Tpg Re Finance Trust, Inc. · NYSE:TRTX
Tpg Re Finance Trust — Q1 2020 Earnings Presentation
25 slides from Tpg Re Finance Trust's earnings presentation, May 11, 2020
Slide 1: First Quarter 2020 Supplemental Information
May 11, 2020 First Quarter 2020 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: 1Q 2020 Activity
1Q 2020 Activity Financial Investment Activity Total Portfolio Liquidity & Capitalization 1. See Appendix for definitions, including definitions of Core Earnings (reconciliation to GAAP net loss), LTV, and Loan Risk Rating. GAAP net income defined as GAAP net loss attributable to common stockholders
Slide 4: Business Update
Business Update Sold entire investment portfolio of CRE Debt Securities and retired all associated liabilities by April 30, 2020 Investment portfolio was 100% loans as of April 30, 2020 Retained Houlihan Lokey, Inc. to advise on capital raise to bolster liquidity and capital base Negotiating with cr
Slide 5: Loan Portfolio
Loan Portfolio Loan Investment Activity Loan Portfolio 1. See Appendix for definitions, including definitions of LTV, Loan Risk Rating, and Asset-Level Estimated Return on Equity (“ALEROE”) 2. ALEROE with respect to certain loan investments reflects initial financing terms at loan closing. The Compa
Slide 6: 1Q Operating Performance
1Q Operating Performance Financial Performance Performance Metric March 31, 2020 December 31, 2019 QoQ Change GAAP net income (loss) attributable to common stockholders $(233.1) million / $(3.05) per share $32.6 million / $0.44 per share (815.0%) / (793.2%) Core Earnings1 $(168.3) million / $(2.20)
Slide 7: Book Value Walk 1Q 2020
Book Value Walk 1Q 2020 1Q CECL reserve reflects the macroeconomic impact of COVID-19 Aggregate loss from realized losses and impairment charge attributable to bond investments was $203.5M ($2.65 per share) $19.78 $0.01 $0.44 ($0.43) $0.01 $19.81 ($0.26) ($0.83) $18.72 Change in Book Value Per Share
Slide 8: Loan Originations 1Q 2020 Investment Highlights
Loan Originations 1Q 2020 Investment Highlights Closed 5 first mortgage loans Total commitments of $437.4 million Initial fundings of $353.5 million Average loan size of $87.5 million1 100% Floating Rate Weighted average interest rate of LIBOR plus 2.84% Weighted average LIBOR floor of 1.62% Weighte
Slide 9: Select 1Q 2020 Loan Originations
Select 1Q 2020 Loan Originations 1. See Appendix for definitions, including LTV and Loan Category definitions 2. In-place debt yield for loans originated during the three months ended March 31, 2020 is defined as the ratio of in-place net cash flow (annualized) divided by the initial funding amount,
Slide 10: National, Major Market Footprint
National, Major Market Footprint2 Lending Focused in Top 25 Markets1 Top 25 Markets Account for 84.8% of Total Loan Commitments Loan Category Geographic Diversity Diversified Loan Portfolio Property Diversity2 1. Top 25 markets determined by US Census. Portfolio loans with collateral properties that
Slide 11: Risk Ratings Update
Risk Ratings Update Loan commitments and UPB increased to $5.8 billion, or 2.4% QoQ, and $5.1 billion, or 2.3% QoQ, respectively Weighted average loan portfolio risk rating of 3.1 as of March 31, 2020 9 hotel loans moved to a 4 risk rating, reflecting the immediate effects of COVID-19 Risk Ratings –
Slide 12: Financing Overview
Financing Overview 1. Total Financing Utilization relates only to the financing of the Company’s loan investments. Excludes items related to CRE Debt Securities investments. Borrowings are 25% recourse to TPG RE Finance Trust Holdco, LLC. Totals may not sum due to rounding 2. Borrowings are 100% rec
Slide 13: Secured Financing Arrangements – Loan Investments
Secured Financing Arrangements – Loan Investments Secured Repurchase Agreements $3,339.5 $1,834.6 78.7% 65.9% 51.9% 1.70% Senior Secured Facility $500.0 $145.6 80.0% 73.6% 58.9% 1.75% Table Funding Facility $160.0 $62.6 70.0% 75.5% 52.9% 2.25% Subtotal $3,999.5 $2,042.8 78.6% 66.8% 52.4% 1.72% Term
Slide 14: Interest Rate Sensitivity
Interest Rate Sensitivity 100% floating rate loan portfolio benefits from contractual interest rate floors on our loans with a weighted average strike LIBOR rate of 1.66% portfolio-wide, and the absence of non-zero LIBOR floors on 95.4% of our liabilities Net floating rate mortgage loan exposure of
Slide 15: Appendix
Appendix
Slide 16: 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, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Net Income (Loss) Attributable to Common Stockholders1 $(233,061) $32,618 $32,909 $31,827 Weighted-A
Slide 17: 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 $350.8 $318.8 L+ 2.9% 4.4 years New York, NY Office $692 Sq. ft. 72.8% Loan 2 $223.0 $169.0 L+ 3.4% 4.4 years Atlanta, GA Office $21
Slide 18: Consolidated Balance Sheets
All amounts in thousands except share and per share amounts ASSETS March 31, 2020 (unaudited) December 31, 2019 Cash and Cash Equivalents $103,622 $79,182 Restricted Cash 910 484 Accounts Receivable 6 2,344 Accounts Receivable from Servicer/Trustee 35,448 13,741 Accrued Interest and Fees Receivable
Slide 19: 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 March 31 is unaudited) Three Months Ended March 31, INTEREST INCOME 2020 2019 Interest Income $81,749 $76,601 Interest Expense (38,457) (39,367) Net Interest Inc
Slide 20: Consolidated Statements of Cash Flows
Cash Flows from Operating Activities: Mar 31, 2020 March 31, 2019 Net Income (Loss) $(232,790) $28,412 Adjustment to Reconcile Net Income to Net Cash Provided by Operating Activities: Amortization and Accretion of Premiums, Discounts and Loan Origination Fees, net (3,194) (3,627) Amortization of Def
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 financing arrangements, net, including collateralized loan obligations, secured revolving repurchase agreements, senior secured and secured credit agreements, and an asset-specific financing agreement, less cash,
Slide 23: Definitions (cont.)
Definitions (cont.) 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 related business plan generally involves li
Slide 24: Definitions (cont.) Loan Risk Ratings
Definitions (cont.) Loan Risk Ratings Using on a 5-point scale, TRTX’s loans are rated “1” through “5,” from least risk to greatest risk, respectively, on a quarterly basis. The loan risk ratings are defined as follows: 1: Outperform—Exceeds performance metrics (for example, technical milestones, oc
Slide 25: Company Information
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 & Risk Officer +1 (212) 430-4111 bfoley@tpg.com Investor Relations: +1 (212) 405-8500 IR@tpgrefinance.com