TPG RE Finance Trust, Inc.

first quarter 2021 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I would now like to turn the conference over to Deborah Ginsburg, General Counsel. Thank you. You may begin.

Good morning, and welcome to TPG Real Estate Finance Trust's conference call for the first quarter of 2021. I'm joined today by Matt Coleman, President, Bob Foley, Chief Financial Officer, and Peter Smith, Chief Investment Officer. Matt and Bob will share some comments around the corner, quarter, excuse me, and then we'll open up the call for questions. Yesterday evening, we filed our Form 10-Q and issued a press release with a 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 10-Q and 10-K. We do not undertake any duty to update these statements, and we will also refer to certain non-GAAP measures on this call. And for reconciliations, you should refer to the press release in our 10-Q. With that, I turn the call over to Matt Coleman, President of TPG Real Estate Finance Trust.

Thank you, Deborah. Good morning, and thank you for dialing in. TRTX had a busy and productive first quarter. As we reported last night, we generated gap net income attributable to common stockholders of $24.2 million for the quarter, or 30 cents per diluted common share, and distributable earnings of $21.7 million Or 27 cents per diluted share book value increased to 1661 per share. That's up from 1650 at the end of Q4 2020. In part, because we reduced our Cecil reserve by 4Million dollars to 58.8Million dollars at quarter end. Or 118 basis points of total loan commitments. During the 1st quarter, we made substantial progress on the strategic goals and initiatives that we articulated on our last call. First, we said that we were going to restart the originations engine, and we've done that. We closed a $45 million multifamily loan in Indianapolis prior to quarter end, and we subsequently closed a $47 million multifamily loan in St. Petersburg, Florida immediately following quarter end. Additionally, we have under term sheet seven loans with an aggregate commitment amount of $589 million split roughly equally between multifamily and life sciences. Recent macro metrics show the strength of the continuing recovery, manifesting in robust real estate capital markets, increased investor optimism, abundant liquidity, and relatively high levels of transaction volume. Against that backdrop, we have an active originations pipeline with more than $5.5 billion of first mortgage loan opportunities under consideration. And we have substantial liquidity to support our investing activity. with more than $290 million of unrestricted cash on the balance sheet as of March 31st, and approximately $310 million of cash in CLOs available for investment in eligible collateral. In today's highly competitive lending markets, TPG's sponsorship remains a competitive advantage for us, giving our teams access to the firm's immense intellectual capital, deep sets of relationships and networks, and powerful market insights. As we've reentered the lending markets, our discipline view on credit has remained the same. Our focus is on quality assets, markets, and sponsors, and these remain core principles for us. With respect to our second area of strategic focus, we're continuing to optimize our capital structure, and we made important progress on this front during the first quarter. We priced and closed TRTX 2021 FL4. a $1.25 billion managed CRE CLO with a 24-month reinvestment period and a weighted average interest rate at issuance of LIBOR plus 160 basis points. That's before transaction costs. Importantly, SL4 includes an approximately $309 million ramp, almost all of which is planned to be utilized in connection with our already identified pipeline. Following the closing of FL4, 84% of our liabilities are now non-mark-to-market, up from about 45% in early 2020 and 64% as of year-end 2020. Finally, we've continued our active asset management initiatives, and our portfolio is performing very well. We reduced our CECL reserve, as I mentioned, by $4 million at the end of the first quarter, reflecting the resiliency of the loan portfolio borrower support where needed, and our increasingly optimistic view of macroeconomic conditions. Interest collections for the quarter exceeded 99%, with our one defaulted retail loan in Southern California being our sole non-accrual loan. As a result, Q1 risk ratings were stable compared to Q4 2020 at 3.1. As we've explained before, our strategic plan for 2021 is at the intersection of the initiatives I've just gone through. Active asset management of the loans in our portfolio, robust originations focused on compelling underlying credit, and optimizing our capital structure. We're proud of the progress that we've made in the first quarter, and we look forward to updating you on further accomplishments as we move forward. With that, I'll turn the call over to Bob to discuss our first quarter results in more detail.