Tpg Re Finance Trust, Inc. · NYSE:TRTX
Tpg Re Finance Trust — Q1 2025 Earnings Presentation
26 slides from Tpg Re Finance Trust's earnings presentation, Apr 29, 2025
Slide 1: TPG RE Finance Trust, Inc. Reports Operating Results for the Quarter Ended March 31, 2025
TPG RE Finance Trust, Inc. Reports Operating Results for the Quarter Ended March 31, 2025 April 29, 2025 NEW YORK--(BUSINESS WIRE)--TPG RE Finance Trust, Inc. (NYSE: TRTX) (“TRTX” or the “Company”) reported its operating results for the quarter ended March 31, 2025. Regarding first quarter results,
Slide 2: Subsequent Events
SUBSEQUENT EVENTS • From April 1, 2025 through April 25, 2025, repurchased 769,623 shares of common stock, at a weighted average price of $7.32 per share, for total consideration (including commissions and related fees) of $5.6 million. The Company has $16.1 million of remaining capacity under its s
Slide 3: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This earnings release 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 are subject to various risks and un
Slide 4: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation Distributable Earnings 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 from loan write-offs, loan sales and other loan resolutions (includin
Slide 5: First Quarter 2025 Supplemental Information
First Quarter 2025 Supplemental Information April 29, 2025
Slide 6: Forward-Looking Statements and Other Disclosures
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 Act”), which reflect our current views
Slide 7: TRTX By the Numbers
TRTX By the Numbers Loan Portfolio1 Liquidity & Capitalization Dividend & Earnings $3.4 billion $4.8 billion $0.24 Loan Investment Portfolio Financing Capacity 1Q25 Common Stock Dividend Declared $75.2 million 100% 91.0% 2.2x $0.12 $0.24 1Q25 Distributable Average Loan Size Scheduled Interest Non-Ma
Slide 8: 1Q25 Operating Results
1Q25 Operating Results Net Income Distributable Earnings ($ in millions) Attributable to Common Adjustments Distributable Earnings2 per Common Share, Stockholders1 Diluted $0.12 Interest Income $68.0 $— $68.0 $0.83 GAAP Income per Interest Expense (43.1) — (43.1) (0.53) Diluted Share1 Net Interest I
Slide 9: Liquidity and Leverage
Liquidity and Leverage Available Liquidity ($ in millions) Leverage Ratios3,4 1 Covenant Cash 2 Cash Debt-to-Equity Ratio Total Leverage Ratio Undrawn Capacity CLO Reinvestment Cash $457.6 2.23x 2.23x $69.2 2.14x 2.14x $389.3 2.02x 2.02x 2.02x 2.02x $357.0 $25.4 $320.8 $130.1 $130.7 $130.6 $348.0 $2
Slide 10: Loan Portfolio
Loan Portfolio Portfolio Metrics Loan Portfolio Composition4 Total Loan Commitments $3.4B Self Storage Outstanding Principal Balance $3.3B 2.0% Office 1 Industrial 17.3% MSA Concentrations (Top 25 / Top 10) 58.7% / 30.9% 4.9% Weighted Average All-in Yield2 8.22% Mixed-Use Life Science 2.3% Weighted
Slide 11: Risk Ratings
Risk Ratings Dispersion of Risk Ratings1 Trailing 4 Stable Risk Ratings1 by Amortized Cost ($ in millions) Quarter By Amortized Cost Average: March 31, 2025 December 31, 2024 3.03 3.05 3.05 3.02 3.02 $3,091.1 $3,098.7 1Q 2025 Loan Count: 45 4Q 2024 Loan Count: 45 42 42 6/30/2024 09/30/2024 12/31/202
Slide 12: CECL Reserve
CECL Reserve ▪ Carried at quarter-end an allowance for credit losses of $67.2 million, an increase of $3.2 million from $64.0 million as of December 31, 2024 QoQ CECL Reserve Reserve as bps of Total Loan Commitments1 Reserve as $M General Reserve Specifically Identified Loans General Reserve Specifi
Slide 13: Loan Financing
Loan Financing Diverse Financing Sources 91% Non-MTM Financing1 Total Financing Capacity $4.8B 1.1% 9.0% Outstanding Principal Balance $2.8B Secured Credit Agreements (Credit MTM) Asset-Specific Financing Sources of Financing 9 Secured Revolving Credit Facility Non-MTM Non-Mark-to-Market 91.0% 91.0%
Slide 14: Real Estate Owned
Real Estate Owned ▪ Real Estate Owned portfolio with a total acquisition date fair value of $287.9 million, current carrying value of $272.2 million, and net book equity of $241.0 million ($ in thousands) Office Multifamily Office Office Office Multifamily1 Multifamily Total Acquisition Date April 2
Slide 15: Impact of Changing Rates
Impact of Changing Rates Portfolio Net Interest Income Sensitivity ($ Impact per Share per Quarter)1 0.02 Index Rate at March 31, 2025 Term SOFR: 4.32% $0.01 $0.01 0.01 $0.00 0.00 (0.01) ($0.01) ($0.01) (0.02) - 1.00% - 0.50% 0.00% + 0.50% + 1.00% Change in Index Rate 1. Static analysis based on loa
Slide 16: Appendix
Appendix TPG RE Finance Trust, Inc.| 4Q 2022
Slide 17: TRTX Loan Portfolio
TRTX Loan Portfolio $ Millions Commitment TRTX Loan TRTX Loan Extended Property Per Sq. ft. / Loan Name Commitment1 Balance2 Interest Rate Maturity Location Type Unit LTV3 Risk Rating3 Loan 14 $256.3 $253.3 S + 3.6% 2.4 years San Jose, CA Multifamily $444,646 / Unit 72.6% 3 5 Loan 2 $227.1 $227.1 S
Slide 18: Per Share Calculations
Per Share Calculations ▪ The following tables provide a reconciliation of GAAP net income to GAAP Net Income Attributable to Common Stockholders and Distributable Earnings (in thousands, except share and per share data): Three Months Ended (unaudited) Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2
Slide 19: Consolidated Balance Sheets
Consolidated Balance Sheets All amounts in thousands except share and per share amounts ASSETS March 31, 2025 December 31, 2024 Cash and cash equivalents $363,023 $190,160 Restricted cash 417 323 Accounts receivable 84 10 Collateralized loan obligation proceeds held at trustee 69,150 — Accounts rece
Slide 20: 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 March 31, 2025 2024 Interest income and interest expense Interest income $68,045 $82,184 Interest expense (43,143) (55,381) Net interest income 24,902 26,803 Othe
Slide 21: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows All amounts in thousands Three Months Ended Cash flows from operating activities: March 31, 2025 March 31, 2024 Net income $13,719 $16,744 Adjustment to reconcile net income to net cash flows from operating activities: Amortization and accretion of premiums, dis
Slide 22: Definitions
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 from loan write-offs, loan sales and other loan resolutions (including conversions to REO), regardless of whether such it
Slide 23: Definitions (cont.)
Definitions (cont.) Deferred Fundings ▪ Fundings to borrowers that are made under existing loan commitments after a loan closing date. ▪ Our financial covenants and guarantees for outstanding borrowings related to our secured financing agreements require TPG RE Finance Trust Holdco, LLC, a Delaware
Slide 24: Definitions (cont.)
Definitions (cont.) ▪ Debt-to-Equity Ratio - Represents (i) total outstanding borrowings under secured financing arrangements, including collateralized loan obligations, secured credit agreements, asset-specific financing arrangements, a secured revolving credit facility, and mortgage loans payable,
Slide 25: Definitions (cont.)
Definitions (cont.) ▪ 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 determined by its asse
Slide 26: Company Information
Company Information TPG RE Finance Trust, Inc. is a commercial real estate finance company that originates, acquires, and manages primarily first mortgage loans secured by institutional properties located in primary and select secondary markets in the United States. The Company is externally managed