TPG RE Finance Trust, Inc.

Good morning and welcome to the TPGRE Finance Trust first quarter 2023 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please sign up a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one, on your telephone keypad. To withdraw your question, please press Start and Chew. Please note, this event is being recorded. I would now like to turn the conference over to Deborah Ginsburg, General Counsel, Vice President, and Secretary. Please go ahead.

Good morning, and welcome to TPG Real Estate Finance Trust's conference call for the first quarter of 2023. I'm joined today by Doug Bucard, Chief Executive Officer, and Bob Foley, Chief Financial Officer. Doug and Bob will share some comments throughout the quarter, and then we'll open up the call for questions. Yesterday evening, we filed our Form 10-Q and issued a press release and earnings supplemental 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 factor section of our 10Q and our 10K. We do not undertake any duty to update these statements. We will also refer to certain non-GAAP measures on this call. And for reconciliations, you should refer to the press release and our 10Q. With that, I turn the call over to Doug LeCarde, Chief Executive Officer of TPG Real Estate Branch Trust.

Thank you, Deborah. Good morning, and thank you for joining our call today. The broad real estate credit and equity markets continue to face headwinds driven by elevated interest rates, reduced available liquidity, and continued pressure on valuations. Over the past quarter, these trends were exacerbated by the current regional banking crisis, a greater sense of concern over commercial real estate broadly, and the secular pressures facing the office property market. Transaction activity continues to slow across all real estate sectors. and is reflected in our relatively modest investment and repayment activity during the past quarter. We continue to be front-footed in acknowledging these market trends and have positioned TRTX accordingly. We've maintained ample liquidity, we've been selective with new investments, and we have continued to proactively asset manage our current balance sheet. Over the past quarter, we originated two loans with total commitments of $124 million comprised one portfolio of industrial assets and one hotel asset with a blended LTV of 59%. Each of these loans was financed with match term, non-recourse, non-mark-to-market financings. On the repayment side, we had $228 million of repayments during the quarter, of which 50% of the loan repayments were office loans, bringing our total office exposure down to 27% at quarter end. Subsequent to quarter end, we had a $46 million office loan repay, bringing our total office exposure down to 26%, which reflects a 38% decrease in office exposure over the past five quarters. Despite our reduction in net income quarter over quarter, our CECL reserve and blended risk ratings remain approximately flat, and we continue to be steadfast in our proactive asset management approach. We work collaboratively with our borrowers in the most effective manner possible, avoiding the kick the can down the road approach while acknowledging that one size does not fit all when it comes to resolving individual assets. In short, the broad resources of TPG's global investment platform and our deep experience across both the real estate debt and equity business afford us a wide array of asset management tools that TRTX will employ to maximize shareholder value. From a liquidity perspective, we continue to be highly focused on striking the appropriate balance between deploying capital in the new investments on a highly selective basis and maintaining sufficient liquidity for need that they may arise. Our quarter end liquidity totaled $663 million and included $133 million of balance sheet cash and $457 million of CLL reinvestment cash. We intend to continue to maintain ample liquidity to navigate an increasingly volatile market environment. Lastly, our ability to deliver for our shareholders and execute on our business plan is rooted in two key advantages. One, the tremendous insights and perspectives gained through our $20 billion AUM TPG real estate platform, and two, a deeply experienced leadership team with an average of 25-plus years of experience in the real estate credit markets across numerous cycles. With that, I will turn it over to Bob for a review of our financial results.