Tpg Re Finance Trust, Inc. · NYSE:TRTX
Tpg Re Finance Trust — FY2021 Earnings Presentation
28 slides from Tpg Re Finance Trust's earnings presentation, Feb 22, 2022
Slide 1: Fourth Quarter and Full Year 2021 Supplemental Information
February 22, 2022 Fourth Quarter and Full Year 2021 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: $5.4 billion Investment Portfolio
3 TPG RE Finance Trust, Inc. $5.4 billion Investment Portfolio 1. See Appendix for definitions, including LTV and Total Leverage Ratio 2. Includes one non-consolidated senior interest of $132.0 million; See Appendix for definitions, including non-consolidated senior interest 3. See page 5 for additi
Slide 4: Operating Performance and Dividend Coverage
4 Operating Performance and Dividend Coverage FY 2021 Ratio of Distributable Earnings2 to Common Dividend 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) t
Slide 5: Liquidity and Leverage
Liquidity and Leverage Available Liquidity Leverage Ratios2 1. Cash held to satisfy liquidity covenants under secured credit agreements 2. See Appendix for definitions of Debt-to-Equity Ratio and Total Leverage Ratio Note: Totals may not sum due to rounding 12/31/2020 5 TPG RE Finance Trust, Inc.| 4
Slide 6: Book Value Walk 4Q 2021
6 Book Value Walk 4Q 2021 1. Does not reflect dilutive impact of 12M warrants held by an affiliate of Starwood Capital Group 2. Impact of an $8.2 million partial write-off of a loan held for investment (recognized as a partial worthlessness deduction for income tax purposes) related to a non-perform
Slide 7: Loan Portfolio Overview
7 Loan Portfolio Overview Property Type Migration (as a % of Total Loan Commitments) Future Funding as a Percentage of Total Loan Commitments TPG RE Finance Trust, Inc.| 4Q & FY 2021 1. Includes an $8.2 million partial write-off of a loan held for investment (recognized as a partial worthlessness de
Slide 8: Top Markets Account for 82.7% of Total Loan Commitments
Top 25 Markets Account for 82.7% of Total Loan Commitments Diversified Loan Portfolio 1. Top 25 markets determined by US Census. Portfolio loans with collateral properties that are located in different MSAs are classified in the market designation with over 50% of underlying loan collateral by unpai
Slide 9: Multifamily and Office Loan Overview
Multifamily and Office Loan Overview Office 41.9% of the Company’s total loan commitments at December 31, 2021 93.1% in Top 25 US MSAs / 75.3% in Top 10 66.6% Weighted Average LTV1 $103.0M Average Loan Size 100% Interest Collections in FY 2021 Multifamily 1. See Appendix for definitions, including L
Slide 10: FY 2021 Loan Activity
10 FY 2021 Loan Activity 36% of total loan portfolio commitments were originated in FY 2021 Originated 27 first mortgage loans with total loan commitments of $1,932.3 million and initial fundings of $1,632.6 million YTD Loan Funding Activity ($ in millions) 1. UPB includes accrued PIK interest of: $
Slide 11: 4Q & FY 2021 Loan Originations
11 4Q & FY 2021 Loan Originations 4Q 2021 Investment Highlights1,2 73.3% of 2021 originations in top 25 MSAs Increased exposure to Western US markets Reduced exposure to Eastern US markets Continued focus on MFR FY 2021 Originations vs. Total Portfolio Geographic Diversity as % of Total Loan Commitm
Slide 12: Select 4Q21 Loan Originations
12 Select 4Q21 Loan Originations Commitment Location Collateral Borrower Business Plan LTV / In-Place Debt Yield1,2 Loan Category1 Property Photos Investment Date 1. See Appendix for definitions, including LTV and Loan Category 2. In-place debt yield for loans originated during 4Q21 is defined as th
Slide 13: Risk Ratings
Risk Ratings 1. See Appendix for a description of the Company’s Loan Risk Rating scale Note: Totals may not sum due to rounding Stable Risk Ratings1 $58.7 $83.0 $59.3 $62.8 By Amortized Cost By Amortized Cost $58.8 ($ in millions) Trailing 4 Quarter Average: 103 bps of Total Loan Commitment bps of T
Slide 14: Loan Financing Overview
Loan Financing Overview 1. Includes one non-consolidated senior interest of $132.0 million; See Appendix for definitions, including non-consolidated senior interest 2. Omits the impact of floors on approximately 2% of our financing 3. Represents capacity available to be borrowed provided we pledge,
Slide 15: Capital Structure Overview
Capital Structure Overview $194.4 (4%) $1,251.0 (24%) Series C Preferred Stock Common Equity at Book Value Capital Stack Composition Capital Structure Detail ($ in millions) 1. Includes one secured credit facility which may be re-margined beginning after its second anniversary date on October 30, 20
Slide 16: Interest Rate Sensitivity
16 Interest Rate Sensitivity LIBOR = 0.00% LIBOR as of 12/31/2021 0.10% 0.25% 0.50% 0.75% 1.00% Portfolio Income Sensitivity ($ Impact per Share per Quarter)1 LIBOR 100% of the loan portfolio is indexed to one-month USD LIBOR as of December 31, 2021 Net interest margin (“NIM”) currently benefits fro
Slide 17: Portfolio Floor Migration
17 Portfolio Floor Migration FY 2021 full loan repayments and sales totaled $1.3 billion and had a weighted average floor of 1.85% FY 2021 loan originations totaled $1.6 billion and have a weighted average floor of 0.16% 1. Initial funding amounts at the transaction close date; subsequent loan fundi
Slide 18: Appendix
Appendix
Slide 19: TRTX Loan Portfolio
19 TRTX Loan Portfolio 1. Represents TRTX’s potential maximum loan commitment/balance 2. Represents TRTX’s current loan balance and excludes third party pari passu and junior positions in the same capital structure, if any 3. See Appendix for a description of the Company’s Loan Risk Rating scale and
Slide 20: Per Share Calculations and Reconciliation of Distributable Earnings
20 Per Share Calculations Reconciliation of Net Income Attributable to Common Stockholders and Distributable Earnings 1. Includes preferred stock dividends declared and paid for Series A preferred stock, Series C Preferred Stock, and Series B Preferred Stock shares outstanding for the three months a
Slide 21: Consolidated Balance Sheets
All amounts in thousands except share and per share amounts 21 Consolidated Balance Sheets TPG RE Finance Trust, Inc.| 4Q & FY 2021
Slide 22: Consolidated Statements of Income and Comprehensive Income
22 Consolidated Statements of Income and Comprehensive Income All amounts in thousands except share and per share amounts (unaudited) TPG RE Finance Trust, Inc.| 4Q & FY 2021
Slide 23: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows All amounts in thousands Year Ended 23 TPG RE Finance Trust, Inc.| 4Q & FY 2021
Slide 24: 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, regardless of whether such items are included in other comprehensive income or loss, or in GAAP net income (loss), and exc
Slide 25: Definitions (cont.)
Definitions (cont.) Fundings to borrowers that are made under existing loan commitments after loan closing date Deferred Fundings Geographic Diversity TRTX provides herein additional detail by splitting the South region into separate Southeast and Southwest regions using definitions established by T
Slide 26: Definitions (cont.)
Definitions (cont.) 26 TPG RE Finance Trust, Inc.| 4Q & FY 2021 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
Slide 27: Definitions (cont.)
Definitions (cont.) 27 TPG RE Finance Trust, Inc.| 4Q & FY 2021 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 collateral property’s total value. In certain insta
Slide 28: 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