Tpg Re Finance Trust, Inc. · NYSE:TRTX
Tpg Re Finance Trust — Q3 2017 Earnings Presentation
22 slides from Tpg Re Finance Trust's earnings presentation, Nov 6, 2017
Slide 1: Third Quarter 2017 Operating Results
November 6, 2017 Third Quarter 2017 Operating Results Exhibit 99.2
Slide 2: TPG RE Finance Trust Announces Third Quarter 2017 Results
TPG RE Finance Trust Announces Third Quarter 2017 Results ABOUT TRTX TPG RE Finance Trust, Inc. (NYSE:TRTX) (the “Company” or “TRTX”) is a commercial real estate finance company, operating as a real estate investment trust (“REIT”), that focuses primarily on directly originating, acquiring, and mana
Slide 3: Third Quarter 2017 Highlights
Third Quarter 2017 Highlights Loan portfolio leverage of 61.9%, with loan portfolio weighted average cost of funds of LIBOR plus 2.49%, a decline of 9 basis points from the quarter ended June 30, 2017 Raised approximately $212.3 million of net proceeds in July 2017 IPO via sale of 11.65 million shar
Slide 4: Operating Performance
Operating Performance GAAP net income and Core Earnings1 of $20.8 million, or $0.35 per diluted common share, for the quarter ended September 30, 2017 Net interest income increased to $27.6 million, up $4.1 million, or 17.5%, from the three months ended September 30, 2016, partially resulting from l
Slide 5: Book Value per Common Share
Book Value per Common Share TRTX Equity Issuances and GAAP Net Income Drive Book Value per Common Share 1. Includes total outstanding common and Class A common stock on an actual basis as of June 30, 2017 2. Stock dividend declared in connection with IPO to reduce book value per common share from $2
Slide 6: Loan Portfolio Activity & Equity Issuances Impact Operating Results
Loan Portfolio Activity & Equity Issuances Impact Operating Results Post-IPO Operating Results Per Share Amount GAAP Net Income and Core Earnings - 2Q17 (adjusted to reflect the impact of our IPO related stock dividend effective July 25, 2017) $0.52 IPO Common Stock Issuance, Net of 10b5-1 Plan Repu
Slide 7: Diversified Loan Portfolio: Geographic Diversity
Geographic Diversity2 Loan Portfolio: $3.4 billion Loan Type: First Mortgage 97.8% | Mezzanine 2.2% Weighted Average Credit Spread: LIBOR plus 4.9% Weighted Average LTV: 59.2% Property Diversity: No property type > 22.4% Diversified Loan Portfolio National, Major Market Footprint Property Diversity2
Slide 8: Q3 2017 Investment Highlights: Loan Originations
108.9% Growth Loan Originations Q3 2017 Investment Highlights Increased Loan Originations3 Closed 7 first mortgage loans Total commitment of $775.2 million Average loan size of $110.7 million 100% Floating Rate Weighted average credit spread of LIBOR plus 4.2% Weighted average LTV of 62.9% Diversifi
Slide 9: Select 3Q17 Loan Originations
Select 3Q17 Loan Originations 1. See Appendix for definition of LTV and the Mixed-Use property type Note: Select 3Q17 Loan Originations represent 50.7% of total loan originations during 3Q17 based on total commitments. See slide 8 for Loan Origination data for 3Q17 Investment: Mixed-Use1 Office Mult
Slide 10: Loan Funding Activity Through September 30, 2017
Loan Funding Activity Through September 30, 2017 Loan Funding Activity Strong origination momentum spurred by $1.5 billion of new loan commitments Accelerating pace of originations driven by 108.9% year-over-year increase in average loan size $3,040.2 $3,423.6 $3,203.2 $2,716.2 1. Deferred fundings
Slide 11: Financing Facilities as of September 30, 2017
Financing Facilities as of September 30, 2017 Total commitments of $3.3 billion1 at a weighted average cost of funds of LIBOR plus 2.49% for the loan portfolio Added $216.6 million of net financing capacity, including $503.5 million from upsizes to our Morgan Stanley and JP Morgan secured revolving
Slide 12: Capitalization as of September 30, 2017
Capitalization as of September 30, 2017 Current Leverage Ratio and Available Liquidity to Drive Loan Portfolio Growth 1. See Appendix for definitions of Leverage calculation, Debt-to-Equity and Total Leverage 2. Does not take into account mortgage loan repayments which may be used for new loan origi
Slide 13: Interest Rate Sensitivity
Interest Rate Sensitivity 99.0% floating rate (by total commitment) loan portfolio well positioned in a rising interest rate environment1 Net floating rate mortgage loan exposure of $1 billion generates an annualized increase of $3.8 million to Net Interest Income for every 50 basis point increase i
Slide 14: Appendix
Appendix
Slide 15: Per Share Calculations / Core Earnings Reconciliation
Per Share Calculations Per Share Calculations / Core Earnings Reconciliation Earnings and Dividends per Common Share Three Months Ended Sept 30, 2017 June 30, 2017 March 31, 2017 Dec 31, 2016 Net Income Attributable to Common Stockholders1 $20,787 $25,320 $23,475 $19,155 Weighted-Average Number of C
Slide 16: TRTX Loan Portfolio
TRTX Loan Portfolio Loan Name TRTX Loan Commitment1 TRTX Loan Balance2 Credit Spread Extended Maturity Location Property Type Loan Value Per Sq. ft. / Unit LTV3 Loan 1 $188.0 $142.0 L +4.1% 4.3 years Nashville, TN Mixed-Use3 $292 Sq. ft. 60.7% Loan 2 173.3 143.8 L +4.3% 4.5 years Philadelphia, PA Of
Slide 17: Consolidated Balance Sheets
Consolidated Balance Sheets All amounts in thousands except share and per share amounts (unaudited) ASSETS September 30, 2017 December 31, 2016 Cash and Cash Equivalents $64,801 $103,126 Restricted Cash 499 849 Accounts Receivable 141 644 Accounts Receivable from Servicer/Trustee 51,076 34,743 Accru
Slide 18: 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 Sept. 30, Nine Months Ended Sept. 30, INTEREST INCOME 2017 2016 2017 2016 Interest Income $46,734 $40,419 $146,411 $112,551 Interest Expense (19,150)
Slide 19: 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 20: Definitions (cont.)
Definitions (cont.) Debt-to-Equity - Represents (i) total outstanding borrowings under secured debt agreements (collateralized loan obligation, net), secured financing/repurchase agreements (net) and notes payable (net), less cash, to (ii) total stockholders’ equity, at period end Total Leverage - R
Slide 21: Definitions (cont.)
Definitions (cont.) In connection with any origination or co‐origination of a mezzanine loan by TRTX, the senior mortgage loan that is contemporaneously issued by the borrower to a senior mortgage lender or that is transferred by TRTX to the co‐originating senior mortgage lender. In either case, the
Slide 22: Company Information
Company Information Contact Information Headquarters: 888 Seventh Avenue 35th Floor New York, NY 10106 Investor Relations: (212) 405-8500 IR@tpgrefinance.com New York Stock Exchange: Symbol: TRTX Analyst Coverage Bank of America Merrill Lynch Kenneth Bruce (415) 676-3545 Deutsche Bank George Bahamon