Tpg Re Finance Trust, Inc. · NYSE:TRTX
Tpg Re Finance Trust — Investor Presentation (March 2023)
24 slides from Tpg Re Finance Trust's investor presentation, Mar 6, 2023
Slide 1: TPG RE Finance Trust, Inc. Investor Presentation March 2023
March 2023 TPG RE Finance Trust, Inc. Investor Presentation
Slide 2: Forward-Looking Statements and Other Disclosures
2 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 vie
Slide 3: TRTX By the Numbers
3 TRTX By the Numbers 1. In addition to credit spread, all-in yield includes the amortization of deferred origination fees, purchase price discount, and accrual of both extension and exit fees. All-in yield for the total portfolio assumes the applicable floating benchmark interest rate as of Decembe
Slide 4: TPG – Premier Global Asset Manager
4 TPG – Premier Global Asset Manager Capital Real Estate Impact TPG Real Estate Partners (TREP) Market Solutions $66B $20B $16B$23B $10B Real Estate Thematic Advantage Core Plus (TAC+) TPG Real Estate Partners (TREP) TPG RE Finance Trust (TRTX) TPG Rise Climate The Rise Funds Evercare TPG Tech Adjac
Slide 5: Career Credit Investors Drive Investment Strategy
5 Career Credit Investors Drive Investment Strategy Leadership team has invested through multiple business and real estate cycles Emphasis on credit quality and principal protection Engagement throughout the investment process Deep, extensive relationships with owners, borrowers, brokers and
Slide 6: 4Q22 Operating Results and Book Value
6Investor Presentation| March 2023 $14.28 ($0.01) $0.33 ($0.24) ($0.04) $0.02 $0.14 $14.48 Book Value 9/30/22 Issuance of Common Stock Net Income, Excluding Credit Loss Expense Dividends on Common Shares Dividends on Preferred Shares Equity Compensation Decrease to CECL Reserve Book Value 12/31/22 4
Slide 7: Operating Performance and Common Dividend Coverage
TPG RE Finance Trust, Inc. | NYSE: TRTX 7Investor Presentation| March 2023 $0.30 $0.20 $0.28 $0.34 $0.30 $0.19 $0.27 $0.33 $0.24 $0.24 $0.24 $0.24 Distributable Earnings per Basic Share Distributable Earnings per Diluted Share Common Dividend per Share 4Q22 3Q22 2Q22 1Q22 Common Dividend Coverage 1.
Slide 8: Liquidity and Leverage
TPG RE Finance Trust, Inc. | NYSE: TRTX 8Investor Presentation| March 2023 Liquidity and Leverage Available Liquidity ($ in millions) Leverage Ratios4 1. Cash held to satisfy liquidity covenants under secured credit agreements 2. Available for Eligible Collateral, as defined in relevant CLO indentur
Slide 9: Portfolio Composition and Activity
TPG RE Finance Trust, Inc. | NYSE: TRTX 9Investor Presentation| March 2023 Full Repayments2 37.9% 18.4% 29.8% 6.5% 4.8% 2.6% Investments1 5.2% 68.0%13.0% 6.7% 4.1% 3.0% 41.9% 37.2% 28.5% 29.5% 36.0% 46.0% 12.2% 9.5% 8.9% 9.1% 7.8% 7.5% 6.4% 5.5% 5.2% 2.2% 1.7% 0.9% 1.8% 0.9% 67.1% 67.6% 67.2% Office
Slide 10: Diversified Loan Portfolio
TPG RE Finance Trust, Inc. | NYSE: TRTX 10Investor Presentation| March 2023 Diversified Loan Portfolio 28% 17% 14% 5% Geography4,5 Portfolio Metrics Total Loan Commitments $5.4B Outstanding Principal Balance $5.0B MSA Concentrations (Top 25 / Top 10)1 68.4% / 45.3% Weighted Average All-in Yield2 8.0
Slide 11: Loan Portfolio Walk
11 ($48.0)4 ($757.0) ($375.5… ($425.7)4 $4,919.3 $29.2 $224.6 $5,125.2 $29.3 $312.7 $4,710.2 $47.3 $950.1 $5,332.2 $39.3 $59.0 $5,004.8 $487.8 $463.0 $470.9 $462.9 $426.1 12/31/2021 Deferred Fundings Originations & Acquisitions Repayments & Sales 3/31/2022 Deferred Fundings Originations & Acquisitio
Slide 12: Risk Ratings
TPG RE Finance Trust, Inc. | NYSE: TRTX 12Investor Presentation| March 2023 $0.0 $511.9 $3,231.3 $990.3 $245.1 — 8 46 12 1 2 3 4 5 3.14 3.17 3.17 3.19 3/31/2022 06/30/2022 9/30/2022 12/31/2022 Risk Ratings Dispersion of Risk Ratings1 Stable Risk Ratings1 By Amortized Cost Trailing 4 Quarter Average:
Slide 13: CECL Reserve
TPG RE Finance Trust, Inc. | NYSE: TRTX 13Investor Presentation| March 2023 91 180 390 395 91 159 265 240 21 125 156 General Reserve Specifically Identified Loans 3/31/2022 6/30/2022 9/30/2022 12/31/2022 CECL Reserve QoQ CECL Reserve Reserve as bps of Total Loan Commitments1 Reserve as $M $51.1 $93.
Slide 14: Sources of Financing
14 26.5% 13.5% 1.1%58.9% Secured Credit Agreements (MTM) Asset-Specific Financing Secured Revolving Credit Facility Collateralized Loan Obligations Loan Financing Financing Metrics Total Financing Capacity $6.3B Outstanding Principal Balance $4.3B Sources of Financing 15 Non-Mark-to-Market 73.5% Wei
Slide 15: Focus on Non-MTM Financing
15 Focus on Non-MTM Financing Financing Mix by Property Type1,2 1. Calculated on outstanding balance as of December 31, 2022 2. Excludes Non-MTM CLO liabilities of $297.2 million, equal to CLO cash available for Eligible Collateral, as defined in relevant CLO indentures, as of December 31, 2022 Note
Slide 16: Positioned for Rising Rates
16 Positioned for Rising Rates ($0.03) ($0.01) $0.00 $0.01 $0.03 -$0.03 -$0.01 $0.01 $0.03 $0.05 -1.00% -0.50% 0.0 0% 0.5 0% 1.0 0% Portfolio Net Interest Income Sensitivity ($ Impact per Share per Quarter) Index Rate at December 31, 2022 LIBOR: 4.39% Term SOFR: 4.36% + 0.50%- 0.50%- 1.00% + 1.00%-
Slide 17: Appendix
Appendix
Slide 18: Per Share Calculations Reconciliation of Net Income and Distributable Earnings
18 Per Share Calculations Reconciliation of Net Income Attributable to Common Stockholders and Distributable Earnings ▪ 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 p
Slide 19: Definitions
19 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), an
Slide 20: Definitions (cont.)
20 Definitions (cont.) Fundings to borrowers that are made under existing loan commitments after a loan closing dateDeferred Fundings Geographic Diversity TRTX divides the South region into separate Southeast and Southwest regions using definitions established by The National Council of Real Est
Slide 21: Definitions (cont.)
21 Definitions (cont.) 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 generally involves little or n
Slide 22: Definitions (cont.)
22Investor Presentation | March 2023 Definitions (cont.) 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,
Slide 23: Definitions (cont.) Loan Risk Ratings
23Investor Presentation | March 2023 Definitions (cont.) Loan Risk Ratings Based on a 5-point scale, the Company’s loans are rated “1” through “5,” from least risk to greatest risk, respectively, which ratings are defined as follows: – 1 - Outperform—Exceeds performance metrics (for example, techn
Slide 24: Company Information and Contact Information
24Investor Presentation | March 2023 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
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