.3 (17%) $194.4 (4%) $1,251.0 (24%) Series C Preferred Stock Mortgage Loan Payable Collateralized Loan Obligations Secured Credit Agreements (MTM) Common Equity at Book Value Capital Stack Composition Capital Structure Detail ($ in millions) 1
Slide 17: Interest Rate Sensitivity
17 Interest Rate Sensitivity 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 1.33%) 77% of the loan portfolio is subject to a LIBOR floor of 0.50% or greater Only 3% of loa
Slide 18: Subsequent Events
18 Subsequent Events Closed or are in the process of closing eight first mortgage loans with commitments totaling $539.2 million and initial fundings of $465.3 million Received repayments in full of $257.1 million relating to two mixed-use loans and one multifamily loan Closed the sale of a performi
Slide 19: Appendix
Appendix
Slide 20: TRTX Loan Portfolio
20 TRTX Loan Portfolio Note: As of September 30, 2021 loan portfolio data includes loans held for investment and one loan classified as held for sale with a carrying value of $86.6 million 1. Represents TRTX’s potential maximum loan commitment/balance 2. Represents TRTX’s current loan balance and ex
Slide 21: Per Share Calculations and Reconciliation of Distributable Earnings
21 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, Series C Preferred Stock, and Series B Preferred Stock shares outstanding for the three months e
Slide 22: Consolidated Balance Sheets
All amounts in thousands except share and per share amounts 22 Consolidated Balance Sheets TPG RE Finance Trust, Inc.| 3Q2021
Slide 23: Consolidated Statements of Income and Comprehensive Income
23 Consolidated Statements of Income and Comprehensive Income All amounts in thousands except share and per share amounts (unaudited) TPG RE Finance Trust, Inc.| 3Q2021
Slide 24: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows All amounts in thousands Nine Months Ended (Unaudited) TPG RE Finance Trust, Inc.| 3Q2021 24
Slide 25: Definitions
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, regardless of whether such items are included in other comprehensive income or loss, or in GAAP net income (loss), and exc
Slide 26: Definitions (cont.)
Definitions (cont.) Fundings to borrowers that are made under existing loan commitments after loan closing date Deferred Fundings Geographic Diversity TRTX provides herein additional detail by splitting the South region into separate Southeast and Southwest regions using definitions established by T
Slide 27: Definitions (cont.)
Definitions (cont.) 27 TPG RE Finance Trust, Inc.| 3Q2021 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 relat
Slide 28: Definitions (cont.)
Definitions (cont.) 28 TPG RE Finance Trust, Inc.| 3Q2021 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 property’s total value. In certain instances,
Slide 29: Company Information
Company Information TPG RE Finance Trust, Inc. is a commercial real estate finance company that originates, acquires, and manages primarily first mortgage loans secured by institutional properties located in primary and select secondary markets in the United States. The Company is externally managed