TPG RE Finance Trust Inc (TRTX) 2024 Q3 法說會逐字稿

Good morning, ladies and gentlemen. And thank you for standing by. Welcome to the TPG Real Estate Finance Trust third quarter, 2024 earnings conference call. It is now my pleasure to turn the call over to the company. Thank you. You may begin.

女士們、先生們，早安。感謝您的支持。歡迎參加 TPG 房地產金融信託 2024 年第三季財報電話會議。現在我很高興將電話轉接給公司。謝謝。你可以開始了。

Thank you. Good morning and welcome to the TPG Real Estate Finance Trust earnings call for the third quarter of 2024. We are joined today by Doug Bouquard, Chief Executive Officer and Bob Foley, Chief Financial Officer. Doug and Bob will share some comments about the quarter and then we will open the call for questions. Yesterday evening, the company filed its form 10-Q and issued a press release and earnings supplemental presentation of operating results. All of which are available on the company's website in the investor relations section. As a reminder, today's call is being recorded and may include forward-looking statements which are uncertain and outside of the company's control. Actual results may differ materially for a discussion of risks that could affect results. Please see the risk factor section of the company's most recent Form 10-K.

謝謝。早安，歡迎參加 TPG 房地產金融信託 2024 年第三季財報電話會議。今天與我們一起參加的是執行長 Doug Bouquard 和財務長 Bob Foley。道格和鮑伯將分享一些關於本季的評論，然後我們將開始提問。昨天晚上，該公司提交了10-Q表格，並發布了一份新聞稿和收益補充報告。所有這些資訊都可以在公司網站的投資者關係部分找到。提醒一下，今天的電話會議正在錄音，可能包括不確定且超出公司控制範圍的前瞻性陳述。對於可能影響結果的風險的討論，實際結果可能會有重大差異。請參閱公司最新的 10-K 表的風險因素部分。

The company does not undertake any duty to update these statements. And today's call participants will refer to certain non-GAAP measures and for reconciliations. You should refer to the press release and the form 10-Q. At this time, I'll turn the call over to Chief Executive Officer Doug Bouquard.

本公司不承擔更新這些聲明的任何義務。今天的電話會議參與者將參考某些非公認會計準則指標和對帳。您應該參考新聞稿和 10-Q 表格。現在，我將把電話轉給執行長 Doug Bouquard。

Thank you. Over the past quarter the [federal's] initial rate cut and strong economic data across the board have fueled a remarkably [brought] rally in risk assets. For context the forward price to earnings ratio of the S&P 500 is currently in the 97th percentile when compared to public market valuation multiples since the 1930s. Additionally, investment grade and high yield corporate spreads continue to trade at the tightest spreads since the GFC.

謝謝。過去一個季度，聯準會首次降息和全面強勁的經濟數據推動風險資產大幅上漲。相較於 20 世紀 30 年代以來的公開市場估值倍數，標準普爾 500 指數的預期本益比目前處於 97 個百分位。此外，投資等級和高收益公司債利差持續保持全球金融危機以來的最窄水準。

Meanwhile, real estate is beginning to find its footing amidst the sentiment shift at large. Transaction activity has ticked up and with it, an increase in price transparency across property types. While the read index has rallied approximately 15% since mid-summer, the aggregate real estate recovery still meaningfully lags the broader equity market rally since the fed began its hiking cycle in 2022. Real estate values generally remain below the 2021 peak values which continues to provide an attractive entry point for lenders with dry powder TRTX is positioned exceptionally well to take advantage of this opportunity set. As this macro picture has evolved, we see the key elements of an attractive real estate lending market development.

同時，在整體情緒轉變中，房地產開始站穩腳步。交易活動逐漸活躍，各類房產的價格透明度也隨之提高。儘管自夏季中旬以來，房地產指數已上漲約 15%，但自 2022 年聯準會開始升息週期以來，房地產總體復甦仍明顯落後於整體股市的反彈。房地產價值總體上仍低於 2021 年的峰值，這繼續為擁有大量資金的貸方提供有吸引力的切入點，TRTX 處於非常有利的位置來利用這一機會。隨著宏觀情勢的發展，我們看到了有吸引力的房地產貸款市場發展的關鍵要素。

First and foremost, banks continue to retreat from direct lending and instead are aggressively pursuing loan on loan lending. We see no sign of this capital shift slowing and continue to believe this tectonic shift will benefit the non-bank lending market for years to come. It reduces front end competition for loan assets and improve liquidity and economic terms of back leverage. Secondly, the anticipated decline in short term rates should increase borrower appetite for floating rate loans. And when combined with the steeping yield curve encourage some borrowers who plan to borrow from the fixed rate conduit or agency markets to pivot to floating rate debt.

首先，銀行繼續放棄直接貸款，轉而積極推行貸款對貸款貸款。我們沒有看到這種資本轉移放緩的跡象，並繼續相信這種結構性轉變將在未來幾年有利於非銀行貸款市場。它減少了貸款資產的前端競爭並提高了後端槓桿的流動性和經濟條件。其次，短期利率預期下降將增加借款人對浮動利率貸款的興趣。再加上陡峭的殖利率曲線，將鼓勵一些計劃從固定利率管道或代理市場借款的借款人轉向浮動利率債務。

As we assess the real estate credit landscape at large, we note four key ingredients that will drive the near-term investment opportunity set. An increase in transaction activity which will drive further price transparency combined with increased demand for floating rate borrowing while banks continue to retrench. Fortunately, TRTX distinguishes itself in terms of one, an offensively postured liquidity position to an active new investment pipeline and three a high-quality credit profile as evidenced by stability in both risk ratings and CECL reserves. These attributes are further enhanced by the depth and breadth of TPG's broad and diversified investment experience combined with its best in class integrated real estate debt and equity investment platform.

當我們評估整個房地產信貸狀況時，我們注意到將推動近期投資機會的四個關鍵因素。交易活動的增加將進一步提高價格透明度，同時在銀行繼續縮減開支的同時，對浮動利率借貸的需求也將增加。幸運的是，TRTX 在以下幾個方面脫穎而出：一是積極的流動性狀況和積極的新投資管道；三是高品質的信用狀況，這從風險評級和 CECL 準備金的穩定性中可見一斑。TPG 廣泛而多樣化的投資經驗的深度和廣度與其一流的綜合房地產債務和股權投資平台相結合，進一步增強了這些屬性。

In terms of activity this past quarter, we received $149 million of repayments concentrated primarily in hotel, multifamily and mixed-use property types. And made new investments totaling $204 million in sectors where we find compelling value, multifamily in hotels at a weighted average LTV of 63%. Given our robust liquidity position, we are actively pursuing new investments. In fact, our forward pipeline of potential new investments is at a level not seen since the fed began its interest rate hikes in 2022. We remain very selective with our capital and acknowledge that risk premia have compressed across many asset classes. We continue to be patient investors as we thoughtfully deploy dry powder into the current market.

就上個季度的活動而言，我們收到了 1.49 億美元的還款，主要集中在酒店、多戶型和混合用途物業類型。並在我們認為具有吸引力的價值的領域進行了總計 2.04 億美元的新投資，酒店的多戶型加權平均 LTV 為 63%。鑑於我們強勁的流動性狀況，我們正在積極尋求新的投資。事實上，我們的潛在新投資前景處於聯準會 2022 年開始升息以來從未見過的水平。我們對資本仍然非常謹慎，並且承認許多資產類別的風險溢價已經受到壓縮。我們將繼續做有耐心的投資者，並深思熟慮地將資金投入當前市場。

In summary, TRTX has a market leading position as it plays offense generates an 11.5% dividend yield, actively manages its loan portfolio and liability structure and thoughtfully allocate its investment capital. Furthermore, the real estate value recovery has lagged corporate value growth which amplifies the attractiveness of investing in today's real estate credit market on both a relative and absolute basis. From an earnings perspective TRTX possesses many leverages to grow including increased deployment using balance sheet cash, recycling of capital from [REO] and utilizing untapped existing financing capacity.

總而言之，TRTX 在市場中處於領先地位，因為它採取進攻策略，產生 11.5% 的股息收益率，積極管理其貸款組合和負債結構，並深思熟慮地分配其投資資本。此外，房地產價值復甦落後於企業價值成長，這無論從相對或絕對角度而言都放大了當今房地產信貸市場投資的吸引力。從獲利角度來看，TRTX 擁有許多成長槓桿，包括利用資產負債表現金增加部署、從 [REO] 回收資本以及利用尚未開發的現有融資能力。

Our current stock price implies a 27% discount to book value and offers public equity investors a compelling entry point to take advantage of the real estate credit opportunity set enhanced by the insights of TBG's best in class real estate investing platform. With that, I will turn the call over to Bob to provide a detailed overview of this quarter's financial results.

我們目前的股價意味著帳面價值有 27% 的折扣，並為公共股權投資者提供了一個引人注目的切入點，讓他們可以利用房地產信貸機會，而 TBG 一流的房地產投資平台的洞察力則增強這一機會。說完這些，我將把電話轉給鮑勃，讓他詳細概述本季的財務表現。

Thanks Doug, good morning, everyone and thank you for joining us. Our strong third quarter results reflect the consistent and thoughtful capital allocation strategy we continue to execute. While maintaining a CECL reserve appropriate for our assessment of credit risk, actively managing our loan portfolio to encourage par repayments and positioning TRTX to invest in new loans with strong liquidity of 357 million leverage of only 2.02 to 1. A CECL reserve of 205 basis points that's remained virtually unchanged for three quarters. A weighted average risk rating of 3.0 that hasn't wavered in four quarters, a 1.19 times dividend coverage ratio for year-to-date 2024 and an active investment team TRTX is well positioned to realize on the earnings power and build shareholder value. Regarding operating results GAAP net income attributable to common shareholders was 18.7 million for the quarter compared to 21 million for the prior quarter, reflecting an increase of 1.8 million in net interest margin and a decrease in credit loss benefit of 4.2 million. Net interest margin for our loan portfolio was 29.3 million compared to 27.5 million in the second quarter. An increase of 1.8 million or two pennies per common share due to new loan investments and further optimization of our liability structure.

謝謝 Doug，大家早安，謝謝您加入我們。我們強勁的第三季業績反映了我們繼續執行的一致且深思熟慮的資本配置策略。在保持適合我們信用風險評估的 CECL 儲備的同時，積極管理我們的貸款組合以鼓勵按面值償還，並將 TRTX 定位為投資具有強大流動性的 3.57 億新貸款，槓桿率僅為 2.02 比 1。CECL 準備金為 205 個基點，三個季度以來幾乎沒有變化。加權平均風險評級為 3.0，四個季度內沒有動搖，2024 年迄今的股息覆蓋率為 1.19 倍，且擁有積極的投資團隊，TRTX 完全有能力實現盈利能力並創造股東價值。就經營業績而言，本季歸屬於普通股股東的 GAAP 淨利為 1,870 萬美元，而上季為 2,100 萬美元，反映出淨利差增加 180 萬美元，信用損失收益減少 420 萬美元。我們貸款組合的淨利差為 2,930 萬美元，而第二季為 2,750 萬美元。由於新的貸款投資和負債結構的進一步優化，每股普通股增加 180 萬美元或 2 美分。

Our weighted average credit spread on borrowings was virtually unchanged at 200 basis points compared to 197 basis points last quarter. Distributable earnings were 23 million or 28¢ per share compared to 22.3 million in the prior quarter. Coverage in the quarter for the quarter of our 24¢ dividend was 1.7 times and 1.19 times for the first nine months of 2024. Our CECL reserve declined by 0.3 million to 69.3 million from 69.6 million. This decline was due to solid collateral operating performance, slightly offset by new loan originations. We collected 100% of scheduled interest in the quarter. We had no five rated loans nor any specifically identified loans. Thus, we had no specific CECL loan loss reserve. Our CECL reserve was 205 basis points versus 208 basis points last quarter, we incurred no realized losses in the quarter.

我們的借款加權平均信用利差幾乎沒有變化，為 200 個基點，而上一季為 197 個基點。可分配收益為 2,300 萬美元，即每股 28 美分，而上一季為 2,230 萬美元。本季我們的 24 美分股利覆蓋率為 1.7 倍，2024 年前九個月的覆蓋率為 1.19 倍。我們的 CECL 儲備金從 6,960 萬減少了 30 萬至 6,930 萬。這一下降是由於穩健的抵押品運營表現，但被新貸款發放稍微抵消了。我們本季收回了 100％ 的預定利息。我們沒有五級貸款，也沒有任何特定貸款。因此，我們沒有特定的 CECL 貸款損失準備金。我們的 CECL 儲備為 205 個基點，而上一季為 208 個基點，本季我們沒有發生任何已實現損失。

Consequently, book value per share increased to $11.41 from $11.40. We originated three loans totaling 204 million of commitments funded 7.6 million of deferred fundings on existing loans and collected loan repayments of 149.3 million. Total loan investments increased to nearly 3.4 billion. At quarter end multifamily represented 54.5% of our loan portfolio offices declined 73% over the past 11 quarters to 18.1%. Life Sciences is 11.7%. Hotel is 10.3% and no other property type comprises more than 2.3% of our portfolio. Our primary investment themes remain housing, industrial, lodging, and certain alternative property types including self-storage. We have five REO properties comprising 5.1% of our total assets, one multifamily property and four office properties with a total carrying value of 188.5 million.

因此，每股帳面價值從 11.40 美元增加至 11.41 美元。我們發放了三筆貸款，承諾總額為 2.04 億美元，為現有貸款提供了 760 萬美元的延期融資，並收回了 1.493 億美元的貸款償還款。總貸款投資額增加至近34億美元。截至本季末，多戶型房屋占我們貸款組合的 54.5%，而過去 11 個季度中下降了 73%，至 18.1%。生命科學佔11.7%。飯店佔 10.3%，任何其他類型的房產在我們的投資組合中所佔比例均不超過 2.3%。我們的主要投資主題仍然是住房、工業、住宿和某些替代性房地產類型，包括自助倉儲。我們擁有五處 REO 物業，佔總資產的 5.1%，一處多戶住宅物業和四處辦公物業，總帳面價值為 1.885 億美元。

Our powerful TPG real estate platform continues to drive improved operating performance. Identify appropriate hold or sell strategies to optimize shareholder returns and execute disposition strategies for properties targeted. These three properties are targeted for sale. And those properties are unencumbered by mortgage debt. That's their sale will generate substantial cash for reinvestment. We will have more to report on those properties in February. Please refer to footnote four of our financial statements for a snapshot of our REO portfolio.

我們強大的TPG房地產平台持續推動營運績效的提升。確定適當的持有或出售策略以優化股東回報並針對目標財產執行處置策略。這三處房產均為針對性出售。這些房產沒有受到抵押債務的拖累。他們的出售將產生大量現金用於再投資。我們將在二月報道更多有關這些房產的資訊。請參閱我們的財務報表附註四，以了解我們的 REO 投資組合的概況。

We have 2 [for] rated loans. These borrowers may take the curative steps we require to cause the loans to remain outstanding or we may enforce our remedies which include foreclosure. We will have more to report on those loans in February after year end. Our weighted average risk rating was unchanged at 3.0 year-to-date our borrowers infused 50.2 million of cash to pay interest fund, capital improvements, make partial principal payments on our loans or otherwise invest in their properties. Please refer to page 54 of our form 10-Q for more detail. Our share of [nomarch] to market nonrecourse term financing increased at quarter end to 79.7% from 78.7% to June 30. Reflecting our historical emphasis on nomarch to market term funding of our investment portfolio.

我們有 2 筆 [針對] 評級的貸款。這些借款人可能會採取我們要求的補救措施，使貸款繼續未償還，或者我們可以執行包括取消抵押品贖回權在內的補救措施。我們將在年底後的二月份發布有關這些貸款的更多資訊。我們的加權平均風險評級今年迄今仍保持在 3.0 不變，我們的借款人注入了 5020 萬美元的現金，用於支付利息基金、資本改善、償還我們貸款的部分本金或以其他方式投資於他們的房產。請參閱我們的 10-Q 表第 54 頁以了解更多詳細資訊。我們在市場無追索權定期融資中的份額從 6 月 30 日的 78.7% 增加到季度末的 79.7%。反映了我們歷來重視投資組合的市場定期融資。

Total leverage was unchanged quarter over quarter at 2.02 to 1 paired with 4.1 billion of financing capacity. Our liability structure is prepared to support continued growth and earning assets in response to improving market dynamics. Our liquidity pricing and loan investment, ROEs continue to improve as we exploit TPG's capital markets platform to source new a creative [nomarch] to market financing. We expect all will help us further optimize our cost efficient, highly nomarch market liability structure, either refinancing existing CLO' s financing loan investments that are currently unencumbered or to finance new loan investments. We were in compliance with all financial covenant since September 30th, 2024, we repurchased 4,603 shares during the third quarter. Under our share repurchase program, TRTX share price appreciation was 31.2% for the first nine months of 2024 making TRTX the leading performer in the commercial mortgage space.

總槓桿率與上一季持平，為 2.02:1，融資能力為 41 億元。我們的負債結構已做好準備，以應對不斷改善的市場動態，以支持持續成長和獲利資產。隨著我們利用 TPG 的資本市場平台為市場融資尋找新的創意，我們的流動性定價和貸款投資以及 ROE 持續改善。我們期望所有這些都能幫助我們進一步優化具有成本效益、高度規範的市場負債結構，無論是為目前不受限制的現有 CLO 融資貸款投資進行再融資，還是為新的貸款投資提供資金。自 2024 年 9 月 30 日起，我們遵守了所有財務契約，我們在第三季回購了 4,603 股。在我們的股票回購計畫下，TRTX 股價在 2024 年前九個月上漲了 31.2%，使 TRTX 成為商業抵押貸款的領導者。

We maintain an appropriate amount of immediate and near-term liquidity at 9.7% of total assets to support our growing volume of investment activity. Cash and near-term liquidity were 357 million comprised of 211 million of cash in excess of our covenant requirements and 130.7 million of undrawn capacity under our secured credit agreements. We also have 35.7 million of an aggregate unpaid principal balance of unencumbered loan assets. During the quarter, we funded 7.6 million of commitments under existing loans and at quarter end, our deferred funding obligations under existing loan commitments totaled only 122.3 million. A mere 3.6% of our total loan commitments. We continue to believe that TRTX offers a tremendous value proposition to investors.

我們將適當的即時和短期流動性維持在總資產的 9.7% 左右，以支持我們不斷成長的投資活動。現金和近期流動資金為 3.57 億美元，其中包括超出我們契約要求的 2.11 億美元現金和根據我們的擔保信貸協議尚未提取的 1.307 億美元。我們也擁有無抵押貸款資產的未償還本金餘額總計 3,570 萬美元。在本季度，我們為現有貸款承諾提供了 760 萬美元的資金，而在季度末，我們在現有貸款承諾下的遞延融資義務總額僅為 1.223 億美元。僅占我們貸款承諾總額的3.6％。我們仍然相信 TRTX 為投資者提供了巨大的價值主張。

We have a strong investment team, low leverage, a liability structure that is 80% [non-market] stable credit ratings and a stable CECL reserve a loan portfolio that is 100% current with no five rated loans. Strong potential for earnings growth, an 11.5% dividend yield on current market value. And We are trading at 73% of book value. Despite all these market leading attributes, the market still imposes a 27% discount to book value. This, 245 million discount is 3.7 times our current CECL reserve of 66.7 million for fund loan balances. This is an inconsistent with empirical data. Our CECL track record has historically closely approximated realized losses for our resolved loans.

我們擁有強大的投資團隊、低槓桿率、80% [非市場] 穩定信用評級的負債結構和穩定的 CECL 儲備，以及 100% 流動的貸款組合，沒有五級貸款。獲利成長潛力強勁，當前市值股息殖利率為11.5%。我們的交易價格為帳面價值的 73％。儘管具有所有這些市場領先的屬性，市場仍然對其帳面價值施加了 27% 的折扣。這 2.45 億的折扣是我們目前 6,670 億的基金貸款餘額 CECL 儲備金的 3.7 倍。這與經驗數據不一致。從歷史上看，我們的 CECL 業績記錄與我們已解決貸款的實際損失非常接近。

In summary, TRTX again delivered the strong operating performance growing investment activity, stable credit ratings and CECL reserve low leverage, substantial liquidity and capacity for earnings growth that are hallmarks of TRTX. And with that, we would like to open the floor to questions. Operator.

總而言之，TRTX 再次實現了強勁的經營業績：不斷增長的投資活動、穩定的信用評級和 CECL 儲備低槓桿率、充足的流動性和盈利增長能力，這些都是 TRTX 的標誌。現在，我們想開始回答問題。操作員。

Thank you. We will now conduct a question-and-answer session. Our first question comes from Stephen Laws with Raymond James. Please proceed.

謝謝。我們現在將進行問答環節。我們的第一個問題來自雷蒙德詹姆斯 (Raymond James) 的史蒂芬勞斯 (Stephen Laws)。請繼續。

Hi, good morning. Doug, you mentioned a couple of just a bit curious on your thoughts around leverage in the loan book are you really comfortable here and focus more on reinvesting repayment proceeds are increasing leverage as we move through the next two quarters?

嗨，早安。道格，您提到了幾個問題，我有點好奇您對貸款帳簿槓桿的看法，您是否真的對此感到滿意，並且更加註重再投資還款收益，隨著我們進入接下來的兩個季度，槓桿率是否會增加？

Yeah, from an investment perspective, we continue to see a number of leverage where we can grow our earnings power, which I had mentioned within my initial transcript and what we are seeing, really on the ground we are seeing repayments. I think that there's little bit of push and pull as to where the 10-year settles, I think as the 10-year creeps up a little bit that in some ways can slow certain repayment activities if a borrower considering a fixed rate financing. But on the other side, I think pushing more borrowers towards the floating rate market. So that's kind of one comment on the sort of front end and then in terms of back leverage, I think the company generally speaking is very modestly levered. Both on an absolute basis but also relative to the rest of the market. So, I do anticipate that as we are out there deploying more capital that our leverage will increase.

是的，從投資角度來看，我們繼續看到一些槓桿，我們可以藉此提高盈利能力，我在最初的記錄中提到過這一點，而我們看到的實際上是在償還款項。我認為，對於 10 年期利率的穩定，存在一些拉鋸戰，我認為，如果借款人考慮固定利率融資，那麼隨著 10 年期利率的逐漸上升，在某種程度上可能會減緩某些還款活動。但另一方面，我認為這會推動更多的借款人走向浮動利率市場。這只是對前端的一種評論，而就後端槓桿而言，我認為總體而言公司的槓桿率非常適中。無論是從絕對基礎來看，還是相對於其他市場而言。因此，我確實預計，隨著我們部署更多資本，我們的槓桿率將會增加。

And when we think about all the potential levers as again Bob mentioned, we also have levers in terms of recycling capital from REO and then also utilizing untapped financing capacity. But again, from a balance sheet cash perspective, I do expect that we will be using a portion of that balance sheet cash to also drive new investments and very likely increase leverage at the company.

當我們考慮所有潛在的槓桿時，正如鮑伯再次提到的，我們也有槓桿，例如從 REO 回收資本，然後利用尚未開發的融資能力。但是，從資產負債表現金的角度來看，我確實預計我們將使用部分資產負債表現金來推動新的投資，並且很可能增加公司的槓桿率。

Yeah, that's great. That was kind of a follow up question I had was around those REO' s mentioned, maybe three kinds of evaluating sales. You will have more [sales] early next year, if you think about recycling that capital, none of them have debt. So, kind of what is the incremental return pick up as you think about that capital moving out of unlevered real estate invested [CRE] loan pipeline.

是的，太棒了。這是我圍繞著 REO 提到的後續問題，大概有三種評估銷售的方法。明年年初你們的銷售額會更高，如果你想回收這些資本，他們都沒有債務。那麼，當您考慮資本從無槓桿房地產投資 [CRE] 貸款管道中流出時，增量回報率是多少？

A good question, Steven, you're right. The three properties that we are currently marketing for sale, none of them are levered with mortgage debt. The straight answer to your question is it depends on which property is being sold. But generally speaking, REO' s in our loan investment business right now we are above 9%.

好問題，史蒂文，你是對的。我們目前正在銷售的三處房產均未使用抵押債務。對你的問題的直接回答是，這取決於出售的是哪處房產。但總體來說，目前我們貸款投資業務中的 REO 比例在 9% 以上。

Some of the ROE properties that we own have yields in excess of that others have yields that are below. And that information is contained in the footnotes to our financial statement. So, it sort of depends on which asset is sold. But generally speaking, we believe that, recycling the capital as we repatriate it into new loan investments will be accreted to the company's earnings in rough terms and you can pick your own REO return on equity for our investments every $100 million of deployed equity capital or recycled capital equates to about three pennies per share per quarter.

我們擁有的部分 ROE 資產的收益率超過其他資產的收益率。該資訊包含在我們的財務報表的腳註中。所以，這有點取決於出售哪種資產。但一般而言，我們認為，當我們將資本遣返到新的貸款投資中時，這些資本的回收將大致計入公司的收益，並且您可以為我們的投資選擇自己的 REO 股本回報率，每 1 億美元部署的股本資本或回收資本相當於每季每股約 3 美分。

Yeah. No, I appreciate those specifics there. That's great Bob and lastly, Doug, I want to touch on life sciences. A couple of your peers have that are now on their watch list or REO it's about 11% or 12% of your portfolio and two of your TOP10 loans. So, can you maybe touch on that property type? Talk about in your general reserve, how you think about the allocation of the General Reserve to those life sciences exposures and making those assets are in their business plans?

是的。不，我很欣賞這些具體細節。太棒了，鮑勃，最後，道格，我想談談生命科學。您的一些同行現在已列入他們的關註名單或 REO，這約佔您投資組合的 11％ 或 12％ 以及您的 TOP10 貸款中的兩筆。那麼，您能談談該房產類型嗎？談談您的一般儲備金，您如何考慮將一般儲備金分配給那些生命科學風險，以及如何將這些資產納入其業務計劃？

Yeah. Well, first, I think as, as Bob had mentioned, I think we have a really strong track record around, where we set, our reserves is meant to reflect our expected view of loss over the life of a loan one. Two, when you think about life sciences, first and foremost, it's an important sector within TPG broadly. The firm has built a successful franchise, investing in life science companies and then also on the real estate side within the equity business we own and operate a large portfolio of life science property. So, in short, it's a sector that we know incredibly well from really a sort of variety of angles.

是的。嗯，首先，正如鮑勃所提到的那樣，我認為我們擁有非常良好的業績記錄，我們設定的儲備金旨在反映我們對貸款期限內損失的預期。二，當你想到生命科學時，首先，它是 TPG 內的一個重要領域。該公司已建立了成功的特許經營權，投資於生命科學公司，然後在股權業務的房地產方面，我們擁有並經營大量生命科學資產組合。簡而言之，我們從多個角度對這個領域都非常了解。

When we think about it through the lending [lens] we have been actively lending in this market since 2015. So again, very familiar, very knowledgeable as it relates to our current portfolio, we have four loans in life sciences against your point comprising a little over 10% of the portfolio. Two of the properties are nearly stabilized with occupancy nearing or exceeding our underwriting and then two that have been fully converted to lab space and are basically currently in [lease] up. So, when we think about our risk, we really kind of center on the tremendous depth of experience here at TPG and investing in the space one and then two, we really believe that the borrowers that we have here are the right sponsors to execute on these business plans. And frankly, there's been significant progress on each deal in that regard.

當我們從借貸的角度思考時，我們自 2015 年以來就一直在這個市場上積極開展借貸業務。因此，再說一次，非常熟悉，非常了解，因為它與我們當前的投資組合有關，針對您的觀點，我們在生命科學領域有四筆貸款，佔投資組合的 10％ 多一點。其中兩處房產的入住率已接近或超過了我們的承保範圍，另外兩處房產已完全轉換為實驗室空間，目前基本上處於[租賃]狀態。因此，當我們考慮風險時，我們真正關注的是 TPG 的豐富經驗以及在該領域的投資，首先，其次，我們真的相信我們的借款人是執行這些商業計劃的合適贊助商。坦白說，在這方面每項協議都取得了重大進展。

Great. Appreciate the color on that Doug. Thanks.

偉大的。欣賞 Doug 的色彩。謝謝。

Thank you. Thanks. The next question comes from Steven DeLaney with JMP Securities. Please proceed.

謝謝。謝謝。下一個問題來自 JMP Securities 的 Steven DeLaney。請繼續。

Good morning, everyone. Thanks for taking the question. Congrats on how you positioned your credit profile. It's really exceptional. So, grasp on that now that we are where we are, and you are not in workout mode. Just curious and what you're seeing Doug in the, in the marketplace as far as opportunities, do you have sort of a target level given the existing capital base on where you think over 6 to 12 months, you might be able to grow the portfolio. I mean, you were 5 billion back at the end of 2022. And admittedly, there's a couple 100 million of [equity] is not around anymore, but just curious kind of a round figure of where if you have a target of where you can be in the next 6 to 12 months in the loan book. Thank you.

大家早安。感謝您回答這個問題。恭喜您已定位了您的信用狀況。這確實很特別。所以，請把握住這一點，因為我們處於目前的狀況，而你還沒有處於鍛鍊模式。只是好奇，道格，就市場機會而言，您在現有資本基礎上是否有一個目標水平，您認為在 6 到 12 個月內，您可能會增加投資組合。我的意思是，到 2022 年底，你的收入就達到 50 億美元。無可否認，有幾億的 [股權] 已經不存在了，但如果你有一個目標，那就是在未來 6 到 12 個月的貸款賬簿上，你只能得到一個大概的數字。謝謝。

Yeah, look, I think that we are obviously can't provide forward guidance, but I'm happy to kind of share, I think some more commentary on really a few of those levers. I really think all those levers point to, growth in terms of our outstanding loan book. Again, I think that the first lever to be clear, is going to be deploying balance sheet cash, right? I think that you can see from our liquidity profile, we have ample liquidity. So, I do expect that that's effectively 11 area where We will be able to grow the balance sheet. If, if you use, , again, a 2 to 1 leverage ratio, let's just say on new investments. That means, let's call it approximately $33 million of equity. Can fuel approximately $100 million of new loan investments just to get kind of one number. And then Bob had sort of mentioned kind of what $100 million of investment activity will do in terms of, driving earnings on a quarterly basis. When we think about the other levers, first of all the recycling of capital, from REO I think Bob had mentioned, we are in the market right now with three of our five REO assets. And, we will have a more robust update for the market over the next quarter. But that again will provide very clear path towards growing our outstanding loan balances. And then lastly, we are somewhat under levered in terms of our existing financing capacity and that's where also we have yet another path for us to be able to grow our investment portfolio. So again, I think that we are unique in that we do have all of those levers one and then we are combining that with an opportunity set that we frankly haven't even experienced yet in sort of real estate lending with banks pulling back from direct lending. And then also being more aggressive, I would say on the loan-on-loan side and when we see the loan-on-loan quotes that We are getting, they are in many cases inside of the spread that we are seeing within the series CLO market. So, it does provide a really great stable source for us to be able to grow our investment portfolio. Given really all those vectors that are kind of pointing in our direction.

是的，看，我認為我們顯然無法提供前瞻性指引，但我很樂意分享一些關於這些槓桿的評論。我確實認為所有這些槓桿都指向我們未償還貸款帳簿的成長。再一次，我認為首先要明確的是，部署資產負債表現金，對嗎？我想您可以從我們的流動狀況中看到，我們擁有充足的流動性。因此，我確實預計這實際上是我們能夠增加資產負債表的 11 個領域。如果，如果您再次使用 2 比 1 的槓桿率，我們就說新的投資。這意味著，我們將其稱為約 3,300 萬美元的股權。光是為了得到一個數字就可以刺激大約1億美元的新貸款投資。然後鮑伯提到了 1 億美元的投資活動將對季度收益產生什麼影響。當我們考慮其他槓桿時，首先是資本的回收，我想鮑勃曾經提到過，我們現在在市場上擁有五種 REO 資產中的三種。而且，我們將在下個季度為市場提供更強勁的更新。但這又將為增加我們的未償還貸款餘額提供非常明確的道路。最後，就我們現有的融資能力而言，我們的槓桿率有些不足，而這也是我們能夠擴大投資組合的另一個途徑。因此，我認為我們的獨特之處在於，我們確實擁有所有這些槓桿，然後我們將其與我們尚未經歷過的機會相結合，坦白說，隨著銀行撤出直接貸款，房地產貸款就是其中的一種。然後，我會說，在貸款對貸款方面，我們會更加積極，當我們看到我們得到的貸款對貸款報價時，它們在許多情況下都處於我們在系列 CLO 市場中看到的價差之內。因此，它確實為我們擴大投資組合提供了一個非常穩定的來源。考慮到所有這些向量都指向我們的方向。

Thanks for that Doug and , applaud, I applaud the share buyback. Certainly, if at the 25% discount to the stock on book, just curious as you look at the capital mix going forward, do you see a place for high yield debt? I mean, obviously the bond market sold off, but about 70 basis, 60, 70 basis points higher, I guess now on the 10 years. But if things were to come back down as the fed proceeds, that does in the five-year notes, 5- or 7-year unsecured notes make sense for TRTX just to mix in a little corporate leverage to your financing mix. Thank you.

謝謝 Doug，我為股票回購鼓掌。當然，如果帳面股票有 25% 的折扣，那麼好奇的是，當您展望未來的資本組合時，您是否認為高收益債務還有一席之地？我的意思是，債券市場顯然遭到拋售，但我猜現在 10 年期公債殖利率大約上漲了 70 個基點，60、70 個基點。但如果隨著聯準會的行動，情況開始回落，那麼五年期國債、五年期或七年期無擔保國債對 TRTX 來說是有意義的，只需將一點企業槓桿混入你的融資組合中。謝謝。

Yeah, look, I mean, Bob and I are constantly looking at ways that we can appropriately and efficiently lever our balance sheet. So, I think that in the past, we have a record of being really tactical and thoughtless to how we capitalize ourselves with, risk premium in the corporate market continue to remain tight. I think that I do expect that we will be looking into that market over time frankly, as we lever our balance sheet back up, I think for us our sort of near-term focus again is going to be maximizing those levers that I had mentioned in terms of balance sheet, cash, recycling of capital. And then utilizing untapped financing capacity as big drivers. But available financing alternatives are definitely abundant across, again both the asset market on a loan-on-loan basis and also at the corporate level. So, you should just expect that we will be, utilizing every possible kind of tool in the tool kit as it comes to appropriately levering the balance sheet.

是的，我的意思是，鮑伯和我一直在尋找能夠適當且有效地利用我們的資產負債表的方法。所以，我認為，過去我們在如何利用自身資本方面確實採取了非常策略性和不加思索的記錄，企業市場的風險溢價仍然保持緊張。我確實希望隨著時間的推移，我們會逐漸關注這個市場，坦白說，隨著我們資產負債表的重新槓桿化，我認為對於我們來說，近期的重點將再次是最大限度地利用我在資產負債表、現金、資本循環利用方面提到的那些槓桿。然後利用尚未開發的融資能力作為巨大的推動力。但可用的融資替代方案確實非常豐富，無論是在資產市場上的貸款還是在企業層面。所以，你應該預期我們將會利用工具包中的所有可能的工具來適當地利用資產負債表。

Appreciate the comments this morning. Thanks.

感謝今天早上的評論。謝謝。

Thank you. The next question comes from Donald Fandetti with Wells Fargo. Please proceed.

謝謝。下一個問題來自富國銀行的唐納德·范德蒂。請繼續。

Hi, can you talk about the risk of migration of three rated loans to four rated? And I have a follow up as well.

您好，可以談談三級貸款遷移到四級貸款的風險嗎？我也會跟進。

Thank you for the question, Don. A couple of points on that first as both Doug and I mentioned in our prepared remarks, we had no risk migration in any direction during the quarter just ended. I think more importantly, some comments on how we manage that process and what the empirical data tells us about migration behavior over time. First, we do spend a lot of time asset managing our loans. As I think people on the call are aware, we do portfolio reviews on a quarterly basis. We assign or revisit risk ratings at least quarterly and, and frankly, we review recent developments on some loans even more frequently than that. , we've looked at our risk rating migration over time and I, I think that what's interesting to note we have mentioned this before on calls is that for us, at least, the majority, about two thirds of the loans that we see migrate from 3 to 4, end up resolving in a normal way. Typically, the bar repays us either through a refinancing or a sale and that's been true over the period that includes, the post COVID environment. Some, loans that fail to keep up with their business, their underwritten business plan over time are going to migrate to four or at least they have in the past, whether that happens in the future is a very loan by loan issue. And then, obviously some assets do migrate to the five categories, although that pace has slowed considerably over the last couple of years. So, I hope that answers your questions, but the fundamental thing is migration does happen, it hasn't happened in our portfolio recently when it does and it's a migration for the more likely than not outcome is that the loan is resolved at par. Don, you said you had a follow up question?

謝謝你的提問，唐。首先要說幾點，正如道格和我在我們的準備好的發言中提到的那樣，在剛結束的這個季度裡，我們並沒有向任何方向發生風險轉移。我認為更重要的是，一些關於我們如何管理這個過程以及經驗數據告訴我們有關隨時間推移的遷移行為的評論。首先，我們確實花費大量時間對貸款進行資產管理。我想電話會議中的人都知道，我們每季都會進行投資組合審查。我們至少每季都會授予或重新審視風險評級，坦白說，我們甚至會更頻繁地審查某些貸款的最新發展。我們一直在研究我們的風險評級隨時間的變化，我認為值得注意的是，我們之前在電話會議上提到過這一點，對於我們來說，至少大多數，大約三分之二的貸款從 3 級遷移到 4 級，最終都以正常方式解決。通常情況下，酒吧會透過再融資或出售的方式償還我們，在包括後疫情時代的時期內，情況也是如此。一些貸款無法跟上他們的業務，隨著時間的推移，他們承保的業務計劃將會遷移到四個，或者至少他們過去曾經遷移過，至於未來是否會發生這種情況，則是一個非常具體的貸款問題。然後，顯然一些資產確實會遷移到這五個類別，儘管這一速度在過去幾年中已經明顯放緩。所以，我希望這能回答你的問題，但根本問題是遷移確實會發生，這種情況最近在我們的投資組合中沒有發生過，而且遷移的可能性更大的結果是貸款按面值解決。唐，你說你有一個後續問題？

Yeah, as I think about book value near term, I guess the p first of all, it's good to see another quarter of stability overall on credit. But as I kind of think about stressing the book value risk, I guess the four rated loans, the 200 million, you could potentially have to put more reserves on those if they move to five. But then I guess on REO it sounds like you're feeling pretty good about your basis versus where those sales could be executed the right way to think about it.

是的，當我考慮近期的帳面價值時，我首先想到的是，很高興看到信貸整體在另一個季度保持穩定。但當我考慮強調帳面價值風險時，我想如果四筆評級貸款（即 2 億美元）增加到五筆，那麼您可能需要對這些貸款投入更多準備金。但我想，就 REO 而言，聽起來你對自己的基礎感覺很好，而不是以正確的方式思考這些銷售可以執行的地方。

I think there are two questions. Let's talk first about REO, the accounting rules in our business discipline are both very clear when a company acquires an asset through foreclosure deed in lieu, what have you and it becomes REO you take that asset on your books at then market value. All of our REO assets have been acquired over the past year. So, they are in our view, current values or at least they were at the time that the properties were acquired. So, if that were not the case, then we would have booked or we would need to book a write down and we haven't. And We will have more as Doug said, and as I said, next quarter, report on the outcome of these sales processes. With respect to the need to book more reserves, this gets to some fundamental issues about CECL and its application, CECL by definition is it's intended to represent management's expected losses on a loan over it's the life of that loan. So, needing to build more reserves, shouldn't be necessary, but based on what a registrant knows about its loan book today and what it expects will happen with that loan in the future. So, we are comfortable with our CECL reserve. It's been very stable for almost a year. And if facts and circumstances on individual loans change over time, then that will get reflected in the following quarters. CECL analysis. But, if you, as you have seen our risk ratings have been quite stable, the portfolio is performing well, we have identified the assets that are for us where we are pretty focused, and We are just doing our work. And I think our body of work overtime suggests that we do a good job in terms of asset managing and resolving credit challenge loans when they arise any further follow up there.

我認為有兩個問題。首先我們來談談 REO，我們商業學科中的會計規則非常明確，當一家公司通過代替取消抵押品贖回權契約獲得一項資產時，您擁有什麼，它就變成了 REO，您按照當時的市場價值將該資產記入賬簿。我們所有的 REO 資產都是在過去一年內收購的。因此，我們認為，它們是當前的價值，或至少是收購這些房產時的價值。所以，如果不是這種情況，那麼我們就會登記，或者我們需要登記減記，但我們還沒有。正如道格和我所說的，下個季度我們將提供更多關於這些銷售流程結果的報告。關於需要預留更多準備金的問題，這涉及 CECL 及其應用的一些基本問題，CECL 的定義是，它旨在表示管理層在貸款期限內對貸款的預期損失。因此，建立更多儲備金不是必要的，而是基於登記人目前對其貸款帳簿的了解以及其對該貸款未來情況的預期。因此，我們對我們的 CECL 儲備感到滿意。近一年來一直非常穩定。如果個人貸款的事實和情況隨著時間的推移而變化，那麼這將反映在接下來的幾個季度中。CECL 分析。但是，正如您所看到的，我們的風險評級一直非常穩定，投資組合表現良好，我們已經確定了我們非常關注的資產，我們只是在做我們的工作。我認為，我們加班的工作表明，我們在資產管理和解決信用挑戰貸款方面做得很好，當出現任何進一步的後續時。

I'm all set. Okay, thank you.

我已準備好了。好的，謝謝。

The final question comes from Rick Shane with JP Morgan, please proceed.

最後一個問題來自摩根大通的 Rick Shane，請繼續。

Hey, can you tell us a little bit more about what your origination pipe pipeline looks like? Where are you seeing the most attractive opportunities right now?

嘿，你能告訴我們更多關於你的起源管道管道的情況嗎？現在您認為最具吸引力的機會在哪裡？

Sure. So right now, from an investment perspective, we continue really to focus primarily on multifamily and industrial. I think as we mentioned earlier in the call, we will look at other property types selectively but, multifamily and industrial continue to be two sectors where, we have strong conviction in terms of the long-term secular demand on the assets one, two we think as we have seen transaction activity pick up on the margin again, we are nowhere near back to where we were a few years ago. That activity has largely been concentrated within multifamily and industrial. And I do expect that as we begin to see the front of the curve go a bit lower, that only going to increase acquisition activity. And, borrowers' willingness to frankly take on a transitional business plan, which is exactly really where we have the sort of core of our lending exposure currently and frankly, where we will be lending. So, when we look at the forward opportunity set again, it's, it's primarily multifamily industrial one. Two, I think, one thing that I sort of highlighted is when you look at the real estate values versus particularly even where, the sort of corporate market is value is valued real estate values, have, have really lagged on a relative basis. And why that matters for our company is that it just provides an incredibly attractive entry point from a loan to value perspective.

當然。因此，現在從投資角度來看，我們仍然主要關注多戶型住宅和工業領域。我認為，正如我們早些時候在電話會議中提到的那樣，我們將有選擇地研究其他類型的房地產，但是，多戶住宅和工業仍然是兩個領域，我們對資產的長期長期需求堅信不疑，其次，我們認為，隨著交易活動的再次回升，我們遠未回到幾年前的水平。該活動主要集中在多戶住宅和工業領域。我確實預計，當我們開始看到曲線前端稍微下降時，收購活動只會增加。而且，借款人願意坦率地接受過渡性商業計劃，這正是我們目前貸款敞口的核心所在，坦白說，也是我們將要貸款的地方。因此，當我們再次審視未來的機會時，它主要是多戶型工業機會。二，我認為，我要強調的一點是，當你看房地產價值時，特別是即使企業市場的價值與房地產價值相比，相對而言確實已經落後。這對我們公司如此重要，因為從貸款價值的角度來看，它提供了一個極具吸引力的切入點。

So simply put, if we are lending today, I mentioned that our investments this quarter blended to about 63 LTV. Because values are generally down from the very peak, we are actually lending at a lower LTV relative to peak values, which is very different from most other parts of frankly broader credit markets. And then I would say lastly, again, I can't highlight enough sort of appetite on the back leverage side. So, what that also means is that not only do we have ample liquidity and generally attractive terms on the back leverage side as spread there go tighter, but that allows us to originate loans at marginally tighter spreads on much lower credit risk assets while still being able to generate mid teen' s ross returns on these investments. So, it's a really powerful combination of frankly three big drivers.

簡單地說，如果我們今天放貸，我提到我們本季的投資混合至約 63 LTV。由於價值總體上從峰值下降，我們實際上以相對於峰值較低的 LTV 進行放貸，這與其他大多數更廣泛的信貸市場部分非常不同。最後我想說的是，我再一次強調了對後槓桿的興趣。因此，這也意味著，隨著利差收窄，我們不僅有充足的流動性和在後槓桿方面普遍具有吸引力的條款，而且這還使我們能夠以略微收緊的利差對信用風險低得多的資產發放貸款，同時仍然能夠從這些投資中獲得中等水平的總回報。所以，坦白說，這是三大驅動因素的真正強大組合。

Okay, thank you. And then can you also just give us an update on your share repurchase plans? How are you weighing against that against the current share price or versus doing more originations?

好的，謝謝。那麼您能否向我們介紹一下您的股票回購計畫的最新情況？您如何衡量目前股價與進行更多發起相比的優劣？

Sure. we are looking at both actively and I shared a lot about kind of how we are thinking about originations and some of the levers that we have that are at our disposal to be able to pull on the share repurchase side. Look, I mean, we purchased a frankly a modest amount of shares this past quarter. What I can share is that the repurchase plan remains in place and frankly, we continue to view share repurchases as an attractive means of allocating shareholder capital.

當然。我們正在積極研究這兩方面，我分享了很多關於我們如何考慮發起以及我們可以利用哪些槓桿來推動股票回購方面的進展。你看，我的意思是，我們在上個季度買了少量股票。我可以分享的是，回購計劃仍然有效，坦白說，我們仍然將股票回購視為分配股東資本的一種有吸引力的方式。

Great. Thank you.

偉大的。謝謝。

Thank you. Thank you. At this time. I would like to turn the call back to management for closing comments.

謝謝。謝謝。此時。我想將電話轉回給管理階層，請他們發表最後評論。

Thank you for joining our call this morning and we look forward to updating you on the progress here at TRTX in the next couple of months. Thank you.

感謝您今天早上參加我們的電話會議，我們期待在接下來的幾個月內向您通報 TRTX 的進展。謝謝。

Thank you. This does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation and have a great day.

謝謝。今天的電話會議到此結束。現在您可以斷開您的線路。感謝您的參與並祝您有愉快的一天。