Tpg Re Finance Trust, Inc. · NYSE:TRTX
Tpg Re Finance Trust — Q2 2025 Earnings Presentation
28 slides from Tpg Re Finance Trust's earnings presentation, Jul 29, 2025
Slide 1: TPG RE Finance Trust Reports Operating Results for Quarter Ended June 30, 2025
TPG RE Finance Trust, Inc. Reports Operating Results for the Quarter Ended June 30, 2025 July 29, 2025 NEW YORK--(BUSINESS WIRE)--TPG RE Finance Trust, Inc. (NYSE: TRTX) (“TRTX” or the “Company”) reported its operating results for the quarter ended June 30, 2025. Regarding second quarter results, Do
Slide 2: Subsequent Events
SUBSEQUENT EVENTS • Closed, or are in the process of closing, two first mortgage loans with aggregate total loan commitments of $112.3 million, aggregate initial fundings of $110.0 million, a weighted average interest rate of Term SOFR + 3.04%, and a weighted average as-is loan-to-value ratio of 71.
Slide 3: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This earnings release 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 are subject to various risks and un
Slide 4: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation Distributable Earnings 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 from loan write-offs, loan sales and other loan resolutions (includin
Slide 5: Second Quarter 2025 Supplemental Information
Second Quarter 2025 Supplemental Information July 29, 2025
Slide 6: Forward-Looking Statements and Other Disclosures
Forward-Looking Statements and Other Disclosures 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 Exchange Act of 1934, as amended (the “Exchange Act”), which reflect our current views
Slide 7: TRTX By the Numbers
TRTX By the Numbers Loan Portfolio1 Liquidity & Capitalization Dividend & Earnings $3.9 billion $236.4 million $0.24 5 Loan Investment Portfolio of Liquidity 2Q25 Common Stock Dividend Declared $79.6 million 94.8% 2.6x $0.21 $0.24 100% 2Q25 Distributable Average Loan Size Non-Mark-to-Market Debt-to-
Slide 8: 2Q25 Operating Results
2Q25 Operating Results Net Income Distributable Earnings ($ in millions) Attributable to Common Adjustments Distributable Earnings2 per Common Share, Stockholders1 Diluted Interest Income $70.7 $— $70.7 $0.88 $0.21 GAAP Income per Interest Expense (45.5) — (45.5) (0.57) Diluted Share1 Net Interest I
Slide 9: Liquidity and Leverage
Liquidity and Leverage Available Liquidity ($ in millions) Leverage Ratios3,4 1 Covenant Cash 2 Cash Debt-to-Equity Ratio Total Leverage Ratio Undrawn Capacity CLO Reinvestment Cash $457.6 2.63x 2.63x $69.2 30% $357.0 $25.4 2.23x 2.23x 2.14x 2.14x $320.8 2.02x 2.02x $130.7 $130.6 $236.4 $1.8 $68.8 $
Slide 10: Loan Portfolio
Loan Portfolio Portfolio Metrics Loan Category4,5 Total Loan Commitments $3.9B Outstanding Principal Balance $3.8B Light MSA Concentrations (Top 25 / Top 10)1 58.5% / 34.3% Transitional 23.5% Weighted Average All-in Yield2 8.04% Bridge 51.7% Weighted Average Credit Spread 3.48% Moderate Weighted Ave
Slide 11: Loan Portfolio Composition
Loan Portfolio Composition ▪ 2Q25 total loan originations of $695.6 million, with a weighted average interest rate of Term SOFR + 2.86% and as-is LTV of 67.6% ▪ 2Q25 total loan repayments of $172.3 million, including full repayments of $147.4 million and partial repayments of $24.9 million 2025 Loan
Slide 12: Loan Portfolio Walk
Loan Portfolio Walk TTM Loan Originations of $1.1 billion Drive Net Asset Growth Total Loan Commitments1 Unpaid Principal Balance Deferred Fundings and New Loan Originations2 Repayments/Sales/ Unfunded Loan Commitments REO Conversion $670.5 $3,899.3 ($172.3) $116.4 $225.2 $199.8 $3,386.1 $3,412.0 $3
Slide 13: Risk Ratings
Risk Ratings Dispersion of Risk Ratings1 Trailing 4 Stable Risk Ratings1 by Amortized Cost ($ in millions) Quarter By Amortized Cost Average: June 30, 2025 March 31, 2025 3.02 3.05 3.02 3.02 3.01 $3,593.0 $3,091.1 2Q 2025 Loan Count: 49 1Q 2025 Loan Count: 45 46 42 9/30/2024 12/31/2024 3/31/2025 6/3
Slide 14: CECL Reserve
CECL Reserve ▪ Carried at quarter-end an allowance for credit losses of $68.8 million, an increase of $1.6 million from $67.2 million as of March 31, 2025 QoQ CECL Reserve Reserve as bps of Total Loan Commitments1 Reserve as $M General Reserve Specifically Identified Loans General Reserve Specifical
Slide 15: Loan Financing
Loan Financing Diverse Financing Sources 95% Non-MTM Financing1 Total Financing Capacity $4.7B 1.0% 5.2% Outstanding Principal Balance $3.0B Secured Credit Agreements (Credit MTM) 12.2% Asset-Specific Financing Sources of Financing 9 Secured Revolving Credit Facility Non-MTM Non-Mark-to-Market 94.8%
Slide 16: Real Estate Owned
Real Estate Owned ▪ Real Estate Owned portfolio with a total acquisition date fair value of $247.9 million, current carrying value of $237.1 million, and net book equity of $205.9 million as of June 30, 2025 ▪ Sold two office properties during 2Q25 for net proceeds of $39.4 million, resulting in a g
Slide 17: Impact of Changing Rates
Impact of Changing Rates Portfolio Net Interest Income Sensitivity ($ Impact per Share per Quarter)1 0.03 Index Rate at June 30, 2025 Term SOFR: 4.32% $0.02 0.02 $0.01 0.01 $0.00 0.00 (0.01) ($0.01) (0.02) ($0.02) (0.03) - 1.00% - 0.50% 0.00% + 0.50% + 1.00% Change in Index Rate 1. Static analysis b
Slide 18: Appendix
Appendix TPG RE Finance Trust, Inc.| 4Q 2022
Slide 19: TRTX Loan Portfolio
TRTX Loan Portfolio $ Millions Commitment TRTX Loan TRTX Loan Extended Property Per Sq. ft. / Loan Name Commitment1 Balance2 Interest Rate Maturity Location Type Unit LTV3 Risk Rating3 Loan 14 $256.3 $253.4 S + 3.6% 2.1 years San Jose, CA Multifamily $444,646 / Unit 72.6% 3 5 Loan 2 $227.1 $227.1 S
Slide 20: Per Share Calculations
Per Share Calculations ▪ The following tables provide a reconciliation of GAAP net income to GAAP Net Income Attributable to Common Stockholders and Distributable Earnings (in thousands, except share and per share data): Three Months Ended (unaudited) Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2
Slide 21: Consolidated Balance Sheets
Consolidated Balance Sheets All amounts in thousands except share and per share amounts June 30, 2025 December 31, 2024 ASSETS Cash and cash equivalents $165,850 $190,160 Restricted cash 572 323 Accounts receivable 10 10 Collateralized loan obligation proceeds held at trustee 1,778 — Accounts receiv
Slide 22: 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 June 30, Six Months Ended June 30, 2025 2024 2025 2024 Interest income and interest expense Interest income $70,668 $78,115 $138,713 $160,299 Interest expense (45
Slide 23: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows All amounts in thousands Six Months Ended June 30, 2025 June 30, 2024 Cash flows from operating activities: Net income $34,350 $41,459 Adjustment to reconcile net income to net cash flows from operating activities: Amortization and accretion of premiums, discoun
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 from loan write-offs, loan sales and other loan resolutions (including conversions to REO), regardless of whether such it
Slide 25: Definitions (cont.)
Definitions (cont.) Deferred Fundings ▪ Fundings to borrowers that are made under existing loan commitments after a loan closing date. ▪ Our financial covenants and guarantees for outstanding borrowings related to our secured financing agreements require TPG RE Finance Trust Holdco, LLC, a Delaware
Slide 26: Definitions (cont.)
Definitions (cont.) ▪ Debt-to-Equity Ratio - Represents (i) total outstanding borrowings under secured financing arrangements, including collateralized loan obligations, secured credit agreements, asset-specific financing arrangements, a secured revolving credit facility, and mortgage loans payable,
Slide 27: Definitions (cont.)
Definitions (cont.) ▪ 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 instances, TRTX’s classification may be determined by its asse
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