TPG RE Finance Trust, Inc. (NYSE:TRTX) Q2 2020 Earnings Conference Call - Final Transcript

Jul 30, 2020 • 08:30 am ET


TPG RE Finance Trust, Inc. (NYSE:TRTX) Q2 2020 Earnings Conference Call - Final Transcript


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Greetings. Welcome to the TPG RE Finance Trust Second Quarter 2020 Earnings Conference Call. [Operator Instructions] Please note this conference is being recorded.

I will now turn the conference over to your host, Deborah Ginsberg. You may begin.

Deborah Ginsberg

Thank you. Good morning, and welcome to TPG Real Estate Finance Trust's second quarter 2020 conference call. I'm joined today by Greta Guggenheim, Chief Executive Officer; and Bob Foley, Chief Financial Officer. Greta and Bob will share some comments about the quarter, and then we'll open up the line for questions.

Yesterday evening, we filed our Form 10-Q and issued a press release with the presentation of our operating results. All of which are available on our website in the Investor Relations section.

I'd like to remind everyone that today's call may include forward-looking statements, which are uncertain and outside of the Company's control. Actual results may differ materially. For a discussion of some of the risks that could affect results, please see the Risk Factors section of our most recent 10-K and 10-Q reports. We do not undertake any duty to update these statements, and you should -- we will also refer to certain non-GAAP measures on this call. And for reconciliations, you should refer to the press release and our Form 10-Q.

With that, it's my pleasure to turn the call over to Greta Guggenheim, Chief Executive Officer of TPG Real Estate Finance Trust.

Greta Guggenheim

Thank you, Deborah. Good morning, and welcome to our second quarter earnings call. While the equity and debt capital markets indicate we are in a recovery, we expect to continue to see significant volatility. The time it will take for us to meaningfully recover is unknown. With US air travel at a relative standstill, and office attendance very low, real estate NOI continues to have downward pressure. Although we believe the trough is behind us, we operate in an environment where there is no clarity regarding near-term economic conditions. Additionally, there are numerous factors that will continue to affect the slope of the recovery period, virus spread, vaccine, the election, relations with China, to name just a few. In this environment, we are defensively focused.

In particular, we are taking the following steps to best position our Company. First, we have added to our senior management. I am delighted to announce that Matt Coleman joined us this week as President of the REIT. Matt's experience with TPG's real estate equity investing business, prior workout experience during the Great Recession and his legal and operational background brings valuable experience and perspective to our business. Matt is very familiar with TRT, as he has been continuously involved with us, starting with our inception in 2015, through the IPO in 2017 and to the present. We look forward to partnering with him.

Second, we are focused on liquidity. A key driver of liquidity is the timing of loan repayments. During the first half of the year, repayments were $321 million. Repayments in the last two years, prior to March, generally