Tpg Re Finance Trust, Inc. · NYSE:TRTX
Tpg Re Finance Trust — FY2022 Earnings Presentation
24 slides from Tpg Re Finance Trust's earnings presentation, Feb 21, 2023
Slide 1: Fourth Quarter and Full Year 2022 Supplemental Information
February 21, 2023 Fourth Quarter and Full Year 2022 Supplemental Information Exhibit 99.2
Slide 2: Forward-Looking Statements and Other Disclosures
TPG RE Finance Trust, Inc.| 4Q 2022 2 Forward-Looking Statements and Other Disclosures 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 Exchange Act of 1934, as amended (the “Exchange
Slide 3: TRTX By the Numbers
TPG RE Finance Trust, Inc.| 4Q 2022 3 TRTX By the Numbers 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 total portfolio assumes the applicable floating b
Slide 4: 4Q22 Operating Results
TPG RE Finance Trust, Inc.| 4Q 2022 4 $14.28 ($0.01) $0.33 ($0.24) ($0.04) $0.02 $0.14 $14.48 Book Value 9/30/22 Issuance of Common Stock Net Income, Excluding Credit Loss Expense Dividends on Common Shares Dividends on Preferred Shares Equity Compensation Decrease to CECL Reserve Book Value 12/31/2
Slide 5: Operating Performance and Common Dividend Coverage
TPG RE Finance Trust, Inc.| 4Q 2022 5 $0.30 $0.20 $0.28 $0.34 $0.30 $0.19 $0.27 $0.33 $0.24 $0.24 $0.24 $0.24 Distributable Earnings per Basic Share Distributable Earnings per Diluted Share Common Dividend per Share 4Q22 3Q22 2Q22 1Q22 Common Dividend Coverage 1. Refer to Appendix for reconciliation
Slide 6: Liquidity and Leverage
TPG RE Finance Trust, Inc.| 4Q 2022 6 Liquidity and Leverage Available Liquidity ($ in millions) Leverage Ratios4 1. Cash held to satisfy liquidity covenants under secured credit agreements 2. Available for Eligible Collateral, as defined in relevant CLO indentures 3. Includes $234.1 million held at
Slide 7: Portfolio Composition and Activity
TPG RE Finance Trust, Inc.| 4Q 2022 7 Full Repayments2 37.9% 18.4% 29.8% 6.5% 4.8% 2.6% Investments1 5.2% 68.0%13.0% 6.7% 4.1% 3.0% 41.9% 37.2% 28.5% 29.5% 36.0% 46.0% 12.2% 9.5% 8.9% 9.1% 7.8% 7.5% 6.4% 5.5% 5.2% 2.2% 1.7% 0.9% 1.8% 0.9% 67.1% 67.6% 67.2% Office Multifamily Hotel Life Science Mixed
Slide 8: Diversified Loan Portfolio
TPG RE Finance Trust, Inc.| 4Q 2022 8 Diversified Loan Portfolio 28% 17% 14% 5% Geography4,5 Portfolio Metrics Total Loan Commitments $5.4B Outstanding Principal Balance $5.0B MSA Concentrations (Top 25 / Top 10)1 68.4% / 45.3% Weighted Average All-in Yield2 8.05% Weighted Average Credit Spread 3.44
Slide 9: Loan Portfolio Walk
TPG RE Finance Trust, Inc.| 4Q 2022 9 ($48.0)4 ($757.0) ($375.5… ($425.7)4 $4,919.3 $29.2 $224.6 $5,125.2 $29.3 $312.7 $4,710.2 $47.3 $950.1 $5,332.2 $39.3 $59.0 $5,004.8 $487.8 $463.0 $470.9 $462.9 $426.1 12/31/2021 Deferred Fundings Originations & Acquisitions Repayments & Sales 3/31/2022 Deferred
Slide 10: Risk Ratings
TPG RE Finance Trust, Inc.| 4Q 2022 10 $0.0 $511.9 $3,231.3 $990.3 $245.1 — 8 46 12 1 2 3 4 5 3.14 3.17 3.17 3.19 3/31/2022 06/30/2022 9/30/2022 12/31/2022 Risk Ratings Dispersion of Risk Ratings1 Stable Risk Ratings1 By Amortized Cost Trailing 4 Quarter Average: 3.17 3.6 3.0 2.7 3.0 3.7 2.7 3.0 3.0
Slide 11: CECL Reserve
TPG RE Finance Trust, Inc.| 4Q 2022 11 91 180 390 395 91 159 265 240 21 125 156 General Reserve Specifically Identified Loans 3/31/2022 6/30/2022 9/30/2022 12/31/2022 CECL Reserve QoQ CECL Reserve Reserve as bps of Total Loan Commitments1 Reserve as $M $51.1 $93.4 $225.6 $214.6 $51.1 $82.3 $153.4 $1
Slide 12: Financing: Sources and Maturities
TPG RE Finance Trust, Inc.| 4Q 2022 12 Non-MTM 73.5% 26.5% 13.5% 1.1%58.9% Secured Credit Agreements (MTM) Asset-Specific Financing Secured Revolving Credit Facility Collateralized Loan Obligations Non-MTM Financing Loan Financing Financing Metrics Total Financing Capacity $6.3B Outstanding Principa
Slide 13: Positioned for Rising Rates
13 Positioned for Rising Rates ($0.03) ($0.01) $0.00 $0.01 $0.03 -$0.03 -$0.01 $0.01 $0.03 $0.05 -1.00% -0.50% 0.0 0% 0.5 0% 1.0 0% Portfolio Net Interest Income Sensitivity ($ Impact per Share per Quarter) Index Rate at December 31, 2022 LIBOR: 4.39% Term SOFR: 4.36% + 0.50%- 0.50%- 1.00% + 1.00%-
Slide 14: Appendix
TPG RE Finance Trust, Inc.| 4Q 2022 Appendix
Slide 15: TRTX Loan Portfolio
TPG RE Finance Trust, Inc.| 4Q 2022 15 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 benchmark in
Slide 16: Per Share Calculations and Reconciliation to Distributable Earnings
TPG RE Finance Trust, Inc.| 4Q 2022 16 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 ended Ju
Slide 17: Consolidated Balance Sheets
TPG RE Finance Trust, Inc.| 4Q 2022 17 All amounts in thousands except share and per share amounts Consolidated Balance Sheets ASSETS December 31, 2022 December 31, 2021 Cash and cash equivalents $254,050 $260,635 Restricted cash 265 404 Accounts receivable 666 12 Collateralized loan obligation proc
Slide 18: Consolidated Statements of Income (Loss) and Comprehensive Income (Loss)
TPG RE Finance Trust, Inc.| 4Q 2022 18 Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) All amounts in thousands except share and per share amounts Three Months Ended, (unaudited) Year Ended December 31, Dec 31, 2022 Sep 30, 2022 2022 2021 Interest income and interest expense
Slide 19: Consolidated Statements of Cash Flows
TPG RE Finance Trust, Inc.| 4Q 2022 19 Consolidated Statements of Cash Flows All amounts in thousands Year Ended Cash flows from operating activities: December 31, 2022 December 31, 2021 Net (loss) income ($60,066) $138,550 Adjustment to reconcile net (loss) income to net cash flows from operating a
Slide 20: Definitions
TPG RE Finance Trust, Inc.| 4Q 2022 20 Definitions ▪ Distributable Earnings is a non-GAAP measure, which we define 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 lo
Slide 21: Definitions (cont.)
TPG RE Finance Trust, Inc.| 4Q 2022 21 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 established
Slide 22: Definitions (cont.)
TPG RE Finance Trust, Inc.| 4Q 2022 22 Definitions (cont.) ▪ Except for construction loans, LTV is calculated for loan originations and existing loans as the total outstanding principal balance of the loan or participation interest in a loan (plus any financing that is pari passu with or senior to s
Slide 23: Definitions (cont.)
TPG RE Finance Trust, Inc.| 4Q 2022 23 Definitions (cont.) 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 instance
Slide 24: Company Information
TPG RE Finance Trust, Inc.| 4Q 2022 24 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 Accounti