Tpg Re Finance Trust, Inc. · NYSE:TRTX
Tpg Re Finance Trust — Q2 2018 Earnings Presentation
23 slides from Tpg Re Finance Trust's earnings presentation, Aug 6, 2018
Slide 1: Second Quarter 2018 Operating Results
August 6, 2018 Second Quarter 2018 Operating Results 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: Highlights: Loan Portfolio and Investment Activity
Highlights Loan Investment Activity Loan Portfolio $4.3 billion, diversified loan portfolio comprised of 60 first mortgage loans and 1 mezzanine loan1 99.6% first mortgage loan commitments 99.9% floating rate mortgage loans 80.9% concentration in the Top 25 MSAs in the United States; 65.5% concentra
Slide 4: Highlights: Leverage, Financing and Liquidity
Highlights Loan portfolio leverage of 75.2%, with loan portfolio weighted average cost of funds of LIBOR plus 1.95%, a decline of 9 basis points from the quarter ended March 31, 2018, primarily due to the repayment of construction loan note-on-note financing arrangements and improved terms on secure
Slide 5: Operating Performance
$0.38 $0.42 $0.43 Operating Performance GAAP net income of $26.4 million, or $0.44 per diluted common share, and Core Earnings of $26.6 million, or $0.44 per diluted common share, compared to GAAP net income of $25.1 million, or $0.42 per diluted common share, and Core Earnings of $25.3 million, or
Slide 6: Diversified Loan Portfolio
Geographic Diversity2 Diversified Loan Portfolio National, Major Market Footprint Property Diversity2 Lending Focused in Top 25 Markets1 Fixed vs. Floating2 Loan Category 1. Top 25 markets determined by US Census. 2. By total loan commitment at June 30, 2018. 3. Reflects total loan commitments for t
Slide 7: Diversified Loan Portfolio
Diversified Loan Portfolio 1. See Appendix for a description of the Company’s risk rating scale and definition of Loan Category and Property Type. 2. By total loan commitment. 3. By loan carrying value. Note: Totals may not sum due to rounding. Year-to-Date Growth by Loan and Property Type 100% Perf
Slide 8: Loan Originations: 2Q18 Investment Highlights
Loan Originations 2Q18 Investment Highlights Closed 7 first mortgage loans Total commitments of $609.4 million Average loan size of $87.1 million1 100% Floating Rate Weighted average interest rate of LIBOR plus 3.08% Weighted average LTV of 72.2%2 Property types: Office (94.6%) Retail (5.4%) Stable
Slide 9: Select 2Q 2018 Loan Originations
Investment: Office Office Office $190.0M $149.0M $50.0M Philadelphia, PA San Diego, CA Atlanta, GA 1,071,154 NSF of office 314,135 NSF of office 420,050 NSF of office Refinance Lease-up and stabilization Refinance Lease-up and stabilization Refinance Lease-up and stabilization 73.6% / 7.7% 71.4% / 5
Slide 10: Loan Funding Activity through June 30, 2018
Loan Funding Activity through June 30, 2018 Strong portfolio growth spurred by $609.4 million of new loan commitments with an $87.1 million average loan size Loan UPB increased $627.7 million to $3.8 billion, an increase of 19.6% from December 31, 2017 2Q18 loan repayments of $414.6 million, includi
Slide 11: Loan Portfolio Financing as of June 30, 2018
Loan Portfolio Financing as of June 30, 2018 1. Total Loan Portfolio Financing Commitments and Financing Utilization relates only to the financing of the Company’s loan investments. Includes Non-Consolidated Senior Interests of $44.0 million at June 30, 2018. Note: Excludes items related to CMBS inv
Slide 12: Capital Deployment
Capital Deployment Sustained Capital Deployment Provides for 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. Does not take into account ne
Slide 13: Interest Rate Sensitivity
Interest Rate Sensitivity 99.9% floating rate (by total commitment) loan portfolio well positioned in a rising interest rate environment1 Net floating rate mortgage loan exposure of $1.0 billion generates an annualized increase in net interest income of approximately $4.8 million for every 50 basis
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 (unaudited) Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Net Income Attributable to Common Stockholders1 $26,438 $25,111 $24,754 $20,787 Weighted-Average Num
Slide 16: 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 $190.0 $177.0 L + 2.7% 5.0 years Philadelphia, PA Office $177 Sq. ft. 73.6% Loan 2 188.0 142.0 L + 4.1% 3.3 years Nashville, TN Mixe
Slide 17: Consolidated Balance Sheets
ASSETS June 30, 2018 December 31, 2017 Cash and Cash Equivalents $42,494 $75,037 Restricted Cash 845 700 Accounts Receivable 37 141 Accounts Receivable from Servicer/Trustee 36,738 220 Accrued Interest Receivable 18,163 16,861 Loans Held for Investment (includes $2,591,171 and $2,694,106 pledged as
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 June 30, Six Months Ended June 30, INTEREST INCOME 2018 2017 2018 2017 Interest Income $64,693 $51,736 $124,058 $99,677 Interest Expense (30,154) (19,
Slide 19: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows All amounts in thousands (unaudited) Six Months Ended, June 30, 2018 June 30, 2017 Cash Flows from Operating Activities: Net Income $51,552 $48,803 Adjustment to Reconcile Net Income to Net Cash Provided by Operating Activities: Amortization and Accretion of Pre
Slide 20: 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 21: 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 22: 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 23: Company Information
Company Information Contact Information Headquarters: 888 Seventh Avenue 35th Floor New York, NY 10106 Investor Relations: (212) 405-8500 IR@tpgrefinance.com Media Contact: TPG RE Finance Trust Courtney Power (415) 743-1550 media@tpg.com New York Stock Exchange: Symbol: TRTX Analyst Coverage Bank of