Tpg Re Finance Trust, Inc. · NYSE:TRTX
Tpg Re Finance Trust — Q1 2018 Earnings Presentation
23 slides from Tpg Re Finance Trust's earnings presentation, May 7, 2018
Slide 1: First Quarter 2018 Operating Results
May 7, 2018 First Quarter 2018 Operating Results Exhibit 99.2
Slide 2: First Quarter 2018 Highlights: Loan Investment Activity
First Quarter 2018 Highlights Loan Investment Activity Loan Portfolio $4.2 billion, diversified loan portfolio comprised of 59 first mortgage loans and 3 mezzanine loans1 98.6% first mortgage and 1.4% mezzanine loan commitments 99.9% floating rate and 0.1% fixed rate mortgage loans 79.1% concentrati
Slide 3: First Quarter 2018 Highlights: Financing and Performance
First Quarter 2018 Highlights Loan portfolio leverage3 of 74.3%, with loan portfolio weighted average cost of funds of LIBOR plus 2.04%, a decline of 41 basis points from the quarter ended December 31, 2017, primarily due to the issuance of TRTX 2018-FL1 $3.9 billion of financing commitments for loa
Slide 4: Operating Performance
Operating Performance GAAP net income of $25.1 million, or $0.42 per diluted common share, and Core Earnings1 of $25.3 million, or $0.42 per diluted common share, compared to GAAP net income and Core Earnings1 of $24.8 million, or $0.41 per diluted common share, for the quarter ended December 31, 20
Slide 5: Diversified Loan Portfolio: National, Major Market Footprint
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 at March 31, 2018 3. Reflects total loan commitments for the
Slide 6: Diversified Loan Portfolio
Diversified Loan Portfolio 1. See Appendix for a description of the Company’s risk rating scale 2. In-place debt yield is based on the most recent financial information received from the borrower and excludes one hotel that is expected to open during the second quarter of 2018 3. By total loan commi
Slide 7: Loan Originations Q1 2018 Investment Highlights
Loan Originations Q1 2018 Investment Highlights Increased Quarterly Average Loan Originations1 Closed 7 first mortgage loans Total commitment of $579.2 million Average loan size of $82.7 million 100% Floating Rate Weighted average interest rate of LIBOR plus 3.76% Weighted average LTV3 of 71.3% Dive
Slide 8: Select 1Q 2018 Loan Originations
Investment: Office Multifamily Office $54.2M $165.0M $47.0M Walnut Creek, CA Various, NJ Honolulu, HI Twelve-building office campus 432,244 NSF of office 65-building portfolio 1,242 residential units 29 retail suites 288,353 NSF of office Refinance Lease-up and stabilization Refinance Lease-up and s
Slide 9: Loan Funding Activity through March 31, 2018
Loan Funding Activity through March 31, 2018 Strong portfolio growth spurred by $579.2 million of new loan commitments with an $82.7 million average loan size Asset-Level Estimated Return on Equity1 of 9.2% for first quarter 2018 loan originations Loan UPB increased $421.5 million to $3.6 billion, a
Slide 10: Loan Portfolio Financing Commitments as of March 31, 2018
Loan Portfolio Financing Commitments as of March 31, 2018 Total financing commitments of $3.9 billion1 at a weighted average cost of funds of LIBOR plus 2.04% Closed in February 2018 TRTX 2018-FL1, a $932.4 million CLO, financing one first mortgage whole loan and 25 pari passu first mortgage loan in
Slide 11: Capital Deployment
Capital Deployment Sustained Capital Deployment Provides for Portfolio Growth & Attractive Asset-Level Returns 1. See Appendix for definitions, including definitions of Debt-to-Equity and Total Leverage 2. Outstanding total loan commitments as of the reporting date 3. Does not take into account near
Slide 12: 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 $1.0 billion generates an annualized increase in net interest income of approximately $5.2 million for every 50 basis
Slide 13: Appendix
Appendix
Slide 14: 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) Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Net Income Attributable to Common Stockholders1 $25,111 $24,754 $20,787 $25,320 Weighted-Average Num
Slide 15: 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% 3.5 years Nashville, TN Mixed-Use3 $292 Sq. ft. 60.7% Loan 2 180.0 167.5 L + 3.8% 4.6 years Charlotte, NC Hot
Slide 16: Consolidated Balance Sheets
ASSETS March 31, 2018 December 31, 2017 Cash and Cash Equivalents $74,382 $75,037 Restricted Cash 400 700 Accounts Receivable 141 141 Accounts Receivable from Servicer/Trustee 1,219 220 Accrued Interest Receivable 18,769 16,861 Loans Held for Investment (includes $2,159,565 and $2,694,106 pledged as
Slide 17: Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income and Comprehensive Income All amounts in thousands except share and per share amounts (unaudited) Three Months Ended, INTEREST INCOME Mar 31, 2018 Mar 31, 2017 Interest Income $59,365 $47,941 Interest Expense (25,998) (17,800) Net Interest Income 33,367 30,141 OTHER
Slide 18: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows All amounts in thousands (unaudited) Three Months Ended, March 31, 2018 March 31, 2017 Cash Flows from Operating Activities: Net Income $25,114 $23,475 Adjustment to Reconcile Net Income to Net Cash Provided by Operating Activities: Amortization and Accretion of
Slide 19: 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 20: 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 21: 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 22: Forward-Looking Statements
Forward-Looking Statements 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 forward‐looking statements a
Slide 23: Company Information
Company Information Contact Information Headquarters: 888 Seventh Avenue 35th Floor New York, NY 10106 Investor Relations: (212) 405-8500 IR@tpgrefinance.com Media Contact: TPG RE Finance Trust Luke Barrett (415) 743-1550 media@tpg.com New York Stock Exchange: Symbol: TRTX Analyst Coverage Bank of A