Tpg Re Finance Trust, Inc. · NYSE:TRTX
Tpg Re Finance Trust — Q4 2019 Earnings Presentation
25 slides from Tpg Re Finance Trust's earnings presentation, Feb 19, 2020
Slide 1: Fourth Quarter and Full Year 2019 Supplemental Information
February 18, 2020 Fourth Quarter and Full Year 2019 Supplemental Information 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: Fourth Quarter 2019 Highlights
Fourth Quarter 2019 Highlights 4Q 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. GAAP net income defined as GAAP net income attributable to comm
Slide 4: Loan Portfolio Highlights
Loan Portfolio Highlights Loan Investment Activity Loan Investment Portfolio 1. See Appendix for definitions, including definitions of LTV, Loan Risk Rating, and Asset-Level Estimated Return on Equity (“ALEROE”) 2. Inclusive of one non-consolidated senior interest (NCSI) of $132.0 million with an in
Slide 5: Operating Performance Highlights
Operating Performance Highlights YoY Financial Performance Performance Metric Year ended 12/31/19 Year ended 12/31/18 YoY Change GAAP net income attributable to common stockholders $125.6 million ($1.73 / share) $106.7 million ($1.70 / share) 17.7% (1.8%) Core Earnings(1) $128.2 million ($1.76 / sha
Slide 6: Operating Performance
$0.43 $0.43 $0.43 Operating Performance 4Q19 GAAP net income of $32.9 million Declared a cash dividend of $0.43 per common share in December 2019, representing an 8.7% annualized dividend yield on book value per common share of $19.782 1. See Appendix for Core Earnings definition and reconciliation
Slide 7: National, Major Market Footprint
National, Major Market Footprint2 Lending Focused in Top 25 Markets1 Top 25 Markets Account for 84.0% 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 8: Diversified Loan Portfolio
Diversified Loan Portfolio Loan commitments and UPB increased to $5.6 billion, or 13.8% YoY, and $5.0 billion, or 15.9% YoY, respectively Office and Multifamily are largest exposures at 52.0% and 19.6%, respectively, of total loan commitments Weighted average loan portfolio risk rating of 2.9 as of
Slide 9: Loan Originations
Loan Originations 4Q19 Investment Highlights Closed 7 first mortgage loans Total commitments of $653.7 million Initial fundings of $561.1 million Average loan size of $93.4 million2 100% Floating Rate Weighted average interest rate of LIBOR plus 2.90% Weighted average LTV of 61.7%3 Asset-Level Estim
Slide 10: Select 4Q 2019 Loan Originations
Office Office Office $190.1M $75.8M $101.0M San Diego, CA San Mateo, CA Rosslyn, VA Two Class B office buildings (752K SF), and 580-stall parking structure with 15K SF of service retail 206K SF Class B, five building office complex 317K SF Class B+ office building Refinance and complete lease-up of
Slide 11: Loan Funding Activity through December 31, 2019
Loan Funding Activity through December 31, 2019 1. New loan originations include initial loan funding amounts at the transaction close date. All subsequent loan fundings are included in Deferred Fundings 2. Total loan commitments and unfunded loan commitments for the three months ended June 30, 2019
Slide 12: Loan Portfolio Financing
Secured Credit Agreement2 1 Lender Loan Portfolio Financing 1. Total Loan Portfolio Financing Capacity and Financing Utilization relates only to the financing of the Company’s loan investments. Excludes items related to CMBS and CRE CLO investments. Totals may not sum due to rounding. Proforma Loan
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. Excludes near term liquidity includin
Slide 14: Interest Rate Sensitivity
Interest Rate Sensitivity 100% floating rate loan portfolio that benefits from contractual interest rate floors with a weighted average strike LIBOR rate of 1.63% portfolio-wide Net floating rate mortgage loan exposure of $1.3 billion generates an annualized increase in net interest income of approx
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 Year Ended Three Months Ended (unaudited) Dec 31, 2019 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Net Income Attributable to Common Stockholders1 $125,622 $32,618 $32,909 $31
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 $350.8 $316.1 L+ 2.9% 4.7 years New York, NY Office $692 Sq. ft. 72.8% Loan 2 $223.0 $167.8 L+ 3.4% 4.6 years Atlanta, GA Office $21
Slide 18: Consolidated Balance Sheets
All amounts in thousands except share and per share amounts ASSETS December 31, 2019 December 31, 2018 Cash and Cash Equivalents $79,182 $39,720 Restricted Cash 484 1,000 Accounts Receivable 2,344 38 Accounts Receivable from Servicer/Trustee 13,741 96,464 Accrued Interest Receivable 28,107 20,731 Lo
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 months ended December 31 is unaudited) Three Months Ended Dec 31, Year Ended Dec 31, INTEREST INCOME 2019 2018 2019 2018 Interest Income $82,597 $71,673 $339,814 $265,594 Int
Slide 20: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows All amounts in thousands Cash Flows from Operating Activities: Dec 31, 2019 Dec 31, 2018 Net Income $126,313 $106,941 Adjustment to Reconcile Net Income to Net Cash Provided by Operating Activities: Amortization and Accretion of Premiums, Discounts and Loan Orig
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.) Loan Risk Ratings
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. 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