Tpg Re Finance Trust, Inc. · NYSE:TRTX
Tpg Re Finance Trust — Q2 2022 Earnings Presentation
28 slides from Tpg Re Finance Trust's earnings presentation, Aug 2, 2022
Slide 1: Second Quarter 2022 Supplemental Information
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION August 2, 2022 Second Quarter 2022 Supplemental Information Exhibit 99.2
Slide 2: Forward-Looking Statements and Other Disclosures
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION Forward-Looking Statements and Other Disclosures TPG RE Finance Trust, Inc.| 2Q 2022 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 E
Slide 3: $5.2 billion Investment Portfolio
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION 3 TPG RE Finance Trust, Inc. $5.2 billion Investment Portfolio 1. Weighted average coupon calculated using the combination of credit spread plus the greater of the current index rate or the index rate floor, as applicable; Weighted Average cost of funds
Slide 4: Operating Performance and Common Dividend Coverage
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION 4 Operating Performance and 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 Dist
Slide 5: QoQ Earnings per Share Walk
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION 5 QoQ Earnings per Share Walk ($0.07) ($0.05) ($0.06) ($0.04)$0.47 $0.25 -$0.20 $0.00 $0.20 $0.40 $0.60 Net Interest Income Management Fee Other Income & Other Expenses Credit Loss Expense, net Preferred Stock Dividends and Participating Securities' Sha
Slide 6: Book Value Walk 2Q 2022
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION 6 Book Value Walk 2Q 2022 1. Does not reflect dilutive impact of 12M outstanding warrants. Each warrant entitles the holder thereof to purchase one share of our common stock for $7.50 per share, subject to adjustment. The warrants are exercisable on a n
Slide 7: Liquidity and Leverage
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION 2.40x 2.36x 2.50x 2.47x2.49x 2.45x 2.59x 2.56x 9/30/2021 12/31/2021 3/31/2022 6/30/2022 Debt-to-Equity Ratio Total Leverage Ratio Liquidity and Leverage Available Liquidity ($ in millions) Leverage Ratios3 1. Cash held to satisfy liquidity covenants und
Slide 8: Loan Portfolio Overview
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION 8 Loan Portfolio Overview 22.3% 30.7% 36.0% 44.0% 39.6% 37.2% 12.7% 11.8% 9.5%8.9% 8.8% 7.8% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% June 30, 2021 March 31, 2022 June 30, 2022 Multifamily Office Hotel Life Science Office – Traditiona l Property Type Migratio
Slide 9: Diversified Loan Portfolio
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION Hotel 9.5% Other 1.8% Office 37.2% Life Science 7.8% Industrial 2.2% Multifamily 36.0% Mixed-Use 5.5% Floating 100.0% National, Major Market Footprint1 Lending Focused in Top 25 Markets4 Top 25 Markets Account for 76.5% of Total Loan Commitments Loan Ca
Slide 10: Loan Portfolio Walk
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION Loan Portfolio Walk 1. Loan commitments exclude (1) PIK interest resulting from previously modified loans of $2.4 million as of June 30, 2022, $2.7 million as of March 31, 2022, $3.0 million as of December 31, 2021, $3.5 million as of September 30, 2021
Slide 11: Multifamily and Office Loan Overview
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION Multifamily and Office Loan Overview Office 37.2% of total loan commitments at June 30, 2022 − 92.3% in Top 25 US MSAs / 82.3% in Top 10 − 67.6% Weighted Average LTV1 − Office loans comprised 6.0% of TTM Originations − 100% Interest Collections in 2Q2
Slide 12: 1H 2022 Loan Originations
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION 12 1H 2022 Loan Originations Investment Highlights1 12 first mortgage loans Total commitments of $613.3M Initial fundings of $537.3M Average loan size of $51.1M 100% floating rate Weighted average interest rate of Term SOFR+ 3.96% Weighted
Slide 13: Select 2Q22 Loan Originations
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION 13 Select 2Q22 Loan Originations Multifamily Multifamily Multifamily $97.0M $63.0M $51.6M Los Angeles, CA Buffalo, NY San Antonio, TX 176-unit Class A property consisting of 5 floors above 2.5 floors of subterranean and partially-subterranean parking
Slide 14: Risk Ratings and CECL Reserve
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION 3.3 3.0 3.1 3.0 3.4 3.0 5.0 3.0 3.0 3.23.2 3.0 3.5 2.7 3.3 3.0 5.0 3.0 3.1 2Q 2022 1Q 2022 Risk Ratings and CECL Reserve Dispersion of Risk Ratings Stable Risk Ratings By Amortized Cost Risk Ratings by Property Type By Amortized Cost 84 85 91 159 19 21
Slide 15: Loan Financing Overview
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION Loan Financing Overview 1. Represents capacity available to be borrowed provided we pledge, and the lender approves, additional collateral assets 2. Non-MTM financing providing the Company with interim financing of eligible loans for up to 180 days at a
Slide 16: Capital Structure
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION Capital Structure Capital Structure Composition Capital Structure Detail ($ in millions) 1. All but one of our seven secured credit agreements are subject to credit marks only 2. Includes one secured credit facility which may be re-margined beginning on
Slide 17: Positioned for Rising Rates
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION $0.00 $0.01 $0.02 $0.05 $0.07 $0.00 $0.02 $0.04 $0.06 $0.08 -0.25% 0.0 0% 0.5 0% 1.0 0% 2.0 0% 3.0 0% 17 Positioned for Rising Rates Portfolio Net Interest Income Sensitivity ($ Impact per Share per Quarter)1 Index Rate 1. Static analysis based on loan
Slide 18: Appendix
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION Appendix
Slide 19: TRTX Loan Portfolio
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION 19 TRTX Loan Portfolio Loan Name TRTX Loan Commitment1 TRTX Loan Balance2 Interest Rate3 Extended Maturity Location Property Type Commitment Per Sq. ft. / Unit LTV4 Risk Rating4 Loan 1 $290.8 $289.0 L + 1.6% 2.2 years New York, NY Office $574 Sq. ft. 65
Slide 20: Per Share Calculations and Reconciliation to Distributable Earnings
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION 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 $29,32
Slide 21: Consolidated Balance Sheets
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION ASSETS June 30, 2022 December 31, 2021 Cash and Cash Equivalents $355,994 $260,635 Restricted Cash 789 404 Accounts Receivable 112 12 Collateralized Loan Obligation Proceeds Held at Trustee 130,908 204 Accounts Receivable from Servicer/Trustee 259,823 1
Slide 22: Consolidated Statements of Income (Loss) and Comprehensive Income (Loss)
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION 22 Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) All amounts in thousands except share and per share amounts Three Months Ended June 30, INTEREST INCOME AND INTEREST EXPENSE 2022 2021 Interest Income $66,021 $61,915 Interest E
Slide 23: Consolidated Statements of Cash Flows
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION Consolidated Statements of Cash Flows All amounts in thousands Six Months Ended 23TPG RE Finance Trust, Inc.| 2Q 2022 Cash Flows from Operating Activities: June 30, 2022 June 30, 2021 Net Income $18,347 $64,347 Adjustment to Reconcile Net Income (Loss)
Slide 24: Definitions
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION 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 los
Slide 25: Definitions (cont.)
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION 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 est
Slide 26: Definitions (cont.)
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION Definitions (cont.) 26TPG RE Finance Trust, Inc.| 2Q 2022 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 coll
Slide 27: Definitions (cont.)
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION Definitions (cont.) 27TPG RE Finance Trust, Inc.| 2Q 2022 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 collater
Slide 28: Company Information
TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION 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