Tpg Re Finance Trust, Inc. · NYSE:TRTX
Tpg Re Finance Trust — Q3 2019 Earnings Presentation
25 slides from Tpg Re Finance Trust's earnings presentation, Oct 28, 2019
Slide 1: Third Quarter 2019 Operating Results
October 28, 2019 Third Quarter 2019 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: Third Quarter 2019 Highlights
Third Quarter 2019 Highlights 3Q 2019 Highlights 1. See Appendix for definitions, including definitions of Core Earnings (reconciliation to GAAP net income), Asset-Level Estimated Return on Equity (“ALEROE”), LTV, and Loan Risk Rating. GAAP net income defined as GAAP net income attributable to commo
Slide 4: Loan Portfolio Highlights
Loan Portfolio Highlights Loan Investment Activity Loan Portfolio 1. See Appendix for definitions, including definitions of LTV, Loan Category, Property Type, Loan Risk Rating, and Asset-Level Estimated Return on Equity (“ALEROE”) 2. Inclusive of the Stanly Ranch co-originated senior loan of $132.0
Slide 5: Operating Performance Highlights
Operating Performance Highlights Financial Performance Performance Metric September 30, 2019 June 30, 2019 QoQ Change GAAP net income attributable to common stockholders $32.9 million ($0.44 / share) $31.8 million ($0.43 / share) 3.5% Core Earnings(1) $33.4 million ($0.45 / share) $32.7 million ($0.
Slide 6: Operating Performance
$0.43 $0.43 $0.43 Operating Performance 3Q19 net interest income increased to $44.5 million, up $2.7 million, or 6.5%, from the quarter ended June 30, 2019, due primarily to continued growth of interest earning assets and net fee income received from loan repayments during the current period Declare
Slide 7: Diversified Loan Portfolio
Loan Category Geographic Diversity Diversified Loan Portfolio National, Major Market Footprint2 Property Diversity2 1. Top 25 markets determined by US Census. Portfolio loans with collateral properties that are located in different MSAs are classified in the market designation with over 50% of under
Slide 8: Risk Ratings – 9/30/2019
Risk Ratings – 9/30/2019 $ Millions $0.0 $0.0 10 52 8 Total: $5,017.5 Loan Count: 70 Diversified Loan Portfolio 1. See Appendix for a description of the Company’s Loan Risk Rating scale and definition of Loan Category and Property Type 2. By total loan commitment 3. By loan carrying value 4. Include
Slide 9: Loan Originations
Loan Originations 3Q19 Investment Highlights Closed 6 first mortgage loans Total commitments of $805.3 million Initial fundings of $654.0 million Average loan size of $134.2 million2 100% Floating Rate Weighted average LIBOR floor of 1.79% Weighted average interest rate of LIBOR plus 2.89% Weighted
Slide 10: Select 3Q 2019 Loan Originations
Office Office Office $350.8M $200.0M $90.0M New York, NY New York, NY San Diego, CA 507K SF, 40-story Class A office building located on Fifth Avenue 100% leased, 221K SF office property in the Flatiron/Union Square office submarket 236K SF, 4-building multi-tenant office campus Refinance and comple
Slide 11: Loan Funding Activity through September 30, 2019
Loan Funding Activity through September 30, 2019 3Q19 portfolio growth spurred by $805.3 million of new loan commitments with a $134.2 million average loan size Loan UPB grew $187.4 million to $5.0 billion; loan repayments totaled $511.9 million in 3Q19, compared to $451.3 million in 2Q19, increasin
Slide 12: Loan Portfolio Financing
Loan Portfolio Financing 1. Total Loan Portfolio Financing Capacity and Financing Utilization relates only to the financing of the Company’s loan investments. Excludes items related to CMBS and CRE CLO investments. Totals may not sum due to rounding 2. Borrowings are 100% recourse to the Company 3.
Slide 13: Capital Deployment
Capital Deployment Strong, Diverse Capital Base Drives 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 near term
Slide 14: Interest Rate Sensitivity
Interest Rate Sensitivity 100% floating rate loan portfolio that benefits from contractual interest rate floors with a weighted average strike LIBOR rate of 1.53%; for 3Q19 loan originations, weighted average strike LIBOR rate was 1.79% and year-to-date was 1.93% Net floating rate mortgage loan expo
Slide 15: Appendix
Appendix
Slide 16: Per Share Calculations / Core Earnings Reconciliation
Per Share Calculations Per Share Calculations / Core Earnings Reconciliation Earnings and Dividends per Common Share For the Period Ended (unaudited) Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Net Income Attributable to Common Stockholders1 $32,909 $31,827 $28,268 $28,467 Weighted-Average N
Slide 17: 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 $350.8 $312.9 L+ 2.9% 4.9 years New York, NY Office $692 Sq. ft. 72.8% Loan 2 $223.0 $167.8 L+ 3.4% 4.9 years Atlanta, GA Office $21
Slide 18: Consolidated Balance Sheets
ASSETS Sep 30, 2019 December, 2018 Cash and Cash Equivalents $99,347 $39,720 Restricted Cash 350 1,000 Accounts Receivable 6 38 Accounts Receivable from Servicer/Trustee 81,707 96,464 Accrued Interest Receivable 30,885 20,731 Loans Held for Investment, net (includes $3,897,526 and $2,219,574 pledged
Slide 19: Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income and Comprehensive Income All amounts in thousands except share and per share amounts (three and nine months ended September 30 is unaudited) Three Months Ended Sep 30, Nine Months Ended Sep 30, INTEREST INCOME 2019 2018 2019 2018 Interest Income $92,362 $69,863 $257
Slide 20: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows All amounts in thousands (nine months ended September 30 is unaudited) Cash Flows from Operating Activities: Sep 30, 2019 Sep 30, 2018 Net Income $93,406 $78,376 Adjustment to Reconcile Net Income to Net Cash Provided by Operating Activities: Amortization and Ac
Slide 21: 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 22: Definitions (cont.)
Definitions (cont.) Debt-to-Equity - Represents (i) total outstanding borrowings under financing arrangements, net, including collateralized loan obligations, secured revolving repurchase agreements, senior secured and secured credit agreements, a term loan facility, and an asset-specific financing
Slide 23: Definitions (cont.)
Definitions (cont.) Bridge/Stabilization 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 li
Slide 24: Definitions (cont.) Loan Risk Ratings
Definitions (cont.) Loan Risk Ratings Based on a 5-point scale, TRTX’s loans are rated “1” through “5,” from least risk to greatest risk, respectively, on a quarterly basis. The loan risk ratings are defined as follows: 1: Outperform—Exceeds performance metrics (for example, technical milestones, oc
Slide 25: 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. Robert Foley Chief Financial & Risk Officer +1 (212) 430-4111 bfoley@tpg.com Investor Relations: +1 (212) 405-8500 IR@tpgrefinance.c