Tpg Re Finance Trust, Inc. · NYSE:TRTX
Tpg Re Finance Trust — Investor Presentation (September 2022)
26 slides from Tpg Re Finance Trust's investor presentation, Sep 12, 2022
Slide 1: Investor Presentation September 2022
September 2022 TPG RE Finance Trust, Inc. Investor Presentation Exhibit 99.1
Slide 2: Forward-Looking Statements and Other Disclosures
Forward-Looking Statements and Other Disclosures 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 Exchange Act of 1934, as amended (the “Exchange Act”), which reflect our current vie
Slide 3: TPG RE Finance Trust, Inc. Overview
3 TPG RE Finance Trust, Inc. $5.2 billion Total Loan Commitments 1. See Appendix for definitions, including LTV, Risk Ratings and Total Leverage Ratio 2. Includes one non-consolidated senior interest of $132.0 million; See Appendix for definitions, including non-consolidated senior interest 3. See p
Slide 4: TPG – Premier Global Asset Manager
4Investor Presentation | September 2022 TPG – Premier Global Asset Manager Capital Real Estate Impact TPG Real Estate Partners (TREP) Market Solutions $62B $20B $15B$21B $9B Real Estate Thematic Advantage Core Plus (TAC+) TPG Real Estate Partners (TREP) TPG RE Finance Trust (TRTX) TPG Rise Climate T
Slide 5: Career Credit Investors Drive Investment Strategy
5 Career Credit Investors Drive Investment Strategy Leadership team has invested through multiple business and real estate cycles Emphasis on credit quality and principal protection Engagement throughout the investment process Deep, extensive relationships with owners, borrowers, brokers and
Slide 6: 2Q22 Operating Results
6Investor Presentation | September 2022 2Q22 Operating Results ($ in millions) Net Income (Loss) Attributable to Common Stockholders1 Adjustments Distributable Earnings2 Interest Income $66.0 $ - $66.0 Interest Expense (28.0) - (28.0) Management and Incentive Fees (11.0) - (11.0) Stock Compensation
Slide 7: Common Dividend Coverage
7 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. Includes Special Dividend of $0.07 per share, or $5
Slide 8: Liquidity and Leverage
2.40x 2.36x 2.50x 2.47x2.49x 2.45x 2.59x 2.56x 9/30/2021 12/31/2021 3/31/2022 6/30/2022 Debt-to-Equity Ratio Total Leverage Ratio Liquidity and Leverage Available Liquidity ($ in millions) Leverage Ratios4 1. Cash held to satisfy liquidity covenants under secured credit agreements 2. Includes $234.1
Slide 9: Investments
9Investor Presentation | September 2022 Investments Theme-driven investment approach targeting multifamily, life science and industrial properties in high-growth regions Continued reduction in office exposure resulting from originations, repayments and portfolio management 1H 2022 Portfolio Acti
Slide 10: Loan Portfolio at June 30, 2022
10Investor Presentation | September 2022 Loan Portfolio at June 30, 2022 28% 16% 10% 7% 7% Geography2,3 East 37.6% Midwest 7.2% Southeast 12.6% Southwest 12.4% West 30.2% Portfolio Metrics Total Loan Commitments $5.2B Outstanding Principal Balance $4.7B MSA Concentrations (Top 25 / Top 10)1 76.5% /
Slide 11: 3Q 2022 Loan Activity
11Investor Presentation | September 2022 3Q 2022 Loan Activity Net Increase in Earning Assets of 14% ($279.8M) $513.2M $437.0M $670.4M Initial Funding on Loan Originations Purchased UPB on Acquired Loans Full RepaymentsNet Increase in Interest Earning Assets from Originations, Purcha Initial Funding
Slide 12: Portfolio Credit
12 Portfolio Credit Weighted Average Risk Ratings Migration by Property Type3 by Amortized Cost 3.3 3.0 3.1 3.0 3.4 3.0 5.0 3.0 3.02.9 3.0 3.6 2.7 2.9 n/a 5.0 3.0 n/a Office Multifamily Hotel Life Science Mixed-Use Industrial Retail Condominium Other 2Q 2022 4Q 2021 4Q 2021 Weighted Average Risk Rat
Slide 13: 4 Risk Rated Office Loans
Philadelphia Northern Virginia Dallas Brooklyn Bridge Light Transitional Moderate Transitional Light Transitional June 2018 December 2019 September 2017 September 2020 1,071K SF Class B+ building 317K SF Class B+ building 846K SF, three-building Class B+ project 444K SF conversion Institutional Inst
Slide 14: 4 Risk Rated Office Loans (cont'd)
Orange, California San Mateo, California Honolulu, Hawaii Santa Ana, California Moderate Transitional Moderate Transitional Light Transitional Light Transitional August 2019 December 2019 March 2018 January 2018 340K SF multi-tenant building 206K SF Class B, five building complex 288K SF building 19
Slide 15: Loan Financing
15Investor Presentation | September 2022 Loan Financing Financing Metrics 1 Total Financing Capacity $6.2B Outstanding Principal Balance $4.0B Sources of Financing 14 Non-Mark-to-Market 73.7% Weighted Average Credit Spread 1.81% Weighted Average Approved Advance Rate 80.0% 26.3% 0.6% 3.1% 1.3% 3.2%
Slide 16: Attractive Potential Total Return
16Investor Presentation | September 2022 Attractive Potential Total Return Create shareholder value through − Increased loan-level Return on Equity −Market dividend yield −Stock price appreciation to book value Increase Returns Deploy capital via investments in high- conviction markets with high
Slide 17: Capital Deployment to Boost Earnings
Capital Deployment to Boost Earnings Investor Presentation | September 2022 $22.5M $28.1M $33.8M $0.29 $0.36 $0.44 $0.28 $0.35 $0.42 $225.0M $281.3M $337.5M $18.0M $22.5M $27.0M $0.23 $0.29 $0.35 $0.23 $0.28 $0.34 $225.0M $281.3M $337.5M 1. TRTX’s ability to deploy capital is dependent upon TRTX ide
Slide 18: Rising Rates Create Earnings Power
$0.00 $0.01 $0.02 $0.05 $0.07 $0.00 $0.02 $0.04 $0.06 $0.08 -0.25% 0.00% 0.50% 1.00% 2.00% 3.00% 18 Rising Rates Create Earnings Power Portfolio Net Interest Income Sensitivity ($ Impact per Share per Quarter)1 Index Rate 1. Static analysis based on loan portfolio composition as of June 30, 2022 2.
Slide 19: Appendix
Appendix
Slide 20: Per Share Calculations and Reconciliation of Distributable Earnings
20 Per Share Calculations Reconciliation of Net Income Attributable to Common Stockholders and Distributable Earnings Three Months Ended (unaudited) June 30, 2022 March 31, 2022 Dec 31, 2021 Sep 30, 2021 Net Income (Loss) ($5,434) $23,781 $44,878 $29,325 Preferred Stock Dividends1 (3,148) (3,148) (3
Slide 21: Definitions
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 loss, or in GAAP net income (loss), and excluding
Slide 22: Definitions (cont.)
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 by The National Council of Real Estate
Slide 23: Definitions (cont.)
Definitions (cont.) 23 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 collateral performance tests. The related business plan generally involves little or n
Slide 24: Definitions (cont.)
Definitions (cont.) 24 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 instances, TRTX’s classification may be dete
Slide 25: Definitions (cont.)
Definitions (cont.) 25Investor Presentation | September 2022 ROE Scenarios Disclaimer TRTX has presented two Assumed ROE scenarios for illustrative purposes only. These Assumed ROE scenarios are based on current market conditions and assumptions with respect to general business, economic, regulato
Slide 26: 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. Bob Foley Chief Financial Officer +1 (212) 430-4111 bfoley@tpg.com Brandon Fox Chief Accounting Officer +1 (415) 706-2751 bfox@tpg.c
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