Tpg Re Finance Trust, Inc. · NYSE:TRTX
Tpg Re Finance Trust — Q2 2020 Earnings Presentation
22 slides from Tpg Re Finance Trust's earnings presentation, Jul 29, 2020
Slide 1: Second Quarter 2020 Supplemental Information
July 29, 2020 Second Quarter 2020 Supplemental Information Exhibit 99.2
Slide 2: Forward-Looking Statements and Other Disclosures
Forward-Looking Statements and Other Disclosures 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 forwar
Slide 3: 2Q 2020 Activity
2Q 2020 Activity Financial 2Q Activity Loan Portfolio Liquidity & Capitalization 1. See Appendix for definitions, including definitions of Core Earnings (reconciliation to GAAP net income), LTV, and Loan Risk Rating. GAAP net income defined as GAAP net loss attributable to common stockholders 2. In
Slide 4: Loan Portfolio
Loan Portfolio Loan Portfolio 1. See Appendix for definitions, including definitions of LTV and Loan Risk Rating 2. Risk rating based on amortized cost 3. Property type by commitment Loan Investment Portfolio1 ($ in millions) As of June 30, 2020 As of March 31, 2020 QoQ Change Total Loan Commitments
Slide 5: 2Q Operating Performance
2Q Operating Performance Financial Performance Performance Metric June 30, 2020 March 31, 2020 QoQ Change GAAP net income (loss) attributable to common stockholders $40.1 million / $0.52 per share $(233.1) million / $(3.05) per share 117.2% / 117.0% Core Earnings1 $17.5 million / $0.23 per share $(1
Slide 6: Book Value Walk 2Q 2020
Book Value Walk 2Q 2020 $16.25 $16.55 1. Equals CECL reserve of $58.7 divided by loan commitments of $5.6B, both as of June 30, 2020 Note: Totals may not sum due to rounding Recurring Operations CECL (104 bps at 6/30/2020)1 Non-Recurring $16.06 ($0.03) $0.43 ($0.23) $0.02 $0.32 ($0.01) $16.56 Change
Slide 7: National, Major Market Footprint
National, Major Market Footprint2 Lending Focused in Top 25 Markets1 Top 25 Markets Account for 84.6% of Total Loan Commitments Loan Category Geographic Diversity Diversified Loan Portfolio Property Diversity2 1. Top 25 markets determined by US Census. Portfolio loans with collateral properties that
Slide 8: Risk Ratings Update
Risk Ratings Update Weighted average loan portfolio risk rating of 3.1 as of June 30, 2020 Risk Ratings – 6/30/2020 $ Millions Total: $5,042.1 Loan Count: 65 1. See Appendix for a description of the Company’s Loan Risk Rating scale and definition of Loan Category 2. By amortized cost 3. Includes a s
Slide 9: Financing Overview
Financing Overview 1. Includes one non-consolidated senior interest of $132.0 million 2. Total Financing Utilization relates only to the financing of the Company’s loan investments 3. Borrowings are 100% recourse to TPG RE Finance Trust Holdco, LLC. Facility expired on July 12, 2020 by its terms 4.
Slide 10: Secured Financing Arrangements – Loan Investments
Secured Financing Arrangements – Loan Investments Secured Repurchase Agreements 10/17/2022 $2,790.9 $1,718.7 69.2% 66.1% 45.2% 1.74% Senior Secured Facility 9/29/2022 $200.0 $137.6 75.0% 73.6% 55.2% 1.75% Secured Credit Agreement2 7/12/2020 $160.0 $0.0 n/a n/a n/a n/a Subtotal $3,150.9 $1,856.2 69.5
Slide 11: Interest Rate Sensitivity
Interest Rate Sensitivity LIBOR Net Interest Income Per Share Sensitivity to LIBOR Movements2 100% of the portfolio is indexed to one-month USD LIBOR Portfolio benefits from decreasing rates given in-place LIBOR floors on loans1 95% of the loan portfolio is subject to a LIBOR floor of at least 0.95%
Slide 12: Appendix
Appendix
Slide 13: 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, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Net Income (Loss) Attributable to Common Stockholders1 $40,105 $(233,061) $32,618 $32,909 Weighted-A
Slide 14: 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 $322.9 L+ 2.9% 4.2 years New York, NY Office $692 Sq. ft. 72.8% Loan 2 $223.0 $169.6 L+ 3.4% 4.1 years Atlanta, GA Office $21
Slide 15: Consolidated Balance Sheets
All amounts in thousands except share and per share amounts ASSETS June 30, 2020 (unaudited) December 31, 2019 Cash and Cash Equivalents $196,237 $79,182 Restricted Cash 180 484 Accounts Receivable 36 2,344 Accounts Receivable from Servicer/Trustee 80,219 13,741 Accrued Interest and Fees Receivable
Slide 16: 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 months ended June 30 is unaudited) Three Months Ended June 30, INTEREST INCOME 2020 2019 Interest Income $70,051 $88,254 Interest Expense (25,865) (46,426) Net Interest Incom
Slide 17: Consolidated Statements of Cash Flows
Cash Flows from Operating Activities: June 30, 2020 June 30, 2019 Net Income (Loss) $(189,862) $60,381 Adjustment to Reconcile Net Income to Net Cash Provided by Operating Activities: Amortization and Accretion of Premiums, Discounts and Loan Origination Fees, net (5,627) (7,898) Amortization of Def
Slide 18: 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 19: 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, and an asset-specific financing agreement, less cash,
Slide 20: 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 21: Definitions (cont.) Loan Risk Ratings
Definitions (cont.) Loan Risk Ratings Using 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 22: 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 Investor Relations: +1 (212) 405-8500 IR@tpgrefinance.com Media C