Tpg Re Finance Trust, Inc. · NYSE:TRTX
Tpg Re Finance Trust — Q3 2022 Earnings Presentation
26 slides from Tpg Re Finance Trust's earnings presentation, Nov 1, 2022
Slide 1: Third Quarter 2022 Supplemental Information
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION November 1, 2022 Third Quarter 2022 Supplemental Information Exhibit 99.2
Slide 2: Forward-Looking Statements and Other Disclosures
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION Forward-Looking Statements and Other Disclosures TPG RE Finance Trust, Inc. | 3Q 2022 2 This 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
Slide 3: TRTX By the Numbers
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION 3 TRTX By the Numbers $5.8 billion Total Loan Commitments 1. In addition to credit spread, all-in yield includes the amortization of deferred origination fees, purchase price discount, and accrual of both extension and exit fees. All-in yield for the to
Slide 4: 3Q22 Operating Results
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION 4 3Q22 Operating Results ($ in millions) Net Income (Loss) Attributable to Common Stockholders1 Adjustments Distributable Earnings2 Interest Income $75.5 $ - $75.5 Interest Expense (45.1) - (45.1) Net Interest Income $30.4 - $30.4 Management Fees (5.9)
Slide 5: Common Dividend Coverage
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION 5 Common Dividend Coverage 1. Refer to Appendix for reconciliation from GAAP Net Income (Loss) to Net Income (Loss) Attributable to Common Stockholders 2. Refer to Appendix for reconciliation from GAAP Net Income (Loss) to Distributable Earnings 3. Repr
Slide 6: Liquidity and Leverage
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION 2.36x 2.50x 2.47x 3.13x 2.45x 2.59x 2.56x 3.13x 12/31/2021 3/31/2022 6/30/2022 9/30/2022 Debt-to-Equity Ratio Total Leverage Ratio Liquidity and Leverage Available Liquidity ($ in millions) Leverage Ratios4 1. Cash held to satisfy liquidity covenants un
Slide 7: Portfolio Shift and YTD Portfolio Activity
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION 43.4% 41.9% 28.1% 8.9% 9.1% 7.0% 23.4% 29.5% 44.2% 12.6% 12.2% 11.7% 10.7% 6.4% 4.9% 2.0% 1.0% 0.9% 2.1% 66.4% 67.1% 67.2% Sep 30, 2021 Dec 31, 2021 Sep 30, 2022 7 YTD Portfolio Shift Theme-driven investment approach targeting multifamily and industri
Slide 8: Diversified Loan Portfolio
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION 8 Diversified Loan Portfolio 29% 16% 13% 7% Geography4,5 East 34.0% Midwest 6.4% Southeast 12.6% Southwest 15.6% West 31.4% Portfolio Metrics Total Loan Commitments $5.8B Outstanding Principal Balance $5.3B MSA Concentrations (Top 25 / Top 10)1 70.5% /
Slide 9: Loan Portfolio Walk
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION Loan Portfolio Walk 9TPG RE Finance Trust, Inc. | 3Q 2022 Loan Funding Activity Repayments/Sales Unfunded Loan CommitmentsDeferred Fundings and New Loan Investments2UPBTotal Loan Commitments1 3 44 5 QoQ Increase of 13.2% 1. Loan commitments exclude (1)
Slide 10: Select 3Q22 Investments
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION 10 Select 3Q22 Investments Multifamily Multifamily Hotel $245.0M $72.0M $148.5M San Jose, CA Yonkers, NY Dallas, TX 551-unit, 2-building property with 35k SF of ground floor retail and 950 parking spaces; buildings were completed in 2019 and 2020 18
Slide 11: Risk Ratings
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION Risk Ratings Dispersion of Risk Ratings1 Stable Risk Ratings1 By Amortized Cost 5 TPG RE Finance Trust, Inc. | 3Q 2022 11 3.01 3.14 3.17 3.17 12/31/2021 3/31/2022 6/30/2022 9/30/2022 Start of Period 3.1 3.0 3.1 3.2 Repayments/ Sales 3.3 3.0 2.8 2.6 Orig
Slide 12: CECL Reserve
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION 12 CECL Reserve TPG RE Finance Trust, Inc. | 3Q 2022 $46.2 $51.1 $82.3 $153.3 $11.1 $72.3 $46.2 $51.1 $93.4 $225.6 12/31/2021 3/31/2022 6/30/2022 9/30/2022 General Reserve Specifically Identified Loans QoQ CECL Reserve 85 91 159 265 21 125 85 91 180 390
Slide 13: Loan Financing
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION 25.1% 13.1% 4.7%57.1% Secured Credit Agreements (MTM) Asset-Specific Financing Secured Revolving Credit Facility Collateralized Loan Obligations 13 Loan Financing Financing Metrics Total Financing Capacity $6.3B Outstanding Principal Balance $4.3B Sourc
Slide 14: Positioned for Rising Rates
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION 14 Positioned for Rising Rates ($0.01) $0.01 $0.02 $0.03 $0.07 -$0.01 $0.01 $0.03 $0.05 $0.07 -0.25% 0.0 0% 0.2 5% 0.5 0% 1.0 0% 2.0 0% Portfolio Net Interest Income Sensitivity ($ Impact per Share per Quarter)1 $ .00 Index Rate at September 30, 2022 LI
Slide 15: Interest Rate Floors
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION $2,635M $744M $678M $1,113M $161M 2.20% 3.39% 3.47% 3.69% 3.08% 0.16% 0.88% 1.48% 1.88% 2.23% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% $0 $500 $1,000 $1,500 $2,000 $2,500 0.50% or Less 0.51% to 1.00% 1.01% to 1.50% 1.51% to 2.00% 2.01% or M
Slide 16: Appendix
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION Appendix
Slide 17: TRTX Loan Portfolio
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION TRTX Loan Portfolio 1. Represents TRTX’s potential maximum loan commitment/balance 2. Represents TRTX’s current loan balance and excludes third party pari passu and junior positions in the same capital structure, if any 3. “BR” refers to underlying benc
Slide 18: Per Share Calculations and Reconciliation to Distributable Earnings
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION 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 and Series C Preferred Stock 2. For the three months
Slide 19: Consolidated Balance Sheets
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION All amounts in thousands except share and per share amounts Consolidated Balance Sheets 19TPG RE Finance Trust, Inc. | 3Q 2022 ASSETS September 30, 2022 December 31, 2021 Cash and cash equivalents $236,094 $260,635 Restricted cash 484 404 Accounts recei
Slide 20: Consolidated Statements of Income (Loss) and Comprehensive Income (Loss)
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) All amounts in thousands except share and per share amounts Three Months Ended September 30, 2022 2021 Interest income and interest expense Interest income $75,497 $ 59,984 Interes
Slide 21: Consolidated Statements of Cash Flows
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION Consolidated Statements of Cash Flows All amounts in thousands Nine Months Ended Cash flows from operating activities: September 30, 2022 September 30, 2021 Net (loss) income ($96,260) $93,672 Adjustment to reconcile net (loss) income to net cash flows
Slide 22: Definitions
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION Definitions Distributable Earnings is a non-GAAP measure defined 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 los
Slide 23: Definitions (cont.)
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION Definitions (cont.) Fundings to borrowers that are made under existing loan commitments after a loan closing dateDeferred Fundings Geographic Diversity TRTX divides the South region into separate Southeast and Southwest regions using definitions est
Slide 24: Definitions (cont.)
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION Definitions (cont.) 24TPG RE Finance Trust, Inc. | 3Q 2022 Bridge 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 col
Slide 25: Definitions (cont.)
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION Definitions (cont.) 25TPG RE Finance Trust, Inc. | 3Q 2022 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 collate
Slide 26: Company Information
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION 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 Brandon Fox Chief