TPG RE Finance Trust, Inc. Reports Operating Results for the Quarter Ended September 30, 2022

TPG RE Finance Trust, Inc. (NYSE: TRTX) (“TRTX” or the “Company”) reported its operating results for the quarter ended September 30, 2022. Regarding third quarter results, Doug Bouquard, Chief Executive Officer of TRTX, said: “Our Company’s strong liquidity position and TPG’s industry-leading global real estate platform enabled TRTX to opportunistically deploy $984.0 million into new investments during the third quarter and maintain ample liquidity of $571.3 million to navigate the current market environment.”

THIRD QUARTER 2022 ACTIVITY

• Recognized GAAP net loss attributable to common stockholders of $(117.9) million, or $(1.52) per common share (based on a basic and diluted weighted average share count of 77.4 million common shares), and book value per common share on September 30, 2022 of $14.28.

• Declared on September 12, 2022 a cash dividend of $0.24 per share of common stock which was paid on October 25, 2022 to common stockholders of record as of September 28, 2022. The Company paid on September 30, 2022, to stockholders of record as of September 20, 2022, a quarterly dividend on its 6.25% Series C Cumulative Redeemable Preferred Stock of $0.3906 per share.

• Originated five and acquired at a discount five performing first mortgage loans with total loan commitments of $984.0 million, an aggregate initial unpaid principal balance of $950.1 million, a weighted average interest rate of the applicable benchmark rate plus 3.52%, a weighted average interest rate floor of 0.89% and a weighted average loan-to-value ratio of 64.8%. Additionally, funded $47.3 million of future funding obligations associated with previously originated loans.

• Received loan repayments of $371.1 million, including eight full loan repayments totaling $291.4 million, comprised primarily of the following property types: 77.6% office and 12.0% hotel.

• Weighted average risk rating of the Company’s loan portfolio was 3.2 as of September 30, 2022, unchanged from June 30, 2022.

• Carried at quarter-end an allowance for credit losses of $225.6 million, or 390 basis points of total loan commitments, an increase of $132.3 million from $93.4 million, or 180 basis points of total loan commitments, as of June 30, 2022. Of the $225.6 million allowance for credit losses, $72.3 million relates to the Company’s specific reserve.

• Closed an asset-specific financing arrangement with an institutional lender backed by five performing first mortgage loans. This financing is matched term, non-recourse, and non-mark-to-market.

• Ended the quarter with $571.3 million of total liquidity, comprised of: $210.7 million of cash-on-hand available for investment, net of $25.4 million held to satisfy liquidity covenants under the Company’s secured financing agreements; undrawn capacity under secured financing arrangements of $48.6 million; and $286.6 million of reinvestment capacity in the Company’s CRE CLOs. Additionally, the Company held unencumbered loan investments with an aggregate unpaid principal balance of $7.6 million as of September 30, 2022.

• Non-mark-to-market debt represented 74.9% of total borrowings at September 30, 2022.

• Weighted average interest rate floor for loan investments was 85 basis points as of September 30, 2022 compared to 90 basis points as of June 30, 2022. The Company’s assets and liabilities are now fully rate-sensitive.

• Rate caps on substantially all of the Company’s loans had a weighted average strike of 2.87% at September 30, 2022 as compared to 2.83% at June 30, 2022.

SUBSEQUENT EVENTS