Tpg Re Finance Trust, Inc. · NYSE:TRTX
Tpg Re Finance Trust — Q3 2018 Earnings Presentation
24 slides from Tpg Re Finance Trust's earnings presentation, Nov 5, 2018
Slide 1: Third Quarter 2018 Operating Results
November 5, 2018 Third Quarter 2018 Operating Results Exhibit 99.2
Slide 2: 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 3: Highlights: Loan Investment Activity and Loan Portfolio
Highlights Loan Investment Activity Loan Portfolio $4.7 billion, diversified loan portfolio comprised of 62 mortgage loans 100.0% first mortgage loan commitments 100.0% floating rate loan commitments Average loan size of $75.9 million 79.5% concentration in the Top 25 MSAs in the United States; 66.5
Slide 4: Highlights: Financial Performance and Capitalization
Highlights Financial Performance Capitalization Performance Metric Quarter ended 9/30/18 Quarter ended 6/30/18 GAAP net income $26.8 million ($0.42 / share) $26.4 million ($0.44 / share) Core Earnings1 $26.9 million ($0.42 / share) $26.6 million ($0.44 / share) Cash dividends declared $28.9 million
Slide 5: Operating Performance
$0.42 $0.43 $0.43 Operating Performance Net interest income increased to $35.6 million, up $1.1 million, or 3.2%, from the quarter ended June 30, 2018, due primarily to loan portfolio growth, increased LIBOR and a lower cost of funds Declared cash dividends of $0.43 per common share during the quart
Slide 6: Operating Results and Book Value per Common Share
Operating Results and Book Value per Common Share 1. See Appendix for Core Earnings definition and reconciliation to GAAP net income. Note: Totals may not sum due to rounding. Amounts shown in thousands, except share and per share data. Per Share Amount GAAP Net Income and Core Earnings - 2Q181 $0.4
Slide 7: Diversified Loan Portfolio: Geographic and Property Diversity
Geographic Diversity2 Diversified Loan Portfolio National, Major Market Footprint Property Diversity2 Lending Focused in Top 25 Markets1 Fixed vs. Floating2 Loan Category 1. Top 25 markets determined by US Census. 2. By total loan commitment at September 30, 2018. 3. Reflects total loan commitments
Slide 8: Diversified Loan Portfolio
Diversified Loan Portfolio 1. See Appendix for a description of the Company’s risk rating scale and definition of Loan Category and Property Type. 2. By total loan commitment. 3. By loan carrying value. Note: Totals may not sum due to rounding. Year-to-Date Growth by Loan and Property Type1,2 100% P
Slide 9: Loan Originations 3Q18 Investment Highlights
Loan Originations 3Q18 Investment Highlights Closed 7 first mortgage loans Total commitments of $709.5 million Average loan size of $101.4 million1 100% Floating Rate Weighted average interest rate of LIBOR plus 4.03% Weighted average LTV of 60.6%2 Property types: Office: 31.4% Mixed-Use: 30.3% Cond
Slide 10: Select 3Q 2018 Loan Originations
Office Mixed Use Retail $223.0M $160.0M $59.0M Atlanta, GA Houston, TX Parma, OH 1,040,327 SF 5-building office portfolio 199 luxury multifamily units 186,489 SF of Class A office 61,476 SF of retail 727,000 SF grocery anchored shopping center Facilitate acquisition and fund future lease-up Complete
Slide 11: Loan Funding Activity through September 30, 2018
Loan Funding Activity through September 30, 2018 Strong portfolio growth spurred by $709.5 million of new loan commitments with a $101.4 million average loan size Loan UPB grew $980.6 million to $4.2 billion, an increase of 30.7% from December 31, 2017 3Q18 loan repayments of $289.8 million, includi
Slide 12: Loan Portfolio Financing as of September 30, 2018
Loan Portfolio Financing as of September 30, 2018 1. Total Loan Portfolio Financing Commitments and Financing Utilization relates only to the financing of the Company’s loan investments. 2. Borrowings are 100% recourse to the Company. Note: Excludes items related to CMBS investments. Totals may not
Slide 13: 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 ne
Slide 14: Interest Rate Sensitivity
Interest Rate Sensitivity 100% floating rate loan portfolio well positioned in a rising interest rate environment1 Net floating rate mortgage loan exposure of $1.3 billion generates an annualized increase in net interest income of approximately $6.4 million for every 50 basis point increase in 1-mon
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) Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Net Income Attributable to Common Stockholders1 $26,797 $26,438 $25,111 $24,754 Weighted-Average Num
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 $223.0 $167.0 L + 3.4% 5.9 years Atlanta, GA Office $214 Sq. ft. 61.4% Loan 2 $190.0 177.0 L + 2.7% 4.8 years Philadelphia, PA Offic
Slide 18: Consolidated Balance Sheets
ASSETS September 30, 2018 (unaudited) December 31, 2017 Cash and Cash Equivalents $46,203 $75,037 Restricted Cash 250 700 Accounts Receivable 38 141 Accounts Receivable from Servicer/Trustee 2,547 220 Accrued Interest Receivable 19,338 16,861 Loans Held for Investment (includes $3,035,098 and $2,694
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 (unaudited) Three Months Ended Sep 30, Nine Months Ended Sep 30, INTEREST INCOME 2018 2017 2018 2017 Interest Income $69,863 $46,734 $193,921 $146,411 Interest Expense (34,297) (19,
Slide 20: Consolidated Statements of Cash Flows
Nine Months Ended, Cash Flows from Operating Activities: September 30, 2018 September 30, 2017 Net Income $78,376 $69,594 Adjustment to Reconcile Net Income to Net Cash Provided by Operating Activities: Amortization and Accretion of Premiums, Discounts and Loan Origination Fees, net (11,867) (15,867
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.) Mixed-Use Loan 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 a
Slide 24: 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. Robert Foley Chief Financial & Risk Officer (212) 430-4111 bfoley@tpg.com Investor Relations: (212) 405-8500 IR@tpgrefinance.com Med