Tpg Re Finance Trust, Inc. · NYSE:TRTX
Tpg Re Finance Trust — Q1 2022 Earnings Presentation
27 slides from Tpg Re Finance Trust's earnings presentation, May 3, 2022
Slide 1: First Quarter 2022 Supplemental Information
May 3, 2022 First Quarter 2022 Supplemental Information Exhibit 99.2
Slide 2: Forward-Looking Statements and Other Disclosures
Forward-Looking Statements and Other Disclosures TPG RE Finance Trust, Inc.| 1Q 2022 This presentation contains, and our officers and representatives may make, “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities
Slide 3: $5.6 billion Investment Portfolio
TPG RE Finance Trust, Inc. $5.6 billion Investment Portfolio 1. Calculated using the combination of credit spread plus the greater of the current index rate or the index rate floor on a loan-by-loan basis 2. See Appendix for definitions, including LTV and Total Leverage Ratio 3. Includes one non-con
Slide 4: Operating Performance and Common Dividend Coverage
Operating Performance and Common Dividend Coverage 1. Refer to Appendix for reconciliation from GAAP Net Income (Loss) to Net Income (Loss) Attributable to Common Stockholders 2. Refer to Appendix for reconciliation from GAAP Net Income (Loss) to Distributable Earnings 3. Includes special dividend d
Slide 5: Liquidity and Leverage
Liquidity and Leverage Available Liquidity ($ in millions) 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 TPG RE Finance Trust, Inc.
Slide 6: Book Value Walk 1Q 2022
Book Value Walk 1Q 2022 1. Does not reflect dilutive impact of 12M outstanding warrants. Each warrant entitles the holder thereof to purchase one share of our common stock for $7.50 per share, subject to adjustment. The warrants are exercisable on a net settlement basis, such that the holder of the
Slide 7: Loan Portfolio Overview
Loan Portfolio Overview Office – Traditional Property Type Migration1 TPG RE Finance Trust, Inc.| 1Q 2022 Loan Investment Portfolio 1Q22 4Q21 QoQ Change Total Loan Commitments $5,593.3M $5,411.9M 3.4% Unpaid Principal Balance $5,125.2M $4,919.3M 4.2% Average Loan Size $76.6M $78.4M (2.3%) MSA Concen
Slide 8: National, Major Market Footprint
National, Major Market Footprint1 Lending Focused in Top 25 Markets4 Top 25 Markets Account for 80.2% of Total Loan Commitments Loan Category Geographic Diversified Loan Portfolio Property1,3 1. By total loan commitment at March 31, 2022 2. Includes Condominium and Retail properties totaling 0.9% of
Slide 9: Multifamily and Office Loan Overview
Multifamily and Office Loan Overview Office 39.6% of total loan commitments at March 31, 2022 93.0% in Top 25 US MSAs / 75.3% in Top 10 66.6% Weighted Average LTV1 Office loans comprised 4.4% of TTM Originations 100% Interest Collections in 1Q22 Multifamily 1. See Appendix for definitions, including
Slide 10: Loan Portfolio Walk
Loan Portfolio Walk 1. Loan commitments exclude (1) capitalized interest resulting from previously modified loans of $2.7 million as of March 31, 2022, $3.0 million as of December 31, 2021, $3.5 million as of September 30, 2021, $4.2 million as of June 30, 2021, and $5.5 million as of March 31, 2021
Slide 11: 1Q 2022 Loan Originations
1Q 2022 Loan Originations Investment Highlights1 5 first mortgage loans Total commitments of $233.0M Initial fundings of $224.6M Average loan size of $46.6M 100% floating rate Weighted average interest rate of Term SOFR+ 3.56% Weighted average interest rate floor of 5 bps Weighted Average LTV of 69.
Slide 12: Select 1Q22 Loan Originations
Select 1Q22 Loan Originations Industrial Multifamily Industrial $70.0M $58.0M $43.0M Various1 Hampton, VA Various, SC2 5-property, 377k SF, industrial portfolio comprised of buildings in CA, TX, WA and MA 287-unit, midrise multifamily apartment community comprised of seven buildings with 414 parking
Slide 13: Risk Ratings
Risk Ratings Note: Totals may not sum due to rounding Stable Risk Ratings Risk Ratings Migration Weighted Average Rating of 3.1 $0.0 Risk Ratings – 3/31/2022 By Amortized Cost ($ in millions) Total: $5,115.8 Loan Count: 73 53 14 By Amortized Cost Start of Period 3.1 3.1 3.1 3.0 Repayments/ Sales 3.1
Slide 14: Loan Financing Overview
Loan Financing Overview 1. Represents capacity available to be borrowed provided we pledge, and the lender approves, additional collateral assets 2. Non-MTM financing providing the Company with interim financing of eligible loans for up to 180 days at an initial advance rate of 75.0%, which declines
Slide 15: Capital Structure
Capital Structure $194.4 (3%) $1,273.5 (23%) Series C Preferred Stock Common Equity at Book Value ($ in millions) Maximum Capacity Maximum Capacity W.A. Approved Advance Rate Look-Through LTV W.A. Cost of Funds W.A. Maturity Outstanding at 3/31/21 Secured Credit Agreements (MTM) $3,239.5 $2,934.0 75
Slide 16: Positioned for Rising Rates
Positioned for Rising Rates + 0.50% + 1.00% + 2.00% + 3.00% Portfolio Net Interest Income Sensitivity ($ Impact per Share per Quarter)1 Interest Rate 1. Static analysis based on loan portfolio composition as of 1Q 2021 and 1Q 2022 TPG RE Finance Trust, Inc. - 0.25% TPG RE Finance Trust, Inc.| 1Q 202
Slide 17: Appendix
Appendix
Slide 18: TRTX Loan Portfolio
TRTX Loan Portfolio Loan Name TRTX Loan Commitment1 TRTX Loan Balance2 Interest Rate3 Extended Maturity Location Property Type Commitment Per Sq. ft. / Unit LTV4 Risk Rating4 Loan 1 $290.8 $288.6 L + 1.6% 2.4 years New York, NY Office $574 Sq. ft. 65.2%5 3 Loan 2 $223.0 $180.4 L + 3.4% 2.4 years Bro
Slide 19: Per Share Calculations
Per Share Calculations Reconciliation of Net Income Attributable to Common Stockholders and Distributable Earnings Three Months Ended (unaudited) Three Months Ended (unaudited) March 31, 2022 Dec 31, 2021 Sep 30, 2021 June 30, 2021 Net Income (Loss) $23,781 $44,878 $29,325 $32,391 Preferred Stock Di
Slide 20: Consolidated Balance Sheets
ASSETS March 31, 2022 December 31, 2021 Cash and Cash Equivalents $351,572 $260,635 Restricted Cash 847 404 Accounts Receivable 127 12 Collateralized Loan Obligation Proceeds Held at Trustee 260 204 Accounts Receivable from Servicer/Trustee 745 176 Accrued Interest and Fees Receivable 29,559 26,620
Slide 21: 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, INTEREST INCOME 2022 2021 Interest Income $61,017 $58,148 Interest Expense (22,501) (20,290) Net Interest Income 38,516 37,858 OTHER REVENUE Other Incom
Slide 22: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows All amounts in thousands Three Months Ended March 31, TPG RE Finance Trust, Inc.| 1Q 2022 Cash Flows from Operating Activities: March 31, 2022 March 31, 2021 Net Income $23,781 $31,955 Adjustment to Reconcile Net Income (Loss) to Net Cash Flows from Operating Ac
Slide 23: Definitions
Definitions Distributable Earnings is a non-GAAP measure defined 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 excluding (i
Slide 24: Definitions (cont.)
Definitions (cont.) Fundings to borrowers that are made under existing loan commitments after a loan closing date Deferred Fundings Geographic Diversity TRTX divides the South region into separate Southeast and Southwest regions using definitions established by The National Council of Real Estate In
Slide 25: Definitions (cont.)
Definitions (cont.) TPG RE Finance Trust, Inc.| 1Q 2022 Bridge 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
Slide 26: Definitions (cont.)
Definitions (cont.) TPG RE Finance Trust, Inc.| 1Q 2022 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 instances, TR
Slide 27: 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 Officer +1 (212) 430-4111 bfoley@tpg.com Brandon Fox Chief Accounting Officer +1 (415) 706-2751 bfox@tpg.c