TPG RE FINANCE TRUST, INC., 10-K filed on 2/26/2018
Annual Report
v3.8.0.1
Document And Entity Information - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Feb. 23, 2018
Jun. 30, 2017
Document Information [Line Items]      
Document Type 10-K    
Amendment Flag false    
Document Period End Date Dec. 31, 2017    
Document Fiscal Year Focus 2017    
Document Fiscal Period Focus FY    
Trading Symbol TRTX    
Entity Registrant Name TPG RE Finance Trust, Inc.    
Entity Central Index Key 0001630472    
Current Fiscal Year End Date --12-31    
Entity Well-known Seasoned Issuer Yes    
Entity Current Reporting Status Yes    
Entity Voluntary Filers No    
Entity Filer Category Non-accelerated Filer    
Entity Public Float     $ 501.4
Common Stock      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   59,174,286  
Class A Common Stock      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   1,167,714  
v3.8.0.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2017
Dec. 31, 2016
ASSETS    
Cash and Cash Equivalents [1] $ 75,037 $ 103,126
Restricted Cash [1] 700 849
Accounts Receivable [1] 141 644
Accounts Receivable from Servicer/Trustee [1] 220 34,743
Accrued Interest Receivable [1] 16,861 14,023
Loans Held for Investment (includes $2,694,106 and $1,397,610 pledged as collateral under secured revolving repurchase agreements) [1] 3,175,672 2,449,990
Investment in Commercial Mortgage-Backed Securities, Available-for-Sale (includes $47,762 and $51,305 pledged as collateral under secured revolving repurchase agreements) [1] 85,895 61,504
Other Assets, Net [1] 859 704
Total Assets [1] 3,355,385 2,665,583
Liabilities    
Accrued Interest Payable [1] 5,385 2,907
Accrued Expenses [1] 5,067 6,555
Collateralized Loan Obligation (net of deferred financing costs of $0 and $2,541) [1]   540,780
Secured Revolving Repurchase and Senior Secured Agreements (net of deferred financing costs of $8,697 and $8,159) [1] 1,827,104 1,013,370
Notes Payable (net of deferred financing costs of $1,601 and $2,883) [1] 287,886 108,499
Payable to Affiliates [1] 5,227 3,955
Deferred Revenue [1] 317 482
Dividends Payable [1] 23,068 18,346
Total Liabilities [1] 2,154,054 1,694,894
Commitments and Contingencies—See Note 14 [1]
Stockholders’ Equity:    
Preferred Stock ($0.001 par value; 100,000,000 and 125 shares authorized; 125 and 125 shares issued and outstanding, respectively) [1]
Additional Paid-in-Capital [1] 1,216,112 979,467
Accumulated Deficit [1] (14,808) (10,068)
Accumulated Other Comprehensive (Loss) Income [1] (34) 1,250
Total Stockholders' Equity [1],[2] 1,201,331 970,689
Total Liabilities and Stockholders' Equity [1] 3,355,385 2,665,583
Common Stock, Undefined Class    
Stockholders’ Equity:    
Common Stock Value [1] 60 39
Class A Common Stock    
Stockholders’ Equity:    
Common Stock Value [1] 1 1
Total Stockholders' Equity $ 1 $ 1
[1] At December 31, 2017, there were no VIE assets or liabilities recorded in the Company’s Total Assets and Total Liabilities. The Company’s consolidated Total Assets and Total Liabilities at December 31, 2016 include VIE assets and liabilities of $743.5 million and $542.8 million, respectively. These assets were available only to satisfy obligations of the VIE, and creditors of the VIE had recourse only to those assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details
[2] Shares issued and shares outstanding reflect the impact of the common stock and Class A common stock dividend which was paid upon completion of the Company’s initial public offering on July 25, 2017 to holders of record as of July 3, 2017. See Note 12 to the Consolidated Financial Statements for details.
v3.8.0.1
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2017
Dec. 31, 2016
Preferred stock, par value $ 0.001 $ 0.001
Preferred stock, authorized shares 100,000,000 125
Preferred stock, shares issued 125 125
Preferred stock, shares outstanding 125 125
Common stock, par value $ 0.001 $ 0.001
Common stock, authorized shares 300,000,000 95,500,000
Common stock, shares issued 59,440,112 47,251,165
Common stock, shares outstanding 59,440,112 47,251,165
Total assets [1] $ 3,355,385 $ 2,665,583
Total liabilities [1] 2,154,054 1,694,894
Variable Interest Entity, Primary Beneficiary    
Total assets 0 743,500
Total liabilities $ 0 $ 542,800
Class A Common Stock    
Common stock, par value $ 0.001 $ 0.001
Common stock, authorized shares 2,500,000 2,500,000
Common stock, shares issued 1,178,618 1,194,863
Common stock, shares outstanding 1,178,618 1,194,863
Repurchase Agreements    
Loans pledged as collateral $ 2,694,106 $ 1,397,610
Deferred financing costs 8,697 8,159
Commercial Mortgage-Backed Securities | Repurchase Agreements    
Available-for-sale securities pledged as collateral 47,762 51,305
Collateralized Loan Obligation    
Loans pledged as collateral   712,158
Deferred financing costs 0 2,541
Notes Payable    
Deferred financing costs $ 1,601 $ 2,883
[1] At December 31, 2017, there were no VIE assets or liabilities recorded in the Company’s Total Assets and Total Liabilities. The Company’s consolidated Total Assets and Total Liabilities at December 31, 2016 include VIE assets and liabilities of $743.5 million and $542.8 million, respectively. These assets were available only to satisfy obligations of the VIE, and creditors of the VIE had recourse only to those assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details
v3.8.0.1
Consolidated Statements of Income and Comprehensive Income - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
INTEREST INCOME      
Interest Income $ 198,903 $ 153,631 $ 128,647
Interest Expense (78,268) (61,649) (47,564)
Net Interest Income 120,635 91,982 81,083
OTHER REVENUE      
Other Income, net 1,697 416 54
Total Other Revenue 1,697 416 54
OTHER EXPENSES      
Professional Fees 3,132 3,260 5,224
General and Administrative 2,975 2,199 784
Servicing and Asset Management Fees 3,068 3,625 4,011
Management Fee 14,096 8,816 6,902
Collateral Management Fee 225 849 1,257
Incentive Management Fee 4,338 3,687 1,992
Total Other Expenses 27,834 22,436 20,170
Income Before Income Taxes 94,498 69,962 60,967
Income Taxes (146) 5 (1,612)
Net Income 94,352 69,967 59,355
Preferred Stock Dividends (16) (16) (15)
Net Income Attributable to Common Stockholders $ 94,336 $ 69,951 $ 59,340
Basic Earnings per Common Share [1] $ 1.74 $ 1.69 $ 1.81
Diluted Earnings per Common Share [1] $ 1.74 $ 1.69 $ 1.81
Weighted Average Number of Common Shares Outstanding      
Basic: [1] 54,194,596 41,406,026 32,867,969
Diluted: [1] 54,194,596 41,406,026 32,867,969
OTHER COMPREHENSIVE INCOME      
Net Income $ 94,352 $ 69,967 $ 59,355
Unrealized (Loss) Gain on Commercial Mortgage-Backed Securities (1,284) 1,250  
Comprehensive Net Income $ 93,068 $ 71,217 $ 59,355
[1] Share and per share data reflect the impact of the common stock and Class A common stock dividend which was paid upon completion of the Company’s initial public offering on July 25, 2017 to holders of record as of July 3, 2017. See Note 12 to the Consolidated Financial Statements for details.
v3.8.0.1
Consolidated Statement of Changes in Equity - USD ($)
$ in Thousands
Total
Class A Common Stock
Preferred Stock
Common Stock
Additional Paid-in-Capital
Accumulated Deficit
Accumulated Other Comprehensive (Loss) Income
Balance at Dec. 31, 2014 $ 588,394     $ 24 $ 596,618 $ (8,248)  
Balance, Shares at Dec. 31, 2014       23,865,684      
Issuance of Preferred Stock 125       125    
Issuance of Preferred Stock, shares     125        
Issuance of Class A Common Stock 19,383 $ 1     19,382    
Issuance of Class A Common Stock, Shares   783,158          
Issuance of Common Stock 168,931     $ 7 168,924    
Issuance of Common Stock, Shares       6,666,788      
Redemption of Common Stock (55,574)     $ (2) (55,572)    
Redemption of Common Stock, shares       2,222,689      
Net Income 59,355         59,355  
Dividends on Preferred Stock (15)         (15)  
Dividends on Common Stock (Dividends Declared per Share (63,003)         (63,003)  
Dividends on Class A Common Stock (Dividends Declared per Share (1,246)         (1,246)  
Balance at Dec. 31, 2015 716,350 $ 1   $ 29 729,477 (13,157)  
Balance, Shares at Dec. 31, 2015   783,158 125 28,309,783      
Issuance of Class A Common Stock 4,547       4,547    
Issuance of Class A Common Stock, Shares   184,342          
Issuance of Common Stock 245,453     $ 10 245,443    
Issuance of Common Stock, Shares       9,950,270      
Net Income 69,967         69,967  
Other Comprehensive Income (Loss) 1,250           $ 1,250
Dividends on Preferred Stock (16)         (16)  
Dividends on Common Stock (Dividends Declared per Share (65,200)         (65,200)  
Dividends on Class A Common Stock (Dividends Declared per Share (1,662)         (1,662)  
Balance at Dec. 31, 2016 970,689 [1],[2] $ 1   $ 39 979,467 (10,068) 1,250
Balance, Shares at Dec. 31, 2016   967,500 125 38,260,053      
Issuance of Class A Common Stock 365       365    
Issuance of Class A Common Stock, Shares   14,711          
Issuance of Common Stock 257,634     $ 12 257,622    
Issuance of Common Stock, Shares       12,642,166      
Common Stock and Class A Common Stock Dividend       $ 9 (9)    
Common Stock and Class A Common Stock Dividend, Shares   230,815   9,224,268      
Conversion of Class A Shares to Common Shares       34,408,000      
Transfer of Class A converted to Common Shares   (34,408)          
Retired Common Stock (14,090)       (14) (14,076)  
Retired Common Stock, Shares       (720,783)      
Initial Public Offering Transaction Costs (21,352)       (21,352)    
Amortization of Share Based Compensation 33       33    
Net Income 94,352         94,352  
Other Comprehensive Income (Loss) (1,284)           (1,284)
Dividends on Preferred Stock (16)         (16)  
Dividends on Common Stock (Dividends Declared per Share (83,187)         (83,187)  
Dividends on Class A Common Stock (Dividends Declared per Share (1,813)         (1,813)  
Balance at Dec. 31, 2017 $ 1,201,331 [1],[2] $ 1   $ 60 $ 1,216,112 $ (14,808) $ (34)
Balance, Shares at Dec. 31, 2017   1,178,618 125 59,440,112      
[1] At December 31, 2017, there were no VIE assets or liabilities recorded in the Company’s Total Assets and Total Liabilities. The Company’s consolidated Total Assets and Total Liabilities at December 31, 2016 include VIE assets and liabilities of $743.5 million and $542.8 million, respectively. These assets were available only to satisfy obligations of the VIE, and creditors of the VIE had recourse only to those assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details
[2] Shares issued and shares outstanding reflect the impact of the common stock and Class A common stock dividend which was paid upon completion of the Company’s initial public offering on July 25, 2017 to holders of record as of July 3, 2017. See Note 12 to the Consolidated Financial Statements for details.
v3.8.0.1
Consolidated Statement of Changes in Equity (Parenthetical) - $ / shares
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Common stock dividends declared per share $ 1.56 $ 1.62 $ 1.91
Class A Common Stock      
Common stock dividends declared per share $ 1.56 $ 1.62 $ 1.91
v3.8.0.1
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Cash Flows from Operating Activities:      
Net Income $ 94,352 $ 69,967 $ 59,355
Adjustment to Reconcile Net Income to Net Cash Provided by Operating Activities:      
Amortization and Accretion of Premiums, Discounts and Loan Origination Fees, Net (19,477) (8,439) 14,042
Amortization of Deferred Financing Costs 11,788 9,425 6,500
Capitalized Accrued Interest 5,517 13,434 (22,373)
Gain on Sales of Loans Held for Investment and Commercial Mortgage-Backed Securities, net (185)    
Stock Compensation Expense 33    
Cash Flows Due to Changes in Operating Assets and Liabilities:      
Accounts Receivable 503 4,213 9,432
Accrued Interest Receivable (3,056) (1,813) 27,155
Accrued Expenses (1,843) (182) (2,128)
Accrued Interest Payable 2,478 984 500
Payable to Affiliates 1,272 (2,243) 6,126
Deferred Fee Income (165) 482  
Other Assets (44) (94)  
Net Cash Provided by Operating Activities 91,173 85,734 98,609
Cash Flows from Investing Activities:      
Origination of Loans Held for Investment (1,596,531) (535,185) (535,357)
Purchased Accrued Interest     10,815
Purchase of Loans Held for Investment   (412,921)  
Advances on Loans Held for Investment (313,160) (318,998) (303,584)
Principal Advances Held by Servicer/Trustee 496   (3,458)
Principal Repayments of Loans Held for Investment 1,164,052 781,049 718,111
Proceeds from Sales of Loans Held for Investment 65,054    
Purchase of Commercial Mortgage-Backed Securities (96,294) (59,509) (1,300)
Principal Repayments of Mortgage-Backed Securities 73,912 1,173  
Purchases of Fixed Assets (111) (500)  
Net Cash (Used in) Investing Activities (702,582) (544,891) (114,773)
Cash Flows from Financing Activities:      
Payments on Collateralized Loan Obligation (559,574) (539,542) (508,746)
Proceeds from Collateralized Loan Obligation 16,254 80,083 155,946
Payments on Secured Financing Agreements (797,018) (369,870)  
Proceeds from Secured Financing Agreements 1,789,394 1,117,069 376,857
Payment of Deferred Financing Costs (8,699) (7,426) (6,808)
Payment to Retire Common Stock (13,851)   (55,574)
Net Cash Provided by Financing Activities 583,171 457,181 110,451
Net Change in Cash, Cash Equivalents, and Restricted Cash (28,238) (1,976) 94,287
Cash, Cash Equivalents and Restricted Cash at Beginning of Year 103,975 105,951 11,664
Cash, Cash Equivalents and Restricted Cash at End of Year 75,737 103,975 105,951
Supplemental Disclosure of Cash Flow Information:      
Interest Paid 64,003 51,269 38,966
Taxes Paid (Refund) 142 (5) 3,199
Supplemental Disclosure of Non-Cash Investing and Financing Activities:      
Principal Repayments of Loans Held for Investment by Servicer/Trustee, Net 220 25,887 58,556
Dividends Declared, not paid 23,068 [1] 18,346 [1] 24,601
Accrued Initial Public Offering Transaction Costs 312    
Accrued Deferred Financing Costs 1,054 2,953  
Proceeds from Secured Financing Agreements Held by Trustee   8,856  
Accrued Other Assets Costs   110  
Accrued Common Stock Retirement Costs 239    
Initial Public Offering      
Cash Flows from Financing Activities:      
Payment of Initial Public Offering Transaction Costs (7,060)    
Commercial Mortgage-Backed Securities      
Supplemental Disclosure of Non-Cash Investing and Financing Activities:      
Unrealized Gain on Commercial Mortgage-Backed Securities, Available-for-Sale 1,284 1,250  
Common Stock, Undefined Class      
Cash Flows from Financing Activities:      
Proceeds from Issuance of Common Stock 243,654 245,453 168,932
Dividends paid (78,475) (71,238) (38,966)
Class A Common Stock      
Cash Flows from Financing Activities:      
Proceeds from Issuance of Common Stock 365 4,547 19,382
Dividends paid (1,803) (1,875) (682)
Preferred Stock      
Cash Flows from Financing Activities:      
Proceeds from Issuance of Common Stock     125
Dividends paid $ (16) $ (20) $ (15)
[1] At December 31, 2017, there were no VIE assets or liabilities recorded in the Company’s Total Assets and Total Liabilities. The Company’s consolidated Total Assets and Total Liabilities at December 31, 2016 include VIE assets and liabilities of $743.5 million and $542.8 million, respectively. These assets were available only to satisfy obligations of the VIE, and creditors of the VIE had recourse only to those assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details
v3.8.0.1
Business and Organization
 12 Months Ended
Dec. 31, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Business and Organization

(1) Business and Organization

TPG RE Finance Trust, Inc., together with its consolidated subsidiaries (“we”, “us”, “our”, or the “Company”), is a Maryland corporation that was incorporated on October 24, 2014 and commenced operations on December 18, 2014 (“Inception”). We are organized as a holding company and conduct our operations primarily through our various subsidiaries. We conduct our operations as a real estate investment trust (“REIT”) for U.S. federal income tax purposes. We generally will not be subject to U.S. federal income taxes on our REIT taxable income to the extent that we annually distribute all of our REIT taxable income to stockholders and maintain our qualification as a REIT. We also operate our business in a manner that permits us to maintain an exclusion from registration under the Investment Company Act of 1940, as amended.

The Company’s principal business activity is to directly originate and acquire a diversified portfolio of commercial real estate related assets, primarily consisting of first mortgage loans and senior participation interests in first mortgage loans secured by institutional-quality properties in primary and select secondary markets in the United States, and commercial mortgage-backed securities (“CMBS”). As of December 31, 2017 and December 31, 2016, the Company conducted substantially all of its operations through a Delaware limited liability company, TPG RE Finance Trust Holdco, LLC (“Holdco”), and the Company’s other wholly-owned subsidiaries.

v3.8.0.1
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2017
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

(2) Summary of Significant Accounting Policies

Basis of Presentation

The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements include the Company’s accounts, a consolidated variable interest entity for which the Company was the primary beneficiary through August 23, 2017, and its wholly-owned subsidiaries (see Note 5 for details). All intercompany transactions and balances have been eliminated.

Certain reclassifications have been made to prior periods to conform to the current period presentation.

Use of Estimates

The preparation of the consolidated financial statements in conformity with GAAP requires estimates of assets, liabilities, revenues, expenses and disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Actual results could differ from management’s estimates, and such differences could be material. Significant estimates made in the consolidated financial statements include, but are not limited to: impairment; adequacy of provisions for loan losses; and valuation of financial instruments.  

Principles of Consolidation

Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810—Consolidation (“ASC 810”) provides guidance on the identification of a VIE (a variable interest entity for which control is achieved through means other than voting rights) and the determination of which business enterprise, if any, should consolidate the VIE. An entity is considered a VIE if any of the following applies: (1) the equity investors (if any) lack one or more of the essential characteristics of a controlling financial interest; (2) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support; or (3) the equity investors have voting rights that are not proportionate to their economic interests and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. The Company consolidates VIEs in which it is considered to be the primary beneficiary. The primary beneficiary is defined as the entity having both of the following characteristics: (1) the power to direct the activities that, when taken together, most significantly impact the VIE’s performance; and (2) the obligation to absorb losses and right to receive the returns from the VIE that would be significant to the VIE.

At each reporting date, the Company reconsiders its primary beneficiary conclusion to determine if its obligation to absorb losses of, or its rights to receive benefits from, the VIE could potentially be more than insignificant, and will consolidate or not consolidate accordingly.

Revenue Recognition

Interest income on loans is accrued using the interest method based on the contractual terms of the loan, adjusted for credit impairment, if any. The objective of the interest method is to arrive at periodic interest income including recognition of fees and costs at a constant effective yield. Premiums, discounts, origination fees and exit fees are amortized or accreted into interest income over the lives of the loans using the interest method, or on a straight line basis when it approximates the interest method. Extension fees are amortized into income on a straight line basis, when it approximates the interest method, or the extension period to which they relate if they can be waived by the Company, or a co-lender, in connection with a loan refinancing. Prepayment penalties from borrowers are recognized as interest income when received. Certain of the Company’s investments may provide for additional interest based on the borrower’s operating cash flow or appreciation of the underlying collateral. Such amounts are considered contingent interest and are reflected as interest income only upon certainty of collection.

The Company considers a loan to be non-performing and places loans on non-accrual status at such time as: (1) management determines the borrower is incapable of, or has ceased efforts toward, curing the cause of a default; (2) the loan becomes 90 days delinquent; or (3) the loan has a maturity default. While on non-accrual status, based on the Company’s judgment as to collectability of principal, loans are either accounted for on a cash basis, where interest income is recognized only upon receipt of cash for principal and interest payments, or on a cost-recovery basis, where all cash receipts reduce a loan’s carrying value, and interest income is only recorded when such carrying value has been fully recovered. For the years ended December 31, 2017 and December 31, 2016, no loans were placed on non-accrual status, and we have sustained no losses or impairments to our loan portfolio.

Loans Held for Investment

Loans that the Company has the intent and ability to hold for the foreseeable future, or until maturity or payoff, are reported at their outstanding principal balances net of any premiums, discounts, loan origination fees and an allowance for loan losses. Loan origination fees and direct loan origination costs are deferred and recognized in interest income over the estimated life of the loans using the interest method, or on a straight line basis when it approximates the interest method, adjusted for actual prepayments.

The Company evaluates each loan classified as a loan held for investment for impairment on a quarterly basis. Impairment occurs when it is deemed probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan. If the loan is considered to be impaired, an allowance is recorded to reduce the carrying value of the loan to the present value of the expected future cash flows discounted at the loan’s contractual effective rate, or the fair value of the collateral, less estimated costs to sell, if recovery of the Company’s investment is expected solely from the sale of the collateral. As part of the quarterly impairment review, we evaluate the risk of each loan and assign a risk rating based on a variety of factors, grouped as follows to include (without limitation): (i) loan and credit structure, including the as-is loan-to-value (“LTV”) and structural features; (ii) quality and stability of real estate value and operating cash flow, including debt yield, property type, dynamics of the geographic, property-type and local market, physical condition, stability of cash flow, leasing velocity and quality and diversity of tenancy; (iii) performance against underwritten business plan; and (iv) quality, experience and financial condition of sponsor, borrower and guarantor(s). Based on a 5-point scale, our loans are rated “1” through “5,” from least risk to greatest risk, respectively, which ratings are defined as follows:

 

1-

Outperform—Exceeds performance metrics (for example, technical milestones, occupancy, rents, net operating income) included in original or current credit underwriting and business plan;

 

2-

Meets or Exceeds Expectations—Collateral performance meets or exceeds substantially all performance metrics included in original or current underwriting / business plan;

 

3-

Satisfactory—Collateral performance meets or is on track to meet underwriting; business plan is met or can reasonably be achieved;

 

4-

Underperformance—Collateral performance falls short of original underwriting, and material differences exist from business plan; technical milestones have been missed; defaults may exist, or may soon occur absent material improvement; and

 

5-

Risk of Impairment/Default—Collateral performance is significantly worse than underwriting; major variance from business plan; loan covenants or technical milestones have been breached; timely exit from loan via sale or refinancing is questionable.

Since inception, the Company has not recorded asset-specific loan loss reserves, nor has it recognized any impairments on its loan portfolio. Our determination of asset-specific loan loss reserves, should any such reserves be necessary, relies on material estimates regarding the fair value of loan collateral. Such losses could be caused by various factors, including, but not limited to, unanticipated adverse changes in the economy or events adversely affecting specific assets, borrowers, industries in which our borrowers operate or markets in which our borrowers or their properties are located. Significant judgment is required when evaluating loans for impairment.

The Company’s loans are typically collateralized by real estate, or a partnership or similar equity interest in an entity that owns real estate. As a result, the Company regularly evaluates on a loan-by-loan basis the extent and impact of any credit deterioration associated with the performance and/or value of the underlying collateral property as well as the financial and operating capability of the borrower/sponsor. The Company also evaluates the financial strength of loan guarantors, if any, and the borrower’s competency in managing and operating the property or properties. In addition, the Company considers the overall economic environment, real estate sector, and geographic sub-market in which the borrower operates. Such impairment analyses are completed and reviewed by asset management personnel and evaluated by senior management, who utilize various data sources, including (i) periodic financial data such as property occupancy, tenant profile, rental rates, operating expenses, the borrower’s exit plan, and capitalization and discount rates, (ii) site inspections, (iii) sales and financing comparables, (iv) current credit spreads for refinancing and (v) other market data.

Commercial Mortgage-Backed Securities

The Company acquires CMBS investments for cash management and investment purposes. The Company designates CMBS investments as available-for-sale on the date of acquisition of the investment. CMBS that are not classified as held-to-maturity and which the Company does not hold for the purpose of selling in the near-term, but may dispose of prior to maturity, are also designated as available-for-sale and are carried at fair value. The Company’s recognition of interest income from its CMBS, including its amortization of premium and discount, follows the Company’s revenue recognition policy. The Company uses a specific identification method when determining the cost of security sold and the amount reclassified out of accumulated other comprehensive income into earnings. Unrealized losses on securities that, in the judgment of management, are other than temporary are charged against earnings as a loss in the consolidated statements of income. Significant valuation inputs are Level II in the fair value hierarchy as described under “Fair Value Measurements”.

Portfolio Financing Arrangements

The Company finances certain loan and CMBS investments using secured revolving repurchase agreements, asset-specific financing arrangements (notes payable on the consolidated balance sheets), a senior secured credit facility, and, prior to August 23, 2017, its private collateralized loan obligation (“CLO”). The related borrowings are recorded as separate liabilities on the Company’s consolidated balance sheets. Interest income earned on the investments and interest expense incurred on the related borrowings are reported separately on the Company’s consolidated statements of income and comprehensive income.

In certain instances, the Company creates structural leverage through the co-origination or non-recourse syndication of a senior loan interest to a third party. For all such syndications the Company has completed through December 31, 2017, the Company has transferred 100% of the senior mortgage loan that the Company originated on a non-recourse basis to a third-party lender and has retained as a loan investment a separate mezzanine loan investment secured by a pledge of the equity in the mortgage borrower. With respect to the senior mortgage loan transferred, the Company retains: no control over the mortgage loan; no economic interest in the mortgage loan; and no recourse to the purchaser or the borrower. Consequently, based on these circumstances and because the Company does not have any continuing involvement with the transferred senior mortgage loan, these syndications are accounted for as sales under GAAP and are removed from the Company’s consolidated financial statements at the time of transfer. The Company’s consolidated balance sheets only include the separate mezzanine loan remaining after the transfer and not the non-consolidated senior loan interest sold or co-originated that the Company transferred.

Fair Value Measurements

The Company follows ASC 820-10, Fair Value Measurements and Disclosures (“ASC 820-10”), for its holdings of financial instruments. ASC 820-10 defines fair value, establishes a framework for measuring fair value in accordance with GAAP and expands disclosure of fair value measurements. ASC 820-10 determines fair value to be the price that would be received for a financial instrument in a current sale, which assumes an orderly transaction between market participants on the measurement date. The Company determines the estimated fair value of financial assets and liabilities using the three-tier fair value hierarchy established by GAAP, which prioritizes the inputs used in measuring fair value. GAAP establishes market-based or observable inputs as the preferred source of values followed by valuation models using management assumptions in the absence of market inputs. The financial instruments recorded at fair value on a recurring basis in the Company’s consolidated financial statements are cash and cash equivalents, restricted cash and available-for-sale CMBS investments. The three levels of inputs that may be used to measure fair value are as follows:

Level I—Valuations based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to access.

Level II—Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

Level III—Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

For certain financial instruments, the various inputs that management uses to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value hierarchy is appropriate for such financial instrument is based on the lowest level of input that is significant to the fair value measurement. The assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument. The Company may use valuation techniques consistent with the market and income approaches to measure the fair value of its assets and liabilities. The market approach uses third-party valuations and information obtained from market transactions involving identical or similar assets or liabilities. The income approach uses projections of the future economic benefits of an instrument to determine its fair value, such as in the discounted cash flow methodology. The inputs or methodology used for valuing financial instruments are not necessarily an indication of the risk associated with investing in these financial instruments. Transfers between levels of the fair value hierarchy are assumed to occur at the end of the reporting period.

Income Taxes

The Company qualifies and has elected to be taxed as a REIT for U.S. federal income tax purposes under the Internal Revenue Code of 1986, as amended, commencing with its initial taxable year ended December 31, 2014. To the extent that it annually distributes at least 90% of its REIT taxable income to stockholders and complies with various other requirements as a REIT, the Company generally will not be subject to U.S. federal income taxes on its distributed REIT taxable income. If the Company fails to continue to qualify as a REIT in any taxable year and does not qualify for certain statutory relief provisions, the Company will be subject to U.S. federal and state income taxes at regular corporate rates beginning with the year in which it fails to qualify and may be precluded from being able to elect to be treated as a REIT for the Company’s four subsequent taxable years. Even though the Company currently qualifies for taxation as a REIT, the Company may be subject to certain U.S. federal, state, local and foreign taxes on the Company’s income and property and to U.S. federal income and excise taxes on the Company’s undistributed REIT taxable income.

Deferred tax assets and liabilities are recognized for future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the periods in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period in which the enactment date occurs. Under ASC Topic 740, Income Taxes (“ASC 740”), a valuation allowance is established when management believes it is more likely than not that a deferred tax asset will not be realized. The Company intends to continue to operate in a manner consistent with, and to continue to meet the requirements to be treated as, a REIT for tax purposes and to distribute all of its REIT taxable income. Accordingly, the Company does not expect to pay corporate level taxes.

Earnings per Common Share

The Company utilizes the two-class method when assessing participating securities to calculate earnings per common share. Basic and diluted earnings per common share is computed by dividing net income attributable to common stockholders (i.e., holders of common stock and Class A common stock), by the weighted-average number of common shares (both common stock and Class A common stock) outstanding during the period. The preferences, rights, voting powers, restrictions, limitations as to dividends and other distributions, qualifications and terms and conditions of redemption of the Class A common stock are identical to the common stock, except (1) the Class A common stock is not a “margin security” as defined in Regulation U of the Board of Governors of the U.S. Federal Reserve System (and rulings and interpretations thereunder) and may not be listed on a national securities exchange or a national market system and (2) each share of Class A common stock is convertible at any time or from time to time, at the option of the holder, for one fully paid and non-assessable share of common stock. The Class A common stock votes together with the common stock as a single class. Shares of Class A common stock have been issued to, and are owned by, certain individuals or entities affiliated with the Company’s external manager, TPG RE Finance Trust Management, L.P., a Delaware limited partnership (the “Manager”), and the sale or conversion to common stock by investors of such shares of Class A common stock is subject to certain restrictions.

Diluted earnings per common share is calculated by including the effect of dilutive securities. The Company accounts for unvested share-based payment awards that contain non-forfeitable dividend rights or dividend equivalents (whether paid or unpaid) as participating securities, which are included in the computation of earnings per share pursuant to the two-class method.

Share-Based Compensation

Share-based compensation consists of awards issued by the Company to certain employees of affiliates of our Manager that vest over the life of the awards as well as certain members of our Board of Directors. Compensation expense is recognized in net income on a variable basis over the applicable award vesting period based on the value of our common stock. Forfeitures of share-based awards are recognized as they occur.

Deferred Financing Costs

Deferred financing costs are reflected net of the CLO and secured financing agreements on the Company’s consolidated balance sheets. These costs are amortized in interest expense using the interest method or on a straight line basis when it approximates the interest method over the life of the related obligations.

Cash and Cash Equivalents

Cash and cash equivalents include cash held in banks or invested in money market funds with original maturities of less than 90 days. The Company deposits its cash and cash equivalents with high credit quality institutions to minimize credit risk exposure. The Company maintains cash accounts at several financial institutions, which are insured up to a maximum of $250,000 per account as of December 31, 2017 and December 31, 2016. The balances in these accounts may exceed the insured limits.

Restricted Cash

Restricted cash primarily represents deposit proceeds from potential borrowers which may be returned to borrowers, after deducting transaction costs paid by the Company for the benefit of the borrowers, upon the closing of a loan transaction.

The following table provides a reconciliation of cash, cash equivalents, and restricted cash on the consolidated balance sheets to the total amount shown on the consolidated statements of cash flows (dollars in thousands):

 

 

 

December 31, 2017

 

 

December 31, 2016

 

Cash and Cash Equivalents

 

$

75,037

 

 

$

103,126

 

Restricted Cash

 

 

700

 

 

 

849

 

Total cash, cash equivalents, and restricted cash shown on the

   consolidated statements of cash flows

 

$

75,737

 

 

$

103,975

 

 

Recently Issued & Adopted Accounting Pronouncements

In May 2017, the FASB issued Accounting Standards Update (“ASU”) 2017-09, Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting (“ASU 2017-09”). ASU 2017-09 provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The current disclosure requirements in Topic 718 apply regardless of whether an entity is required to apply modification accounting under the amendments of ASU 2017-09. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. The Company early adopted this update during the quarter ended December 31, 2017, and its adoption did not have a material impact on our consolidated financial statements.

In March 2017, the FASB issued ASU 2017-08, Receivables (Topic 310): Receivables – Nonrefundable Fees and Other Costs (“ASU 2017-08”). ASU 2017-08 shortens the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; discounts continue to be amortized through maturity. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period. The Company early adopted this update during the quarter ended March 31, 2017. There was no effect on our consolidated financial statements as a result of the adoption of ASU 2017-08.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force) (“ASU 2016-18”). The amendments in ASU 2016-18 require an entity to reconcile and explain the period-over-period change in total cash, cash equivalents and restricted cash within its statements of cash flows. ASU 2016-18 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted. A reporting entity must apply the amendments in ASU 2016-18 using a full retrospective approach. The Company adopted ASU 2016-18 in the fourth quarter of 2017 and applied the guidance retrospectively to our prior period consolidated statement of cash flows.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The new guidance addresses the classification of various transactions including debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments, contingent consideration payments made after a business combination, distributions received from equity method investees, beneficial interests in securitization transactions, and others. The Company adopted ASU 2016-15 during the quarter ended September 30, 2016, and its adoption did not have a material impact on our consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). ASU 2016-09 is intended to simplify accounting for share-based payment transactions. The areas for simplification in this update involve several aspects of accounting for share-based payment transactions, including income tax consequences, award classification as equity or liabilities, policy election to account for employee forfeitures as they occur, and classification on the statements of cash flows. ASU 2016-09 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The transition method required by ASU 2016-09 varies based on the specific amendment being adopted. The Company adopted this update on December 13, 2017 upon the approval of its initial stock awards under its 2017 Equity Incentive Plan. The adoption of ASU 2016-09 did not have a material impact on our consolidated financial statements. The Company has formally disclosed its policy regarding the treatment of forfeitures of stock compensation awards (see Share-Based Compensation above).

In April 2015, the FASB issued ASU 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”), which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The Company did not elect to early adopt ASU 2015-03. This new guidance is framed around how to account for costs related to term debt, and it does not address how to present fees paid to lenders or other costs to secure revolving lines of credit, which are, at the outset, not associated with an outstanding borrowing. In August 2015, FASB issued ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements (“ASU 2015-15”), which amends ASC 835-30, Interest—Imputation of Interest. This update clarifies the presentation and subsequent measurement of debt issuance costs associated with lines of credit. These costs may be deferred and presented as an asset and subsequently amortized ratably over the term of the revolving debt arrangement. The Company adopted this update during the quarter ended March 31, 2016. The effect of the adoption of ASU 2015-03 and ASU 2015-15 was to reclassify debt issuance costs of approximately $13.6 million as of December 31, 2016 from “Deferred Financing Costs” to a contra account as a deduction from the related debt liabilities. There was no effect on the Company’s consolidated statements of income and comprehensive income as a result of the adoption of ASU 2015-03 and ASU 2015-15.

In February 2015, FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (“ASU 2015-02”). ASU 2015-02 requires an entity to evaluate whether it should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. Specifically, the amendments: (1) modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities; (2) eliminate the presumption that a general partner should consolidate a limited partnership; and (3) affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships. This guidance is effective for fiscal years beginning after December 15, 2015. The Company adopted this update during the quarter ended March 31, 2016. There was no effect on our consolidated financial statements as a result of the adoption of ASU 2015-02.

In August 2014, FASB issued ASU 2014-13, Consolidation (Topic 810): Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity (“ASU 2014-13”). For entities that consolidate a collateralized financing entity within the scope of this update, an option to elect to measure the financial assets and the financial liabilities of that collateralized financing entity using either the measurement alternative included in ASU 2014-13 or ASC 820 on fair value measurement is provided. The guidance is effective for fiscal years beginning after December 15, 2015. The Company adopted this update during the quarter ended March 31, 2016, and the adoption did not have a material effect on the Company’s consolidated financial statements, as the fair value option was not elected.

In August 2014, FASB issued ASU 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). The guidance in ASU 2014-15 sets forth management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern as well as required disclosures. ASU 2014-15 indicates that, when preparing interim and annual financial statements, management should evaluate whether conditions or events, in the aggregate, raise substantial doubt about the entity’s ability to continue as a going concern for one year from the date the financial statements are issued or are available to be issued. This evaluation should include consideration of conditions and events that are either known or are reasonably knowable at the date the financial statements are issued or are available to be issued, and, if applicable, whether it is probable that management’s plans to address the substantial doubt will be implemented and, if so, whether it is probable that the plans will alleviate the substantial doubt. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods and annual periods thereafter. The adoption of this guidance did not have an impact on our disclosures.

Recently Issued Accounting Pronouncements

In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. ASU 2016-13 will replace the “incurred loss” model under existing guidance with an “expected loss” model for instruments measured at amortized cost, and require entities to record allowances for available-for-sale debt securities rather than reduce the carrying amount, as they do today under the other-than-temporary impairment model. Upon adoption, and resulting from this change, the Company expects that it will have to record a loan loss reserve at origination or acquisition of an individual loan or a loan portfolio. ASU 2016-13 also simplifies the accounting model for purchased credit-impaired debt securities and loans. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019 and is to be adopted through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company is currently evaluating the impact ASU 2016-13 will have on its consolidated financial statements.

In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 is a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. In August 2015, the FASB issued an update (“ASU 2015-14”) to Topic 606, Deferral of the Effective Date, which defers the adoption of ASU 2014-09 to interim and annual reporting periods in fiscal years that begin after December 15, 2017. In March 2016, the FASB issued an update (“ASU 2016-08”) to Topic 606, Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarifies the implementation guidance on principal versus agent considerations in the new revenue recognition standard pursuant to ASU 2014-09. In April 2016, the FASB issued an update (“ASU 2016-10”) to Topic 606, Identifying Performance Obligations and Licensing, which clarifies guidance related to identifying performance obligations and licensing implementation guidance contained in ASU 2014-09. In May 2016, the FASB issued an update (“ASU 2016-12”) to Topic 606, Narrow-Scope Improvements and Practical Expedients, which amends certain aspects of the new revenue recognition standard pursuant to ASU 2014-09. In adopting ASU 2014-09, companies may use either a full retrospective or a modified retrospective approach. Additionally, this guidance requires improved disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Early adoption is not permitted, except that we may adopt under the original provisions of ASU 2014-09 prior to the issuance of ASU 2015-14. The Company adopted the revenue recognition standard updates on January 1, 2018. The Company anticipates that these updates may impact the fiscal period in which its miscellaneous fee revenue is recognized, but not preclude its recognition. For the fiscal years ended December 31, 2017, 2016, and 2015, the Company’s miscellaneous fee revenue subject to this change did not exceed $0.5 million during any period. Miscellaneous fee revenue is recorded to Other Income, net in the Company’s consolidated statements of income. As a result, the Company’s adoption of the revenue recognition standard updates on January 1, 2018 is not expected to have a material impact on the Company’s consolidated financial statements.
v3.8.0.1
Loans Held for Investment
 12 Months Ended
Dec. 31, 2017
Receivables [Abstract]  
Loans Held for Investment

(3) Loans Held for Investment

The Company currently originates and acquires first mortgage and mezzanine loans secured by commercial properties. These loans can potentially subject the Company to concentrations of credit risk as measured by various metrics, including the property type collateralizing the loan, loan size, loans to a single sponsor and loans in a single geographic area, among others. The Company’s loans held for investment are accounted for at amortized cost.

During the year ended December 31, 2017, the Company’s subsidiaries originated or acquired 22 loans with a total commitment of approximately $1.95 billion, an initial unpaid principal balance of $1.61 billion, and unfunded commitments upon closing of $331.2 million. To fund these originations, the Company employed financing methods that included secured revolving repurchase agreements and other secured financings, notes payable, and the syndication of non-consolidated senior interests which are non-recourse to the Company and are recognized as sales. Total commitments related to the syndication of non-consolidated senior interests for the year ended December 31, 2017 were $91.50 million.

The following tables present an overview of the loan investment portfolio as of December 31, 2017 and December 31, 2016 (dollars in thousands):

 

 

 

December 31, 2017

 

Loans Receivable

 

Outstanding

Principal

 

 

Unamortized Premium

(Discount), Loan

Origination Fees, net

 

 

Carrying

Amount

 

Senior loans

 

$

3,122,670

 

 

$

(22,143

)

 

$

3,100,527

 

Subordinated and mezzanine loans

 

 

75,446

 

 

 

(301

)

 

 

75,145

 

Subtotal before allowance

 

 

3,198,116

 

 

 

(22,444

)

 

 

3,175,672

 

Allowance for loan losses

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

3,198,116

 

 

$

(22,444

)

 

$

3,175,672

 

 

 

 

December 31, 2016

 

Loans Receivable

 

Outstanding

Principal

 

 

Unamortized Premium

(Discount), Loan

Origination Fees, net

 

 

Carrying

Amount

 

Senior loans

 

$

2,429,632

 

 

$

(20,931

)

 

$

2,408,701

 

Subordinated and mezzanine loans

 

 

41,446

 

 

 

(157

)

 

 

41,289

 

Subtotal before allowance

 

 

2,471,078

 

 

 

(21,088

)

 

 

2,449,990

 

Allowance for loan losses

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

2,471,078

 

 

$

(21,088

)

 

$

2,449,990

 

 

For the year ended December 31, 2017, loan portfolio activity was as follows (dollars in thousands):

 

Balance at December 31, 2016

 

$

2,449,990

 

Loans originated

 

 

1,596,531

 

Additional fundings

 

 

315,409

 

Amortization of discount and origination fees

 

 

19,381

 

Deductions during the period:

 

 

 

 

Collection of principal

 

 

(1,202,776

)

Amortization of premium

 

 

(2,863

)

Balance at December 31, 2017

 

$

3,175,672

 

 

At December 31, 2017 and December 31, 2016, there was $0.0 million and $2.9 million, respectively, of unamortized premium and $2.0 million and $12.5 million, respectively, of unamortized discount included in loans held for investment at amortized cost on the consolidated balance sheets.

The table below summarizes the carrying values and results of the Company’s internal risk rating review performed as of December 31, 2017 and December 31, 2016 (dollars in thousands):

 

 

 

Carrying Value

 

Rating

 

December 31, 2017

 

 

December 31, 2016

 

1

 

$

—

 

 

$

261,261

 

2

 

 

1,318,816

 

 

 

745,340

 

3

 

 

1,680,913

 

 

 

1,205,994

 

4

 

 

175,943

 

 

 

237,395

 

5

 

 

—

 

 

 

—

 

Totals

 

$

3,175,672

 

 

$

2,449,990

 

Weighted Average Risk Rating(1)

 

 

2.6

 

 

 

2.6

 

 

 

(1)

Weighted Average Risk Rating calculated based on unpaid principal balance at year end.

During the year ended December 31, 2017, two loans were moved from the Company’s category four risk rating, one into its category two risk rating and the other into its category three risk rating, as a result of improved operating performance of the underlying loan collateral. Furthermore, the Company moved six loans that were classified in its category three risk rating to category four, resulting from a decline in collateral performance. Additionally, during the year ended December 31, 2017, two loans classified in its category four risk rating, one loan classified in its category three risk rating, three loans in its category two risk rating, and three loans classified in its category one risk rating as of December 31, 2016 were repaid during the ordinary course of business. The weighted average risk rating at both December 31, 2017 and December 31, 2016 was 2.6.

At December 31, 2017 and December 31, 2016, there were no loans on non-accrual status or that were impaired; thus, the Company did not record a reserve for loan loss.

See Note 17 for details about the Company’s mortgage loan originations subsequent to December 31, 2017.

v3.8.0.1
Commercial Mortgage-Backed Securities
 12 Months Ended
Dec. 31, 2017
Investments Debt And Equity Securities [Abstract]  
Commercial Mortgage-Backed Securities

(4) Commercial Mortgage-Backed Securities

At December 31, 2017 and December 31, 2016, the Company had five CMBS designated as available-for-sale. During the year ended December 31, 2017, the Company sold a CMBS investment for net proceeds of $43.8 million, recognizing in Other income, net a gain on sale of $0.3 million. Detailed information regarding the Company’s available-for-sale CMBS is as follows (dollars in thousands):

 

 

 

December 31, 2017

 

 

 

Face Amount

 

 

Unamortized

Premium (Discount)

 

 

Gross

Unrealized (Loss)

 

 

Estimated

Fair Value

 

Investments, at Fair Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial mortgage-backed securities

 

$

85,661

 

 

$

268

 

 

$

(34

)

 

$

85,895

 

 

 

 

December 31, 2016

 

 

 

Face Amount

 

 

Unamortized

Premium (Discount)

 

 

Gross

Unrealized Gain

 

 

Estimated

Fair Value

 

Investments, at Fair Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial mortgage-backed securities

 

$

62,927

 

 

$

(2,673

)

 

$

1,250

 

 

$

61,504

 

 

The CMBS fair values are considered Level II fair value measurements within the fair value hierarchy of ASC 820-10. The CMBS fair values are based upon market, broker, and counterparty or pricing services quotations, which provide valuation estimates, based upon reasonable market order indications. These fair value quotations are subject to significant variability based on market conditions, such as interest rates, credit spreads and market liquidity, and are reviewed by the Company for reasonableness and consistency.

The amortized cost and estimated fair value of the Company’s available-for-sale CMBS by contractual maturity are shown in the following table (dollars in thousands):

 

 

 

December 31, 2017

 

 

 

Amortized

Cost

 

 

Estimated

Fair Value

 

Expected Maturity Date

 

 

 

 

 

 

 

 

After one, within five years

 

$

36,700

 

 

$

36,872

 

After five, within ten years

 

 

49,229

 

 

 

49,023

 

Total investment in commercial mortgage-

   backed securities, at fair value

 

$

85,929

 

 

$

85,895

 

 

 

 

December 31, 2016

 

 

 

Amortized

Cost

 

 

Estimated

Fair Value

 

Expected Maturity Date

 

 

 

 

 

 

 

 

After one, within five years

 

$

58,962

 

 

$

60,242

 

After five, within ten years

 

 

1,292

 

 

 

1,262

 

Total investment in commercial mortgage-

   backed securities, at fair value

 

$

60,254

 

 

$

61,504

 

 

No other-than-temporary impairments were recognized through income for the years ended December 31, 2017 or year ended December 31, 2016.

v3.8.0.1
Variable Interest Entities and Collateralized Loan Obligation
 12 Months Ended
Dec. 31, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Variable Interest Entities and Collateralized Loan Obligation

(5) Variable Interest Entities and Collateralized Loan Obligation

On December 18, 2014, the Company entered into a collateralized loan obligation through TPG RE Finance Trust CLO Issuer, L.P., a wholly-owned subsidiary of the Company (“CLO Issuer”) and on December 29, 2014, the Company acquired from German American Capital Corporation (“GACC”) a portfolio of 75% participation interests in certain loans secured primarily by first mortgages on commercial properties, with a face value of approximately $2.4 billion. To partially fund the investment, on December 18, 2014, the CLO Issuer issued a Class A Note secured by the Company’s 75% participation interests in the portfolio of loans acquired. The Company evaluated in accordance with ASC 810 the key attributes of the CLO Issuer to determine if it was a VIE and, if so, whether the Company was the primary beneficiary of the CLO Issuer’s operating activities. This analysis resulted in the Company concluding that the CLO Issuer was a VIE, that the Company was the primary beneficiary, and that it would consolidate the entity.

The CLO Issuer invested in real estate-related loans which were substantially financed by the issuance of debt securities. The Manager was named collateral manager (“CLO Collateral Manager”) for all of the CLO Issuer’s collateral assets. The CLO Collateral Manager was responsible for the activities that most significantly impacted the performance of the underlying assets, including but not limited to monitoring, managing and disposing of collateral assets and managing the CLO Issuer’s compliance with provisions of the CLO indenture. The Company’s involvement with the CLO Issuer primarily affected its financial performance and operating cash flows through amounts recorded to interest income, interest expense and provision for loan losses.

The Company consolidated the CLO Issuer because ultimately it had the ability to control the activities that most significantly impacted the economic performance of the entity through its contractual rights with the affiliated CLO Collateral Manager. The CLO Collateral Manager had a contractual duty to the CLO Issuer, which in turn benefited the Company as the owner of 100% of the equity in the CLO Issuer. Additionally, the Company had exposure to the CLO Issuer’s losses to the extent of its equity interests and also had rights to waterfall payments in excess of required payments to the CLO Issuer’s Class A Note holder which would both be significant to the CLO Issuer. At each reporting date, the Company reconsidered its primary beneficiary conclusion to determine if its obligation to absorb losses of, or its rights to receive benefits from, the CLO Issuer could potentially be more than insignificant and if it should consolidate the CLO Issuer.

On August 16, 2017, the outstanding principal balance of the Class A Note issued by the CLO Issuer was approximately $118.0 million. On August 16, 2017, the CLO Issuer sold to GACC two first mortgage loan participation interests with an aggregate unpaid principal balance of $12.8 million that collateralized the Class A Note in part and recognized in Other income, net a $0.2 million loss on sale. The sales price of the two first mortgage loans was approximately par value. These loans were sold because they were determined to no longer be consistent with the Company’s current investment strategy.

On August 18, 2017, one of the Company’s wholly-owned subsidiaries purchased from the CLO Issuer seven first mortgage loan participation interests with an aggregate unpaid principal balance of $138.5 million that collateralized the remainder of the Class A Note issued by the CLO Issuer. The first mortgage loan participation interests were sold by the CLO Issuer for approximately par value. On August 23, 2017, proceeds from both transactions were used in combination with approximately $3.0 million of Company cash to retire all amounts outstanding under the Class A Note issued by the CLO Issuer, which totaled $118.0 million. The collateralized loan obligation was subsequently terminated.

The Company’s total assets and total liabilities at December 31, 2016 included the following VIE assets and liabilities (dollars in thousands):

 

 

 

December 31, 2016

 

ASSETS

 

 

 

 

Cash and Cash Equivalents

 

$

2,133

 

Accounts Receivable

 

 

479

 

Accounts Receivable from Servicer/Trustee

 

 

23,009

 

Accrued Interest Receivable

 

 

5,714

 

Loans Held for Investment

 

 

712,158

 

Total Assets

 

$

743,493

 

LIABILITIES

 

 

 

 

Accrued Interest Payable

 

$

885

 

Accrued Expenses

 

 

32

 

Collateralized Loan Obligation

 

 

540,780

 

Payable to Affiliates

 

 

933

 

Deferred Revenue

 

 

198

 

Total Liabilities

 

$

542,828

 

 

Assets held by the CLO Issuer were restricted and could only be used to settle obligations of the entity. The liabilities of the CLO Issuer were non-recourse to the Company and could only be satisfied from the CLO Issuer’s asset pool. From inception of the CLO through its dissolution, the Company did not provide, and was not required to provide, financial support to the CLO Issuer through a liquidity arrangement or otherwise.

The following table outlines borrowings and the corresponding collateral under the Company’s consolidated CLO Issuer as of December 31, 2016 (dollars in thousands):

 

As of December 31, 2016

 

Debt

 

 

Collateral (loans)

 

Face Value

 

 

Carrying Value

 

 

Outstanding Principal

 

 

Carrying Value

 

$

543,320

 

 

$

540,780

 

 

$

712,420

 

 

$

712,158

 

 

The Company incurred approximately $13.2 million of issuance costs which were amortized on an effective yield basis over the shorter of the remaining life of the loans that collateralized the Class A Note, or the Class A Note. As a result of retiring all amounts outstanding under the Class A Note, the Company recognized an additional $0.9 million of issuance costs recorded to Interest Expense. As of December 31, 2017 and December 31, 2016, the Company’s unamortized issuance costs were $0.0 million and $2.5 million, respectively.

Interest on the Class A Note was payable monthly, beginning on December 18, 2014, and for the years ended December 31, 2017, December 31, 2016, and December 31, 2015 interest expense (excluding amortization of deferred financing costs) of $9.3 million, $21.8 million, and $35.5 million, respectively, is included in the Company’s consolidated statements of income as interest expense.
v3.8.0.1
Secured Revolving Repurchase Agreements, Senior Secured Credit Facility, Notes Payable and Subscription Secured Facility
 12 Months Ended
Dec. 31, 2017
Debt Disclosure [Abstract]  
Secured Revolving Repurchase Agreements, Senior Secured Credit Facility, Notes Payable and Subscription Secured Facility

(6) Secured Revolving Repurchase Agreements, Senior Secured Credit Facility, Notes Payable and Subscription Secured Facility

At December 31, 2017 and December 31, 2016, the Company had notes payable and secured revolving repurchase agreements for certain of the Company’s originated loans. In addition, at December 31, 2016, the Company had a subscription secured credit facility outstanding, which facility was terminated in July 2017. On September 29, 2017, the Company entered into a new senior secured credit facility agreement with Bank of America. These financing agreements bear interest at a rate equal to LIBOR plus a credit spread determined primarily by advance rate and property type, or in the case of the subscription secured facility before it was terminated, the creditworthiness of the irrevocable investor commitments that secured the facility. The agreements contain covenants that include certain financial requirements, including maintenance of minimum liquidity, minimum tangible net worth, maximum debt to net worth ratio, current ratio and limitations on capital expenditures, indebtedness, distributions, transactions with affiliates and maintenance of positive net income as defined in the agreements.

The following table presents certain information regarding the Company’s notes payable, secured revolving repurchase agreements, senior secured credit facility, and subscription secured facility as of December 31, 2017 and December 31, 2016, respectively. Except as otherwise noted, all agreements are on a non-recourse basis. Amounts included are shown in thousands:

 

As of December 31, 2017

 

Notes Payable

 

Maturity

Date

 

Index Rate

 

Weighted

Average

Spread

 

 

Interest

Rate

 

 

Commitment

Amount

 

 

Maximum

Current

Availability

 

 

Balance

Outstanding

 

 

Principal

Balance of

Collateral

 

Bank of the Ozarks

 

08/23/19

 

1 Month Libor

 

 

4.5

%

 

 

5.9

%

 

$

92,400

 

 

$

43,979

 

 

$

48,421

 

 

$

69,172

 

Bank of the Ozarks

 

08/31/18

 

1 Month Libor

 

 

4.0

 

 

 

5.4

 

 

 

68,600

 

 

 

14,151

 

 

 

54,449

 

 

 

77,784

 

Deutsche Bank

 

09/25/19

 

1 Month Libor

 

 

3.5

 

 

 

4.9

 

 

 

64,779

 

 

 

15,895

 

 

 

48,884

 

 

 

81,473

 

Deutsche Bank

 

06/29/18

 

1 Month Libor

 

 

3.3

 

 

 

4.6

 

 

 

49,644

 

 

 

18,224

 

 

 

31,420

 

 

 

48,339

 

Bank of the Ozarks

 

05/22/18

 

1 Month Libor

 

 

4.8

 

 

 

6.1

 

 

 

48,750

 

 

 

17,479

 

 

 

31,271

 

 

 

48,109

 

Deutsche Bank

 

12/09/18

 

1 Month Libor

 

 

3.7

 

 

 

5.0

 

 

 

42,543

 

 

 

1

 

 

 

42,542

 

 

 

60,775

 

BMO Harris Bank(1)

 

04/09/20

 

1 Month Libor

 

 

2.7

 

 

 

4.0

 

 

 

32,500

 

 

 

—

 

 

 

32,500

 

 

 

45,000

 

Subtotal

 

 

 

 

 

 

 

 

 

 

 

 

 

$

399,216

 

 

$

109,729

 

 

$

289,487

 

 

$

430,652

 

 

Repurchase Agreements

 

Maturity

Date

 

Index Rate

 

Weighted

Average

Spread

 

 

Interest

Rate

 

 

Commitment

Amount

 

 

Maximum

Current

Availability

 

 

Balance

Outstanding

 

 

Principal

Balance of

Collateral

 

Goldman Sachs(1)

 

08/19/18

 

1 Month Libor

 

 

2.2

%

 

 

3.6

%

 

$

750,000

 

 

$

183,253

 

 

$

566,747

 

 

$

890,736

 

Wells Fargo(1)

 

05/25/19

 

1 Month Libor

 

 

2.1

 

 

 

3.6

 

 

 

750,000

 

 

 

232,462

 

 

 

517,538

 

 

 

814,886

 

JP Morgan(1)

 

08/20/18

 

1 Month Libor

 

 

2.5

 

 

 

4.0

 

 

 

376,942

 

 

 

120,014

 

 

 

256,928

 

 

 

382,135

 

Morgan Stanley(1)

 

05/04/19

 

1 Month Libor

 

 

2.4

 

 

 

3.9

 

 

 

500,000

 

 

 

120,002

 

 

 

379,998

 

 

 

533,707

 

US Bank(1)

 

12/09/19

 

1 Month Libor

 

 

2.0

 

 

 

3.6

 

 

 

150,000

 

 

 

78,600

 

 

 

71,400

 

 

 

93,000

 

Goldman Sachs (CMBS)(2)

 

03/02/18

 

3 Month Libor

 

 

0.1

 

 

 

1.6

 

 

 

100,000

 

 

 

64,615

 

 

 

35,385

 

 

 

39,332

 

Royal Bank of Canada (CMBS)(2)

 

03/20/18

 

3 Month Libor

 

 

1.0

 

 

 

2.6

 

 

 

100,000

 

 

 

92,195

 

 

 

7,805

 

 

 

8,418

 

Subtotal

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2,726,942

 

 

$

891,141

 

 

$

1,835,801

 

 

$

2,762,214

 

 

Senior Secured Credit Facility

 

Maturity

Date

 

Index Rate

 

Weighted

Average

Spread

 

 

Interest

Rate

 

 

Commitment

Amount

 

 

Maximum

Current

Availability

 

 

Balance

Outstanding

 

 

Principal

Balance of

Collateral

 

Bank of America(1)

 

09/29/20

 

1 Month Libor

 

 

—

 

 

 

—

 

 

$

250,000

 

 

$

250,000

 

 

 

—

 

 

 

—

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

$

3,376,158

 

 

$

1,250,870

 

 

$

2,125,288

 

 

$

3,192,866

 

 

(1)

Borrowings under secured revolving repurchase agreements, senior secured credit facility, and one note payable with a guarantee for 25% recourse.

(2)

Borrowings under secured revolving repurchase agreements with a guarantee for 100% recourse. Maturity Date represents the sooner of the next maturity date of the CMBS secured revolving repurchase agreement, or roll over date for the applicable underlying trade confirmation, subsequent to December 31, 2017.

 

As of December 31, 2016

 

Notes Payable

 

Maturity

Date

 

Index Rate

 

Weighted

Average

Spread

 

 

Interest

Rate

 

 

Commitment

Amount

 

 

Maximum

Current

Availability

 

 

Balance

Outstanding

 

 

Principal

Balance of

Collateral

 

Bank of the Ozarks

 

8/23/2019

 

1 Month Libor

 

 

4.5

%

 

 

5.1

%

 

$

92,400

 

 

$

72,544

 

 

$

19,856

 

 

$

28,366

 

Deutsche Bank

 

9/25/2019

 

1 Month Libor

 

 

3.5

 

 

 

4.1

 

 

 

64,779

 

 

 

30,207

 

 

 

34,572

 

 

 

57,620

 

Deutsche Bank

 

12/9/2018

 

1 Month Libor

 

 

3.3

 

 

 

3.9

 

 

 

49,644

 

 

 

29,293

 

 

 

20,351

 

 

 

31,309

 

Deutsche Bank

 

9/29/2018

 

1 Month Libor

 

 

3.7

 

 

 

4.3

 

 

 

42,543

 

 

 

5,940

 

 

 

36,603

 

 

 

52,303

 

Subtotal

 

 

 

 

 

 

 

 

 

 

 

 

 

$

249,366

 

 

$

137,984

 

 

$

111,382

 

 

$

169,598

 

 

Repurchase Agreements

 

Maturity

Date

 

Index Rate

 

Weighted

Average

Spread

 

 

Interest

Rate

 

 

Commitment

Amount

 

 

Maximum

Current

Availability

 

 

Balance

Outstanding

 

 

Principal

Balance of

Collateral

 

Goldman Sachs(1)

 

8/19/2017

 

1 Month Libor

 

 

2.2

%

 

 

2.9

%

 

$

500,000

 

 

$

249,110

 

 

$

250,890

 

 

$

363,146

 

Wells Fargo(1)

 

5/25/2019

 

1 Month Libor

 

 

2.2

 

 

 

3.0

 

 

 

500,000

 

 

 

179,729

 

 

 

320,271

 

 

 

461,618

 

JP Morgan(1)

 

8/20/2018

 

1 Month Libor

 

 

2.7

 

 

 

3.4

 

 

 

313,750

 

 

 

25,001

 

 

 

288,749

 

 

 

414,269

 

Morgan Stanley(1)

 

5/3/2019

 

1 Month Libor

 

 

2.5

 

 

 

3.2

 

 

 

250,000

 

 

 

124,036

 

 

 

125,964

 

 

 

175,884

 

Goldman Sachs (CMBS)(2)

 

8/19/2017

 

3 Month Libor

 

 

2.0

 

 

 

2.6

 

 

 

100,000

 

 

 

73,195

 

 

 

26,805

 

 

 

43,500

 

Royal Bank of

   Canada (CMBS)(2)

 

2/9/2021

 

3 Month Libor

 

 

1.0

 

 

 

1.6

 

 

 

100,000

 

 

 

91,150

 

 

 

8,850

 

 

 

9,347

 

Subtotal

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,763,750

 

 

$

742,221

 

 

$

1,021,529

 

 

$

1,467,764

 

 

Subscription Secured Facility

 

Maturity

Date

 

Index Rate

 

Weighted

Average

Spread

 

 

Interest

Rate

 

 

Commitment

Amount

 

 

Maximum

Current

Availability

 

 

Balance

Outstanding

 

 

Principal

Balance of

Collateral

 

Lloyds Bank

 

1/6/2018

 

1 Month Libor

 

 

1.8

%

 

 

2.5

%

 

$

250,000

 

 

$

109,142

 

 

 

—

 

 

 

—

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2,263,116

 

 

$

989,347

 

 

$

1,132,911

 

 

$

1,637,362

 

 

(1)

Borrowings under secured revolving repurchase agreements with a guarantee for 25% recourse.

(2)

Borrowings under secured revolving repurchase agreements with a guarantee for 100% recourse.

Notes Payable

As of December 31, 2017 and December 31, 2016, the Company had seven and four note-on-note financing agreements, respectively, to finance certain of its lending activities. These loans allow for additional advances up to a specified cap and are secured by seven and four loans held for investment, respectively. The Company’s note-on-note agreements have the following guarantees:

 

(1)

Deutsche Bank and Bank of the Ozarks: Holdco has provided funding guarantees under which Holdco guarantees the funding obligations of the special purpose lending entity in limited circumstances. In addition, under the Deutsche Bank and Bank of the Ozarks asset-specific financings, Holdco has delivered limited non-recourse carve-out guarantees in favor of the lenders as additional credit support for the financings. These guarantees trigger recourse to Holdco as a result of certain “bad boy” defaults for actual losses incurred by such party, or the entire outstanding obligations of the financing borrower, depending on the nature of the “bad boy” default in question; and

 

(2)

BMO Harris: Holdco has delivered a payment guarantee in favor of the lender as additional credit support for the financing. The liability of Holdco under this guarantee is generally capped at 25% of the outstanding obligations of the special purpose subsidiary which is the primary obligor under the financing. In addition, Holdco has delivered a non-recourse carveout guarantee, which can trigger recourse to Holdco as a result of certain “bad boy” defaults for losses incurred by BMO Harris or the entire outstanding obligations of the financing borrower, depending on the nature of the “bad boy” default in question.

All loans at December 31, 2017 are guaranteed by Holdco, and the agreements include guarantor covenants regarding liquid assets and net worth requirements. The Company believes it is in compliance with all covenants as of December 31, 2017 and December 31, 2016. One of these loans at December 31, 2017 is 25% recourse to Holdco.

Secured Revolving Repurchase Agreements

The Company frequently utilizes secured revolving repurchase agreements to finance the direct origination or acquisition of commercial real estate mortgage loans and CMBS. Under these secured revolving repurchase agreements, the Company transfers all of its rights, title and interest in the loans or CMBS to the repurchase counterparty in exchange for cash, and simultaneously agrees to reacquire the asset at a future date for an amount equal to the cash exchanged plus an interest factor. The repurchase counterparty collects all principal and interest on related loans or CMBS and remits to the Company only the net after collecting its interest and other fees.

During the years ended December 31, 2017 and December 31, 2016, the Company entered into one and two additional secured revolving repurchase agreements, respectively, to finance its lending activities. Credit spreads vary depending on property type and advance rate. Assets pledged are mortgage loans collateralized by commercial properties. These facilities are 25% recourse to Holdco.

On July 21, 2017, the Company closed an amendment to its existing secured revolving repurchase facility with Morgan Stanley Bank, N.A. to increase the maximum facility amount to $400 million from $250 million. Additionally, the Company has the right to further upsize the facility to $500 million from $400 million upon at least five days’ notice, subject to customary conditions. The facility was also amended to provide for an extended maturity in May 2020 and can be extended by the Company for additional successive one year periods, subject to approval by the lender. As was the case prior to the amendment, the number of extension options is not limited by the terms of this facility. On December 27, 2017 the Company exercised its right to upsize the facility to $500 million.

On August 18, 2017, and in connection with the repayment of the Class A Note and the termination of the collateralized loan obligation, the Company closed an amendment to its existing secured revolving repurchase facility with JPMorgan Chase Bank, N.A. to increase the maximum facility amount by $103.5 million, to $417.3 million, and to include as pledged collateral under the facility the seven first mortgage loan participation interests purchased from the CLO Issuer by one of our wholly-owned subsidiaries on August 18, 2017. With respect only to the upsize amount, amounts borrowed may not be repaid and reborrowed. All other material terms of the credit facility remain unchanged.

On June 12, 2017, the Company closed an amendment to its existing secured revolving repurchase facility with Goldman Sachs Bank USA, to increase the maximum facility amount to $750 million from $500 million. The current extended maturity of this facility is August 2019.

On June 8, 2017, the Company closed an amendment to its existing secured revolving repurchase facility with Wells Fargo Bank, National Association to increase the maximum facility amount to $750 million from $500 million. The current extended maturity of this facility is May 2021.

At December 31, 2017 and December 31, 2016, the Company had two secured revolving repurchase agreements to finance its CMBS investing activities. Credit spreads vary depending upon the CMBS and advance rate. Assets pledged at December 31, 2017 and December 31, 2016 consisted of three and three mortgage-backed securities, respectively. These facilities are 100% recourse to Holdco. The agreements include various covenants covering net worth, liquidity, recourse limitations, and debt coverage. The Company believes it is in compliance with all covenants as of December 31, 2017 and December 31, 2016.

The following table summarizes certain characteristics of the Company’s secured revolving repurchase agreements secured by commercial mortgage loans, all of which are considered long-term borrowings, and comprise counterparty concentration risks, at December 31, 2017 (dollars in thousands):

 

 

 

December 31, 2017

 

 

 

Commitment

Amount

 

 

UPB of Collateral

 

 

Carrying Value

of Collateral(1)

 

 

Amounts

Payable under

Repurchase Agreements(2)

 

 

Net

Counterparty

Exposure(3)

 

 

Percent of

Stockholders'

Equity

 

 

Days to

Extended

Maturity

 

Goldman Sachs Bank

 

$

750,000

 

 

$

890,736

 

 

$

887,667

 

 

$

568,012

 

 

$

319,655

 

 

 

26.6

%

 

 

596

 

Wells Fargo Bank

 

 

750,000

 

 

 

814,886

 

 

 

811,257

 

 

 

518,353

 

 

 

292,904

 

 

 

24.4

 

 

 

1,241

 

Morgan Stanley Bank(4)

 

 

500,000

 

 

 

533,707

 

 

 

531,747

 

 

 

380,592

 

 

 

151,155

 

 

 

12.6

 

 

N/A

 

JP Morgan Chase Bank

 

 

376,942

 

 

 

382,135

 

 

 

382,542

 

 

 

257,484

 

 

 

125,058

 

 

 

10.4

 

 

 

963

 

US Bank

 

 

150,000

 

 

 

93,000

 

 

 

92,448

 

 

 

71,573

 

 

 

20,875

 

 

 

1.7

 

 

 

1,804

 

Subtotal / Weighted Average

 

$

2,526,942

 

 

$

2,714,464

 

 

$

2,705,661

 

 

$

1,796,014

 

 

$

909,647

 

 

 

 

 

 

 

960

 

 

(1)

Amounts shown in the table include interest receivable of $11.6 million and are net of premium, discount and origination fees of $20.4 million.

(2)

Amounts shown in the table include interest payable of $3.4 million and do not reflect unamortized deferred financing fees of $8.7 million.

(3)

Represents the net carrying value of the commercial real estate assets sold under agreements to repurchase, including accrued interest plus any cash or assets on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest.

(4)

The Morgan Stanley Bank credit facility is excluded from the Days to Extended Maturity calculation because it does not have a contractual maturity date.

The following table summarizes certain characteristics of the Company’s secured revolving repurchase agreements secured by CMBS, all of which are considered short-term borrowings, and comprise counterparty concentration risks, at December 31, 2017 (dollars in thousands):

 

 

 

December 31, 2017

 

 

 

Commitment

Amount

 

 

UPB of Collateral

 

 

Carrying Value

of Collateral(1)

 

 

Amounts

Payable under

Repurchase

Agreements(2)

 

 

Net

Counterparty

Exposure(3)

 

 

Percent of

Stockholders'

Equity

 

 

Days to

Extended

Maturity(4)

 

Goldman Sachs Bank

 

$

100,000

 

 

$

39,332

 

 

$

39,213

 

 

$

35,426

 

 

$

3,787

 

 

 

0.3

%

 

$

61

 

Royal Bank of Canada

 

 

100,000

 

 

 

8,418

 

 

 

8,675

 

 

 

7,879

 

 

 

796

 

 

 

0.1

 

 

 

79

 

Subtotal / Weighted Average

 

$

200,000

 

 

$

47,750

 

 

$

47,888

 

 

$

43,305

 

 

$

4,583

 

 

 

 

 

 

 

64

 

Total / Weighted Average - Loans and CMBS

 

$

2,726,942

 

 

$

2,762,214

 

 

$

2,753,549

 

 

$

1,839,319

 

 

$

914,230

 

 

 

 

 

 

 

933

 

 

(1)

Amounts shown in the table include interest receivable of $0.1 million and are net of premium, discount, and unrealized gains of $0.0 million.

(2)

Amounts shown in the table include interest payable of $0.1 million and do not reflect unamortized deferred financing fees of $0.0 million.

(3)

Represents the net carrying value of available-for-sale securities sold under agreements to repurchase, including accrued interest plus any cash or assets on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest.

(4)

Represents the sooner of the next maturity date of the CMBS secured revolving repurchase agreement, or roll over date for the applicable underlying trade confirmation, subsequent to December 31, 2017.

The following table summarizes certain characteristics of the Company’s secured revolving repurchase agreements secured by commercial mortgage loans, all of which are considered long-term borrowings, and comprise counterparty concentration risks, at December 31, 2016 (dollars in thousands):

 

 

 

December 31, 2016

 

 

 

Commitment

Amount

 

 

UPB of Collateral

 

 

Carrying Value

of Collateral(1)

 

 

Amounts

Payable under

Repurchase

Agreements(2)

 

 

Net

Counterparty

Exposure(3)

 

 

Percent of

Stockholders'

Equity

 

 

Days to

Extended

Maturity

 

Wells Fargo Bank

 

$

500,000

 

 

$

461,618

 

 

$

450,338

 

 

$

320,175

 

 

$

130,163

 

 

 

13.4

%

 

 

1,606

 

Goldman Sachs Bank

 

 

500,000

 

 

 

363,146

 

 

 

361,964

 

 

 

251,366

 

 

 

110,598

 

 

 

11.4

 

 

 

961

 

JP Morgan Chase Bank

 

 

313,750

 

 

 

414,269

 

 

 

414,461

 

 

 

289,206

 

 

 

125,255

 

 

 

12.9

 

 

 

1,328

 

Morgan Stanley Bank(4)

 

 

250,000

 

 

 

175,884

 

 

 

175,178

 

 

 

126,152

 

 

 

49,026

 

 

 

5.1

 

 

N/A

 

Subtotal

 

$

1,563,750

 

 

$

1,414,917

 

 

$

1,401,941

 

 

$

986,899

 

 

$

415,042

 

 

 

 

 

 

 

3,895

 

 

(1)

Amounts shown in the table include interest receivable of $0.004 million and are net of premium, discount and origination fees of $0.02 million.

(2)

Amounts shown in the table include interest payable of $0.001 million and do not reflect unamortized deferred financing fees of $0.01 million.

(3)

Represents the net carrying value of the commercial real estate assets sold under agreements to repurchase, including accrued interest plus any cash or assets on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest.

(4)

The Morgan Stanley Bank credit facility is excluded from the Days to Extended Maturity calculation because it does not have a contractual maturity date.

The following table summarizes certain characteristics of the Company’s secured revolving repurchase agreements secured by CMBS, all of which are considered short-term borrowings, and comprise counterparty concentration risks, at December 31, 2016 (dollars in thousands):

 

 

 

December 31, 2016

 

 

 

Commitment

Amount

 

 

UPB of Collateral

 

 

Carrying Value

of Collateral(1)

 

 

Amounts

Payable under

Repurchase

Agreements(2)

 

 

Net

Counterparty

Exposure(3)

 

 

Percent of

Stockholders'

Equity

 

 

Days to

Extended

Maturity

 

Goldman Sachs Bank

 

$

100,000

 

 

$

43,500

 

 

$

41,403

 

 

$

26,832

 

 

$

14,571

 

 

 

1.5

%

 

 

1,502

 

Royal Bank of Canada

 

 

100,000

 

 

 

9,347

 

 

 

9,932

 

 

 

8,856

 

 

 

1,076

 

 

 

0.1

 

 

 

1,507

 

Subtotal

 

$

200,000

 

 

$

52,847

 

 

$

51,335

 

 

$

35,688

 

 

$

15,647

 

 

 

 

 

 

 

3,009

 

Total / Weighted Average - Loans and CMBS

 

$

1,763,750

 

 

$

1,467,764

 

 

$

1,453,276

 

 

$

1,022,587

 

 

$

430,689

 

 

 

 

 

 

 

1,331

 

 

(1)

Amounts shown in the table include interest receivable of $0.03 million and are net of premium, discount, and unrealized gains of $2.7 million.

(2)

Amounts shown in the table include interest payable of $0.03 million and do not reflect unamortized deferred financing fees of $0.01 million.

(3)

Represents the net carrying value of available-for-sale securities sold under agreements to repurchase, including accrued interest plus any cash or assets on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest.

Senior Secured Credit Facility

On September 29, 2017, the Company entered into a senior secured credit facility agreement with Bank of America that has a maximum facility amount of $250 million, which may increase from time to time, up to $500 million, at the request of the Company and agreement by the lender. The current extended maturity of this facility is September 2022.

Subscription Secured Facility

On January 6, 2016, the Company entered into a subscription secured revolving credit facility with a commitment of $250 million. Borrowing ability was limited to the lesser of $250 million and 66.67% of unfunded commitments from included investors as defined in the agreement. The credit facility term was two years with a one year extension option at a rate of LIBOR plus 1.75%. Upon the completion of the Company’s initial public offering in July 2017, the Company cancelled the unfunded commitments and terminated this facility.
v3.8.0.1
Schedule of Maturities
 12 Months Ended
Dec. 31, 2017
Debt Disclosure [Abstract]  
Schedule of Maturities

(7) Schedule of Maturities

The future principal payments for the five years subsequent to December 31, 2017 and thereafter are as follows (in thousands):

 

 

 

Senior Secured

Credit Facility

 

 

Repurchase

Agreements

 

 

Notes

Payable

 

2018

 

$

—

 

 

$

959,362

 

 

$

208,103

 

2019

 

 

—

 

 

 

876,439

 

 

 

48,884

 

2020

 

 

—

 

 

 

—

 

 

 

32,500

 

2021

 

 

—

 

 

 

—

 

 

 

—

 

2022

 

 

—

 

 

 

—

 

 

 

—

 

Thereafter

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

—

 

 

$

1,835,801

 

 

$

289,487

 

 
v3.8.0.1
Fair Value Measurements
 12 Months Ended
Dec. 31, 2017
Fair Value Disclosures [Abstract]  
Fair Value Measurements

(8) Fair Value Measurements

The Company’s consolidated balance sheet includes Level I fair value measurements related to cash equivalents, restricted cash, accounts receivable, and accounts payable and accrued liabilities. At December 31, 2017, the Company had $37.5 million invested in money market funds with original maturities of less than 90 days. The carrying values of these financial assets and liabilities are reasonable estimates of fair value because of the short-term maturities of these instruments. The consolidated balance sheet also includes Loans Held for Investment, a collateralized loan obligation (as of December 31, 2016), and secured financing arrangements that are considered Level III fair value measurements that are not measured at fair value on a recurring basis, but are subject to fair value adjustments utilizing the fair value of the underlying collateral when there is evidence of impairment. The Company did not have any nonrecurring fair value items as of December 31, 2017 and December 31, 2016.

The following tables provide information about financial assets and liabilities not carried at fair value on a recurring basis in our consolidated balance sheet (dollars in thousands):

 

 

 

December 31, 2017

 

 

 

 

 

 

 

Fair Value

 

 

 

Carrying Value

 

 

Level I

 

 

Level II

 

 

Level III

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans Held for Investment

 

$

3,175,672

 

 

 

—

 

 

 

—

 

 

$

3,202,150

 

Financial Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secured Financing Arrangements

 

 

2,114,990

 

 

 

—

 

 

 

—

 

 

 

2,114,990

 

 

 

 

December 31, 2016

 

 

 

 

 

 

 

Fair Value

 

 

 

Carrying Value

 

 

Level I

 

 

Level II

 

 

Level III

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans Held for Investment

 

$

2,449,990

 

 

 

—

 

 

 

—

 

 

$

2,469,717

 

Financial Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateralized Loan Obligation

 

 

540,780

 

 

 

—

 

 

 

—

 

 

 

540,780

 

Secured Financing Arrangements

 

 

1,121,869

 

 

 

—

 

 

 

—

 

 

 

1,121,869

 

 

Level III fair values were determined based on standardized valuation models and significant unobservable market inputs, including holding period, discount rates based on loan to value, property type and loan pricing expectations developed by the Manager that were corroborated with other institutional lenders to determine a market spread that was added to the one-month LIBOR forward curve. There were no transfers of financial assets or liabilities within the fair value hierarchy during the year ended December 31, 2017.

At December 31, 2017 and December 31, 2016, the estimated fair value of loans held for investment was $3.2 billion and $2.5 billion, respectively. The average gross spread at December 31, 2017 and December 31, 2016 was 4.8% and 5.10%, respectively. The weighted average years to maturity at December 31, 2017 and December 31, 2016 was 3.6 years and 3.0 years, respectively, assuming full extension of all loans.

At December 31, 2017 and December 31, 2016, the carrying value of the secured financing agreements approximates fair value as current borrowing spreads reflect market terms. At December 31, 2016, the carrying value of the collateralized loan obligation approximates fair value as current borrowing spreads reflect market terms.
v3.8.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2017
Income Tax Disclosure [Abstract]  
Income Taxes

(9) Income Taxes

During the years ended December 31, 2017 and 2016, the Company indirectly owned 100% of the equity of TPG RE Finance Trust CLO TRS Corp. (“CLO TRS”), TPG RE Finance Trust CLO TRS 1 Corp. (“TRS 1”) and TPG RE Finance Trust CLO TRS 2 Corp. (“TRS 2”), each of which is a taxable REIT subsidiary (collectively, “TRS”). TRS is subject to applicable U.S. federal, state, local and foreign income tax on its taxable income. In addition, as a REIT, the Company also may be subject to a 100% excise tax on certain transactions between it and its TRS that are not conducted on an arm’s-length basis. The Company files income tax returns in the United States federal jurisdiction as well as various state and local jurisdictions. The filings are subject to normal reviews by regulatory agencies until the related statute of limitations expires, with open tax years for all years since the Company’s initial capitalization in 2014. The years open to examination range from 2014 to present.

The Company’s TRS had no operations as of December 31, 2017 and December 31, 2016, and accordingly no deferred tax assets or liabilities exist relating to the TRS’s operations. On December 31, 2017, TRS was dissolved as a result of the transactions that lead to the Company’s termination of its collateralized loan obligation discussed in Note 5.

ASC 740 also prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company has analyzed its various federal and state filing positions and believes that its income tax filing positions and deductions are well documented and supported. As of December 31, 2017 and December 31, 2016, based on the Company’s evaluation, there is no reserve for any uncertain income tax positions.

The Company’s policy is to classify interest and penalties associated with underpayment of U.S. federal and state income taxes, if any, as a component of general and administrative expense on its consolidated statements of income. For the years ended December 31, 2017 and 2016, the Company did not have interest or penalties associated with the underpayment of any income taxes.

The following table details the income tax treatment for the Company’s common and Class A common stock dividends declared as follows (dollars in thousands):

 

 

 

Year Ended December 31,

 

 

 

2017

 

 

2016

 

 

2015

 

Ordinary dividends

 

$

1.52

 

 

$

1.62

 

 

$

1.91

 

Capital gain (loss) dividends

 

 

0.04

 

 

 

—

 

 

 

—

 

Totals(1)

 

$

1.56

 

 

$

1.62

 

 

$

1.91

 

 

(1)

Dividend per share amounts reflect the impact of the common stock and Class A common stock dividend paid upon the completion of our initial public offering.

For the years ended December 31, 2017, December 31, 2016, and December 31, 2015, the Company incurred $0.1 million, $0.0 million, and $1.6 million respectively of federal, state and local tax expense relating to its TRS. At December 31, 2017, December 31, 2016, and December 31, 2015, the Company’s effective tax rate was 0.2%, 0.0%, and 2.73%, respectively.

At December 31, 2017, December 31, 2016, and December 31, 2015, the Company had no deferred tax assets or liabilities.

v3.8.0.1
Related Party Transactions
 12 Months Ended
Dec. 31, 2017
Related Party Transactions [Abstract]  
Related Party Transactions

(10) Related Party Transactions

Management Agreements

Pre-IPO Management Agreement

The Company is externally managed and advised by the Manager and, through July 24, 2017, paid the Manager a management fee in accordance with the management agreement which was executed on December 15, 2014 (the “pre-IPO Management Agreement”). For the year ended December 31, 2017, the management fee and incentive management fee calculated under the pre-IPO Management Agreement was from January 1, 2017 through July 24, 2017, or 204 days. The management fee under the pre-IPO Management Agreement was equal to 1.25% of the Company’s stockholders’ equity per annum, which was calculated and payable quarterly in arrears. For purposes of calculating the management fee under the pre-IPO Management Agreement, stockholders’ equity meant: (i) the sum of (A) the net proceeds received by the Company from all issuances of the Company’s common stock, plus (B) the Company’s cumulative Core Earnings from and after the date of the pre-IPO Management Agreement to the end of the most recently completed calendar quarter, (ii) less (A) any distributions to the Company’s stockholders from and after the date of the pre-IPO Management Agreement, (B) any amount that the Company or any of its subsidiaries had paid to repurchase the Company’s common stock since the date of the pre-IPO Management Agreement, and (C) any incentive management fee paid from and after the date of the pre-IPO Management Agreement. With respect to that portion of the period from and after the date of the pre-IPO Management Agreement that was used in any calculation of the incentive management fee or the management fee under the pre-IPO Management Agreement, all items in the foregoing sentence (other than clause (i) (B)) were calculated on a daily weighted average basis.

In addition, the Manager was entitled to an incentive management fee each calendar quarter in arrears in an amount, not less than zero, equal to the product of (i) 16% and (ii) the positive sum, if any, remaining after (A) Core Earnings of the Company for such calendar quarter were reduced by (B) the product of (1) the Company’s stockholders’ equity as of the end of such calendar quarter, and (2) 7% per annum; provided, however, that no incentive management fee was payable with respect to any calendar quarter unless Core Earnings for the 12 most recently completed calendar quarters was greater than zero. The Manager also acted as Collateral Manager for the CLO. The collateral management fee was equal to 0.075% per annum of the aggregate par amount of the loans in the CLO, and was calculated and payable monthly in arrears in cash. Pursuant to an arrangement that the Company had with the Manager prior to the Company’s initial public offering, the Company was entitled to reduce the base management fee payable to the Manager under the pre-IPO Management Agreement by an amount equal to the collateral management fee the Manager was entitled to receive for acting as the collateral manager for the CLO. After the completion of the initial public offering and prior to the termination of the CLO, the Manager was entitled to earn a collateral management fee for acting as the collateral manager for the CLO without any reduction or offset right to the base management fee payable to the Manager under the Management Agreement (as defined below). As of December 31, 2017 and December 31, 2016, the aggregate par amount of the loans in the CLO was $0.0 million and $712.4 million, respectively.

Post-IPO Management Agreement

Upon the completion of the Company’s initial public offering on July 25, 2017, the pre-IPO Management Agreement terminated, without payment of any termination fee to the Manager, and the Company entered into a new management agreement with the Manager (the “Management Agreement”). For the year ended December 31, 2017, the management fee and incentive management fee calculated under the Management Agreement was from July 25, 2017 through December 31, 2017, or 161 days.

Pursuant to the Management Agreement, the Company pays the Manager a base management fee equal to the greater of $250,000 per annum ($62,500 per quarter) and 1.50% per annum (0.375% per quarter) of the Company’s “Equity.” The base management fee is payable in cash, quarterly in arrears. “Equity” means: (1) the sum of (a) the net proceeds received by the Company from all issuances of the Company’s common stock and Class A common stock (for purposes of calculating this amount, the net proceeds received by the Company from all issuances of the Company’s outstanding common stock and Class A common stock prior to the completion of the Company’s initial public offering equals approximately $1.0 billion), plus (b) the Company’s cumulative Core Earnings for the period commencing on the completion of the Company’s initial public offering to the end of the most recently completed calendar quarter, and (2) less (a) any distributions to the Company’s stockholders following the completion of the Company’s initial public offering, (b) any amount that the Company or any of its subsidiaries have paid to repurchase for cash the Company’s common stock or Class A common stock following the completion of the Company’s initial public offering and (c) any incentive compensation earned by the Manager following the completion of the Company’s initial public offering. With respect to that portion of the period from and after the completion of the Company’s initial public offering that is used in the calculation of incentive compensation, which is described below, or the base management fee, all items in the foregoing sentence (other than the Company’s cumulative Core Earnings) will be calculated on a daily weighted average basis.

The Manager is entitled to incentive compensation which is calculated and payable in cash with respect to each calendar quarter following the completion of the Company’s initial public offering (or part thereof that the Management Agreement is in effect) in arrears in an amount, not less than zero, equal to the difference between: (1) the product of (a) 20% and (b) the difference between (i) the Company’s Core Earnings for the most recent 12-month period (or such lesser number of completed calendar quarters, if applicable), including the calendar quarter (or part thereof) for which the calculation of incentive compensation is being made (the “applicable period”), and (ii) the product of (A) the Company’s Equity in the most recent 12-month period (or such lesser number of completed calendar quarters, if applicable), including the applicable period, and (B) 7% per annum; and (2) the sum of any incentive compensation paid to the Manager with respect to the first three calendar quarters of the most recent 12-month period (or such lesser number of completed calendar quarters preceding the applicable period, if applicable). No incentive compensation is payable to the Manager with respect to any calendar quarter unless Core Earnings for the 12 most recently completed calendar quarters (or such lesser number of completed calendar quarters following the completion of the Company’s initial public offering) is greater than zero.

The Company is required to reimburse the Manager or its affiliates for documented costs and expenses incurred by it and its affiliates on the Company’s behalf except those specifically required to be borne by the Manager or its affiliates under the Management Agreement. The Company’s reimbursement obligation is not subject to any dollar limitation. The Manager or its affiliates is responsible for, and the Company will not reimburse the Manager or its affiliates for, the expenses related to the personnel of the Manager and its affiliates who provide services to the Company. However, the Company will reimburse the Manager for the Company’s allocable share of the compensation (including, without limitation, annual base salary, bonus, any related withholding taxes and employee benefits) paid to (1) the Manager’s personnel serving as the Company’s chief financial officer based on the percentage of his or her time spent managing the Company’s affairs and (2) other corporate finance, tax, accounting, internal audit, legal risk management, operations, compliance and other non-investment personnel of the Manager or its affiliates who spend all or a portion of their time managing the Company’s affairs, based on the percentage of time devoted by such personnel to the Company’s and the Company’s subsidiaries’ affairs.

Management Fees Incurred and Paid for the years ended December 31, 2017, 2016 and 2015

For the years ended December 31, 2017, December 31, 2016, and December 31, 2015, the Company incurred an aggregate of $10.0 million, $13.4 million, and $10.2 million, respectively, to the Manager for management fees and incentive management fees under the pre-IPO Management Agreement and collateral management fees under the collateral management agreement for the CLO. Additionally, for the year ended December 31, 2017 the Company incurred an aggregate of $8.6 million to the Manager for management fees and incentive management fees under the post-IPO Management Agreement. For the year ended December 31, 2017, under the pre-IPO and post-IPO Management Agreements, the Company paid an aggregate of $16.4 million to the Manager for management fees and incentive management fees and collateral management fees under the collateral management agreement for the CLO. Management fees, incentive management fees, and collateral management fees included in payable to affiliates on the consolidated balance sheets at December 31, 2017, December 31, 2016, and December 31, 2015 is approximately $5.2 million, $2.9 million, and $3.4 million, respectively.

The Company is responsible for reimbursing the Manager for certain expenses paid by the Manager on behalf of the Company or for certain services provided by the Manager to the Company. Expenses incurred by the Manager and reimbursed by the Company are reflected in the respective consolidated statements of income expense category or the consolidated balance sheets based on the nature of the item. For the years ended December 31, 2017, December 31, 2016, and December 31, 2015, $1.0 million, $0.3 million, and $0.0 million were incurred by the Manager and reimbursable by the Company, respectively.

Termination Fee

A termination fee will be payable to the Manager upon termination of the Management Agreement by the Company absent a cause event. The termination fee would also be payable to the Manager upon termination of the Management Agreement by the Manager if the Company materially breaches the Management Agreement. The termination fee is equal to three times the sum of (x) the average annual base management fee and (y) the average annual incentive compensation earned by the Manager, in each case during the 24-month period immediately preceding the most recently completed calendar quarter prior to the date of termination or, if such termination occurs prior to July 25, 2019, and such termination fee is payable, the base management fees and the incentive compensation will be annualized for the period from July 25, 2017 to July 25, 2019 based on such fees actually received by the Manager during such period.
v3.8.0.1
Earnings per Share
 12 Months Ended
Dec. 31, 2017
Earnings Per Share [Abstract]  
Earnings per Share

(11) Earnings per Share

The Company calculates its basic and diluted earnings per share using the two-class method for all periods presented, as the unvested shares of its common stock qualify as participating securities. These restricted shares have the same rights as the Company’s other shares of common stock and Class A common stock, including participating in any dividends, and therefore have been included in the Company’s basic and diluted earnings per share calculation. For the year ended December 31, 2017, $0.03 million and $0.01 million of common stock dividends declared and undistributed net income attributable to common stockholders, respectively were allocated to unvested shares of our common stock.    

At December 31, 2017, all share and per share data reflect the impact of the common stock and Class A common stock dividend which was paid upon completion of the Company’s initial public offering on July 25, 2017 to holders of record as of July 3, 2017. The following table sets forth the calculation of basic and diluted earnings per common share (common stock and Class A common stock) based on the weighted-average number of shares of common stock and Class A common stock outstanding (in thousands, except share and per share data):

 

 

 

Three Months Ended December 31,

(unaudited)

 

 

Year Ended December 31,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

2015

 

Net Income Attributable to

   Common Stockholders

 

$

24,754

 

 

$

19,155

 

 

$

94,336

 

 

$

69,951

 

 

$

59,340

 

Weighted-Average Common

   Shares Outstanding, Basic and

   Diluted

 

 

60,796,636

 

 

 

48,282,984

 

 

 

54,194,596

 

 

 

41,406,026

 

 

 

32,867,969

 

Per Common Share Amount,

   Basic and Diluted

 

$

0.41

 

 

$

0.40

 

 

$

1.74

 

 

$

1.69

 

 

$

1.81

 

 
v3.8.0.1
Stockholders' Equity
 12 Months Ended
Dec. 31, 2017
Stockholders Equity Note [Abstract]  
Stockholders' Equity

(12) Stockholders’ Equity

Initial Public Offering

On July 25, 2017, the Company completed an initial public offering of 11 million shares of common stock at a price of $20.00 per share for net proceeds of $199.4 million, after deducting underwriting discounts of $13.2 million and offering expenses payable by us of approximately $7.4 million. On August 17, 2017, the underwriters of the Company’s initial public offering partially exercised their option to purchase up to an additional 1,650,000 shares of common stock. On August 22, 2017, the Company issued and sold, and the underwriters purchased, 650,000 shares of common stock for net proceeds of $12.2 million, after deducting underwriting discounts of $0.8 million. The Company used the net proceeds from the offering to originate commercial mortgage loans consistent with its investment strategy and investment guidelines.

On July 28, 2017, the Company paid GACC $2.0 million related to its contractual deferred purchase price obligation due in the event the Company consummated an initial public offering on or before December 29, 2017.

Stock Dividend

On July 3, 2017, we declared a stock dividend that resulted in the issuance of 9,224,268 shares of our common stock and 230,815 shares of our Class A common stock upon the completion of our initial public offering. The stock dividend was paid on July 25, 2017 to holders of record of our common stock and Class A common stock as of July 3, 2017. All prior periods have been restated to give effect to the impact of these transactions on our common and Class A common stock issued, shares outstanding, per share calculations, and basic and diluted weighted average number of common shares outstanding.

10b5-1 Purchase Plan

The Company entered into an agreement (the “10b5-1 Purchase Plan”) with Goldman Sachs & Co. LLC, pursuant to which Goldman Sachs & Co. LLC, as our agent, will buy in the open market up to $35.0 million in shares of our common stock in the aggregate during the period beginning on or about August 21, 2017 and ending 12 months thereafter or, if sooner, the date on which all the capital committed to the 10b5-1 Purchase Plan has been exhausted. The 10b5-1 Purchase Plan requires Goldman Sachs & Co. LLC to purchase for us shares of our common stock when the market price per share is below the threshold price specified in the 10b5-1 Purchase Plan which is based on our book value per common share. During the three months ended December 31, 2017, the Company repurchased 386,038 shares of common stock, at a weighted average price of $19.51 per share, for total consideration (including commissions and related fees) of $7.5 million.

Through December 31, 2017, the Company has repurchased 720,783 shares of common stock, at a weighted average price of $19.55 per share, for total consideration (including commissions and related fees) of $14.1 million. At December 31, 2017, the Company’s remaining commitment under the 10b5-1 Purchase Plan is $20.9 million.

Subscriptions

Prior to the completion of the Company’s initial public offering on July 25, 2017, certain of the Company’s pre-IPO investors entered into subscription agreements for specified capital commitments. Unfunded capital commitments as of December 31, 2016 were $181.0 million. In connection with the completion of the Company’s initial public offering, the stockholders agreement between the Company and certain of the Company’s pre-IPO stockholders and all of the obligations of certain of the Company’s pre-IPO stockholders to purchase additional shares of the Company’s common stock and Class A common stock using the undrawn portion of their capital commitments were terminated.

Articles of Amendment and Restatement

On July 19, 2017, the Company filed Articles of Amendment and Restatement with the State Department of Assessments and Taxation of Maryland. The Articles of Amendment and Restatement increased the Company’s authorized common stock to 300,000,000 shares of common stock and 2,500,000 shares of Class A common stock with $0.001 par value per share. Additionally, the Articles of Amendment and Restatement increased our authorized preferred stock to 100,000,000 shares of preferred stock with a $0.001 par value per share. Class A common stock has been issued to, and is owned by, certain individuals or entities affiliated with the Manager, and the sale or conversion to common stock by holders of such Class A common stock is subject to certain restrictions.

As of December 31, 2017, the Company’s authorized common stock consisted of 300,000,000 shares of common stock and 2,500,000 shares of Class A common stock with $0.001 par value per share. As of December 31, 2017 and December 31, 2016, the Company had total common stock and Class A common stock shares of 60,618,730 and 48,446,028 issued and outstanding, respectively.

Dividends

Prior to the completion of the Company’s initial public offering, dividends were accrued at the time of approval by the Special Actions Committee (the “Committee”), a standing committee comprised of directors who are employed by TPG Global, LLC or an affiliate thereof. Subsequent to the completion of the Company’s initial public offering, dividends are accrued at the time of approval by the Company’s Board of Directors. Upon the approval of the Committee, or the Company’s Board of Directors, as applicable, dividends are paid first to the holders of the Company’s Series A preferred stock at the rate of 12.5% of the total $0.001 million liquidation preference per annum plus all accumulated and unpaid dividends thereon, and second to the holders of the Company’s common stock and Class A common stock. The Company intends to distribute each year substantially all of its taxable income to its stockholders to comply with the REIT provisions of the Internal Revenue Code of 1986, as amended.

On December 19, 2017, the Company’s Board of Directors declared a dividend for the fourth quarter of 2017 in the amount of $0.38 per share of common stock and Class A common stock, or $23.1 million in the aggregate, which dividend was paid on January 25, 2018 to holders of record of our common stock and Class A common stock as of December 29, 2017. On December 23, 2016, we declared dividends associated with the fourth quarter of 2016 in the aggregate amount of $0.4677 per share of common stock and Class A common stock, or $18.3 million, which were paid in two installments on January 25, 2017 and February 1, 2017.

For the years ended December 31, 2017 and December 31, 2016, common and Class A common stock dividends in the amount of $85.0 million and $66.9 million, respectively, were approved. As of December 31, 2017 and December 31, 2016, $23.1 million and $18.3 million, respectively, remain unpaid and are reflected in dividends payable on the Company’s consolidated balance sheets.

Liquidation

Upon liquidation of the Company, subsequent to the redemption of preferred stock, the net assets attributable to all classes of common stock shall be distributed pro rata among the common shareholders in proportion to the number of shares of common stock, regardless of class, held by each such holder.

Other Comprehensive (Loss) Income

For the years ended December 31, 2017 and December 31, 2016, other comprehensive (loss) income was $(1.3) million and $1.3 million, respectively. Other comprehensive (loss) income is a result of unrealized (losses) gains on available-for-sale CMBS investments.
v3.8.0.1
Share-based Incentive Plan
 12 Months Ended
Dec. 31, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Share-based Incentive Plan

(13) Share-based Incentive Plan

The Company does not have any employees as we are externally managed by our Manager. However, as of December 31, 2017, certain individuals employed by an affiliate of our Manager and certain members of our Board of Directors were compensated, in part, through the issuance of share-based instruments.

The Company’s Board of Directors has adopted, and the Company’s stockholders have approved, the TPG RE Finance Trust, Inc. 2017 Equity Incentive Plan (the “Incentive Plan”). The Incentive Plan provides for the grant of equity-based awards to the Company’s, and its affiliates’, directors, officers, employees (if any) and consultants, and the members, officers, directors, employees and consultants of our Manager or its affiliates, as well as to our Manager and other entities that provide services to us and our affiliates and the employees of such entities. The total number of shares of common stock or long term incentive plan (“LTIP”) units that may be awarded under the Incentive Plan is 4,600,463, or 7.5% of the issued and outstanding shares of our common stock after completion of our common and Class A common stock dividend, initial public offering and the issuance of shares in connection with the partial exercise of the option to purchase additional shares related to the initial public offering. The Incentive Plan will automatically expire on the tenth anniversary of its effective date, unless terminated earlier by the Company’s Board of Directors. No equity grants were awarded in conjunction with the Company’s initial public offering.

The following table details the outstanding shares of common stock and the weighted-average grant date fair value per share:

 

 

 

Common Stock

 

 

Weighted-Average

Grant Date Fair Value Per Share

 

Balance as of December 31, 2015

 

 

—

 

 

$

—

 

Granted

 

 

—

 

 

 

—

 

Vested

 

 

—

 

 

 

—

 

Forfeited

 

 

—

 

 

 

—

 

Balance as of December 31, 2016

 

 

—

 

 

 

—

 

Granted

 

 

75,360

 

 

$

19.44

 

Vested

 

 

—

 

 

 

—

 

Forfeited

 

 

—

 

 

 

—

 

Balance as of December 31, 2017

 

 

75,360

 

 

$

19.44

 

 

The shares generally vest in installments over a three-year period, pursuant to the terms of the award and the Incentive Plan. The 75,360 shares of common stock outstanding at December 31, 2017 will vest as follows: 18,837 shares in 2018; 18,839 shares in 2019; 18,842 shares in 2020; and 18,842 shares in 2021. As of December 31, 2017, total unrecognized compensation cost relating to unvested share-based compensation arrangements was $1.4 million based on the December 29, 2017 closing price of our common stock on the New York Stock Exchange of $19.05. This cost is expected to be recognized over a weighted average period of 3.5 years from December 31, 2017.
v3.8.0.1
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2017
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies

(14) Commitments and Contingencies

Unfunded Commitments

As of December 31, 2017 and December 31, 2016, the Company had $529.0 million and $574.6 million, respectively, of unfunded commitments related to loans held for investment. These commitments are not reflected on the consolidated balance sheets.

Litigation

From time to time, the Company may be involved in various claims and legal actions arising in the ordinary course of business. The Company establishes an accrued liability for loss contingencies when a settlement arising from a legal proceeding is both probable and reasonably estimable. If a legal matter is not probable and reasonably estimable, no such liability is recorded. Examples of this include (i) early stages of a legal proceeding, (ii) damages that are unspecified or cannot be determined, (iii) discovery has not started or is incomplete or (iv) there is uncertainty as to the outcome of pending appeals or motions. If these items exist, an estimated range of potential loss cannot be determined and as such the Company does not record an accrued liability.

As of December 31, 2017 and December 31, 2016, the Company was not involved in any material legal proceedings and has not recorded an accrued liability for loss contingencies.
v3.8.0.1
Concentration of Credit Risk
 12 Months Ended
Dec. 31, 2017
Risks And Uncertainties [Abstract]  
Concentration of Credit Risk

(15) Concentration of Credit Risk

Property Type

A summary of the loan portfolio by property type as of December 31, 2017 and December 31, 2016 based on current unpaid principal balance (“UPB”) and full loan commitment is as follows (dollars in thousands):

 

 

 

As of December 31, 2017

 

Property Type

 

Loan

Commitment

 

 

Unfunded

Commitment

 

 

% of

Portfolio

 

 

Loan UPB

 

 

% of

Portfolio

 

Office

 

$

836,826

 

 

$

160,450

 

 

 

22.5

%

 

$

676,376

 

 

 

21.1

%

Multifamily

 

 

813,775

 

 

 

75,509

 

 

 

21.8

 

 

 

738,266

 

 

 

23.1

 

Hotel

 

 

693,569

 

 

 

27,980

 

 

 

18.6

 

 

 

665,589

 

 

 

20.8

 

Condominium

 

 

679,779

 

 

 

166,358

 

 

 

18.2

 

 

 

513,421

 

 

 

16.1

 

Mixed Use

 

 

431,500

 

 

 

57,243

 

 

 

11.6

 

 

 

374,257

 

 

 

11.7

 

Retail

 

 

195,012

 

 

 

41,500

 

 

 

5.2

 

 

 

153,512

 

 

 

4.8

 

Industrial

 

 

66,500

 

 

 

—

 

 

 

1.8

 

 

 

66,500

 

 

 

2.1

 

Other

 

 

10,195

 

 

 

—

 

 

 

0.3

 

 

 

10,195

 

 

 

0.3

 

Total

 

$

3,727,156

 

 

$

529,040

 

 

 

100.0

%

 

$

3,198,116

 

 

 

100.0

%

 

(1)

During the year ended December 31, 2017, the Company refined its property type classification related to assets within its Mixed Use, Office, Retail, and Other categories. No other categories were impacted as a result of this refinement during the year ended December 31, 2017.

 

 

 

As of December 31, 2016

 

Property Type

 

Loan

Commitment

 

 

Unfunded

Commitment

 

 

% of

Portfolio

 

 

Loan UPB

 

 

% of

Portfolio

 

Condominium

 

$

821,411

 

 

$

338,222

 

 

 

27.0

%

 

$

486,647

 

 

 

19.7

%

Hotel

 

 

644,459

 

 

 

31,282

 

 

 

21.2

 

 

 

615,238

 

 

 

24.9

 

Office

 

 

538,736

 

 

 

99,953

 

 

 

17.7

 

 

 

438,783

 

 

 

17.8

 

Mixed Use

 

 

527,548

 

 

 

74,100

 

 

 

17.4

 

 

 

453,448

 

 

 

18.4

 

Multifamily

 

 

327,578

 

 

 

11,217

 

 

 

10.8

 

 

 

316,360

 

 

 

12.8

 

Industrial

 

 

131,987

 

 

 

11,468

 

 

 

4.3

 

 

 

120,519

 

 

 

4.9

 

Other

 

 

48,483

 

 

 

8,400

 

 

 

1.6

 

 

 

40,083

 

 

 

1.6

 

Total

 

$

3,040,202

 

 

$

574,642

 

 

 

100.0

%

 

$

2,471,078

 

 

 

100.0

%

 

Geography

All of the Company’s loans held for investment are secured by properties within the United States. The geographic composition of loans held for investment based on current UPB and full loan commitment is as follows (dollars in thousands):

 

 

 

December 31, 2017

 

Geographic Region

 

Loan

Commitment

 

 

Unfunded

Commitment

 

 

% Loan

Commitment

 

 

Loan UPB

 

 

% Loan

UPB

 

East

 

$

1,600,619

 

 

$

167,447

 

 

 

42.9

%

 

$

1,433,172

 

 

 

44.8

%

South

 

 

1,147,510

 

 

 

278,890

 

 

 

30.8

 

 

 

868,620

 

 

 

27.2

 

West

 

 

674,123

 

 

 

67,746

 

 

 

18.1

 

 

 

606,377

 

 

 

19.0

 

Midwest

 

 

255,904

 

 

 

14,957

 

 

 

6.9

 

 

 

240,947

 

 

 

7.5

 

Various

 

 

49,000

 

 

 

—

 

 

 

1.3

 

 

 

49,000

 

 

 

1.5

 

Total

 

$

3,727,156

 

 

$

529,040

 

 

 

100.0

%

 

$

3,198,116

 

 

 

100.0

%

 

 

 

December 31, 2016

 

Geographic Region

 

Loan

Commitment

 

 

Unfunded

Commitment

 

 

% Loan

Commitment

 

 

Loan UPB

 

 

% Loan

UPB

 

East

 

$

1,330,003

 

 

$

132,951

 

 

 

43.7

%

 

$

1,197,052

 

 

 

48.4

%

West

 

 

867,494

 

 

 

116,057

 

 

 

28.5

 

 

 

751,437

 

 

 

30.4

 

South

 

 

578,340

 

 

 

311,166

 

 

 

19.0

 

 

 

272,692

 

 

 

11.0

 

Midwest

 

 

179,589

 

 

 

3,000

 

 

 

5.9

 

 

 

176,589

 

 

 

7.1

 

Various

 

 

84,776

 

 

 

11,468

 

 

 

2.8

 

 

 

73,308

 

 

 

3.0

 

Total

 

$

3,040,202

 

 

$

574,642

 

 

 

100.0

%

 

$

2,471,078

 

 

 

100.0

%

 

Category

A summary of the loan portfolio by category as of December 31, 2017 and December 31, 2016 based on current UPB and full loan commitment is as follows (dollars in thousands):

 

 

 

December 31, 2017

 

Loan Category

 

Loan

Commitment

 

 

Unfunded

Commitment

 

 

% Loan

Commitment

 

 

Loan UPB

 

 

% Loan

UPB

 

Bridge

 

$

1,927,488

 

 

$

176,316

 

 

 

51.7

%

 

$

1,751,172

 

 

 

54.7

%

Moderate Transitional

 

 

723,075

 

 

 

132,483

 

 

 

19.4

 

 

 

590,592

 

 

 

18.5

 

Construction

 

 

609,468

 

 

 

166,358

 

 

 

16.4

 

 

 

443,110

 

 

 

13.9

 

Light Transitional

 

 

467,125

 

 

 

53,883

 

 

 

12.5

 

 

 

413,242

 

 

 

12.9

 

Total

 

$

3,727,156

 

 

$

529,040

 

 

 

100.0

%

 

$

3,198,116

 

 

 

100.0

%

 

 

 

December 31, 2016

 

Loan Category

 

Loan

Commitment

 

 

Unfunded

Commitment

 

 

% Loan

Commitment

 

 

Loan UPB

 

 

% Loan

UPB

 

Bridge

 

$

1,265,715

 

 

$

52,475

 

 

 

41.6

%

 

$

1,213,240

 

 

 

49.0

%

Construction

 

 

853,618

 

 

 

355,878

 

 

 

28.1

 

 

 

503,258

 

 

 

20.4

 

Moderate Transitional

 

 

567,818

 

 

 

104,098

 

 

 

18.7

 

 

 

463,720

 

 

 

18.8

 

Light Transitional

 

 

353,051

 

 

 

62,191

 

 

 

11.6

 

 

 

290,860

 

 

 

11.8

 

Total

 

$

3,040,202

 

 

$

574,642

 

 

 

100.0

%

 

$

2,471,078

 

 

 

100.0

%

Loan commitments represent principal commitments made by the Company, and do not include capitalized interest of $0.0 million and $5.5 million at December 31, 2017 and December 31, 2016, respectively.

v3.8.0.1
Summary of Quarterly Results of Operations (unaudited)
 12 Months Ended
Dec. 31, 2017
Quarterly Financial Information Disclosure [Abstract]  
Summary of Quarterly Results of Operations (unaudited)

(16) Summary of Quarterly Results of Operations (unaudited)

The following is a summary of the unaudited quarterly results of operations for the years ended December 31, 2017 and December 31, 2016 (dollars in thousands except per share data):

 

 

 

March 31

 

 

June 30

 

 

September 30

 

 

December 31

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income and total other revenue

 

$

30,263

 

 

$

32,346

 

 

$

28,253

 

 

$

31,470

 

Net income attributable to common stockholders

 

$

23,475

 

 

$

25,320

 

 

$

20,787

 

 

$

24,754

 

Net income per share of common and Class A common stock:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

0.48

 

 

$

0.52

 

 

$

0.35

 

 

$

0.41

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income and total other revenue

 

$

20,817

 

 

$

23,620

 

 

$

23,497

 

 

$

24,464

 

Net income attributable to common stockholders

 

$

16,249

 

 

$

17,108

 

 

$

17,439

 

 

$

19,155

 

Net income per share of common and Class A common stock:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

0.45

 

 

$

0.42

 

 

$

0.43

 

 

$

0.40

 

 

Basic and diluted earnings per share are computed independently based on the weighted-average shares of Class A common stock and common stock outstanding for each period. Accordingly, the sum of the quarterly earnings per share amounts may not agree to the total for the year.

v3.8.0.1
Subsequent Events
 12 Months Ended
Dec. 31, 2017
Subsequent Events [Abstract]  
Subsequent Events

(17) Subsequent Events

The following events occurred subsequent to December 31, 2017:

Cash Dividend

On January 25, 2018, the Company paid a cash dividend on its common stock and Class A common stock, to stockholders of record as of December 29, 2017, of $0.38 per share, or $23.1 million.

Collateralized Loan Obligation

On February 14, 2018 (the “Closing Date”), the Company entered into a collateralized loan obligation through its wholly-owned subsidiaries TPG Real Estate Finance 2018-FL1 Issuer, Ltd., an exempted company incorporated in the Cayman Islands with limited liability, as issuer (the “Issuer”), and TPG RE Finance Trust 2018-FL1 Co-Issuer, LLC, a Delaware limited liability company, as co-issuer (the “Co-Issuer” and together with the Issuer, the “Issuers”). On the Closing Date, the Issuer issued $820.5 million principal amount of notes (the “Notes”). The Co-Issuer co-issued $745.9 million principal amount of investment grade-rated notes. Concurrently with the issuance of the Notes, the Issuer also issued preferred shares, par value $0.001 per share and with an aggregate liquidation preference and notional amount equal to $1,000 per share (the “Preferred Shares” and, together with the Notes, the “Securities”), to TPG RE Finance Trust 2018-FL1 Retention Holder, LLC, a Delaware limited liability company and wholly-owned subsidiary of the Company (“Retention Holder”).

Proceeds from the issuance of the Securities were used to purchase one commercial real estate whole loan (the “Whole Loan) and 25 fully-funded pari passu participations (the “Pari Passu Participations,” and, together with the Whole Loan, the “Mortgage Assets”) in certain commercial real estate mortgage loans. The Mortgage Assets were purchased by the Issuer from TPG RE Finance Trust CLO Loan Seller, LLC, a Delaware limited liability company, wholly-owned subsidiary of the Company and an affiliate of the Issuers. The Mortgage Assets represented approximately 29% of the aggregate unpaid principal balance of the Company’s loan investment portfolio as of December 31, 2017 and had an aggregate principal balance of approximately $932.4 million as of the monthly payment date with respect to each Mortgage Asset in February 2018. Proceeds from the issuance of the Securities were also used to repay an aggregate of $670.2 million of borrowings under the Company’s secured revolving repurchase facilities with Goldman Sachs Bank USA, Morgan Stanley Bank, N.A. and Wells Fargo Bank, National Association, thus creating additional borrowing capacity for new loan originations.

10b5-1 Purchase Plan

From January 1, 2018 through February 23, 2018, the Company repurchased 276,730 shares of common stock under the 10b5-1 Purchase Plan, at a weighted average price of $18.79 per share for total consideration (including commissions and related fees) of $5.2 million.

Senior Mortgage Loan Originations

From January 1, 2018 through February 26, 2018, the Company originated four first mortgage loans, totaling $367.20 million of loan commitments which have closed, and has pending two first mortgage loans totaling $206.0 million for which borrowers have executed non-binding term sheets with the Company, entered into a period of exclusivity with the Company, and paid expense deposits to cover underwriting costs of the Company. These loans were funded, or will be funded upon closing, with a combination of cash-on-hand and borrowings.  

The Company has evaluated subsequent events through February 26, 2018.

v3.8.0.1
Schedule IV - Mortgage Loans on Real Estate
 12 Months Ended
Dec. 31, 2017
Mortgage Loans On Real Estate [Abstract]  
Schedule IV - Mortgage Loans on Real Estate

 

Schedule IV - Mortgage Loans on Real Estate

As of December 31, 2017

(Dollars in Thousands)

 

Type of Loan/Borrower

Senior Mortgage Loans (1)

 

Description /Location

 

Interest

Payment Rates

 

Extended

Maturity

Date (2)

 

Periodic

Payment

Terms (3)

 

Prior

Liens (4)

 

 

Unpaid

Principal

Balance

 

 

Carrying

Amount of

Loans (5)

 

Senior Loans in excess of 3% of the carrying amount of total loans

 

Borrower A

 

Hotel / NC

 

L+3.75%

 

2022

 

I/O

 

$

—

 

 

$

165,535

 

 

$

163,925

 

Borrower B

 

Office / PA

 

L+4.25%

 

2022

 

I/O

 

 

—

 

 

 

147,441

 

 

 

145,854

 

Borrower C

 

Mixed Use / TN

 

L+4.10%

 

2021

 

I/O

 

 

—

 

 

 

142,000

 

 

 

140,639

 

Borrower D

 

Retail / GA

 

L+4.50%

 

2022

 

I/O

 

 

—

 

 

 

122,500

 

 

 

121,430

 

Borrower E

 

Multifamily / NJ

 

L+4.75%

 

2022

 

I/O

 

 

—

 

 

 

107,220

 

 

 

106,320

 

Borrower F

 

Multifamily / TX

 

L+4.40%

 

2022

 

I/O

 

 

—

 

 

 

99,102

 

 

 

98,352

 

Senior Loans less than 3% of the carrying amount of total loans

 

Senior Loan

 

Hotel / Diversified

 

Floating: L+2.8% - 6.3%

 

2018 - 2023

 

IO

 

 

—

 

 

$

483,554

 

 

$

480,992

 

Senior Loan

 

Condominium /Diversified

 

Floating: L+4.7% - 8.5%

 

2019 - 2021

 

IO

 

 

—

 

 

 

513,422

 

 

 

511,650

 

Senior Loan

 

Office / Diversified

 

Floating: L+2.3% - 5.1%

 

2019 - 2023

 

IO

 

 

—

 

 

 

528,934

 

 

 

524,803

 

Senior Loan

 

Industrial / Diversified

 

Floating: L+4.0% - 5.0%

 

2021 - 2021

 

IO

 

 

—

 

 

 

66,500

 

 

 

66,185

 

Senior Loan

 

Multifamily / Diversified

 

Floating: L+2.8% - 5.3%

 

2021 - 2024

 

IO

 

 

—

 

 

 

472,998

 

 

 

468,932

 

Senior Loan

 

Mixed-Use / Diversified

 

Floating: L+3.3% - 3.9%

 

2020 - 2022

 

IO

 

 

—

 

 

 

232,257

 

 

 

230,853

 

Senior Loan

 

Retail / Diversified

 

Floating: L+4.6% - 4.6%

Fixed:         5.6% - 5.6%

 

2020 - 2021

 

IO & P&I

 

 

—

 

 

 

31,012

 

 

 

30,673

 

Senior Loan

 

Land / NC

 

Floating: L+4.3% - 4.3%

 

2018 - 2018

 

IO

 

 

—

 

 

 

10,195

 

 

 

9,919

 

Total senior loans

 

 

 

 

 

 

 

 

 

$

—

 

 

$

3,122,670

 

 

$

3,100,527

 

Subordinate loans (6)

 

Subordinate loans less than 3% of the carrying amount of total loans

 

Subordinate Loan

 

Multifamily / Diversified

 

Floating: L+7.8% - 13.4%

 

2020 - 2021

 

IO

 

 

98,000

 

 

 

58,946

 

 

 

58,771

 

Subordinate Loan

 

Hotel / GA

 

Floating: L+14.0% - 14.0%

 

2022 - 2022

 

IO

 

 

37,500

 

 

 

16,500

 

 

 

16,374

 

Total subordinate loans

 

Multifamily / Diversified / Hotel

 

Floating: L+7.8% -14.0%

 

2020 -2022

 

IO

 

$

135,500

 

 

$

75,446

 

 

$

75,145

 

Total Loans

 

 

 

 

 

 

 

 

 

$

135,500

 

 

$

3,198,116

 

 

$

3,175,672

 

 

(1)

Includes senior mortgage loans, related contiguous subordinate loans, and pari passu participations in senior mortgage loans.

(2)

Maximum maturity date assumes all extension options are exercised.

(3)

I/O = interest only, P/I = principal and interest.

(4)

Represents only third party liens.

(5)

The aggregate tax basis of the loans is $3.2 billion as of December 31, 2017.

(6)

Includes subordinate interests in mortgages and mezzanine loans.

 

1. Reconciliation of Mortgage Loans on Real Estate:

The following table reconciles activity regarding mortgage loans on real estate for the years ended:

 

 

 

2017

 

 

2016

 

 

2015

 

Balance at January 1,

 

$

2,449,990

 

 

$

1,933,398

 

 

$

1,741,933

 

Additions during period:

 

 

 

 

 

 

 

 

 

 

 

 

Loans originated

 

 

1,596,531

 

 

 

948,106

 

 

 

535,339

 

Additional fundings

 

 

315,409

 

 

 

328,356

 

 

 

360,538

 

Amortization of deferred fees and expenses

 

 

19,381

 

 

 

14,227

 

 

 

6,898

 

Deductions during period:

 

 

 

 

 

 

 

 

 

 

 

 

Collection of principal

 

 

(1,202,776

)

 

 

(767,713

)

 

 

(690,366

)

Amortization of premium

 

 

(2,863

)

 

 

(6,384

)

 

 

(20,944

)

Balance at December 31,

 

$

3,175,672

 

 

$

2,449,990

 

 

$

1,933,398

 

 

S-1
v3.8.0.1
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2017
Accounting Policies [Abstract]  
Basis of Presentation

Basis of Presentation

The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements include the Company’s accounts, a consolidated variable interest entity for which the Company was the primary beneficiary through August 23, 2017, and its wholly-owned subsidiaries (see Note 5 for details). All intercompany transactions and balances have been eliminated.

Certain reclassifications have been made to prior periods to conform to the current period presentation.

Use of Estimates

Use of Estimates

The preparation of the consolidated financial statements in conformity with GAAP requires estimates of assets, liabilities, revenues, expenses and disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Actual results could differ from management’s estimates, and such differences could be material. Significant estimates made in the consolidated financial statements include, but are not limited to: impairment; adequacy of provisions for loan losses; and valuation of financial instruments.  
Principles of Consolidation

Principles of Consolidation

Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810—Consolidation (“ASC 810”) provides guidance on the identification of a VIE (a variable interest entity for which control is achieved through means other than voting rights) and the determination of which business enterprise, if any, should consolidate the VIE. An entity is considered a VIE if any of the following applies: (1) the equity investors (if any) lack one or more of the essential characteristics of a controlling financial interest; (2) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support; or (3) the equity investors have voting rights that are not proportionate to their economic interests and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. The Company consolidates VIEs in which it is considered to be the primary beneficiary. The primary beneficiary is defined as the entity having both of the following characteristics: (1) the power to direct the activities that, when taken together, most significantly impact the VIE’s performance; and (2) the obligation to absorb losses and right to receive the returns from the VIE that would be significant to the VIE.

At each reporting date, the Company reconsiders its primary beneficiary conclusion to determine if its obligation to absorb losses of, or its rights to receive benefits from, the VIE could potentially be more than insignificant, and will consolidate or not consolidate accordingly.
Revenue Recognition

Revenue Recognition

Interest income on loans is accrued using the interest method based on the contractual terms of the loan, adjusted for credit impairment, if any. The objective of the interest method is to arrive at periodic interest income including recognition of fees and costs at a constant effective yield. Premiums, discounts, origination fees and exit fees are amortized or accreted into interest income over the lives of the loans using the interest method, or on a straight line basis when it approximates the interest method. Extension fees are amortized into income on a straight line basis, when it approximates the interest method, or the extension period to which they relate if they can be waived by the Company, or a co-lender, in connection with a loan refinancing. Prepayment penalties from borrowers are recognized as interest income when received. Certain of the Company’s investments may provide for additional interest based on the borrower’s operating cash flow or appreciation of the underlying collateral. Such amounts are considered contingent interest and are reflected as interest income only upon certainty of collection.

The Company considers a loan to be non-performing and places loans on non-accrual status at such time as: (1) management determines the borrower is incapable of, or has ceased efforts toward, curing the cause of a default; (2) the loan becomes 90 days delinquent; or (3) the loan has a maturity default. While on non-accrual status, based on the Company’s judgment as to collectability of principal, loans are either accounted for on a cash basis, where interest income is recognized only upon receipt of cash for principal and interest payments, or on a cost-recovery basis, where all cash receipts reduce a loan’s carrying value, and interest income is only recorded when such carrying value has been fully recovered. For the years ended December 31, 2017 and December 31, 2016, no loans were placed on non-accrual status, and we have sustained no losses or impairments to our loan portfolio.
Loans Held for Investment

Loans Held for Investment

Loans that the Company has the intent and ability to hold for the foreseeable future, or until maturity or payoff, are reported at their outstanding principal balances net of any premiums, discounts, loan origination fees and an allowance for loan losses. Loan origination fees and direct loan origination costs are deferred and recognized in interest income over the estimated life of the loans using the interest method, or on a straight line basis when it approximates the interest method, adjusted for actual prepayments.

The Company evaluates each loan classified as a loan held for investment for impairment on a quarterly basis. Impairment occurs when it is deemed probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan. If the loan is considered to be impaired, an allowance is recorded to reduce the carrying value of the loan to the present value of the expected future cash flows discounted at the loan’s contractual effective rate, or the fair value of the collateral, less estimated costs to sell, if recovery of the Company’s investment is expected solely from the sale of the collateral. As part of the quarterly impairment review, we evaluate the risk of each loan and assign a risk rating based on a variety of factors, grouped as follows to include (without limitation): (i) loan and credit structure, including the as-is loan-to-value (“LTV”) and structural features; (ii) quality and stability of real estate value and operating cash flow, including debt yield, property type, dynamics of the geographic, property-type and local market, physical condition, stability of cash flow, leasing velocity and quality and diversity of tenancy; (iii) performance against underwritten business plan; and (iv) quality, experience and financial condition of sponsor, borrower and guarantor(s). Based on a 5-point scale, our loans are rated “1” through “5,” from least risk to greatest risk, respectively, which ratings are defined as follows:

 

1-

Outperform—Exceeds performance metrics (for example, technical milestones, occupancy, rents, net operating income) included in original or current credit underwriting and business plan;

 

2-

Meets or Exceeds Expectations—Collateral performance meets or exceeds substantially all performance metrics included in original or current underwriting / business plan;

 

3-

Satisfactory—Collateral performance meets or is on track to meet underwriting; business plan is met or can reasonably be achieved;

 

4-

Underperformance—Collateral performance falls short of original underwriting, and material differences exist from business plan; technical milestones have been missed; defaults may exist, or may soon occur absent material improvement; and

 

5-

Risk of Impairment/Default—Collateral performance is significantly worse than underwriting; major variance from business plan; loan covenants or technical milestones have been breached; timely exit from loan via sale or refinancing is questionable.

Since inception, the Company has not recorded asset-specific loan loss reserves, nor has it recognized any impairments on its loan portfolio. Our determination of asset-specific loan loss reserves, should any such reserves be necessary, relies on material estimates regarding the fair value of loan collateral. Such losses could be caused by various factors, including, but not limited to, unanticipated adverse changes in the economy or events adversely affecting specific assets, borrowers, industries in which our borrowers operate or markets in which our borrowers or their properties are located. Significant judgment is required when evaluating loans for impairment.

The Company’s loans are typically collateralized by real estate, or a partnership or similar equity interest in an entity that owns real estate. As a result, the Company regularly evaluates on a loan-by-loan basis the extent and impact of any credit deterioration associated with the performance and/or value of the underlying collateral property as well as the financial and operating capability of the borrower/sponsor. The Company also evaluates the financial strength of loan guarantors, if any, and the borrower’s competency in managing and operating the property or properties. In addition, the Company considers the overall economic environment, real estate sector, and geographic sub-market in which the borrower operates. Such impairment analyses are completed and reviewed by asset management personnel and evaluated by senior management, who utilize various data sources, including (i) periodic financial data such as property occupancy, tenant profile, rental rates, operating expenses, the borrower’s exit plan, and capitalization and discount rates, (ii) site inspections, (iii) sales and financing comparables, (iv) current credit spreads for refinancing and (v) other market data.

Commercial Mortgage-Backed Securities

Commercial Mortgage-Backed Securities

The Company acquires CMBS investments for cash management and investment purposes. The Company designates CMBS investments as available-for-sale on the date of acquisition of the investment. CMBS that are not classified as held-to-maturity and which the Company does not hold for the purpose of selling in the near-term, but may dispose of prior to maturity, are also designated as available-for-sale and are carried at fair value. The Company’s recognition of interest income from its CMBS, including its amortization of premium and discount, follows the Company’s revenue recognition policy. The Company uses a specific identification method when determining the cost of security sold and the amount reclassified out of accumulated other comprehensive income into earnings. Unrealized losses on securities that, in the judgment of management, are other than temporary are charged against earnings as a loss in the consolidated statements of income. Significant valuation inputs are Level II in the fair value hierarchy as described under “Fair Value Measurements”.
Portfolio Financing Arrangements

Portfolio Financing Arrangements

The Company finances certain loan and CMBS investments using secured revolving repurchase agreements, asset-specific financing arrangements (notes payable on the consolidated balance sheets), a senior secured credit facility, and, prior to August 23, 2017, its private collateralized loan obligation (“CLO”). The related borrowings are recorded as separate liabilities on the Company’s consolidated balance sheets. Interest income earned on the investments and interest expense incurred on the related borrowings are reported separately on the Company’s consolidated statements of income and comprehensive income.

In certain instances, the Company creates structural leverage through the co-origination or non-recourse syndication of a senior loan interest to a third party. For all such syndications the Company has completed through December 31, 2017, the Company has transferred 100% of the senior mortgage loan that the Company originated on a non-recourse basis to a third-party lender and has retained as a loan investment a separate mezzanine loan investment secured by a pledge of the equity in the mortgage borrower. With respect to the senior mortgage loan transferred, the Company retains: no control over the mortgage loan; no economic interest in the mortgage loan; and no recourse to the purchaser or the borrower. Consequently, based on these circumstances and because the Company does not have any continuing involvement with the transferred senior mortgage loan, these syndications are accounted for as sales under GAAP and are removed from the Company’s consolidated financial statements at the time of transfer. The Company’s consolidated balance sheets only include the separate mezzanine loan remaining after the transfer and not the non-consolidated senior loan interest sold or co-originated that the Company transferred.
Fair Value Measurements

Fair Value Measurements

The Company follows ASC 820-10, Fair Value Measurements and Disclosures (“ASC 820-10”), for its holdings of financial instruments. ASC 820-10 defines fair value, establishes a framework for measuring fair value in accordance with GAAP and expands disclosure of fair value measurements. ASC 820-10 determines fair value to be the price that would be received for a financial instrument in a current sale, which assumes an orderly transaction between market participants on the measurement date. The Company determines the estimated fair value of financial assets and liabilities using the three-tier fair value hierarchy established by GAAP, which prioritizes the inputs used in measuring fair value. GAAP establishes market-based or observable inputs as the preferred source of values followed by valuation models using management assumptions in the absence of market inputs. The financial instruments recorded at fair value on a recurring basis in the Company’s consolidated financial statements are cash and cash equivalents, restricted cash and available-for-sale CMBS investments. The three levels of inputs that may be used to measure fair value are as follows:

Level I—Valuations based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to access.

Level II—Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

Level III—Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

For certain financial instruments, the various inputs that management uses to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value hierarchy is appropriate for such financial instrument is based on the lowest level of input that is significant to the fair value measurement. The assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument. The Company may use valuation techniques consistent with the market and income approaches to measure the fair value of its assets and liabilities. The market approach uses third-party valuations and information obtained from market transactions involving identical or similar assets or liabilities. The income approach uses projections of the future economic benefits of an instrument to determine its fair value, such as in the discounted cash flow methodology. The inputs or methodology used for valuing financial instruments are not necessarily an indication of the risk associated with investing in these financial instruments. Transfers between levels of the fair value hierarchy are assumed to occur at the end of the reporting period.

Income Taxes

Income Taxes

The Company qualifies and has elected to be taxed as a REIT for U.S. federal income tax purposes under the Internal Revenue Code of 1986, as amended, commencing with its initial taxable year ended December 31, 2014. To the extent that it annually distributes at least 90% of its REIT taxable income to stockholders and complies with various other requirements as a REIT, the Company generally will not be subject to U.S. federal income taxes on its distributed REIT taxable income. If the Company fails to continue to qualify as a REIT in any taxable year and does not qualify for certain statutory relief provisions, the Company will be subject to U.S. federal and state income taxes at regular corporate rates beginning with the year in which it fails to qualify and may be precluded from being able to elect to be treated as a REIT for the Company’s four subsequent taxable years. Even though the Company currently qualifies for taxation as a REIT, the Company may be subject to certain U.S. federal, state, local and foreign taxes on the Company’s income and property and to U.S. federal income and excise taxes on the Company’s undistributed REIT taxable income.

Deferred tax assets and liabilities are recognized for future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the periods in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period in which the enactment date occurs. Under ASC Topic 740, Income Taxes (“ASC 740”), a valuation allowance is established when management believes it is more likely than not that a deferred tax asset will not be realized. The Company intends to continue to operate in a manner consistent with, and to continue to meet the requirements to be treated as, a REIT for tax purposes and to distribute all of its REIT taxable income. Accordingly, the Company does not expect to pay corporate level taxes.
Earnings per Common Share

Earnings per Common Share

The Company utilizes the two-class method when assessing participating securities to calculate earnings per common share. Basic and diluted earnings per common share is computed by dividing net income attributable to common stockholders (i.e., holders of common stock and Class A common stock), by the weighted-average number of common shares (both common stock and Class A common stock) outstanding during the period. The preferences, rights, voting powers, restrictions, limitations as to dividends and other distributions, qualifications and terms and conditions of redemption of the Class A common stock are identical to the common stock, except (1) the Class A common stock is not a “margin security” as defined in Regulation U of the Board of Governors of the U.S. Federal Reserve System (and rulings and interpretations thereunder) and may not be listed on a national securities exchange or a national market system and (2) each share of Class A common stock is convertible at any time or from time to time, at the option of the holder, for one fully paid and non-assessable share of common stock. The Class A common stock votes together with the common stock as a single class. Shares of Class A common stock have been issued to, and are owned by, certain individuals or entities affiliated with the Company’s external manager, TPG RE Finance Trust Management, L.P., a Delaware limited partnership (the “Manager”), and the sale or conversion to common stock by investors of such shares of Class A common stock is subject to certain restrictions.

Diluted earnings per common share is calculated by including the effect of dilutive securities. The Company accounts for unvested share-based payment awards that contain non-forfeitable dividend rights or dividend equivalents (whether paid or unpaid) as participating securities, which are included in the computation of earnings per share pursuant to the two-class method.
Share-Based Compensation

Share-Based Compensation

Share-based compensation consists of awards issued by the Company to certain employees of affiliates of our Manager that vest over the life of the awards as well as certain members of our Board of Directors. Compensation expense is recognized in net income on a variable basis over the applicable award vesting period based on the value of our common stock. Forfeitures of share-based awards are recognized as they occur.
Deferred Financing Costs

Deferred Financing Costs

Deferred financing costs are reflected net of the CLO and secured financing agreements on the Company’s consolidated balance sheets. These costs are amortized in interest expense using the interest method or on a straight line basis when it approximates the interest method over the life of the related obligations.

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents include cash held in banks or invested in money market funds with original maturities of less than 90 days. The Company deposits its cash and cash equivalents with high credit quality institutions to minimize credit risk exposure. The Company maintains cash accounts at several financial institutions, which are insured up to a maximum of $250,000 per account as of December 31, 2017 and December 31, 2016. The balances in these accounts may exceed the insured limits.
Restricted Cash

Restricted Cash

Restricted cash primarily represents deposit proceeds from potential borrowers which may be returned to borrowers, after deducting transaction costs paid by the Company for the benefit of the borrowers, upon the closing of a loan transaction.

The following table provides a reconciliation of cash, cash equivalents, and restricted cash on the consolidated balance sheets to the total amount shown on the consolidated statements of cash flows (dollars in thousands):

 

 

 

December 31, 2017

 

 

December 31, 2016

 

Cash and Cash Equivalents

 

$

75,037

 

 

$

103,126

 

Restricted Cash

 

 

700

 

 

 

849

 

Total cash, cash equivalents, and restricted cash shown on the

   consolidated statements of cash flows

 

$

75,737

 

 

$

103,975

 

 
Recently Issued Accounting Pronouncements: Adopted And Not Yet Adopted

Recently Issued & Adopted Accounting Pronouncements

In May 2017, the FASB issued Accounting Standards Update (“ASU”) 2017-09, Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting (“ASU 2017-09”). ASU 2017-09 provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The current disclosure requirements in Topic 718 apply regardless of whether an entity is required to apply modification accounting under the amendments of ASU 2017-09. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. The Company early adopted this update during the quarter ended December 31, 2017, and its adoption did not have a material impact on our consolidated financial statements.

In March 2017, the FASB issued ASU 2017-08, Receivables (Topic 310): Receivables – Nonrefundable Fees and Other Costs (“ASU 2017-08”). ASU 2017-08 shortens the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; discounts continue to be amortized through maturity. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period. The Company early adopted this update during the quarter ended March 31, 2017. There was no effect on our consolidated financial statements as a result of the adoption of ASU 2017-08.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force) (“ASU 2016-18”). The amendments in ASU 2016-18 require an entity to reconcile and explain the period-over-period change in total cash, cash equivalents and restricted cash within its statements of cash flows. ASU 2016-18 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted. A reporting entity must apply the amendments in ASU 2016-18 using a full retrospective approach. The Company adopted ASU 2016-18 in the fourth quarter of 2017 and applied the guidance retrospectively to our prior period consolidated statement of cash flows.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The new guidance addresses the classification of various transactions including debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments, contingent consideration payments made after a business combination, distributions received from equity method investees, beneficial interests in securitization transactions, and others. The Company adopted ASU 2016-15 during the quarter ended September 30, 2016, and its adoption did not have a material impact on our consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). ASU 2016-09 is intended to simplify accounting for share-based payment transactions. The areas for simplification in this update involve several aspects of accounting for share-based payment transactions, including income tax consequences, award classification as equity or liabilities, policy election to account for employee forfeitures as they occur, and classification on the statements of cash flows. ASU 2016-09 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The transition method required by ASU 2016-09 varies based on the specific amendment being adopted. The Company adopted this update on December 13, 2017 upon the approval of its initial stock awards under its 2017 Equity Incentive Plan. The adoption of ASU 2016-09 did not have a material impact on our consolidated financial statements. The Company has formally disclosed its policy regarding the treatment of forfeitures of stock compensation awards (see Share-Based Compensation above).

In April 2015, the FASB issued ASU 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”), which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The Company did not elect to early adopt ASU 2015-03. This new guidance is framed around how to account for costs related to term debt, and it does not address how to present fees paid to lenders or other costs to secure revolving lines of credit, which are, at the outset, not associated with an outstanding borrowing. In August 2015, FASB issued ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements (“ASU 2015-15”), which amends ASC 835-30, Interest—Imputation of Interest. This update clarifies the presentation and subsequent measurement of debt issuance costs associated with lines of credit. These costs may be deferred and presented as an asset and subsequently amortized ratably over the term of the revolving debt arrangement. The Company adopted this update during the quarter ended March 31, 2016. The effect of the adoption of ASU 2015-03 and ASU 2015-15 was to reclassify debt issuance costs of approximately $13.6 million as of December 31, 2016 from “Deferred Financing Costs” to a contra account as a deduction from the related debt liabilities. There was no effect on the Company’s consolidated statements of income and comprehensive income as a result of the adoption of ASU 2015-03 and ASU 2015-15.

In February 2015, FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (“ASU 2015-02”). ASU 2015-02 requires an entity to evaluate whether it should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. Specifically, the amendments: (1) modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities; (2) eliminate the presumption that a general partner should consolidate a limited partnership; and (3) affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships. This guidance is effective for fiscal years beginning after December 15, 2015. The Company adopted this update during the quarter ended March 31, 2016. There was no effect on our consolidated financial statements as a result of the adoption of ASU 2015-02.

In August 2014, FASB issued ASU 2014-13, Consolidation (Topic 810): Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity (“ASU 2014-13”). For entities that consolidate a collateralized financing entity within the scope of this update, an option to elect to measure the financial assets and the financial liabilities of that collateralized financing entity using either the measurement alternative included in ASU 2014-13 or ASC 820 on fair value measurement is provided. The guidance is effective for fiscal years beginning after December 15, 2015. The Company adopted this update during the quarter ended March 31, 2016, and the adoption did not have a material effect on the Company’s consolidated financial statements, as the fair value option was not elected.

In August 2014, FASB issued ASU 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). The guidance in ASU 2014-15 sets forth management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern as well as required disclosures. ASU 2014-15 indicates that, when preparing interim and annual financial statements, management should evaluate whether conditions or events, in the aggregate, raise substantial doubt about the entity’s ability to continue as a going concern for one year from the date the financial statements are issued or are available to be issued. This evaluation should include consideration of conditions and events that are either known or are reasonably knowable at the date the financial statements are issued or are available to be issued, and, if applicable, whether it is probable that management’s plans to address the substantial doubt will be implemented and, if so, whether it is probable that the plans will alleviate the substantial doubt. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods and annual periods thereafter. The adoption of this guidance did not have an impact on our disclosures.

Recently Issued Accounting Pronouncements

In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. ASU 2016-13 will replace the “incurred loss” model under existing guidance with an “expected loss” model for instruments measured at amortized cost, and require entities to record allowances for available-for-sale debt securities rather than reduce the carrying amount, as they do today under the other-than-temporary impairment model. Upon adoption, and resulting from this change, the Company expects that it will have to record a loan loss reserve at origination or acquisition of an individual loan or a loan portfolio. ASU 2016-13 also simplifies the accounting model for purchased credit-impaired debt securities and loans. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019 and is to be adopted through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company is currently evaluating the impact ASU 2016-13 will have on its consolidated financial statements.

In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 is a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. In August 2015, the FASB issued an update (“ASU 2015-14”) to Topic 606, Deferral of the Effective Date, which defers the adoption of ASU 2014-09 to interim and annual reporting periods in fiscal years that begin after December 15, 2017. In March 2016, the FASB issued an update (“ASU 2016-08”) to Topic 606, Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarifies the implementation guidance on principal versus agent considerations in the new revenue recognition standard pursuant to ASU 2014-09. In April 2016, the FASB issued an update (“ASU 2016-10”) to Topic 606, Identifying Performance Obligations and Licensing, which clarifies guidance related to identifying performance obligations and licensing implementation guidance contained in ASU 2014-09. In May 2016, the FASB issued an update (“ASU 2016-12”) to Topic 606, Narrow-Scope Improvements and Practical Expedients, which amends certain aspects of the new revenue recognition standard pursuant to ASU 2014-09. In adopting ASU 2014-09, companies may use either a full retrospective or a modified retrospective approach. Additionally, this guidance requires improved disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Early adoption is not permitted, except that we may adopt under the original provisions of ASU 2014-09 prior to the issuance of ASU 2015-14. The Company adopted the revenue recognition standard updates on January 1, 2018. The Company anticipates that these updates may impact the fiscal period in which its miscellaneous fee revenue is recognized, but not preclude its recognition. For the fiscal years ended December 31, 2017, 2016, and 2015, the Company’s miscellaneous fee revenue subject to this change did not exceed $0.5 million during any period. Miscellaneous fee revenue is recorded to Other Income, net in the Company’s consolidated statements of income. As a result, the Company’s adoption of the revenue recognition standard updates on January 1, 2018 is not expected to have a material impact on the Company’s consolidated financial statements.
v3.8.0.1
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2017
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents [Abstract]  
Summary of Reconciliation of Cash, Cash Equivalents, and Restricted Cash on Consolidated Balance Sheets to Total Amount shown on Consolidated Statements of Cash Flows

Restricted Cash

Restricted cash primarily represents deposit proceeds from potential borrowers which may be returned to borrowers, after deducting transaction costs paid by the Company for the benefit of the borrowers, upon the closing of a loan transaction.

The following table provides a reconciliation of cash, cash equivalents, and restricted cash on the consolidated balance sheets to the total amount shown on the consolidated statements of cash flows (dollars in thousands):

 

 

 

December 31, 2017

 

 

December 31, 2016

 

Cash and Cash Equivalents

 

$

75,037

 

 

$

103,126

 

Restricted Cash

 

 

700

 

 

 

849

 

Total cash, cash equivalents, and restricted cash shown on the

   consolidated statements of cash flows

 

$

75,737

 

 

$

103,975

 

 
v3.8.0.1
Loans Held for Investment (Tables)
 12 Months Ended
Dec. 31, 2017
Receivables [Abstract]  
Schedule of Loan Investment Portfolio

The following tables present an overview of the loan investment portfolio as of December 31, 2017 and December 31, 2016 (dollars in thousands):

 

 

 

December 31, 2017

 

Loans Receivable

 

Outstanding

Principal

 

 

Unamortized Premium

(Discount), Loan

Origination Fees, net

 

 

Carrying

Amount

 

Senior loans

 

$

3,122,670

 

 

$

(22,143

)

 

$

3,100,527

 

Subordinated and mezzanine loans

 

 

75,446

 

 

 

(301

)

 

 

75,145

 

Subtotal before allowance

 

 

3,198,116

 

 

 

(22,444

)

 

 

3,175,672

 

Allowance for loan losses

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

3,198,116

 

 

$

(22,444

)

 

$

3,175,672

 

 

 

 

December 31, 2016

 

Loans Receivable

 

Outstanding

Principal

 

 

Unamortized Premium

(Discount), Loan

Origination Fees, net

 

 

Carrying

Amount

 

Senior loans

 

$

2,429,632

 

 

$

(20,931

)

 

$

2,408,701

 

Subordinated and mezzanine loans

 

 

41,446

 

 

 

(157

)

 

 

41,289

 

Subtotal before allowance

 

 

2,471,078

 

 

 

(21,088

)

 

 

2,449,990

 

Allowance for loan losses

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

2,471,078

 

 

$

(21,088

)

 

$

2,449,990

 

 
Summary of Loan Portfolio Activity

For the year ended December 31, 2017, loan portfolio activity was as follows (dollars in thousands):

Balance at December 31, 2016

 

$

2,449,990

 

Loans originated

 

 

1,596,531

 

Additional fundings

 

 

315,409

 

Amortization of discount and origination fees

 

 

19,381

 

Deductions during the period:

 

 

 

 

Collection of principal

 

 

(1,202,776

)

Amortization of premium

 

 

(2,863

)

Balance at December 31, 2017

 

$

3,175,672

 

 
Summary of Carrying Values and Results of Internal Risk Rating Review

The table below summarizes the carrying values and results of the Company’s internal risk rating review performed as of December 31, 2017 and December 31, 2016 (dollars in thousands):

 

 

 

Carrying Value

 

Rating

 

December 31, 2017

 

 

December 31, 2016

 

1

 

$

—

 

 

$

261,261

 

2

 

 

1,318,816

 

 

 

745,340

 

3

 

 

1,680,913

 

 

 

1,205,994

 

4

 

 

175,943

 

 

 

237,395

 

5

 

 

—

 

 

 

—

 

Totals

 

$

3,175,672

 

 

$

2,449,990

 

Weighted Average Risk Rating(1)

 

 

2.6

 

 

 

2.6

 

 

1.

Weighted Average Risk Rating calculated based on unpaid principal balance at year end
v3.8.0.1
Commercial Mortgage-Backed Securities (Tables)
 12 Months Ended
Dec. 31, 2017
Investments Debt And Equity Securities [Abstract]  
Available-for-Sale Commercial Mortgage-Backed Securities

Detailed information regarding the Company’s available-for-sale CMBS is as follows (dollars in thousands):

 

 

December 31, 2017

 

 

 

Face Amount

 

 

Unamortized

Premium (Discount)

 

 

Gross

Unrealized (Loss)

 

 

Estimated

Fair Value

 

Investments, at Fair Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial mortgage-backed securities

 

$

85,661

 

 

$

268

 

 

$

(34

)

 

$

85,895

 

 

 

 

December 31, 2016

 

 

 

Face Amount

 

 

Unamortized

Premium (Discount)

 

 

Gross

Unrealized Gain

 

 

Estimated

Fair Value

 

Investments, at Fair Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial mortgage-backed securities

 

$

62,927

 

 

$

(2,673

)

 

$

1,250

 

 

$

61,504

 

 
Available-for-Sale Commercial Mortgage-Backed Securities by Contractual Maturity

The amortized cost and estimated fair value of the Company’s available-for-sale CMBS by contractual maturity are shown in the following table (dollars in thousands):

 

 

December 31, 2017

 

 

 

Amortized

Cost

 

 

Estimated

Fair Value

 

Expected Maturity Date

 

 

 

 

 

 

 

 

After one, within five years

 

$

36,700

 

 

$

36,872

 

After five, within ten years

 

 

49,229

 

 

 

49,023

 

Total investment in commercial mortgage-

   backed securities, at fair value

 

$

85,929

 

 

$

85,895

 

 

 

 

December 31, 2016

 

 

 

Amortized

Cost

 

 

Estimated

Fair Value

 

Expected Maturity Date

 

 

 

 

 

 

 

 

After one, within five years

 

$

58,962

 

 

$

60,242

 

After five, within ten years

 

 

1,292

 

 

 

1,262

 

Total investment in commercial mortgage-

   backed securities, at fair value

 

$

60,254

 

 

$

61,504

 

 
v3.8.0.1
Variable Interest Entities and Collateralized Loan Obligation (Tables)
 12 Months Ended
Dec. 31, 2017
Summary of Variable Interest Entities Assets and Liabilities

The Company’s total assets and total liabilities at December 31, 2016 included the following VIE assets and liabilities (dollars in thousands):

 

 

December 31, 2016

 

ASSETS

 

 

 

 

Cash and Cash Equivalents

 

$

2,133

 

Accounts Receivable

 

 

479

 

Accounts Receivable from Servicer/Trustee

 

 

23,009

 

Accrued Interest Receivable

 

 

5,714

 

Loans Held for Investment

 

 

712,158

 

Total Assets

 

$

743,493

 

LIABILITIES

 

 

 

 

Accrued Interest Payable

 

$

885

 

Accrued Expenses

 

 

32

 

Collateralized Loan Obligation

 

 

540,780

 

Payable to Affiliates

 

 

933

 

Deferred Revenue

 

 

198

 

Total Liabilities

 

$

542,828

 

 
Collateralized Loan Obligation  
Schedule of Borrowings and Corresponding Collateral

The following table outlines borrowings and the corresponding collateral under the Company’s consolidated CLO Issuer as of December 31, 2016 (dollars in thousands):

As of December 31, 2016

 

Debt

 

 

Collateral (loans)

 

Face Value

 

 

Carrying Value

 

 

Outstanding Principal

 

 

Carrying Value

 

$

543,320

 

 

$

540,780

 

 

$

712,420

 

 

$

712,158

 

 
v3.8.0.1
Secured Revolving Repurchase Agreements, Senior Secured Credit Facility, Notes Payable and Subscription Secured Facility (Tables)
 12 Months Ended
Dec. 31, 2017
Debt Instrument [Line Items]  
Schedule of Information Related to Notes Payable, Secured Revolving Repurchase Agreement, Senior Secured Credit Facility and Subscription Secured Facility

The following table presents certain information regarding the Company’s notes payable, secured revolving repurchase agreements, senior secured credit facility, and subscription secured facility as of December 31, 2017 and December 31, 2016, respectively. Except as otherwise noted, all agreements are on a non-recourse basis. Amounts included are shown in thousands:

 

As of December 31, 2017

 

Notes Payable

 

Maturity

Date

 

Index Rate

 

Weighted

Average

Spread

 

 

Interest

Rate

 

 

Commitment

Amount

 

 

Maximum

Current

Availability

 

 

Balance

Outstanding

 

 

Principal

Balance of

Collateral

 

Bank of the Ozarks

 

08/23/19

 

1 Month Libor

 

 

4.5

%

 

 

5.9

%

 

$

92,400

 

 

$

43,979

 

 

$

48,421

 

 

$

69,172

 

Bank of the Ozarks

 

08/31/18

 

1 Month Libor

 

 

4.0

 

 

 

5.4

 

 

 

68,600

 

 

 

14,151

 

 

 

54,449

 

 

 

77,784

 

Deutsche Bank

 

09/25/19

 

1 Month Libor

 

 

3.5

 

 

 

4.9

 

 

 

64,779

 

 

 

15,895

 

 

 

48,884

 

 

 

81,473

 

Deutsche Bank

 

06/29/18

 

1 Month Libor

 

 

3.3

 

 

 

4.6

 

 

 

49,644

 

 

 

18,224

 

 

 

31,420

 

 

 

48,339

 

Bank of the Ozarks

 

05/22/18

 

1 Month Libor

 

 

4.8

 

 

 

6.1

 

 

 

48,750

 

 

 

17,479

 

 

 

31,271

 

 

 

48,109

 

Deutsche Bank

 

12/09/18

 

1 Month Libor

 

 

3.7

 

 

 

5.0

 

 

 

42,543

 

 

 

1

 

 

 

42,542

 

 

 

60,775

 

BMO Harris Bank(1)

 

04/09/20

 

1 Month Libor

 

 

2.7

 

 

 

4.0

 

 

 

32,500

 

 

 

—

 

 

 

32,500

 

 

 

45,000

 

Subtotal

 

 

 

 

 

 

 

 

 

 

 

 

 

$

399,216

 

 

$

109,729

 

 

$

289,487

 

 

$

430,652

 

 

Repurchase Agreements

 

Maturity

Date

 

Index Rate

 

Weighted

Average

Spread

 

 

Interest

Rate

 

 

Commitment

Amount

 

 

Maximum

Current

Availability

 

 

Balance

Outstanding

 

 

Principal

Balance of

Collateral

 

Goldman Sachs(1)

 

08/19/18

 

1 Month Libor

 

 

2.2

%

 

 

3.6

%

 

$

750,000

 

 

$

183,253

 

 

$

566,747

 

 

$

890,736

 

Wells Fargo(1)

 

05/25/19

 

1 Month Libor

 

 

2.1

 

 

 

3.6

 

 

 

750,000

 

 

 

232,462

 

 

 

517,538

 

 

 

814,886

 

JP Morgan(1)

 

08/20/18

 

1 Month Libor

 

 

2.5

 

 

 

4.0

 

 

 

376,942

 

 

 

120,014

 

 

 

256,928

 

 

 

382,135

 

Morgan Stanley(1)

 

05/04/19

 

1 Month Libor

 

 

2.4

 

 

 

3.9

 

 

 

500,000

 

 

 

120,002

 

 

 

379,998

 

 

 

533,707

 

US Bank(1)

 

12/09/19

 

1 Month Libor

 

 

2.0

 

 

 

3.6

 

 

 

150,000

 

 

 

78,600

 

 

 

71,400

 

 

 

93,000

 

Goldman Sachs (CMBS)(2)

 

03/02/18

 

3 Month Libor

 

 

0.1

 

 

 

1.6

 

 

 

100,000

 

 

 

64,615

 

 

 

35,385

 

 

 

39,332

 

Royal Bank of Canada (CMBS)(2)

 

03/20/18

 

3 Month Libor

 

 

1.0

 

 

 

2.6

 

 

 

100,000

 

 

 

92,195

 

 

 

7,805

 

 

 

8,418

 

Subtotal

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2,726,942

 

 

$

891,141

 

 

$

1,835,801

 

 

$

2,762,214

 

 

Senior Secured Credit Facility

 

Maturity

Date

 

Index Rate

 

Weighted

Average

Spread

 

 

Interest

Rate

 

 

Commitment

Amount

 

 

Maximum

Current

Availability

 

 

Balance

Outstanding

 

 

Principal

Balance of

Collateral

 

Bank of America(1)

 

09/29/20

 

1 Month Libor

 

 

—

 

 

 

—

 

 

$

250,000

 

 

$

250,000

 

 

 

—

 

 

 

—

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

$

3,376,158

 

 

$

1,250,870

 

 

$

2,125,288

 

 

$

3,192,866

 

 

(1)

Borrowings under secured revolving repurchase agreements, senior secured credit facility, and one note payable with a guarantee for 25% recourse.

(2)

Borrowings under secured revolving repurchase agreements with a guarantee for 100% recourse. Maturity Date represents the sooner of the next maturity date of the CMBS secured revolving repurchase agreement, or roll over date for the applicable underlying trade confirmation, subsequent to December 31, 2017.

As of December 31, 2016

 

Notes Payable

 

Maturity

Date

 

Index Rate

 

Weighted

Average

Spread

 

 

Interest

Rate

 

 

Commitment

Amount

 

 

Maximum

Current

Availability

 

 

Balance

Outstanding

 

 

Principal

Balance of

Collateral

 

Bank of the Ozarks

 

8/23/2019

 

1 Month Libor

 

 

4.5

%

 

 

5.1

%

 

$

92,400

 

 

$

72,544

 

 

$

19,856

 

 

$

28,366

 

Deutsche Bank

 

9/25/2019

 

1 Month Libor

 

 

3.5

 

 

 

4.1

 

 

 

64,779

 

 

 

30,207

 

 

 

34,572

 

 

 

57,620

 

Deutsche Bank

 

12/9/2018

 

1 Month Libor

 

 

3.3

 

 

 

3.9

 

 

 

49,644

 

 

 

29,293

 

 

 

20,351

 

 

 

31,309

 

Deutsche Bank

 

9/29/2018

 

1 Month Libor

 

 

3.7

 

 

 

4.3

 

 

 

42,543

 

 

 

5,940

 

 

 

36,603

 

 

 

52,303

 

Subtotal

 

 

 

 

 

 

 

 

 

 

 

 

 

$

249,366

 

 

$

137,984

 

 

$

111,382

 

 

$

169,598

 

 

Repurchase Agreements

 

Maturity

Date

 

Index Rate

 

Weighted

Average

Spread

 

 

Interest

Rate

 

 

Commitment

Amount

 

 

Maximum

Current

Availability

 

 

Balance

Outstanding

 

 

Principal

Balance of

Collateral

 

Goldman Sachs(1)

 

8/19/2017

 

1 Month Libor

 

 

2.2

%

 

 

2.9

%

 

$

500,000

 

 

$

249,110

 

 

$

250,890

 

 

$

363,146

 

Wells Fargo(1)

 

5/25/2019

 

1 Month Libor

 

 

2.2

 

 

 

3.0

 

 

 

500,000

 

 

 

179,729

 

 

 

320,271

 

 

 

461,618

 

JP Morgan(1)

 

8/20/2018

 

1 Month Libor

 

 

2.7

 

 

 

3.4

 

 

 

313,750

 

 

 

25,001

 

 

 

288,749

 

 

 

414,269

 

Morgan Stanley(1)

 

5/3/2019

 

1 Month Libor

 

 

2.5

 

 

 

3.2

 

 

 

250,000

 

 

 

124,036

 

 

 

125,964

 

 

 

175,884

 

Goldman Sachs (CMBS)(2)

 

8/19/2017

 

3 Month Libor

 

 

2.0

 

 

 

2.6

 

 

 

100,000

 

 

 

73,195

 

 

 

26,805

 

 

 

43,500

 

Royal Bank of

   Canada (CMBS)(2)

 

2/9/2021

 

3 Month Libor

 

 

1.0

 

 

 

1.6

 

 

 

100,000

 

 

 

91,150

 

 

 

8,850

 

 

 

9,347

 

Subtotal

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,763,750

 

 

$

742,221

 

 

$

1,021,529

 

 

$

1,467,764

 

 

Subscription Secured Facility

 

Maturity

Date

 

Index Rate

 

Weighted

Average

Spread

 

 

Interest

Rate

 

 

Commitment

Amount

 

 

Maximum

Current

Availability

 

 

Balance

Outstanding

 

 

Principal

Balance of

Collateral

 

Lloyds Bank

 

1/6/2018

 

1 Month Libor

 

 

1.8

%

 

 

2.5

%

 

$

250,000

 

 

$

109,142

 

 

 

—

 

 

 

—

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2,263,116

 

 

$

989,347

 

 

$

1,132,911

 

 

$

1,637,362

 

 

(1)

Borrowings under secured revolving repurchase agreements with a guarantee for 25% recourse.

(2)

Borrowings under secured revolving repurchase agreements with a guarantee for 100% recourse.
Summary of Secured Revolving Repurchase Agreements Secured by CMBS, Short-term Borrowings, and Counterparty Concentration

The following table summarizes certain characteristics of the Company’s secured revolving repurchase agreements secured by CMBS, all of which are considered short-term borrowings, and comprise counterparty concentration risks, at December 31, 2017 (dollars in thousands):

 

 

 

December 31, 2017

 

 

 

Commitment

Amount

 

 

UPB of Collateral

 

 

Carrying Value

of Collateral(1)

 

 

Amounts

Payable under

Repurchase

Agreements(2)

 

 

Net

Counterparty

Exposure(3)

 

 

Percent of

Stockholders'

Equity

 

 

Days to

Extended

Maturity(4)

 

Goldman Sachs Bank

 

$

100,000

 

 

$

39,332

 

 

$

39,213

 

 

$

35,426

 

 

$

3,787

 

 

 

0.3

%

 

$

61

 

Royal Bank of Canada

 

 

100,000

 

 

 

8,418

 

 

 

8,675

 

 

 

7,879

 

 

 

796

 

 

 

0.1

 

 

 

79

 

Subtotal / Weighted Average

 

$

200,000

 

 

$

47,750

 

 

$

47,888

 

 

$

43,305

 

 

$

4,583

 

 

 

 

 

 

 

64

 

Total / Weighted Average - Loans and CMBS

 

$

2,726,942

 

 

$

2,762,214

 

 

$

2,753,549

 

 

$

1,839,319

 

 

$

914,230

 

 

 

 

 

 

 

933

 

 

(1)

Amounts shown in the table include interest receivable of $0.1 million and are net of premium, discount, and unrealized gains of $0.0 million.

(2)

Amounts shown in the table include interest payable of $0.1 million and do not reflect unamortized deferred financing fees of $0.0 million.

(3)

Represents the net carrying value of available-for-sale securities sold under agreements to repurchase, including accrued interest plus any cash or assets on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest.

(4)

Represents the sooner of the next maturity date of the CMBS secured revolving repurchase agreement, or roll over date for the applicable underlying trade confirmation, subsequent to December 31, 2017.

The following table summarizes certain characteristics of the Company’s secured revolving repurchase agreements secured by CMBS, all of which are considered short-term borrowings, and comprise counterparty concentration risks, at December 31, 2016 (dollars in thousands):

 

 

 

December 31, 2016

 

 

 

Commitment

Amount

 

 

UPB of Collateral

 

 

Carrying Value

of Collateral(1)

 

 

Amounts

Payable under

Repurchase

Agreements(2)

 

 

Net

Counterparty

Exposure(3)

 

 

Percent of

Stockholders'

Equity

 

 

Days to

Extended

Maturity

 

Goldman Sachs Bank

 

$

100,000

 

 

$

43,500

 

 

$

41,403

 

 

$

26,832

 

 

$

14,571

 

 

 

1.5

%

 

 

1,502

 

Royal Bank of Canada

 

 

100,000

 

 

 

9,347

 

 

 

9,932

 

 

 

8,856

 

 

 

1,076

 

 

 

0.1

 

 

 

1,507

 

Subtotal

 

$

200,000

 

 

$

52,847

 

 

$

51,335

 

 

$

35,688

 

 

$

15,647

 

 

 

 

 

 

 

3,009

 

Total / Weighted Average - Loans and CMBS

 

$

1,763,750

 

 

$

1,467,764

 

 

$

1,453,276

 

 

$

1,022,587

 

 

$

430,689

 

 

 

 

 

 

 

1,331

 

 

(1)

Amounts shown in the table include interest receivable of $0.03 million and are net of premium, discount, and unrealized gains of $2.7 million.

(2)

Amounts shown in the table include interest payable of $0.03 million and do not reflect unamortized deferred financing fees of $0.01 million.

(3)

Represents the net carrying value of available-for-sale securities sold under agreements to repurchase, including accrued interest plus any cash or assets on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest.
Commercial Mortgage Loans  
Debt Instrument [Line Items]  
Summary of Secured Revolving Repurchase Agreements Secured by Commercial Mortgage Loans, Long - term Borrowings, and Counterparty Concentration

The following table summarizes certain characteristics of the Company’s secured revolving repurchase agreements secured by commercial mortgage loans, all of which are considered long-term borrowings, and comprise counterparty concentration risks, at December 31, 2017 (dollars in thousands):

 

 

 

December 31, 2017

 

 

 

Commitment

Amount

 

 

UPB of Collateral

 

 

Carrying Value

of Collateral(1)

 

 

Amounts

Payable under

Repurchase Agreements(2)

 

 

Net

Counterparty

Exposure(3)

 

 

Percent of

Stockholders'

Equity

 

 

Days to

Extended

Maturity

 

Goldman Sachs Bank

 

$

750,000

 

 

$

890,736

 

 

$

887,667

 

 

$

568,012

 

 

$

319,655

 

 

 

26.6

%

 

 

596

 

Wells Fargo Bank

 

 

750,000

 

 

 

814,886

 

 

 

811,257

 

 

 

518,353

 

 

 

292,904

 

 

 

24.4

 

 

 

1,241

 

Morgan Stanley Bank(4)

 

 

500,000

 

 

 

533,707

 

 

 

531,747

 

 

 

380,592

 

 

 

151,155

 

 

 

12.6

 

 

N/A

 

JP Morgan Chase Bank

 

 

376,942

 

 

 

382,135

 

 

 

382,542

 

 

 

257,484

 

 

 

125,058

 

 

 

10.4

 

 

 

963

 

US Bank

 

 

150,000

 

 

 

93,000

 

 

 

92,448

 

 

 

71,573

 

 

 

20,875

 

 

 

1.7

 

 

 

1,804

 

Subtotal / Weighted Average

 

$

2,526,942

 

 

$

2,714,464

 

 

$

2,705,661

 

 

$

1,796,014

 

 

$

909,647

 

 

 

 

 

 

 

960

 

 

(1)

Amounts shown in the table include interest receivable of $11.6 million and are net of premium, discount and origination fees of $20.4 million.

(2)

Amounts shown in the table include interest payable of $3.4 million and do not reflect unamortized deferred financing fees of $8.7 million.

(3)

Represents the net carrying value of the commercial real estate assets sold under agreements to repurchase, including accrued interest plus any cash or assets on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest.

(4)

The Morgan Stanley Bank credit facility is excluded from the Days to Extended Maturity calculation because it does not have a contractual maturity date.

The following table summarizes certain characteristics of the Company’s secured revolving repurchase agreements secured by commercial mortgage loans, all of which are considered long-term borrowings, and comprise counterparty concentration risks, at December 31, 2016 (dollars in thousands):

 

 

 

December 31, 2016

 

 

 

Commitment

Amount

 

 

UPB of Collateral

 

 

Carrying Value

of Collateral(1)

 

 

Amounts

Payable under

Repurchase

Agreements(2)

 

 

Net

Counterparty

Exposure(3)

 

 

Percent of

Stockholders'

Equity

 

 

Days to

Extended

Maturity

 

Wells Fargo Bank

 

$

500,000

 

 

$

461,618

 

 

$

450,338

 

 

$

320,175

 

 

$

130,163

 

 

 

13.4

%

 

 

1,606

 

Goldman Sachs Bank

 

 

500,000

 

 

 

363,146

 

 

 

361,964

 

 

 

251,366

 

 

 

110,598

 

 

 

11.4

 

 

 

961

 

JP Morgan Chase Bank

 

 

313,750

 

 

 

414,269

 

 

 

414,461

 

 

 

289,206

 

 

 

125,255

 

 

 

12.9

 

 

 

1,328

 

Morgan Stanley Bank(4)

 

 

250,000

 

 

 

175,884

 

 

 

175,178

 

 

 

126,152

 

 

 

49,026

 

 

 

5.1

 

 

N/A

 

Subtotal

 

$

1,563,750

 

 

$

1,414,917

 

 

$

1,401,941

 

 

$

986,899

 

 

$

415,042

 

 

 

 

 

 

 

3,895

 

 

(1)

Amounts shown in the table include interest receivable of $0.004 million and are net of premium, discount and origination fees of $0.02 million.

(2)

Amounts shown in the table include interest payable of $0.001 million and do not reflect unamortized deferred financing fees of $0.01 million.

(3)

Represents the net carrying value of the commercial real estate assets sold under agreements to repurchase, including accrued interest plus any cash or assets on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest.

(4)

The Morgan Stanley Bank credit facility is excluded from the Days to Extended Maturity calculation because it does not have a contractual maturity date.
v3.8.0.1
Schedule of Maturities (Tables)
 12 Months Ended
Dec. 31, 2017
Debt Disclosure [Abstract]  
Schedule of Future Principal Payments

The future principal payments for the five years subsequent to December 31, 2017 and thereafter are as follows (in thousands):

 

 

Senior Secured

Credit Facility

 

 

Repurchase

Agreements

 

 

Notes

Payable

 

2018

 

$

—

 

 

$

959,362

 

 

$

208,103

 

2019

 

 

—

 

 

 

876,439

 

 

 

48,884

 

2020

 

 

—

 

 

 

—

 

 

 

32,500

 

2021

 

 

—

 

 

 

—

 

 

 

—

 

2022

 

 

—

 

 

 

—

 

 

 

—

 

Thereafter

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

—

 

 

$

1,835,801

 

 

$

289,487

 

 
v3.8.0.1
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2017
Fair Value Disclosures [Abstract]  
Summary of Financial Assets and Liabilities Not Carried at Fair Value On Recurring Basis

The following tables provide information about financial assets and liabilities not carried at fair value on a recurring basis in our consolidated balance sheet (dollars in thousands):

 

 

 

December 31, 2017

 

 

 

 

 

 

 

Fair Value

 

 

 

Carrying Value

 

 

Level I

 

 

Level II

 

 

Level III

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans Held for Investment

 

$

3,175,672

 

 

 

—

 

 

 

—

 

 

$

3,202,150

 

Financial Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secured Financing Arrangements

 

 

2,114,990

 

 

 

—

 

 

 

—

 

 

 

2,114,990

 

 

 

 

December 31, 2016

 

 

 

 

 

 

 

Fair Value

 

 

 

Carrying Value

 

 

Level I

 

 

Level II

 

 

Level III

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans Held for Investment

 

$

2,449,990

 

 

 

—

 

 

 

—

 

 

$

2,469,717

 

Financial Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateralized Loan Obligation

 

 

540,780

 

 

 

—

 

 

 

—

 

 

 

540,780

 

Secured Financing Arrangements

 

 

1,121,869

 

 

 

—

 

 

 

—

 

 

 

1,121,869

 

 
v3.8.0.1
Income Taxes (Table)
 12 Months Ended
Dec. 31, 2017
Income Tax Disclosure [Abstract]  
Schedule of Income Tax Treatment for Common Stock Dividend Declared Per Share

The following table details the income tax treatment for the Company’s common and Class A common stock dividends declared as follows (dollars in thousands):

 

 

Year Ended December 31,

 

 

 

2017

 

 

2016

 

 

2015

 

Ordinary dividends

 

$

1.52

 

 

$

1.62

 

 

$

1.91

 

Capital gain (loss) dividends

 

 

0.04

 

 

 

—

 

 

 

—

 

Totals(1)

 

$

1.56

 

 

$

1.62

 

 

$

1.91

 

 

(1)

Dividend per share amounts reflect the impact of the common stock and Class A common stock dividend paid upon the completion of our initial public offering.
v3.8.0.1
Earnings per Share (Tables)
 12 Months Ended
Dec. 31, 2017
Earnings Per Share [Abstract]  
Schedule of Calculation of Basic and Diluted Earnings per Common Share

The following table sets forth the calculation of basic and diluted earnings per common share (common stock and Class A common stock) based on the weighted-average number of shares of common stock and Class A common stock outstanding (in thousands, except share and per share data):

 

 

 

Three Months Ended December 31,

(unaudited)

 

 

Year Ended December 31,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

2015

 

Net Income Attributable to

   Common Stockholders

 

$

24,754

 

 

$

19,155

 

 

$

94,336

 

 

$

69,951

 

 

$

59,340

 

Weighted-Average Common

   Shares Outstanding, Basic and

   Diluted

 

 

60,796,636

 

 

 

48,282,984

 

 

 

54,194,596

 

 

 

41,406,026

 

 

 

32,867,969

 

Per Common Share Amount,

   Basic and Diluted

 

$

0.41

 

 

$

0.40

 

 

$

1.74

 

 

$

1.69

 

 

$

1.81

 

 
v3.8.0.1
Share-based Incentive Plan (Tables)
 12 Months Ended
Dec. 31, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Schedule of Outstanding Shares of Common Stock and Weighted-average Grant Date Fair Value Per Share

The following table details the outstanding shares of common stock and the weighted-average grant date fair value per share

 

 

 

Common Stock

 

 

Weighted-Average

Grant Date Fair Value Per Share

 

Balance as of December 31, 2015

 

 

—

 

 

$

—

 

Granted

 

 

—

 

 

 

—

 

Vested

 

 

—

 

 

 

—

 

Forfeited

 

 

—

 

 

 

—

 

Balance as of December 31, 2016

 

 

—

 

 

 

—

 

Granted

 

 

75,360

 

 

$

19.44

 

Vested

 

 

—

 

 

 

—

 

Forfeited

 

 

—

 

 

 

—

 

Balance as of December 31, 2017

 

 

75,360

 

 

$

19.44

 

 
v3.8.0.1
Concentration of Credit Risk (Tables)
 12 Months Ended
Dec. 31, 2017
Loans And Leases Receivable Disclosure [Line Items]  
Summary of Loan Portfolio by Property/ Loan Category Type

A summary of the loan portfolio by property type as of December 31, 2017 and December 31, 2016 based on current unpaid principal balance (“UPB”) and full loan commitment is as follows (dollars in thousands):

 

 

 

As of December 31, 2017

 

Property Type

 

Loan

Commitment

 

 

Unfunded

Commitment

 

 

% of

Portfolio

 

 

Loan UPB

 

 

% of

Portfolio

 

Office

 

$

836,826

 

 

$

160,450

 

 

 

22.5

%

 

$

676,376

 

 

 

21.1

%

Multifamily

 

 

813,775

 

 

 

75,509

 

 

 

21.8

 

 

 

738,266

 

 

 

23.1

 

Hotel

 

 

693,569

 

 

 

27,980

 

 

 

18.6

 

 

 

665,589

 

 

 

20.8

 

Condominium

 

 

679,779

 

 

 

166,358

 

 

 

18.2

 

 

 

513,421

 

 

 

16.1

 

Mixed Use

 

 

431,500

 

 

 

57,243

 

 

 

11.6

 

 

 

374,257

 

 

 

11.7

 

Retail

 

 

195,012

 

 

 

41,500

 

 

 

5.2

 

 

 

153,512

 

 

 

4.8

 

Industrial

 

 

66,500

 

 

 

—

 

 

 

1.8

 

 

 

66,500

 

 

 

2.1

 

Other

 

 

10,195

 

 

 

—

 

 

 

0.3

 

 

 

10,195

 

 

 

0.3

 

Total

 

$

3,727,156

 

 

$

529,040

 

 

 

100.0

%

 

$

3,198,116

 

 

 

100.0

%

 

(1)

During the year ended December 31, 2017, the Company refined its property type classification related to assets within its Mixed Use, Office, Retail, and Other categories. No other categories were impacted as a result of this refinement during the year ended December 31, 2017.

 

 

 

As of December 31, 2016

 

Property Type

 

Loan

Commitment

 

 

Unfunded

Commitment

 

 

% of

Portfolio

 

 

Loan UPB

 

 

% of

Portfolio

 

Condominium

 

$

821,411

 

 

$

338,222

 

 

 

27.0

%

 

$

486,647

 

 

 

19.7

%

Hotel

 

 

644,459

 

 

 

31,282

 

 

 

21.2

 

 

 

615,238

 

 

 

24.9

 

Office

 

 

538,736

 

 

 

99,953

 

 

 

17.7

 

 

 

438,783

 

 

 

17.8

 

Mixed Use

 

 

527,548

 

 

 

74,100

 

 

 

17.4

 

 

 

453,448

 

 

 

18.4

 

Multifamily

 

 

327,578

 

 

 

11,217

 

 

 

10.8

 

 

 

316,360

 

 

 

12.8

 

Industrial

 

 

131,987

 

 

 

11,468

 

 

 

4.3

 

 

 

120,519

 

 

 

4.9

 

Other

 

 

48,483

 

 

 

8,400

 

 

 

1.6

 

 

 

40,083

 

 

 

1.6

 

Total

 

$

3,040,202

 

 

$

574,642

 

 

 

100.0

%

 

$

2,471,078

 

 

 

100.0

%

 
Summary of Geographic Composition of Loans Held for Investment Based on Current UPB and Loan Commitment

All of the Company’s loans held for investment are secured by properties within the United States. The geographic composition of loans held for investment based on current UPB and full loan commitment is as follows (dollars in thousands):

 

 

 

December 31, 2017

 

Geographic Region

 

Loan

Commitment

 

 

Unfunded

Commitment

 

 

% Loan

Commitment

 

 

Loan UPB

 

 

% Loan

UPB

 

East

 

$

1,600,619

 

 

$

167,447

 

 

 

42.9

%

 

$

1,433,172

 

 

 

44.8

%

South

 

 

1,147,510

 

 

 

278,890

 

 

 

30.8

 

 

 

868,620

 

 

 

27.2

 

West

 

 

674,123

 

 

 

67,746

 

 

 

18.1

 

 

 

606,377

 

 

 

19.0

 

Midwest

 

 

255,904

 

 

 

14,957

 

 

 

6.9

 

 

 

240,947

 

 

 

7.5

 

Various

 

 

49,000

 

 

 

—

 

 

 

1.3

 

 

 

49,000

 

 

 

1.5

 

Total

 

$

3,727,156

 

 

$

529,040

 

 

 

100.0

%

 

$

3,198,116

 

 

 

100.0

%

 

 

 

December 31, 2016

 

Geographic Region

 

Loan

Commitment

 

 

Unfunded

Commitment

 

 

% Loan

Commitment

 

 

Loan UPB

 

 

% Loan

UPB

 

East

 

$

1,330,003

 

 

$

132,951

 

 

 

43.7

%

 

$

1,197,052

 

 

 

48.4

%

West

 

 

867,494

 

 

 

116,057

 

 

 

28.5

 

 

 

751,437

 

 

 

30.4

 

South

 

 

578,340

 

 

 

311,166

 

 

 

19.0

 

 

 

272,692

 

 

 

11.0

 

Midwest

 

 

179,589

 

 

 

3,000

 

 

 

5.9

 

 

 

176,589

 

 

 

7.1

 

Various

 

 

84,776

 

 

 

11,468

 

 

 

2.8

 

 

 

73,308

 

 

 

3.0

 

Total

 

$

3,040,202

 

 

$

574,642

 

 

 

100.0

%

 

$

2,471,078

 

 

 

100.0

%

 
Loan Category  
Loans And Leases Receivable Disclosure [Line Items]  
Summary of Loan Portfolio by Property/ Loan Category Type

A summary of the loan portfolio by category as of December 31, 2017 and December 31, 2016 based on current UPB and full loan commitment is as follows (dollars in thousands):

 

 

 

December 31, 2017

 

Loan Category

 

Loan

Commitment

 

 

Unfunded

Commitment

 

 

% Loan

Commitment

 

 

Loan UPB

 

 

% Loan

UPB

 

Bridge

 

$

1,927,488

 

 

$

176,316

 

 

 

51.7

%

 

$

1,751,172

 

 

 

54.7

%

Moderate Transitional

 

 

723,075

 

 

 

132,483

 

 

 

19.4

 

 

 

590,592

 

 

 

18.5

 

Construction

 

 

609,468

 

 

 

166,358

 

 

 

16.4

 

 

 

443,110

 

 

 

13.9

 

Light Transitional

 

 

467,125

 

 

 

53,883

 

 

 

12.5

 

 

 

413,242

 

 

 

12.9

 

Total

 

$

3,727,156

 

 

$

529,040

 

 

 

100.0

%

 

$

3,198,116

 

 

 

100.0

%

 

 

 

December 31, 2016

 

Loan Category

 

Loan

Commitment

 

 

Unfunded

Commitment

 

 

% Loan

Commitment

 

 

Loan UPB

 

 

% Loan

UPB

 

Bridge

 

$

1,265,715

 

 

$

52,475

 

 

 

41.6

%

 

$

1,213,240

 

 

 

49.0

%

Construction

 

 

853,618

 

 

 

355,878

 

 

 

28.1

 

 

 

503,258

 

 

 

20.4

 

Moderate Transitional

 

 

567,818

 

 

 

104,098

 

 

 

18.7

 

 

 

463,720

 

 

 

18.8

 

Light Transitional

 

 

353,051

 

 

 

62,191

 

 

 

11.6

 

 

 

290,860

 

 

 

11.8

 

Total

 

$

3,040,202

 

 

$

574,642

 

 

 

100.0

%

 

$

2,471,078

 

 

 

100.0

%

 
v3.8.0.1
Summary of Quarterly Results of Operations (unaudited) (Tables)
 12 Months Ended
Dec. 31, 2017
Quarterly Financial Information Disclosure [Abstract]  
Schedule of Quarterly Financial Information

The following is a summary of the unaudited quarterly results of operations for the years ended December 31, 2017 and December 31, 2016 (dollars in thousands except per share data):

 

 

 

March 31

 

 

June 30

 

 

September 30

 

 

December 31

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income and total other revenue

 

$

30,263

 

 

$

32,346

 

 

$

28,253

 

 

$

31,470

 

Net income attributable to common stockholders

 

$

23,475

 

 

$

25,320

 

 

$

20,787

 

 

$

24,754

 

Net income per share of common and Class A common stock:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

0.48

 

 

$

0.52

 

 

$

0.35

 

 

$

0.41

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income and total other revenue

 

$

20,817

 

 

$

23,620

 

 

$

23,497

 

 

$

24,464

 

Net income attributable to common stockholders

 

$

16,249

 

 

$

17,108

 

 

$

17,439

 

 

$

19,155

 

Net income per share of common and Class A common stock:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

0.45

 

 

$

0.42

 

 

$

0.43

 

 

$

0.40

 

 
v3.8.0.1
Summary of Significant Accounting Policies - Additional Information (Details)
 12 Months Ended
Dec. 31, 2017
USD ($)
Loan
Dec. 31, 2016
USD ($)
Loan
Dec. 31, 2015
USD ($)
Significant Accounting Policies [Line Items]      
Threshold period of delinquency 90 days    
Number of loans on non-accrual status | Loan 0 0  
Percentage of senior mortgage loan transferred to third-party 100.00%    
Maximum insured amount of each cash account $ 250,000 $ 250,000  
Miscellaneous fee revenue $ 500,000 500,000 $ 500,000
ASU 2015-03 and ASU 2015-15      
Significant Accounting Policies [Line Items]      
Deferred financing costs reclassified as deduction from related debt liabilities   $ 13,600,000  
v3.8.0.1
Summary of Significant Accounting Policies - Summary of Reconciliation of Cash, Cash Equivalents, and Restricted Cash on Consolidated Balance Sheets to Total Amount shown on Consolidated Statements of Cash Flows (Details) - USD ($)
$ in Thousands
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents [Abstract]        
Cash and Cash Equivalents [1] $ 75,037 $ 103,126    
Restricted Cash [1] 700 849    
Total cash, cash equivalents, and restricted cash shown on the consolidated statements of cash flows $ 75,737 $ 103,975 $ 105,951 $ 11,664
[1] At December 31, 2017, there were no VIE assets or liabilities recorded in the Company’s Total Assets and Total Liabilities. The Company’s consolidated Total Assets and Total Liabilities at December 31, 2016 include VIE assets and liabilities of $743.5 million and $542.8 million, respectively. These assets were available only to satisfy obligations of the VIE, and creditors of the VIE had recourse only to those assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details
v3.8.0.1
Loans Held for Investment - Additional Information (Details)
 12 Months Ended
Dec. 31, 2017
USD ($)
Rating
Loan
Dec. 31, 2016
USD ($)
Rating
Loan
Accounts Notes And Loans Receivable [Line Items]    
Total loan commitment amount $ 3,727,156,000 $ 3,040,202,000
Unfunded loan commitments 529,040,000 574,642,000
Unamortized premium 0 2,900,000
Unaccreted discount $ 2,000,000 $ 12,500,000
Weighted average risk rating | Rating 2.6 2.6
Number of loans on non-accrual status | Loan 0 0
Reserve $ 0 $ 0
Moved From Four Risk Rating Into Three Risk Rating    
Accounts Notes And Loans Receivable [Line Items]    
Number of loans selected for risk rate changes | Loan 2  
Moved From Three Risk Rating Into Four Risk Rating    
Accounts Notes And Loans Receivable [Line Items]    
Number of loans selected for risk rate changes | Loan 6  
Risk Rating Four    
Accounts Notes And Loans Receivable [Line Items]    
Payments received for loans classified with category one risk rating | Loan 2  
Risk Rating Three    
Accounts Notes And Loans Receivable [Line Items]    
Payments received for loans classified with category one risk rating | Loan 1  
Risk Rating Two    
Accounts Notes And Loans Receivable [Line Items]    
Payments received for loans classified with category one risk rating | Loan 3  
Risk Rating One    
Accounts Notes And Loans Receivable [Line Items]    
Payments received for loans classified with category one risk rating | Loan   3
German American Capital Corporation    
Accounts Notes And Loans Receivable [Line Items]    
Number of loans originated or acquired | Loan 22  
Total loan commitment amount $ 1,950,000,000  
Unpaid principal balance 1,610,000,000  
Unfunded loan commitments 331,200,000  
German American Capital Corporation | Non Consolidated Senior Interests    
Accounts Notes And Loans Receivable [Line Items]    
Total loan commitment amount $ 91,500,000  
v3.8.0.1
Loans Held for Investment - Schedule of Loan Investment Portfolio (Details) - USD ($)
$ in Thousands
Dec. 31, 2017
Dec. 31, 2016
Loans And Leases Receivable Disclosure [Line Items]    
Outstanding Principal, before allowance for loan losses $ 3,198,116 $ 2,471,078
Unamortized Premium (Discount), Loan Origination Fees net, before allowance for loan losses (22,444) (21,088)
Carrying Amount, before allowance for loan losses 3,175,672 2,449,990
Outstanding Principal, after allowance for loan losses 3,198,116 2,471,078
Unamortized Premium (Discount), Loan Origination Fees net, after allowance for loan losses (22,444) (21,088)
Carrying Amount, after allowance for loan losses 3,175,672 2,449,990
Senior Loans    
Loans And Leases Receivable Disclosure [Line Items]    
Outstanding Principal, before allowance for loan losses 3,122,670 2,429,632
Unamortized Premium (Discount), Loan Origination Fees net, before allowance for loan losses (22,143) (20,931)
Carrying Amount, before allowance for loan losses 3,100,527 2,408,701
Subordinated and Mezzanine Loans    
Loans And Leases Receivable Disclosure [Line Items]    
Outstanding Principal, before allowance for loan losses 75,446 41,446
Unamortized Premium (Discount), Loan Origination Fees net, before allowance for loan losses (301) (157)
Carrying Amount, before allowance for loan losses $ 75,145 $ 41,289
v3.8.0.1
Loans Held for Investment - Summary of Loan Portfolio Activity (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Loans And Leases Receivable Disclosure [Abstract]      
Balance at December 31, 2016 $ 2,449,990 $ 1,933,398 $ 1,741,933
Loans originated 1,596,531 948,106 535,339
Additional fundings 315,409 328,356 360,538
Amortization of discount and origination fees 19,381 14,227 6,898
Collection of principal (1,202,776) (767,713) (690,366)
Amortization of premium (2,863) (6,384) (20,944)
Balance at December 31, 2017 $ 3,175,672 $ 2,449,990 $ 1,933,398
v3.8.0.1
Loans Held for Investment - Summary of Carrying Values and Results of Internal Risk Rating Review Performed (Details)
$ in Thousands
Dec. 31, 2017
USD ($)
Rating
Dec. 31, 2016
USD ($)
Rating
Dec. 31, 2015
USD ($)
Dec. 31, 2014
USD ($)
Accounts Notes And Loans Receivable [Line Items]        
Carrying Value $ 3,175,672 $ 2,449,990 $ 1,933,398 $ 1,741,933
Weighted Average Risk Rating | Rating 2.6 2.6    
Risk Rating One        
Accounts Notes And Loans Receivable [Line Items]        
Carrying Value   $ 261,261    
Rating 2        
Accounts Notes And Loans Receivable [Line Items]        
Carrying Value $ 1,318,816 745,340    
Rating 3        
Accounts Notes And Loans Receivable [Line Items]        
Carrying Value 1,680,913 1,205,994    
Rating 4        
Accounts Notes And Loans Receivable [Line Items]        
Carrying Value $ 175,943 $ 237,395    
v3.8.0.1
Commercial Mortgage-Backed Securities - Additional Information (Details) - Commercial Mortgage-Backed Securities
 12 Months Ended
Dec. 31, 2017
USD ($)
Investment
Dec. 31, 2016
USD ($)
Investment
Schedule Of Available For Sale Securities [Line Items]    
Number of Investments | Investment 5 5
Net proceeds from sale of securities investment $ 43,800,000  
Net gain on sale of securities 300,000  
Other than temporary impairments on available-for-sale $ 0 $ 0
v3.8.0.1
Commercial Mortgage-Backed Securities - Available-for-Sale Commercial Mortgage-Backed Securities (Details) - USD ($)
$ in Thousands
Dec. 31, 2017
Dec. 31, 2016
Schedule Of Available For Sale Securities [Line Items]    
Estimated Fair Value [1] $ 85,895 $ 61,504
Commercial Mortgage-Backed Securities    
Schedule Of Available For Sale Securities [Line Items]    
Face Amount 85,661 62,927
Unamortized Premium (Discount) 268 (2,673)
Gross Unrealized (Loss) (34)  
Gross Unrealized Gain   1,250
Estimated Fair Value $ 85,895 $ 61,504
[1] At December 31, 2017, there were no VIE assets or liabilities recorded in the Company’s Total Assets and Total Liabilities. The Company’s consolidated Total Assets and Total Liabilities at December 31, 2016 include VIE assets and liabilities of $743.5 million and $542.8 million, respectively. These assets were available only to satisfy obligations of the VIE, and creditors of the VIE had recourse only to those assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details
v3.8.0.1
Commercial Mortgage-Backed Securities - Available-for-Sale Commercial Mortgage-Backed Securities by Contractual Maturity (Details) - USD ($)
$ in Thousands
Dec. 31, 2017
Dec. 31, 2016
Estimated Fair Value    
Total investment in commercial mortgage-backed securities, at fair value [1] $ 85,895 $ 61,504
Commercial Mortgage-Backed Securities    
Amortized Cost    
After one, within five years 36,700 58,962
After five, within ten years 49,229 1,292
Total investment in commercial mortgage-backed securities, at fair value 85,929 60,254
Estimated Fair Value    
After one, within five years 36,872 60,242
After five, within ten years 49,023 1,262
Total investment in commercial mortgage-backed securities, at fair value $ 85,895 $ 61,504
[1] At December 31, 2017, there were no VIE assets or liabilities recorded in the Company’s Total Assets and Total Liabilities. The Company’s consolidated Total Assets and Total Liabilities at December 31, 2016 include VIE assets and liabilities of $743.5 million and $542.8 million, respectively. These assets were available only to satisfy obligations of the VIE, and creditors of the VIE had recourse only to those assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details
v3.8.0.1
Variable Interest Entities and Collateralized Loan Obligation - Additional Information (Details)
$ in Thousands
 12 Months Ended
Aug. 23, 2017
USD ($)
Aug. 16, 2017
USD ($)
Loan
Dec. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
Dec. 31, 2015
USD ($)
Aug. 18, 2017
USD ($)
Loan
Dec. 29, 2014
USD ($)
Dec. 18, 2014
USD ($)
Variable Interest Entities and Collateralized Loan Obligation [Line Items]                
Loans secured, face value     $ 3,198,116          
Issuance costs recorded to interest expense     $ 11,788 $ 9,425 $ 6,500      
Class A Senior Secured Note | CLO Issuer                
Variable Interest Entities and Collateralized Loan Obligation [Line Items]                
Outstanding principal balance   $ 118,000            
Number of first mortgage loan participation interests sold | Loan   2       7    
Unpaid principal balance of mortgage loan   $ 12,800       $ 138,500    
Loss on sale of first mortgage loan participation interests   $ 200            
Cash $ 3,000              
Repayment of Class A Note $ 118,000              
Collateralized Loan Obligation                
Variable Interest Entities and Collateralized Loan Obligation [Line Items]                
Variable interest entity ownership percentage     100.00%          
Unamortized issuance costs     $ 0 2,541        
Collateralized Loan Obligation | Class A Senior Secured Note                
Variable Interest Entities and Collateralized Loan Obligation [Line Items]                
Debt issuance costs, gross               $ 13,200
Issuance costs recorded to interest expense     900          
Unamortized issuance costs     0 2,500        
Interest expense excluding amortization of deferred financing costs     $ 9,300 $ 21,800 $ 35,500      
German American Capital Corporation                
Variable Interest Entities and Collateralized Loan Obligation [Line Items]                
Percentage of interest in loans acquired             75.00%  
Loans secured, face value             $ 2,400,000  
v3.8.0.1
Variable Interest Entities and Collateralized Loan Obligation - Summary of Variable Interest Entities Assets and Liabilities (Details) - Variable Interest Entity, Primary Beneficiary
$ in Thousands
Dec. 31, 2016
USD ($)
ASSETS  
Total Assets $ 743,493
LIABILITIES  
Total Liabilities 542,828
Cash and Cash Equivalents  
ASSETS  
Total Assets 2,133
Accounts Receivable  
ASSETS  
Total Assets 479
Accounts Receivable from Servicer/Trustee  
ASSETS  
Total Assets 23,009
Accrued Interest Receivable  
ASSETS  
Total Assets 5,714
Loans Held for Investment  
ASSETS  
Total Assets 712,158
Accrued Interest Payable  
LIABILITIES  
Total Liabilities 885
Accrued Expenses  
LIABILITIES  
Total Liabilities 32
Collateralized Loan Obligation  
LIABILITIES  
Total Liabilities 540,780
Payable to Affiliates  
LIABILITIES  
Total Liabilities 933
Deferred Revenue  
LIABILITIES  
Total Liabilities $ 198
v3.8.0.1
Variable Interest Entities and Collateralized Loan Obligation - Schedule of Borrowings and Corresponding Collateral (Details)
$ in Thousands
Dec. 31, 2016
USD ($)
Debt Instrument [Line Items]  
Debt, Carrying Value $ 540,780 [1]
Collateralized Loan Obligation  
Debt Instrument [Line Items]  
Debt, Face Value 543,320
Debt, Carrying Value 540,780
Collateral (loans), Outstanding Principal 712,420
Collateral (loans), Carrying Value $ 712,158
[1] At December 31, 2017, there were no VIE assets or liabilities recorded in the Company’s Total Assets and Total Liabilities. The Company’s consolidated Total Assets and Total Liabilities at December 31, 2016 include VIE assets and liabilities of $743.5 million and $542.8 million, respectively. These assets were available only to satisfy obligations of the VIE, and creditors of the VIE had recourse only to those assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details
v3.8.0.1
Secured Revolving Repurchase Agreements, Senior Secured Credit Facility, Notes Payable and Subscription Secured Facility - Additional Information (Details)
 12 Months Ended
Sep. 29, 2017
USD ($)
Aug. 18, 2017
USD ($)
Jul. 21, 2017
USD ($)
Jun. 12, 2017
USD ($)
Jun. 08, 2017
USD ($)
Jan. 06, 2016
USD ($)
Dec. 31, 2017
Loan
Agreement
Dec. 31, 2016
Loan
Agreement
Dec. 27, 2017
USD ($)
Jul. 20, 2017
USD ($)
Jun. 11, 2017
USD ($)
Jun. 07, 2017
USD ($)
Repurchase Agreements                        
Debt Instrument [Line Items]                        
Number of additional repurchase agreements | Agreement             1 2        
Recourse guarantee percentage             100.00% 100.00%        
Repurchase Agreements | CMBS                        
Debt Instrument [Line Items]                        
Number of repurchase agreements | Agreement             2 2        
Repurchase Agreements | Mortgage-backed Securities                        
Debt Instrument [Line Items]                        
Number of repurchase agreements | Agreement             3 3        
Goldman Sachs | Repurchase Agreements                        
Debt Instrument [Line Items]                        
Recourse guarantee percentage               25.00%        
Holdco | Repurchase Agreements                        
Debt Instrument [Line Items]                        
Percentage of recourse loans             25.00%          
Holdco | Repurchase Agreements | CMBS                        
Debt Instrument [Line Items]                        
Recourse guarantee percentage             100.00% 100.00%        
Holdco | Repurchase Agreements | Mortgage-backed Securities                        
Debt Instrument [Line Items]                        
Recourse guarantee percentage             100.00% 100.00%        
Notes Payable                        
Debt Instrument [Line Items]                        
Number of financing agreements | Agreement             7 4        
Number of loans held for investment | Loan             7 4        
Notes Payable | Holdco                        
Debt Instrument [Line Items]                        
Number of recourse loans | Loan             1          
Percentage of recourse loans             25.00%          
Notes Payable | Holdco | BMO Harris Bank                        
Debt Instrument [Line Items]                        
Guaranteed capped rate of outstanding obligations             25.00%          
Subscription Secured Facility                        
Debt Instrument [Line Items]                        
Credit facility termination date             Jul. 31, 2017          
Revolving Credit Facility                        
Debt Instrument [Line Items]                        
Line of credit facility, maximum borrowing capacity           $ 250,000,000            
Credit agreement initiation date             Jan. 06, 2016          
Credit agreement, Description             Borrowing ability was limited to the lesser of $250 million and 66.67% of unfunded commitments from included investors as defined in the agreement. The credit facility term was two years with a one year extension option at a rate of LIBOR plus 1.75%.          
Credit agreement term           2 years            
Debt instrument, basis spread on variable rate           1.75%            
Revolving Credit Facility | Extension Term Option                        
Debt Instrument [Line Items]                        
Credit agreement term           1 year            
Revolving Credit Facility | Morgan Stanley | Repurchase Agreements                        
Debt Instrument [Line Items]                        
Line of credit facility, maximum borrowing capacity     $ 400,000,000           $ 500,000,000 $ 250,000,000    
Line of credit facility, maximum borrowing capacity, subject to customary condition     $ 500,000,000             $ 400,000,000    
Line of credit facility, extended maturity     2020-05                  
Revolving Credit Facility | Goldman Sachs | Repurchase Agreements                        
Debt Instrument [Line Items]                        
Line of credit facility, maximum borrowing capacity       $ 750,000,000             $ 500,000,000  
Line of credit facility, extended maturity       2019-08                
Revolving Credit Facility | Wells Fargo | Repurchase Agreements                        
Debt Instrument [Line Items]                        
Line of credit facility, maximum borrowing capacity         $ 750,000,000             $ 500,000,000
Line of credit facility, extended maturity         2021-05              
JP Morgan | Secured Revolving Repurchase Facility | Repurchase Agreements | Class A Senior Secured Note                        
Debt Instrument [Line Items]                        
Line of credit facility, maximum borrowing capacity   $ 417,300,000                    
Line of credit facility, increase maximum borrowing capacity   $ 103,500,000                    
Senior Secured Credit Facility | Bank of America                        
Debt Instrument [Line Items]                        
Line of credit facility, maximum borrowing capacity $ 250,000,000                      
Line of credit facility, extended maturity 2022-09                      
Credit agreement initiation date             Sep. 29, 2017          
Line of credit facility, maximum borrowing capacity subject to condition $ 500,000,000                      
v3.8.0.1
Summary of Notes Payable, Secured Revolving Repurchase Agreements, Senior Secured Credit Facility, and Subscription Secured Facility (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Debt Instrument [Line Items]    
Index Rate one-month LIBOR  
Repurchase Agreements    
Debt Instrument [Line Items]    
Commitment Amount $ 2,726,942 $ 1,763,750
Maximum Current Availability 891,141 742,221
Balance Outstanding 1,835,801 1,021,529
Collateral (loans), Outstanding Principal 2,762,214 1,467,764
Senior Secured Credit Facility    
Debt Instrument [Line Items]    
Commitment Amount 3,376,158  
Maximum Current Availability 1,250,870  
Balance Outstanding 2,125,288  
Collateral (loans), Outstanding Principal 3,192,866  
Subscription Secured Facility    
Debt Instrument [Line Items]    
Commitment Amount   2,263,116
Maximum Current Availability   989,347
Balance Outstanding   1,132,911
Collateral (loans), Outstanding Principal   1,637,362
Notes Payable    
Debt Instrument [Line Items]    
Commitment Amount 399,216 249,366
Maximum Current Availability 109,729 137,984
Balance Outstanding 289,487 111,382
Collateral (loans), Outstanding Principal $ 430,652 $ 169,598
Bank of the Ozarks | Debt Instrument, Interest Rate at 5.1% | Notes Payable    
Debt Instrument [Line Items]    
Maturity Date   Aug. 23, 2019
Index Rate   1 Month Libor
Weighted Average Spread   4.50%
Interest Rate   5.10%
Commitment Amount   $ 92,400
Maximum Current Availability   72,544
Balance Outstanding   19,856
Collateral (loans), Outstanding Principal   $ 28,366
Bank of the Ozarks | Debt Instrument, Interest Rate at 5.9% | Notes Payable    
Debt Instrument [Line Items]    
Maturity Date Aug. 23, 2019  
Index Rate 1 Month Libor  
Weighted Average Spread 4.50%  
Interest Rate 5.90%  
Commitment Amount $ 92,400  
Maximum Current Availability 43,979  
Balance Outstanding 48,421  
Collateral (loans), Outstanding Principal $ 69,172  
Bank of the Ozarks | Debt Instrument, Interest Rate at 5.4% | Notes Payable    
Debt Instrument [Line Items]    
Maturity Date Aug. 31, 2018  
Index Rate 1 Month Libor  
Weighted Average Spread 4.00%  
Interest Rate 5.40%  
Commitment Amount $ 68,600  
Maximum Current Availability 14,151  
Balance Outstanding 54,449  
Collateral (loans), Outstanding Principal $ 77,784  
Bank of the Ozarks | Debt Instrument, Interest Rate at 6.1% | Notes Payable    
Debt Instrument [Line Items]    
Maturity Date May 22, 2018  
Index Rate 1 Month Libor  
Weighted Average Spread 4.80%  
Interest Rate 6.10%  
Commitment Amount $ 48,750  
Maximum Current Availability 17,479  
Balance Outstanding 31,271  
Collateral (loans), Outstanding Principal $ 48,109  
Deutsche Bank | Debt Instrument, Interest Rate at 4.9% | Notes Payable    
Debt Instrument [Line Items]    
Maturity Date Sep. 25, 2019  
Index Rate 1 Month Libor  
Weighted Average Spread 3.50%  
Interest Rate 4.90%  
Commitment Amount $ 64,779  
Maximum Current Availability 15,895  
Balance Outstanding 48,884  
Collateral (loans), Outstanding Principal $ 81,473  
Deutsche Bank | Debt Instrument, Interest Rate at 4.1% | Notes Payable    
Debt Instrument [Line Items]    
Maturity Date   Sep. 25, 2019
Index Rate   1 Month Libor
Weighted Average Spread   3.50%
Interest Rate   4.10%
Commitment Amount   $ 64,779
Maximum Current Availability   30,207
Balance Outstanding   34,572
Collateral (loans), Outstanding Principal   $ 57,620
Deutsche Bank | Debt Instrument, Interest Rate at 3.9% | Notes Payable    
Debt Instrument [Line Items]    
Maturity Date   Dec. 09, 2018
Index Rate   1 Month Libor
Weighted Average Spread   3.30%
Interest Rate   3.90%
Commitment Amount   $ 49,644
Maximum Current Availability   29,293
Balance Outstanding   20,351
Collateral (loans), Outstanding Principal   $ 31,309
Deutsche Bank | Debt Instrument, Interest Rate at 4.3% | Notes Payable    
Debt Instrument [Line Items]    
Maturity Date   Sep. 29, 2018
Index Rate   1 Month Libor
Weighted Average Spread   3.70%
Interest Rate   4.30%
Commitment Amount   $ 42,543
Maximum Current Availability   5,940
Balance Outstanding   36,603
Collateral (loans), Outstanding Principal   $ 52,303
Deutsche Bank | Debt Instrument, Interest Rate at 4.6% | Notes Payable    
Debt Instrument [Line Items]    
Maturity Date Jun. 29, 2018  
Index Rate 1 Month Libor  
Weighted Average Spread 3.30%  
Interest Rate 4.60%  
Commitment Amount $ 49,644  
Maximum Current Availability 18,224  
Balance Outstanding 31,420  
Collateral (loans), Outstanding Principal $ 48,339  
Deutsche Bank | Debt Instrument, Interest Rate at 5.0% | Notes Payable    
Debt Instrument [Line Items]    
Maturity Date Dec. 09, 2018  
Index Rate 1 Month Libor  
Weighted Average Spread 3.70%  
Interest Rate 5.00%  
Commitment Amount $ 42,543  
Maximum Current Availability 1  
Balance Outstanding 42,542  
Collateral (loans), Outstanding Principal $ 60,775  
BMO Harris Bank | Debt Instrument, Interest Rate at 4.0% | Notes Payable    
Debt Instrument [Line Items]    
Maturity Date Apr. 09, 2020  
Index Rate 1 Month Libor  
Weighted Average Spread 2.70%  
Interest Rate 4.00%  
Commitment Amount $ 32,500  
Balance Outstanding 32,500  
Collateral (loans), Outstanding Principal $ 45,000  
Goldman Sachs | Debt Instrument, Interest Rate at 3.6% | Repurchase Agreements    
Debt Instrument [Line Items]    
Maturity Date Aug. 19, 2018  
Index Rate 1 Month Libor  
Weighted Average Spread 2.20%  
Interest Rate 3.60%  
Commitment Amount $ 750,000  
Maximum Current Availability 183,253  
Balance Outstanding 566,747  
Collateral (loans), Outstanding Principal $ 890,736  
Goldman Sachs | Debt Instrument, Interest Rate at 2.9% | Repurchase Agreements    
Debt Instrument [Line Items]    
Maturity Date   Aug. 19, 2017
Index Rate   1 Month Libor
Weighted Average Spread   2.20%
Interest Rate   2.90%
Commitment Amount   $ 500,000
Maximum Current Availability   249,110
Balance Outstanding   250,890
Collateral (loans), Outstanding Principal   $ 363,146
Goldman Sachs | Debt Instrument, Interest Rate at 2.6% | CMBS | Repurchase Agreements    
Debt Instrument [Line Items]    
Maturity Date   Aug. 19, 2017
Index Rate   3 Month Libor
Weighted Average Spread   2.00%
Interest Rate   2.60%
Commitment Amount   $ 100,000
Maximum Current Availability   73,195
Balance Outstanding   26,805
Collateral (loans), Outstanding Principal   $ 43,500
Goldman Sachs | Debt Instrument, Interest Rate at 1.6% | CMBS | Repurchase Agreements    
Debt Instrument [Line Items]    
Maturity Date Mar. 02, 2018  
Index Rate 3 Month Libor  
Weighted Average Spread 0.10%  
Interest Rate 1.60%  
Commitment Amount $ 100,000  
Maximum Current Availability 64,615  
Balance Outstanding 35,385  
Collateral (loans), Outstanding Principal $ 39,332  
Wells Fargo | Debt Instrument, Interest Rate at 3.6% | Repurchase Agreements    
Debt Instrument [Line Items]    
Maturity Date May 25, 2019  
Index Rate 1 Month Libor  
Weighted Average Spread 2.10%  
Interest Rate 3.60%  
Commitment Amount $ 750,000  
Maximum Current Availability 232,462  
Balance Outstanding 517,538  
Collateral (loans), Outstanding Principal $ 814,886  
Wells Fargo | Debt Instrument, Interest Rate at 3.0% | Repurchase Agreements    
Debt Instrument [Line Items]    
Maturity Date   May 25, 2019
Index Rate   1 Month Libor
Weighted Average Spread   2.20%
Interest Rate   3.00%
Commitment Amount   $ 500,000
Maximum Current Availability   179,729
Balance Outstanding   320,271
Collateral (loans), Outstanding Principal   $ 461,618
JP Morgan | Debt Instrument, Interest Rate at 3.4% | Repurchase Agreements    
Debt Instrument [Line Items]    
Maturity Date   Aug. 20, 2018
Index Rate   1 Month Libor
Weighted Average Spread   2.70%
Interest Rate   3.40%
Commitment Amount   $ 313,750
Maximum Current Availability   25,001
Balance Outstanding   288,749
Collateral (loans), Outstanding Principal   $ 414,269
JP Morgan | Debt Instrument, Interest Rate at 4.0% | Repurchase Agreements    
Debt Instrument [Line Items]    
Maturity Date Aug. 20, 2018  
Index Rate 1 Month Libor  
Weighted Average Spread 2.50%  
Interest Rate 4.00%  
Commitment Amount $ 376,942  
Maximum Current Availability 120,014  
Balance Outstanding 256,928  
Collateral (loans), Outstanding Principal $ 382,135  
Morgan Stanley | Debt Instrument, Interest Rate at 3.9% | Repurchase Agreements    
Debt Instrument [Line Items]    
Maturity Date May 04, 2019  
Index Rate 1 Month Libor  
Weighted Average Spread 2.40%  
Interest Rate 3.90%  
Commitment Amount $ 500,000  
Maximum Current Availability 120,002  
Balance Outstanding 379,998  
Collateral (loans), Outstanding Principal $ 533,707  
Morgan Stanley | Debt Instrument, Interest Rate at 3.2% | Repurchase Agreements    
Debt Instrument [Line Items]    
Maturity Date   May 03, 2019
Index Rate   1 Month Libor
Weighted Average Spread   2.50%
Interest Rate   3.20%
Commitment Amount   $ 250,000
Maximum Current Availability   124,036
Balance Outstanding   125,964
Collateral (loans), Outstanding Principal   $ 175,884
US Bank | Debt Instrument, Interest Rate at 3.6% | Repurchase Agreements    
Debt Instrument [Line Items]    
Maturity Date Dec. 09, 2019  
Index Rate 1 Month Libor  
Weighted Average Spread 2.00%  
Interest Rate 3.60%  
Commitment Amount $ 150,000  
Maximum Current Availability 78,600  
Balance Outstanding 71,400  
Collateral (loans), Outstanding Principal $ 93,000  
Royal Bank of Canada | Debt Instrument, Interest Rate at 2.6% | CMBS | Repurchase Agreements    
Debt Instrument [Line Items]    
Maturity Date Mar. 20, 2018  
Index Rate 3 Month Libor  
Weighted Average Spread 1.00%  
Interest Rate 2.60%  
Commitment Amount $ 100,000  
Maximum Current Availability 92,195  
Balance Outstanding 7,805  
Collateral (loans), Outstanding Principal $ 8,418  
Royal Bank of Canada | Debt Instrument, Interest Rate at 1.6% | CMBS | Repurchase Agreements    
Debt Instrument [Line Items]    
Maturity Date   Feb. 09, 2021
Index Rate   3 Month Libor
Weighted Average Spread   1.00%
Interest Rate   1.60%
Commitment Amount   $ 100,000
Maximum Current Availability   91,150
Balance Outstanding   8,850
Collateral (loans), Outstanding Principal   $ 9,347
Bank of America | Senior Secured Credit Facility    
Debt Instrument [Line Items]    
Maturity Date Sep. 29, 2020  
Index Rate 1 Month Libor  
Commitment Amount $ 250,000  
Maximum Current Availability $ 250,000  
Lloyds Bank | Subscription Secured Facility    
Debt Instrument [Line Items]    
Maturity Date   Jan. 06, 2018
Index Rate   1 Month Libor
Weighted Average Spread   1.80%
Interest Rate   2.50%
Commitment Amount   $ 250,000
Maximum Current Availability   $ 109,142
v3.8.0.1
Summary of Notes Payable, Secured Revolving Repurchase Agreements, Senior Secured Credit Facility, and Subscription Secured Facility (Parenthetical) (Details)
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Secured Revolving Repurchase Agreements, Senior Secured Credit Facility and Note Payable    
Debt Instrument [Line Items]    
Recourse guarantee percentage 25.00%  
Repurchase Agreements    
Debt Instrument [Line Items]    
Recourse guarantee percentage 100.00% 100.00%
Repurchase Agreements | Goldman Sachs    
Debt Instrument [Line Items]    
Recourse guarantee percentage   25.00%
v3.8.0.1
Summary of Secured Revolving Repurchase Agreements Secured by Commercial Mortgage Loans, Long - term Borrowings, and Counterparty Concentration (Details) - Commercial Mortgage Loans - Long-term Borrowings - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Repurchase Agreement Counterparty [Line Items]    
Commitment Amount $ 2,526,942 $ 1,563,750
UPB of Collateral 2,714,464 1,414,917
Carrying Value of Collateral 2,705,661 1,401,941
Amounts Payable under Repurchase Agreements 1,796,014 986,899
Net Counterparty Exposure $ 909,647 $ 415,042
Days to Extended Maturity 960 days 3895 days
Goldman Sachs Bank    
Repurchase Agreement Counterparty [Line Items]    
Commitment Amount $ 750,000 $ 500,000
UPB of Collateral 890,736 363,146
Carrying Value of Collateral 887,667 361,964
Amounts Payable under Repurchase Agreements 568,012 251,366
Net Counterparty Exposure $ 319,655 $ 110,598
Percent of Stockholders' Equity 26.60% 11.40%
Days to Extended Maturity 596 days 961 days
Wells Fargo Bank    
Repurchase Agreement Counterparty [Line Items]    
Commitment Amount $ 750,000 $ 500,000
UPB of Collateral 814,886 461,618
Carrying Value of Collateral 811,257 450,338
Amounts Payable under Repurchase Agreements 518,353 320,175
Net Counterparty Exposure $ 292,904 $ 130,163
Percent of Stockholders' Equity 24.40% 13.40%
Days to Extended Maturity 1241 days 1606 days
Morgan Stanley Bank    
Repurchase Agreement Counterparty [Line Items]    
Commitment Amount $ 500,000 $ 250,000
UPB of Collateral 533,707 175,884
Carrying Value of Collateral 531,747 175,178
Amounts Payable under Repurchase Agreements 380,592 126,152
Net Counterparty Exposure $ 151,155 $ 49,026
Percent of Stockholders' Equity 12.60% 5.10%
JP Morgan Chase Bank    
Repurchase Agreement Counterparty [Line Items]    
Commitment Amount $ 376,942 $ 313,750
UPB of Collateral 382,135 414,269
Carrying Value of Collateral 382,542 414,461
Amounts Payable under Repurchase Agreements 257,484 289,206
Net Counterparty Exposure $ 125,058 $ 125,255
Percent of Stockholders' Equity 10.40% 12.90%
Days to Extended Maturity 963 days 1328 days
US Bank    
Repurchase Agreement Counterparty [Line Items]    
Commitment Amount $ 150,000  
UPB of Collateral 93,000  
Carrying Value of Collateral 92,448  
Amounts Payable under Repurchase Agreements 71,573  
Net Counterparty Exposure $ 20,875  
Percent of Stockholders' Equity 1.70%  
Days to Extended Maturity 1804 days  
v3.8.0.1
Summary of Secured Revolving Repurchase Agreements Secured by Commercial Mortgage Loans, Long - term Borrowings, and Counterparty Concentration (Parenthetical) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Repurchase Agreement Counterparty [Line Items]    
Interest receivable [1] $ 16,861 $ 14,023
Accrued Interest Payable [1] 5,385 2,907
Commercial Mortgage Loans | Long-term Borrowings    
Repurchase Agreement Counterparty [Line Items]    
Interest receivable 11,600 4
Premium, discount and origination fees 20,400 20
Accrued Interest Payable 3,400 1
Unamortized deferred financing fees $ 8,700 $ 10
[1] At December 31, 2017, there were no VIE assets or liabilities recorded in the Company’s Total Assets and Total Liabilities. The Company’s consolidated Total Assets and Total Liabilities at December 31, 2016 include VIE assets and liabilities of $743.5 million and $542.8 million, respectively. These assets were available only to satisfy obligations of the VIE, and creditors of the VIE had recourse only to those assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details
v3.8.0.1
Summary of Secured Revolving Repurchase Agreements Secured by CMBS, Short-term Borrowings, and Counterparty Concentration (Details) - Short-term Debt - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Repurchase Agreement Counterparty [Line Items]    
Commitment Amount $ 2,726,942 $ 1,763,750
UPB of Collateral 2,762,214 1,467,764
Carrying Value of Collateral 2,753,549 1,453,276
Amounts Payable under Repurchase Agreements 1,839,319 1,022,587
Net Counterparty Exposure $ 914,230 $ 430,689
Days to Extended Maturity 933 days 1331 days
CMBS    
Repurchase Agreement Counterparty [Line Items]    
Commitment Amount $ 200,000 $ 200,000
UPB of Collateral 47,750 52,847
Carrying Value of Collateral 47,888 51,335
Amounts Payable under Repurchase Agreements 43,305 35,688
Net Counterparty Exposure $ 4,583 $ 15,647
Days to Extended Maturity 65 days 3009 days
Goldman Sachs | CMBS    
Repurchase Agreement Counterparty [Line Items]    
Commitment Amount $ 100,000 $ 100,000
UPB of Collateral 39,332 43,500
Carrying Value of Collateral 39,213 41,403
Amounts Payable under Repurchase Agreements 35,426 26,832
Net Counterparty Exposure $ 3,787 $ 14,571
Percent of Stockholders' Equity 0.30% 1.50%
Days to Extended Maturity 62 days 1502 days
Royal Bank of Canada | CMBS    
Repurchase Agreement Counterparty [Line Items]    
Commitment Amount $ 100,000 $ 100,000
UPB of Collateral 8,418 9,347
Carrying Value of Collateral 8,675 9,932
Amounts Payable under Repurchase Agreements 7,879 8,856
Net Counterparty Exposure $ 796 $ 1,076
Percent of Stockholders' Equity 0.10% 0.10%
Days to Extended Maturity 79 days 1507 days
v3.8.0.1
Summary of Secured Revolving Repurchase Agreements Secured by CMBS, Short-term Borrowings, and Counterparty Concentration (Parenthetical) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Repurchase Agreement Counterparty [Line Items]    
Accrued Interest Receivable [1] $ 16,861 $ 14,023
Accrued Interest Payable [1] 5,385 2,907
Short-term Debt    
Repurchase Agreement Counterparty [Line Items]    
Accrued Interest Receivable 100 30
Premium, discount and origination fees 0 2,700
Accrued Interest Payable 100 30
Unamortized deferred financing fees $ 0 $ 10
[1] At December 31, 2017, there were no VIE assets or liabilities recorded in the Company’s Total Assets and Total Liabilities. The Company’s consolidated Total Assets and Total Liabilities at December 31, 2016 include VIE assets and liabilities of $743.5 million and $542.8 million, respectively. These assets were available only to satisfy obligations of the VIE, and creditors of the VIE had recourse only to those assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details
v3.8.0.1
Schedule of Maturities - Schedule of Future Principal Payments (Details)
$ in Thousands
Dec. 31, 2017
USD ($)
Repurchase Agreements  
Debt Instrument [Line Items]  
2018 $ 959,362
2019 876,439
Total 1,835,801
Notes Payable  
Debt Instrument [Line Items]  
2018 208,103
2019 48,884
2020 32,500
Total $ 289,487
v3.8.0.1
Fair Value Measurements - Additional Information (Details) - USD ($)
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Fair Value Disclosures [Abstract]    
Money market funds $ 37,500,000  
Threshold period of delinquency 90 days  
Market spread one-month LIBOR  
Transfers of financial assets or liabilities with in fair value hierarchy $ 0  
Estimated fair value of loans held for investment $ 3,200,000,000 $ 2,500,000,000
Average gross spread percentage 4.80% 5.10%
Weighted average maturity period 3 years 7 months 6 days 3 years
v3.8.0.1
Fair Value Measurements - Summary of Financial Assets and Liabilities Not Carried at Fair Value On Recurring Basis (Details) - USD ($)
$ in Thousands
Dec. 31, 2017
Dec. 31, 2016
Carrying Value | Loans Held for Investment    
Financial Assets    
Financial Assets, Nonrecurring $ 3,175,672 $ 2,449,990
Carrying Value | Collateralized Loan Obligation    
Financial Liabilities    
Financial Liabilities, Nonrecurring   540,780
Carrying Value | Secured Financing Arrangements    
Financial Liabilities    
Financial Liabilities, Nonrecurring 2,114,990 1,121,869
Estimate of Fair Value Measurement | Level III | Loans Held for Investment    
Financial Assets    
Financial Assets, Nonrecurring 3,202,150 2,469,717
Estimate of Fair Value Measurement | Level III | Collateralized Loan Obligation    
Financial Liabilities    
Financial Liabilities, Nonrecurring   540,780
Estimate of Fair Value Measurement | Secured Financing Arrangements | Level III    
Financial Liabilities    
Financial Liabilities, Nonrecurring $ 2,114,990 $ 1,121,869
v3.8.0.1
Income Taxes - Additional Information (Details) - USD ($)
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Income Tax [Line Items]      
Deferred tax asset $ 0 $ 0 $ 0
Deferred tax liabilities 0 0 $ 0
Reserve for uncertain income tax positions 0 0  
Interest for underpayment of income taxes 0 0  
Penalties for underpayment of income taxes $ 0 $ 0  
Effective income tax rate 0.20% 0.00% 2.73%
TRS      
Income Tax [Line Items]      
Equity interest percentage by parent 100.00% 100.00%  
Deferred tax asset $ 0 $ 0  
Deferred tax liabilities 0 0  
Current portion of income tax expense $ 100,000 $ 0 $ 1,600,000
v3.8.0.1
Income Taxes - Schedule of Income Tax Treatment for Common Stock Dividend Declared Per Share (Details) - $ / shares
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Income Tax [Line Items]      
Common stock dividends declared per share $ 1.56 $ 1.62 $ 1.91
Class A Common Stock      
Income Tax [Line Items]      
Ordinary dividends 1.52 1.62 1.91
Capital gain (loss) dividends 0.04    
Common stock dividends declared per share $ 1.56 $ 1.62 $ 1.91
v3.8.0.1
Related Party Transactions - Additional Information (Details) - USD ($)
 12 Months Ended
Jul. 25, 2017
Dec. 15, 2014
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Related Party Transaction [Line Items]          
Management fees, incentive management fees, and collateral management fees payable [1]     $ 5,227,000 $ 3,955,000  
Termination fee, description     A termination fee will be payable to the Manager upon termination of the Management Agreement by the Company absent a cause event. The termination fee would also be payable to the Manager upon termination of the Management Agreement by the Manager if the Company materially breaches the Management Agreement. The termination fee is equal to three times the sum of (x) the average annual base management fee and (y) the average annual incentive compensation earned by the Manager, in each case during the 24-month period immediately preceding the most recently completed calendar quarter prior to the date of termination or, if such termination occurs prior to July 25, 2019, and such termination fee is payable, the base management fees and the incentive compensation will be annualized for the period from July 25, 2017 to July 25, 2019 based on such fees actually received by the Manager during such period    
Collateralized Loan Obligation          
Related Party Transaction [Line Items]          
Aggregate par amount of loans       712,420,000  
Pre-IPO Management Agreement          
Related Party Transaction [Line Items]          
Description of management and incentive management fee calculation     For the year ended December 31, 2017, the management fee and incentive management fee calculated under the pre-IPO Management Agreement was from January 1, 2017 through July 24, 2017, or 204 days.    
Management and incentive management fee calculation period   204 days      
Percentage of annual base management fee   1.25%      
Incentive management fee, description     Manager was entitled to an incentive management fee each calendar quarter in arrears in an amount, not less than zero, equal to the product of (i) 16% and (ii) the positive sum, if any, remaining after (A) Core Earnings of the Company for such calendar quarter were reduced by (B) the product of (1) the Company’s stockholders’ equity as of the end of such calendar quarter, and (2) 7% per annum; provided, however, that no incentive management fee was payable with respect to any calendar quarter unless Core Earnings for the 12 most recently completed calendar quarters was greater than zero.    
Incentive management fee percentage of Core Earnings less seven percent of stockholders equity     16.00%    
Percentage multiplied by stockholders equity included in incentive management fee     7.00%    
Pre-IPO Management Agreement | Collateralized Loan Obligation          
Related Party Transaction [Line Items]          
Percentage of collateral management fee   0.075%      
Aggregate par amount of loans     $ 0 712,400,000  
Management fees, incentive management fees and collateral management fees incurred to Manager     $ 10,000,000 13,400,000 $ 10,200,000
Post-IPO Management Agreement          
Related Party Transaction [Line Items]          
Description of management and incentive management fee calculation     For the year ended December 31, 2017, the management fee and incentive management fee calculated under the Management Agreement was from July 25, 2017 through December 31, 2017, or 161 days.    
Management and incentive management fee calculation period     161 days    
Percentage of annual base management fee 1.50%        
Incentive management fee, description     The Manager is entitled to incentive compensation which is calculated and payable in cash with respect to each calendar quarter following the completion of the Company’s initial public offering (or part thereof that the Management Agreement is in effect) in arrears in an amount, not less than zero, equal to the difference between: (1) the product of (a) 20% and (b) the difference between (i) the Company’s Core Earnings for the most recent 12-month period (or such lesser number of completed calendar quarters, if applicable), including the calendar quarter (or part thereof) for which the calculation of incentive compensation is being made (the “applicable period”), and (ii) the product of (A) the Company’s Equity in the most recent 12-month period (or such lesser number of completed calendar quarters, if applicable), including the applicable period, and (B) 7% per annum; and (2) the sum of any incentive compensation paid to the Manager with respect to the first three calendar quarters of the most recent 12-month period (or such lesser number of completed calendar quarters preceding the applicable period, if applicable). No incentive compensation is payable to the Manager with respect to any calendar quarter unless Core Earnings for the 12 most recently completed calendar quarters (or such lesser number of completed calendar quarters following the completion of the Company’s initial public offering) is greater than zero    
Incentive management fee percentage of Core Earnings less seven percent of stockholders equity 20.00%        
Percentage multiplied by stockholders equity included in incentive management fee 7.00%        
Percentage of quarterly base management fee 0.375%        
Proceeds from Issuance of Common Stock     $ 1,000,000,000    
Amount incurred and reimbursable     1,000,000 300,000 0
Post-IPO Management Agreement | Minimum          
Related Party Transaction [Line Items]          
Management fee payable per annum $ 250,000        
Management fee payable per quarter $ 62,500        
Post-IPO Management Agreement | Collateralized Loan Obligation          
Related Party Transaction [Line Items]          
Management fees, incentive management fees and collateral management fees incurred to Manager     8,600,000    
Pre-IPO and Post-IPO Management Agreement          
Related Party Transaction [Line Items]          
Management fees, incentive management fees, and collateral management fees payable     5,200,000 $ 2,900,000 $ 3,400,000
Pre-IPO and Post-IPO Management Agreement | Collateralized Loan Obligation          
Related Party Transaction [Line Items]          
Management fees, incentive management fees and collateral management fees paid to Manager     $ 16,400,000    
[1] At December 31, 2017, there were no VIE assets or liabilities recorded in the Company’s Total Assets and Total Liabilities. The Company’s consolidated Total Assets and Total Liabilities at December 31, 2016 include VIE assets and liabilities of $743.5 million and $542.8 million, respectively. These assets were available only to satisfy obligations of the VIE, and creditors of the VIE had recourse only to those assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details
v3.8.0.1
Earnings per Share - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jul. 03, 2017
Dec. 31, 2017
Earnings Per Share [Abstract]    
Dividends declared   $ 30
Undistributed net income attributable to common stockholders   $ 10
Dividend payable declared date Jul. 03, 2017 Jul. 03, 2017
Dividend payable date Jul. 25, 2017 Jul. 25, 2017
v3.8.0.1
Earnings per Share - Schedule of Calculation of Basic and Diluted Earnings per Common Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Earnings Per Share [Abstract]                      
Net Income Attributable to Common Stockholders $ 24,754 $ 20,787 $ 25,320 $ 23,475 $ 19,155 $ 17,439 $ 17,108 $ 16,249 $ 94,336 $ 69,951 $ 59,340
Weighted-Average Common Shares Outstanding, Basic and Diluted 60,796,636       48,282,984       54,194,596 41,406,026 32,867,969
Per Common Share Amount, Basic and Diluted $ 0.41 $ 0.35 $ 0.52 $ 0.48 $ 0.40 $ 0.43 $ 0.42 $ 0.45 $ 1.74 $ 1.69 $ 1.81
v3.8.0.1
Stockholders' Equity - Additional Information (Details) - USD ($)
$ / shares in Units, $ in Thousands
 2 Months Ended 3 Months Ended 12 Months Ended
Jan. 25, 2018
Dec. 19, 2017
Aug. 22, 2017
Jul. 25, 2017
Jul. 03, 2017
Dec. 23, 2016
Feb. 23, 2018
Dec. 31, 2017
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Aug. 17, 2017
Jul. 28, 2017
Jul. 19, 2017
Class Of Stock [Line Items]                            
Proceeds from initial public offering       $ 199,400                    
Payment of underwriting discounts       13,200                    
Estimated offering expenses payable       $ 7,400                    
Unfunded commitments related to contractual deferred purchase price obligations                         $ 2,000  
Dividend payable declared date         Jul. 03, 2017       Jul. 03, 2017          
Dividend payable date         Jul. 25, 2017       Jul. 25, 2017          
Unfunded capital commitments                   $ 181,000        
Common stock, authorized shares               300,000,000 300,000,000 95,500,000       300,000,000
Common stock, par value               $ 0.001 $ 0.001 $ 0.001       $ 0.001
Preferred stock, authorized shares               100,000,000 100,000,000 125       100,000,000
Preferred stock, par value               $ 0.001 $ 0.001 $ 0.001       $ 0.001
Common stock, shares issued               59,440,112 59,440,112 47,251,165        
Common stock, shares outstanding               59,440,112 59,440,112 47,251,165        
Unpaid dividends   $ 23,100           $ 23,068 [1] $ 23,068 [1] $ 18,346 [1] $ 24,601      
Dividends           $ 18,300     85,000 66,900        
Other comprehensive (loss) income                 $ (1,284) 1,250        
Subsequent Events                            
Class Of Stock [Line Items]                            
Stock repurchased during period, shares             276,730              
Average price of repurchased shares             $ 18.79              
Stock repurchased during period, value             $ 5,200              
Goldman Sachs & Co. LLC                            
Class Of Stock [Line Items]                            
Number of common shares issued               35,000,000 35,000,000          
Description on purchase plan agreement                 Pursuant to which Goldman Sachs & Co. LLC, as our agent, will buy in the open market up to $35.0 million in shares of our common stock in the aggregate during the period beginning on or about August 21, 2017 and ending 12 months thereafter or, if sooner, the date on which all the capital committed to the 10b5-1 Purchase Plan has been exhausted.          
Stock repurchased during period, shares               386,038 720,783          
Average price of repurchased shares               $ 19.51 $ 19.55          
Stock repurchased during period, value               $ 7,500 $ 14,100          
Stock repurchase program, remaining repurchase amount               $ 20,900 20,900          
Class A Common Stock                            
Class Of Stock [Line Items]                            
Number of common shares issued         230,815                  
Proceeds from Issuance of Common Stock                 $ 365 $ 4,547 $ 19,382      
Common stock, authorized shares               2,500,000 2,500,000 2,500,000       2,500,000
Common stock, par value               $ 0.001 $ 0.001 $ 0.001       $ 0.001
Common stock, shares issued               1,178,618 1,178,618 1,194,863        
Common stock, shares outstanding               1,178,618 1,178,618 1,194,863        
Dividend declared per share   $ 0.38                        
Dividend paid per share                 $ 1.52 $ 1.62 $ 1.91      
Common Stock and Class A Common Stock                            
Class Of Stock [Line Items]                            
Dividend payable declared date           Dec. 23, 2016                
Dividend payable date   Jan. 25, 2018                        
Common stock, shares issued               60,618,730 60,618,730 48,446,028        
Common stock, shares outstanding               60,618,730 60,618,730 48,446,028        
Dividend declared per share           $ 0.4677                
Dividend record date   Dec. 29, 2017                        
Common Stock and Class A Common Stock | First Installment                            
Class Of Stock [Line Items]                            
Dividend payable date           Jan. 25, 2017                
Common Stock and Class A Common Stock | Second Installment                            
Class Of Stock [Line Items]                            
Dividend payable date           Feb. 01, 2017                
Series A Preferred Stock                            
Class Of Stock [Line Items]                            
Dividend rate                 12.50%          
Preferred stock, liquidation preference per annum               $ 1 $ 1          
Common Stock                            
Class Of Stock [Line Items]                            
Number of common shares issued         9,224,268       12,642,166 9,950,270 6,666,788      
Dividend declared per share   $ 0.38                        
Common Stock | Class A Common Stock | Subsequent Events                            
Class Of Stock [Line Items]                            
Dividend payable date Jan. 25, 2018                          
Dividend paid $ 23,100                          
Dividend paid per share $ 0.38                          
Dividend record date Dec. 29, 2017                          
Initial Public Offering                            
Class Of Stock [Line Items]                            
Payment of underwriting discounts     $ 800                      
Exercise of stock option to purchase additional shares                       1,650,000    
Shares of common stock purchased by underwriters     650,000                      
Proceeds from Issuance of Common Stock     $ 12,200                      
Initial Public Offering | Common Stock                            
Class Of Stock [Line Items]                            
Number of common shares issued       11,000,000                    
Common stock price per share       $ 20.00                    
[1] At December 31, 2017, there were no VIE assets or liabilities recorded in the Company’s Total Assets and Total Liabilities. The Company’s consolidated Total Assets and Total Liabilities at December 31, 2016 include VIE assets and liabilities of $743.5 million and $542.8 million, respectively. These assets were available only to satisfy obligations of the VIE, and creditors of the VIE had recourse only to those assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details
v3.8.0.1
Share-based Incentive Plan - Additional Information (Details) - 2017 Equity Incentive Plan - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 29, 2017
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Number of shares authorized under the plan 4,600,463  
Percentage of issued and outstanding ordinary shares authorized for issuance under plan 7.50%  
Number of shares awarded for grant 0  
Share vesting installment period 3 years  
Total unrecognized compensation cost relating to unvested share-based compensation arrangements $ 1.4  
Unrecognized compensation cost, recognition period 3 years 6 months  
Closing price of common stock   $ 19.05
Common Stock    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Shares of common stock outstanding 75,360  
2018 | Common Stock    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Shares of common stock expected to vest 18,837  
2019 | Common Stock    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Shares of common stock expected to vest 18,839  
2020 | Common Stock    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Shares of common stock expected to vest 18,842  
2021 | Common Stock    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Shares of common stock expected to vest 18,842  
v3.8.0.1
Share-based Incentive Plan - Schedule of Outstanding Shares of Common Stock and Weighted-average Grant Date Fair Value Per Share (Details) - 2017 Equity Incentive Plan - Common Stock
 12 Months Ended
Dec. 31, 2017
$ / shares
shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Common Stock, Granted | shares 75,360
Common Stock, Ending Balance | shares 75,360
Weighted-Average Grant Date Fair Value Per Share, Granted | $ / shares $ 19.44
Weighted-Average Grant Date Fair Value Per Share, Ending Balance | $ / shares $ 19.44
v3.8.0.1
Commitments and Contingencies - Additional Information (Detail) - USD ($)
$ in Millions
Dec. 31, 2017
Dec. 31, 2016
Commitments And Contingencies Disclosure [Abstract]    
Unfunded commitments related to loans held for investment $ 529.0 $ 574.6
v3.8.0.1
Concentration of Credit Risk - Summary of Loan Portfolio by Property Type (Details) - USD ($)
$ in Thousands
Dec. 31, 2017
Dec. 31, 2016
Loans And Leases Receivable Disclosure [Line Items]    
Loan Commitment $ 3,727,156 $ 3,040,202
Unfunded Commitment $ 529,040 $ 574,642
% of Portfolio 100.00% 100.00%
Loan UPB $ 3,198,116 $ 2,471,078
% of Portfolio 100.00% 100.00%
Office    
Loans And Leases Receivable Disclosure [Line Items]    
Loan Commitment $ 836,826 $ 538,736
Unfunded Commitment $ 160,450 $ 99,953
% of Portfolio 22.50% 17.70%
Loan UPB $ 676,376 $ 438,783
% of Portfolio 21.10% 17.80%
Multifamily    
Loans And Leases Receivable Disclosure [Line Items]    
Loan Commitment $ 813,775 $ 327,578
Unfunded Commitment $ 75,509 $ 11,217
% of Portfolio 21.80% 10.80%
Loan UPB $ 738,266 $ 316,360
% of Portfolio 23.10% 12.80%
Hotel    
Loans And Leases Receivable Disclosure [Line Items]    
Loan Commitment $ 693,569 $ 644,459
Unfunded Commitment $ 27,980 $ 31,282
% of Portfolio 18.60% 21.20%
Loan UPB $ 665,589 $ 615,238
% of Portfolio 20.80% 24.90%
Condominium    
Loans And Leases Receivable Disclosure [Line Items]    
Loan Commitment $ 679,779 $ 821,411
Unfunded Commitment $ 166,358 $ 338,222
% of Portfolio 18.20% 27.00%
Loan UPB $ 513,421 $ 486,647
% of Portfolio 16.10% 19.70%
Mixed Use    
Loans And Leases Receivable Disclosure [Line Items]    
Loan Commitment $ 431,500 $ 527,548
Unfunded Commitment $ 57,243 $ 74,100
% of Portfolio 11.60% 17.40%
Loan UPB $ 374,257 $ 453,448
% of Portfolio 11.70% 18.40%
Retail    
Loans And Leases Receivable Disclosure [Line Items]    
Loan Commitment $ 195,012  
Unfunded Commitment $ 41,500  
% of Portfolio 5.20%  
Loan UPB $ 153,512  
% of Portfolio 4.80%  
Industrial    
Loans And Leases Receivable Disclosure [Line Items]    
Loan Commitment $ 66,500 $ 131,987
Unfunded Commitment   $ 11,468
% of Portfolio 1.80% 4.30%
Loan UPB $ 66,500 $ 120,519
% of Portfolio 2.10% 4.90%
Other    
Loans And Leases Receivable Disclosure [Line Items]    
Loan Commitment $ 10,195 $ 48,483
Unfunded Commitment   $ 8,400
% of Portfolio 0.30% 1.60%
Loan UPB $ 10,195 $ 40,083
% of Portfolio 0.30% 1.60%
v3.8.0.1
Concentration of Credit Risk - Summary of Geographic Composition of Loans Held for Investment Based on Current UPB and Loan Commitment (Details) - USD ($)
$ in Thousands
Dec. 31, 2017
Dec. 31, 2016
Loans And Leases Receivable Disclosure [Line Items]    
Loan Commitment $ 3,727,156 $ 3,040,202
Unfunded Commitment $ 529,040 $ 574,642
% Loan Commitment 100.00% 100.00%
Loan UPB $ 3,198,116 $ 2,471,078
% Loan UPB 100.00% 100.00%
East    
Loans And Leases Receivable Disclosure [Line Items]    
Loan Commitment $ 1,600,619 $ 1,330,003
Unfunded Commitment $ 167,447 $ 132,951
% Loan Commitment 42.90% 43.70%
Loan UPB $ 1,433,172 $ 1,197,052
% Loan UPB 44.80% 48.40%
South    
Loans And Leases Receivable Disclosure [Line Items]    
Loan Commitment $ 1,147,510 $ 578,340
Unfunded Commitment $ 278,890 $ 311,166
% Loan Commitment 30.80% 19.00%
Loan UPB $ 868,620 $ 272,692
% Loan UPB 27.20% 11.00%
West    
Loans And Leases Receivable Disclosure [Line Items]    
Loan Commitment $ 674,123 $ 867,494
Unfunded Commitment $ 67,746 $ 116,057
% Loan Commitment 18.10% 28.50%
Loan UPB $ 606,377 $ 751,437
% Loan UPB 19.00% 30.40%
Midwest    
Loans And Leases Receivable Disclosure [Line Items]    
Loan Commitment $ 255,904 $ 179,589
Unfunded Commitment $ 14,957 $ 3,000
% Loan Commitment 6.90% 5.90%
Loan UPB $ 240,947 $ 176,589
% Loan UPB 7.50% 7.10%
Various    
Loans And Leases Receivable Disclosure [Line Items]    
Loan Commitment $ 49,000 $ 84,776
Unfunded Commitment   $ 11,468
% Loan Commitment 1.30% 2.80%
Loan UPB $ 49,000 $ 73,308
% Loan UPB 1.50% 3.00%
v3.8.0.1
Concentration of Credit Risk - Summary of Loan Portfolio by Loan Category Type (Details) - USD ($)
$ in Thousands
Dec. 31, 2017
Dec. 31, 2016
Loans And Leases Receivable Disclosure [Line Items]    
Loan Commitment $ 3,727,156 $ 3,040,202
Unfunded Commitment $ 529,040 $ 574,642
% Loan Commitment 100.00% 100.00%
Loan UPB $ 3,198,116 $ 2,471,078
% Loan UPB 100.00% 100.00%
Bridge    
Loans And Leases Receivable Disclosure [Line Items]    
Loan Commitment $ 1,927,488 $ 1,265,715
Unfunded Commitment $ 176,316 $ 52,475
% Loan Commitment 51.70% 41.60%
Loan UPB $ 1,751,172 $ 1,213,240
% Loan UPB 54.70% 49.00%
Moderate Transitional    
Loans And Leases Receivable Disclosure [Line Items]    
Loan Commitment $ 723,075 $ 567,818
Unfunded Commitment $ 132,483 $ 104,098
% Loan Commitment 19.40% 18.70%
Loan UPB $ 590,592 $ 463,720
% Loan UPB 18.50% 18.80%
Construction    
Loans And Leases Receivable Disclosure [Line Items]    
Loan Commitment $ 609,468 $ 853,618
Unfunded Commitment $ 166,358 $ 355,878
% Loan Commitment 16.40% 28.10%
Loan UPB $ 443,110 $ 503,258
% Loan UPB 13.90% 20.40%
Light Transitional    
Loans And Leases Receivable Disclosure [Line Items]    
Loan Commitment $ 467,125 $ 353,051
Unfunded Commitment $ 53,883 $ 62,191
% Loan Commitment 12.50% 11.60%
Loan UPB $ 413,242 $ 290,860
% Loan UPB 12.90% 11.80%
v3.8.0.1
Concentration of Credit Risk - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Risks And Uncertainties [Abstract]    
Capitalized interest $ 0.0 $ 5.5
v3.8.0.1
Summary of Quarterly Results of Operations (unaudited) - Schedule of Quarterly Financial Information (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]                      
Net interest income and total other revenue $ 31,470 $ 28,253 $ 32,346 $ 30,263 $ 24,464 $ 23,497 $ 23,620 $ 20,817      
Net income attributable to common stockholders $ 24,754 $ 20,787 $ 25,320 $ 23,475 $ 19,155 $ 17,439 $ 17,108 $ 16,249 $ 94,336 $ 69,951 $ 59,340
Net income per share of common and Class A common stock:                      
Basic and diluted $ 0.41 $ 0.35 $ 0.52 $ 0.48 $ 0.40 $ 0.43 $ 0.42 $ 0.45 $ 1.74 $ 1.69 $ 1.81
v3.8.0.1
Subsequent Events - Additional Information (Details)
$ / shares in Units, $ in Thousands
 2 Months Ended 12 Months Ended
Feb. 14, 2018
USD ($)
MortgageAsset
$ / shares
Jan. 25, 2018
USD ($)
$ / shares
Jul. 03, 2017
Feb. 26, 2018
USD ($)
Loan
Feb. 23, 2018
USD ($)
$ / shares
shares
Dec. 31, 2017
$ / shares
Dec. 31, 2016
$ / shares
Dec. 31, 2015
$ / shares
Feb. 28, 2018
USD ($)
Jul. 19, 2017
$ / shares
Subsequent Event [Line Items]                    
Dividend payable date     Jul. 25, 2017     Jul. 25, 2017        
Preferred stock, par value | $ / shares           $ 0.001 $ 0.001     $ 0.001
Loans held for investment, aggregate unpaid principal balance percentage           29.00%        
Goldman Sachs Bank USA, Morgan Stanley Bank, N.A. and Wells Fargo Bank                    
Subsequent Event [Line Items]                    
Proceeds from issuance of securities used to repay borrowings $ 670,200                  
Subsequent Events                    
Subsequent Event [Line Items]                    
Aggregate commitment amount       $ 367,200            
Loans held for investment, aggregate unpaid principal balance                 $ 932,400  
Common stock, shares repurchased | shares         276,730          
Stock repurchased during period, value         $ 5,200          
Average price of repurchased shares | $ / shares         $ 18.79          
Number of first mortgage loans originated | Loan       4            
Subsequent event date       Feb. 26, 2018            
Subsequent Events | Two Mortgage Loans                    
Subsequent Event [Line Items]                    
Aggregate commitment amount       $ 206,000            
Number of first mortgage loans originated | Loan       2            
Subsequent Events | Whole Loan                    
Subsequent Event [Line Items]                    
Number of mortgage assets purchased | MortgageAsset 1                  
Subsequent Events | Pari Passu Participations                    
Subsequent Event [Line Items]                    
Number of mortgage assets purchased | MortgageAsset 25                  
Subsequent Events | TPG Real Estate Finance 2018-FL1 Issuer, Ltd.                    
Subsequent Event [Line Items]                    
Preferred stock, par value | $ / shares $ 0.001                  
Preferred stock, liquidation preference per share | $ / shares $ 1,000                  
Subsequent Events | Investment Grade-Rated Notes | TPG Real Estate Finance 2018-FL1 Issuer, Ltd.                    
Subsequent Event [Line Items]                    
Aggregate commitment amount $ 820,500                  
Subsequent Events | Investment Grade-Rated Notes | TPG RE Finance Trust 2018-FL1 Co-Issuer, LLC                    
Subsequent Event [Line Items]                    
Aggregate commitment amount $ 745,900                  
Class A Common Stock                    
Subsequent Event [Line Items]                    
Dividend cash paid per share | $ / shares           $ 1.52 $ 1.62 $ 1.91    
Common Stock | Class A Common Stock | Subsequent Events                    
Subsequent Event [Line Items]                    
Dividend payable date   Jan. 25, 2018                
Dividend record date   Dec. 29, 2017                
Dividend cash paid per share | $ / shares   $ 0.38                
Dividend, cash paid   $ 23,100                
v3.8.0.1
Schedule IV - Mortgage Loans on Real Estate (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2017
USD ($)
Mortgage Loans on Real Estate [Line Items]  
Market spread one-month LIBOR
Prior Liens $ 135,500
Unpaid Principal Balance 3,198,116
Carrying Amount of Loans $ 3,175,672
Senior Loans in Excess of 3% of the Carrying Amount of Total Loans | NC | Borrower A | Hotel  
Mortgage Loans on Real Estate [Line Items]  
Description /Location Hotel / NC
Market spread LIBOR
Interest Payment Rates 3.75%
Extended Maturity Date 2022
Periodic Payment Terms I/O
Unpaid Principal Balance $ 165,535
Carrying Amount of Loans $ 163,925
Senior Loans in Excess of 3% of the Carrying Amount of Total Loans | PA | Borrower B | Office  
Mortgage Loans on Real Estate [Line Items]  
Description /Location Office / PA
Market spread LIBOR
Interest Payment Rates 4.25%
Extended Maturity Date 2022
Periodic Payment Terms I/O
Unpaid Principal Balance $ 147,441
Carrying Amount of Loans $ 145,854
Senior Loans in Excess of 3% of the Carrying Amount of Total Loans | TN | Borrower C | Mixed Use  
Mortgage Loans on Real Estate [Line Items]  
Description /Location Mixed Use / TN
Market spread LIBOR
Interest Payment Rates 4.10%
Extended Maturity Date 2021
Periodic Payment Terms I/O
Unpaid Principal Balance $ 142,000
Carrying Amount of Loans $ 140,639
Senior Loans in Excess of 3% of the Carrying Amount of Total Loans | GA | Borrower D | Retail  
Mortgage Loans on Real Estate [Line Items]  
Description /Location Retail / GA
Market spread LIBOR
Interest Payment Rates 4.50%
Extended Maturity Date 2022
Periodic Payment Terms I/O
Unpaid Principal Balance $ 122,500
Carrying Amount of Loans $ 121,430
Senior Loans in Excess of 3% of the Carrying Amount of Total Loans | NJ | Borrower E | Multifamily  
Mortgage Loans on Real Estate [Line Items]  
Description /Location Multifamily / NJ
Market spread LIBOR
Interest Payment Rates 4.75%
Extended Maturity Date 2022
Periodic Payment Terms I/O
Unpaid Principal Balance $ 107,220
Carrying Amount of Loans $ 106,320
Senior Loans in Excess of 3% of the Carrying Amount of Total Loans | TX | Borrower F | Multifamily  
Mortgage Loans on Real Estate [Line Items]  
Description /Location Multifamily / TX
Market spread LIBOR
Interest Payment Rates 4.40%
Extended Maturity Date 2022
Periodic Payment Terms I/O
Unpaid Principal Balance $ 99,102
Carrying Amount of Loans 98,352
Senior Loans Less than 3% of the Carrying Amount of Total Loans  
Mortgage Loans on Real Estate [Line Items]  
Unpaid Principal Balance 3,122,670
Carrying Amount of Loans $ 3,100,527
Senior Loans Less than 3% of the Carrying Amount of Total Loans | Senior Loan | Hotel  
Mortgage Loans on Real Estate [Line Items]  
Description /Location Hotel / Diversified
Market spread Floating:LIBOR
Periodic Payment Terms IO
Unpaid Principal Balance $ 483,554
Carrying Amount of Loans $ 480,992
Senior Loans Less than 3% of the Carrying Amount of Total Loans | Senior Loan | Office  
Mortgage Loans on Real Estate [Line Items]  
Description /Location Office / Diversified
Market spread Floating:LIBOR
Periodic Payment Terms IO
Unpaid Principal Balance $ 528,934
Carrying Amount of Loans $ 524,803
Senior Loans Less than 3% of the Carrying Amount of Total Loans | Senior Loan | Mixed Use  
Mortgage Loans on Real Estate [Line Items]  
Description /Location Mixed-Use / Diversified
Market spread Floating:LIBOR
Periodic Payment Terms IO
Unpaid Principal Balance $ 232,257
Carrying Amount of Loans $ 230,853
Senior Loans Less than 3% of the Carrying Amount of Total Loans | Senior Loan | Retail  
Mortgage Loans on Real Estate [Line Items]  
Description /Location Retail / Diversified
Market spread Floating:LIBOR
Periodic Payment Terms IO & P&I
Unpaid Principal Balance $ 31,012
Carrying Amount of Loans $ 30,673
Senior Loans Less than 3% of the Carrying Amount of Total Loans | Senior Loan | Multifamily  
Mortgage Loans on Real Estate [Line Items]  
Description /Location Multifamily / Diversified
Market spread Floating:LIBOR
Periodic Payment Terms IO
Unpaid Principal Balance $ 472,998
Carrying Amount of Loans $ 468,932
Senior Loans Less than 3% of the Carrying Amount of Total Loans | Senior Loan | Condominium  
Mortgage Loans on Real Estate [Line Items]  
Description /Location Condominium /Diversified
Market spread Floating:LIBOR
Periodic Payment Terms IO
Unpaid Principal Balance $ 513,422
Carrying Amount of Loans $ 511,650
Senior Loans Less than 3% of the Carrying Amount of Total Loans | Senior Loan | Industrial  
Mortgage Loans on Real Estate [Line Items]  
Description /Location Industrial / Diversified
Market spread Floating:LIBOR
Periodic Payment Terms IO
Unpaid Principal Balance $ 66,500
Carrying Amount of Loans $ 66,185
Senior Loans Less than 3% of the Carrying Amount of Total Loans | Minimum | Senior Loan  
Mortgage Loans on Real Estate [Line Items]  
Fixed Interest Payment Rates 5.60%
Senior Loans Less than 3% of the Carrying Amount of Total Loans | Minimum | Senior Loan | Hotel  
Mortgage Loans on Real Estate [Line Items]  
Interest Payment Rates 2.80%
Extended Maturity Date 2018
Senior Loans Less than 3% of the Carrying Amount of Total Loans | Minimum | Senior Loan | Office  
Mortgage Loans on Real Estate [Line Items]  
Interest Payment Rates 2.30%
Extended Maturity Date 2019
Senior Loans Less than 3% of the Carrying Amount of Total Loans | Minimum | Senior Loan | Mixed Use  
Mortgage Loans on Real Estate [Line Items]  
Interest Payment Rates 3.30%
Extended Maturity Date 2020
Senior Loans Less than 3% of the Carrying Amount of Total Loans | Minimum | Senior Loan | Retail  
Mortgage Loans on Real Estate [Line Items]  
Interest Payment Rates 4.60%
Extended Maturity Date 2020
Senior Loans Less than 3% of the Carrying Amount of Total Loans | Minimum | Senior Loan | Multifamily  
Mortgage Loans on Real Estate [Line Items]  
Interest Payment Rates 2.80%
Extended Maturity Date 2021
Senior Loans Less than 3% of the Carrying Amount of Total Loans | Minimum | Senior Loan | Condominium  
Mortgage Loans on Real Estate [Line Items]  
Interest Payment Rates 4.70%
Extended Maturity Date 2019
Senior Loans Less than 3% of the Carrying Amount of Total Loans | Minimum | Senior Loan | Industrial  
Mortgage Loans on Real Estate [Line Items]  
Interest Payment Rates 4.00%
Extended Maturity Date 2021
Senior Loans Less than 3% of the Carrying Amount of Total Loans | Maximum [Member] | Senior Loan  
Mortgage Loans on Real Estate [Line Items]  
Fixed Interest Payment Rates 5.60%
Senior Loans Less than 3% of the Carrying Amount of Total Loans | Maximum [Member] | Senior Loan | Hotel  
Mortgage Loans on Real Estate [Line Items]  
Interest Payment Rates 6.30%
Extended Maturity Date 2023
Senior Loans Less than 3% of the Carrying Amount of Total Loans | Maximum [Member] | Senior Loan | Office  
Mortgage Loans on Real Estate [Line Items]  
Interest Payment Rates 5.10%
Extended Maturity Date 2023
Senior Loans Less than 3% of the Carrying Amount of Total Loans | Maximum [Member] | Senior Loan | Mixed Use  
Mortgage Loans on Real Estate [Line Items]  
Interest Payment Rates 3.90%
Extended Maturity Date 2022
Senior Loans Less than 3% of the Carrying Amount of Total Loans | Maximum [Member] | Senior Loan | Retail  
Mortgage Loans on Real Estate [Line Items]  
Interest Payment Rates 4.60%
Extended Maturity Date 2021
Senior Loans Less than 3% of the Carrying Amount of Total Loans | Maximum [Member] | Senior Loan | Multifamily  
Mortgage Loans on Real Estate [Line Items]  
Interest Payment Rates 5.30%
Extended Maturity Date 2024
Senior Loans Less than 3% of the Carrying Amount of Total Loans | Maximum [Member] | Senior Loan | Condominium  
Mortgage Loans on Real Estate [Line Items]  
Interest Payment Rates 8.50%
Extended Maturity Date 2021
Senior Loans Less than 3% of the Carrying Amount of Total Loans | Maximum [Member] | Senior Loan | Industrial  
Mortgage Loans on Real Estate [Line Items]  
Interest Payment Rates 5.00%
Extended Maturity Date 2021
Senior Loans Less than 3% of the Carrying Amount of Total Loans | NC | Senior Loan | Land  
Mortgage Loans on Real Estate [Line Items]  
Description /Location Land / NC
Market spread Floating:LIBOR
Periodic Payment Terms IO
Unpaid Principal Balance $ 10,195
Carrying Amount of Loans $ 9,919
Senior Loans Less than 3% of the Carrying Amount of Total Loans | NC | Minimum | Senior Loan | Land  
Mortgage Loans on Real Estate [Line Items]  
Interest Payment Rates 4.30%
Extended Maturity Date 2018
Senior Loans Less than 3% of the Carrying Amount of Total Loans | NC | Maximum [Member] | Senior Loan | Land  
Mortgage Loans on Real Estate [Line Items]  
Interest Payment Rates 4.30%
Extended Maturity Date 2018
Subordinate Loans Less than 3% of the Carrying Amount of Total Loans | Multifamily and Hotel  
Mortgage Loans on Real Estate [Line Items]  
Description /Location Multifamily / Diversified / Hotel
Market spread Floating:LIBOR
Periodic Payment Terms IO
Prior Liens $ 135,500
Unpaid Principal Balance 75,446
Carrying Amount of Loans $ 75,145
Subordinate Loans Less than 3% of the Carrying Amount of Total Loans | Subordinate Loan | Multifamily  
Mortgage Loans on Real Estate [Line Items]  
Description /Location Multifamily / Diversified
Market spread Floating:LIBOR
Periodic Payment Terms IO
Prior Liens $ 98,000
Unpaid Principal Balance 58,946
Carrying Amount of Loans $ 58,771
Subordinate Loans Less than 3% of the Carrying Amount of Total Loans | Minimum | Multifamily and Hotel  
Mortgage Loans on Real Estate [Line Items]  
Interest Payment Rates 7.80%
Extended Maturity Date 2020
Subordinate Loans Less than 3% of the Carrying Amount of Total Loans | Minimum | Subordinate Loan | Multifamily  
Mortgage Loans on Real Estate [Line Items]  
Interest Payment Rates 7.80%
Extended Maturity Date 2020
Subordinate Loans Less than 3% of the Carrying Amount of Total Loans | Maximum [Member] | Multifamily and Hotel  
Mortgage Loans on Real Estate [Line Items]  
Interest Payment Rates 14.00%
Extended Maturity Date 2022
Subordinate Loans Less than 3% of the Carrying Amount of Total Loans | Maximum [Member] | Subordinate Loan | Multifamily  
Mortgage Loans on Real Estate [Line Items]  
Interest Payment Rates 13.40%
Extended Maturity Date 2021
Subordinate Loans Less than 3% of the Carrying Amount of Total Loans | GA | Subordinate Loan | Hotel  
Mortgage Loans on Real Estate [Line Items]  
Description /Location Hotel / GA
Market spread Floating:LIBOR
Periodic Payment Terms IO
Prior Liens $ 37,500
Unpaid Principal Balance 16,500
Carrying Amount of Loans $ 16,374
Subordinate Loans Less than 3% of the Carrying Amount of Total Loans | GA | Minimum | Subordinate Loan | Hotel  
Mortgage Loans on Real Estate [Line Items]  
Interest Payment Rates 14.00%
Extended Maturity Date 2022
Subordinate Loans Less than 3% of the Carrying Amount of Total Loans | GA | Maximum [Member] | Subordinate Loan | Hotel  
Mortgage Loans on Real Estate [Line Items]  
Interest Payment Rates 14.00%
Extended Maturity Date 2022
v3.8.0.1
Schedule IV - Mortgage Loans on Real Estate (Parenthetical) (Details)
$ in Billions
Dec. 31, 2017
USD ($)
Mortgage Loans On Real Estate [Abstract]  
Aggregate tax basis of loans $ 3.2
v3.8.0.1
Schedule IV - Reconciliation of Activity Regarding Mortgage Loans on Real Estate (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Mortgage Loans On Real Estate [Abstract]      
Balance at December 31, 2016 $ 2,449,990 $ 1,933,398 $ 1,741,933
Additions during period:      
Loans originated 1,596,531 948,106 535,339
Additional fundings 315,409 328,356 360,538
Amortization of deferred fees and expenses 19,381 14,227 6,898
Deductions during period:      
Collection of principal (1,202,776) (767,713) (690,366)
Amortization of premium (2,863) (6,384) (20,944)
Balance at December 31, 2017 $ 3,175,672 $ 2,449,990 $ 1,933,398