Tpg Re Finance Trust, Inc. · NYSE:TRTX
Tpg Re Finance Trust — Q3 2020 Earnings Presentation
26 slides from Tpg Re Finance Trust's earnings presentation, Nov 4, 2020
Slide 1: Third Quarter 2020 Supplemental Information
November 4, 2020 Third 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: 3Q 2020 Activity
3Q 2020 Activity Financial 3Q Activity Loan Portfolio Liquidity & Capitalization 1. See Appendix for definitions 2. In connection with adoption on January 1, 2020 of Accounting Standards Update 2016-13, Financial Instruments – Credit Losses (“ASU 2016-13”, or “CECL”) 3. Includes one non-consolidated
Slide 4: Subsequent Events
Subsequent Events Loan Activity Secured Credit Facility Received full repayments of 4 loans subsequent to September 30: $309.4M of total UPB repaid $152.2M of secured credit agreement borrowings repaid Net cash proceeds of $41.5M Generated $115.7M of CLO reinvestment capacity Contributed to liquidit
Slide 5: Loan Portfolio
Loan Portfolio Loan Portfolio 1. See Appendix for definitions 2. Risk rating based on amortized cost 3. Includes one land loan with a commitment amount of $112.0 million 4. Based on fully-extended maturity dates; actual results may vary Note: Totals may not sum due to rounding Loan Investment Portfo
Slide 6: Current quarter earnings are consistent with pre-COVID levels
Current quarter earnings are consistent with pre-COVID levels Operating Performance Operating Performance¹ ($ in millions) 2Q19 3Q19 4Q19 3Q20 GAAP Net Income $31.8 $32.9 $32.6 $30.8 Core Earnings $32.7 $33.4 $33.2 $32.6 Cash Dividends Declared on Common Shares $32.0 $32.0 $32.8 $15.4 1. See Appendi
Slide 7: Liquidity and Leverage
Liquidity and Leverage Available Liquidity Leverage Ratio 1. Cash held to satisfy minimum cash requirement under secured credit facility covenants 2. Excludes Series B preferred stock, which is classified as Temporary Equity; See Appendix for complete definitions Note: Totals may not sum due to roun
Slide 8: Book Value Walk 3Q 2020
Book Value Walk 3Q 2020 $16.78 1. Equals CECL reserve of $59.3M divided by total loan commitments of $5.4B, both as of September 30, 2020 Note: Totals may not sum due to rounding $16.55 $0.01 $0.51 ($0.28) $0.01 ($0.01) 16.79 Change in Book Value Per Share Beg. Book Value per Share End. Book Value p
Slide 9: National, Major Market Footprint
National, Major Market Footprint2 Lending Focused in Top 25 Markets1 Top 25 Markets Account for 86.0% 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 10: Multifamily and Office Loan Overview
Multifamily and Office Loan Overview Office¹ 65.4% W.A. LTV 96.2% in top 25 US MSAs 0% Construction Loans $90.9M Average Loan Size Multifamily² 75.1% W.A. LTV 81.4% in top 25 US MSAs 0% Construction Loans $82.2M Average Loan Size 1. At September 30, 2020 represented 50.6% of the Company’s total comm
Slide 11: Loan Modifications
Loan Modifications Loan Modifications YTD Modifications at 9/30/20 Total Modifications Outstanding 11 Total UPB of Modifications Outstanding $775.3M Loan Modifications at 9/30/201 3Q Interest Collections 100% interest collections during Q3, including PIK of 5% Economic modifications typically consis
Slide 12: Risk Ratings
$0.0 Risk Ratings Risk Ratings – 9/30/2020 $ Millions Total: $4,928.5 Loan Count: 63 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 single sponsor relationship with common control of 4 loans totaling $27.5
Slide 13: Financing Overview
Financing Overview 1. Includes one non-consolidated senior interest of $132.0 million 2. Omits the impact of LIBOR floors on approximately 8% of our financing 3. Based on extended maturity dates where ability to extend is at Company’s option Note: Totals may not sum due to rounding Financing Arrange
Slide 14: Secured Financing Arrangements – Loan Investments
Secured Financing Arrangements – Loan Investments Secured Credit Facilities2 9/21/2022 $2,990.0 $1,733.1 67.8% 66.6% 45.1% 1.74% Subtotal $2,990.0 $1,733.1 67.8% 66.6% 45.1% 1.74% FL-2 10/1/2034 $795.1 $795.1 79.5% 67.1% 53.4% 1.45% FL-3 11/29/2037 $1,039.6 $1,039.6 84.5% 68.5% 57.9% 1.44% Asset Spe
Slide 15: 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 low rates due to high in-place LIBOR floors on loans1 ; weighted average LIBOR floor of 1.69% 100% of the loan portfolio is su
Slide 16: Appendix
Appendix
Slide 17: 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) Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Net Income (Loss) Attributable to Common Stockholders1 $30,782 $40,105 $(233,061) $32,618 Weighted-A
Slide 18: 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 $300.8 $280.4 L+ 1.6% 4.0 years New York, NY Office $594 Sq. ft. 65.2% Loan 2 $223.0 $170.4 L+ 3.4% 3.9 years Atlanta, GA Office $21
Slide 19: Consolidated Balance Sheets
All amounts in thousands except share and per share amounts (balances as of September 30 are unaudited) ASSETS September 30, 2020 December 31, 2019 Cash and Cash Equivalents $225,554 $79,182 Restricted Cash — 484 Accounts Receivable 636 2,344 Accounts Receivable from Servicer/Trustee 23,494 13,741 A
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 September 30 is unaudited) Three Months Ended September 30, INTEREST INCOME 2020 2019 Interest Income $69,854 $92,362 Interest Expense (21,450) (47,874) Net Inte
Slide 21: Cash Flows from Operating Activities
Cash Flows from Operating Activities: September 30, 2020 September 30, 2019 Net Income (Loss) $(151,415) $93,406 Adjustment to Reconcile Net Income to Net Cash Provided by Operating Activities: Amortization and Accretion of Premiums, Discounts and Loan Origination Fees, net (8,515) (12,612) Amortiza
Slide 22: 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 23: 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 24: 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 25: Definitions (cont.)
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 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 Investor Relations: +1 (212) 405-8500 IR@tpgrefinance.com Media C