Tpg Re Finance Trust, Inc. · NYSE:TRTX
Tpg Re Finance Trust — Q2 2021 Earnings Presentation
28 slides from Tpg Re Finance Trust's earnings presentation, Aug 3, 2021
Slide 1: Second Quarter 2021 Supplemental Information
August 3, 2021 Second 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: 2Q 2021 Highlights
2Q 2021 Highlights Earnings Loan Portfolio Liquidity & Capitalization 1. Calculated on Net Income (Loss) Attributable to Common Stockholders; please refer to Appendix for reconciliation from GAAP Net Income (Loss) to Net Income (Loss) Attributable to Common Stockholders 2. Please refer to Appendix f
Slide 4: Loan Portfolio
1. See Appendix for definitions including LTV Note: Totals may not sum due to rounding Loan Investment Portfolio1 ($ in millions) As of June 30, 2021 As of March 31, 2021 QoQ Change Total Loan Commitments $5,318.3 $4,983.7 6.7% Loan Repayments and Sales $394.7 $5.3 7,347.2% Unpaid Principal Balance
Slide 5: Operating Performance and Dividend Coverage
$0.40 Operating Performance and Dividend Coverage Operating Performance 1. See Appendix for definitions 2. Please refer to Appendix for reconciliation from GAAP Net Income (Loss) to Distributable Earnings 3. Calculated on Net Income (Loss) Attributable to Common Stockholders Operating Performance¹ (
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 2Q 2021
Book Value Walk 2Q 2021 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 warrants at June 30, 2021 is $15.00 (please refer to pg 16 for additional detail) Note:
Slide 8: National, Major Market Footprint
National, Major Market Footprint2 Lending Focused in Top 25 Markets1 Top 25 Markets Account for 85.7% of Total Loan Commitments Loan Category Geographic Diversity Diversified Loan Portfolio Property Diversity2,3 1. Top 25 markets determined by US Census. Portfolio loans with collateral properties th
Slide 9: Multifamily and Office Loan Overview
Multifamily and Office Loan Overview Office Office loans represent 52.8% of the Company’s total commitments at June 30, 2021 16.8% of Office Portfolio is Life Science Related1 96.3% in Top 25 US MSAs / 65.1% in Top 10 65.8% Weighted Average LTV1 $108.2M Average Loan Size 100% Interest Collections in
Slide 10: Loan Originations
Loan Originations 2Q21 Investment Highlights1 Closed 9 first mortgage loans Total commitments of $752.5M Initial fundings of $597.0M Average loan size of $83.6M 100% floating rate Weighted average interest rate of L + 3.48% Weighted average LIBOR floor of 22 bps Weighted Average LTV of 67.3% 77.5% o
Slide 11: Select 2Q21 Loan Originations
Select 2Q21 Loan Originations Multifamily Office (Life Science) Multifamily $47.0M $215.0M $122.5M St. Petersburg, FL Bay Area, CA Towson, MD 211-unit multifamily building, 280-space covered parking garage and 7,500 SF of retail 384K SF, 9-story Class A office building and adjacent parking structure
Slide 12: 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 $23.0 million 3. Includes an amendment and assumption of existing office loan;
Slide 13: 2Q21 Interest Collections
2Q21 Interest Collections Loan Performance PIK Interest TTM ($ in Thousands) 99.3% interest collections during 2Q21, including PIK interest of 1.1% 1. Loan defaulted in 4Q20 2. Based on Portfolio UPB at June 30, 2021 3. See Appendix for definitions of Economic and Non-Economic Modifications 4. Inclu
Slide 14: Loan Financing Overview
Loan Financing Overview 1. Omits the impact of LIBOR floors on approximately 6% of our financing 2. Based on extended maturity dates where ability to extend is at Company’s option 3. Reflects the extension in August 2021 of our $250 million secured credit facility with Goldman Sachs from August 19,
Slide 15: Capital Structure Overview
Capital Structure Overview $50.0 (1%) $2,835.9 (55%) $694.1 (13%) $194.4 (4%) $1,242.8 (24%) Series C Preferred Stock Mortgage Loan Payable Collateralized Loan Obligations Secured Credit Agreements (MTM) Common Equity at Book Value ($ in millions) Maximum Capacity Maximum Capacity Maximum Capacity W
Slide 16: Overview of Preferred Stock Issuance and Redemption
Overview of Preferred Stock Issuance and Redemption Issuer TPG RE Finance Trust Inc. (“TRTX” or the “Company”) Security Series C Cumulative Redeemable Preferred Stock (“Series C Preferred”) Offering Size $201.25 million, including 15% overallotment option exercised by underwriters Liquidation Prefer
Slide 17: 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 1.44% 84% of the loan portfolio is subject to a LIBOR floor
Slide 18: Appendix
Appendix
Slide 19: 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 $290.2 L+ 1.6% 3.2 years New York, NY Office $594 Sq. ft. 65.2% Loan 2 $223.0 $173.0 L+ 3.4% 3.1 years Brookhaven (Atlanta),
Slide 20: Per Share Calculations
Per Share Calculations Reconciliation of Net Income Attributable to Common Stockholders and Distributable Earnings Three Months Ended (unaudited) June 30, 2021 March 31, 2021 Net Income (Loss) $32,391 $31,955 Preferred Stock Dividends1 (6,799) (6,124) Participating Securities' Share in Earnings (Los
Slide 21: Consolidated Balance Sheets
ASSETS June 30, 2021 December 31, 2020 Cash and Cash Equivalents $239,743 $319,669 Restricted Cash 828 — Accounts Receivable 755 785 Collateralized Loan Proceeds Held at Trustee 53,832 174 Accounts Receivable from Servicer/Trustee 2,439 418 Accrued Interest and Fees Receivable 29,461 27,391 Loans He
Slide 22: Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income and Comprehensive Income All amounts in thousands except share and per share amounts (unaudited) Three Months Ended June 30, INTEREST INCOME 2021 2020 Interest Income $61,915 $70,051 Interest Expense (22,017) (25,865) Net Interest Income 39,898 44,186 OTHER REVENUE
Slide 23: Cash Flows from Operating Activities
Cash Flows from Operating Activities: June 30, 2021 June 30, 2020 Net Income (Loss) $64,347 ($189,862) Adjustment to Reconcile Net Income to Net Cash Provided by Operating Activities: Amortization and Accretion of Premiums, Discounts and Loan Origination Fees, net (3,775) (5,627) Amortization of Def
Slide 24: 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 investment and operating activities. Distributable Earnings is a non-GAAP measure, which we define as
Slide 25: 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 26: Definitions (cont.)
Definitions (cont.) TPG RE Finance Trust, Inc.| 2Q2021 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
Slide 27: Definitions (cont.)
Definitions (cont.) TPG RE Finance Trust, Inc.| 2Q2021 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, TRT
Slide 28: 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