Tpg Re Finance Trust, Inc. · NYSE:TRTX
Tpg Re Finance Trust — FY2017 Earnings Presentation
24 slides from Tpg Re Finance Trust's earnings presentation, Feb 26, 2018
Slide 1: Fourth Quarter and Full Year 2017 Operating Results
February 26, 2018 Fourth Quarter and Full Year 2017 Operating Results Exhibit 99.2
Slide 2: TPG RE Finance Trust, Inc. Reports Fourth Quarter and Full Year 2017 Operating Results
TPG RE Finance Trust, Inc. Reports Fourth Quarter and Full Year 2017 Operating Results ABOUT TRTX TPG RE Finance Trust, Inc. (NYSE:TRTX) (the “Company” or “TRTX”) is a commercial real estate finance company, operating as a real estate investment trust (“REIT”), that focuses primarily on directly ori
Slide 3: Fourth Quarter and Full Year 2017 Highlights
Fourth Quarter and Full Year 2017 Highlights 2017 Loan Investment Activity Loan Portfolio $3.73 billion, diversified loan portfolio comprised of 54 first mortgage loans and 4 mezzanine loans1 98.0% first mortgage and 2.0% mezzanine loan commitments All mezzanine loans result from the origination by
Slide 4: Fourth Quarter and Full Year 2017 Highlights
Fourth Quarter and Full Year 2017 Highlights Loan portfolio leverage3 of 66.2%, with loan portfolio weighted average cost of funds of LIBOR plus 2.45%, a decline of 4 basis points from the quarter ended September 30, 2017 $3.3 billion of financing commitments for loan investments at December 31, 201
Slide 5: Operating Performance
Operating Performance GAAP net income and Core Earnings1 of $24.8 million, or $0.41 per diluted common share, and $94.4 million, or $1.74 per diluted common share, for the quarter and year ended December 31, 2017, respectively Net interest income increased to $120.6 million, up $28.7 million, or 31.
Slide 6: Diversified Loan Portfolio
Geographic Diversity2 Diversified Loan Portfolio National, Major Market Footprint Property Diversity2 Lending Focused in Top 25 Markets Fixed vs. Floating2 Loan Category 1. Top 25 markets determined by US Census 2. By total loan commitment 3. Represents total loan commitments for the Company’s 12 co
Slide 7: Diversified Loan Portfolio
Diversified Loan Portfolio 1. See Appendix for a description of the Company’s risk rating scale 2. In-place debt yield excludes one hotel that is expected to open during the first half of 2018 3. By gross loan commitment 4. By loan carrying value 5. During the year ended December 31, 2017, the Compa
Slide 8: Q4 2017 Investment Highlights
66.8% Growth Loan Originations Q4 2017 Investment Highlights Increased Loan Originations1 Closed 7 first mortgage loans Total commitment of $494.58 million Average loan size of $70.65 million 100% Floating Rate Weighted average interest rate of LIBOR plus 4.18% Weighted average LTV of 63.7% Diversif
Slide 9: Select 4Q17 Loan Originations
Select 4Q17 Loan Originations 1. See Appendix for LTV definition Note: Select 4Q17 Loan Originations represent 62.8% of total loan originations during 4Q17 based on total commitments. See slide 8 for Loan Origination data for 4Q17 Investment: Hotel Multifamily Office $180.00M $63.00M $67.57M Charlot
Slide 10: Loan Funding Activity Through December 31, 2017
Loan Funding Activity Through December 31, 2017 Strong portfolio growth spurred by $1.95 billion of new loan commitments and an $88.43 million average loan size Loan UPB increased $727 million to $3.20 billion, an increase of 29.4% from December 31, 2016 4Q17 loan repayments of $182.66 million, cons
Slide 11: Financing Facilities as of December 31, 2017
Financing Facilities as of December 31, 2017 Total commitments of $3.3 billion1 at a weighted average cost of funds of LIBOR plus 2.45% for the loan portfolio Expanded loan portfolio financing capacity in 2017 by $622.0 million utilizing non-consolidated senior interests, note-on-note, senior secure
Slide 12: TRTX 2018-FL1
TRTX 2018-FL1 Nearly 50% of borrowings and 29% of assets are now matched-term Note Class Credit Ratings (KBRA/Moody’s) 1 Tranche Size ($M) Credit Enhancement WAL (in years) Interest Rate A AAA/Aaa $491.8 47.25% 1.44 LIBOR + 75 A-S AAA/NR 72.3 39.50% 1.73 LIBOR + 95 B AA-/NR 55.9 33.50% 1.90 LIBOR +
Slide 13: Capitalization as of December 31, 2017
Capitalization as of December 31, 2017 Current Leverage Ratio and Available Liquidity to Drive Loan Portfolio Growth 1. See Appendix for definitions of Leverage calculation, Debt-to-Equity and Total Leverage 2. Does not take into account mortgage loan repayments which may be used for new loan origin
Slide 14: Capital Deployment
Capital Deployment Strong loan origination momentum and a steady, robust pipeline increased TRTX’s Potential Gross Loan Investment Capacity Utilization Rate to 77.6% at December 31, 2017 Loan UPB $2,209.0 $2,845.7 $3,198.1 Total Stockholders’ Equity $1,004.0 $1,207.8 $1,201.3 Assumed Leverage 3:1 3:
Slide 15: Interest Rate Sensitivity
Interest Rate Sensitivity 99.9% floating rate (by total commitment) loan portfolio well positioned in a rising interest rate environment1 Net floating rate mortgage loan exposure of $1.1 billion generates an annualized increase in net interest income of approximately $5.4 million for every 50 basis
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 Year Ended Three Months Ended Dec 31, 2017 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Net Income Attributable to Common Stockholders1 $94,336 $24,754 $20,787 $25,320 $23,475
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 $188.0 $142.0 L + 4.1% 3.8 years Nashville, TN Mixed-Use3 $292 Sq. ft. 60.7% Loan 2 180.0 165.5 L + 3.8% 4.9 years Charlotte, NC Hot
Slide 19: Consolidated Balance Sheets
Consolidated Balance Sheets All amounts in thousands except share and per share amounts ASSETS December 31, 2017 December 31, 2016 Cash and Cash Equivalents $75,037 $103,126 Restricted Cash 700 849 Accounts Receivable 141 644 Accounts Receivable from Servicer/Trustee 220 34,743 Accrued Interest 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 Dec. 31, (unaudited) Year Ended Dec. 31, INTEREST INCOME 2017 2016 2017 2016 Interest Income $52,492 $41,080 $198,903 $153,631 Interest Expense (21,683) (16,706)
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 secured debt agreements (collateralized loan obligation, net), secured financing/repurchase agreements (net) and notes payable (net), less cash, to (ii) total stockholders’ equity, at period end Total Leverage - R
Slide 23: Definitions (cont.)
Definitions (cont.) In connection with any origination or co‐origination of a mezzanine loan by TRTX, the senior mortgage loan that is contemporaneously issued by the borrower to a senior mortgage lender or that is transferred by TRTX to the co‐originating senior mortgage lender. In either case, the
Slide 24: Company Information
Company Information Contact Information Headquarters: 888 Seventh Avenue 35th Floor New York, NY 10106 Investor Relations: (212) 405-8500 IR@tpgrefinance.com New York Stock Exchange: Symbol: TRTX Analyst Coverage Bank of America Merrill Lynch Kenneth Bruce (415) 676-3545 Deutsche Bank George Bahamon