TRTX - Earnings call transcript Q1 2020 | TPG RE Finance Trust, Inc.

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Operator

Greetings, and welcome to the TPG RE Finance Trust, First Quarter 2020 Earnings Conference Call. At this time all participants are in a listen-only mode. [Operator Instructions].

As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Ms. Secretary Counsel. President, Vice Ginsberg, and General Deborah Thank you.

may begin. You

Deborah Ginsberg

Guggenheim, welcome TPG morning, the joined Finance Greta and and Greta comments Risk Trust, up share the Financial Good Foley, remotely Executive Estate Chief Bob by Bob I'm First to open Officer. Call. questions. quarter, Real and and call & we'll Officer; for Conference Quarter today some will Chief about XXXX then

our release filed in we and Form results, with are a which our of section. the website press night Last issued available presentation XX-Q operating Relations our of all a on Investor

like I'd outside forward-looking of that may call and statements, control. company's may Actual results to include everyone remind the differ uncertain which are materially. today's

affect most see of a Factors section XX-K, Risk recent results, please our For some that of discussion Form our the well of as as the XX-Q. could risks

update should undertake also reconciliations this not you duty refer any our the certain XX-Q. do call, non-GAAP to will We statements, on refer release press measures to and and we for to and these

I’ll to Greta. that, turn over the With call

Greta Guggenheim

who public wish private you, you us. our health morning, the Good gratitude everyone. good Deborah. risking are express to your much protect I to all to family to and all workers and Thank sector so want tremendous of and of

this. our portfolio. for we eliminate securities sale all sugarcoat Let additional me to CRE with was the obvious, by of of risk, the the to entire There of decision from no extraordinary the a this made margin the no bond to way our and tough selling recovery, disruption markets start call losses timetable it CLO with million quarter. We $XXX.X recorded is Faced portfolio.

the given securities. all dramatically severe series my global decision, the the health in volatile not to time; publicly was economic Great world years, that events unfolded the XXX of that the crisis short conditions of and highly duration, short an that was including one but the values, stunningly in the shock career our This worst traded most rapid base market period of easy affected rated most CLO since securities economy necessary Depression LIBOR

suddenly became and capital. unpredictable an of securities significantly illiquid, liquid significant historically These requiring diversion

as future a margin was the it call value portfolio risk we securities sold to cash to the eliminate felt and important we First of UPB billion X.X As portfolio. Mortgage raised result, protective in our

and comprised primarily loans, is today the focused XX% and office is Hotel on remain other high We as portfolio pause. multi-family growth as XX clearly respectively. top Our major XX% markets, on employment and well and X.X% of retail employment loans growth XX% respectively. represent markets, now

by XX% of light assets. our portfolio is transitional and secured bridge

funding financed with is We one future with our XX% of obligations construction have loan non-marked-to-market $XX million. loan debt. portfolio of

attractive our sub-XX% Also, we of service paid in interest is hotel one LTV that collectability is In loan. late basis, the loan. of not loans us. paid senior portfolio owned full with our an April. XXX% concerned April our a this on loan of XX.X% loan The and mezzanine all are very principal debt interest of loan institutionally to our that The and senior is is to loan of

know, you reflect and performance. As in payments is arrears interest March April paid

become would and naive expect performance stress. to economic borrower therefore levels be it lockdown the not to of While continues, tenet increasing under

multi-family XX% a $XXX acquisition to in-place with light are In X.X%, a whole, changed, the comprised debt assets Consistent million XX% as of we originated transitional assets portfolio QX, before assets. market the were of yield loans. office loans, with and abruptly moderate XX% an these

At market this uncertain too conditions to time are loans. new originate

to entails our relief In the payment lockdown value the that country's efforts timing environment, current during of are modifications providing all our some our of borrowers We period. focusing this on need portfolio. protecting

borrowers by our equity to representing affected most modifications. new agreeing the been portfolio significant complete have Most infuse all support working to properties properties. are the with retail XX% to of and of borrowers been their and Hotel COVID loan we've

we terms in in substantial obligations The from that As Form which reported recently accept investment deed significant very negotiate and under are completion guaranteed global to paid the in is deed lieu. and a would borrower’s we equity XX-Q, be has lieu. the to a with certain there approached must us in a very relating manager financial borrower carry connection

any stage are development. of this we assessing discussions early are very a if the financial and at currently to Our impact, us

While expecting of and into we the is the infusion by the sponsor this to to in substantial necessary the capital take asset, whatever secure invested the sponsor, the sponsor's given recent borrower, assets not we prepared quality to asset of action equity value. are were location, occur the the

to on to changes writings, hotels our three rated increased loan results all portfolio overall risk two individual increase The primarily four rating. from Based that a pre-COVID or X.X. rating operating were to moving

in five default on based future very what We borrower the below belief also underwrote. is asset significantly a from may to as the our a moved operating the we property near one four

through ability experienced we confidence and landlords tenants have economic just to our by We in face, the that but disappear. strain challenges great the we tremendous fight country's also will realize not

We work continue will with to have our to borrowers.

calls implement margin financing to we our our holidays. Regarding are counterparties, with re-margening have in and lenders discussions no active

with on cooperatively Our all lenders have us fronts. worked

expiring of year lenders and our the responsive this an stress hotels. approving one has been that month assets extension facility higher such loan Each had for numerous in with $XXX million of supportive in first renewed very we for week as was modifications options. As one example,

which our times. TPG the platform and I the RE TPG of partnership have contributed with team significantly would strength Also performed banking its dedication relationships senior level extraordinary has to lenders. XX/X our these during like and to acknowledge the with thank [ph]

of period. weather the each guidance utmost difficult helped Directors time. And unprecedentedly finally, of you Board dedication and thank who importance your has tremendous have and commitment been of us for of this I our of wise

both economic environment to we in to Houlihan us us new allow press, the reported weather previously capital, help current have to go once on Lokey we begin markets the retained stabilize. and the offense As to source

is our strong dissipate the flow the long portfolio Finally, disruptions value we as to that believe eased. cash very that begin lockdowns to will are the of and term current

that, with will now over Bob the I call to turn Foley. And

Bob Foley

Thank morning and Greta, good everyone. you,

generated up loss quarter Net prior was transitional first and or business million million of of share. quarter. $X.XX our we core $XXX.X the a or from per from $XXX.X share GAAP-net diluted For million the lending diluted per that's X.X% $XX.X earnings and interest income $X.XX

sold quarter bonds, of generating CRE From XX portfolio. $XX.X debt driven Our million a sustained of in were our announced the March $XXX.X losses million. divestiture of first loss with securities through March results we previously by the connection XX

on impairment end date. gain for $XXX.X the next an of the In the the $XXX.X our equal single weeks, executed over very loss bond. million offset quarter sold million sales by impairment recorded At portfolio a we to value at we we the of XX, charge March owned face charge bonds three on of entirety slight recorded that against a

our related reduction loans. Management this complete rate Directors exit value our sales extreme, liquidity portfolio. portfolio per currently entirely financings was via bond resulting investment these material. consists of from loss sales the securities from last mortgage our were calls Board opted All Market and our and frequent book securities of extinguished in $X.XX and upon out our floating of to was were margin and stop The share. scarce volatility was

at we for million, recorded total the CECL of of $XX.X equal million regards initial on reserve $XX established $XX.X With expense the general the January to of to recorded X difference general March is CECL which reserves between million and XX.

income to CECL Quarterly our our is consistent an a expense from with earnings, GAAP core the which is expense existing accounting and and new terms as of external non-cash add practice agreement with manager. net management back

XXX reserve When our we comparable XX points. on of total or basis was established January points X, general CECL commitments $X.X basis equals rate approximately initial the reserve Our billion.

reserve data data first our losses. COVID-XX due impact portfolio a rate loan share historical is us estimate and by loan sharply forecast which The to impact was macroeconomic the quarter expected pandemic, quadrupling book against cumulative of reduce of almost our per CECL the apply for The to entirely to to caused recessionary $X.XX. value life-of-loan of

use licensed for and performance a database A provide XXXX from broad, stretching to the loss back loan few TREP of and drive macroeconomic to and comments estimate. stable, [ph] losses. model given data loans, level actual collateral data-foundation default about CECL. We to performance a mortgage develop We’ve additional default forecast loss selected our first our TREP to for data, data, a credit TREP allowance large general

repayments estimate change loans capital macroeconomic a CECL pace properties of upon factors, time market including will over and the expect first do mortgage of performance conditions, based the them, loan securing our underlying our actual originations. variety and and conditions We of

the over from past for any volume illiquidity remain observable and extract is illiquid, estate participant current Since real markets to the inputs market transaction markets. light improved has It's commercial valuation a bit the solid although month. challenging

expect likely CECL our We to believe the term near performance do extreme due results severity estimates allowance actual to of and the dependent COVID-XX be and the on impact do the credit induced long and not reflects the length and highly loan future macro-economic term CECL of assumptions. our we the recession, currently forecasts COVID-XX the portfolio of over

third and our party to on properties our major $X.X with and which borrowers briefly and to in risk against prudent rates meaningful reflects billion loans, average capital protection motivation for have wide downside prior markets. pre-COVID amounts appraised consistent approximate their them investments. LTV providing subordinate our credit, assets values, quarters loans quality portfolio XX.X%, on of emphasis and our to is longstanding Turning is Based loan at equity to protect weighted our us advance

we sector, be market expect in to do primarily to to the due early in and GSEs. from quarters several stage occur for the likely to that repayments expect support multi-family We most restrained repayments due COVID

XX% our of CLOs $X.X financing financing including market, liabilities term of billion and syndication related the valuable. after non-market extremely LIBOR senior The CLO XXX LIBOR our loan. and Regarding private from plus each Those begins non-recourse constant amortization capitalization, plus for is the ends transactions zero. until to and coupon term loan the points liabilities period are are reinvestment roughly basis both floors is the two

million first finance the quarter we therein CLOs to us. XX the to $XX.X interests participation four During generate of cash of times, features and or utilize loans reinvestment

calls to provided is value. but under different which funding committee credit other marks declines term limit than of bank margin remaining Our collateral facilities, in credit all for eight temporary one lenders, by

$XXX in with Morgan referenced for another facility May, Greta early credit extended year we As our Stanley. million

with secured and securities. year divestiture in We of as associated XX% credit facilities. other a our to mature facilities this our our any later in to credit almost outstanding represent expand have borrowings under longer at combination secured entire The credit the we no remaining XXXX, securities of expect our facilities XX March than of result bulk of portfolio, liabilities

our end paid of to operating quarter we X.X:X, ratio to to recorded more at in above X.X:X impairment or equity million April our that our Currently early X.X of to the amount elevated ratio was XX, borrowings. net debt only At due million charge sales debt $XXX face March typical totaling equity prior temporarily is of less. slightly than bond approximately level $XXX.X

Liquidity facilities. $XXX.X near $XX cash primarily comprised of at million under million, end term of $XXX.X and credit million quarter availability was of our

we cash-on-hand $XXX.X million Friday held near and approximately last of of As capacity. $XX term of million borrowing approximately

to plus time Regarding embedded quarter money month UPB XX.X of was loans were and rate was LIBOR by our end had that of comparison at weighted LIBOR are flow the and our average floors basis in which floating our floors. LIBOR LIBOR, in that all and end all one points. rates, XX loans measured have month At X.XX%

Friday, date the floors interest un-floored are on rate with now next of hopefully basis As floors all or our are be which determination one liabilities, when in largely margin. month net points, interest XX was last when the These money. of our boost interest LIBOR will combined

in more Dot been I Thai I've Finally, for S&L three apply the Monday different, Global decades. Baht each but colleagues observation. Every a its and experienced [ph], face aftermath. the aftermath, was RTC, Russian Black the challenge and me we business my Financial can than that and the crisis lessons the Ruble, crisis, taught personal in and will of COVID-XX of XXXX’s and the Com the its the Crisis. this

take your very And with that, much. to Thanks Greta Operator. are and prepared questions. I

Operator

Stephen Thank open. James. line [Operator your you, Raymond sir Instructions]. is with ahead go Please Laws

Stephen Laws

Could Thanks morning. questions. my I color. of I about provide you the a couple and color I the you Greta, if more bit for hi, loans ask Yes on a first. could guess maybe disclosure appreciate five loan. rated good taking little

that you matched think but about and if asset give can multi-family color property have number details that? in if I its us any XX, Houston I on the any the discussions up correctly, numbers and

Greta Guggenheim

it for completely property; however, gone nice rent tremendous rated redeveloped Sure. one new the a been some quite very not because been X referenced Houston. A significant – as a that able This and One, multi-family supply in in loan been building I is we redone not a is away and Class quite while, of it property. time. and was a believe so that concessions before, very amount has It it that well. rent hasn't concessions market. this have probably There continued reduce has had to growth for office been

XX,XXX square that well. of never the feet There's space about XX,XXX ground leased excuse floor retail – me, on as

is near the the it and industry and line the COVID, to caused the So this we property X. believe the underperformed oil we is that by don't has appropriate that bottom a in on see given rate stress term, improving extra

Stephen Laws

is for but and timing – is just give talking if year, on I so takes wrong some the number that from an options or the it, if about have correct resolution for Can something how standpoint. color. I know, in this you lieu it that me be us the do time and place matter to of office you to Then in the in Is think take XX, discussed. resolutions timing of a know a would but the process you the a update Thanks this. balance we know months Great! with deed spent – switching you I’m that Brooklyn lieu, deed and and please,

Greta Guggenheim

very financial stage of very sponsor which is and that is with as comply we're strategy property you sponsor do This a But significant We're guaranteed. Brooklyn ago two tender just you occurred, very located to a property substantial on this. weeks very, we're now. are now. in in we equity determining got must evaluating matter It's and and to with know the in obligations, early substantial well This best it's us, of those The the order what it. there a mentioned. many know are very

we will We are – in can't but stages, on too trying very early it, diligent much to what – think much we're its I comment you the we're approach so be. know doing really best

Stephen Laws

us included talked $XXX analysis of the Morgan on and concern that renewing then in in that, went and removed. talk year. then that Stanley into that the remarks XX-Q, you and that to have in facility taken is you the I was release need mentioned due a was of funding August. can about prepared Great, But press the and ongoing what we about be color that party the the give the I think as million in to in steps to Goldman any know can

Greta Guggenheim

question. I'm going Bob address ask that to to

Bob Foley

morning I to. Good Greta, how be Sure would glad Steven, you?

Stephen Laws

Good. Bob. morning, Good

Bob Foley

flows at each With think these concern be analysis in in respect or in quarter, our instance, resulted is the to and focus mentioned on disclosures, I debt does the outbound are strong. and inbound analysis It everyone's going well, from instance of both should that that going portfolio. in instance cash our our a and maturities. liquidity end year In bond Greta and standard is and key for the concern the earlier the generally, reduction this liquidation I us of

and other source next debt sharply business. retirement reduced lenders, investment us quarters for are and and a project We of earlier payments and mentioned loan the for repayments material several I fueling typical for as new system loan cash

analysis. say in So were our two the I that principal those would factors

facilities credit We year. do have notable later maturing this two

said, the number and the company was our early them Sachs. first extended our we before. successful borrowings; about with back Goldman is facility our of of XX% facility credit one stages have I It in As secured with

other one last The BAML have which we ours. extended Stanley, where with is mentioned has Morgan only we member pledged discussed another been and we earlier, loan longtime and just as of week we

answer. So and confident that's the comfortable management our plans and is with

Stephen Laws

last our forward, a about be about you of portfolio question Can we think color us that income need bit the other floors. turns far and securities consideration think as of color you is to know give LIBOR other, to appreciate re-tax think some for little core, little some about from how will kind retaxable Thanks about [inaudible]. to to on benefits I thinking provided carried not potential the Can as dividend things of maybe obligations, where talk the bit losses that? a and regarding and and adjustments – – what figure you Great! our on Bob, you Bob, the disclosure about the

Bob Foley

a technical a of things. it's matter; Sure, couple

to our taxable to that, do book-to-tax least REITs, you and so. maintain the XX% need REIT many other First at dividend that is, income. we their statuses aren't of intend know of differences. We REITS There

One will of general between and from example are you it fees them that be reserve associate are between tax they are the matter. how loan was CECL with differences for not nor for for apart And book notably most I would and accounted that. say for income material, the interest know that, that

So issue biggest the reserve, I'd reconciling real the item. is CECL the say

Stephen Laws

for the are I all families well. color. appreciate the you. you and thanks ’XX I your time Okay, in hope doing Thank and

Bob Foley

at back Right you. Thank you.

Greta Guggenheim

you, Steve. Thank

Operator

Securities, please Delaney Steve go JMP ahead. of

Your line is open.

Steven Delaney

to well. both Greta morning and Bob, your I’m hear Good and glad

couple a from Just me.

if interest. more you the one non-accrual Thanks. you accruing addition have loans mode and cited that have recovery Greta, placed you cost a delinquent to In that any loan can of in comment on you other than

Greta Guggenheim

do No, not we have any.

Steven Delaney

stop to what because you're using a you on and for we’re interest a comment there we’ve that you loan loan at the this in time in is it's this can quarter asking. this that okay, just space would conditions interests and for and loan why to on stop some basis looking loan and you our and as I’m a that’s accruing say, non-accrual, the reserves, going Okay, look point briefly on non-accruals just maybe process, look at just reducing and maybe one first put a

Talk] [Cross

Bob Foley

sorry, ahead. I’m go

Greta Guggenheim

and factor start debt just will sure referenced. will I probably I’m think is, it I’ll loan we that I in a encap. that be obligations, that one have key presently in to fill gaps Well, you service and current its some able But is we

XX, we you situation. me that to know have not and be it and XX know please that to about beyond do typically days that a – know up before delinquent And for look Bob, you you factor to thinking is So to key would we you would that. start probably add

Bob Foley

if it know not which paid entirely disclose a been clearly occurrence we that's in is No, real it’s policy firm with accurate have is clearly unheard is it’s do and respect conviction hasn't to we non-accrual, our days, is collectible, cost days But for XX otherwise that apply one the that the rare carefully. interest accrued but estate business. in what a we even you unless Q a of XX defined and which

Steven Delaney

for and securities going think Thanks what the switching going helpful. And should be in management me. I That’s where for to that, you are of forward? world we now clarifying that then repayments. commented part to not cash know

go likely you’re million a you a $X and cash fundings, have loans $XXX specific have have you to over loan de-lever you or loan think or it you your but – future some like in Term if all You where position you, retail and hotel are loans. and significant down couple you B the financings to not on you’ve have will or million use to that what revolver be as done pay excess would

Greta Guggenheim

think disclosed. do been Well, know I you it’s

to forestall calls with a for counterparts know of margin we I in an our having work with and arrangement sort active We out are on now. discussions where right longer in but parties would repo get a, agreement they we're mean margining now, we're discussions term you that discussions them. no have to

presently we capital. are interesting know not seeing for You opportunities deploying

affected hesitant albeit you if nevertheless know think refinance by lenders this their dramatically I you pandemics pandemic. the negatively have the You properties, particularly going to market on, I most think affected, has while cash know been slowed but know and flows are asset temporarily sales

so know and hoard not down cash would we liabilities. we're seeing moment you this of So at a opportunity, lot pay

Steven Delaney

there now I guess balance can just I as keeping going, just guess And control depends you you over going where choose out great and was with down was Greta. us is know I that figure a the of where to you get right the trying it putting on Great! view is trying opposed or where discussions a cash with somewhere was to on I between a that hoarding get were of to on cash how for pay I you to question the financings debt to I kind you strategy think cash banks the But back different your loan. which that. specific is

Greta Guggenheim

loans hotels world, of would state Sure. vulnerable. know are because financing probably are Well, you the the pay they given the that first, we down most

Steven Delaney

Yes, understand.

Greta Guggenheim

what do, But then and you first. expensive look else that's would all most know to things debts being off we equal we the pay would otherwise

Steven Delaney

talking question, a this out just guess tried I his and it is with few going know, as that I'm but I’m representing to get months a forward my your in the to the for next investors towards question. reflect sense, to the been as for is or dividend? and directly that comp dividend RTI I view has suspended lay Makes me currently and and you here so, final proper your we staying, for to dividend move Stephen I'm now think just way table to

Greta Guggenheim

QX? or you to dividends Are QX referring

Steven Delaney

you with QX Well QX, Any. debt. suspended

Greta Guggenheim

we you that would this we say is release and so have that back refer additional information update know on all any to Yes, you I time. our don't I to can you know at that or – press

Steven Delaney

you know. to needed well. both stay exactly Thank Got it. That's and what I

Greta Guggenheim

Thank you.

Bob Foley

Steve. you, Thank

Operator

Please Cyganovich, ahead. Arren go Citi.

open. is line Your

Arren Cyganovich

Thanks Bob.

it's currently performance. your the you remarks – do that CECL that I’m credit reflects in likely that not allowance you credit assuming the losses? that potential mentioned we don't believe prepared You believe reserved over means for

Bob Foley

may C) CECL alone corporate that we its it impact is reserve; that is was assumptions B) of that that intended different way statement as is believe with in the A) new a and reserves severe, and of macroeconomic things; the of and the and say employ licensed I effects unclear know I'd depending perhaps today connection others or persist. Does such after was your the same life reserve not the importantly, long What loan general a COVID-XX you be most that may so the CECL the upon as many the impact answer for do what question? how over suggest

Arren Cyganovich

Yeah. struggling. that and I I various have you already specific mean imagine very are it's you know properties

think is it stood even I two been out of offices. problem of focusing it – kind what now which that multi-family we've or to perspective. challenge me not It's that is hotel right risk the from the on are you biggest like have and and the seems retail,

You a kind point, this know Houston surprising at the both you're bit of [inaudible]. environment it's but I having multi-family and that’s issues extent that to this guess in little there

The modification is bad. borrower

thus the assets think which for works coming equity, XX%? Greta would I had this like within nice. mentioned XX% underlying be far predominately with modifications What and we’re

Greta Guggenheim

I'll that take Bob.

allowing and reserve modifications have and such and as requested So in our who FF&E primarily the for to uses one and cash as as really it XX% far something service, simple FF&E is an be and conditions. very as extension $XX know other the that access retail loan million modifications until than relaxing as bespoke can other in borrowers are hotel paying bar could debt cases you the our

XX COVID bar But all each capital. related the much on there it's most know cases very in say, the to based you're trailing not is of you the cases and can I If so crisis, committing you is to debt NOI yield capital one a very NOI additional in task and significant know going different. you have have

Arren Cyganovich

deed the a in just just on not works itself foreclosure. on of your and little then with. means know for you suggestion this that the to too on process the versus it’s about could typical I what you typically a how property. Maybe Okay, familiar that don't in foreclose you following-up the just negotiate lieu, talk it in just of transaction kind for there's just maybe and benefit lieu a understand to what's deed bit

Greta Guggenheim

Ginsberg, to legally address will Deborah ask will. more I be She to going Counsel I'm General than our precise much this.

Deborah Ginsberg

Sure.

I sponsor this obligations that And and to their would they like so has their to cut it property the think underlying ongoing carry idea for obligations. tender is off carry

for a so that but order know obligations, and know New them call to those foreclosure there you As you in – two the cut they years circumstances, under us. concessions towards to could off have are York you would know tender significant take, current in make

So that's that the starting of now. we're process kind

to foreclose. it I’m but possibly expect We than less weeks, it to for to take resolution, on to is two it the be months, unclear several years actually

Arren Cyganovich

play. So it would with be to that giving kind expect essentially would keys, way that's of along then giving some that, you cash the but it you also the

Deborah Ginsberg

would That our I ultimate complete result. making yes. it property, so is express probably the more as it's sure end in tying up obligations of the

Arren Cyganovich

do capital new know you form that come looking have the that what on expect sources touching that just idea into, of suppose to you you're of any I then, kind from. And you

in? their of Have various We’re you do you sponsor come types from seeing firms what that you about thought new know other know capital might converge, coming form etcetera.

Greta Guggenheim

hired of can on others, from is have you all said and hired consider I I misleading, what know we've we I lot that to capital report all of what us them doing. source may you to not publicly say that sources but be of that's reports that been Houlihan A there's know we're capital. us. Lokey press Look, that in help a we the lot know can and

Arren Cyganovich

you. Okay, thank

Operator

your Shane Please Rick open. Morgan. [Operator ahead, is Instructions] JP go you. Thank from line

Rick Shane

taking morning thanks this Guys, for and questions my I hope well. everybody's

property That in transaction, XXXX. the was I a am Regarding curious. in deed lieu

me This strategic exception. project XX% described see they've two the powder in having you like there So to LTV know sponsor It dry been the the for not you as years. default, the to opposed sounds given is way them really to through. a

some provide – you of us would REO and your terms balance like additional to characteristics of are look you sheet would that's a generating as this dispose curious property. to be on the given that rent into I'm it of they if to the years what the hold property can two of [ph] property or it could transitional. Is in and TRTX income, try idea the

Greta Guggenheim

know about all project part is You the to think bought for a a convert to it we're amount What tremendous of that. office, and and like it very sponsorship we in our creative property Brooklyn. of know, wasn't in the originally it there options. demand diligently evaluating The was that you Brooklyn its sponsor, location warehouse I

to value So we're maximize the property. for looking options at really all

has point to equity sponsor cash at the diligent know say, come the and discussions to on you since time. this premature to in of just any really significant it's this invested. You it’s property property at They’ve you conclusions closed equity, to of active know and this equity continuously know – XX% we're contributed

Rick Shane

it. was and One other idea that space. up that was of that the to then changed? follow this that Is Related co-work property one the be going one Got follow-up. on things that’s to a

Greta Guggenheim

a possible, have primary of considered co-working No, that I that don't at driver that. knowledge. it some tenant was is point, a I not mean, but possible they

Rick Shane

great. Okay,

Greta Guggenheim

That was driver. the not primary

Rick Shane

substantial your either in banks on chart order XX of to base borrowing extensions extension good And am debt to your over or Greta. as place where the I spreads that on and existing rates be of secured terms to offset NII. dampen the enjoy higher provide in base enter is or the the you the thanks that benefits rates of facility associated are then on month terms a next guys you with you think there that you have low will Great, right now. assets floors terms on XX floors in renegotiations how facilities, impacts curious if in one of the that,

Greta Guggenheim

has material facilities, I in existing our to all exists pre-COVID see I floors quite some changed. possible. bespoke type for in Yes, most The still nothing cases. expect arrangements Do think Well, of that's financing?

I know think it couple of question. your we've recently I outside refinanced of seen know competitors banks. and the if a answering you that’s with whose don't

Rick Shane

spreads. two floors facilities, wondering, think through and some specifically you extension to site on facilities of I'm those low the drawn either wider higher those you efforts on million the rate $XXX environment, as if behalf see offset the banks or you'll of

Greta Guggenheim

be seen. to It’s

for think wider there be could I new borrowings. spreads

facilities. honor additional they For believe facilities, under borrowings, existing the terms those will but the of I

Rick Shane

Okay.

Greta Guggenheim

And any if Bob, know have I don’t further on color that. you

Bob Foley

that's stated. I think accurately No,

and always I are think predates we lenders that crisis. with in that contact our the we’ve COVID constant been,

with We are connection voluntary deleveraging arrangements. as in mentioned in Greta engaged negotiating clearly these

to lenders not so hold regard new to With pricing assets. for to to extensions, or have specific could the financing borrowings, previous pricing. for and be there could adjustments extensions firm changed on markets existing speaking generally existing borrowings pledge Clearly

to be and now on that extended, and facts their maturity those market in that think September are we the time depend year. I of and circumstances which deals between expect at will August dates, next are which the this

Rick Shane

Okay. Thank guys. you,

Bob Foley

loan. As we and substantial mentioned, you know average towards good our we spreads on weighted have

a strong negotiate. basis So from to which there Rick. is Thanks

stated been With I suspension any would nomenclature, quarter to sort respect company point I Steve of that differed. have like Steven earlier. your DeLaney but to our revert first first comment can’t hasn't quarter made to announced the dividend one yet. dividend and The firms on was

Greta Guggenheim

yes. yes That press word, release, is Pursuant that correct. is to the the

Bob Foley

Alright, thank you.

Operator

Thank Guggenheim, are Over Greta over madam. further the like the closing as back or for no And to call CEO I you. to questions would turn remarks. you any there queue, to in additional

Greta Guggenheim

Well, hear thank great to to that this again well for quarter. calling and we in look to next all you you and and your are morning healthy, all and you forward voices speaking

Operator

call. today's for does you Thank participation. you. Thank That your conference conclude

now disconnect. You may

TPG RE Finance Trust (TRTX) 12 May 202020 Q1 Earnings call transcript