Q3 2020 TPG RE Finance Trust Inc Earnings Call

Stock repurchase given where the stock trades.

Relative to book value I know you said.

Cited confidence in the value of the portfolio. During your prepared remarks, so wanted to get your thoughts on how you think about.

New investments versus stock repurchase.

Yes.

This year.

And so.

Yes, very good question, it's very asset specific.

Our it when we look at our portfolio our multifamily assets has been very steady performance wise and when you look at the investment sales market in many markets other than you know.

New York City Manhattan.

You are seeing apartment projects trade it at the same or even better levels than pre pandemic. So we're not as concerned about those assets, particularly if you maintain moderate leverage will will walk through our office assets more quickly we still we don't have major.

Exposure.

Valuation concerns on our office and we can talk about our New York City office and explain why we're comfortable that as well, but it's I guess to answer your question and not be so long winded. It is.

It's very asset specific in general having.

Less marked to market and the thing is is desirable and we're going to continue to work on getting that higher, particularly as the COO market looks like it's returning on in terms of financing options.

So you know.

I don't have a specific target in mind in general more is better but it also depends on the asset type.

Right I guess, one last follow up on that but.

Yes, we look at the recent financing at L plus four and a half with the 25 the floors that is that kind of the market now for that non mark to market financing or is that specific because the line was designed for the hotel loans and so therefore, a little higher.

Think about that as we work after financing costs.

I think it was specific to hotel loans in the middle of a health pandemic.

Right. That's helpful. Thanks, very much for your comments this morning.

And Stephen direct response to your earlier question.

The NIM with respect to the loss of Las Vegas land loan.

On a monthly basis is approximately $420000.

Great. Thanks, Bob.

Our next question comes from the line of Steve Delaney with JMP Securities. Please proceed with your question.

Uhm.

The age of some of our loans too because we did originate.

In the.

Fourth quarter of 19, and the early parts of the first quarter of 2020 sit in the even print covid. The average life of below with somewhere between two and two and a half years.

So given the combination of are still in.

And a.

Inefficient economy and get the some of the newer assets I I think it's gonna be closer to to this year's level.

It would seem to me, but as far as modeling it would be prudent for us too too soon but you know whether it's.

It took call it 200 over LIBOR range. So there is a there was a big range between those two endpoints I think that for the rest of our financing costs and the rest of the space you should be thinking more toward the low end of that range, but probably higher than the 100 and.

64 basis points or so that's our weighted average cost of capital.

The capital markets have clearly.

Shown some some legitimate signs of recovery.

Right, it's been a cost effective borrower and.

And we think that we will continue to be that way, obviously getting more term.

As an important strategic objective as Chris stated and that.

Steve.

Thank you Steve.

As a reminder, if you would like to ask a question press star one on your telephone keypad.

Our next question comes from the line of Charlie Oresteia with J P. Morgan. Please proceed with your question.

Very good morning, rather than Bob Thanks for taking the questions. Today I appreciate that you guys disclose the breakout of light to moderate transitional alone categories with.

With moderate.

Around a third or so of the portfolio just wondering how you guys are thinking about.

The future funding commitments on those loans and I'm also wondering if that's where the most of the loan modification so far have taken place.

In in terms of the loan modifications no. It just really not a great correlation too that category.

The longest falling into that categorization. The biggest correlation is how badly with that property type affected by the pandemic, which.

Unsurprisingly as our hotel lungs.

And the.

Alright.

The.

Cause I briefly touched on in my opening comments, we have very moderate deferred bundy and frankly, we have none related to any construction lines and the.

We are also able to back clever in the 70% to 73% type of range on our.

On our the third and funding obligations. So <unk>, it's really I think.

That is a relatively low number I think among the the C pier set the amount of deferred punnings. We have so it's it's not something that.

<unk>, we have things, we worry about that's really not one of them.

Got it alright grandchildren country.

[noise] just Guggenheim we have no further questions at this time I would now like to turn the floor back over to you for closing comments.

Well again, thank you all for taking time today I know that there's numerous distractions as well as other important calls going on and we thank you for taking the time and we look forward to speaking to you at three months out and hopefully it so much better times for for all of Us.

Have a great holiday season. Thank you.

Ladies and gentlemen, this does conclude today's teleconference. You may disconnect. Your lines at this time. Thank you for your participation and have a wonderful day.