TPG RE FINANCE TRUST, INC., 10-K filed on 2/18/2025
Annual Report
v3.25.0.1
Cover - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Feb. 14, 2025
Jun. 28, 2024
Document Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2024    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 001-38156    
Entity Registrant Name TPG RE Finance Trust, Inc.    
Entity Incorporation, State or Country Code MD    
Entity Tax Identification Number 36-4796967    
Entity Address, Address Line One 888 Seventh Avenue    
Entity Address, Address Line Two 35th Floor    
Entity Address, City or Town New York    
Entity Address, State or Province NY    
Entity Address, Postal Zip Code 10106    
City Area Code 212    
Local Phone Number 601-4700    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 632.6
Entity Common Stock, Shares Outstanding   81,003,693  
Documents Incorporated by Reference
DOCUMENTS INCORPORATED BY REFERENCE
Part III of this Annual Report on Form 10-K incorporates information by reference from the Registrant’s definitive proxy statement with respect to its 2025 annual meeting of stockholders to be filed with the Securities and Exchange Commission within 120 days after the end of the Registrant’s fiscal year.
   
Entity Central Index Key 0001630472    
Document Fiscal Year Focus 2024    
Document Fiscal Period Focus FY    
Amendment Flag false    
Common Stock, par value $0.001 per share      
Document Information [Line Items]      
Title of 12(b) Security Common Stock, par value $0.001 per share    
Trading Symbol TRTX    
Security Exchange Name NYSE    
6.25% Series C Cumulative Redeemable Preferred Stock      
Document Information [Line Items]      
Title of 12(b) Security 6.25% Series C Cumulative Redeemable Preferred Stock, par value $0.001 per share    
Trading Symbol TRTX PRC    
Security Exchange Name NYSE    
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Audit Information
12 Months Ended
Dec. 31, 2024
Audit Information [Abstract]  
Auditor Firm ID 34
Auditor Name Deloitte & Touche LLP
Auditor Location Dallas, Texas
v3.25.0.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Assets    
Cash and cash equivalents [1] $ 190,160 $ 206,376
Restricted cash [1] 323 642
Accounts receivable [1] 10 40
Collateralized loan obligation proceeds held at trustee [1] 0 247,229
Accounts receivable from servicer/trustee [1] 369 66,468
Accrued interest and fees receivable [1] 27,267 32,195
Loans held for investment [1] 3,278,588 3,476,776
Allowance for credit losses [1] (61,558) (67,092)
Loans held for investment, net [1] 3,217,030 3,409,684
Real estate owned, net [1] 256,404 174,057
Other assets [1] 39,866 77,621
Total assets [1] 3,731,429 4,214,312
Liabilities    
Accrued interest payable [1] 6,655 10,225
Accrued expenses and other liabilities [1],[2] 15,077 14,587
Secured financing agreements, net [1] 670,727 820,824
Payable to affiliates [1] 5,111 4,913
Deferred revenue [1] 1,744 1,281
Dividends payable [1] 19,978 19,162
Total liabilities [1] 2,617,388 3,089,527
Commitments and contingencies - see Note 14 [1]
Stockholders' equity    
Common stock ($0.001 par value per share; 302,500,000 and 302,500,000 shares authorized, respectively; 81,003,693 and 77,868,565 shares issued and outstanding, respectively) [1] 81 77
Additional paid-in-capital [1] 1,731,174 1,724,967
Accumulated deficit [1] (617,222) (600,267)
Total stockholders' equity [1] 1,114,041 1,124,785
Total liabilities and stockholders' equity [1] 3,731,429 4,214,312
Series A Preferred Stock    
Stockholders' equity    
Preferred stock [1] 0 0
Series C Preferred Stock    
Stockholders' equity    
Preferred stock [1] 8 8
Collateralized loan obligations    
Liabilities    
Collateralized loan obligations, net [1] 1,681,660 1,915,174
Asset-specific financing arrangements    
Liabilities    
Collateralized loan obligations, net [1] 185,741 272,810
Mortgage loan payable    
Liabilities    
Collateralized loan obligations, net [1] $ 30,695 $ 30,551
[1] The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2024 include assets and liabilities of variable interest entities (“VIEs”) of $2.1 billion and $1.7 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2023 include assets and liabilities of VIEs of $2.6 billion and $1.9 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details.
[2] Includes $2.4 million and $2.7 million of reserve for expected losses for unfunded loan commitments as of December 31, 2024 and December 31, 2023, respectively.
v3.25.0.1
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Loans pledged as collateral [1] $ 3,217,030 $ 3,409,684
Common stock, par value (in USD per share) $ 0.001 $ 0.001
Common stock, authorized (in shares) 302,500,000 302,500,000
Common stock, issued (in shares) 81,003,693 77,868,565
Common stock, shares outstanding (in shares) 81,003,693 77,868,565
Total assets [1] $ 3,731,429 $ 4,214,312
Total liabilities [1] 2,617,388 3,089,527
Expected loss reserve for unfunded loan commitments 2,415 2,679
Variable Interest Entity, Primary Beneficiary    
Total assets 2,120,953 2,601,084
Total liabilities $ 1,696,469 $ 1,927,556
Series A Preferred Stock    
Preferred stock, par value (in USD per share) $ 0.001 $ 0.001
Preferred stock, authorized (in shares) 100,000,000 100,000,000
Preferred stock, shares issued (in shares) 125 125
Preferred stock, outstanding (in shares) 125 125
Preferred stock, aggregate liquidation preference $ 125 $ 125
Series C Preferred Stock    
Preferred stock, par value (in USD per share) $ 0.001 $ 0.001
Preferred stock, authorized (in shares) 8,050,000 8,050,000
Preferred stock, shares issued (in shares) 8,050,000 8,050,000
Preferred stock, outstanding (in shares) 8,050,000 8,050,000
Preferred stock, aggregate liquidation preference $ 201,250 $ 201,250
Asset pledged as collateral    
Loans pledged as collateral $ 1,014,852 $ 1,070,629
[1] The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2024 include assets and liabilities of variable interest entities (“VIEs”) of $2.1 billion and $1.7 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2023 include assets and liabilities of VIEs of $2.6 billion and $1.9 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details.
v3.25.0.1
Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Interest income and interest expense      
Interest income $ 307,146 $ 362,550 $ 302,860
Interest expense (198,854) (273,862) (160,755)
Net interest income 108,292 88,688 142,105
Other revenue      
Other income, net 14,123 19,875 2,849
Revenue from real estate owned operations 30,700 7,829 0
Total other revenue 44,823 27,704 2,849
Other expenses      
Professional fees 5,778 6,695 4,735
General and administrative 4,264 3,845 4,399
Stock compensation expense 6,387 8,029 5,052
Servicing and asset management fees 1,930 1,352 1,975
Management fee 20,249 22,426 23,455
Incentive management fee 0 0 5,183
Expenses from real estate owned operations 35,626 7,532 0
Total other expenses 74,234 49,879 44,799
Gain on sale of real estate owned, net 0 7,028 13,291
Credit loss expense, net (4,147) (189,912) (172,982)
Income (loss) before income taxes 74,734 (116,371) (59,536)
Income tax expense, net (399) (259) (530)
Net income (loss) 74,335 (116,630) (60,066)
Preferred stock dividends and participating securities' share in earnings (14,669) (14,275) (13,578)
Net income (loss) attributable to common stockholders $ 59,666 $ (130,905) $ (73,644)
Earnings per share      
Earnings (loss) per common share, basic (in USD per share) $ 0.75 $ (1.69) $ (0.95)
Earnings (loss) per common share, diluted (in USD per share) $ 0.75 $ (1.69) $ (0.95)
Weighted average number of common shares outstanding      
Basic (in shares) 79,801,990 77,575,788 77,296,524
Diluted (in shares) 79,888,044 77,575,788 77,296,524
Other comprehensive income (loss)      
Net income (loss) $ 74,335 $ (116,630) $ (60,066)
Comprehensive net income (loss) $ 74,335 $ (116,630) $ (60,066)
v3.25.0.1
Consolidated Statements of Changes in Equity - USD ($)
$ in Thousands
Total
Preferred Stock
Series A Preferred Stock
Preferred Stock
Series C Preferred Stock
Common Stock
Additional paid-in-capital
Accumulated deficit
Beginning Balance (in shares) at Dec. 31, 2021   125 8,050,000 77,183,892    
Beginning Balance at Dec. 31, 2021 $ 1,464,706 $ 0 $ 8 $ 77 $ 1,711,886 $ (247,265)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Issuance of common stock, net (in shares)       226,390    
Amortization of stock compensation expense 5,052       5,052  
Net income (loss) (60,066)         (60,066)
Dividends on preferred stock (12,592)         (12,592)
Dividends on common stock (75,104)         (75,104)
Ending Balance (in shares) at Dec. 31, 2022   125 8,050,000 77,410,282    
Ending Balance at Dec. 31, 2022 1,321,996 $ 0 $ 8 $ 77 1,716,938 (395,027)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Issuance of common stock, net (in shares)       458,283    
Amortization of stock compensation expense 8,029       8,029  
Net income (loss) (116,630)         (116,630)
Dividends on preferred stock (12,592)         (12,592)
Dividends on common stock (76,018)         (76,018)
Ending Balance (in shares) at Dec. 31, 2023   125 8,050,000 77,868,565    
Ending Balance at Dec. 31, 2023 1,124,785 [1] $ 0 $ 8 $ 77 1,724,967 (600,267)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Issuance of common stock, net (in shares)       3,139,731    
Issuance of common stock, net $ (176)     $ 4 (180)  
Retirement of common stock (in shares) (4,603)     (4,603)    
Retired common stock $ (37)         (37)
Amortization of stock compensation expense 6,387       6,387  
Net income (loss) 74,335         74,335
Dividends on preferred stock (12,592)         (12,592)
Dividends on common stock (78,661)         (78,661)
Ending Balance (in shares) at Dec. 31, 2024   125 8,050,000 81,003,693    
Ending Balance at Dec. 31, 2024 $ 1,114,041 [1] $ 0 $ 8 $ 81 $ 1,731,174 $ (617,222)
[1] The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2024 include assets and liabilities of variable interest entities (“VIEs”) of $2.1 billion and $1.7 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2023 include assets and liabilities of VIEs of $2.6 billion and $1.9 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details.
v3.25.0.1
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares
3 Months Ended 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Statement of Stockholders' Equity [Abstract]          
Dividend declared (in USD per share) $ 0.24 $ 0.24 $ 0.96 $ 0.96 $ 0.96
v3.25.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Cash flows from operating activities:      
Net income (loss) $ 74,335 $ (116,630) $ (60,066)
Adjustment to reconcile net income (loss) to net cash flows from operating activities:      
Amortization and accretion of premiums, discounts and loan origination fees, net (6,075) (11,955) (11,085)
Amortization of deferred financing costs 7,989 13,354 15,007
Depreciation and amortization 15,987 3,577 0
Amortization of above and below-market leases (255) (524) 0
Accrued PIK interest (360) 0 0
Collection of accrued PIK interest 1,172 542 1,314
Gain on sale of real estate owned, net 0 (7,028) (13,291)
Stock compensation expense 6,387 8,029 5,052
Increase of allowance for credit losses, net (see Note 3) 4,147 189,912 172,982
Cash flows due to changes in operating assets and liabilities:      
Accounts receivable 71 626 (504)
Accrued interest and fees receivable 4,713 10,773 (16,542)
Accrued expenses and other liabilities (3,197) 4,025 (143)
Accrued interest payable (3,570) (855) 8,357
Payable to affiliates 198 (1,071) 375
Deferred revenue 463 (178) 93
Other assets 10,126 (12,471) (1,053)
Net cash provided by operating activities 112,131 80,126 100,496
Cash flows from investing activities:      
Origination and acquisition of loans held for investment (494,995) (194,706) (1,519,406)
Advances on loans held for investment (40,697) (140,547) (145,199)
Principal repayments of loans held for investment 887,145 1,112,919 1,062,381
Capital expenditures related to real estate owned (5,324) (5,364) (5,060)
Cash assumed from conversion of loans held for investment to real estate owned 1,583 0 0
Sale of real estate owned 0 75,434 154,723
Sales of loans held for investment 92,798 247,649 0
Net cash provided by (used in) investing activities 440,510 1,095,385 (452,561)
Cash flows from financing activities:      
Payments on collateralized loan obligations (237,502) (541,379) (1,001,850)
Proceeds from collateralized loan obligations 0 0 907,031
Proceeds from asset-specific financing arrangements 71,700 94,947 584,841
Payment of deferred financing costs (1,732) (3,629) (18,788)
Payment of costs from warrant exercise and issuance of common stock (177) 0 0
Payments to retire common stock (37) 0 0
Net cash (used in) provided by financing activities (569,176) (1,222,808) 345,341
Net change in cash, cash equivalents, and restricted cash (16,535) (47,297) (6,724)
Cash, cash equivalents and restricted cash at beginning of period 207,018 254,315 261,039
Cash, cash equivalents and restricted cash at end of period 190,483 207,018 254,315
Supplemental disclosure of cash flow information:      
Interest paid 194,437 263,710 137,511
Taxes paid 260 371 784
Supplemental disclosure of non-cash investing and financing activities:      
Collateralized loan obligation proceeds held at trustee 0 247,229 296,964
Dividends declared, not paid 19,978 [1] 19,162 [1] 18,970
Sale and principal repayments of loans held for investment held by servicer/trustee, net 0 66,057 162,203
Accrued interest receivable held by servicer/trustee, net 0 0 1,444
Loan sale hold back 0 30,027 0
Conversion to real estate owned of loans held for investment - REO 89,499 241,868 76,500
Conversion to real estate owned of loans held for investment - Other assets 1,905 31,576 0
Conversion to real estate owned of loans held for investment - Other liabilities 2,100 4,311 0
Accrued deferred financing costs 0 122 608
Accrued capital expenditures related to real estate owned 298 315 0
Common Stock, Undefined Class      
Cash flows from financing activities:      
Dividends paid (77,849) (75,826) (80,290)
Preferred Stock, Undefined Class      
Cash flows from financing activities:      
Dividends paid (12,588) (12,592) (12,592)
Secured credit agreements      
Cash flows from financing activities:      
Payments on secured financing agreements (594,381) (814,193) (1,346,574)
Proceeds from secured financing agreements 442,748 484,828 1,333,028
Asset-specific financing arrangements      
Cash flows from financing activities:      
Payments on secured financing agreements (159,358) (386,164) (19,465)
Mortgage loan payable      
Cash flows from financing activities:      
Proceeds from secured financing agreements $ 0 $ 31,200 $ 0
[1] The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2024 include assets and liabilities of variable interest entities (“VIEs”) of $2.1 billion and $1.7 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2023 include assets and liabilities of VIEs of $2.6 billion and $1.9 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details.
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Business and Organization
12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Business and Organization Business and Organization
TPG RE Finance Trust, Inc. (together with its consolidated subsidiaries, “we,” “us,” “our” or the “Company”) is organized as a holding company and conducts its operations primarily through TPG RE Finance Trust Holdco, LLC (“Holdco”), a Delaware limited liability company that is wholly owned by the Company, and Holdco’s direct and indirect subsidiaries. The Company conducts its operations as a real estate investment trust (“REIT”) for U.S. federal income tax purposes. The Company is generally not subject to U.S. federal income taxes on its REIT taxable income to the extent that it annually distributes all of its REIT taxable income to stockholders and maintains its qualification as a REIT. The Company also operates its business in a manner that permits it 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 credit investments, consisting primarily 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.
v3.25.0.1
Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies 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 ("GAAP"). The consolidated financial statements include the Company's accounts, consolidated variable interest entities for which the Company is the primary beneficiary, and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated.
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, the adequacy of our allowance for credit losses and the valuation inputs related thereto. Actual amounts and values as of the balance sheet dates may be materially different from the amounts and values reported due to the inherent uncertainty in the estimation process and the limited availability of observable pricing inputs due to the nature of transitional mortgage loans. Also, future amounts and values could differ materially from those estimates due to changes in values and circumstances after the balance sheet date and the limited availability of observable prices.
Segments
The Company operates its business in a single operating and reportable segment, which is consistent with how the Company’s Chief Executive Officer, who is its chief operating decision maker (“CODM”), assesses financial performance and allocates resources. The CODM uses consolidated Net income (loss) as one of the primary measures to assess financial performance and allocate resources. All expense categories on the Company’s consolidated statements of income (loss) are significant, and there are no other significant expenses that would require disclosure. There is no difference between segment assets and total consolidated assets.
Principles of Consolidation
Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810—Consolidation (“ASC 810”) provides guidance on the identification of a variable interest entity (“VIE”), 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 the Company 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 conclusions for all its VIEs 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 in accordance with GAAP. See Note 5 for details.
Revenue Recognition
Interest income on loans is accrued using the interest method based on the contractual terms of the loan, adjusted for expected or realized credit losses, 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, and origination 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 and modification fees are accreted into interest income on a straight-line basis, when it approximates the interest method, over the related extension or modification period. Exit fees are accreted into interest income on a straight-line basis, when it approximates the interest method, over the lives of the loans to which they relate unless they can be waived by the Company or a co-lender in connection with a loan refinancing, or if timely collection of principal and interest is doubtful. Prepayment penalties from borrowers are recognized as interest income when received. Certain of the Company’s loan investments have in the past, and may in the future, provide for additional interest based on the borrower’s operating cash flow or appreciation in the value of the underlying collateral. Such amounts are considered contingent interest and are reflected as interest income only upon certainty of collection. Certain of the Company’s loan investments have in the past, and may in the future, provide for the accrual of interest (in part, or in whole) instead of its current payment in cash, with the accrued interest (“PIK interest”) added to the unpaid principal balance of the loan. Such PIK interest is recognized currently as interest income unless the Company concludes eventual collection is unlikely, in which case the PIK interest is written off.
All interest accrued but not received for loans placed on non-accrual status is subtracted from interest income at the time the loan is placed on non-accrual status. Based on the Company’s judgment as to the collectability of principal, a loan on non-accrual status is either accounted for on a cash basis, where interest income is recognized only upon receipt of cash for interest payments, or on a cost-recovery basis, where all cash receipts reduce the loan’s carrying value, and interest income is only recorded when such carrying value has been fully recovered.
Loans Held for Investment
Loans that the Company has the intent and ability to hold for the foreseeable future, or until maturity or repayment, are reported at their outstanding principal balances net of cumulative write-offs, interest applied to principal (for loans accounted for using the cost-recovery method), unamortized premiums, discounts, loan origination fees and costs. 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. Interest accrued but not yet collected is separately reported as accrued interest and fees receivable on the Company’s consolidated balance sheets.
Non-Accrual Loans
Loans are placed on non-accrual status when the full and timely collection of principal or interest is doubtful, generally when: management determines that the borrower is incapable of, or has ceased efforts toward, curing the cause of a default; the loan becomes 90 days or more past due for principal or interest; or the loan experiences a maturity default. The Company considers an account past due when an obligor fails to pay substantially all (defined as 90%) of the scheduled contractual payments by the due date. In each case, the period of delinquency is based on the number of days payments are contractually past due. A loan may be returned to accrual status if all delinquent principal and interest payments are brought current, and collectability of the remaining principal and interest payments in accordance with the loan agreement is reasonably assured. Loans that in the judgment of the Manager, are adequately secured and in the process of collection are maintained on accrual status, even if they are 90 days or more past due.
Loans Held for Sale
The Company may change its intent, or its assessment of its ability, to hold for the foreseeable future loans held for investment based on changes in the real estate market, capital markets, or when a shift occurs in the Company's approach to loan portfolio construction. Once a determination is made to sell a loan, or the Company determines it no longer has the intent and ability to hold a loan held for investment for the foreseeable future, the loan is transferred to loans held for sale. In accordance with GAAP, loans classified as held for sale are recorded at the lower of cost or fair value, net of estimated selling costs, and the loan is excluded from the determination of the CECL reserve.
Credit Losses
Allowance for Credit Losses for Loans Held for Investment
The Company accounts for its allowance for credit losses on loans held for investment using the Current Expected Credit Loss model of ASC Topic 326, Financial Instruments-Credit Losses (“ASC 326”). Periodic changes to the CECL reserve are recognized through net income on the Company’s consolidated statements of income (loss) and comprehensive income (loss). The allowance for credit losses measured under the CECL accounting framework represents an estimate of current expected losses for the Company’s existing portfolio of loans held for investment, and is presented as a valuation reserve on the Company’s consolidated balance sheets. Expected credit losses related to non-cancelable unfunded loan commitments are accounted for as separate liabilities included in accrued expenses and other liabilities on the consolidated balance sheets. The allowance for credit losses for loans held for investment, as reported in the Company’s consolidated balance sheets, is adjusted by a credit loss (expense) benefit, which is reported in earnings in the consolidated statements of income (loss) and comprehensive income (loss) and reduced by the write-off of loan amounts, net of recoveries and additions related to purchased credit-deteriorated (“PCD”) assets, if relevant. The Company has elected to not measure an allowance for credit losses on accrued interest receivables related to all of its loans held for investment because it writes off uncollectible accrued interest receivable in a timely manner pursuant to its non-accrual policy, described above.
The Company considers key credit quality indicators in underwriting loans and estimating credit losses, including but not limited to: the capitalization of borrowers and sponsors; the expertise of the borrowers and sponsors in a particular real estate property type and geographic market; collateral type; geographic region; use and occupancy of the property; property market value; loan-to-value (“LTV”) ratio; loan amount and lien position; debt service coverage ratio; the Company’s risk rating for the same and similar loans; and prior experience with the borrower and sponsor. This information is used to assess the financial and operating capability, experience and profitability of the sponsor/borrower. Ultimate repayment of the Company’s loans is also sensitive to interest rate changes, general economic conditions, liquidity, LTV ratio, existence of a liquid investment sales market for commercial properties, and availability of replacement short-term or long-term financing. The loans in the Company’s commercial mortgage loan portfolio are secured by collateral of the following property types: office; life science; multifamily; hotel; industrial; mixed-use; and self storage.
The Company’s loans are typically collateralized by real estate, or in the case of mezzanine loans, by a partnership interest or similar equity interest in the entity that owns the real estate securing the Company's first mortgage loan. The Company regularly evaluates on a loan-by-loan basis, typically no less frequently than quarterly, the extent and impact of any credit deterioration associated with the performance and/or value of the underlying collateral property, and 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 property type, and geographic sub-market in which the borrower operates. Such analyses are completed and reviewed by asset management personnel and evaluated by senior management, who utilize various data sources, including, to the extent available (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 availability of, and credit spreads for, refinancing and (v) other market data.
Quarterly, the Company evaluates the risk of all loans and assigns a risk rating based on a variety of factors, whereby no single factor on its own, whether quantitative or qualitative, is given more weight than others. The factors that the Company considers in connection with this evaluation are grouped as follows: (i) loan and credit structure, including the as-is LTV; (ii) quality and stability of real estate value and operating cash flow, including debt yield, property type, dynamics of the geography, local market, physical condition, stability of cash flow, leasing velocity and quality and diversity of tenancy; (iii) performance against underwritten business plan; (iv) the frequency and materiality of loan modifications or waivers occasioned by unfavorable variances between the underwritten business plan and actual performance; (v) changes in the capital markets that may impact the repayment of the loan via a refinancing or sale of the loan collateral; and (vi) quality, experience and financial condition of sponsor, borrower and guarantor(s). Based on a 5-point scale, the Company’s loans are rated “1” through “5,” from least risk to greatest risk, respectively:
1 -Very Low Risk
2 -Low Risk
3 -Medium Risk
4 -High Risk/Potential for Loss—A loan that has a high risk of realizing a principal loss; and
5 -Default/Loss Likely—A loan that has a very high risk of realizing a principal loss or has otherwise incurred a principal loss.
The Company generally assigns a risk rating of “3” to all loan investments upon origination or acquisition, except when specific circumstances warrant an exception.
The Company’s CECL reserve also reflects estimates of the current and future economic conditions that impact the performance of the commercial real estate assets securing the Company’s loans. These estimates include unemployment rates, inflation rates, interest rates, price indices for commercial property, current and expected future availability of liquidity in the commercial property debt and equity capital markets, and other macroeconomic factors that may influence the likelihood and magnitude of potential credit losses for the Company’s loans during their anticipated term. The Company licenses certain macroeconomic financial forecasts to inform its view of the potential future impact that broader economic conditions may have on its loan portfolio’s performance. Selection of the economic forecast or forecasts used, in conjunction with loan level inputs, to determine the CECL reserve requires significant judgment about future events that, while based on the information available to the Company as of the balance sheet date, are ultimately unknowable with certainty. The actual economic conditions impacting the Company’s portfolio could vary significantly from the estimates the Company made for the periods presented.
The key inputs to the Company's estimation of its allowance for credit losses as of December 31, 2024 were impacted by continued dislocations in the capital markets, declines in property values, sustained higher interest rates, uncertain inflationary trends, a continued risk of recession, structural shifts and regulatory changes in the banking sector, and political and geopolitical conflicts. Inherent uncertainty in the estimation process and the limited availability of observable pricing inputs due to the nature of transitional mortgage loans also constrain the Company's ability to estimate key inputs utilized to calculate its allowance for credit losses. Key inputs to the estimate include, but are not limited to: LTV; debt service coverage ratio; current and future operating cash flow and performance of collateral properties; the financial strength and liquidity of borrowers and sponsors; capitalization rates and discount rates used to value commercial real estate properties; and market liquidity based on market indices or observable transactions involving the sale or financing of commercial properties. Estimates made by the Company are subject to change. Actual results could differ from management’s estimates, and such differences could be material.
Credit Loss Measurement
The amount of allowance for credit losses is influenced by the size of the Company’s loan portfolio, loan quality and duration, collateral operating performance, risk rating, delinquency status, historic loss experience and other characteristics influencing loss expectations, such as reasonable and supportable forecasts of economic conditions. The Company employs two methods to estimate credit losses in its loan portfolio: (1) a model-based approach; and (2) an individually assessed approach for loans considered to be "collateral-dependent" since the repayment of the loan is expected to be provided substantially through the operation or sale of the underlying collateral, and the borrower is experiencing financial difficulty or foreclosure is probable.
Once the expected credit loss amount is determined, an allowance for credit losses is established. A loan will be written off through the allowance for credit losses when it is deemed non-recoverable or upon a realization event. This is generally at the time the loan is settled (including conversion to real estate owned), transferred or exchanged. Non-recoverability may also be concluded by the Company if, in its determination, it is nearly certain that all amounts due will not be collected. This loss is equal to the difference between the cash received, or expected to be received, and the carrying value of the asset. Factors considered by the Company in determining whether the expected credit loss is not recoverable include whether the Company determines that the loan is uncollectible, which means repayment is deemed to be delayed beyond a reasonable time, a loss becomes evident due to a borrower’s lack of assets and liquidity, or a borrower’s sponsor is unwilling or unable to support the loan.
Allowance for Credit Losses for Loans Held for Investment – Model-Based Approach
The Company uses a model-based approach used to measure the expected lifetime allowance for credit losses related to loans which are not individually assessed. The model-based approach considers the underlying loan level cash flows and relevant historical market loan loss data. The Company licenses from Trepp, LLC historical loss information, incorporating loan performance data for over 125,000 commercial real estate loans dating back to 1998, and an analytical model to compute statistical credit loss factors (i.e., probability-of-default, loss severity, and loss-given-default). These credit loss factors are utilized by the Company together with loan specific inputs such as property-level operating performance information, delinquency status, indicators of credit quality, and other credit trends and risk characteristics. Additionally, the Company considers relevant loan and borrower specific qualitative factors and incorporates its expectations about the impact of current macroeconomic and local market conditions and reasonable and supportable operating forecasts on expected future credit losses in deriving its estimate. For the period beyond which the Company is able to make reasonable and supportable forecasts, the Company reverts to unadjusted historical loan loss information.

The Company uses other acceptable alternative approaches depending on, among other factors, the type of loan, underlying collateral and availability of relevant historical market loan loss data.
Allowance for Credit Losses for Loans Held for Investment – Individually Assessed Approach
In instances where the Company concludes a loan repayment is entirely dependent on the operation or sale of the underlying collateral and the borrower is experiencing financial difficulty or foreclosure is probable, the Company individually assesses the allowance for credit loss for the underlying loan. The amount of expected credit loss is determined using broadly accepted and standard real estate valuation techniques (most commonly, a discounted cash flow model and real estate sales comparables). In instances where the Company determines foreclosure of the underlying collateral is probable, the expected credit loss is measured as the difference between the amortized cost basis of the loan and the fair value of the underlying collateral as of the measurement date. The fair value of the underlying collateral is adjusted for the estimated costs to sell if repayment or satisfaction of a loan is dependent on the sale (rather than the operation) of the underlying collateral in instances where foreclosure is not probable.
Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. Evaluations of the loan portfolio in future periods, given the prevailing forecasts and credit loss factors, may result in significant changes to the Company's allowance for credit losses and credit loss expense.
Unfunded Loan Commitments
The Company’s first mortgage loans often contain provisions for future funding of a pre-determined portion of capital and other costs incurred by the borrower in executing its business plan. These deferred fundings are conditioned upon the borrower’s execution of its business plan with respect to the underlying collateral property securing the loan. These deferred fundings are typically for base building work, tenant improvement costs and leasing commissions, interest reserves, and occasionally to fund forecasted operating deficits during lease-up. These deferred funding commitments may be for specific periods, often require satisfaction by the borrower of conditions precedent, and may contain termination clauses at the option of the borrower or, more rarely, at the Company’s option. The total amount of unfunded commitments does not necessarily represent actual amounts that may be funded in cash in the future, since commitments may expire without being drawn, may be cancelled if certain conditions are not satisfied by the borrower, or borrowers may elect not to borrow some or all of the unused commitment. The Company does not recognize these unfunded loan commitments in its consolidated financial statements.
The Company applies its expected credit loss estimates to all future funding commitments that cannot be contractually terminated at the Company’s option. The Company maintains a separate allowance for expected credit losses from unfunded loan commitments, which is included in accrued expenses and other liabilities on the consolidated balance sheets. The Company estimates the amount of expected losses by calculating a commitment usage factor over the contractual period for exposures that are not unconditionally cancellable by the Company and applies the loss factors used in the allowance for credit loss methodology described above to the results of the usage calculation to estimate the liability for credit losses related to unfunded commitments for each loan.
Exit Fees Receivable
The Company's first mortgage loans may require the borrower to pay an exit fee upon repayment or maturity. For each loan that has an exit fee outstanding, the Company calculates an allowance for credit losses as of the reporting date. Such amounts are recorded within Accrued interest and fees receivable on the Company's consolidated balance sheet and Credit loss expense, net on the Company's consolidated statements of income (loss) and comprehensive income (loss).
Real Estate Owned
Real estate acquired through a foreclosure or by deed-in-lieu of foreclosure is classified as real estate owned (“REO”) and held for investment on the Company’s consolidated balance sheet until a pending sales transaction meets the criteria of ASC 360-10-45-9 after which the real estate is considered to be held for sale, or is sold. The Company's basis in REO is equal to the fair value of the collateral's net assets upon foreclosure. The estimated fair value of REO is determined using generally accepted valuation techniques, including a discounted cash flow model and inputs that include the highest and best use for each asset, estimated future values based on extensive discussions with local brokers, investors and other market participants, the estimated holding period for the asset, and capitalization and discount rates that reflect estimated investor return requirements for the risks associated with the expected use of each asset. If the estimated fair value of REO is lower than the carrying value of the related loan upon its conversion to REO, the difference, along with any previously recorded specific CECL reserve, is recorded through credit loss (expense) benefit in the consolidated statements of income (loss) and comprehensive income (loss).
Upon the acquisition of a property, the Company assesses the fair value of the acquired tangible and intangible assets (including land, buildings, tenant improvements, above and below-market leases, acquired in-place leases, other identified intangible assets and assumed liabilities) and allocates the purchase price to the acquired assets and assumed liabilities, which are on a relative fair value basis. The Company assesses and considers fair value based on estimated cash flow projections that utilize appropriate discount and/or capitalization rates, as well as other available market information. Estimates of future cash flows are based on a number of factors including historical operating results, known and anticipated trends, and market and economic conditions.
In determining the fair value of the tangible assets of an acquired property, the Company considers the value of the property as if it were vacant. The Company allocates the purchase price to other acquired intangibles, including acquired in-place leases that may have
a customer relationship intangible value, including (but not limited to) the nature and extent of the existing relationship with the tenants, the tenants’ credit quality and expectations of lease renewals. Revenue from real estate owned is primarily comprised of rental income, including base rent and reimbursements of property operating expenses. For leases that have fixed and measurable base rent escalations, the Company recognizes base rent on a straight-line basis over the non-cancelable lease terms. The difference between such rental income earned and the cash rent amount is recorded as straight-line rent receivable and included within Other assets on the consolidated balance sheet.
The Company records the amortization of above and below-market leases as an adjustment to Revenue from real estate owned operations on the consolidated statements of income (loss) and comprehensive income (loss).
As of December 31, 2024, REO depreciable assets are depreciated using the straight-line method over estimated useful lives as follows:
DescriptionDepreciable Life
Building
Up to 48 years
Building improvements
Up to 12 years
Lease intangiblesOver lease term
Renovations and/or replacements that improve or extend the life of the REO are capitalized and depreciated over their estimated useful lives. The cost of ordinary repairs and maintenance are expensed as incurred. The Company capitalizes costs directly related to the pre-development, development or improvement of its REO, referred to as capital projects. Costs associated with the Company's capital projects are capitalized as incurred. Costs considered for capitalization include, but are not limited to, construction costs, interest, real estate taxes, insurance and utilities, if appropriate. The Company capitalizes indirect costs such as personnel, office, and administrative expenses that are directly related to development projects based on an estimate of the time spent on the construction and development activities. These costs are capitalized only during the period in which activities necessary to ready an asset for its intended use are in progress and such costs are incremental and identifiable to a specific activity to prepare the asset for its intended use. The Company determines when the capitalization period begins and ends through communication with project and other managers responsible for the tracking and oversight of individual projects. In the event that the activities to ready the asset for its intended use are suspended, the capitalization period will cease until such activities are resumed.
REO is initially measured at fair value and is thereafter subject to an ongoing impairment analysis. Subsequent to an REO acquisition, events or circumstances may occur that result in a material and sustained change in the cash flows generated, or expected to be generated, from the property. REO is evaluated for recoverability when impairment indicators are identified. REO is considered for impairment when the sum of estimated future undiscounted cash flows to be generated by the REO over the estimated remaining holding period is less than the carrying value of the REO. An impairment loss is recorded when the carrying value of the REO exceeds its fair value. Any impairment loss and gains on sale are included in the consolidated statements of income (loss) and comprehensive income (loss). Revenue and expenses from REO operations are included in the consolidated statements of income (loss) and comprehensive income (loss) within Revenue from real estate owned operations and Expenses from real estate owned operations, as applicable.
Investment Portfolio Financing Arrangements
The Company finances its portfolio of loans, or participation interests therein, and REO using secured financing agreements, including secured credit agreements, secured revolving credit facilities, asset-specific financing arrangements, mortgage loans payable, and collateralized loan obligations. 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 (loss) and comprehensive income (loss).
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, 2024, the Company transferred to a third-party lender, on a non-recourse basis, 100% of the senior mortgage loan that the Company originated, and 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 loans 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.
For more information regarding the Company’s investment portfolio financing arrangements, see Note 6.
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, cash equivalents, and restricted cash. 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 inputs used by management 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.
The following methods and assumptions are used by the Manager to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value:
Cash and cash equivalents: the carrying amount of cash and cash equivalents approximates fair value.
Loans held for investment, net: using a discounted cash flow methodology employing a discount rate for loans of comparable credit quality, structure, and LTV based upon appraisal information and current estimates of the value of collateral property performed by the Manager, and credit spreads for loans of comparable risk (as determined by the Manager based on the factors previously described) as corroborated by inquiry of other market participants.
Loans held for sale: estimated fair market value based on sale comparables as corroborated by inquiry of other market participants or independent market data providers.
Secured revolving credit facilities, asset-specific financings, and mortgage loan payable: based on the rate at which a similar secured revolving credit facility, asset-specific financing, or mortgage loan payable would currently be priced, as corroborated by inquiry of other market participants.
Commercial Real Estate Collateralized Loan Obligations, net: indications of value from dealers active in trading similar or substantially similar securities, observable quotes from market data services, reported prices and spreads for recent new issues, and Manager estimates of the credit spread at which similar bonds would be issued, or traded, in the new issue and secondary markets.
Other assets and liabilities subject to fair value measurement, including receivables, payables and accrued liabilities have carrying values that approximate fair value due to their short-term nature.
As discussed above, market-based or observable inputs are generally the preferred source of values for purposes of measuring the fair value of the Company’s assets under GAAP. The commercial property investment sales and commercial mortgage loan markets have experienced uneven liquidity due to global macroeconomic conditions, including heightened inflation, slower growth or recession, changes to fiscal and monetary policy, sustained higher interest rates, currency fluctuations, labor shortages and structural shifts and regulatory changes in the banking sector, which has made it more difficult to rely on market-based inputs in connection with the valuation of the Company’s assets under GAAP. Key valuation inputs include, but are not limited to, future operating cash flow and performance of collateral properties, the financial strength and liquidity of borrowers and sponsors, credit spreads for secured real estate borrowings, capitalization rates and discount rates used to value commercial real estate properties, and observable transactions involving the sale or financing of commercial properties.
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 (the “Internal Revenue Code”), 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. In 2017, the Internal Revenue Service issued a revenue procedure permitting “publicly offered” REITs to make elective stock dividends (i.e., dividends paid in a mixture of stock and cash), with at least 20% of the total distribution being paid in cash, to satisfy their REIT distribution requirements. Pursuant to this revenue procedure, the Company may elect to make future distributions of its taxable income in a mixture of stock and cash. 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.
In certain instances, the Company may generate excess inclusion income (“EII”) within the Sub-REIT structure it established for the purpose of issuing collateralized loan obligations (“CRE CLOs”). EII has previously occurred in certain instances where the Company’s CRE CLOs generate excess income as a result of declines in the underlying benchmark interest rates from the issuance date of a CRE CLO’s liabilities and the loans contributed to the CRE CLOs with interest rate floors that are materially higher than the current benchmark rates. EII, which is treated as unrelated business taxable income (“UBTI”), is an obligation of the Company and is allocated only to a taxable REIT subsidiary (“TRS”) and not to the Company's common stockholders.
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. Currently, the Company has no taxable temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis.
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.
Earnings per Common Share
The Company calculates basic earnings per share using the two-class method. The two-class method is an allocation formula that determines earnings per share for each share of common stock and participating securities according to dividends declared and participation rights in undistributed earnings. Under this method, all earnings (distributed and undistributed) are allocated to common shares and participating securities based on their respective rights to receive dividends. Basic earnings per common share is calculated by dividing earnings allocated to common shareholders by the weighted average number of common shares outstanding during the period.
Diluted earnings per share is computed under the more dilutive of the treasury stock method or the two-class method. The computation of diluted earnings per share is based on the weighted average number of participating securities outstanding plus the incremental shares that would be outstanding assuming exercise of then-outstanding warrants to purchase common stock (the “Warrants”, see Note 12) issued in connection with the Company’s no-longer-outstanding Series B Cumulative Redeemable Preferred Stock (the “Series B Preferred Stock”), which were exercisable on a net settlement basis. The number of incremental shares is calculated utilizing the treasury stock method. As discussed in Note 12, on May 8, 2024, all of the Warrants were exercised on a net settlement basis, resulting in the issuance of 2,647,059 shares of the Company's common stock. As of December 31, 2024, there were no Warrants outstanding.
The Company accounts for unvested stock-based compensation 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. The Company excludes participating securities and Warrants from the calculation of diluted weighted average shares outstanding in periods of net losses since their effect would be anti-dilutive.
Stock-based Compensation
Stock-based compensation consists of awards issued by the Company to certain employees of affiliates of the Manager and certain members of the Company’s Board of Directors. The stock-based compensation awards to certain employees of affiliates of the Manager generally vest in installments over a fixed period. Deferred stock units granted to the Company’s Board of Directors prior to December 2021 fully vested on the grant date and accrued, and will continue to accrue, common stock dividends that are paid-in kind through additional deferred stock units on a quarterly basis. Deferred stock units granted in December 2021 and thereafter will fully vest on the grant date and will continue to accrue and be paid cash common stock dividends on a quarterly basis. Stock-based compensation expense is recognized in net income on a straight-line basis over the applicable award’s vesting period. Forfeitures of stock-based compensation awards are recognized as they occur.
Deferred Financing Costs
Deferred financing costs are reflected net of the liabilities to which they relate, currently collateralized loan obligations, secured financing agreements, which include secured credit agreements and a secured revolving credit facility, asset-specific financing arrangements, and mortgage loans payable 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, as follows: (i) for secured financing agreements other than CRE CLOs, the initial term of the financing agreement, or in the case of costs directly associated with the loan, over the life of the financing agreement or the loan, whichever is shorter; and (ii) for CRE CLOs, over the estimated life of the liabilities issued based on the underlying loans’ initial maturity dates, considering the expected repayment behavior of the loans collateralizing the notes and the impact of any reinvestment periods, as of the closing date.
Cash and Cash Equivalents
Cash and cash equivalents includes 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, 2024 and December 31, 2023. The balances in these accounts may exceed the insured limits.
Pursuant to financial covenants applicable to Holdco, which is the guarantor of the Company’s recourse indebtedness, the Company is required to maintain minimum cash equal to the greater of (i) $15 million or (ii) the product of 5% and the aggregate recourse indebtedness of the Company. As of December 31, 2024 and December 31, 2023, the Company held as part of its total cash balances $15.0 million and $15.0 million to comply with this covenant, respectively.
Restricted Cash
Restricted cash primarily represents deposits paid by potential borrowers to cover certain costs incurred by the Company in connection with loan originations. These deposits may be returned to borrowers, after deducting eligible transaction costs paid by the Company for the benefit of the borrowers, upon the closing of a loan transaction, or if a loan transaction does not close and deposit proceeds remain. As of December 31, 2024, $0.3 million of restricted cash was combined with cash and cash equivalents of $190.2 million in the consolidated statement of cash flows. As of December 31, 2023, $0.6 million of restricted cash was combined with cash and cash equivalents of $206.4 million in the consolidated statement of cash flows.
Collateralized Loan Obligation Proceeds Held at Trustee
Collateralized Loan Obligation Proceeds Held at Trustee represent cash held by the Company’s collateralized loan obligations pending reinvestment in eligible collateral. See Note 5 for additional details.
Accounts Receivable from Servicer/Trustee
Accounts receivable from Servicer/Trustee represents cash proceeds from loan activities that have not been remitted to the Company based on established servicing and borrowing procedures. Such amounts are generally held by the Servicer/Trustee for less than 30 days before being remitted to the Company.
Stockholders’ Equity
Total Stockholders’ Equity may include preferred stock, common stock, and derivative instruments indexed to the Company's common stock such as warrants or other embedded options within financing arrangements that may be classified as temporary or permanent equity. Common shares generally represent a basic ownership interest in an entity and a residual corporate interest in liquidation, bearing the ultimate risk of loss and receiving the benefit of success. Common shares are usually perpetual in nature with voting rights and dividend rights. Preferred shares are usually characterized by the life of the instrument (i.e., perpetual or redeemable) and the ability of a holder to convert the equity instrument into cash, common shares, or a combination thereof. The terms of preferred shares can vary significantly, including but not limited to, an equity instrument’s dividend rate, term (e.g., existence of a stated redemption date), conversion features, voting rights, and liquidation preferences. Derivative instruments indexed to the Company's common stock such as warrants or other embedded options within financing arrangements are generally classified based on which party controls the contract settlement mechanism and the nature of the settlement terms that may require, or allow, the Company to make a cash payment, issue common shares, or a combination thereof to satisfy its obligation of the underlying contract.
The Company has shares of preferred stock and common stock that are outstanding and classified as permanent equity. Prior to June 30, 2024, the Company also had Warrants outstanding. The Warrants were exercisable on a net settlement basis. As discussed below in Note 12, on May 8, 2024, all of the Warrants were exercised on a net settlement basis, resulting in the issuance of 2,647,059 shares of the Company's common stock. As of December 31, 2024, there were no Warrants outstanding.
The Company’s common stock is perpetual with voting rights and dividend rights. On June 14, 2021, the Company issued 8,050,000 shares of Series C Cumulative Redeemable Preferred Stock (the “Series C Preferred Stock”) that is classified as permanent equity. The outstanding shares of Series C Preferred Stock have a 6.25% dividend rate and may be redeemed by the Company at its option on and after June 14, 2026. The Series C Preferred Stock issuance and Warrants are described in Note 12.
Recently Issued Accounting Pronouncements
In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures ("ASU 2024-03"). ASU 2024-03 intends to enhance disclosures about a public business entity’s expenses and requires more detailed information about the types of expenses included in certain expense captions in the consolidated financial statements. This standard is effective for the Company beginning with its 2026 annual reporting. ASU 2024-03 is to be adopted prospectively. The Company is currently evaluating the impact of ASU 2024-03.
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Loans Held for Investment and the Allowance for Credit Losses
12 Months Ended
Dec. 31, 2024
Receivables [Abstract]  
Loans Held for Investment and the Allowance for Credit Losses Loans Held for Investment and the Allowance for Credit Losses
The Company originates and acquires first mortgage and mezzanine loans secured by commercial properties. The Company considers these loans to comprise a single portfolio of mortgage loans, and the Company has developed its systematic methodology to determine the allowance for credit losses based on a single portfolio. For purposes of certain disclosures herein, the Company disaggregates this portfolio segment into the following classes of finance receivables: senior loans; and subordinated and mezzanine loans. These loans can potentially subject the Company to concentrations of credit risk, including, without limitation: property type collateralizing the loan; loan category; loan size; loans to a single sponsor; and loans in a single geographic area. The Company’s loans held for investment are accounted for at amortized cost. Interest accrued but not yet collected is separately reported within accrued interest and fees receivable on the Company’s consolidated balance sheets. Amounts within that caption relating to loans held for investment were $16.0 million and $20.2 million as of December 31, 2024 and December 31, 2023, respectively.
During the year ended December 31, 2024, the Company originated eight mortgage loans with a total commitment of $562.3 million, an initial unpaid principal balance of $532.0 million, and unfunded commitments at closing of $30.3 million. Additionally, the Company received 14 full loan repayments of $609.6 million, and partial principal payments including accrued PIK interest payments of $63.8 million across seven loans, for total loan repayments of $673.4 million during the year ended December 31, 2024. The Company also converted to REO two loans with an unpaid principal balance of $99.2 million.
During the year ended December 31, 2023, the Company originated four mortgage loans, with a total commitment of $229.4 million, an initial unpaid principal balance of $196.7 million, and unfunded commitments at closing of $32.7 million. Additionally, the Company received ten full loan repayments of $711.6 million, and partial principal payments including accrued PIK interest payments and cost-recovery proceeds of $195.4 million across 14 loans, for total loan repayments of $907.0 million during the year ended December 31, 2023. The Company also received proceeds of $349.5 million from the sale of five of its loans with an aggregate unpaid principal balance of $564.9 million, and converted to REO six loans with an unpaid principal balance of $386.1 million.
The following table details overall statistics for the Company’s loans held for investment portfolio (dollars in thousands):
December 31, 2024December 31, 2023
Balance sheet portfolio
Total loan exposure(1)
Balance sheet portfolio
Total loan exposure(1)
Number of loans45455353
Floating rate loans99.7 %99.7 %100.0 %100.0 %
Total loan commitment$3,412,016$3,412,016$3,666,173$3,666,173
Unpaid principal balance(2)
$3,284,510$3,284,510$3,484,052$3,484,052
Unfunded loan commitments(3)
$127,866$127,866$183,293$183,293
Amortized cost$3,278,588$3,278,588$3,476,776$3,476,776
Weighted average credit spread3.7 %3.7 %3.7 %3.7 %
Weighted average all-in yield(4)
8.3 %8.3 %9.3 %9.3 %
Weighted average term to extended maturity (in years)(5)
2.42.42.62.6
_______________________
(1)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. In either case, the senior mortgage loan (i.e., the non-consolidated senior interest) is not included on the Company’s balance sheet. When the Company creates structural leverage through the co-origination or non-recourse syndication of a senior loan interest to a third party, the Company retains on its balance sheet a mezzanine loan. Total loan exposure encompasses the entire loan portfolio the Company originated, acquired and financed. The Company had no non-consolidated senior interests as of December 31, 2024 and December 31, 2023. As of December 31, 2024, total loan exposure includes one fixed rate contiguous mezzanine loan.
(2)Unpaid principal balance includes PIK interest of $0.4 million and $1.2 million as of December 31, 2024 and December 31, 2023, respectively.
(3)Unfunded loan commitments may be funded over the term of each loan, subject in certain cases to an expiration date or a force-funding date, primarily to finance property improvements or lease-related expenditures by the Company’s borrowers and to finance operating deficits during renovation and lease-up.
(4)As of December 31, 2024, all of the Company's floating rate loans were indexed to Term SOFR. In addition to credit spread, all-in yield includes the amortization of deferred origination fees, purchase price premium and discount if any, and accrual of both extension and exit fees. All-in yield for the total portfolio assumes Term SOFR as of December 31, 2024 for weighted average calculations.
(5)Extended maturity assumes all extension options are exercised by the borrower; provided, however, that the Company’s loans may be repaid prior to such date. As of December 31, 2024, based on the unpaid principal balance of the Company’s total loan exposure, 22.1% of the Company’s loans were subject to yield maintenance or other prepayment restrictions and 77.9% were open to repayment by the borrower without penalty.
The following tables present an overview of the Company’s loans held for investment portfolio by loan seniority (dollars in thousands):
December 31, 2024
Loans held for investment, netOutstanding principalUnamortized premium (discount) and
loan origination fees, net
Amortized cost
Senior loans(1)
$3,284,510 $(5,922)$3,278,588 
Total$3,284,510 $(5,922)$3,278,588 
Allowance for credit losses(61,558)
Loans held for investment, net$3,217,030 
December 31, 2023
Loans held for investment, netOutstanding principalUnamortized premium (discount) and
loan origination fees, net
Amortized cost
Senior loans(1)
$3,484,052 $(7,276)$3,476,776 
Total$3,484,052 $(7,276)$3,476,776 
Allowance for credit losses(67,092)
Loans held for investment, net$3,409,684 
________________________________
(1)Senior loans may include contiguous mezzanine loans and pari passu participations in senior mortgage loans.
The following table presents the Company’s loans held for investment portfolio activity (dollars in thousands):
For the years ended December 31,
20242023
Balance as of January 1,$3,409,684 $4,781,402 
Additions during the period:
Loans originated and acquired527,276 194,706 
Additional fundings40,697 140,547 
Accrued PIK interest360 — 
Amortization of origination fees and discounts6,075 11,955 
Deductions during the period:
Collection of principal(672,196)(890,566)
Collection of accrued PIK interest(1,172)(542)
Collection of interest applied to reduce principal under the cost-recovery method— (15,894)
Realized loss on loan write-offs, loan sales, and REO conversions(9,729)(334,727)
Loan sales— (343,637)
Loan extinguishment upon conversion to REO(89,499)(263,740)
Decrease of allowance for credit losses5,534 130,180 
Balance as of December 31,$3,217,030 $3,409,684 
During the year ended December 31, 2024, the Company had no loan sales.
During the three months ended June 30, 2023, the Company sold one office loan with an unpaid principal balance of $71.3 million for $47.8 million, resulting in a realized loss on sale of $24.1 million, including transaction costs of $0.6 million. During the three months ended September 30, 2023, the Company recorded additional transaction costs of $0.8 million, which increased the realized loss on sale to $24.9 million. Such losses are included within Credit loss expense, net on the Company's consolidated statements of income (loss) and comprehensive income (loss).
During the three months ended September 30, 2023, the Company sold one mixed-use loan with an unpaid principal balance of $129.2 million for $95.0 million, resulting in a realized loss on sale of $35.0 million, including transaction costs of $0.8 million, and one office loan with an unpaid principal balance of $152.4 million for $79.0 million, resulting in a realized loss on sale of $74.4 million, including transaction costs of $0.9 million. Such losses are included within Credit loss expense, net on the Company's consolidated statements of income (loss) and comprehensive income (loss).
During the three months ended December 31, 2023, the Company sold one office loan with an unpaid principal balance of $84.7 million for $29.0 million, resulting in a realized loss on sale of $55.8 million, including transaction costs of $0.04 million and one multifamily loan with an unpaid principal balance of $127.3 million for $98.7 million, including a hold back of $30.0 million, resulting in a realized loss on sale of $22.4 million, which includes transaction costs of $2.7 million and $8.9 million from the reversal of the unamortized purchase discount from acquisition. Such losses are included within Credit loss expense, net on the Company's consolidated statements of income (loss) and comprehensive income (loss). The proceeds from sale of the Company's multifamily loan and the hold back are included within Accounts receivable from servicer/trustee and Other assets, respectively, on the Company's consolidated balance sheets as of December 31, 2023. During the year ended December 31, 2024, the Company received $92.8 million of the proceeds from sale and the hold back.
As of December 31, 2024 and December 31, 2023, there was $5.9 million and $5.2 million, respectively, of unamortized loan fees included in loans held for investment, net in the consolidated balance sheets. As of December 31, 2024, there were no unamortized discounts included in loans held for investment at amortized costs on the consolidated balance sheets. As of December 31, 2023, there was $2.1 million of unamortized discounts included in loans held for investment at amortized cost on the consolidated balance sheets.
Loan Risk Ratings
The Company evaluates all of its loans to assign risk ratings on a quarterly basis on a 5-point scale. As described in Note 2, the Company’s loans are rated “1” through “5,” from least risk to greatest risk, respectively. The Company generally assigns a risk rating of “3” to all loan investments upon origination or acquisition, except when specific circumstances warrant an exception.
The following tables present the Company's loans held for investment portfolio on an amortized cost basis by origination year, grouped by risk rating (dollars in thousands):
December 31, 2024
Amortized cost by origination year
20242023202220212020PriorTotal
Senior loans by internal risk ratings:
1$— $— $— $— $— $— $— 
262,716 — — — — — 62,716 
3467,735 201,588 752,847 1,213,894 — 462,607 3,098,671 
4— — — — — 117,201 117,201 
5— — — — — — — 
Total senior loans$530,451 $201,588 $752,847 $1,213,894 $— $579,808 $3,278,588 
Senior loans:
Current-period realized loss on loan write-offs related to REO conversions$— $— $(7,818)$(1,911)$— $— $(9,729)
December 31, 2023
Amortized cost by origination year
2023 2022 2021 2020 2019 Prior Total
Senior loans by internal risk ratings:
1$— $— $— $— $— $— $— 
2— — — — 99,000 — 99,000 
3196,268 1,013,299 1,313,889 100,550 450,849 86,073 3,160,928 
4— 60,229 — — 40,415 116,204 216,848 
5— — — — — — — 
Total senior loans$196,268 $1,073,528 $1,313,889 $100,550 $590,264 $202,277 $3,476,776 
Senior loans:
Current-period realized loss on loan write-offs related to loan sales and REO conversions$— $(29,630)$(8,526)$(24,906)$(188,275)$(83,390)$(334,727)
Loans acquired are presented in the preceding tables in the column corresponding to the year of origination, not acquisition.
The table below summarizes the Company’s portfolio of loans held for investment on an amortized cost basis, by the results of its internal risk rating review process performed (dollars in thousands):
Risk ratingDecember 31, 2024December 31, 2023
1$— $— 
262,716 99,000 
33,098,671 3,160,928 
4117,201 216,848 
5— — 
Total$3,278,588 $3,476,776 
Allowance for credit losses(61,558)(67,092)
Carrying value$3,217,030 $3,409,684 
Weighted average risk rating(1)
3.0 3.0 
________________________________
(1)Weighted average risk rating calculated based on the amortized cost balance at period end.
The weighted average risk rating of the Company’s loans held for investment portfolio was 3.0 as of December 31, 2024, unchanged from December 31, 2023.
Allowance for Credit Losses
The Company’s allowance for credit losses developed pursuant to ASC 326 reflects its current estimate of potential credit losses related to its loans held for investment portfolio as of December 31, 2024. As part of its allowance for credit losses, the Company maintains a separate allowance for credit losses related to unfunded loan commitments which is included in accrued expenses and other liabilities on the consolidated balance sheets. See Note 2 for additional details regarding the Company's accounting policies and estimation of its allowance for credit losses.
The following tables present activity in the allowance for credit losses for loans by finance receivable class (dollars in thousands):
For the Year Ended December 31, 2024
Senior loans
Allowance for credit losses for loans held for investment:
Beginning balance at January 1, 2024$67,092 
Allowance for credit losses, net4,195 
Realized loss on loan write-offs(9,729)
Subtotal61,558 
Allowance for credit losses on unfunded loan commitments:
Beginning balance at January 1, 20242,679 
Reversal of credit losses, net(264)
Subtotal2,415 
Total allowance for credit losses(1)
$63,973 
For the Year Ended December 31, 2023
Senior loans
Allowance for credit losses for loans held for investment:
Beginning balance at January 1, 2023$197,272 
Allowance for credit losses, net204,547 
Realized loss on loan write-off(334,727)
Subtotal67,092 
Allowance for credit losses on unfunded loan commitments:
Beginning balance at January 1, 202317,314 
Reversal of credit losses, net(14,635)
Subtotal2,679 
Total allowance for credit losses$69,771 
________________________________
(1)Excludes $0.2 million of allowance for credit losses on exit fees receivable related to the Company's loans held for investment portfolio. Such amounts are recorded within Accrued interest and fees receivable on the Company's consolidated balance sheet and Credit loss expense, net on the Company's consolidated statements of income (loss) and comprehensive income (loss).
The following table presents the allowance for credit losses for loans held for investment (dollars in thousands):
December 31, 2024
General reserveSpecific reserveTotal reserve
Allowance for credit losses:
Loans held for investment$61,558 $— $61,558 
Unfunded loan commitments2,415 — 2,415 
Total allowance for credit losses(1)
$63,973 $— $63,973 
Total unpaid principal balance$3,284,510 $— $3,284,510 
December 31, 2023
General reserveSpecific reserveTotal reserve
Allowance for credit losses:
Loans held for investment$67,092 $— $67,092 
Unfunded loan commitments2,679 — 2,679 
Total allowance for credit losses$69,771 $— $69,771 
Total unpaid principal balance$3,484,052 $— $3,484,052 
________________________________
(1)Excludes $0.2 million of allowance for credit losses on exit fees receivable related to the Company's loans held for investment portfolio. Such amounts are recorded within Accrued interest and fees receivable on the Company's consolidated balance sheet and Credit loss expense, net on the Company's consolidated statements of income (loss) and comprehensive income (loss).
The Company’s allowance for credit losses is influenced by the size and maturity dates of its loans, loan quality, credit indicators including risk ratings, delinquency status, historical loss experience and other conditions influencing loss expectations, such as property valuation and reasonable and supportable forecasts of economic conditions.
During the year ended December 31, 2024, the Company recorded a decrease of $5.8 million to its allowance for credit losses, decreasing its CECL reserve for loans held to investment to $64.0 million as of December 31, 2024. For the year ended December 31, 2024, the decrease to the Company's allowance for credit losses was due primarily to (i) a decrease of $9.7 million resulting from realized losses on loan write-offs related to REO conversions and (ii) a decrease of $4.9 million resulting from loan repayments during the year ended December 31, 2024, partially offset by (i) an increase of $2.7 million resulting from the Company's loan origination activity during the year ended December 31, 2024 and (ii) a net increase of $6.1 million related to macroeconomic assumptions employed in determining the general CECL reserve.
During the year ended December 31, 2023, the Company recorded a decrease of $144.8 million, decreasing its allowance for credit losses to $69.8 million as of December 31, 2023. For the year ended December 31, 2023, the decrease to the Company's estimate of expected credit losses was primarily due to (i) a decrease of $334.7 million resulting from realized losses on loan write-offs, loan sales, and REO conversions and (ii) a decrease of $2.5 million resulting from net investment activity during 2023, partially offset by (i) a year over year increase of $168.6 million for loans resolved during 2023 and (ii) an increase of $23.8 million related to macroeconomic assumptions employed in determining the general CECL reserve and the deterioration of local market fundamentals in the office sector.
As of December 31, 2024 and December 31, 2023, none of the Company's first mortgage loans satisfied the CECL framework's criteria for individual assessment and the Company had no loans on non-accrual status or cost-recovery. As of December 31, 2024 and December 31, 2023, none of the Company's performing loans (full accrual status) had accrued interest income receivable 90 days or more past due.
The following table presents an aging analysis for the Company’s portfolio of loans held for investment, by class of loans on amortized cost basis (dollars in thousands):
Days Outstanding as of December 31, 2024
CurrentDays: 30-59Days: 60-89 Days: 90 or moreTotal loans past dueTotal loans
Loans receivable:
Senior loans$3,278,588 $— $— $— $— $3,278,588 
Total$3,278,588 $— $— $— $— $3,278,588 
 
Days Outstanding as of December 31, 2023
Current Days: 30-59Days: 60-89Days: 90 or moreTotal loans past dueTotal loans
Loans receivable:
Senior loans$3,476,776 $— $— $— $— $3,476,776 
Total$3,476,776 $— $— $— $— $3,476,776 
See Note 2 of the consolidated financial statements for details of the Company's revenue recognition and allowance for credit losses accounting policies.
Loan Modifications
The Company may amend or modify a loan depending on the loan’s specific facts and circumstances. These loan modifications typically include additional time for the borrower to refinance or sell the collateral property, adjustment or waiver of performance tests that are prerequisite to the extension of a loan maturity, modification of terms of interest rate cap agreements, and/or deferral of scheduled principal payments. In exchange for a modification, the Company often receives a partial repayment of principal, a short-term accrual of PIK interest for a portion of interest due, a cash infusion to replenish a loan's interest or capital improvement reserves, termination of all or a portion of the remaining unfunded loan commitment, additional call protection, and/or an increase in the loan coupon.
During the three months ended March 31, 2024, the Company modified one loan to extend the loan maturity and increase the credit spread. The modified loan was accounted for as a new loan for GAAP purposes. The new loan was assigned a risk rating of "3".
During the three months ended June 30, 2024, the Company modified one loan to extend the loan maturity, increase the interest rate floor, require the borrower's sponsor to inject an additional $11.3 million of cash into the capital structure, and require the borrower to purchase a replacement interest rate cap. As part of this modification, the Company issued a contiguous mezzanine loan with a total commitment of $11.3 million, an initial funding of $7.8 million, and a fixed 8.0% PIK interest rate. The new loan was assigned a risk rating of "3".
During the three months ended September 30, 2024, the Company modified one loan to extend the loan maturity, increase the credit spread, and increase the commitment amount. The modified loan was accounted for as a new loan for GAAP purposes. The new loan was assigned a risk rating of "2".
None of the Company's loan modifications were the result of the borrower experiencing financial difficulty.
As of December 31, 2024, the total amount of accrued PIK interest in the Company's loans held for investment portfolio was $0.4 million related to one loan. Total PIK interest of $0.4 million was recorded and deferred during the year ended December 31, 2024.
The following table presents the accrued PIK interest activity for the Company’s loans held for investment portfolio (dollars in thousands):
Year Ended
20242023
Balance as of January 1,
$1,172 $1,714 
Repayments of accrued PIK interest(1,172)(542)
Balance as of March 31,
$— $1,172 
Accrued PIK interest34 — 
Balance as of June 30,
$34 $1,172 
Accrued PIK interest162 — 
Balance as of September 30,
$196 $1,172 
Accrued PIK interest164 — 
Balance as of December 31,$360 $1,172 
v3.25.0.1
Real Estate Owned
12 Months Ended
Dec. 31, 2024
Real Estate Owned, Disclosure of Detailed Components [Abstract]  
Real Estate Owned Real Estate Owned
As of December 31, 2024, assets and liabilities related to REO consisted of eight properties: four multifamily properties, one located in each of Arlington Heights, IL and Chicago, IL; two located in San Antonio, TX; and four office properties, one located in each of Orange, CA, San Mateo, CA, Manhattan, NY, and Houston, TX. The Company accounted for these acquisitions as asset acquisitions. As of December 31, 2024, the carrying value of the Company's REO is $275.8 million. The Company acquired three REO properties during the three months and year ended December 31, 2024. The Company recorded an aggregate fair value of $89.9 million as of the acquisition date, including assumed working capital of $(0.4) million.
In 2021, the Company originated a $39.0 million senior loan secured by a multifamily property in Chicago, IL. As of September 30, 2024, the loan had a risk rating of "4" with an amortized cost and carrying value of $39.0 million and $37.1 million, respectively. On December 16, 2024, the Company acquired the property via a UCC foreclosure. The Company recognized a realized loss on REO conversion of $1.9 million.
In 2022, the Company originated a $62.4 million senior loan secured by two multifamily properties in San Antonio, TX. As of September 30, 2024, the loan had a risk rating of "4" with an amortized cost and carrying value of $60.2 million and $52.4 million, respectively. On November 5, 2024, the Company acquired the properties via a non-judicial foreclosure. The Company recognized a realized loss on REO conversion of $7.8 million.
The Company allocated the fair value of the assets and liabilities acquired during the year ended December 31, 2024, as of the acquisition date (dollars in thousands):
Fair Value Allocation
Building and building improvements$71,720 
Land and land improvements16,391 
In-place lease intangibles1,793 
Total$89,904 
The Company’s fair market value estimate was determined primarily using discounted cash flow models and Level 3 inputs, which include estimates of property-specific cash flows over a specific holding period. These inputs are based on the location, type and nature of the property, costs-to-complete, expected time required to lease and stabilize the property, current sales and lease comparables, anticipated real estate and capital market conditions, and management’s knowledge, experience, and judgment.
During the year ended December 31, 2023, the Company acquired four office properties and two multifamily properties.
In 2021, the Company originated a $80.0 million senior loan secured by a multifamily property in Arlington Heights, IL. As of September 30, 2023, the loan had a risk rating of "4" with an amortized cost and carrying value of $79.7 million and $76.3 million, respectively. The loan was placed on non-accrual status and accounted for under cost-recovery during the fourth quarter of 2023. On December 28, 2023, the Company acquired the property through a foreclosure. The acquisition was accounted for as an asset acquisition. The Company recognized a realized loss on REO conversion of $8.5 million.
In 2019, the Company originated a $76.5 million senior loan secured by an office property in Orange, CA. As of September 30, 2023, the loan had a risk rating of "5", was on non-accrual status and accounted for under cost-recovery with an amortized cost and carrying value of $60.3 million and $24.3 million, respectively. On December 28, 2023, the Company acquired the property through a deed-in-lieu of foreclosure. This acquisition was accounted for as an asset acquisition. The Company recognized a realized loss on REO conversion of $40.4 million.
In 2019, the Company originated a $75.8 million senior loan secured by an office property in San Mateo, CA. As of September 30, 2023, the loan had a risk rating of "5" with an amortized cost and carrying value of $61.9 million and $32.6 million, respectively. The loan was placed on non-accrual status and accounted for under cost-recovery during the fourth quarter of 2023. On December 27, 2023, the Company acquired the property through a deed-in-lieu of foreclosure. This acquisition was accounted for as an asset acquisition. The Company recognized a realized loss on REO conversion of $42.4 million.
In 2019, the Company originated a $54.0 million senior loan secured by an office property in Manhattan, NY. As of September 30, 2023, the loan had a risk rating of "5", was on non-accrual status and accounted for under cost-recovery with an amortized cost and carrying value of $52.6 million and $44.3 million, respectively. On December 15, 2023, the Company acquired the property through a deed-in-lieu of foreclosure. This acquisition was accounted for as an asset acquisition. The Company recognized a realized loss on REO conversion of $14.8 million.
In 2022, the Company originated a $97.0 million senior loan secured by a multifamily property under development in Los Angeles, CA. As of June 30, 2023, the loan had a risk rating of "4" and was on non-accrual status, with an amortized cost and carrying value of $77.1 million and $71.1 million, respectively. On August 17, 2023, the Company acquired the property via foreclosure. This acquisition was accounted for as an asset acquisition.
In 2018, the Company originated a $55.7 million senior loan secured by an office property in Houston, TX. As of March 31, 2023, the loan had a risk rating of "5", was on non-accrual status and accounted for under cost-recovery, with an amortized cost and carrying value of $55.0 million and $46.0 million, respectively. On April 28, 2023, the Company acquired the property through a deed-in-lieu of foreclosure. This acquisition was accounted for as an asset acquisition.
The Company allocated the fair value of the assets and liabilities acquired during the year ended December 31, 2023, as of the acquisition date (dollars in thousands):
Fair Value Allocation
Building and building improvements$103,293 
Land and land improvements91,484 
Construction in progress47,091 
In-place lease intangibles27,594 
Above-market lease intangibles3,982 
Below-market lease intangibles(4,311)
Total$269,133 
The Company’s fair market value estimate was determined primarily using discounted cash flow models and Level 3 inputs, which include estimates of property-specific cash flows over a specific holding period. These inputs are based on the location, type and nature of the property, costs-to-complete, expected time required to lease and stabilize the property, current sales and lease comparables, anticipated real estate and capital market conditions, and management’s knowledge, experience, and judgment.
During the three months ended December 31, 2023, the Company sold the Los Angeles, CA multifamily property under development for net cash proceeds of $75.4 million and recognized a gain on sale of real estate owned, net of $7.0 million on the consolidated statements of income and comprehensive income.
During June 2023, the Company obtained from a third party a $31.2 million first mortgage loan secured by the Houston, TX office property, which is classified as Mortgage loan payable, net on the Company's consolidated balance sheets. See Note 6 for details of the Mortgage loan payable.
The following table presents the REO assets and liabilities (dollars in thousands):
December 31, 2024December 31, 2023
Assets
Cash$13,195 $532 
Real estate owned - Building and building improvements174,427 103,293 
Real estate owned - Land and land improvements80,328 67,472 
Real estate owned - Tenant improvements8,678 4,299 
Real estate owned263,433 175,064 
Accumulated depreciation(7,029)(1,007)
Real estate owned, net256,404 174,057 
In-place lease intangibles, net(1)
17,004 25,036 
Above-market lease intangibles, net(1)
2,945 3,902 
Leasing commissions, net(1)
1,935 533 
Other assets, net(1)
9,481 12,384 
Total assets$300,964 $216,444 
Liabilities
Mortgage loan payable, net(2)
$30,695 $30,551 
Below-market lease intangibles, net(3)
2,495 3,707 
Other liabilities(3)
7,377 3,214 
Total liabilities$40,567 $37,472 
________________________________
(1)Included within Other assets within the Company's consolidated balance sheet. Other assets, net includes $3.8 million and $11.3 million of cash proceeds from the Company's mortgage loan payable escrowed for tenant improvements and leasing costs, and other working capital balances as of December 31, 2024 and December 31, 2023, respectively.
(2)During the year ended December 31, 2024, the Company incurred interest expense of $2.6 million, which is included within Interest expense on the Company's consolidated statements of income (loss) and comprehensive income (loss). During the year ended December 31, 2023, the Company incurred interest expense of $1.4 million, which is included within Interest expense on the Company's consolidated statements of income (loss) and comprehensive income (loss).
(3)Included within Accrued expenses and other liabilities within the Company's consolidated balance sheet.
The Company acquired certain legacy tenant leases upon the acquisition of REO. These leases entitle the Company to receive contractual rent payments during the lease periods and in some instances tenant reimbursements for certain property operating expenses, including common area costs, insurance, utilities and real estate taxes. The Company elected the practical expedient to not separate the lease and non-lease components of the rent payments and accounts for these leases as operating leases.
The following table presents the REO operations and related income (loss) (dollars in thousands):
Years Ended
December 31, 2024December 31, 2023
Rental income
Minimum lease payments$27,417 $5,292 
Variable lease payments3,152 1,047 
Total rental income30,569 6,339 
Other operating income131 1,490 
Revenue from real estate owned operations30,700 7,829 
Rental property operating expenses(1)
19,639 3,955 
Depreciation and amortization(2)
15,987 3,577 
Expenses from real estate owned operations35,626 7,532 
Net (loss) income from REO$(4,926)$297 
________________________________
(1)Excludes $2.6 million of interest expense incurred during the year ended December 31, 2024, which is included within Interest expense on the Company's consolidated statements of income (loss) and comprehensive income (loss). Excludes $1.4 million of interest expense incurred during the year ended December 31, 2023, which is included within Interest expense on the Company's consolidated statements of income (loss) and comprehensive income (loss).
(2)During the year ended December 31, 2024, the Company incurred $6.0 million of depreciation expense. During the year ended December 31, 2023, the Company incurred $1.0 million of depreciation expense.
Real estate-related capital expenditures
For the year ended December 31, 2024, the Company's capital expenditures were $5.6 million, as shown on the Company's consolidated statements of cash flows, which includes $0.3 million of accrued capital expenditures. For the year ended December 31, 2023, the Company's capital expenditures were $5.7 million, as shown on the Company's consolidated statements of cash flows, which includes $0.3 million of accrued capital expenditures.
The following table presents the gross carrying amount and accumulated amortization of lease intangibles (dollars in thousands):
December 31, 2024December 31, 2023
Intangible assets:
In-place lease intangibles$29,387 $27,594 
Above-market lease intangibles3,982 3,982 
Leasing commissions2,088 545 
Total intangible assets35,457 32,121 
Accumulated amortization:
In-place lease intangibles(12,383)(2,558)
Above-market lease intangibles(1,037)(80)
Leasing commissions(153)(12)
Total accumulated amortization(13,573)(2,650)
Intangible assets, net$21,884 $29,471 
Intangible liabilities:
Below-market lease intangibles$4,311 $4,311 
Total intangible liabilities4,311 4,311 
Accumulated amortization:
Below-market lease intangibles(1,816)(604)
Total accumulated amortization(1,816)(604)
Intangible liabilities, net$2,495 $3,707 
The following table presents the estimated future amortization of the Company's intangibles for each of the next five years (dollars in thousands):
YearIn-place lease intangiblesAbove-market lease intangiblesLeasing
commissions
Below-market lease intangibles
20255,040 877 314 (704)
20262,797 626 267 (496)
20271,672 484 260 (300)
20281,430 426 235 (293)
2029916 119 201 (205)
The weighted average amortization period for the acquired in-place lease intangibles, above-market lease intangibles, leasing commissions, and below-market lease intangibles acquired during the year ended December 31, 2024, were 8.1 years, 5.8 years, 7.8 years, and 6.3 years, respectively.
Future Minimum Lease Payments
Minimum rental amounts due under tenant leases are generally subject either to scheduled fixed increases or adjustments. The following table presents approximate future minimum rental income under non-cancelable operating leases, excluding variable lease revenue of tenant reimbursements, to be received over the next five years and thereafter as of December 31, 2024 and excludes leases at the Company's multifamily property as they are short term, generally 12 months or less (dollars in thousands):
YearFuture Minimum Rents
202516,485 
202611,556 
202710,358 
20288,239 
20295,092 
Thereafter64,694 
Total$116,424 
The weighted average minimum term of the non-cancelable leases was approximately eleven years as of December 31, 2024.
v3.25.0.1
Variable Interest Entities and Collateralized Loan Obligations
12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Variable Interest Entities and Collateralized Loan Obligations Variable Interest Entities and Collateralized Loan Obligations
Subsidiaries of the Company have financed certain of the Company’s loans held for investment portfolio through the issuance of collateralized loan obligations.
On February 16, 2022, TPG RE Finance Trust CLO Sub-REIT (“Sub-REIT”), a subsidiary of the Company, issued a collateralized loan obligation (“TRTX 2022-FL5” or “FL5”). TRTX 2022-FL5 permits the Company, during the 24 months after closing, to contribute eligible new loans or participation interests in loans to TRTX 2022-FL5 in exchange for cash, which provides additional liquidity to the Company to originate new loan investments as underlying loans repay. The reinvestment period for TRTX 2022-FL5 ended on February 9, 2024. In accordance with the TRTX 2022-FL5 indenture, prior to the end of the reinvestment period, the Company committed to contribute certain loan assets and completed the contribution process on April 12, 2024. The Company utilized the reinvestment feature during the years ended December 31, 2024 and 2023. In connection with TRTX 2022-FL5, the Company incurred $6.5 million of deferred financing costs, including issuance, legal, and accounting related costs.
On March 31, 2021, Sub-REIT issued a collateralized loan obligation (“TRTX 2021-FL4” or “FL4”). TRTX 2021-FL4 permitted the Company, during the 24 months after closing, to contribute eligible new loans or participation interests in loans to TRTX 2021-FL4 in exchange for cash, which provided additional liquidity to the Company to originate new loan investments as underlying loans repaid. The reinvestment period for TRTX 2021-FL4 ended on March 11, 2023. In accordance with the TRTX 2021-FL4 indenture, prior to the end of the reinvestment period, the Company committed to contribute certain loan assets and completed the contribution process by mid-May 2023. The Company utilized the reinvestment feature during the year ended December 31, 2023. In connection with TRTX 2021-FL4, the Company incurred $8.3 million of deferred financing costs, including issuance, legal, and accounting related costs.
On October 25, 2019, Sub-REIT issued a collateralized loan obligation (“TRTX 2019-FL3” or “FL3”). TRTX 2019-FL3 permitted the Company, during the 24 months after closing, to contribute eligible new loans or participation interests in loans to TRTX 2019-FL3 in exchange for cash, which provided additional liquidity to the Company to originate new loan investments as underlying loans repaid. The reinvestment period for TRTX 2019-FL3 ended on October 11, 2021. In connection with TRTX 2019-FL3, the Company incurred $7.8 million of deferred financing costs, including issuance, legal, and accounting related costs.
On November 29, 2018, Sub-REIT issued a collateralized loan obligation (“TRTX 2018-FL2” or “FL2”). TRTX 2018-FL2 permitted the Company, during the 24 months after closing, to contribute eligible new loans or participation interests in loans to TRTX 2018-FL2 in exchange for cash, which provided additional liquidity to the Company to originate new loan investments as underlying loans repaid. The reinvestment period for TRTX 2018-FL2 ended on December 11, 2020. In connection with TRTX 2018-FL2, the Company incurred $8.7 million of deferred financing costs, including issuance, legal, and accounting related costs.
On February 17, 2022, the Company redeemed TRTX 2018-FL2, which at its redemption had $600.0 million of investment-grade bonds outstanding. The 17 loans or participation interests therein with an aggregate unpaid principal balance of $805.7 million held by the trust were refinanced in part by the issuance of TRTX 2022-FL5 and in part with the expansion of an existing secured credit agreement. In connection with the redemption of TRTX 2018-FL2, the Company exercised an option under an existing secured credit agreement to increase the commitment amount by $250.0 million, pledge additional collateral with an aggregate unpaid principal balance of $463.8 million and borrow an additional $359.1 million.
The Company evaluated the key attributes of the issuers of the CRE CLOs ("CRE CLO Issuers"), which are wholly owned subsidiaries of the Company, to determine if they were VIEs and, if so, whether the Company was the primary beneficiary of their operating activities and therefore consolidate the CRE CLOs. The Company concluded that the CRE CLO Issuers are VIEs and the Company is the primary beneficiary because it has the ability to control the most significant activities of the CRE CLO Issuers, the obligation to absorb losses to the extent of its equity investments, and the right to receive benefits that could potentially be significant to these entities. Accordingly, as of December 31, 2024 and December 31, 2023 the Company consolidated the CRE CLO Issuers.
The following table outlines the total assets and liabilities within the Sub-REIT (dollars in thousands):
December 31, 2024December 31, 2023
Assets
Cash and cash equivalents$71,541 $59,204 
Collateralized loan obligation proceeds held at trustee(1)
— 247,229 
Accounts receivable from servicer/trustee299 300 
Accrued interest receivable10,866 10,207 
Loans held for investment, net(2)
1,917,210 2,245,241 
Real estate owned, net117,090 33,540 
Other assets3,947 5,363 
Total assets$2,120,953 $2,601,084 
Liabilities
Accrued interest payable$4,436 $6,602 
Accrued expenses4,738 777 
Collateralized loan obligations, net(3)
1,681,660 1,915,174 
Payable to affiliates3,052 2,879 
Deferred revenue2,583 2,124 
Total liabilities$1,696,469 $1,927,556 
________________________________
(1)Includes $247.2 million of cash available to acquire eligible assets related to TRTX 2022-FL5 as of December 31, 2023.
(2)Includes three loans held for investment with an unpaid principal balance of $3.9 million as of December 31, 2023.
(3)Net of $0.6 million and $4.6 million of unamortized deferred financing costs as of December 31, 2024 and December 31, 2023, respectively.
As of December 31, 2024 and December 31, 2023, assets held by these VIEs are restricted and are only available to settle obligations of the related VIE. The liabilities of these VIEs are non-recourse to the Company and can only be satisfied from the then-current assets of the related VIE.
The following tables detail the loan collateral and borrowings under the Company's CRE CLOs (dollars in thousands):
December 31, 2024
CRE CLOsCountBenchmark interest rateOutstanding principal balanceCarrying value
Wtd. avg. spread(1)
Wtd. avg. maturity(2)
TRTX 2019-FL3
Collateral loan and REO investments5Term SOFR$311,381$203,4273.68 %1.0
Financing provided1Term SOFR119,526119,5262.46 %9.8
TRTX 2021-FL4
Collateral loan and REO investments19Term SOFR886,409796,5523.84 %2.0
Financing provided1Term SOFR673,909673,9091.93 %13.2
TRTX 2022-FL5
Collateral loan investments26Term SOFR1,056,8221,033,7753.70 %2.1
Financing provided1Term SOFR888,853888,2252.02 %14.1
Total
Collateral loan and REO investments(3)
50Term SOFR$2,254,612$2,033,7543.75 %2.0 years
Financing provided(4)
3Term SOFR$1,682,288$1,681,6602.02 %13.4 years
________________________________
(1)Weighted average spread excludes the amortization of loan fees and deferred financing costs.
(2)Loan term represents weighted average final maturity, assuming extension options are exercised by the borrower. Repayments of CRE CLO notes are dependent on timing of underlying loan repayments post-reinvestment period. The term of the CRE CLO notes represents the rated final distribution date.
(3)Collateral loan investment assets of FL3, FL4 and FL5 represent 9.5%, 27.0% and 32.2%, respectively, of the aggregate unpaid principal balance of the Company's loans held for investment portfolio as of December 31, 2024.
(4)During the year ended December 31, 2024, the Company recognized interest expense of $135.4 million, which includes $4.2 million of deferred financing cost amortization and is reflected within the Company's consolidated statements of income (loss) and comprehensive income (loss).
December 31, 2023
CRE CLOsCountBenchmark interest rateOutstanding principal balance
Carrying value(1)
Wtd. avg. spread(2)
Wtd. avg. maturity(3)
TRTX 2019-FL3
Collateral loan investments5
Term SOFR(4)
$345,150$220,5623.66 %1.7
Financing provided1
Term SOFR(4)
154,291154,2912.38 %10.8
TRTX 2021-FL4
Collateral loan investments21
Term SOFR(5)
1,070,968961,6043.63 %2.5
Financing provided1
Term SOFR(5)
858,468856,7471.80 %14.2
TRTX 2022-FL5
Collateral loan investments15
Term SOFR(6)
1,075,0001,059,2393.61 %3.0
Financing provided1
Term SOFR(6)
907,031904,1362.02 %15.1
Total
Collateral loan investments(7)
41Term SOFR$2,491,118$2,241,4053.62 %2.6 years
Financing provided(8)
3Term SOFR$1,919,790$1,915,1741.95 %14.3 years
________________________________
(1)Includes loan amounts held in the Company's CRE CLOs and excludes other loans held for investment, net of $3.9 million held within the Sub-REIT.
(2)Weighted average spread excludes the amortization of loan fees and deferred financing costs.
(3)Loan term represents weighted average final maturity, assuming extension options are exercised by the borrower. Repayments of CRE CLO notes are dependent on timing of related loan repayments post-reinvestment period. The term of the CRE CLO notes represents the rated final distribution date.
(4)On October 1, 2021, the benchmark index interest rate for borrowings under TRTX 2019-FL3 was converted from Compounded SOFR to Term SOFR by the designated transaction representative under the FL3 indenture. The Company exercised its right to convert the mortgage assets' benchmark interest rate from LIBOR to Term SOFR to eliminate the difference between benchmark rates used for the assets and liabilities of the CRE CLO. As of December 31, 2023, the TRTX 2019-FL3 mortgage assets are indexed to Term SOFR.
(5)On May 15, 2023, the benchmark index interest rate for borrowings under TRTX 2021-FL4 was converted from LIBOR to Term SOFR by the designated transaction representative under the FL4 indenture. The Company exercised its right to convert the mortgage assets' benchmark interest rate from LIBOR to Term SOFR to eliminate the difference between benchmark rates used for the assets and liabilities of the CRE CLO.
(6)The Company had the ability to convert the interest rate benchmark from Compounded SOFR to Term SOFR once 50% of the underlying mortgage loans were converted to Term SOFR. On September 12, 2023, the benchmark interest rate for borrowings under TRTX 2022-FL5 was converted from Compounded SOFR to Term SOFR by the designated transaction representative under the FL5 indenture. As of December 31, 2023, all of the TRTX 2022-FL5 mortgage assets are indexed to Term SOFR.
(7)Collateral loan investment assets of FL3, FL4, and FL5 represent 9.9%, 30.7%, and 30.9%, respectively, of the aggregate unpaid principal balance of the Company's loans held for investment portfolio as of December 31, 2023.
(8)During the year ended December 31, 2023, the Company recognized interest expense of $153.3 million, which includes $5.0 million of deferred financing cost amortization and is reflected within the Company's consolidated statements of income (loss) and comprehensive income (loss).
v3.25.0.1
Investment Portfolio Financing
12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Investment Portfolio Financing Investment Portfolio Financing
The Company finances its portfolio of loans, or participation interests therein, and REO using secured financing agreements, including secured credit agreements, secured revolving credit facilities, asset-specific financing arrangements, collateralized loan obligations, and mortgages.
The following table summarizes the Company's investment portfolio financing (dollars in thousands):
Outstanding principal balance
December 31, 2024December 31, 2023
Collateralized loan obligations(1)
$1,682,288 $1,919,790 
Secured credit agreements585,042 799,518 
Asset-specific financing arrangements186,500 274,158 
Secured revolving credit facility86,625 23,782 
Mortgage loan payable31,200 31,200 
Total$2,571,655 $3,048,448 
________________________________
(1)See Note 5 for additional information regarding the Company's collateralized loan obligations.
Secured Credit Agreements
As of December 31, 2024 and December 31, 2023, the Company had secured credit agreements used to finance certain of the Company’s loan investments. These financing arrangements bear interest at rates equal to Term SOFR plus a credit spread negotiated between the Company and each lender, often a separate credit spread for each pledge of collateral, which is primarily based on property type and advance rate against the unpaid principal balance of the pledged loan. These borrowing arrangements contain defined mark-to-market provisions that permit our lenders to issue margin calls to the Company only in the event that the collateral properties underlying the Company’s loans pledged to the Company’s lenders experience a non-temporary decline in value (“credit marks”) due to reasons other than capital markets events that result in changing credit spreads for similar borrowing obligations.
The following table presents certain information regarding the Company’s secured credit agreements. Except as otherwise noted, all agreements are on a partial (25%) recourse basis (dollars in thousands):
December 31, 2024
Secured credit agreements(1)
Initial
maturity date
Extended
maturity date
Index
rate
Weighted average
credit spread
Weighted average interest rate Commitment
amount
Maximum
current availability
Balance
outstanding
Principal balance
of collateral
Amortized cost
of collateral
Goldman Sachs(2)
08/19/2608/19/28Term SOFR2.2 %6.6 %$500,000 $238,879 $261,121 $485,557 $485,207 
Wells Fargo(3)
12/06/2712/06/27Term SOFR1.7 %6.0 %500,000 274,470 225,530 295,833 294,810 
Barclays08/13/2508/13/26Term SOFR1.7 %6.0 %500,000 437,474 62,526 84,827 84,754 
Bank of America06/06/2606/06/26Term SOFR1.8 %6.1 %200,000 164,135 35,865 50,824 50,824 
Totals$1,700,000 $1,114,958 $585,042 $917,041 $915,595 
________________________________
(1)Borrowings under secured credit agreements with a 25% recourse guarantee from Holdco. Each secured credit agreement contains defined mark-to-market provisions that permit the lenders to issue margin calls based on credit marks.
(2)On January 31, 2024, the Company executed a two-year extension of the secured credit agreement through August 19, 2026. Until such date, new and revolving borrowings are permitted. After such date, the secured credit agreement automatically enters a two-year term-out period through August 19, 2028.
(3)On December 6, 2024, the Company executed a three-year extension of the secured credit agreement through December 6, 2027.

On May 2, 2024, the Company executed a short-term extension of the Morgan Stanley secured credit agreement's maturity to June 3, 2024, and on June 3, 2024 executed a further short-term extension to July 3, 2024. On June 21, 2024, the Company repaid the $1.8 million outstanding under the Morgan Stanley secured credit agreement and on June 28, 2024 terminated the financing arrangement prior to its July 3, 2024 maturity date.
December 31, 2023
Secured credit agreements(1)
Initial
maturity date
Extended
maturity date
Index
rate
Weighted average
credit spread
Weighted average
interest rate
Commitment
amount
Maximum
current availability
Balance
outstanding
Principal balance
of collateral
Amortized cost
of collateral
Goldman Sachs(2)
08/19/2408/19/24Term SOFR2.2 %7.5 %$500,000 $206,403 $293,597 $376,694 $376,440 
Wells Fargo04/18/2504/18/25Term SOFR1.9 %7.3 %500,000 164,394 335,606 440,804 439,773 
Barclays08/13/2508/13/26Term SOFR2.0 %7.3 %500,000 367,374 132,626 178,827 178,509 
Morgan Stanley(3)
05/04/2405/04/24Term SOFR1.9 %7.2 %500,000 498,176 1,824 10,570 10,570 
Bank of America(4)
06/06/2606/06/26Term SOFR1.8 %7.1 %200,000 164,135 35,865 50,194 50,194 
Totals$2,200,000 $1,400,482 $799,518 $1,057,089 $1,055,486 
________________________________
(1)Borrowings under secured credit agreements with a 25% recourse guarantee from Holdco. Each secured credit agreement contains defined mark-to-market provisions that permit the lenders to issue margin calls based on credit marks.
(2)On August 18, 2023, the Company executed an extension of the secured credit agreement's maturity to August 19, 2024. On January 31, 2024, the Company executed a two-year extension of the secured credit agreement through August 19, 2026. During the two-year extension period, new and revolving borrowings are permitted, after which the secured credit agreement automatically enters a two-year term-out period through August 19, 2028.
(3)On March 17, 2023, the Company executed an extension of the secured credit agreement's maturity that is effective May 4, 2023 with a one year term maturing on May 4, 2024.
(4)On March 20, 2023, the Company executed a short-term extension of the secured credit agreement's maturity to May 30, 2023, and on May 25, 2023 executed a further short-term extension to June 6, 2023. On June 6, 2023, the secured credit agreement's initial and extended maturity was extended to June 6, 2026.
Secured Credit Agreement Terms
As of December 31, 2024 and December 31, 2023, the Company had four and five, respectively, secured credit agreements to finance its loan investing activities. Credit spreads vary depending upon the collateral type, advance rate and other factors. Assets pledged as of December 31, 2024 and December 31, 2023 consisted of 21 and 28 mortgage loans, or participation interests therein, respectively. Under three of the four secured credit agreements, the Company transfers all of its rights, title and interest in the loans to the secured credit agreement 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 secured credit agreement lender collects all principal and interest on related loans and remits to the Company the net amount after the lender collects its interest and other fees. For the fourth secured credit agreement, which until June 6, 2023 was a mortgage warehouse facility, the lender received a security interest (pledge) in the loans financed under the arrangement. Effective June 6, 2023, this credit facility was extended for three years and converted from a mortgage warehouse facility to a secured credit facility similar to the Company's other secured credit facilities. The secured credit agreements used to finance loan investments are 25% recourse to Holdco.
Under each of the Company’s secured credit agreements, the Company is required to post margin for changes in conditions to specific loans that serve as collateral for those secured credit agreements. The lender’s margin amount is limited to collateral-specific credit marks based on non-temporary declines in the value of the properties securing the underlying loan collateral. Market value determinations and redeterminations may be made by the repurchase lender in its sole discretion subject to certain specified parameters. These considerations only include credit-based factors unrelated to the capital markets.
The following table summarizes certain characteristics of the Company’s secured credit agreements secured by mortgage loan investments, including counterparty concentration risks (dollars in thousands):
December 31, 2024
Secured credit agreementsCommitment
amount
UPB of
collateral
Amortized cost
of collateral(1)
Amount
payable(2)
Net counterparty exposure(3)
Percent of
stockholders' equity
Days to
extended maturity
Goldman Sachs Bank$500,000 $485,557 $489,121 $261,705 $227,416 20.4 %1327
Wells Fargo500,000 295,833 295,815 226,028 69,787 6.3 %1070
Barclays500,000 84,827 84,750 62,681 22,069 2.0 %590
Bank of America200,000 50,824 51,089 35,899 15,190 1.4 %522
Total / weighted average$1,700,000 $917,041 $920,775 $586,313 $334,462 1100
_______________________
(1)Loan amounts include interest receivable of $5.2 million and are net of premium, discount and origination fees of $1.4 million.
(2)Loan amounts include interest payable of $1.3 million and do not reflect unamortized deferred financing fees of $0.8 million.
(3)Loan amounts represent the net carrying value of the commercial real estate loans 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.
The following table summarizes certain characteristics of the Company’s secured credit agreements secured by mortgage loan investments, including counterparty concentration risks (dollars in thousands):
 December 31, 2023
Secured credit agreementsCommitment
amount
UPB of
collateral
Amortized cost
of collateral(1)
Amount
payable(2)
Net counterparty exposure(3)
Percent of
stockholders' equity
Days to
extended maturity
Goldman Sachs Bank$500,000 $376,694 $379,012 $294,258 $84,754 7.5 %232
Wells Fargo500,000 440,804 443,923 336,539 107,384 9.5 %474
Barclays500,000 178,827 179,152 133,100 46,052 4.1 %956
Morgan Stanley Bank500,000 10,570 10,710 1,871 8,839 0.8 %125
Bank of America200,000 50,194 50,484 35,911 14,573 1.3 %888
Total / weighted average$2,200,000 $1,057,089 $1,063,281 $801,679 $261,602  483
_______________________
(1)Loan amounts include interest receivable of $7.8 million and are net of premium, discount and origination fees of $1.6 million.
(2)Loan amounts include interest payable of $2.2 million and do not reflect unamortized deferred financing fees of $1.5 million.
(3)Loan amounts represent the net carrying value of the commercial real estate loans 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.
Secured Revolving Credit Facility
On February 22, 2022, the Company closed a $250.0 million secured revolving credit facility with a syndicate of five lenders. During the fourth quarter of 2022, an additional lender was added to the facility, increasing the borrowing capacity to $290.0 million. This facility has an initial term of three years, an interest rate of Term SOFR plus 2.00% that is payable monthly in arrears, and an unused fee of 15 or 20 basis points, depending upon whether utilization exceeds 50.0%. During the year ended December 31, 2024 and 2023, the weighted average unused fee was 20 and 20 basis points, respectively. The facility generally provides the Company with interim financing of eligible loans for up to 180 days at an initial advance rate of 75.0%, which declines to 65.0%, 45.0%, and 0.0% after 90, 135, and 180 days from initial borrowing, respectively, depending on the likely source of refinancing. This facility is 100% recourse to Holdco. For the quarters ended September 30, 2023 and December 31, 2023, the Company received a waiver with respect to the minimum interest coverage ratio covenant included in this facility and in doing so, each of the facility's advance rates was reduced during the waiver period by five points.
As of December 31, 2024, the Company pledged one loan investment with a collateral principal balance of $115.5 million and had outstanding Term SOFR-based borrowings of $86.6 million under its secured revolving credit facility. As of December 31, 2023, the Company pledged one loan investment with a collateral principal balance of $32.8 million and had outstanding Term SOFR-based borrowings of $23.8 million.
Asset-Specific Financing Arrangements
On December 5, 2023, the Company closed a $90.6 million asset-specific financing facility with HSBC Bank USA, National Association ("HSBC Facility"). On September 26, 2024, the Company added an additional loan to the loan financing facility, increasing the total facility size by $72.0 million. The facility provides asset-specific financing on a non-mark-to-market, matched term basis. This facility is 20% recourse to Holdco. The advance rate and borrowing rate are determined separately for each loan financed under the facility.
On June 30, 2022, the Company closed a $200.0 million loan financing facility with BMO Harris Bank ("BMO Facility"). The facility provides asset-specific financing on a non-mark-to-market, matched term basis. This facility is 25% recourse to Holdco. The advance rate and borrowing rate are determined separately for each loan financed under the facility.
On November 17, 2022, the Company closed a $23.3 million asset-specific financing arrangement with Customers Bank. The arrangement is non-mark-to-market, matched term, and non-recourse.
The following table details the Company's asset-specific financing arrangements (dollars in thousands):
December 31, 2024
FinancingCollateral
Asset-specific financingCountCommitment amountOutstanding principal balance
Carrying
value(1)
Wtd. avg.
spread(2)
Wtd. avg.
term(3)
CountOutstanding principal balanceAmortized costWtd. avg.
term
HSBC Facility1$144,114 $136,011 $135,451 2.0 %3.63$188,995 $187,958 3.6
BMO Facility1200,000 29,110 29,046 2.0 %2.7138,468 38,365 2.7
Customers Bank123,250 21,379 21,244 2.5 %2.7129,417 29,346 2.7
Total / weighted average$367,364 $186,500 $185,741 2.1 %3.4 years$256,880 $255,669 3.4 years
_______________________
(1)Net of $0.8 million unamortized deferred financing costs.
(2)Collateral loan assets and related financings are indexed to Term SOFR.
(3)Borrowings are term-matched to the corresponding collateral loan asset. The weighted average term assumes all extension options of the collateral loan assets are exercised by the borrower.
The Company repaid all outstanding borrowings under the Company's former $397.9 million asset-specific financing arrangement with an Institutional Lender ("Institutional Lender 2") during the three months ended March 31, 2024.
The following table details the Company's asset-specific financing arrangements (dollars in thousands):
December 31, 2023
FinancingCollateral
Asset-specific financingCountCommitment amountOutstanding principal balance
Carrying
value(1)
Wtd. avg.
spread(2)
Wtd. avg.
term(3)
CountOutstanding principal balanceAmortized costWtd. avg.
term
HSBC Facility1$90,564 $82,143 $81,351 2.1 %3.53$117,343 $116,694 3.5
BMO Facility1200,000 29,110 28,883 2.0 %3.7137,623 37,370 3.7
Institutional Lender 2(4)
1141,526 141,526 141,526 3.5 %1.12136,057 134,319 1.4
Customers Bank123,250 21,379 21,050 2.5 %3.7128,956 28,784 3.7
Total / weighted average$455,340 $274,158 $272,810 2.8 %2.3 years$319,979 $317,167 2.6 years
_______________________
(1)Net of $1.3 million unamortized deferred financing costs.
(2)Collateral loan assets and related financings are indexed to Term SOFR.
(3)Borrowings are term-matched to the corresponding collateral loan asset. The weighted average term assumes all extension options of the collateral loan assets are exercised by the borrower.
(4)Collateral includes one loan and a receivable owed pursuant to the terms of a co-lender agreement and servicing agreement, of which $88.0 million of this borrowing was repaid in January 2024. The remaining borrowings under this asset-specific financing arrangement were repaid during the three months ended March 31, 2024.
Mortgage Loan Payable
The Company, through a wholly owned special purpose subsidiary, is the borrower under a $31.2 million, non-recourse mortgage loan secured by a deed of trust against an REO asset. The first mortgage loan was provided by an institutional lender, has an interest-only term of five years with a maturity of July 6, 2028 and bears interest at a rate of 7.7%. As of December 31, 2024 and December 31, 2023, the carrying value of the loan was $30.7 million and $30.6 million, respectively.
Financial Covenant Compliance
Our financial covenants and guarantees for outstanding borrowings related to our secured financing agreements require Holdco to maintain compliance with the following financial covenants (among others):
Financial CovenantCurrent
Cash Liquidity
Minimum cash liquidity of no less than the greater of: $15.0 million; and 5.0% of Holdco’s recourse indebtedness.
Tangible Net Worth
$1.0 billion, plus 75% of all subsequent equity issuances (net of discounts, commissions, expense), minus 75% of the redeemed or repurchased preferred or redeemable equity or stock.
Debt-to-Equity
Debt-to-Equity ratio not to exceed 4.25 to 1.0.
Interest Coverage
Minimum interest coverage ratio of no less than 1.4 to 1.0, effective June 30, 2023. Previously, 1.5 to 1.0.
The financial covenants and guarantees for outstanding borrowings related to the Company’s secured credit agreements and secured revolving credit facility require Holdco to maintain compliance with certain financial covenants. The uncertain long-term impact of global macroeconomic conditions, including heightened inflation, slower growth or recession, changes to fiscal and monetary policy, sustained higher interest rates, currency fluctuations, labor shortages and structural shifts and regulatory changes in the banking sector, on the commercial real estate markets and global capital markets may make it more difficult to meet or satisfy these covenants, and there can be no assurance that the Company will remain in compliance with these covenants in the future.
Financial Covenant Compliance
Effective September 30, 2023, the Company obtained from its lenders a waiver with respect to the minimum interest coverage ratio covenant. The waiver reduced the minimum interest coverage ratio to 1.30 to 1.0 from 1.40 to 1.0 for the quarters ended September 30, 2023 and December 31, 2023. The interest coverage ratio threshold reverted to 1.40 to 1.0 for the quarter ending March 31, 2024 and thereafter.
Investment Portfolio Financing Financial Covenant Compliance
The Company was in compliance with all financial covenants for its investment portfolio financing arrangements to the extent of outstanding balances as of December 31, 2024 and December 31, 2023, respectively.
v3.25.0.1
Schedule of Maturities
12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Schedule of Maturities Schedule of Maturities
As of December 31, 2024, future principal payments for the following five years and thereafter are as follows (dollars in thousands):
YearTotal indebtedness
Collateralized loan obligations(1)
Secured credit agreements(2)
Secured revolving credit facility(2)
Asset-specific financing arrangements(3)
Mortgage loan payable
2025$342,520 $193,369 $62,526 $86,625 $— $— 
2026891,359 855,494 35,865 — — — 
2027689,659 377,252 225,530 — 86,877 — 
2028482,955 162,711 261,121 — 27,923 31,200 
2029165,162 93,462 — — 71,700 — 
Thereafter— — — — — — 
Total$2,571,655 $1,682,288 $585,042 $86,625 $186,500 $31,200 
(1)The scheduled maturities for the investment grade bonds issued by the Company's CRE CLOs are based upon the fully extended maturity of the underlying mortgage loan collateral, considering the reinvestment window of each CRE CLO.
(2)The scheduled maturities of the Company's secured credit agreement liabilities are based on the extended maturity date for the specific credit agreement where extension options are at the Company's option, subject to standard default provisions, or the current maturity date of those credit agreements where extension options are subject to counterparty approval.
(3)The scheduled maturities of the Company's asset-specific financing arrangements are based on the fully extended maturity date of the underlying mortgage loan collateral
v3.25.0.1
Fair Value Measurements
12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The Company’s consolidated balance sheet includes Level I fair value measurements related to cash equivalents, restricted cash, accounts receivable, and accrued liabilities. As of December 31, 2024 and December 31, 2023, the Company had $124.7 million and $172.7 million, respectively, 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, the assets and liabilities of its CLOs, secured credit agreements, and asset-specific financing arrangements that are considered Level III fair value measurements. Level III items 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 and when the loan is dependent solely on the collateral for payment of principal and interest.
The following tables provide information about the fair value of the Company’s financial assets and liabilities on the Company’s consolidated balance sheets (dollars in thousands):
December 31, 2024
Fair value
Principal balanceCarrying valueLevel ILevel IILevel III
Financial assets  
Loans held for investment$3,284,510 $3,217,030 $— $— $3,258,017 
Financial liabilities
Collateralized loan obligations1,682,288 1,681,660 — — 1,661,615 
Secured credit agreements585,042 584,235 — — 580,921 
Asset-specific financing arrangements186,500 185,741 — — 186,006 
Secured revolving credit facility86,625 86,492 — — 86,625 
Mortgage loan payable31,200 30,695 — — 31,200 
December 31, 2023
Fair value
Principal balanceCarrying valueLevel ILevel IILevel III
Financial assets  
Loans held for investment$3,484,052 $3,409,684 $— $— $3,446,648 
Financial liabilities  
Collateralized loan obligations1,919,790 1,915,174 — — 1,893,803 
Secured credit agreements799,518 798,060 — — 791,495 
Asset-specific financing arrangements274,158 272,810 — — 273,218 
Secured revolving credit facility23,782 22,764 — — 23,323 
Mortgage loan payable31,200 30,551 — — 31,200 
As of December 31, 2024 and December 31, 2023, the estimated fair value of the Company’s loans held for investment portfolio was $3.3 billion and $3.4 billion, respectively, which approximated carrying value. The weighted average gross credit spread for the Company’s loans held for investment portfolio as of December 31, 2024 and December 31, 2023 was 3.68% and 3.73%, respectively. The weighted average years to maturity as of December 31, 2024 and December 31, 2023 was 2.4 years and 2.6 years, respectively, assuming full extension of all loans held for investment.
As of December 31, 2024 and December 31, 2023, the estimated fair value of the collateralized loan obligation liabilities and secured credit agreements approximated fair value since current borrowing spreads reflect current market terms.
Level III fair values are determined based on standardized valuation models and significant unobservable market inputs, including holding period, discount rates based on LTV, property type and loan pricing expectations developed by the Manager that were corroborated with other institutional lenders to determine market spreads that are added to the forward curve of the underlying benchmark interest rate. There were no transfers of financial assets or liabilities within the levels of the fair value hierarchy during the year ended December 31, 2024.
v3.25.0.1
Income Taxes
12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company indirectly owns 100% of the equity of TRSs. TRSs are subject to applicable U.S. federal, state, local and foreign income tax on their 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 TRSs 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 tax authorities until the related statute of limitations expires. The years open to examination generally range from 2021 to present.
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, 2024 and December 31, 2023, based on the Company’s evaluation, the Company did not have any material 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 (loss) and comprehensive income (loss). For the year ended December 31, 2024 and 2023, the Company did not have interest or penalties associated with the underpayment of any income taxes.
The Company owns, through an entity classified as a partnership for U.S. federal tax purposes (“Parent LLC”), 100% of the common equity in Sub-REIT, which qualifies as a REIT for U.S. federal income tax purposes and is a separate taxpayer from both the Company and Parent LLC. Parent LLC is owned by the Company both directly and indirectly through a TRS. The Company, through Sub-REIT, issues CRE CLOs to finance on a non-recourse, non-mark-to-market basis a large proportion of its loan investment portfolio. Due to unusually low LIBOR rates between March 2020 and September 2022, coupled with high interest rate floors relating to many loans and participation interests pledged to Sub-REIT’s CLOs, certain of Sub-REIT’s CRE CLOs have in the past generated EII, which may be treated as UBTI. Published IRS guidance requires that Sub-REIT allocate its EII among its shareholders in proportion to its dividends paid. Accordingly, EII generated by Sub-REIT’s CRE CLOs is allocated to Parent LLC. Pursuant to the Parent LLC operating agreement, any EII allocated from Sub-REIT to Parent LLC is allocated further to the TRS. Consequently, no EII is allocated to the Company and, as a result, the Company’s shareholders will not be allocated any EII (or UBTI attributable to such EII) by the Company. The tax liability borne by the TRS on the EII is approximately 21%. This tax liability is included in the consolidated statements of income (loss) and comprehensive income (loss) and balance sheets of the Company.
The following table details the income tax treatment for dividends declared on the Company's common stock:
For the Years Ended December 31,
2024(1)
2023(2)
2022
Ordinary income dividends$0.80 $0.12 $0.95 
Return of capital0.16 0.61 — 
Total common stock dividends$0.96 $0.73 $0.95 
________________________________
(1)The Company declared $0.96 of common stock dividends during the year ended December 31, 2024. Pursuant to IRC Section 857(b)(9), cash distributions made on January 24, 2025 with a record date of December 27, 2024 are treated for federal income tax purposes as received by shareholders on December 31, 2024 to the extent of the Company’s 2024 earnings and profits. As the Company’s aggregate 2024 dividends declared exceeded its 2024 earnings and profits, the January 2025 cash distribution declared in the fourth quarter of 2024 will be treated as a 2025 distribution for federal income tax purposes and will not be included on the 2024 Form 1099-DIV.
(2)The Company declared $0.96 of common stock dividends during the year ended December 31, 2023. Pursuant to IRC Section 857(b)(9), cash distributions made on January 25, 2024 with a record date of December 29, 2023 are treated for federal income tax purposes as received by shareholders on December 31, 2023 to the extent of the Company’s 2023 earnings and profits. As the Company’s aggregate 2023 dividends declared exceeded its 2023 earnings and profits, the January 2024 cash distribution declared in the fourth quarter of 2023 will be treated as a 2024 distribution for federal income tax purposes and will not be included on the 2023 Form 1099-DIV.
For the year ended December 31, 2024, 2023 and 2022, the Company recognized $0.4 million, $0.3 million, and $0.5 million, respectively, of federal, state, and local tax expense.
As of December 31, 2024, the Company had no income tax assets and no income tax liability recorded for the operating activities of the Company’s TRSs. As of December 31, 2023, the Company had no income tax assets and a $0.02 million income tax liability recorded for the operating activities of the Company’s TRSs.
As of December 31, 2021, the Company had $187.6 million of remaining capital losses that it can carry forward into future years. During the year ended December 31, 2022, the Company utilized $13.3 million of the $187.6 million of available remaining capital loss carryforwards to offset the capital gain generated from the partial sale of a REO in April 2022. During the year ended December 31, 2023, the Company incurred a capital loss of $19.8 million from the sale of an acquired loan. As of December 31, 2024, the Company has $194.1 million of capital losses, of which $174.3 million and $19.8 million will expire at the end of 2025 and 2028, respectively, if unused.
The Company does not expect these capital loss carryforwards to reduce the amount that the Company will be required to distribute in accordance with the requirement that the Company distribute to its stockholders at least 90% of the Company’s REIT taxable income (computed without regard to the deduction for dividends paid and excluding net capital gain) each year to continue to qualify as a REIT.
v3.25.0.1
Related Party Transactions
12 Months Ended
Dec. 31, 2024
Related Party Transactions [Abstract]  
Related Party Transactions Related Party Transactions
Management Agreement
The Company is externally managed and advised by the Manager pursuant to the terms of a management agreement between the Company and the Manager (as amended, the “Management Agreement”). 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) or 1.50% per annum (0.375% per quarter) of the Company’s “Equity” as defined in the Management Agreement. Net proceeds from the issuance of Series B and Series C Preferred Stock are included in the Company’s Equity for purposes of determining the base management fee using the same daily weighted average method as is utilized for common equity. The base management fee is payable in cash, quarterly in arrears. The Manager is also entitled to incentive compensation which is calculated and payable in cash with respect to each calendar quarter 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, 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, 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. 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 is greater than zero. For purposes of calculating the Manager’s incentive compensation, the Management Agreement specifies that equity securities of the Company or any of the Company’s subsidiaries that are entitled to a specified periodic distribution or have other debt characteristics will not constitute equity securities and will not be included in “Equity” for the purpose of calculating incentive compensation. Instead, the aggregate distribution amount that accrues to such equity securities during the calendar quarter of such calculation will be subtracted from Core Earnings, before incentive compensation for purposes of calculating incentive compensation, unless such distribution is otherwise excluded from Core Earnings.
Core Earnings, as defined in the Management Agreement, means the net income (loss) attributable to the holders of the Company’s common stock and Class A common stock (in those periods in which such Class A shares were outstanding) and, without duplication, the holders of the Company’s subsidiaries’ equity securities (other than the Company or any of the Company’s subsidiaries), computed in accordance with GAAP, including realized gains and losses not otherwise included in net income (loss), and excluding (i) non-cash equity compensation expense, (ii) the incentive compensation, (iii) depreciation and amortization, (iv) any unrealized gains or losses, including an allowance for credit losses, or other similar non-cash items that are included in net income for the applicable period, regardless of whether such items are included in other comprehensive income or loss or in net income and (v) one-time events pursuant to changes in GAAP and certain material non-cash income or expense items, in each case after discussions between the Manager and the Company’s independent directors and approved by a majority of the Company’s independent directors.
Management Fees and Incentive Management Fees Incurred and Paid
The following table details the management fees and incentive management fees incurred and paid pursuant to the Management Agreement (dollars in thousands):
Years Ended December 31,
202420232022
Incurred
Management fees$20,249 $22,426 $23,455 
Incentive management fee— 5,183
Total management and incentive fees incurred$20,249 $22,426 $28,638 
Paid
Management fees$20,051 $23,497 $23,080 
Incentive management fee— — 5,183 
Total management and incentive fees paid$20,051 $23,497 $28,263 
Management fees and incentive management fees included in payable to affiliates on the consolidated balance sheets as of December 31, 2024 and December 31, 2023 are $5.1 million and $4.9 million, respectively. No incentive management fee was earned during the year ended December 31, 2024 and 2023. During the year ended December 31, 2022, the Manager earned $5.2 million of incentive management fees.
Termination Fee
A termination fee would be due 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.
Other Related Party Transactions
The Manager or its affiliates is responsible for the expenses related to the personnel of the Manager and its affiliates who provide services to the Company. However, the Company does reimburse the Manager for agreed-upon amounts based upon the Company’s allocable share of the compensation (including, without limitation, annual base salary, bonus, any related withholding taxes and employee benefits) paid to (i) 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 (ii) 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. During the years ended December 31, 2024, 2023, and 2022 the Company reimbursed the Manager $1.5 million, $1.0 million, and $1.0 million, respectively, of expenses for services rendered on its behalf by the Manager and its affiliates.
The Company is required to pay the Manager or its affiliates for documented costs and expenses incurred with third parties by the Manager or its affiliates on behalf of the Company, subject to the Company’s review and approval of such costs and expenses. The Company’s obligation to pay for costs and expenses incurred on its behalf is not subject to a dollar limitation.
As of December 31, 2024 and December 31, 2023, no amounts remained outstanding and payable to the Manager or its affiliates for third-party expenses that were incurred on behalf of the Company. All expenses due and payable to the Manager are reflected in the respective expense category of the consolidated statements of income (loss) and comprehensive income (loss) or consolidated balance sheets based on the nature of the item.
The Company engaged SOP 2 Management, LLC, a portfolio company owned by an affiliate of TPG, Inc., to provide a specified scope of asset management services related to the Company's REO properties. During the year ended December 31, 2024, the Company incurred $1.4 million of expenses for these services.
v3.25.0.1
Earnings per Share
12 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
Earnings per Share Earnings per Share
The Company calculates its basic and diluted earnings per share using the two-class method for all periods presented, which defines unvested stock-based compensation awards that contain nonforfeitable rights to dividends as participating securities. The two-class method is an allocation formula that determines earnings per share for each share of common stock and participating securities according to dividends declared and participation rights in undistributed earnings. Under this method, all earnings (distributed and undistributed) are allocated to common shares and participating securities based on their respective rights to receive dividends. The unvested restricted shares of the Company's common stock granted to certain current and former employees of affiliates of the Manager and affiliates of the Manager qualify as participating securities. These restricted shares have the same rights as the Company’s other shares of common stock, including participating in any dividends, and therefore are included in the Company’s basic and diluted earnings per share calculation. For the years ended December 31, 2024, 2023, and 2022, $2.1 million, $1.7 million, and $1.0 million, respectively, of common stock dividends declared and undistributed net income attributable to common stockholders were allocated to unvested shares of our common stock pursuant to stock grants made under the Company’s Incentive Plan. See Note 12 for details.
The computation of diluted earnings per common share is based on the weighted average number of participating securities outstanding plus the incremental shares that would be outstanding assuming exercise of the Warrants. The number of incremental common shares is calculated utilizing the treasury stock method. As discussed below in Note 12, on May 8, 2024, all of the Warrants were exercised on a net settlement basis, resulting in the issuance of 2,647,059 shares of the Company's common stock. As of December 31, 2024, there were no Warrants outstanding. For the year ended December 31, 2023 and 2022, 188,571 and 2,881,459 warrants, respectively, are excluded from the calculation of diluted earnings per common share since their effect would be anti-dilutive. For the years ended December 31, 2024, 2023, and 2022, 142,388, 376,444, and 605,936 participating securities, respectively, are excluded from the calculation of diluted earnings per common share since their effect would be anti-dilutive.
The following table sets forth the calculation of basic and diluted earnings per common share based on the weighted average number of shares of common stock outstanding (dollars in thousands, except share and per share data):
Year Ended December 31,
202420232022
Net income (loss)$74,335 $(116,630)$(60,066)
Preferred stock dividends(1)
(12,592)(12,592)(12,592)
Participating securities' share in earnings(2,077)(1,683)(986)
Net income (loss) attributable to common stockholders$59,666 $(130,905)$(73,644)
Weighted average common shares outstanding, basic79,801,990 77,575,788 77,296,524 
Weighted average common shares outstanding, diluted79,888,044 77,575,788 77,296,524 
Earnings (loss) per common share, basic(2)
$0.75 $(1.69)$(0.95)
Earnings (loss) per common share, diluted(2)
$0.75 $(1.69)$(0.95)
_______________________
(1)Includes preferred stock dividends declared and paid on outstanding shares of Series A Preferred Stock and Series C Preferred Stock.
(2)Basic and diluted earnings per common share are computed independently based on the weighted average shares of common stock outstanding. Diluted earnings per common share includes the impact of participating securities outstanding. Prior to the May 8, 2024 Warrant exercise, diluted earnings per common share included any incremental shares that would be outstanding assuming the exercise of the Warrants. The sum of the quarterly earnings (loss) per common share amounts may not agree to the total for the years ended December 31, 2024, 2023, and 2022.
v3.25.0.1
Stockholders' Equity
12 Months Ended
Dec. 31, 2024
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Stockholders' Equity
Series C Cumulative Redeemable Preferred Stock
On June 14, 2021, the Company received net proceeds of $194.4 million from the sale of the 8,050,000 shares of Series C Preferred Stock after deducting the underwriting discount and commissions of $6.3 million and issuance costs of $0.6 million. The Company used the net proceeds from the offering to partially fund the redemption of all of the outstanding shares of the Company’s Series B Preferred Stock. The Series C Preferred Stock is currently listed on the NYSE under the symbol “TRTX PRC.” In connection with the Series C Preferred Stock issuance the Company paid TPG Capital BD, LLC a $0.7 million underwriting discount and commission for its services as joint bookrunner. The underwriting discount and commission was settled net of the preferred stock issuance proceeds and recorded as a reduction to additional paid-in-capital in the Company’s consolidated statement of changes in equity at closing.
The Company’s Series C Preferred Stock has a liquidation preference of $25.00 per share. When, as, and if authorized by the Company’s Board of Directors and declared by the Company, dividends on Series C Preferred Stock will be payable quarterly in arrears on or about March 30, June 30, September 30, and December 30 of each year at a rate per annum equal to 6.25% per annum of the $25.00 per share liquidation preference ($1.5624 per share annually or $0.3906 per share quarterly). Dividends on the Series C Preferred Stock are cumulative. The first dividend on the Series C Preferred Stock was payable on September 30, 2021, and covered the period from, and including, June 14, 2021 to, but not including, September 30, 2021 and was in the amount of $0.4601 per share.
On and after June 14, 2026, the Company, at its option, upon not fewer than 30 days’ nor more than 60 days’ written notice, may redeem the Series C Preferred Stock, in whole, at any time, or in part, from time to time, for cash, at a redemption price of $25.00 per share, plus any accrued and unpaid dividends (whether or not declared) on such shares of Series C Preferred Stock to, but not including, the redemption date (other than any dividend with a record date before the applicable redemption date and a payment date after the applicable redemption date, which shall be paid on the payment date notwithstanding prior redemption of such shares).
Upon the occurrence of a Change of Control event, the holders of Series C Preferred Stock have the right to convert their shares solely into common stock at their request and do not have the right to request that their shares convert into cash or a combination of cash and common stock. The Company, upon the occurrence of a Change of Control event, at its option, upon not fewer than 30 days’ nor more than 60 days’ written notice, may redeem the shares of Series C Preferred Stock, in whole or in part, within 120 days after the first date on which such Change of Control occurred, for cash at a redemption price equal to $25.00 per share, plus any accrued and unpaid dividends (whether or not declared) to, but not including, the redemption date (other than any dividend with a record date before the applicable redemption date and a payment date after the applicable redemption date, which will be paid on the payment date notwithstanding prior redemption of such shares).
Holders of Series C Preferred Stock have no voting rights except as set forth in the Articles Supplementary for the Series C Preferred Stock.
Series B Cumulative Redeemable Preferred Stock and Warrants to Purchase Shares of Common Stock
On May 28, 2020, the Company issued 9,000,000 shares of the Company's 11.0% Series B Preferred Stock, par value $0.001 per share (the "Series B Preferred Stock"), and Warrants to purchase up to 12,000,000 shares of the Company's common stock to PE Holder L.L.C., a Delaware limited liability company (the “Purchaser”), an affiliate of Starwood Capital Group Global II, L.P., for an aggregate purchase price of $225.0 million. On June 16, 2021, the Company redeemed all 9,000,000 outstanding shares of the Series B Preferred Stock at an aggregate redemption price of approximately $247.5 million.
The Warrants were exercisable on a net settlement basis and would have expired on May 28, 2025. The Warrants were classified as equity and were initially recorded at their estimated fair value of $14.4 million with no subsequent remeasurement. On May 8, 2024, the Purchaser exercised all of the Warrants on a net settlement basis, and the Company issued 2,647,059 shares of the Company's common stock to the Purchaser. As of December 31, 2024, there were no Warrants outstanding.
Share Repurchase Program
On April 25, 2024, the Company's Board of Directors approved a share repurchase program pursuant to which the Company is authorized to repurchase up to $25.0 million of the Company's common stock. The repurchase program authorizes the repurchase of common stock from time to time on the open market or in privately negotiated transactions, including under 10b5-1 plans. The Company repurchased 4,603 shares of common stock, at a weighted average price of $7.98 per share, for total consideration (including commissions and related fees) of $0.04 million during the year ended December 31, 2024. As of December 31, 2024, the Company had $24.96 million of remaining capacity under its share repurchase program.
Dividends
Upon the approval of the Company’s Board of Directors, the Company accrues dividends. The Company intends to distribute each year not less than 90% of its taxable income to its stockholders to comply with the REIT provisions of the Internal Revenue Code. The Board of Directors will determine whether to pay future dividends, entirely in cash, or in a combination of stock and cash based on facts and circumstances at the time such decisions are made.
On December 13, 2024, the Company’s Board of Directors declared and approved a cash dividend of $0.24 per share of common stock, or $20.0 million in the aggregate, for the fourth quarter of 2024. The common stock dividend was paid on January 24, 2025 to the holders of record of the Company’s common stock as of December 27, 2024.
On December 6, 2024, the Company’s Board of Directors declared a cash dividend of $0.3906 per share of Series C Preferred Stock, or $3.1 million in the aggregate, for the fourth quarter of 2024. The Series C Preferred Stock dividend was paid on December 30, 2024 to the preferred stockholders of record as of December 20, 2024.
On December 18, 2023, the Company’s Board of Directors declared and approved a cash dividend of $0.24 per share of common stock, or $19.2 million in the aggregate, for the fourth quarter of 2023. The common stock dividend was paid on January 25, 2024 to the holders of record of the Company’s common stock as of December 29, 2023.
On December 8, 2023, the Company’s Board of Directors declared a cash dividend of $0.3906 per share of Series C Preferred Stock, or $3.1 million in the aggregate, for the fourth quarter of 2023. The Series C Preferred Stock dividend was paid on December 29, 2023 to the preferred stockholders of record as of December 19, 2023.
For the year ended December 31, 2024 and 2023, common stock dividends in the amount of $78.7 million and $76.0 million, respectively, were declared and approved.
For the year ended December 31, 2024 and 2023, Series C Preferred Stock dividends in the amount of $12.6 million and $12.6 million, respectively, were declared and approved.
As of December 31, 2024 and December 31, 2023, common stock dividends of $20.0 million and $19.2 million, respectively, were unpaid and are reflected in dividends payable on the Company’s consolidated balance sheets.
v3.25.0.1
Stock-based Compensation
12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-based Compensation Stock-based Compensation
The Company does not have any employees. As of December 31, 2024, certain individuals employed by an affiliate of the Manager and certain members of the Company’s Board of Directors were compensated, in part, through the issuance of stock-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 compensation 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. The Incentive Plan will automatically expire on the tenth anniversary of its effective date, unless terminated earlier by the Company’s Board of Directors.
The following table details the outstanding common stock awards and includes the numbers of shares granted and weighted average grant date fair value per share under the Incentive Plan:
Common Stock
Weighted Average Grant Date Fair Value per Share
Balance as of December 31, 2021835,929 $13.16 
Granted1,141,926 7.93 
Vested(278,821)14.25 
Forfeited(15,594)12.06 
Balance as of December 31, 20221,683,440 $9.44 
Granted950,000 6.66 
Vested(527,831)10.55 
Forfeited(6,545)7.64 
Balance as of December 31, 20232,099,064 $7.91 
Granted990,100 8.51 
Vested(712,041)8.51 
Forfeited— — 
Balance as of December 31, 20242,377,123 $7.98 
Generally, common shares vest over a four-year period pursuant to the terms of the award and the Incentive Plan with the exception of deferred stock units granted to certain members of the Company's Board of Directors that are vested upon issuance.
The following table presents the number of shares associated with outstanding awards that will vest over the next four years:
Share Grant Vesting YearShares of Common Stock
2025875,674 
2026768,892 
2027485,053 
2028247,504 
Total2,377,123 
During the year ended December 31, 2024, the Company accrued 15,218 shares of common stock for dividends that are paid-in-kind to non-management members of its Board of Directors related to the dividends payable to holders of record of our common stock as of March 28, 2024, June 27, 2024, September 27, 2024, and December 27, 2024.
During the year ended December 31, 2023, the Company accrued 16,049 shares of common stock for dividends that are paid-in-kind to non-management members of its Board of Directors related to the dividends payable to holders of record of our common stock as of March 29, 2023, June 28, 2023, September 28, 2023, and December 29, 2023.
As of December 31, 2024, total unrecognized compensation costs relating to unvested stock-based compensation arrangements was $15.5 million. These compensation costs are expected to be recognized over a weighted average period of 1.3 years from December 31, 2024. For the years ended December 31, 2024, 2023, and 2022, the Company recognized $6.4 million, $8.0 million, and $5.1 million, respectively, of stock-based compensation expense.
v3.25.0.1
Commitments and Contingencies
12 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Unfunded Commitments
As part of its lending activities, the Company commits to certain funding obligations which are not advanced at loan closing and that have not been recognized in the Company’s consolidated financial statements. These commitments to extend credit are made as part of the Company’s loans held for investment portfolio and are generally utilized for capital expenditures, including base building work, tenant improvement costs and leasing commissions, and interest reserves. The aggregate amount of unrecognized unfunded loan commitments existing as of December 31, 2024 and December 31, 2023 was $127.9 million and $183.3 million, respectively.
The Company recorded an allowance for credit losses on loan commitments that are not unconditionally cancellable by the Company of $2.4 million and $2.7 million as of December 31, 2024 and December 31, 2023, respectively, which is included in accrued expenses and other liabilities on the Company’s 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, 2024 and December 31, 2023, the Company was not involved in any material legal proceedings and has not recorded an accrued liability for loss contingencies.
v3.25.0.1
Concentration of Credit Risk
12 Months Ended
Dec. 31, 2024
Risks and Uncertainties [Abstract]  
Concentration of Credit Risk Concentration of Credit Risk
Property Type
A summary of the Company’s portfolio of loans held for investment by property type based on total loan commitment and current unpaid principal balance (“UPB”) follows (dollars in thousands):
December 31, 2024
Property typeLoan commitmentUnfunded commitment
% of loan commitment
Loan UPB
% of loan UPB
Multifamily$1,777,221 $56,101 52.0 %$1,721,480 52.4 %
Office606,047 23,788 17.8 582,259 17.7 
Life Science368,573 14,019 10.8 354,554 10.8 
Hotel348,400 14,110 10.2 334,290 10.2 
Industrial166,000 16,400 4.9 149,600 4.6 
Mixed-Use78,775 3,448 2.3 75,327 2.3 
Self Storage67,000 — 2.0 67,000 2.0 
Total$3,412,016 $127,866 100.0 %$3,284,510 100.0 %
December 31, 2023
Property typeLoan commitmentUnfunded commitment
% of loan commitment
Loan UPB
% of loan UPB
Multifamily$1,801,668 $67,035 49.2 %$1,734,633 49.7 %
Office728,447 42,489 19.9 685,958 19.8 
Life Science404,600 31,739 11.0 372,861 10.7 
Hotel389,643 14,110 10.6 376,705 10.8 
Mixed-Use115,215 6,256 3.1 108,959 3.1 
Industrial107,000 7,504 2.9 99,496 2.9 
Self Storage69,000 2,000 1.9 67,000 1.9 
Other50,600 12,160 1.4 38,440 1.1 
Total$3,666,173 $183,293 100.0 %$3,484,052 100.0 %
Loan commitments exclude capitalized interest of $0.4 million and $1.2 million as of December 31, 2024 and December 31, 2023, respectively.
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 total loan commitment and current UPB follows (dollars in thousands):
December 31, 2024
Geographic regionLoan commitmentUnfunded commitment
% of loan commitment
Loan UPB
% of loan UPB
West$1,254,320 $47,318 36.7 %$1,207,362 36.8 %
East965,249 12,678 28.3 952,571 29.0 
South817,847 49,016 24.0 768,831 23.4 
Various309,000 16,800 9.1 292,200 8.9 
Midwest65,600 2,054 1.9 63,546 1.9 
Total$3,412,016 $127,866 100.0 %$3,284,510 100.0 %
December 31, 2023
Geographic regionLoan commitmentUnfunded commitment
% of loan commitment
Loan UPB
% of loan UPB
West$1,159,180 $62,263 31.6 %$1,096,917 31.5 %
East1,156,075 31,096 31.5 1,126,151 32.3 
South1,061,968 75,430 29.0 986,538 28.3 
Midwest149,950 8,743 4.1 141,207 4.1 
Various139,000 5,761 3.8 133,239 3.8 
Total$3,666,173 $183,293 100.0 %$3,484,052 100.0 %
Loan commitments exclude capitalized interest of $0.4 million and $1.2 million as of December 31, 2024 and December 31, 2023, respectively.
Category
A summary of the Company’s portfolio of loans held for investment by loan category based on total loan commitment and current UPB follows (dollars in thousands):
December 31, 2024
Loan categoryLoan commitmentUnfunded commitment
% of loan commitment
Loan UPB
% of loan UPB
Bridge$1,522,789 $27,472 44.6 %$1,495,677 45.5 %
Moderate Transitional1,009,038 63,063 29.6 945,975 28.8 
Light Transitional880,189 37,331 25.8 842,858 25.7 
Total$3,412,016 $127,866 100.0 %$3,284,510 100.0 %
December 31, 2023
Loan categoryLoan commitmentUnfunded commitment
% of loan commitment
Loan UPB
% of loan UPB
Bridge$1,540,873 $32,898 42.0 %$1,507,975 43.3 %
Moderate Transitional1,156,858 99,507 31.6 1,058,523 30.4 
Light Transitional917,842 38,728 25.0 879,114 25.2 
Construction50,600 12,160 1.4 38,440 1.1 
Total$3,666,173 $183,293 100.0 %$3,484,052 100.0 %
Loan commitments exclude capitalized interest of $0.4 million and $1.2 million as of December 31, 2024 and December 31, 2023, respectively.
v3.25.0.1
Subsequent Events
12 Months Ended
Dec. 31, 2024
Subsequent Events [Abstract]  
Subsequent Events Subsequent Events
The following events occurred subsequent to December 31, 2024:
Closed on February 13, 2025 a three-year extension and amendment to the Company's existing 100% recourse, secured revolving credit facility with a syndicate of seven lenders agented by Bank of America NA. Pursuant to the amendment, the commitment amount under the secured revolving credit facility increased to $375.0 million from $290.0 million, material economic and structural terms remain unchanged, and the new maturity date is February 13, 2028.
v3.25.0.1
Schedule IV - Mortgage Loans on Real Estate
12 Months Ended
Dec. 31, 2024
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract]  
Schedule IV - Mortgage Loans on Real Estate
Schedule IV - Mortgage Loans on Real Estate
As of December 31, 2024
(Dollars in Thousands)
Type of
Loan/Borrower(1)
Description / LocationInterest 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 ASenior Loan / San Jose
S+3.6%
2027I/O— 253,110 253,110 
Borrower BSenior Loan / New York
S+3.0%
2026I/O— 227,107 227,107 
Borrower CSenior Loan / Daly City
S+4.0%
2026I/O— 205,557 205,491 
Borrower DSenior Loan / Various
S+3.5%
2026I/O— 106,017 106,017 
Borrower ESenior Loan / New York
S+4.1%
2025I/O— 150,500 150,500 
Borrower FSenior Loan / Towson
S+3.5%
2026I/O— 113,025 113,025 
Borrower GSenior Loan / Hayward
S+3.2%
2026I/O— 102,573 102,573 
Borrower HSenior Loan / Various
S+3.3%
2029I/O— 109,700 108,943 
Borrower ISenior Loan / Various
S+3.4%
2030I/O— 115,500 114,211 
Senior Loans less than 3% of the carrying amount of total loans
Senior loanMultifamily / Diversified
Floating S+2.9% - 4.0%
2026 - 2029
I/O— 1,139,628 1,137,291 
Senior loanOffice / Diversified
Floating S+3.5% - 5.3%
2025 - 2027
I/O— 204,651 204,390 
Senior loanHotel / Diversified
Floating S+3.5% - 5.1%
2025 - 2029
I/O— 334,290 333,443 
Senior loanMixed-Use / CA
Floating S+4.1%
2025I/O— 75,327 75,327 
Senior loanLife Science / CA
Floating S+4.2%
2026
I/O— 46,425 46,337 
Senior loanIndustrial / TX
Floating S+3.5%
2028I/O— 34,100 33,892 
Senior loanSelf Storage / Diversified
Floating S+4.2%
2027
I/O— 67,000 66,931 
Total senior loans— 3,284,510 3,278,588 
Total loans— 3,284,510 3,278,588 
CECL reserve(6)
(61,558)
Total loans, net$3,217,030 
_______________________________
(1)Includes senior mortgage loans, contiguous subordinate loans, and pari passu participations in senior mortgage loans.
(2)Extended maturity date assumes all extension options are exercised.
(3)I/O = interest only, P/I = principal and interest.
(4)Represents only third-party liens and is expressed as the total loan commitment senior to our subordinated loan interest as of December 31, 2024.
(5)The aggregate tax basis of the loans is $2.8 billion as of December 31, 2024.
(6)As of December 31, 2024, the Company has a total CECL reserve of $61.6 million on its loans held for investment. Refer to Note 3 for additional information on the Company's CECL reserve.
1.Reconciliation of Mortgage Loans on Real Estate:
The following table reconciles the Company’s mortgage loans on real estate activity for the years ended (dollars in thousands):
202420232022
Balance at January 1,$3,409,684 $4,781,402 $4,867,203 
Additions during period:
Loans originated and acquired527,276 194,706 1,519,406 
Additional fundings40,697 140,547 145,199 
Accrued PIK interest360 — — 
Amortization of origination fees and discounts6,075 11,955 11,085 
Deductions during period:
Collection of principal(672,196)(890,566)(1,506,870)
Collection of accrued PIK interest(1,172)(542)(1,314)
Collection of interest applied to reduce principal under the cost-recovery method— (15,894)— 
Realized loss on loan write-offs, loan sales, and REO conversions(9,729)(334,727)(4,400)
Loan sales— (343,637)— 
Loan extinguishment on conversion to REO(89,499)(263,740)(89,234)
Decrease (increase) of allowance for credit losses5,534 130,180 (159,673)
Balance at December 31,$3,217,030 $3,409,684 $4,781,402 
v3.25.0.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Pay vs Performance Disclosure      
Net income (loss) $ 74,335 $ (116,630) $ (60,066)
v3.25.0.1
Insider Trading Arrangements
3 Months Ended
Dec. 31, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.0.1
Insider Trading Policies and Procedures
12 Months Ended
Dec. 31, 2024
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.0.1
Cybersecurity Risk Management and Strategy Disclosure
12 Months Ended
Dec. 31, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
As an externally managed company, our business is highly dependent on the communications and information systems of our Manager, its affiliates and third-party service providers. Our Manager is an affiliate of TPG, a leading global alternative asset manager with $246 billion in assets under management as of December 31, 2024. TPG offers a broad range of investment strategies across the alternative asset management landscape, primarily in private equity, credit, and real estate. We, in conjunction with our Manager and TPG, have adopted processes designed to identify, assess and manage material risks from cybersecurity threats. These processes include risk assessments of internal and external threats to the confidentiality, integrity and availability of our and TPG’s data and systems along with other material risks to firm operations.
These risk assessments inform TPG’s cybersecurity program and the continued development of a layered set of controls aimed at preventing, detecting and responding to threats. TPG’s administrative, organizational, technical and physical security controls include, but are not limited to, policies and procedures, system hardening vulnerability scanning and patching, employee training and awareness, third-party risk management processes, backup and recovery processes, access controls, data encryption in transit and at rest, network perimeter controls, and identity verification. TPG also has policies and controls in place designed to detect and respond to cybersecurity events, including an incident response plan, an incident response team with dedicated roles and responsibilities for assessing and responding to a cybersecurity event, system logging and ongoing monitoring, and periodic training exercises simulating cybersecurity events that are designed to raise awareness and test the TPG team’s response readiness capabilities.
The nature, scope and effectiveness of these controls are regularly reviewed through a series of internal and external processes. TPG's cybersecurity team performs both automated monitoring on a continuous basis and manual reviews of key controls. TPG also conducts annual assessments of TPG's cybersecurity program using industry standard cybersecurity frameworks, such as the NIST Cybersecurity Framework as benchmarks to perform TPG's evaluation. This does not imply that TPG fully meets any particular industry standards, specifications or requirements. In addition, independent reviews of TPG's cybersecurity control effectiveness are conducted by TPG's internal audit team on a periodic basis. TPG also engages external providers to conduct periodic external assessments, including penetration testing.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block] We, in conjunction with our Manager and TPG, have adopted processes designed to identify, assess and manage material risks from cybersecurity threats. These processes include risk assessments of internal and external threats to the confidentiality, integrity and availability of our and TPG’s data and systems along with other material risks to firm operations.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block] Our board of directors has responsibility for the direction and oversight of our risk management.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] In particular, the audit committee of our board of directors (the “audit committee”) has the responsibility to consider and discuss our major financial risk exposures and the steps our Manager takes, or is required to take, to monitor and control these exposures, including guidelines and policies to govern the process by which risk assessment and management is undertaken. Our audit committee also monitors compliance with legal and regulatory requirements, in addition to overseeing the performance of our internal audit function.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block]
With respect to cybersecurity, the audit committee engages in regular discussions with management regarding the Company’s significant financial risk exposures and the measures implemented to monitor and control these risks, including those that may result from material cybersecurity threats. Pursuant to our Cybersecurity Policy, our audit committee has appointed a dedicated member of the board of directors who is primarily responsible for our cybersecurity oversight (the "Board Cyber Lead"). TPG’s chief information security officer periodically briefs the audit committee and/or the Board Cyber Lead on TPG’s information security program and cybersecurity risks, and will brief the Board Cyber Lead or audit committee as needed in connection with any potentially material cybersecurity incidents affecting the Company. Periodic briefings of the Board Cyber Lead and/or audit committee by TPG’s chief information security officer typically include topics such as risk assessment, risk management and control decisions, service provider arrangements, test results, security incidents and responses, and recommendations for changes and updates to policies and procedures.
Cybersecurity Risk Role of Management [Text Block]
As an externally managed company, we rely on TPG’s information systems in connection with our day-to-day operations. Consequently, we also rely on the processes for assessing, identifying, and managing material risks from cybersecurity threats undertaken by TPG. TPG has established an enterprise risk committee (“ERC”) to manage overall risk, including cybersecurity risks identified by TPG's cybersecurity team. The ERC includes representatives from relevant functions and is led by TPG’s chief executive officer. TPG has also established an operational risk committee (“ORC”) which is responsible for applying the policy decisions of the ERC. Operational responsibility for ensuring the adequacy and effectiveness of TPG’s risk management, control and governance processes is assigned to TPG’s chief information security officer, who periodically reports, among other things, potentially material cybersecurity incidents to the ORC and reports to the ERC at least annually. TPG’s cybersecurity team also regularly coordinates with other key stakeholders within TPG, including compliance, human resources, internal audit and legal.
TPG’s chief information security officer leads TPG’s cybersecurity team, which is responsible for implementing, maintaining and enforcing TPG’s cybersecurity program. TPG’s chief information security officer previously held various leadership roles within the technology risk department of one of the world’s largest banking institutions over a 17-year period. He holds a Bachelor of Science in Electrical Engineering and Mathematics from the University of Texas at Arlington and is a Certified Information Systems Security Professional (CISSP). TPG’s cybersecurity team possesses a variety of cybersecurity skill sets and extensive expertise obtained through decades of experience, numerous industry certifications, and advanced degrees. TPG’s cybersecurity team continues to take steps to maintain up-to-date knowledge of evolving cybersecurity threats and countermeasures.
TPG employs processes to oversee and identify material risks associated with the use of third-party service providers, taking into account the nature of the services provided, the sensitivity and quantity of information processed, and the identity of the service provider.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] TPG’s chief information security officer leads TPG’s cybersecurity team, which is responsible for implementing, maintaining and enforcing TPG’s cybersecurity program.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] TPG’s chief information security officer previously held various leadership roles within the technology risk department of one of the world’s largest banking institutions over a 17-year period. He holds a Bachelor of Science in Electrical Engineering and Mathematics from the University of Texas at Arlington and is a Certified Information Systems Security Professional (CISSP).
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] TPG’s chief information security officer periodically briefs the audit committee and/or the Board Cyber Lead on TPG’s information security program and cybersecurity risks, and will brief the Board Cyber Lead or audit committee as needed in connection with any potentially material cybersecurity incidents affecting the Company. Periodic briefings of the Board Cyber Lead and/or audit committee by TPG’s chief information security officer typically include topics such as risk assessment, risk management and control decisions, service provider arrangements, test results, security incidents and responses, and recommendations for changes and updates to policies and procedures.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.0.1
Summary of Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2024
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 ("GAAP").
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, the adequacy of our allowance for credit losses and the valuation inputs related thereto. Actual amounts and values as of the balance sheet dates may be materially different from the amounts and values reported due to the inherent uncertainty in the estimation process and the limited availability of observable pricing inputs due to the nature of transitional mortgage loans. Also, future amounts and values could differ materially from those estimates due to changes in values and circumstances after the balance sheet date and the limited availability of observable prices.
Segments
Segments
The Company operates its business in a single operating and reportable segment, which is consistent with how the Company’s Chief Executive Officer, who is its chief operating decision maker (“CODM”), assesses financial performance and allocates resources. The CODM uses consolidated Net income (loss) as one of the primary measures to assess financial performance and allocate resources. All expense categories on the Company’s consolidated statements of income (loss) are significant, and there are no other significant expenses that would require disclosure. There is no difference between segment assets and total consolidated assets.
Principles of Consolidation The consolidated financial statements include the Company's accounts, consolidated variable interest entities for which the Company is the primary beneficiary, and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated.
Principles of Consolidation
Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810—Consolidation (“ASC 810”) provides guidance on the identification of a variable interest entity (“VIE”), 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 the Company 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.
Revenue Recognition
Revenue Recognition
Interest income on loans is accrued using the interest method based on the contractual terms of the loan, adjusted for expected or realized credit losses, 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, and origination 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 and modification fees are accreted into interest income on a straight-line basis, when it approximates the interest method, over the related extension or modification period. Exit fees are accreted into interest income on a straight-line basis, when it approximates the interest method, over the lives of the loans to which they relate unless they can be waived by the Company or a co-lender in connection with a loan refinancing, or if timely collection of principal and interest is doubtful. Prepayment penalties from borrowers are recognized as interest income when received. Certain of the Company’s loan investments have in the past, and may in the future, provide for additional interest based on the borrower’s operating cash flow or appreciation in the value of the underlying collateral. Such amounts are considered contingent interest and are reflected as interest income only upon certainty of collection. Certain of the Company’s loan investments have in the past, and may in the future, provide for the accrual of interest (in part, or in whole) instead of its current payment in cash, with the accrued interest (“PIK interest”) added to the unpaid principal balance of the loan. Such PIK interest is recognized currently as interest income unless the Company concludes eventual collection is unlikely, in which case the PIK interest is written off.
All interest accrued but not received for loans placed on non-accrual status is subtracted from interest income at the time the loan is placed on non-accrual status. Based on the Company’s judgment as to the collectability of principal, a loan on non-accrual status is either accounted for on a cash basis, where interest income is recognized only upon receipt of cash for interest payments, or on a cost-recovery basis, where all cash receipts reduce the loan’s carrying value, and interest income is only recorded when such carrying value has been fully recovered.
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 repayment, are reported at their outstanding principal balances net of cumulative write-offs, interest applied to principal (for loans accounted for using the cost-recovery method), unamortized premiums, discounts, loan origination fees and costs. 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. Interest accrued but not yet collected is separately reported as accrued interest and fees receivable on the Company’s consolidated balance sheets.
Non-Accrual Loans and Loans Held for Sale
Non-Accrual Loans
Loans are placed on non-accrual status when the full and timely collection of principal or interest is doubtful, generally when: management determines that the borrower is incapable of, or has ceased efforts toward, curing the cause of a default; the loan becomes 90 days or more past due for principal or interest; or the loan experiences a maturity default. The Company considers an account past due when an obligor fails to pay substantially all (defined as 90%) of the scheduled contractual payments by the due date. In each case, the period of delinquency is based on the number of days payments are contractually past due. A loan may be returned to accrual status if all delinquent principal and interest payments are brought current, and collectability of the remaining principal and interest payments in accordance with the loan agreement is reasonably assured. Loans that in the judgment of the Manager, are adequately secured and in the process of collection are maintained on accrual status, even if they are 90 days or more past due.
Loans Held for Sale
The Company may change its intent, or its assessment of its ability, to hold for the foreseeable future loans held for investment based on changes in the real estate market, capital markets, or when a shift occurs in the Company's approach to loan portfolio construction. Once a determination is made to sell a loan, or the Company determines it no longer has the intent and ability to hold a loan held for investment for the foreseeable future, the loan is transferred to loans held for sale. In accordance with GAAP, loans classified as held for sale are recorded at the lower of cost or fair value, net of estimated selling costs, and the loan is excluded from the determination of the CECL reserve.
Credit Losses
Credit Losses
Allowance for Credit Losses for Loans Held for Investment
The Company accounts for its allowance for credit losses on loans held for investment using the Current Expected Credit Loss model of ASC Topic 326, Financial Instruments-Credit Losses (“ASC 326”). Periodic changes to the CECL reserve are recognized through net income on the Company’s consolidated statements of income (loss) and comprehensive income (loss). The allowance for credit losses measured under the CECL accounting framework represents an estimate of current expected losses for the Company’s existing portfolio of loans held for investment, and is presented as a valuation reserve on the Company’s consolidated balance sheets. Expected credit losses related to non-cancelable unfunded loan commitments are accounted for as separate liabilities included in accrued expenses and other liabilities on the consolidated balance sheets. The allowance for credit losses for loans held for investment, as reported in the Company’s consolidated balance sheets, is adjusted by a credit loss (expense) benefit, which is reported in earnings in the consolidated statements of income (loss) and comprehensive income (loss) and reduced by the write-off of loan amounts, net of recoveries and additions related to purchased credit-deteriorated (“PCD”) assets, if relevant. The Company has elected to not measure an allowance for credit losses on accrued interest receivables related to all of its loans held for investment because it writes off uncollectible accrued interest receivable in a timely manner pursuant to its non-accrual policy, described above.
The Company considers key credit quality indicators in underwriting loans and estimating credit losses, including but not limited to: the capitalization of borrowers and sponsors; the expertise of the borrowers and sponsors in a particular real estate property type and geographic market; collateral type; geographic region; use and occupancy of the property; property market value; loan-to-value (“LTV”) ratio; loan amount and lien position; debt service coverage ratio; the Company’s risk rating for the same and similar loans; and prior experience with the borrower and sponsor. This information is used to assess the financial and operating capability, experience and profitability of the sponsor/borrower. Ultimate repayment of the Company’s loans is also sensitive to interest rate changes, general economic conditions, liquidity, LTV ratio, existence of a liquid investment sales market for commercial properties, and availability of replacement short-term or long-term financing. The loans in the Company’s commercial mortgage loan portfolio are secured by collateral of the following property types: office; life science; multifamily; hotel; industrial; mixed-use; and self storage.
The Company’s loans are typically collateralized by real estate, or in the case of mezzanine loans, by a partnership interest or similar equity interest in the entity that owns the real estate securing the Company's first mortgage loan. The Company regularly evaluates on a loan-by-loan basis, typically no less frequently than quarterly, the extent and impact of any credit deterioration associated with the performance and/or value of the underlying collateral property, and 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 property type, and geographic sub-market in which the borrower operates. Such analyses are completed and reviewed by asset management personnel and evaluated by senior management, who utilize various data sources, including, to the extent available (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 availability of, and credit spreads for, refinancing and (v) other market data.
Quarterly, the Company evaluates the risk of all loans and assigns a risk rating based on a variety of factors, whereby no single factor on its own, whether quantitative or qualitative, is given more weight than others. The factors that the Company considers in connection with this evaluation are grouped as follows: (i) loan and credit structure, including the as-is LTV; (ii) quality and stability of real estate value and operating cash flow, including debt yield, property type, dynamics of the geography, local market, physical condition, stability of cash flow, leasing velocity and quality and diversity of tenancy; (iii) performance against underwritten business plan; (iv) the frequency and materiality of loan modifications or waivers occasioned by unfavorable variances between the underwritten business plan and actual performance; (v) changes in the capital markets that may impact the repayment of the loan via a refinancing or sale of the loan collateral; and (vi) quality, experience and financial condition of sponsor, borrower and guarantor(s). Based on a 5-point scale, the Company’s loans are rated “1” through “5,” from least risk to greatest risk, respectively:
1 -Very Low Risk
2 -Low Risk
3 -Medium Risk
4 -High Risk/Potential for Loss—A loan that has a high risk of realizing a principal loss; and
5 -Default/Loss Likely—A loan that has a very high risk of realizing a principal loss or has otherwise incurred a principal loss.
The Company generally assigns a risk rating of “3” to all loan investments upon origination or acquisition, except when specific circumstances warrant an exception.
The Company’s CECL reserve also reflects estimates of the current and future economic conditions that impact the performance of the commercial real estate assets securing the Company’s loans. These estimates include unemployment rates, inflation rates, interest rates, price indices for commercial property, current and expected future availability of liquidity in the commercial property debt and equity capital markets, and other macroeconomic factors that may influence the likelihood and magnitude of potential credit losses for the Company’s loans during their anticipated term. The Company licenses certain macroeconomic financial forecasts to inform its view of the potential future impact that broader economic conditions may have on its loan portfolio’s performance. Selection of the economic forecast or forecasts used, in conjunction with loan level inputs, to determine the CECL reserve requires significant judgment about future events that, while based on the information available to the Company as of the balance sheet date, are ultimately unknowable with certainty. The actual economic conditions impacting the Company’s portfolio could vary significantly from the estimates the Company made for the periods presented.
The key inputs to the Company's estimation of its allowance for credit losses as of December 31, 2024 were impacted by continued dislocations in the capital markets, declines in property values, sustained higher interest rates, uncertain inflationary trends, a continued risk of recession, structural shifts and regulatory changes in the banking sector, and political and geopolitical conflicts. Inherent uncertainty in the estimation process and the limited availability of observable pricing inputs due to the nature of transitional mortgage loans also constrain the Company's ability to estimate key inputs utilized to calculate its allowance for credit losses. Key inputs to the estimate include, but are not limited to: LTV; debt service coverage ratio; current and future operating cash flow and performance of collateral properties; the financial strength and liquidity of borrowers and sponsors; capitalization rates and discount rates used to value commercial real estate properties; and market liquidity based on market indices or observable transactions involving the sale or financing of commercial properties. Estimates made by the Company are subject to change. Actual results could differ from management’s estimates, and such differences could be material.
Credit Loss Measurement
The amount of allowance for credit losses is influenced by the size of the Company’s loan portfolio, loan quality and duration, collateral operating performance, risk rating, delinquency status, historic loss experience and other characteristics influencing loss expectations, such as reasonable and supportable forecasts of economic conditions. The Company employs two methods to estimate credit losses in its loan portfolio: (1) a model-based approach; and (2) an individually assessed approach for loans considered to be "collateral-dependent" since the repayment of the loan is expected to be provided substantially through the operation or sale of the underlying collateral, and the borrower is experiencing financial difficulty or foreclosure is probable.
Once the expected credit loss amount is determined, an allowance for credit losses is established. A loan will be written off through the allowance for credit losses when it is deemed non-recoverable or upon a realization event. This is generally at the time the loan is settled (including conversion to real estate owned), transferred or exchanged. Non-recoverability may also be concluded by the Company if, in its determination, it is nearly certain that all amounts due will not be collected. This loss is equal to the difference between the cash received, or expected to be received, and the carrying value of the asset. Factors considered by the Company in determining whether the expected credit loss is not recoverable include whether the Company determines that the loan is uncollectible, which means repayment is deemed to be delayed beyond a reasonable time, a loss becomes evident due to a borrower’s lack of assets and liquidity, or a borrower’s sponsor is unwilling or unable to support the loan.
Allowance for Credit Losses for Loans Held for Investment – Model-Based Approach
The Company uses a model-based approach used to measure the expected lifetime allowance for credit losses related to loans which are not individually assessed. The model-based approach considers the underlying loan level cash flows and relevant historical market loan loss data. The Company licenses from Trepp, LLC historical loss information, incorporating loan performance data for over 125,000 commercial real estate loans dating back to 1998, and an analytical model to compute statistical credit loss factors (i.e., probability-of-default, loss severity, and loss-given-default). These credit loss factors are utilized by the Company together with loan specific inputs such as property-level operating performance information, delinquency status, indicators of credit quality, and other credit trends and risk characteristics. Additionally, the Company considers relevant loan and borrower specific qualitative factors and incorporates its expectations about the impact of current macroeconomic and local market conditions and reasonable and supportable operating forecasts on expected future credit losses in deriving its estimate. For the period beyond which the Company is able to make reasonable and supportable forecasts, the Company reverts to unadjusted historical loan loss information.

The Company uses other acceptable alternative approaches depending on, among other factors, the type of loan, underlying collateral and availability of relevant historical market loan loss data.
Allowance for Credit Losses for Loans Held for Investment – Individually Assessed Approach
In instances where the Company concludes a loan repayment is entirely dependent on the operation or sale of the underlying collateral and the borrower is experiencing financial difficulty or foreclosure is probable, the Company individually assesses the allowance for credit loss for the underlying loan. The amount of expected credit loss is determined using broadly accepted and standard real estate valuation techniques (most commonly, a discounted cash flow model and real estate sales comparables). In instances where the Company determines foreclosure of the underlying collateral is probable, the expected credit loss is measured as the difference between the amortized cost basis of the loan and the fair value of the underlying collateral as of the measurement date. The fair value of the underlying collateral is adjusted for the estimated costs to sell if repayment or satisfaction of a loan is dependent on the sale (rather than the operation) of the underlying collateral in instances where foreclosure is not probable.
Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. Evaluations of the loan portfolio in future periods, given the prevailing forecasts and credit loss factors, may result in significant changes to the Company's allowance for credit losses and credit loss expense.
Unfunded Loan Commitments
Unfunded Loan Commitments
The Company’s first mortgage loans often contain provisions for future funding of a pre-determined portion of capital and other costs incurred by the borrower in executing its business plan. These deferred fundings are conditioned upon the borrower’s execution of its business plan with respect to the underlying collateral property securing the loan. These deferred fundings are typically for base building work, tenant improvement costs and leasing commissions, interest reserves, and occasionally to fund forecasted operating deficits during lease-up. These deferred funding commitments may be for specific periods, often require satisfaction by the borrower of conditions precedent, and may contain termination clauses at the option of the borrower or, more rarely, at the Company’s option. The total amount of unfunded commitments does not necessarily represent actual amounts that may be funded in cash in the future, since commitments may expire without being drawn, may be cancelled if certain conditions are not satisfied by the borrower, or borrowers may elect not to borrow some or all of the unused commitment. The Company does not recognize these unfunded loan commitments in its consolidated financial statements.
The Company applies its expected credit loss estimates to all future funding commitments that cannot be contractually terminated at the Company’s option. The Company maintains a separate allowance for expected credit losses from unfunded loan commitments, which is included in accrued expenses and other liabilities on the consolidated balance sheets. The Company estimates the amount of expected losses by calculating a commitment usage factor over the contractual period for exposures that are not unconditionally cancellable by the Company and applies the loss factors used in the allowance for credit loss methodology described above to the results of the usage calculation to estimate the liability for credit losses related to unfunded commitments for each loan.
Exit Fees Receivable
The Company's first mortgage loans may require the borrower to pay an exit fee upon repayment or maturity. For each loan that has an exit fee outstanding, the Company calculates an allowance for credit losses as of the reporting date. Such amounts are recorded within Accrued interest and fees receivable on the Company's consolidated balance sheet and Credit loss expense, net on the Company's consolidated statements of income (loss) and comprehensive income (loss).
Real Estate Owned
Real Estate Owned
Real estate acquired through a foreclosure or by deed-in-lieu of foreclosure is classified as real estate owned (“REO”) and held for investment on the Company’s consolidated balance sheet until a pending sales transaction meets the criteria of ASC 360-10-45-9 after which the real estate is considered to be held for sale, or is sold. The Company's basis in REO is equal to the fair value of the collateral's net assets upon foreclosure. The estimated fair value of REO is determined using generally accepted valuation techniques, including a discounted cash flow model and inputs that include the highest and best use for each asset, estimated future values based on extensive discussions with local brokers, investors and other market participants, the estimated holding period for the asset, and capitalization and discount rates that reflect estimated investor return requirements for the risks associated with the expected use of each asset. If the estimated fair value of REO is lower than the carrying value of the related loan upon its conversion to REO, the difference, along with any previously recorded specific CECL reserve, is recorded through credit loss (expense) benefit in the consolidated statements of income (loss) and comprehensive income (loss).
Upon the acquisition of a property, the Company assesses the fair value of the acquired tangible and intangible assets (including land, buildings, tenant improvements, above and below-market leases, acquired in-place leases, other identified intangible assets and assumed liabilities) and allocates the purchase price to the acquired assets and assumed liabilities, which are on a relative fair value basis. The Company assesses and considers fair value based on estimated cash flow projections that utilize appropriate discount and/or capitalization rates, as well as other available market information. Estimates of future cash flows are based on a number of factors including historical operating results, known and anticipated trends, and market and economic conditions.
In determining the fair value of the tangible assets of an acquired property, the Company considers the value of the property as if it were vacant. The Company allocates the purchase price to other acquired intangibles, including acquired in-place leases that may have
a customer relationship intangible value, including (but not limited to) the nature and extent of the existing relationship with the tenants, the tenants’ credit quality and expectations of lease renewals. Revenue from real estate owned is primarily comprised of rental income, including base rent and reimbursements of property operating expenses. For leases that have fixed and measurable base rent escalations, the Company recognizes base rent on a straight-line basis over the non-cancelable lease terms. The difference between such rental income earned and the cash rent amount is recorded as straight-line rent receivable and included within Other assets on the consolidated balance sheet.
The Company records the amortization of above and below-market leases as an adjustment to Revenue from real estate owned operations on the consolidated statements of income (loss) and comprehensive income (loss).
As of December 31, 2024, REO depreciable assets are depreciated using the straight-line method over estimated useful lives as follows:
DescriptionDepreciable Life
Building
Up to 48 years
Building improvements
Up to 12 years
Lease intangiblesOver lease term
Renovations and/or replacements that improve or extend the life of the REO are capitalized and depreciated over their estimated useful lives. The cost of ordinary repairs and maintenance are expensed as incurred. The Company capitalizes costs directly related to the pre-development, development or improvement of its REO, referred to as capital projects. Costs associated with the Company's capital projects are capitalized as incurred. Costs considered for capitalization include, but are not limited to, construction costs, interest, real estate taxes, insurance and utilities, if appropriate. The Company capitalizes indirect costs such as personnel, office, and administrative expenses that are directly related to development projects based on an estimate of the time spent on the construction and development activities. These costs are capitalized only during the period in which activities necessary to ready an asset for its intended use are in progress and such costs are incremental and identifiable to a specific activity to prepare the asset for its intended use. The Company determines when the capitalization period begins and ends through communication with project and other managers responsible for the tracking and oversight of individual projects. In the event that the activities to ready the asset for its intended use are suspended, the capitalization period will cease until such activities are resumed.
REO is initially measured at fair value and is thereafter subject to an ongoing impairment analysis. Subsequent to an REO acquisition, events or circumstances may occur that result in a material and sustained change in the cash flows generated, or expected to be generated, from the property. REO is evaluated for recoverability when impairment indicators are identified. REO is considered for impairment when the sum of estimated future undiscounted cash flows to be generated by the REO over the estimated remaining holding period is less than the carrying value of the REO. An impairment loss is recorded when the carrying value of the REO exceeds its fair value. Any impairment loss and gains on sale are included in the consolidated statements of income (loss) and comprehensive income (loss). Revenue and expenses from REO operations are included in the consolidated statements of income (loss) and comprehensive income (loss) within Revenue from real estate owned operations and Expenses from real estate owned operations, as applicable.
Investment Portfolio Financing Arrangements and Deferred Financing Costs
Investment Portfolio Financing Arrangements
The Company finances its portfolio of loans, or participation interests therein, and REO using secured financing agreements, including secured credit agreements, secured revolving credit facilities, asset-specific financing arrangements, mortgage loans payable, and collateralized loan obligations. 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 (loss) and comprehensive income (loss).
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, 2024, the Company transferred to a third-party lender, on a non-recourse basis, 100% of the senior mortgage loan that the Company originated, and 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 loans 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.
Deferred Financing Costs
Deferred financing costs are reflected net of the liabilities to which they relate, currently collateralized loan obligations, secured financing agreements, which include secured credit agreements and a secured revolving credit facility, asset-specific financing arrangements, and mortgage loans payable 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, as follows: (i) for secured financing agreements other than CRE CLOs, the initial term of the financing agreement, or in the case of costs directly associated with the loan, over the life of the financing agreement or the loan, whichever is shorter; and (ii) for CRE CLOs, over the estimated life of the liabilities issued based on the underlying loans’ initial maturity dates, considering the expected repayment behavior of the loans collateralizing the notes and the impact of any reinvestment periods, as of the closing date.
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, cash equivalents, and restricted cash. 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 inputs used by management 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.
The following methods and assumptions are used by the Manager to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value:
Cash and cash equivalents: the carrying amount of cash and cash equivalents approximates fair value.
Loans held for investment, net: using a discounted cash flow methodology employing a discount rate for loans of comparable credit quality, structure, and LTV based upon appraisal information and current estimates of the value of collateral property performed by the Manager, and credit spreads for loans of comparable risk (as determined by the Manager based on the factors previously described) as corroborated by inquiry of other market participants.
Loans held for sale: estimated fair market value based on sale comparables as corroborated by inquiry of other market participants or independent market data providers.
Secured revolving credit facilities, asset-specific financings, and mortgage loan payable: based on the rate at which a similar secured revolving credit facility, asset-specific financing, or mortgage loan payable would currently be priced, as corroborated by inquiry of other market participants.
Commercial Real Estate Collateralized Loan Obligations, net: indications of value from dealers active in trading similar or substantially similar securities, observable quotes from market data services, reported prices and spreads for recent new issues, and Manager estimates of the credit spread at which similar bonds would be issued, or traded, in the new issue and secondary markets.
Other assets and liabilities subject to fair value measurement, including receivables, payables and accrued liabilities have carrying values that approximate fair value due to their short-term nature.
As discussed above, market-based or observable inputs are generally the preferred source of values for purposes of measuring the fair value of the Company’s assets under GAAP. The commercial property investment sales and commercial mortgage loan markets have experienced uneven liquidity due to global macroeconomic conditions, including heightened inflation, slower growth or recession, changes to fiscal and monetary policy, sustained higher interest rates, currency fluctuations, labor shortages and structural shifts and regulatory changes in the banking sector, which has made it more difficult to rely on market-based inputs in connection with the valuation of the Company’s assets under GAAP. Key valuation inputs include, but are not limited to, future operating cash flow and performance of collateral properties, the financial strength and liquidity of borrowers and sponsors, credit spreads for secured real estate borrowings, capitalization rates and discount rates used to value commercial real estate properties, and observable transactions involving the sale or financing of commercial properties.
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 (the “Internal Revenue Code”), 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. In 2017, the Internal Revenue Service issued a revenue procedure permitting “publicly offered” REITs to make elective stock dividends (i.e., dividends paid in a mixture of stock and cash), with at least 20% of the total distribution being paid in cash, to satisfy their REIT distribution requirements. Pursuant to this revenue procedure, the Company may elect to make future distributions of its taxable income in a mixture of stock and cash. 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.
In certain instances, the Company may generate excess inclusion income (“EII”) within the Sub-REIT structure it established for the purpose of issuing collateralized loan obligations (“CRE CLOs”). EII has previously occurred in certain instances where the Company’s CRE CLOs generate excess income as a result of declines in the underlying benchmark interest rates from the issuance date of a CRE CLO’s liabilities and the loans contributed to the CRE CLOs with interest rate floors that are materially higher than the current benchmark rates. EII, which is treated as unrelated business taxable income (“UBTI”), is an obligation of the Company and is allocated only to a taxable REIT subsidiary (“TRS”) and not to the Company's common stockholders.
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. Currently, the Company has no taxable temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis.
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.
Earnings per Common Share
Earnings per Common Share
The Company calculates basic earnings per share using the two-class method. The two-class method is an allocation formula that determines earnings per share for each share of common stock and participating securities according to dividends declared and participation rights in undistributed earnings. Under this method, all earnings (distributed and undistributed) are allocated to common shares and participating securities based on their respective rights to receive dividends. Basic earnings per common share is calculated by dividing earnings allocated to common shareholders by the weighted average number of common shares outstanding during the period.
Diluted earnings per share is computed under the more dilutive of the treasury stock method or the two-class method. The computation of diluted earnings per share is based on the weighted average number of participating securities outstanding plus the incremental shares that would be outstanding assuming exercise of then-outstanding warrants to purchase common stock (the “Warrants”, see Note 12) issued in connection with the Company’s no-longer-outstanding Series B Cumulative Redeemable Preferred Stock (the “Series B Preferred Stock”), which were exercisable on a net settlement basis. The number of incremental shares is calculated utilizing the treasury stock method. As discussed in Note 12, on May 8, 2024, all of the Warrants were exercised on a net settlement basis, resulting in the issuance of 2,647,059 shares of the Company's common stock. As of December 31, 2024, there were no Warrants outstanding.
The Company accounts for unvested stock-based compensation 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. The Company excludes participating securities and Warrants from the calculation of diluted weighted average shares outstanding in periods of net losses since their effect would be anti-dilutive.
Stock-based Compensation
Stock-based Compensation
Stock-based compensation consists of awards issued by the Company to certain employees of affiliates of the Manager and certain members of the Company’s Board of Directors. The stock-based compensation awards to certain employees of affiliates of the Manager generally vest in installments over a fixed period. Deferred stock units granted to the Company’s Board of Directors prior to December 2021 fully vested on the grant date and accrued, and will continue to accrue, common stock dividends that are paid-in kind through additional deferred stock units on a quarterly basis. Deferred stock units granted in December 2021 and thereafter will fully vest on the grant date and will continue to accrue and be paid cash common stock dividends on a quarterly basis. Stock-based compensation expense is recognized in net income on a straight-line basis over the applicable award’s vesting period. Forfeitures of stock-based compensation awards are recognized as they occur.
Cash and Cash Equivalents
Cash and Cash Equivalents
Cash and cash equivalents includes 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, 2024 and December 31, 2023. The balances in these accounts may exceed the insured limits.
Pursuant to financial covenants applicable to Holdco, which is the guarantor of the Company’s recourse indebtedness, the Company is required to maintain minimum cash equal to the greater of (i) $15 million or (ii) the product of 5% and the aggregate recourse indebtedness of the Company.
Restricted Cash
Restricted Cash
Restricted cash primarily represents deposits paid by potential borrowers to cover certain costs incurred by the Company in connection with loan originations. These deposits may be returned to borrowers, after deducting eligible transaction costs paid by the Company for the benefit of the borrowers, upon the closing of a loan transaction, or if a loan transaction does not close and deposit proceeds remain.
Collateralized Loan Obligation Proceeds Held at Trustee
Collateralized Loan Obligation Proceeds Held at Trustee
Collateralized Loan Obligation Proceeds Held at Trustee represent cash held by the Company’s collateralized loan obligations pending reinvestment in eligible collateral. See Note 5 for additional details.
Accounts Receivable from Servicer/Trustee
Accounts Receivable from Servicer/Trustee
Accounts receivable from Servicer/Trustee represents cash proceeds from loan activities that have not been remitted to the Company based on established servicing and borrowing procedures. Such amounts are generally held by the Servicer/Trustee for less than 30 days before being remitted to the Company.
Stockholders' Equity
Stockholders’ Equity
Total Stockholders’ Equity may include preferred stock, common stock, and derivative instruments indexed to the Company's common stock such as warrants or other embedded options within financing arrangements that may be classified as temporary or permanent equity. Common shares generally represent a basic ownership interest in an entity and a residual corporate interest in liquidation, bearing the ultimate risk of loss and receiving the benefit of success. Common shares are usually perpetual in nature with voting rights and dividend rights. Preferred shares are usually characterized by the life of the instrument (i.e., perpetual or redeemable) and the ability of a holder to convert the equity instrument into cash, common shares, or a combination thereof. The terms of preferred shares can vary significantly, including but not limited to, an equity instrument’s dividend rate, term (e.g., existence of a stated redemption date), conversion features, voting rights, and liquidation preferences. Derivative instruments indexed to the Company's common stock such as warrants or other embedded options within financing arrangements are generally classified based on which party controls the contract settlement mechanism and the nature of the settlement terms that may require, or allow, the Company to make a cash payment, issue common shares, or a combination thereof to satisfy its obligation of the underlying contract.
Recently Issued Accounting Pronouncements
Recently Issued Accounting Pronouncements
In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures ("ASU 2024-03"). ASU 2024-03 intends to enhance disclosures about a public business entity’s expenses and requires more detailed information about the types of expenses included in certain expense captions in the consolidated financial statements. This standard is effective for the Company beginning with its 2026 annual reporting. ASU 2024-03 is to be adopted prospectively. The Company is currently evaluating the impact of ASU 2024-03.
v3.25.0.1
Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Property, Plant and Equipment
As of December 31, 2024, REO depreciable assets are depreciated using the straight-line method over estimated useful lives as follows:
DescriptionDepreciable Life
Building
Up to 48 years
Building improvements
Up to 12 years
Lease intangiblesOver lease term
v3.25.0.1
Loans Held for Investment and the Allowance for Credit Losses (Tables)
12 Months Ended
Dec. 31, 2024
Receivables [Abstract]  
Schedule of Overall Statistics for Loan Held for Investment Portfolio
The following table details overall statistics for the Company’s loans held for investment portfolio (dollars in thousands):
December 31, 2024December 31, 2023
Balance sheet portfolio
Total loan exposure(1)
Balance sheet portfolio
Total loan exposure(1)
Number of loans45455353
Floating rate loans99.7 %99.7 %100.0 %100.0 %
Total loan commitment$3,412,016$3,412,016$3,666,173$3,666,173
Unpaid principal balance(2)
$3,284,510$3,284,510$3,484,052$3,484,052
Unfunded loan commitments(3)
$127,866$127,866$183,293$183,293
Amortized cost$3,278,588$3,278,588$3,476,776$3,476,776
Weighted average credit spread3.7 %3.7 %3.7 %3.7 %
Weighted average all-in yield(4)
8.3 %8.3 %9.3 %9.3 %
Weighted average term to extended maturity (in years)(5)
2.42.42.62.6
_______________________
(1)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. In either case, the senior mortgage loan (i.e., the non-consolidated senior interest) is not included on the Company’s balance sheet. When the Company creates structural leverage through the co-origination or non-recourse syndication of a senior loan interest to a third party, the Company retains on its balance sheet a mezzanine loan. Total loan exposure encompasses the entire loan portfolio the Company originated, acquired and financed. The Company had no non-consolidated senior interests as of December 31, 2024 and December 31, 2023. As of December 31, 2024, total loan exposure includes one fixed rate contiguous mezzanine loan.
(2)Unpaid principal balance includes PIK interest of $0.4 million and $1.2 million as of December 31, 2024 and December 31, 2023, respectively.
(3)Unfunded loan commitments may be funded over the term of each loan, subject in certain cases to an expiration date or a force-funding date, primarily to finance property improvements or lease-related expenditures by the Company’s borrowers and to finance operating deficits during renovation and lease-up.
(4)As of December 31, 2024, all of the Company's floating rate loans were indexed to Term SOFR. In addition to credit spread, all-in yield includes the amortization of deferred origination fees, purchase price premium and discount if any, and accrual of both extension and exit fees. All-in yield for the total portfolio assumes Term SOFR as of December 31, 2024 for weighted average calculations.
(5)Extended maturity assumes all extension options are exercised by the borrower; provided, however, that the Company’s loans may be repaid prior to such date. As of December 31, 2024, based on the unpaid principal balance of the Company’s total loan exposure, 22.1% of the Company’s loans were subject to yield maintenance or other prepayment restrictions and 77.9% were open to repayment by the borrower without penalty.
Schedule of Loans Held for Investment Portfolio by Loan Seniority
The following tables present an overview of the Company’s loans held for investment portfolio by loan seniority (dollars in thousands):
December 31, 2024
Loans held for investment, netOutstanding principalUnamortized premium (discount) and
loan origination fees, net
Amortized cost
Senior loans(1)
$3,284,510 $(5,922)$3,278,588 
Total$3,284,510 $(5,922)$3,278,588 
Allowance for credit losses(61,558)
Loans held for investment, net$3,217,030 
December 31, 2023
Loans held for investment, netOutstanding principalUnamortized premium (discount) and
loan origination fees, net
Amortized cost
Senior loans(1)
$3,484,052 $(7,276)$3,476,776 
Total$3,484,052 $(7,276)$3,476,776 
Allowance for credit losses(67,092)
Loans held for investment, net$3,409,684 
________________________________
(1)Senior loans may include contiguous mezzanine loans and pari passu participations in senior mortgage loans.
Summary of Loans Held for Investment Portfolio Activity
The following table presents the Company’s loans held for investment portfolio activity (dollars in thousands):
For the years ended December 31,
20242023
Balance as of January 1,$3,409,684 $4,781,402 
Additions during the period:
Loans originated and acquired527,276 194,706 
Additional fundings40,697 140,547 
Accrued PIK interest360 — 
Amortization of origination fees and discounts6,075 11,955 
Deductions during the period:
Collection of principal(672,196)(890,566)
Collection of accrued PIK interest(1,172)(542)
Collection of interest applied to reduce principal under the cost-recovery method— (15,894)
Realized loss on loan write-offs, loan sales, and REO conversions(9,729)(334,727)
Loan sales— (343,637)
Loan extinguishment upon conversion to REO(89,499)(263,740)
Decrease of allowance for credit losses5,534 130,180 
Balance as of December 31,$3,217,030 $3,409,684 
Summary of Amortized Cost and Results of Internal Risk Rating Review Performed for Loans Held for Investment Portfolio
The following tables present the Company's loans held for investment portfolio on an amortized cost basis by origination year, grouped by risk rating (dollars in thousands):
December 31, 2024
Amortized cost by origination year
20242023202220212020PriorTotal
Senior loans by internal risk ratings:
1$— $— $— $— $— $— $— 
262,716 — — — — — 62,716 
3467,735 201,588 752,847 1,213,894 — 462,607 3,098,671 
4— — — — — 117,201 117,201 
5— — — — — — — 
Total senior loans$530,451 $201,588 $752,847 $1,213,894 $— $579,808 $3,278,588 
Senior loans:
Current-period realized loss on loan write-offs related to REO conversions$— $— $(7,818)$(1,911)$— $— $(9,729)
December 31, 2023
Amortized cost by origination year
2023 2022 2021 2020 2019 Prior Total
Senior loans by internal risk ratings:
1$— $— $— $— $— $— $— 
2— — — — 99,000 — 99,000 
3196,268 1,013,299 1,313,889 100,550 450,849 86,073 3,160,928 
4— 60,229 — — 40,415 116,204 216,848 
5— — — — — — — 
Total senior loans$196,268 $1,073,528 $1,313,889 $100,550 $590,264 $202,277 $3,476,776 
Senior loans:
Current-period realized loss on loan write-offs related to loan sales and REO conversions$— $(29,630)$(8,526)$(24,906)$(188,275)$(83,390)$(334,727)
The table below summarizes the Company’s portfolio of loans held for investment on an amortized cost basis, by the results of its internal risk rating review process performed (dollars in thousands):
Risk ratingDecember 31, 2024December 31, 2023
1$— $— 
262,716 99,000 
33,098,671 3,160,928 
4117,201 216,848 
5— — 
Total$3,278,588 $3,476,776 
Allowance for credit losses(61,558)(67,092)
Carrying value$3,217,030 $3,409,684 
Weighted average risk rating(1)
3.0 3.0 
________________________________
(1)Weighted average risk rating calculated based on the amortized cost balance at period end.
Summary of Activity in Allowance for Credit Losses for Loans Held for Investment
The following tables present activity in the allowance for credit losses for loans by finance receivable class (dollars in thousands):
For the Year Ended December 31, 2024
Senior loans
Allowance for credit losses for loans held for investment:
Beginning balance at January 1, 2024$67,092 
Allowance for credit losses, net4,195 
Realized loss on loan write-offs(9,729)
Subtotal61,558 
Allowance for credit losses on unfunded loan commitments:
Beginning balance at January 1, 20242,679 
Reversal of credit losses, net(264)
Subtotal2,415 
Total allowance for credit losses(1)
$63,973 
For the Year Ended December 31, 2023
Senior loans
Allowance for credit losses for loans held for investment:
Beginning balance at January 1, 2023$197,272 
Allowance for credit losses, net204,547 
Realized loss on loan write-off(334,727)
Subtotal67,092 
Allowance for credit losses on unfunded loan commitments:
Beginning balance at January 1, 202317,314 
Reversal of credit losses, net(14,635)
Subtotal2,679 
Total allowance for credit losses$69,771 
________________________________
(1)Excludes $0.2 million of allowance for credit losses on exit fees receivable related to the Company's loans held for investment portfolio. Such amounts are recorded within Accrued interest and fees receivable on the Company's consolidated balance sheet and Credit loss expense, net on the Company's consolidated statements of income (loss) and comprehensive income (loss).
The following table presents the allowance for credit losses for loans held for investment (dollars in thousands):
December 31, 2024
General reserveSpecific reserveTotal reserve
Allowance for credit losses:
Loans held for investment$61,558 $— $61,558 
Unfunded loan commitments2,415 — 2,415 
Total allowance for credit losses(1)
$63,973 $— $63,973 
Total unpaid principal balance$3,284,510 $— $3,284,510 
December 31, 2023
General reserveSpecific reserveTotal reserve
Allowance for credit losses:
Loans held for investment$67,092 $— $67,092 
Unfunded loan commitments2,679 — 2,679 
Total allowance for credit losses$69,771 $— $69,771 
Total unpaid principal balance$3,484,052 $— $3,484,052 
________________________________
(1)Excludes $0.2 million of allowance for credit losses on exit fees receivable related to the Company's loans held for investment portfolio. Such amounts are recorded within Accrued interest and fees receivable on the Company's consolidated balance sheet and Credit loss expense, net on the Company's consolidated statements of income (loss) and comprehensive income (loss).
Summary of Aging Analysis for Loans Held for Investment Portfolio by Class of Loans
The following table presents an aging analysis for the Company’s portfolio of loans held for investment, by class of loans on amortized cost basis (dollars in thousands):
Days Outstanding as of December 31, 2024
CurrentDays: 30-59Days: 60-89 Days: 90 or moreTotal loans past dueTotal loans
Loans receivable:
Senior loans$3,278,588 $— $— $— $— $3,278,588 
Total$3,278,588 $— $— $— $— $3,278,588 
 
Days Outstanding as of December 31, 2023
Current Days: 30-59Days: 60-89Days: 90 or moreTotal loans past dueTotal loans
Loans receivable:
Senior loans$3,476,776 $— $— $— $— $3,476,776 
Total$3,476,776 $— $— $— $— $3,476,776 
Schedule of Paid-in-Kind Interest
The following table presents the accrued PIK interest activity for the Company’s loans held for investment portfolio (dollars in thousands):
Year Ended
20242023
Balance as of January 1,
$1,172 $1,714 
Repayments of accrued PIK interest(1,172)(542)
Balance as of March 31,
$— $1,172 
Accrued PIK interest34 — 
Balance as of June 30,
$34 $1,172 
Accrued PIK interest162 — 
Balance as of September 30,
$196 $1,172 
Accrued PIK interest164 — 
Balance as of December 31,$360 $1,172 
v3.25.0.1
Real Estate Owned (Tables)
12 Months Ended
Dec. 31, 2024
Real Estate Owned, Disclosure of Detailed Components [Abstract]  
Schedule of REO Assets and Liabilities
The Company allocated the fair value of the assets and liabilities acquired during the year ended December 31, 2024, as of the acquisition date (dollars in thousands):
Fair Value Allocation
Building and building improvements$71,720 
Land and land improvements16,391 
In-place lease intangibles1,793 
Total$89,904 
The Company allocated the fair value of the assets and liabilities acquired during the year ended December 31, 2023, as of the acquisition date (dollars in thousands):
Fair Value Allocation
Building and building improvements$103,293 
Land and land improvements91,484 
Construction in progress47,091 
In-place lease intangibles27,594 
Above-market lease intangibles3,982 
Below-market lease intangibles(4,311)
Total$269,133 
The following table presents the REO assets and liabilities (dollars in thousands):
December 31, 2024December 31, 2023
Assets
Cash$13,195 $532 
Real estate owned - Building and building improvements174,427 103,293 
Real estate owned - Land and land improvements80,328 67,472 
Real estate owned - Tenant improvements8,678 4,299 
Real estate owned263,433 175,064 
Accumulated depreciation(7,029)(1,007)
Real estate owned, net256,404 174,057 
In-place lease intangibles, net(1)
17,004 25,036 
Above-market lease intangibles, net(1)
2,945 3,902 
Leasing commissions, net(1)
1,935 533 
Other assets, net(1)
9,481 12,384 
Total assets$300,964 $216,444 
Liabilities
Mortgage loan payable, net(2)
$30,695 $30,551 
Below-market lease intangibles, net(3)
2,495 3,707 
Other liabilities(3)
7,377 3,214 
Total liabilities$40,567 $37,472 
________________________________
(1)Included within Other assets within the Company's consolidated balance sheet. Other assets, net includes $3.8 million and $11.3 million of cash proceeds from the Company's mortgage loan payable escrowed for tenant improvements and leasing costs, and other working capital balances as of December 31, 2024 and December 31, 2023, respectively.
(2)During the year ended December 31, 2024, the Company incurred interest expense of $2.6 million, which is included within Interest expense on the Company's consolidated statements of income (loss) and comprehensive income (loss). During the year ended December 31, 2023, the Company incurred interest expense of $1.4 million, which is included within Interest expense on the Company's consolidated statements of income (loss) and comprehensive income (loss).
(3)Included within Accrued expenses and other liabilities within the Company's consolidated balance sheet.
Schedule of Real Estate Owned, Revenue and Expenses
The following table presents the REO operations and related income (loss) (dollars in thousands):
Years Ended
December 31, 2024December 31, 2023
Rental income
Minimum lease payments$27,417 $5,292 
Variable lease payments3,152 1,047 
Total rental income30,569 6,339 
Other operating income131 1,490 
Revenue from real estate owned operations30,700 7,829 
Rental property operating expenses(1)
19,639 3,955 
Depreciation and amortization(2)
15,987 3,577 
Expenses from real estate owned operations35,626 7,532 
Net (loss) income from REO$(4,926)$297 
________________________________
(1)Excludes $2.6 million of interest expense incurred during the year ended December 31, 2024, which is included within Interest expense on the Company's consolidated statements of income (loss) and comprehensive income (loss). Excludes $1.4 million of interest expense incurred during the year ended December 31, 2023, which is included within Interest expense on the Company's consolidated statements of income (loss) and comprehensive income (loss).
(2)During the year ended December 31, 2024, the Company incurred $6.0 million of depreciation expense. During the year ended December 31, 2023, the Company incurred $1.0 million of depreciation expense.
Schedule of Amortization of Lease Intangibles
The following table presents the gross carrying amount and accumulated amortization of lease intangibles (dollars in thousands):
December 31, 2024December 31, 2023
Intangible assets:
In-place lease intangibles$29,387 $27,594 
Above-market lease intangibles3,982 3,982 
Leasing commissions2,088 545 
Total intangible assets35,457 32,121 
Accumulated amortization:
In-place lease intangibles(12,383)(2,558)
Above-market lease intangibles(1,037)(80)
Leasing commissions(153)(12)
Total accumulated amortization(13,573)(2,650)
Intangible assets, net$21,884 $29,471 
Intangible liabilities:
Below-market lease intangibles$4,311 $4,311 
Total intangible liabilities4,311 4,311 
Accumulated amortization:
Below-market lease intangibles(1,816)(604)
Total accumulated amortization(1,816)(604)
Intangible liabilities, net$2,495 $3,707 
Schedule of Estimated Future Amortization
The following table presents the estimated future amortization of the Company's intangibles for each of the next five years (dollars in thousands):
YearIn-place lease intangiblesAbove-market lease intangiblesLeasing
commissions
Below-market lease intangibles
20255,040 877 314 (704)
20262,797 626 267 (496)
20271,672 484 260 (300)
20281,430 426 235 (293)
2029916 119 201 (205)
Schedule of Estimated Future Amortization
The following table presents the estimated future amortization of the Company's intangibles for each of the next five years (dollars in thousands):
YearIn-place lease intangiblesAbove-market lease intangiblesLeasing
commissions
Below-market lease intangibles
20255,040 877 314 (704)
20262,797 626 267 (496)
20271,672 484 260 (300)
20281,430 426 235 (293)
2029916 119 201 (205)
Schedule of Future Minimum Lease Payments The following table presents approximate future minimum rental income under non-cancelable operating leases, excluding variable lease revenue of tenant reimbursements, to be received over the next five years and thereafter as of December 31, 2024 and excludes leases at the Company's multifamily property as they are short term, generally 12 months or less (dollars in thousands):
YearFuture Minimum Rents
202516,485 
202611,556 
202710,358 
20288,239 
20295,092 
Thereafter64,694 
Total$116,424 
v3.25.0.1
Variable Interest Entities and Collateralized Loan Obligations (Tables)
12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Summary of Variable Interest Entities Assets and Liabilities
The following table outlines the total assets and liabilities within the Sub-REIT (dollars in thousands):
December 31, 2024December 31, 2023
Assets
Cash and cash equivalents$71,541 $59,204 
Collateralized loan obligation proceeds held at trustee(1)
— 247,229 
Accounts receivable from servicer/trustee299 300 
Accrued interest receivable10,866 10,207 
Loans held for investment, net(2)
1,917,210 2,245,241 
Real estate owned, net117,090 33,540 
Other assets3,947 5,363 
Total assets$2,120,953 $2,601,084 
Liabilities
Accrued interest payable$4,436 $6,602 
Accrued expenses4,738 777 
Collateralized loan obligations, net(3)
1,681,660 1,915,174 
Payable to affiliates3,052 2,879 
Deferred revenue2,583 2,124 
Total liabilities$1,696,469 $1,927,556 
________________________________
(1)Includes $247.2 million of cash available to acquire eligible assets related to TRTX 2022-FL5 as of December 31, 2023.
(2)Includes three loans held for investment with an unpaid principal balance of $3.9 million as of December 31, 2023.
(3)Net of $0.6 million and $4.6 million of unamortized deferred financing costs as of December 31, 2024 and December 31, 2023, respectively.
Schedule of Borrowings and Corresponding Collateral
The following tables detail the loan collateral and borrowings under the Company's CRE CLOs (dollars in thousands):
December 31, 2024
CRE CLOsCountBenchmark interest rateOutstanding principal balanceCarrying value
Wtd. avg. spread(1)
Wtd. avg. maturity(2)
TRTX 2019-FL3
Collateral loan and REO investments5Term SOFR$311,381$203,4273.68 %1.0
Financing provided1Term SOFR119,526119,5262.46 %9.8
TRTX 2021-FL4
Collateral loan and REO investments19Term SOFR886,409796,5523.84 %2.0
Financing provided1Term SOFR673,909673,9091.93 %13.2
TRTX 2022-FL5
Collateral loan investments26Term SOFR1,056,8221,033,7753.70 %2.1
Financing provided1Term SOFR888,853888,2252.02 %14.1
Total
Collateral loan and REO investments(3)
50Term SOFR$2,254,612$2,033,7543.75 %2.0 years
Financing provided(4)
3Term SOFR$1,682,288$1,681,6602.02 %13.4 years
________________________________
(1)Weighted average spread excludes the amortization of loan fees and deferred financing costs.
(2)Loan term represents weighted average final maturity, assuming extension options are exercised by the borrower. Repayments of CRE CLO notes are dependent on timing of underlying loan repayments post-reinvestment period. The term of the CRE CLO notes represents the rated final distribution date.
(3)Collateral loan investment assets of FL3, FL4 and FL5 represent 9.5%, 27.0% and 32.2%, respectively, of the aggregate unpaid principal balance of the Company's loans held for investment portfolio as of December 31, 2024.
(4)During the year ended December 31, 2024, the Company recognized interest expense of $135.4 million, which includes $4.2 million of deferred financing cost amortization and is reflected within the Company's consolidated statements of income (loss) and comprehensive income (loss).
December 31, 2023
CRE CLOsCountBenchmark interest rateOutstanding principal balance
Carrying value(1)
Wtd. avg. spread(2)
Wtd. avg. maturity(3)
TRTX 2019-FL3
Collateral loan investments5
Term SOFR(4)
$345,150$220,5623.66 %1.7
Financing provided1
Term SOFR(4)
154,291154,2912.38 %10.8
TRTX 2021-FL4
Collateral loan investments21
Term SOFR(5)
1,070,968961,6043.63 %2.5
Financing provided1
Term SOFR(5)
858,468856,7471.80 %14.2
TRTX 2022-FL5
Collateral loan investments15
Term SOFR(6)
1,075,0001,059,2393.61 %3.0
Financing provided1
Term SOFR(6)
907,031904,1362.02 %15.1
Total
Collateral loan investments(7)
41Term SOFR$2,491,118$2,241,4053.62 %2.6 years
Financing provided(8)
3Term SOFR$1,919,790$1,915,1741.95 %14.3 years
________________________________
(1)Includes loan amounts held in the Company's CRE CLOs and excludes other loans held for investment, net of $3.9 million held within the Sub-REIT.
(2)Weighted average spread excludes the amortization of loan fees and deferred financing costs.
(3)Loan term represents weighted average final maturity, assuming extension options are exercised by the borrower. Repayments of CRE CLO notes are dependent on timing of related loan repayments post-reinvestment period. The term of the CRE CLO notes represents the rated final distribution date.
(4)On October 1, 2021, the benchmark index interest rate for borrowings under TRTX 2019-FL3 was converted from Compounded SOFR to Term SOFR by the designated transaction representative under the FL3 indenture. The Company exercised its right to convert the mortgage assets' benchmark interest rate from LIBOR to Term SOFR to eliminate the difference between benchmark rates used for the assets and liabilities of the CRE CLO. As of December 31, 2023, the TRTX 2019-FL3 mortgage assets are indexed to Term SOFR.
(5)On May 15, 2023, the benchmark index interest rate for borrowings under TRTX 2021-FL4 was converted from LIBOR to Term SOFR by the designated transaction representative under the FL4 indenture. The Company exercised its right to convert the mortgage assets' benchmark interest rate from LIBOR to Term SOFR to eliminate the difference between benchmark rates used for the assets and liabilities of the CRE CLO.
(6)The Company had the ability to convert the interest rate benchmark from Compounded SOFR to Term SOFR once 50% of the underlying mortgage loans were converted to Term SOFR. On September 12, 2023, the benchmark interest rate for borrowings under TRTX 2022-FL5 was converted from Compounded SOFR to Term SOFR by the designated transaction representative under the FL5 indenture. As of December 31, 2023, all of the TRTX 2022-FL5 mortgage assets are indexed to Term SOFR.
(7)Collateral loan investment assets of FL3, FL4, and FL5 represent 9.9%, 30.7%, and 30.9%, respectively, of the aggregate unpaid principal balance of the Company's loans held for investment portfolio as of December 31, 2023.
(8)During the year ended December 31, 2023, the Company recognized interest expense of $153.3 million, which includes $5.0 million of deferred financing cost amortization and is reflected within the Company's consolidated statements of income (loss) and comprehensive income (loss).
The following table summarizes the Company's investment portfolio financing (dollars in thousands):
Outstanding principal balance
December 31, 2024December 31, 2023
Collateralized loan obligations(1)
$1,682,288 $1,919,790 
Secured credit agreements585,042 799,518 
Asset-specific financing arrangements186,500 274,158 
Secured revolving credit facility86,625 23,782 
Mortgage loan payable31,200 31,200 
Total$2,571,655 $3,048,448 
________________________________
(1)See Note 5 for additional information regarding the Company's collateralized loan obligations.
The following table details the Company's asset-specific financing arrangements (dollars in thousands):
December 31, 2024
FinancingCollateral
Asset-specific financingCountCommitment amountOutstanding principal balance
Carrying
value(1)
Wtd. avg.
spread(2)
Wtd. avg.
term(3)
CountOutstanding principal balanceAmortized costWtd. avg.
term
HSBC Facility1$144,114 $136,011 $135,451 2.0 %3.63$188,995 $187,958 3.6
BMO Facility1200,000 29,110 29,046 2.0 %2.7138,468 38,365 2.7
Customers Bank123,250 21,379 21,244 2.5 %2.7129,417 29,346 2.7
Total / weighted average$367,364 $186,500 $185,741 2.1 %3.4 years$256,880 $255,669 3.4 years
_______________________
(1)Net of $0.8 million unamortized deferred financing costs.
(2)Collateral loan assets and related financings are indexed to Term SOFR.
(3)Borrowings are term-matched to the corresponding collateral loan asset. The weighted average term assumes all extension options of the collateral loan assets are exercised by the borrower.
The Company repaid all outstanding borrowings under the Company's former $397.9 million asset-specific financing arrangement with an Institutional Lender ("Institutional Lender 2") during the three months ended March 31, 2024.
The following table details the Company's asset-specific financing arrangements (dollars in thousands):
December 31, 2023
FinancingCollateral
Asset-specific financingCountCommitment amountOutstanding principal balance
Carrying
value(1)
Wtd. avg.
spread(2)
Wtd. avg.
term(3)
CountOutstanding principal balanceAmortized costWtd. avg.
term
HSBC Facility1$90,564 $82,143 $81,351 2.1 %3.53$117,343 $116,694 3.5
BMO Facility1200,000 29,110 28,883 2.0 %3.7137,623 37,370 3.7
Institutional Lender 2(4)
1141,526 141,526 141,526 3.5 %1.12136,057 134,319 1.4
Customers Bank123,250 21,379 21,050 2.5 %3.7128,956 28,784 3.7
Total / weighted average$455,340 $274,158 $272,810 2.8 %2.3 years$319,979 $317,167 2.6 years
_______________________
(1)Net of $1.3 million unamortized deferred financing costs.
(2)Collateral loan assets and related financings are indexed to Term SOFR.
(3)Borrowings are term-matched to the corresponding collateral loan asset. The weighted average term assumes all extension options of the collateral loan assets are exercised by the borrower.
(4)Collateral includes one loan and a receivable owed pursuant to the terms of a co-lender agreement and servicing agreement, of which $88.0 million of this borrowing was repaid in January 2024. The remaining borrowings under this asset-specific financing arrangement were repaid during the three months ended March 31, 2024.
v3.25.0.1
Investment Portfolio Financing (Tables)
12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Schedule of Debt
The following tables detail the loan collateral and borrowings under the Company's CRE CLOs (dollars in thousands):
December 31, 2024
CRE CLOsCountBenchmark interest rateOutstanding principal balanceCarrying value
Wtd. avg. spread(1)
Wtd. avg. maturity(2)
TRTX 2019-FL3
Collateral loan and REO investments5Term SOFR$311,381$203,4273.68 %1.0
Financing provided1Term SOFR119,526119,5262.46 %9.8
TRTX 2021-FL4
Collateral loan and REO investments19Term SOFR886,409796,5523.84 %2.0
Financing provided1Term SOFR673,909673,9091.93 %13.2
TRTX 2022-FL5
Collateral loan investments26Term SOFR1,056,8221,033,7753.70 %2.1
Financing provided1Term SOFR888,853888,2252.02 %14.1
Total
Collateral loan and REO investments(3)
50Term SOFR$2,254,612$2,033,7543.75 %2.0 years
Financing provided(4)
3Term SOFR$1,682,288$1,681,6602.02 %13.4 years
________________________________
(1)Weighted average spread excludes the amortization of loan fees and deferred financing costs.
(2)Loan term represents weighted average final maturity, assuming extension options are exercised by the borrower. Repayments of CRE CLO notes are dependent on timing of underlying loan repayments post-reinvestment period. The term of the CRE CLO notes represents the rated final distribution date.
(3)Collateral loan investment assets of FL3, FL4 and FL5 represent 9.5%, 27.0% and 32.2%, respectively, of the aggregate unpaid principal balance of the Company's loans held for investment portfolio as of December 31, 2024.
(4)During the year ended December 31, 2024, the Company recognized interest expense of $135.4 million, which includes $4.2 million of deferred financing cost amortization and is reflected within the Company's consolidated statements of income (loss) and comprehensive income (loss).
December 31, 2023
CRE CLOsCountBenchmark interest rateOutstanding principal balance
Carrying value(1)
Wtd. avg. spread(2)
Wtd. avg. maturity(3)
TRTX 2019-FL3
Collateral loan investments5
Term SOFR(4)
$345,150$220,5623.66 %1.7
Financing provided1
Term SOFR(4)
154,291154,2912.38 %10.8
TRTX 2021-FL4
Collateral loan investments21
Term SOFR(5)
1,070,968961,6043.63 %2.5
Financing provided1
Term SOFR(5)
858,468856,7471.80 %14.2
TRTX 2022-FL5
Collateral loan investments15
Term SOFR(6)
1,075,0001,059,2393.61 %3.0
Financing provided1
Term SOFR(6)
907,031904,1362.02 %15.1
Total
Collateral loan investments(7)
41Term SOFR$2,491,118$2,241,4053.62 %2.6 years
Financing provided(8)
3Term SOFR$1,919,790$1,915,1741.95 %14.3 years
________________________________
(1)Includes loan amounts held in the Company's CRE CLOs and excludes other loans held for investment, net of $3.9 million held within the Sub-REIT.
(2)Weighted average spread excludes the amortization of loan fees and deferred financing costs.
(3)Loan term represents weighted average final maturity, assuming extension options are exercised by the borrower. Repayments of CRE CLO notes are dependent on timing of related loan repayments post-reinvestment period. The term of the CRE CLO notes represents the rated final distribution date.
(4)On October 1, 2021, the benchmark index interest rate for borrowings under TRTX 2019-FL3 was converted from Compounded SOFR to Term SOFR by the designated transaction representative under the FL3 indenture. The Company exercised its right to convert the mortgage assets' benchmark interest rate from LIBOR to Term SOFR to eliminate the difference between benchmark rates used for the assets and liabilities of the CRE CLO. As of December 31, 2023, the TRTX 2019-FL3 mortgage assets are indexed to Term SOFR.
(5)On May 15, 2023, the benchmark index interest rate for borrowings under TRTX 2021-FL4 was converted from LIBOR to Term SOFR by the designated transaction representative under the FL4 indenture. The Company exercised its right to convert the mortgage assets' benchmark interest rate from LIBOR to Term SOFR to eliminate the difference between benchmark rates used for the assets and liabilities of the CRE CLO.
(6)The Company had the ability to convert the interest rate benchmark from Compounded SOFR to Term SOFR once 50% of the underlying mortgage loans were converted to Term SOFR. On September 12, 2023, the benchmark interest rate for borrowings under TRTX 2022-FL5 was converted from Compounded SOFR to Term SOFR by the designated transaction representative under the FL5 indenture. As of December 31, 2023, all of the TRTX 2022-FL5 mortgage assets are indexed to Term SOFR.
(7)Collateral loan investment assets of FL3, FL4, and FL5 represent 9.9%, 30.7%, and 30.9%, respectively, of the aggregate unpaid principal balance of the Company's loans held for investment portfolio as of December 31, 2023.
(8)During the year ended December 31, 2023, the Company recognized interest expense of $153.3 million, which includes $5.0 million of deferred financing cost amortization and is reflected within the Company's consolidated statements of income (loss) and comprehensive income (loss).
The following table summarizes the Company's investment portfolio financing (dollars in thousands):
Outstanding principal balance
December 31, 2024December 31, 2023
Collateralized loan obligations(1)
$1,682,288 $1,919,790 
Secured credit agreements585,042 799,518 
Asset-specific financing arrangements186,500 274,158 
Secured revolving credit facility86,625 23,782 
Mortgage loan payable31,200 31,200 
Total$2,571,655 $3,048,448 
________________________________
(1)See Note 5 for additional information regarding the Company's collateralized loan obligations.
The following table details the Company's asset-specific financing arrangements (dollars in thousands):
December 31, 2024
FinancingCollateral
Asset-specific financingCountCommitment amountOutstanding principal balance
Carrying
value(1)
Wtd. avg.
spread(2)
Wtd. avg.
term(3)
CountOutstanding principal balanceAmortized costWtd. avg.
term
HSBC Facility1$144,114 $136,011 $135,451 2.0 %3.63$188,995 $187,958 3.6
BMO Facility1200,000 29,110 29,046 2.0 %2.7138,468 38,365 2.7
Customers Bank123,250 21,379 21,244 2.5 %2.7129,417 29,346 2.7
Total / weighted average$367,364 $186,500 $185,741 2.1 %3.4 years$256,880 $255,669 3.4 years
_______________________
(1)Net of $0.8 million unamortized deferred financing costs.
(2)Collateral loan assets and related financings are indexed to Term SOFR.
(3)Borrowings are term-matched to the corresponding collateral loan asset. The weighted average term assumes all extension options of the collateral loan assets are exercised by the borrower.
The Company repaid all outstanding borrowings under the Company's former $397.9 million asset-specific financing arrangement with an Institutional Lender ("Institutional Lender 2") during the three months ended March 31, 2024.
The following table details the Company's asset-specific financing arrangements (dollars in thousands):
December 31, 2023
FinancingCollateral
Asset-specific financingCountCommitment amountOutstanding principal balance
Carrying
value(1)
Wtd. avg.
spread(2)
Wtd. avg.
term(3)
CountOutstanding principal balanceAmortized costWtd. avg.
term
HSBC Facility1$90,564 $82,143 $81,351 2.1 %3.53$117,343 $116,694 3.5
BMO Facility1200,000 29,110 28,883 2.0 %3.7137,623 37,370 3.7
Institutional Lender 2(4)
1141,526 141,526 141,526 3.5 %1.12136,057 134,319 1.4
Customers Bank123,250 21,379 21,050 2.5 %3.7128,956 28,784 3.7
Total / weighted average$455,340 $274,158 $272,810 2.8 %2.3 years$319,979 $317,167 2.6 years
_______________________
(1)Net of $1.3 million unamortized deferred financing costs.
(2)Collateral loan assets and related financings are indexed to Term SOFR.
(3)Borrowings are term-matched to the corresponding collateral loan asset. The weighted average term assumes all extension options of the collateral loan assets are exercised by the borrower.
(4)Collateral includes one loan and a receivable owed pursuant to the terms of a co-lender agreement and servicing agreement, of which $88.0 million of this borrowing was repaid in January 2024. The remaining borrowings under this asset-specific financing arrangement were repaid during the three months ended March 31, 2024.
Schedule of Information Related to Secured Credit Agreements Except as otherwise noted, all agreements are on a partial (25%) recourse basis (dollars in thousands):
December 31, 2024
Secured credit agreements(1)
Initial
maturity date
Extended
maturity date
Index
rate
Weighted average
credit spread
Weighted average interest rate Commitment
amount
Maximum
current availability
Balance
outstanding
Principal balance
of collateral
Amortized cost
of collateral
Goldman Sachs(2)
08/19/2608/19/28Term SOFR2.2 %6.6 %$500,000 $238,879 $261,121 $485,557 $485,207 
Wells Fargo(3)
12/06/2712/06/27Term SOFR1.7 %6.0 %500,000 274,470 225,530 295,833 294,810 
Barclays08/13/2508/13/26Term SOFR1.7 %6.0 %500,000 437,474 62,526 84,827 84,754 
Bank of America06/06/2606/06/26Term SOFR1.8 %6.1 %200,000 164,135 35,865 50,824 50,824 
Totals$1,700,000 $1,114,958 $585,042 $917,041 $915,595 
________________________________
(1)Borrowings under secured credit agreements with a 25% recourse guarantee from Holdco. Each secured credit agreement contains defined mark-to-market provisions that permit the lenders to issue margin calls based on credit marks.
(2)On January 31, 2024, the Company executed a two-year extension of the secured credit agreement through August 19, 2026. Until such date, new and revolving borrowings are permitted. After such date, the secured credit agreement automatically enters a two-year term-out period through August 19, 2028.
(3)On December 6, 2024, the Company executed a three-year extension of the secured credit agreement through December 6, 2027.
December 31, 2023
Secured credit agreements(1)
Initial
maturity date
Extended
maturity date
Index
rate
Weighted average
credit spread
Weighted average
interest rate
Commitment
amount
Maximum
current availability
Balance
outstanding
Principal balance
of collateral
Amortized cost
of collateral
Goldman Sachs(2)
08/19/2408/19/24Term SOFR2.2 %7.5 %$500,000 $206,403 $293,597 $376,694 $376,440 
Wells Fargo04/18/2504/18/25Term SOFR1.9 %7.3 %500,000 164,394 335,606 440,804 439,773 
Barclays08/13/2508/13/26Term SOFR2.0 %7.3 %500,000 367,374 132,626 178,827 178,509 
Morgan Stanley(3)
05/04/2405/04/24Term SOFR1.9 %7.2 %500,000 498,176 1,824 10,570 10,570 
Bank of America(4)
06/06/2606/06/26Term SOFR1.8 %7.1 %200,000 164,135 35,865 50,194 50,194 
Totals$2,200,000 $1,400,482 $799,518 $1,057,089 $1,055,486 
________________________________
(1)Borrowings under secured credit agreements with a 25% recourse guarantee from Holdco. Each secured credit agreement contains defined mark-to-market provisions that permit the lenders to issue margin calls based on credit marks.
(2)On August 18, 2023, the Company executed an extension of the secured credit agreement's maturity to August 19, 2024. On January 31, 2024, the Company executed a two-year extension of the secured credit agreement through August 19, 2026. During the two-year extension period, new and revolving borrowings are permitted, after which the secured credit agreement automatically enters a two-year term-out period through August 19, 2028.
(3)On March 17, 2023, the Company executed an extension of the secured credit agreement's maturity that is effective May 4, 2023 with a one year term maturing on May 4, 2024.
(4)On March 20, 2023, the Company executed a short-term extension of the secured credit agreement's maturity to May 30, 2023, and on May 25, 2023 executed a further short-term extension to June 6, 2023. On June 6, 2023, the secured credit agreement's initial and extended maturity was extended to June 6, 2026.
Summary of Secured Credit Agreements Secured by Mortgage Loan Investments, CRE Debt Securities and Counterparty Concentration Risks
The following table summarizes certain characteristics of the Company’s secured credit agreements secured by mortgage loan investments, including counterparty concentration risks (dollars in thousands):
December 31, 2024
Secured credit agreementsCommitment
amount
UPB of
collateral
Amortized cost
of collateral(1)
Amount
payable(2)
Net counterparty exposure(3)
Percent of
stockholders' equity
Days to
extended maturity
Goldman Sachs Bank$500,000 $485,557 $489,121 $261,705 $227,416 20.4 %1327
Wells Fargo500,000 295,833 295,815 226,028 69,787 6.3 %1070
Barclays500,000 84,827 84,750 62,681 22,069 2.0 %590
Bank of America200,000 50,824 51,089 35,899 15,190 1.4 %522
Total / weighted average$1,700,000 $917,041 $920,775 $586,313 $334,462 1100
_______________________
(1)Loan amounts include interest receivable of $5.2 million and are net of premium, discount and origination fees of $1.4 million.
(2)Loan amounts include interest payable of $1.3 million and do not reflect unamortized deferred financing fees of $0.8 million.
(3)Loan amounts represent the net carrying value of the commercial real estate loans 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.
The following table summarizes certain characteristics of the Company’s secured credit agreements secured by mortgage loan investments, including counterparty concentration risks (dollars in thousands):
 December 31, 2023
Secured credit agreementsCommitment
amount
UPB of
collateral
Amortized cost
of collateral(1)
Amount
payable(2)
Net counterparty exposure(3)
Percent of
stockholders' equity
Days to
extended maturity
Goldman Sachs Bank$500,000 $376,694 $379,012 $294,258 $84,754 7.5 %232
Wells Fargo500,000 440,804 443,923 336,539 107,384 9.5 %474
Barclays500,000 178,827 179,152 133,100 46,052 4.1 %956
Morgan Stanley Bank500,000 10,570 10,710 1,871 8,839 0.8 %125
Bank of America200,000 50,194 50,484 35,911 14,573 1.3 %888
Total / weighted average$2,200,000 $1,057,089 $1,063,281 $801,679 $261,602  483
_______________________
(1)Loan amounts include interest receivable of $7.8 million and are net of premium, discount and origination fees of $1.6 million.
(2)Loan amounts include interest payable of $2.2 million and do not reflect unamortized deferred financing fees of $1.5 million.
(3)Loan amounts represent the net carrying value of the commercial real estate loans 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.
Schedule of Financial Covenant Compliance
Our financial covenants and guarantees for outstanding borrowings related to our secured financing agreements require Holdco to maintain compliance with the following financial covenants (among others):
Financial CovenantCurrent
Cash Liquidity
Minimum cash liquidity of no less than the greater of: $15.0 million; and 5.0% of Holdco’s recourse indebtedness.
Tangible Net Worth
$1.0 billion, plus 75% of all subsequent equity issuances (net of discounts, commissions, expense), minus 75% of the redeemed or repurchased preferred or redeemable equity or stock.
Debt-to-Equity
Debt-to-Equity ratio not to exceed 4.25 to 1.0.
Interest Coverage
Minimum interest coverage ratio of no less than 1.4 to 1.0, effective June 30, 2023. Previously, 1.5 to 1.0.
v3.25.0.1
Schedule of Maturities (Tables)
12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Schedule of Future Principal Payments
As of December 31, 2024, future principal payments for the following five years and thereafter are as follows (dollars in thousands):
YearTotal indebtedness
Collateralized loan obligations(1)
Secured credit agreements(2)
Secured revolving credit facility(2)
Asset-specific financing arrangements(3)
Mortgage loan payable
2025$342,520 $193,369 $62,526 $86,625 $— $— 
2026891,359 855,494 35,865 — — — 
2027689,659 377,252 225,530 — 86,877 — 
2028482,955 162,711 261,121 — 27,923 31,200 
2029165,162 93,462 — — 71,700 — 
Thereafter— — — — — — 
Total$2,571,655 $1,682,288 $585,042 $86,625 $186,500 $31,200 
(1)The scheduled maturities for the investment grade bonds issued by the Company's CRE CLOs are based upon the fully extended maturity of the underlying mortgage loan collateral, considering the reinvestment window of each CRE CLO.
(2)The scheduled maturities of the Company's secured credit agreement liabilities are based on the extended maturity date for the specific credit agreement where extension options are at the Company's option, subject to standard default provisions, or the current maturity date of those credit agreements where extension options are subject to counterparty approval.
(3)The scheduled maturities of the Company's asset-specific financing arrangements are based on the fully extended maturity date of the underlying mortgage loan collateral.
v3.25.0.1
Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Summary of Fair Value of Financial Assets and Liabilities
The following tables provide information about the fair value of the Company’s financial assets and liabilities on the Company’s consolidated balance sheets (dollars in thousands):
December 31, 2024
Fair value
Principal balanceCarrying valueLevel ILevel IILevel III
Financial assets  
Loans held for investment$3,284,510 $3,217,030 $— $— $3,258,017 
Financial liabilities
Collateralized loan obligations1,682,288 1,681,660 — — 1,661,615 
Secured credit agreements585,042 584,235 — — 580,921 
Asset-specific financing arrangements186,500 185,741 — — 186,006 
Secured revolving credit facility86,625 86,492 — — 86,625 
Mortgage loan payable31,200 30,695 — — 31,200 
December 31, 2023
Fair value
Principal balanceCarrying valueLevel ILevel IILevel III
Financial assets  
Loans held for investment$3,484,052 $3,409,684 $— $— $3,446,648 
Financial liabilities  
Collateralized loan obligations1,919,790 1,915,174 — — 1,893,803 
Secured credit agreements799,518 798,060 — — 791,495 
Asset-specific financing arrangements274,158 272,810 — — 273,218 
Secured revolving credit facility23,782 22,764 — — 23,323 
Mortgage loan payable31,200 30,551 — — 31,200 
v3.25.0.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Dividends Declared
The following table details the income tax treatment for dividends declared on the Company's common stock:
For the Years Ended December 31,
2024(1)
2023(2)
2022
Ordinary income dividends$0.80 $0.12 $0.95 
Return of capital0.16 0.61 — 
Total common stock dividends$0.96 $0.73 $0.95 
________________________________
(1)The Company declared $0.96 of common stock dividends during the year ended December 31, 2024. Pursuant to IRC Section 857(b)(9), cash distributions made on January 24, 2025 with a record date of December 27, 2024 are treated for federal income tax purposes as received by shareholders on December 31, 2024 to the extent of the Company’s 2024 earnings and profits. As the Company’s aggregate 2024 dividends declared exceeded its 2024 earnings and profits, the January 2025 cash distribution declared in the fourth quarter of 2024 will be treated as a 2025 distribution for federal income tax purposes and will not be included on the 2024 Form 1099-DIV.
(2)The Company declared $0.96 of common stock dividends during the year ended December 31, 2023. Pursuant to IRC Section 857(b)(9), cash distributions made on January 25, 2024 with a record date of December 29, 2023 are treated for federal income tax purposes as received by shareholders on December 31, 2023 to the extent of the Company’s 2023 earnings and profits. As the Company’s aggregate 2023 dividends declared exceeded its 2023 earnings and profits, the January 2024 cash distribution declared in the fourth quarter of 2023 will be treated as a 2024 distribution for federal income tax purposes and will not be included on the 2023 Form 1099-DIV.
v3.25.0.1
Related Party Transactions (Tables)
12 Months Ended
Dec. 31, 2024
Related Party Transactions [Abstract]  
Summary of Management Fees and Incentive Management Fees Incurred and Paid Pursuant to Management Agreement
The following table details the management fees and incentive management fees incurred and paid pursuant to the Management Agreement (dollars in thousands):
Years Ended December 31,
202420232022
Incurred
Management fees$20,249 $22,426 $23,455 
Incentive management fee— 5,183
Total management and incentive fees incurred$20,249 $22,426 $28,638 
Paid
Management fees$20,051 $23,497 $23,080 
Incentive management fee— — 5,183 
Total management and incentive fees paid$20,051 $23,497 $28,263 
v3.25.0.1
Earnings per Share (Tables)
12 Months Ended
Dec. 31, 2024
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 based on the weighted average number of shares of common stock outstanding (dollars in thousands, except share and per share data):
Year Ended December 31,
202420232022
Net income (loss)$74,335 $(116,630)$(60,066)
Preferred stock dividends(1)
(12,592)(12,592)(12,592)
Participating securities' share in earnings(2,077)(1,683)(986)
Net income (loss) attributable to common stockholders$59,666 $(130,905)$(73,644)
Weighted average common shares outstanding, basic79,801,990 77,575,788 77,296,524 
Weighted average common shares outstanding, diluted79,888,044 77,575,788 77,296,524 
Earnings (loss) per common share, basic(2)
$0.75 $(1.69)$(0.95)
Earnings (loss) per common share, diluted(2)
$0.75 $(1.69)$(0.95)
_______________________
(1)Includes preferred stock dividends declared and paid on outstanding shares of Series A Preferred Stock and Series C Preferred Stock.
(2)Basic and diluted earnings per common share are computed independently based on the weighted average shares of common stock outstanding. Diluted earnings per common share includes the impact of participating securities outstanding. Prior to the May 8, 2024 Warrant exercise, diluted earnings per common share included any incremental shares that would be outstanding assuming the exercise of the Warrants. The sum of the quarterly earnings (loss) per common share amounts may not agree to the total for the years ended December 31, 2024, 2023, and 2022.
v3.25.0.1
Stock-based Compensation (Tables)
12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award
The following table details the outstanding common stock awards and includes the numbers of shares granted and weighted average grant date fair value per share under the Incentive Plan:
Common Stock
Weighted Average Grant Date Fair Value per Share
Balance as of December 31, 2021835,929 $13.16 
Granted1,141,926 7.93 
Vested(278,821)14.25 
Forfeited(15,594)12.06 
Balance as of December 31, 20221,683,440 $9.44 
Granted950,000 6.66 
Vested(527,831)10.55 
Forfeited(6,545)7.64 
Balance as of December 31, 20232,099,064 $7.91 
Granted990,100 8.51 
Vested(712,041)8.51 
Forfeited— — 
Balance as of December 31, 20242,377,123 $7.98 
Schedule of Awarded Shares Vesting Period
The following table presents the number of shares associated with outstanding awards that will vest over the next four years:
Share Grant Vesting YearShares of Common Stock
2025875,674 
2026768,892 
2027485,053 
2028247,504 
Total2,377,123 
v3.25.0.1
Concentration of Credit Risk (Tables)
12 Months Ended
Dec. 31, 2024
Risks and Uncertainties [Abstract]  
Summary of Loans Held for Investment Portfolio by Property/ Loan Category Type
A summary of the Company’s portfolio of loans held for investment by property type based on total loan commitment and current unpaid principal balance (“UPB”) follows (dollars in thousands):
December 31, 2024
Property typeLoan commitmentUnfunded commitment
% of loan commitment
Loan UPB
% of loan UPB
Multifamily$1,777,221 $56,101 52.0 %$1,721,480 52.4 %
Office606,047 23,788 17.8 582,259 17.7 
Life Science368,573 14,019 10.8 354,554 10.8 
Hotel348,400 14,110 10.2 334,290 10.2 
Industrial166,000 16,400 4.9 149,600 4.6 
Mixed-Use78,775 3,448 2.3 75,327 2.3 
Self Storage67,000 — 2.0 67,000 2.0 
Total$3,412,016 $127,866 100.0 %$3,284,510 100.0 %
December 31, 2023
Property typeLoan commitmentUnfunded commitment
% of loan commitment
Loan UPB
% of loan UPB
Multifamily$1,801,668 $67,035 49.2 %$1,734,633 49.7 %
Office728,447 42,489 19.9 685,958 19.8 
Life Science404,600 31,739 11.0 372,861 10.7 
Hotel389,643 14,110 10.6 376,705 10.8 
Mixed-Use115,215 6,256 3.1 108,959 3.1 
Industrial107,000 7,504 2.9 99,496 2.9 
Self Storage69,000 2,000 1.9 67,000 1.9 
Other50,600 12,160 1.4 38,440 1.1 
Total$3,666,173 $183,293 100.0 %$3,484,052 100.0 %
A summary of the Company’s portfolio of loans held for investment by loan category based on total loan commitment and current UPB follows (dollars in thousands):
December 31, 2024
Loan categoryLoan commitmentUnfunded commitment
% of loan commitment
Loan UPB
% of loan UPB
Bridge$1,522,789 $27,472 44.6 %$1,495,677 45.5 %
Moderate Transitional1,009,038 63,063 29.6 945,975 28.8 
Light Transitional880,189 37,331 25.8 842,858 25.7 
Total$3,412,016 $127,866 100.0 %$3,284,510 100.0 %
December 31, 2023
Loan categoryLoan commitmentUnfunded commitment
% of loan commitment
Loan UPB
% of loan UPB
Bridge$1,540,873 $32,898 42.0 %$1,507,975 43.3 %
Moderate Transitional1,156,858 99,507 31.6 1,058,523 30.4 
Light Transitional917,842 38,728 25.0 879,114 25.2 
Construction50,600 12,160 1.4 38,440 1.1 
Total$3,666,173 $183,293 100.0 %$3,484,052 100.0 %
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 total loan commitment and current UPB follows (dollars in thousands):
December 31, 2024
Geographic regionLoan commitmentUnfunded commitment
% of loan commitment
Loan UPB
% of loan UPB
West$1,254,320 $47,318 36.7 %$1,207,362 36.8 %
East965,249 12,678 28.3 952,571 29.0 
South817,847 49,016 24.0 768,831 23.4 
Various309,000 16,800 9.1 292,200 8.9 
Midwest65,600 2,054 1.9 63,546 1.9 
Total$3,412,016 $127,866 100.0 %$3,284,510 100.0 %
December 31, 2023
Geographic regionLoan commitmentUnfunded commitment
% of loan commitment
Loan UPB
% of loan UPB
West$1,159,180 $62,263 31.6 %$1,096,917 31.5 %
East1,156,075 31,096 31.5 1,126,151 32.3 
South1,061,968 75,430 29.0 986,538 28.3 
Midwest149,950 8,743 4.1 141,207 4.1 
Various139,000 5,761 3.8 133,239 3.8 
Total$3,666,173 $183,293 100.0 %$3,484,052 100.0 %
v3.25.0.1
Summary of Significant Accounting Policies - Additional Information (Details)
loan in Thousands, $ in Thousands
12 Months Ended
May 08, 2024
shares
Jun. 14, 2021
shares
Dec. 31, 2024
USD ($)
loan
segment
method
shares
Dec. 31, 2023
USD ($)
shares
Significant Accounting Policies [Line Items]        
Number of operating segments | segment     1  
Number of reportable segments | segment     1  
Loans past due, trigger percentage     90.00%  
Estimating credit losses in loan portfolio (in methods) | method     2  
Percentage of senior mortgage loan transferred to third-party     100.00%  
Issuance of common stock (in shares) | shares 2,647,059      
Warrants to purchase common stock (in shares) | shares     0  
Maximum insured amount of each cash account     $ 250 $ 250
Cash     15,000 15,000
Restricted cash [1]     323 642
Cash and cash equivalents [1]     $ 190,160 $ 206,376
Period before remittance by servicer (less than)     30 days  
Series C Preferred Stock        
Significant Accounting Policies [Line Items]        
Preferred stock, shares issued (in shares) | shares   8,050,000 8,050,000 8,050,000
Dividend rate (in percent)   6.25%    
Warrants        
Significant Accounting Policies [Line Items]        
Warrants exercised (in shares) | shares 2,647,059      
Holdco        
Significant Accounting Policies [Line Items]        
Debt covenant, minimum cash balance required     $ 15,000  
Minimum cash reserve percentage     0.05  
Maximum | Commercial Real Estate Loans        
Significant Accounting Policies [Line Items]        
Loan performance (in loans) | loan     125  
[1] The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2024 include assets and liabilities of variable interest entities (“VIEs”) of $2.1 billion and $1.7 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2023 include assets and liabilities of VIEs of $2.6 billion and $1.9 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details.
v3.25.0.1
Summary of Significant Accounting Policies - Depreciation (Details)
Dec. 31, 2024
Building  
Property, Plant and Equipment [Line Items]  
Depreciable Life 48 years
Building improvements  
Property, Plant and Equipment [Line Items]  
Depreciable Life 12 years
v3.25.0.1
Loans Held for Investment and the Allowance for Credit Losses - Additional Information (Details)
3 Months Ended 12 Months Ended
Dec. 31, 2024
USD ($)
loan
Sep. 30, 2024
USD ($)
loan
Jun. 30, 2024
USD ($)
loan
Mar. 31, 2024
USD ($)
loan
Dec. 31, 2023
USD ($)
loan
Sep. 30, 2023
USD ($)
loan
Jun. 30, 2023
USD ($)
loan
Dec. 31, 2024
USD ($)
loan
Dec. 31, 2023
USD ($)
loan
Dec. 31, 2022
USD ($)
Mar. 31, 2023
USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]                      
Accrued interest, location Accrued interest and fees receivable       Accrued interest and fees receivable     Accrued interest and fees receivable Accrued interest and fees receivable    
Accrued interest $ 16,000,000.0       $ 20,200,000     $ 16,000,000.0 $ 20,200,000    
Total loan commitment 3,412,016,000       3,666,173,000     3,412,016,000 3,666,173,000    
Unfunded loan commitments 127,866,000       183,293,000     127,866,000 183,293,000    
Unpaid principal balance               89,499,000 241,868,000 $ 76,500,000  
Investment transaction expense           $ 900,000          
Loan sale hold back               0 30,027,000 0  
Sales of loans held for investment               92,798,000 247,649,000 0  
Unamortized loan fees 5,900,000       5,200,000     5,900,000 5,200,000    
Unamortized discounts included in loans held for investment at amortized cost $ 0       2,100,000     $ 0 2,100,000    
Weighted average risk rating 3.0             3.0      
Decrease for allowance for credit losses               $ 5,800,000 144,800,000    
Total allowance for credit losses $ 63,973,000       $ 69,771,000     63,973,000 69,771,000    
Allowance for credit loss, decrease from full loan repayments               (4,900,000)      
Allowance for credit losses increase due to increased loan origination               2,700,000      
Increase in allowance for credit loss for macroeconomic events               $ 6,100,000 23,800,000    
Allowance from net investment activity                 2,500,000    
Allowance for credit loss from loan resolution                 $ 168,600,000    
Individual assessment, number of loans | loan 0       0     0 0    
Financing receivable, recovery, number of loans | loan 0       0     0 0    
Nonaccrual, number of loans | loan 0       0     0 0    
Loans accrued interest income $ 0       $ 0     $ 0 $ 0    
Number of loans modified during the period | loan   1 1 1              
Cash for capital structure     $ 11,300,000                
Total loan commitment due to modification     11,300,000                
Increase to financing receivable from modification     $ 7,800,000                
Interest rate, paid in kind     8.00%                
Accrued paid in kind interest outstanding 360,000 $ 196,000 $ 34,000 $ 0 1,172,000 1,172,000 $ 1,172,000 360,000 $ 1,172,000 $ 1,714,000 $ 1,172,000
Accrued PIK interest $ 164,000 $ 162,000 $ 34,000   $ 0 $ 0 $ 0 $ 400,000      
Loans held for investment                      
Accounts, Notes, Loans and Financing Receivable [Line Items]                      
Weighted average risk rating 3.0       3.0     3.0 3.0    
Realized loss on loan write-offs               $ 9,700,000 $ 334,700,000    
One First Mortgage Loan, Office Property                      
Accounts, Notes, Loans and Financing Receivable [Line Items]                      
Number of loans sold | loan         1 1 1        
Proceeds from sale of loan         $ 29,000,000.0 $ 79,000,000.0 $ 47,800,000        
Loan sales         84,700,000 152,400,000 71,300,000        
Loss on sale           74,400,000 24,100,000   $ 55,800,000    
Investment transaction expense         $ 40,000.00   $ 600,000        
Mortgage Loan Office Property                      
Accounts, Notes, Loans and Financing Receivable [Line Items]                      
Loss on sale           24,900,000          
Additional transaction expense           $ 800,000          
One First Mortgage Loan, Mixed Use Property                      
Accounts, Notes, Loans and Financing Receivable [Line Items]                      
Number of loans sold | loan           1          
Proceeds from sale of loan           $ 95,000,000.0          
Loan sales           129,200,000          
Loss on sale           35,000,000.0          
Investment transaction expense           $ 800,000          
One First Mortgage Loan, Multifamily Property                      
Accounts, Notes, Loans and Financing Receivable [Line Items]                      
Number of loans sold | loan         1            
Proceeds from sale of loan         $ 98,700,000            
Loan sales         127,300,000            
Loss on sale         22,400,000            
Investment transaction expense         2,700,000            
Loan sale hold back         30,000,000.0            
Reversal of unamortized discount         8,900,000            
Eight Loans                      
Accounts, Notes, Loans and Financing Receivable [Line Items]                      
Number of mortgage loans | loan               8      
Total loan commitment $ 562,300,000             $ 562,300,000      
Loans and leases receivable unpaid principal balance 532,000,000.0             532,000,000.0      
Unfunded loan commitments $ 30,300,000             $ 30,300,000      
Fourteen Loan Investments                      
Accounts, Notes, Loans and Financing Receivable [Line Items]                      
Number of mortgage loans | loan               14 14    
Loan repayment principal amount               $ 609,600,000 $ 907,000,000    
Interest received in kind                 $ 195,400,000    
Seven Loans                      
Accounts, Notes, Loans and Financing Receivable [Line Items]                      
Number of mortgage loans | loan               7      
Interest received in kind               $ 63,800,000      
Total loan repayments               $ 673,400,000      
Two Loans                      
Accounts, Notes, Loans and Financing Receivable [Line Items]                      
Number of loans sold | loan               2      
Unpaid principal balance               $ 99,200,000      
Four Loans                      
Accounts, Notes, Loans and Financing Receivable [Line Items]                      
Number of mortgage loans | loan                 4    
Total loan commitment         229,400,000       $ 229,400,000    
Loans and leases receivable unpaid principal balance         196,700,000       196,700,000    
Unfunded loan commitments         32,700,000       $ 32,700,000    
Ten Loan Investments                      
Accounts, Notes, Loans and Financing Receivable [Line Items]                      
Number of mortgage loans | loan                 10    
Loan repayment principal amount                 $ 711,600,000    
Five Loan                      
Accounts, Notes, Loans and Financing Receivable [Line Items]                      
Loans and leases receivable unpaid principal balance         $ 564,900,000       $ 564,900,000    
Number of loans sold | loan                 5    
Proceeds from sale of loan                 $ 349,500,000    
Six Loan Investments                      
Accounts, Notes, Loans and Financing Receivable [Line Items]                      
Number of loans sold | loan                 6    
Unpaid principal balance                 $ 386,100,000    
v3.25.0.1
Loans Held for Investment and the Allowance for Credit Losses - Schedule of Overall Statistics for Loan Held for Investment Portfolio (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2024
USD ($)
loan
Dec. 31, 2023
USD ($)
loan
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Number of loans | loan 45 53
Floating rate loans 99.70% 100.00%
Total loan commitment $ 3,412,016 $ 3,666,173
Unpaid principal balance 3,284,510 3,484,052
Unfunded loan commitments 127,866 183,293
Amortized cost [1] $ 3,278,588 $ 3,476,776
Weighted average credit spread 3.70% 3.70%
Weighted average all-in yield 8.30% 9.30%
Weighted average term to extended maturity (in years) 2 years 4 months 24 days 2 years 7 months 6 days
Accrued PIK interest $ 400 $ 1,200
Percentage of loans subject to yield maintenance or other prepayment restrictions 22.10%  
Percentage of loans open to repayment by borrower without penalty 77.90%  
Subordinated and mezzanine loans    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Number of loans | loan 45 53
Floating rate loans 99.70% 100.00%
Total loan commitment $ 3,412,016 $ 3,666,173
Unpaid principal balance 3,284,510 3,484,052
Unfunded loan commitments 127,866 183,293
Amortized cost $ 3,278,588 $ 3,476,776
Weighted average credit spread 3.70% 3.70%
Weighted average all-in yield 8.30% 9.30%
Weighted average term to extended maturity (in years) 2 years 4 months 24 days 2 years 7 months 6 days
Fixed Rate Contiguous Mezzanine Loans    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Number of loans | loan 1  
[1] The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2024 include assets and liabilities of variable interest entities (“VIEs”) of $2.1 billion and $1.7 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2023 include assets and liabilities of VIEs of $2.6 billion and $1.9 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details.
v3.25.0.1
Loans Held for Investment and the Allowance for Credit Losses - Schedule of Loans Held for Investment Portfolio by Loan Seniority (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Outstanding principal $ 3,284,510 $ 3,484,052
Amortized cost [1] 3,278,588 3,476,776
Allowance for credit losses [1] (61,558) (67,092)
Loans held for investment, net [1] 3,217,030 3,409,684
Senior loans    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Outstanding principal 3,284,510 3,484,052
Unamortized premium (discount) and loan origination fees, net (5,922) (7,276)
Amortized cost 3,278,588 3,476,776
Allowance for credit losses (61,558) (67,092)
Loans held for investment, net $ 3,217,030 $ 3,409,684
[1] The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2024 include assets and liabilities of variable interest entities (“VIEs”) of $2.1 billion and $1.7 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2023 include assets and liabilities of VIEs of $2.6 billion and $1.9 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details.
v3.25.0.1
Loans Held for Investment and the Allowance for Credit Losses - Summary of Loans Held for Investment Portfolio Activity (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward]      
Beginning balance $ 3,409,684 $ 4,781,402 $ 4,867,203
Loans originated and acquired 527,276 194,706 1,519,406
Additional fundings 40,697 140,547 145,199
Accrued PIK interest 360 0  
Amortization of origination fees and discounts 6,075 11,955  
Collection of principal (672,196) (890,566) (1,506,870)
Collection of accrued PIK interest (1,172) (542)  
Collection of interest applied to reduce principal under the cost-recovery method 0 (15,894)  
Realized loss on loan write-offs, loan sales, and REO conversions (9,729) (334,727)  
Loan sales 0 (343,637)  
Loan extinguishment upon conversion to REO (89,499) (263,740)  
Decrease of allowance for credit losses 5,534 130,180  
Ending balance $ 3,217,030 $ 3,409,684 $ 4,781,402
v3.25.0.1
Loans Held for Investment and the Allowance for Credit Losses - Summary Of Amortized Cost By Origination Year Grouped By Risk Rating for Loans Held for Investment Portfolio (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost [1] $ 3,278,588 $ 3,476,776
Current-period realized loss on loan write-offs related to loan sales and REO conversions (9,729) (334,727)
Senior loans    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis of loans by origination year, one 530,451 196,268
Amortized cost basis of loans by origination year, two 201,588 1,073,528
Amortized cost basis of loans by origination year, three 752,847 1,313,889
Amortized cost basis of loans by origination year, four 1,213,894 100,550
Amortized cost basis of loans by origination year, five 0 590,264
Amortized cost 579,808 202,277
Amortized cost 3,278,588 3,476,776
Current-period realized loss on loan sales and REO conversions, year one 0 0
Current-period realized loss on loan sales and REO conversions, year two 0 (29,630)
Current-period realized loss on loan sales and REO conversions, year three (7,818) (8,526)
Current-period realized loss on loan sales and REO conversions, year four (1,911) (24,906)
Current-period realized loss on loan sales and REO conversions, year five 0 (188,275)
Current-period realized loss on loan sales and REO conversions, prior 0 (83,390)
Current-period realized loss on loan write-offs related to loan sales and REO conversions (9,729) (334,727)
1 | Senior loans    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis of loans by origination year, one 0 0
Amortized cost basis of loans by origination year, two 0 0
Amortized cost basis of loans by origination year, three 0 0
Amortized cost basis of loans by origination year, four 0 0
Amortized cost basis of loans by origination year, five 0 0
Amortized cost 0 0
Amortized cost 0 0
2 | Senior loans    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis of loans by origination year, one 62,716 0
Amortized cost basis of loans by origination year, two 0 0
Amortized cost basis of loans by origination year, three 0 0
Amortized cost basis of loans by origination year, four 0 0
Amortized cost basis of loans by origination year, five 0 99,000
Amortized cost 0 0
Amortized cost 62,716 99,000
3 | Senior loans    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis of loans by origination year, one 467,735 196,268
Amortized cost basis of loans by origination year, two 201,588 1,013,299
Amortized cost basis of loans by origination year, three 752,847 1,313,889
Amortized cost basis of loans by origination year, four 1,213,894 100,550
Amortized cost basis of loans by origination year, five 0 450,849
Amortized cost 462,607 86,073
Amortized cost 3,098,671 3,160,928
4 | Senior loans    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis of loans by origination year, one 0 0
Amortized cost basis of loans by origination year, two 0 60,229
Amortized cost basis of loans by origination year, three 0 0
Amortized cost basis of loans by origination year, four 0 0
Amortized cost basis of loans by origination year, five 0 40,415
Amortized cost 117,201 116,204
Amortized cost 117,201 216,848
5 | Senior loans    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis of loans by origination year, one 0 0
Amortized cost basis of loans by origination year, two 0 0
Amortized cost basis of loans by origination year, three 0 0
Amortized cost basis of loans by origination year, four 0 0
Amortized cost basis of loans by origination year, five 0 0
Amortized cost 0 0
Amortized cost $ 0 $ 0
[1] The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2024 include assets and liabilities of variable interest entities (“VIEs”) of $2.1 billion and $1.7 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2023 include assets and liabilities of VIEs of $2.6 billion and $1.9 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details.
v3.25.0.1
Loans Held for Investment and the Allowance for Credit Losses - Summary of Amortized Cost and Results of Internal Risk Rating Review Performed for Loans Held for Investment Portfolio (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total [1] $ 3,278,588 $ 3,476,776
Allowance for credit losses [1] (61,558) (67,092)
Loans held for investment, net [1] $ 3,217,030 3,409,684
Weighted average risk rating 3.0  
Loans held for investment    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total $ 3,278,588 3,476,776
Allowance for credit losses (61,558) (67,092)
Loans held for investment, net $ 3,217,030 $ 3,409,684
Weighted average risk rating 3.0 3.0
1 | Loans held for investment    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total $ 0 $ 0
2 | Loans held for investment    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total 62,716 99,000
3 | Loans held for investment    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total 3,098,671 3,160,928
4 | Loans held for investment    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total 117,201 216,848
5 | Loans held for investment    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total $ 0 $ 0
[1] The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2024 include assets and liabilities of variable interest entities (“VIEs”) of $2.1 billion and $1.7 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2023 include assets and liabilities of VIEs of $2.6 billion and $1.9 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details.
v3.25.0.1
Loans Held for Investment and the Allowance for Credit Losses - Summary of Activity in Allowance for Credit Losses for Loans Held for Investment Portfolio by Class of Financing Receivable (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Allowance for credit losses for loans held for investment:      
Beginning balance, allowance for credit loss [1] $ 67,092    
Allowance for credit losses, net (Reversal of credit losses, net) 4,147 $ 189,912 $ 172,982
Ending balance, allowance for credit loss [1] 61,558 67,092  
Allowance for credit losses on unfunded loan commitments:      
Beginning balance, allowance for credit loss 2,679    
Ending balance, allowance for credit loss 2,415 2,679  
Total allowance for credit losses 63,973 69,771  
Allowance for credit losses excluded 200    
Senior loans      
Allowance for credit losses on unfunded loan commitments:      
Total allowance for credit losses 63,973 69,771  
Loans held for investment      
Allowance for credit losses for loans held for investment:      
Beginning balance, allowance for credit loss 67,092    
Ending balance, allowance for credit loss 61,558 67,092  
Loans held for investment | Senior loans      
Allowance for credit losses for loans held for investment:      
Beginning balance, allowance for credit loss 67,092 197,272  
Allowance for credit losses, net (Reversal of credit losses, net) 4,195 204,547  
Realized loss on loan write-off (9,729) (334,727)  
Ending balance, allowance for credit loss 61,558 67,092 197,272
Unfunded loan commitments | Senior loans      
Allowance for credit losses on unfunded loan commitments:      
Beginning balance, allowance for credit loss 2,679 17,314  
Allowance for (reversal of) credit losses, net (264) (14,635)  
Ending balance, allowance for credit loss $ 2,415 $ 2,679 $ 17,314
[1] The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2024 include assets and liabilities of variable interest entities (“VIEs”) of $2.1 billion and $1.7 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2023 include assets and liabilities of VIEs of $2.6 billion and $1.9 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details.
v3.25.0.1
Loans Held for Investment and the Allowance for Credit Losses - Summary of Activity in Allowance for Credit Losses for Loans Held for Investment (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Allowance for credit losses:    
Loans held for investment [1] $ 61,558 $ 67,092
Unfunded loan commitments 2,415 2,679
Total allowance for credit losses 63,973 69,771
Total unpaid principal balance 3,284,510 3,484,052
Allowance for credit losses excluded 200  
Senior loans    
Allowance for credit losses:    
Total allowance for credit losses 63,973 69,771
General reserve    
Allowance for credit losses:    
Loans held for investment 61,558 67,092
Unfunded loan commitments 2,415 2,679
Total allowance for credit losses 63,973 69,771
Total unpaid principal balance 3,284,510 3,484,052
Specific reserve    
Allowance for credit losses:    
Loans held for investment 0 0
Unfunded loan commitments 0 0
Total allowance for credit losses 0 0
Total unpaid principal balance $ 0 $ 0
[1] The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2024 include assets and liabilities of variable interest entities (“VIEs”) of $2.1 billion and $1.7 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2023 include assets and liabilities of VIEs of $2.6 billion and $1.9 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details.
v3.25.0.1
Loans Held for Investment and the Allowance for Credit Losses - Summary of Aging Analysis for Loans Held for Investment Portfolio by Class of Loans (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans held for investment [1] $ 3,278,588 $ 3,476,776
Senior loans    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans held for investment 3,278,588 3,476,776
Current    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans held for investment 3,278,588 3,476,776
Current | Senior loans    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans held for investment 3,278,588 3,476,776
Days: 30-59    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans held for investment 0 0
Days: 30-59 | Senior loans    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans held for investment 0 0
Days: 60-89    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans held for investment 0 0
Days: 60-89 | Senior loans    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans held for investment 0 0
Days: 90 or more    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans held for investment 0 0
Days: 90 or more | Senior loans    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans held for investment 0 0
Total loans past due    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans held for investment 0 0
Total loans past due | Senior loans    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans held for investment $ 0 $ 0
[1] The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2024 include assets and liabilities of variable interest entities (“VIEs”) of $2.1 billion and $1.7 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2023 include assets and liabilities of VIEs of $2.6 billion and $1.9 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details.
v3.25.0.1
Loans Held for Investment and the Allowance for Credit Losses - Schedule of Paid-in-Kind Interest (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2024
Paid In Kind Interest [Roll Forward]                  
Balance $ 196 $ 34 $ 0 $ 1,172 $ 1,172 $ 1,172 $ 1,172 $ 1,714 $ 1,172
Repayments of accrued PIK interest       (1,172)       (542)  
Accrued PIK interest 164 162 34   0 0 0   400
Balance $ 360 $ 196 $ 34 $ 0 $ 1,172 $ 1,172 $ 1,172 $ 1,172 $ 360
v3.25.0.1
Real Estate Owned - Additional Information (Details)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 16, 2024
USD ($)
Nov. 05, 2024
USD ($)
Dec. 28, 2023
USD ($)
Dec. 27, 2023
USD ($)
Dec. 15, 2023
USD ($)
Dec. 31, 2024
USD ($)
property
Dec. 31, 2023
USD ($)
property
Dec. 31, 2024
USD ($)
property
Dec. 31, 2023
USD ($)
property
Dec. 31, 2022
USD ($)
property
Sep. 30, 2024
USD ($)
Sep. 30, 2023
USD ($)
Jun. 30, 2023
USD ($)
Mar. 31, 2023
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Real Estate Owned [Line Items]                                  
Number of properties owned | property           8   8                  
Real estate owned, net           $ 275,800   $ 275,800                  
Real estate owned properties acquired (in properties) | property           3   3                  
Aggregate fair value               $ 89,900                  
Assumed working capital               400                  
Carrying value [1]           $ 3,217,030 $ 3,409,684 3,217,030 $ 3,409,684                
Gain on sale of real estate owned, net               0 7,028 $ 13,291              
Capital expenditures related to real estate owned               5,600 5,700                
Accrued capital expenditures related to real estate owned               $ 298 315 0              
Weighted average minimum term           11 years   11 years                  
In-place lease intangibles                                  
Real Estate Owned [Line Items]                                  
Weighted average amortization period               8 years 1 month 6 days                  
Above-market lease intangibles                                  
Real Estate Owned [Line Items]                                  
Weighted average amortization period               5 years 9 months 18 days                  
Leasing Commissions                                  
Real Estate Owned [Line Items]                                  
Weighted average amortization period               7 years 9 months 18 days                  
Below-market lease intangibles                                  
Real Estate Owned [Line Items]                                  
Weighted average amortization period               6 years 3 months 18 days                  
Mortgage loan payable                                  
Real Estate Owned [Line Items]                                  
Debt face amount           $ 31,200   $ 31,200         $ 31,200        
Senior loans                                  
Real Estate Owned [Line Items]                                  
Amortized cost basis of loans by origination year, one           530,451 196,268 530,451 196,268                
Amortized cost basis of loans by origination year, four           1,213,894 100,550 1,213,894 100,550                
Carrying value           3,217,030 3,409,684 3,217,030 3,409,684                
Amortized cost basis of loans by origination year, three           752,847 1,313,889 752,847 1,313,889                
Amortized cost basis of loans by origination year, five           0 590,264 0 590,264                
Amortized cost basis of loans by origination year, two           201,588 1,073,528 201,588 1,073,528                
Amortized cost           579,808 202,277 579,808 202,277                
Senior loans | 4                                  
Real Estate Owned [Line Items]                                  
Amortized cost basis of loans by origination year, one           0 0 0 0                
Amortized cost basis of loans by origination year, four           0 0 0 0                
Amortized cost basis of loans by origination year, three           0 0 0 0                
Amortized cost basis of loans by origination year, five           0 40,415 0 40,415                
Amortized cost basis of loans by origination year, two           0 60,229 0 60,229                
Amortized cost           117,201 116,204 117,201 116,204                
Senior loans | 5                                  
Real Estate Owned [Line Items]                                  
Amortized cost basis of loans by origination year, one           0 0 0 0                
Amortized cost basis of loans by origination year, four           0 0 0 0                
Amortized cost basis of loans by origination year, three           0 0 0 0                
Amortized cost basis of loans by origination year, five           0 0 0 0                
Amortized cost basis of loans by origination year, two           0 0 0 0                
Amortized cost           $ 0 $ 0 $ 0 $ 0                
San Antonio, TX                                  
Real Estate Owned [Line Items]                                  
Number of properties owned | property           2   2                  
San Antonio, TX | Senior loans                                  
Real Estate Owned [Line Items]                                  
Carrying value                     $ 52,400            
San Antonio, TX | Multifamily | Senior loans                                  
Real Estate Owned [Line Items]                                  
Amortized cost basis of loans by origination year, one                   62,400              
Realized loss on conversion   $ 7,800                              
San Antonio, TX | Multifamily | Senior loans | 4                                  
Real Estate Owned [Line Items]                                  
Amortized cost basis of loans by origination year, three                     60,200            
Chicago, IL | Senior loans                                  
Real Estate Owned [Line Items]                                  
Carrying value                     37,100            
Chicago, IL | Multifamily | Senior loans                                  
Real Estate Owned [Line Items]                                  
Amortized cost basis of loans by origination year, one                             $ 39,000    
Realized loss on conversion $ 1,900                                
Chicago, IL | Multifamily | Senior loans | 4                                  
Real Estate Owned [Line Items]                                  
Amortized cost basis of loans by origination year, four                     $ 39,000            
Arlington | Senior loans                                  
Real Estate Owned [Line Items]                                  
Carrying value                       $ 76,300          
Arlington | Multifamily | Senior loans                                  
Real Estate Owned [Line Items]                                  
Amortized cost basis of loans by origination year, one                             $ 80,000    
Realized loss on conversion     $ 8,500                            
Arlington | Multifamily | Senior loans | 4                                  
Real Estate Owned [Line Items]                                  
Amortized cost basis of loans by origination year, three                       79,700          
Orange, CA | Office Property | Senior loans                                  
Real Estate Owned [Line Items]                                  
Amortized cost basis of loans by origination year, one                               $ 76,500  
Carrying value                       24,300          
Realized loss on conversion     $ 40,400                            
Orange, CA | Office Property | Senior loans | 5                                  
Real Estate Owned [Line Items]                                  
Amortized cost basis of loans by origination year, five                       60,300          
San Mateo, CA | Office Property | Senior loans                                  
Real Estate Owned [Line Items]                                  
Amortized cost basis of loans by origination year, one                               75,800  
Carrying value                       32,600          
Realized loss on conversion       $ 42,400                          
San Mateo, CA | Office Property | Senior loans | 5                                  
Real Estate Owned [Line Items]                                  
Amortized cost basis of loans by origination year, five                       61,900          
Manhattan, NY | Office Property | Senior loans                                  
Real Estate Owned [Line Items]                                  
Amortized cost basis of loans by origination year, one                               $ 54,000  
Carrying value                       44,300          
Realized loss on conversion         $ 14,800                        
Manhattan, NY | Office Property | Senior loans | 5                                  
Real Estate Owned [Line Items]                                  
Amortized cost basis of loans by origination year, five                       $ 52,600          
Los Angeles, CA | Senior loans                                  
Real Estate Owned [Line Items]                                  
Carrying value                         71,100        
Los Angeles, CA | Multifamily | Senior loans                                  
Real Estate Owned [Line Items]                                  
Amortized cost basis of loans by origination year, one                   $ 97,000              
Los Angeles, CA | Multifamily | Senior loans | 4                                  
Real Estate Owned [Line Items]                                  
Amortized cost basis of loans by origination year, two                         $ 77,100        
Houston, TX | Senior loans                                  
Real Estate Owned [Line Items]                                  
Carrying value                           $ 46,000      
Houston, TX | Office Property | Senior loans                                  
Real Estate Owned [Line Items]                                  
Amortized cost basis of loans by origination year, one                                 $ 55,700
Houston, TX | Office Property | Senior loans | 5                                  
Real Estate Owned [Line Items]                                  
Amortized cost                           $ 55,000      
Multifamily Properties                                  
Real Estate Owned [Line Items]                                  
Number of properties owned | property           4   4                  
Office Building                                  
Real Estate Owned [Line Items]                                  
Number of properties owned | property           4 4 4 4                
Multifamily                                  
Real Estate Owned [Line Items]                                  
Number of properties owned | property             2   2 2              
Net cash proceeds from sale of property             $ 75,400                    
Gain on sale of real estate owned, net             $ 7,000                    
[1] The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2024 include assets and liabilities of variable interest entities (“VIEs”) of $2.1 billion and $1.7 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2023 include assets and liabilities of VIEs of $2.6 billion and $1.9 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details.
v3.25.0.1
Real Estate Owned - Real Estate Allocated Fair Value of Assets and Liabilities Acquired (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Asset Acquisition [Line Items]    
Total $ 89,900  
Asset Acquisitions 2024    
Asset Acquisition [Line Items]    
Building and building improvements 71,720  
Land and land improvements 16,391  
In-place lease intangibles 1,793  
Total $ 89,904  
Asset Acquisitions 2023    
Asset Acquisition [Line Items]    
Building and building improvements   $ 103,293
Land and land improvements   91,484
Construction in progress   47,091
In-place lease intangibles   27,594
Above-market lease intangibles   3,982
Below-market lease intangibles   (4,311)
Total   $ 269,133
v3.25.0.1
Real Estate Owned - Real Estate Owned Assets and Liabilities (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Asset Acquisition [Line Items]      
Interest expense $ 198,854 $ 273,862 $ 160,755
Office Property      
Asset Acquisition [Line Items]      
Cash 13,195 532  
Real estate owned - Building and building improvements 174,427 103,293  
Real estate owned - Land and land improvements 80,328 67,472  
Real estate owned - Tenant improvements 8,678 4,299  
Real estate owned 263,433 175,064  
Accumulated depreciation (7,029) (1,007)  
Real estate owned, net 256,404 174,057  
In-place lease intangibles, net 17,004 25,036  
Above-market lease intangibles, net 2,945 3,902  
Leasing commissions, net 1,935 533  
Other assets, net 9,481 12,384  
Total assets 300,964 216,444  
Mortgage loan payable, net 30,695 30,551  
Below-market lease intangibles, net 2,495 3,707  
Other liabilities 7,377 3,214  
Total liabilities 40,567 37,472  
Cash escrowed 3,800 11,300  
Interest expense $ 2,600 $ 1,400  
v3.25.0.1
Real Estate Owned -Real Estate Owned Operations and Related Income (Loss) (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Real Estate Owned, Disclosure of Detailed Components [Abstract]          
Minimum lease payments     $ 27,417 $ 5,292  
Variable lease payments     3,152 1,047  
Total rental income     $ 30,569 $ 6,339  
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] Revenue from real estate owned operations Revenue from real estate owned operations Revenue from real estate owned operations Revenue from real estate owned operations  
Other operating income     $ 131 $ 1,490  
Revenue from real estate owned operations     30,700 7,829 $ 0
Rental property operating expenses     19,639 3,955  
Depreciation and amortization     15,987 3,577  
Expenses from real estate owned operations     35,626 7,532 0
Net (loss) income from REO     (4,926) 297  
Interest expense     198,854 273,862 $ 160,755
Depreciation and amortization     $ 6,000 $ 1,000  
v3.25.0.1
Real Estate Owned - Gross Carrying Amount and Accumulated Amortization of Lease Intangibles (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Real Estate Owned [Line Items]    
Total intangible assets $ 35,457 $ 32,121
Total accumulated amortization (13,573) (2,650)
Intangible assets, net 21,884 29,471
Total intangible liabilities 4,311 4,311
Total accumulated amortization (1,816) (604)
Intangible liabilities, net 2,495 3,707
In-place lease intangibles    
Real Estate Owned [Line Items]    
Total intangible assets 29,387 27,594
Total accumulated amortization (12,383) (2,558)
Above-market lease intangibles    
Real Estate Owned [Line Items]    
Total intangible assets 3,982 3,982
Total accumulated amortization (1,037) (80)
Leasing Commissions    
Real Estate Owned [Line Items]    
Total intangible assets 2,088 545
Total accumulated amortization (153) (12)
Below-market lease intangibles    
Real Estate Owned [Line Items]    
Total intangible liabilities 4,311 4,311
Total accumulated amortization $ (1,816) $ (604)
v3.25.0.1
Real Estate Owned - Estimated Future Amortization (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
In-place lease intangibles  
Finite-Lived Intangible Assets [Line Items]  
2025 $ 5,040
2026 2,797
2027 1,672
2028 1,430
2029 916
Above-market lease intangibles  
Finite-Lived Intangible Assets [Line Items]  
2025 877
2026 626
2027 484
2028 426
2029 119
Leasing Commissions  
Finite-Lived Intangible Assets [Line Items]  
2025 314
2026 267
2027 260
2028 235
2029 201
Below-market lease intangibles  
Below-market lease intangibles  
2025 (704)
2026 (496)
2027 (300)
2028 (293)
2029 $ (205)
v3.25.0.1
Real Estate Owned - Future Minimum Lease Payments (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Real Estate Owned, Disclosure of Detailed Components [Abstract]  
2025 $ 16,485
2026 11,556
2027 10,358
2028 8,239
2029 5,092
Thereafter 64,694
Total $ 116,424
v3.25.0.1
Variable Interest Entities and Collateralized Loan Obligations - Additional Information (Details)
$ in Thousands
Feb. 17, 2022
USD ($)
loan
Feb. 16, 2022
USD ($)
Mar. 31, 2021
USD ($)
Oct. 25, 2019
Nov. 29, 2018
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Oct. 11, 2021
USD ($)
Dec. 11, 2020
USD ($)
Variable Interest Entities And Collateralized Loan Obligation [Line Items]                  
Total loan commitment           $ 3,412,016 $ 3,666,173    
FL2 Mortgage Assets                  
Variable Interest Entities And Collateralized Loan Obligation [Line Items]                  
Redemption of investment-grade bonds outstanding $ 600,000                
FL2 Mortgage Assets | Goldman, Sachs & Co.                  
Variable Interest Entities And Collateralized Loan Obligation [Line Items]                  
Loans and leases receivable unpaid principal balance 463,800                
Total loan commitment 250,000                
Borrowing $ 359,100                
FL5 Mortgage Assets                  
Variable Interest Entities And Collateralized Loan Obligation [Line Items]                  
Number of secured credit facilities | loan 17                
Loans and leases receivable unpaid principal balance $ 805,700                
Collateralized loan obligations | TRTX 2022-FL5                  
Variable Interest Entities And Collateralized Loan Obligation [Line Items]                  
Reinvestment period   24 months              
Deferred financing costs, including issuance, legal, and accounting related costs   $ 6,500              
Collateralized loan obligations | TRTX 2021-FL4                  
Variable Interest Entities And Collateralized Loan Obligation [Line Items]                  
Reinvestment period     24 months            
Deferred financing costs, including issuance, legal, and accounting related costs     $ 8,300            
Collateralized loan obligations | TRTX 2019-FL3                  
Variable Interest Entities And Collateralized Loan Obligation [Line Items]                  
Reinvestment period       24 months          
Deferred financing costs, including issuance, legal, and accounting related costs               $ 7,800  
Collateralized loan obligations | FL2-Notes                  
Variable Interest Entities And Collateralized Loan Obligation [Line Items]                  
Reinvestment period         24 months        
Deferred financing costs, including issuance, legal, and accounting related costs                 $ 8,700
v3.25.0.1
Variable Interest Entities and Collateralized Loan Obligations - Summary of Variable Interest Entities Assets and Liabilities (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
loan
Assets    
Cash and cash equivalents [1] $ 190,160 $ 206,376
Collateralized loan obligation proceeds held at trustee [1] 0 247,229
Accounts receivable from servicer/trustee [1] 369 66,468
Real estate owned, net 275,800  
Other assets [1] 39,866 77,621
Total assets [1] 3,731,429 4,214,312
Liabilities    
Accrued interest payable [1] 6,655 10,225
Payable to affiliates [1] 5,111 4,913
Deferred revenue [1] 1,744 1,281
Total liabilities [1] 2,617,388 3,089,527
Unamortized deferred financing costs 600 4,600
Variable Interest Entity, Primary Beneficiary    
Assets    
Cash and cash equivalents 71,541 59,204
Collateralized loan obligation proceeds held at trustee 0 247,229
Accounts receivable from servicer/trustee 299 300
Accrued interest receivable 10,866 10,207
Loans held for investment, net 1,917,210 2,245,241
Real estate owned, net 117,090 33,540
Other assets 3,947 5,363
Total assets 2,120,953 2,601,084
Liabilities    
Accrued interest payable 4,436 6,602
Accrued expenses 4,738 777
Collateralized loan obligations, net 1,681,660 1,915,174
Total liabilities 1,696,469 $ 1,927,556
Number of loans held for investment | loan   3
Loans held for investment   $ 3,900
Variable Interest Entity, Primary Beneficiary | FL5 Securities    
Assets    
Collateralized loan obligation proceeds held at trustee   247,200
Affiliated Entity | Variable Interest Entity, Primary Beneficiary    
Liabilities    
Payable to affiliates 3,052 2,879
Deferred revenue $ 2,583 $ 2,124
[1] The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2024 include assets and liabilities of variable interest entities (“VIEs”) of $2.1 billion and $1.7 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2023 include assets and liabilities of VIEs of $2.6 billion and $1.9 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details.
v3.25.0.1
Variable Interest Entities and Collateralized Loan Obligations - Schedule of Borrowings and Corresponding Collateral (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2024
USD ($)
loan
Dec. 31, 2023
USD ($)
loan
Dec. 31, 2022
USD ($)
Debt Instrument [Line Items]      
Count (in loans) | loan 45 53  
Minimum conversion rate   0.50  
Interest expense $ 198,854 $ 273,862 $ 160,755
Amortization of deferred financing costs 7,989 $ 13,354 $ 15,007
FL2-Notes      
Debt Instrument [Line Items]      
Loans held for investment, aggregate unpaid principal balance percentage   9.90%  
TRTX 2019-FL3      
Debt Instrument [Line Items]      
Loans held for investment, aggregate unpaid principal balance percentage   30.70%  
TRTX 2021-FL4      
Debt Instrument [Line Items]      
Loans held for investment, aggregate unpaid principal balance percentage   30.90%  
Collateralized loan obligations      
Debt Instrument [Line Items]      
Interest expense 135,400 $ 153,300  
Amortization of deferred financing costs $ 4,200 5,000  
Collateralized loan obligations | FL3 Mortgage Assets      
Debt Instrument [Line Items]      
Loans held for investment, aggregate unpaid principal balance percentage 9.50%    
Collateralized loan obligations | Collateral Assets      
Debt Instrument [Line Items]      
Outstanding principal balance $ 2,254,612 2,491,118  
Carrying value $ 2,033,754 $ 2,241,405  
Collateralized loan obligations | Collateral (Loan Investments)      
Debt Instrument [Line Items]      
Count (in loans) | loan 50 41  
Weighted average credit spread 3.75% 3.62%  
Weighted average maturity 2 years 2 years 7 months 6 days  
Collateralized loan obligations | Debt (Notes Issued)      
Debt Instrument [Line Items]      
Count (in loans) | loan 3 3  
Outstanding principal balance $ 1,682,288 $ 1,919,790  
Carrying value $ 1,681,660 $ 1,915,174  
Weighted average credit spread 2.02% 1.95%  
Weighted average maturity 13 years 4 months 24 days 14 years 3 months 18 days  
Collateralized loan obligations | FL2-Notes | Collateral Assets      
Debt Instrument [Line Items]      
Outstanding principal balance   $ 345,150  
Carrying value   $ 220,562  
Collateralized loan obligations | FL2-Notes | Collateral (Loan Investments)      
Debt Instrument [Line Items]      
Count (in loans) | loan   5  
Weighted average credit spread   3.66%  
Weighted average maturity   1 year 8 months 12 days  
Collateralized loan obligations | FL2-Notes | Debt (Notes Issued)      
Debt Instrument [Line Items]      
Count (in loans) | loan   1  
Outstanding principal balance   $ 154,291  
Carrying value   $ 154,291  
Weighted average credit spread   2.38%  
Weighted average maturity   10 years 9 months 18 days  
Collateralized loan obligations | TRTX 2019-FL3 | Collateral Assets      
Debt Instrument [Line Items]      
Outstanding principal balance $ 311,381 $ 1,070,968  
Carrying value $ 203,427 $ 961,604  
Collateralized loan obligations | TRTX 2019-FL3 | Collateral (Loan Investments)      
Debt Instrument [Line Items]      
Count (in loans) | loan 5 21  
Weighted average credit spread 3.68% 3.63%  
Weighted average maturity 1 year 2 years 6 months  
Collateralized loan obligations | TRTX 2019-FL3 | Debt (Notes Issued)      
Debt Instrument [Line Items]      
Count (in loans) | loan 1 1  
Outstanding principal balance $ 119,526 $ 858,468  
Carrying value $ 119,526 $ 856,747  
Weighted average credit spread 2.46% 1.80%  
Weighted average maturity 9 years 9 months 18 days 14 years 2 months 12 days  
Collateralized loan obligations | TRTX 2021-FL4 | Collateral Assets      
Debt Instrument [Line Items]      
Outstanding principal balance $ 886,409    
Carrying value $ 796,552    
Collateralized loan obligations | TRTX 2021-FL4 | Collateralized loan obligations      
Debt Instrument [Line Items]      
Outstanding principal balance   $ 1,075,000  
Carrying value   $ 1,059,239  
Collateralized loan obligations | TRTX 2021-FL4 | Collateral (Loan Investments)      
Debt Instrument [Line Items]      
Count (in loans) | loan 19 15  
Weighted average credit spread 3.84% 3.61%  
Weighted average maturity 2 years 3 years  
Collateralized loan obligations | TRTX 2021-FL4 | Debt (Notes Issued)      
Debt Instrument [Line Items]      
Count (in loans) | loan 1 1  
Outstanding principal balance $ 673,909 $ 907,031  
Carrying value $ 673,909 $ 904,136  
Weighted average credit spread 1.93% 2.02%  
Weighted average maturity 13 years 2 months 12 days 15 years 1 month 6 days  
Collateralized loan obligations | TRTX 2022-FL5 | Collateralized loan obligations      
Debt Instrument [Line Items]      
Outstanding principal balance $ 1,056,822    
Carrying value $ 1,033,775    
Collateralized loan obligations | TRTX 2022-FL5 | Collateral (Loan Investments)      
Debt Instrument [Line Items]      
Count (in loans) | loan 26    
Weighted average credit spread 3.70%    
Weighted average maturity 2 years 1 month 6 days    
Collateralized loan obligations | TRTX 2022-FL5 | Debt (Notes Issued)      
Debt Instrument [Line Items]      
Count (in loans) | loan 1    
Outstanding principal balance $ 888,853    
Carrying value $ 888,225    
Weighted average credit spread 2.02%    
Weighted average maturity 14 years 1 month 6 days    
Collateralized loan obligations | FL4 Securities      
Debt Instrument [Line Items]      
Loans held for investment, aggregate unpaid principal balance percentage 27.00%    
Collateralized loan obligations | FL5 Securities      
Debt Instrument [Line Items]      
Loans held for investment, aggregate unpaid principal balance percentage 32.20%    
v3.25.0.1
Investment Portfolio Financing - Schedule of Debt (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Debt Instrument [Line Items]    
Principal balance $ 2,571,655 $ 3,048,448
Collateralized loan obligations    
Debt Instrument [Line Items]    
Principal balance 1,682,288 1,919,790
Secured credit agreements    
Debt Instrument [Line Items]    
Principal balance 585,042 799,518
Asset-specific financing arrangements    
Debt Instrument [Line Items]    
Principal balance 186,500 274,158
Secured revolving credit facility    
Debt Instrument [Line Items]    
Principal balance 86,625 23,782
Mortgage loan payable    
Debt Instrument [Line Items]    
Principal balance $ 31,200 $ 31,200
v3.25.0.1
Investment Portfolio Financing - Schedule of Information Related to Secured Credit Agreements (Details) - USD ($)
$ in Thousands
12 Months Ended
Feb. 22, 2022
Dec. 31, 2024
Dec. 31, 2023
Dec. 06, 2024
Jan. 31, 2024
Jun. 06, 2023
Mar. 17, 2023
Debt Instrument [Line Items]              
Balance outstanding   $ 2,571,655 $ 3,048,448        
Term extension           3 years  
Secured Credit Agreements and Secured Credit Facilities              
Debt Instrument [Line Items]              
Commitment amount   1,700,000 2,200,000        
Maximum current availability   1,114,958 1,400,482        
Balance outstanding   585,042 799,518        
Principal balance of collateral   917,041 1,057,089        
Amortized cost of collateral   915,595 1,055,486        
Secured credit agreements              
Debt Instrument [Line Items]              
Balance outstanding   $ 585,042 $ 799,518        
Recourse guarantee percentage   25.00%          
Holdco              
Debt Instrument [Line Items]              
Recourse guarantee percentage 100.00%            
Holdco | Secured credit agreements              
Debt Instrument [Line Items]              
Recourse guarantee percentage   25.00% 25.00%        
Goldman Sachs Bank | Debt Instrument Interest Rate At 7.5% | Secured Credit Agreements and Secured Credit Facilities              
Debt Instrument [Line Items]              
Weighted average credit spread   2.20% 2.20%        
Weighted average interest rate   6.60% 7.50%        
Commitment amount   $ 500,000 $ 500,000        
Maximum current availability   238,879 206,403        
Balance outstanding   261,121 293,597        
Principal balance of collateral   485,557 376,694        
Amortized cost of collateral   $ 485,207 $ 376,440        
Goldman Sachs Bank | Debt Instrument, Interest Rate at 7.1% | Secured Credit Agreements and Secured Credit Facilities              
Debt Instrument [Line Items]              
Term extension         2 years    
Term out period         2 years    
Wells Fargo | Debt Instrument Interest Rate At 7.0% | Secured Credit Agreements and Secured Credit Facilities              
Debt Instrument [Line Items]              
Weighted average credit spread   1.70%          
Weighted average interest rate   6.00%          
Commitment amount   $ 500,000          
Maximum current availability   274,470          
Balance outstanding   225,530          
Principal balance of collateral   295,833          
Amortized cost of collateral   $ 294,810          
Wells Fargo | Debt Instrument, Interest Rate at 7.1% | Secured Credit Agreements and Secured Credit Facilities              
Debt Instrument [Line Items]              
Term extension       3 years      
Wells Fargo | Debt Instrument Interest Rate At 7.3% | Secured Credit Agreements and Secured Credit Facilities              
Debt Instrument [Line Items]              
Weighted average credit spread     1.90%        
Weighted average interest rate     7.30%        
Commitment amount     $ 500,000        
Maximum current availability     164,394        
Balance outstanding     335,606        
Principal balance of collateral     440,804        
Amortized cost of collateral     $ 439,773        
Barclays | Debt Instrument Interest Rate At 6.9% | Secured Credit Agreements and Secured Credit Facilities              
Debt Instrument [Line Items]              
Weighted average credit spread   1.70%          
Weighted average interest rate   6.00%          
Commitment amount   $ 500,000          
Maximum current availability   437,474          
Balance outstanding   62,526          
Principal balance of collateral   84,827          
Amortized cost of collateral   $ 84,754          
Barclays | Debt Instrument Interest Rate At 7.3% | Secured Credit Agreements and Secured Credit Facilities              
Debt Instrument [Line Items]              
Weighted average credit spread     2.00%        
Weighted average interest rate     7.30%        
Commitment amount     $ 500,000        
Maximum current availability     367,374        
Balance outstanding     132,626        
Principal balance of collateral     178,827        
Amortized cost of collateral     $ 178,509        
Morgan Stanley Bank | Debt Instrument Interest Rate At 7.2% | Secured Credit Agreements and Secured Credit Facilities              
Debt Instrument [Line Items]              
Weighted average credit spread     1.90%        
Weighted average interest rate     7.20%        
Commitment amount     $ 500,000        
Maximum current availability     498,176        
Balance outstanding     1,824        
Principal balance of collateral     10,570        
Amortized cost of collateral     $ 10,570        
Term extension             1 year
Bank of America | Debt Instrument, Interest Rate at 7.1% | Secured Credit Agreements and Secured Credit Facilities              
Debt Instrument [Line Items]              
Weighted average credit spread   1.80% 1.80%        
Weighted average interest rate   6.10% 7.10%        
Commitment amount   $ 200,000 $ 200,000        
Maximum current availability   164,135 164,135        
Balance outstanding   35,865 35,865        
Principal balance of collateral   50,824 50,194        
Amortized cost of collateral   $ 50,824 $ 50,194        
v3.25.0.1
Investment Portfolio Financing - Additional Information (Details)
$ in Thousands
3 Months Ended 12 Months Ended
Jun. 21, 2024
USD ($)
Dec. 05, 2023
USD ($)
Jun. 30, 2022
USD ($)
Feb. 22, 2022
USD ($)
lender
Dec. 31, 2023
USD ($)
agreement
loan
Sep. 30, 2023
Dec. 31, 2024
USD ($)
agreement
loan
Dec. 31, 2023
USD ($)
agreement
loan
Dec. 31, 2022
USD ($)
Sep. 26, 2024
USD ($)
Mar. 31, 2024
Sep. 29, 2023
Jun. 30, 2023
USD ($)
Jun. 06, 2023
Nov. 17, 2022
USD ($)
Debt Instrument [Line Items]                              
Term extension                           3 years  
Maximum commitment amount       $ 250,000         $ 290,000            
Number of lenders provided credit facility | lender       5                      
Credit facility term       3 years                      
Basis spread on variable rate       2.00%                      
Percentage of unused fee (in basis points)             0.20% 0.20%              
Unused fee, target utilization percent       50.00%                      
Maximum period permits to finance eligible loans       180 days                      
Initial advance rate       75.00%                      
Change in advance rate         0.0005 0.0005                  
Outstanding borrowings         $ 23,800   $ 86,600 $ 23,800              
Holdco                              
Debt Instrument [Line Items]                              
Recourse guarantee percentage       100.00%                      
Minimum                              
Debt Instrument [Line Items]                              
Percentage of unused fee (in basis points)       0.15%                      
Maximum                              
Debt Instrument [Line Items]                              
Percentage of unused fee (in basis points)       0.20%                      
After 90 days from initial borrowing                              
Debt Instrument [Line Items]                              
Initial advance rate       65.00%                      
After 135 days from initial borrowing                              
Debt Instrument [Line Items]                              
Initial advance rate       45.00%                      
After 180 days from initial borrowing                              
Debt Instrument [Line Items]                              
Initial advance rate       0.00%                      
Secured credit agreements                              
Debt Instrument [Line Items]                              
Payments on secured financing             $ 594,381 $ 814,193 1,346,574            
Number of secured credit agreements | agreement         5   4 5              
Recourse guarantee percentage             25.00%                
Secured credit agreements | Holdco                              
Debt Instrument [Line Items]                              
Recourse guarantee percentage             25.00% 25.00%              
Interest coverage, minimum           1.30 1.4       1.40 1.40      
Secured credit agreements | Commercial Mortgage Loans                              
Debt Instrument [Line Items]                              
Number of secured credit facilities | loan         28   21 28              
Secured credit agreements | Company transfers rights to counter party with option to buy back                              
Debt Instrument [Line Items]                              
Number of secured credit agreements | agreement             3                
Asset-specific financing arrangements                              
Debt Instrument [Line Items]                              
Payments on secured financing             $ 159,358 $ 386,164 $ 19,465            
Collateralized loan obligations, net [1]         $ 272,810   $ 185,741 272,810              
Asset-specific financing arrangements | Holdco                              
Debt Instrument [Line Items]                              
Recourse guarantee percentage     25.00%                        
Mortgage loan payable                              
Debt Instrument [Line Items]                              
Credit facility term             5 years                
Debt face amount             $ 31,200           $ 31,200    
Interest rate, stated percentage             7.70%                
Collateralized loan obligations, net [1]         30,551   $ 30,695 30,551              
Morgan Stanley Bank | Commercial Mortgage Loans                              
Debt Instrument [Line Items]                              
Debt face amount         $ 500,000     $ 500,000              
HSBC Facility | Asset-specific financing arrangements                              
Debt Instrument [Line Items]                              
Maximum commitment amount   $ 90,600                          
Borrowing capacity increase                   $ 72,000          
BMO Facility | Asset-specific financing arrangements                              
Debt Instrument [Line Items]                              
Maximum commitment amount     $ 200,000                        
Customers Bank | Asset-specific financing arrangements                              
Debt Instrument [Line Items]                              
Maximum commitment amount                             $ 23,300
Debt Instrument, Interest Rate at 6.7% | Morgan Stanley Bank | Secured Debt                              
Debt Instrument [Line Items]                              
Payments on secured financing $ 1,800                            
Loan Pledged As Collateral                              
Debt Instrument [Line Items]                              
Number of loan investments | loan         1   1 1              
Debt face amount         $ 32,800   $ 115,500 $ 32,800              
Office Property Mortgage Loan | Asset-specific financing arrangements | Holdco                              
Debt Instrument [Line Items]                              
Recourse guarantee percentage   20.00%                          
[1] The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2024 include assets and liabilities of variable interest entities (“VIEs”) of $2.1 billion and $1.7 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2023 include assets and liabilities of VIEs of $2.6 billion and $1.9 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details.
v3.25.0.1
Investment Portfolio Financing - Summary of Secured Credit Agreements Secured by Mortgage Loan Investments, CRE Debt Securities and Counterparty Concentration Risks (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Repurchase Agreement Counterparty [Line Items]    
Amount payable $ 2,571,655  
Accrued interest payable [1] 6,655 $ 10,225
Unamortized deferred financing costs 600 4,600
Secured Credit Agreements and Secured Credit Facilities    
Repurchase Agreement Counterparty [Line Items]    
Commitment amount 1,700,000 2,200,000
UPB of collateral 917,041 1,057,089
Amortized cost of collateral 920,775 1,063,281
Amount payable 586,313 801,679
Net counterparty exposure $ 334,462 $ 261,602
Days to extended maturity 1100 days 483 days
Commercial Mortgage Loans    
Repurchase Agreement Counterparty [Line Items]    
Accrued interest receivable $ 5,200 $ 7,800
Premium, discount and origination fees 1,400 1,600
Accrued interest payable 1,300 2,200
Unamortized deferred financing costs 800 1,500
Goldman Sachs Bank | Commercial Mortgage Loans    
Repurchase Agreement Counterparty [Line Items]    
Commitment amount 500,000 500,000
UPB of collateral 485,557 376,694
Amortized cost of collateral 489,121 379,012
Amount payable 261,705 294,258
Net counterparty exposure $ 227,416 $ 84,754
Percent of stockholders' equity 20.40% 7.50%
Days to extended maturity 1327 days 232 days
Wells Fargo | Commercial Mortgage Loans    
Repurchase Agreement Counterparty [Line Items]    
Commitment amount $ 500,000 $ 500,000
UPB of collateral 295,833 440,804
Amortized cost of collateral 295,815 443,923
Amount payable 226,028 336,539
Net counterparty exposure $ 69,787 $ 107,384
Percent of stockholders' equity 6.30% 9.50%
Days to extended maturity 1070 days 474 days
Barclays | Commercial Mortgage Loans    
Repurchase Agreement Counterparty [Line Items]    
Commitment amount $ 500,000 $ 500,000
UPB of collateral 84,827 178,827
Amortized cost of collateral 84,750 179,152
Amount payable 62,681 133,100
Net counterparty exposure $ 22,069 $ 46,052
Percent of stockholders' equity 2.00% 4.10%
Days to extended maturity 590 days 956 days
Morgan Stanley Bank | Commercial Mortgage Loans    
Repurchase Agreement Counterparty [Line Items]    
Commitment amount   $ 500,000
UPB of collateral   10,570
Amortized cost of collateral   10,710
Amount payable   1,871
Net counterparty exposure   $ 8,839
Percent of stockholders' equity   0.80%
Days to extended maturity   125 days
Bank of America | Commercial Mortgage Loans    
Repurchase Agreement Counterparty [Line Items]    
Commitment amount $ 200,000 $ 200,000
UPB of collateral 50,824 50,194
Amortized cost of collateral 51,089 50,484
Amount payable 35,899 35,911
Net counterparty exposure $ 15,190 $ 14,573
Percent of stockholders' equity 1.40% 1.30%
Days to extended maturity 522 days 888 days
[1] The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2024 include assets and liabilities of variable interest entities (“VIEs”) of $2.1 billion and $1.7 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2023 include assets and liabilities of VIEs of $2.6 billion and $1.9 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details.
v3.25.0.1
Investment Portfolio Financing - Asset-Specific Financing Arrangements (Details)
$ in Thousands
1 Months Ended 12 Months Ended
Jan. 31, 2024
USD ($)
Dec. 31, 2024
USD ($)
loan
Dec. 31, 2023
USD ($)
loan
Dec. 31, 2022
USD ($)
Mar. 31, 2024
USD ($)
Dec. 05, 2023
USD ($)
Nov. 17, 2022
USD ($)
Jun. 30, 2022
USD ($)
Feb. 22, 2022
USD ($)
Debt Instrument [Line Items]                  
Principal balance   $ 2,571,655 $ 3,048,448            
Carrying value   $ 2,571,655              
Number of loans | loan   45 53            
Unamortized deferred financing costs   $ (5,900) $ (5,200)            
Repayments of first mortgage bond   237,502 541,379 $ 1,001,850          
Maximum commitment amount       $ 290,000         $ 250,000
Asset-specific financing arrangements                  
Debt Instrument [Line Items]                  
Principal balance   186,500 274,158            
Carrying value   186,500              
Asset-specific financing arrangements | Financing                  
Debt Instrument [Line Items]                  
Debt face amount   367,364 455,340            
Principal balance   186,500 274,158            
Carrying value   $ 185,741 $ 272,810            
Weighted average credit spread   2.10% 2.80%            
Wtd. avg. term   3 years 4 months 24 days 2 years 3 months 18 days            
Unamortized deferred financing costs   $ 800 $ 1,300            
Asset-specific financing arrangements | Collateral                  
Debt Instrument [Line Items]                  
Principal balance   $ 256,880 $ 319,979            
Wtd. avg. term   3 years 4 months 24 days 2 years 7 months 6 days            
Amortized cost of collateral   $ 255,669 $ 317,167            
HSBC Facility | Asset-specific financing arrangements                  
Debt Instrument [Line Items]                  
Maximum commitment amount           $ 90,600      
HSBC Facility | Asset-specific financing arrangements | Office Property Mortgage Loan                  
Debt Instrument [Line Items]                  
Number of asset-specific financing arrangements | loan   1 1            
Number of loans | loan   3 3            
HSBC Facility | Asset-specific financing arrangements | Financing                  
Debt Instrument [Line Items]                  
Debt face amount   $ 144,114 $ 90,564            
Principal balance   136,011 82,143            
Carrying value   $ 135,451 $ 81,351            
Weighted average credit spread   2.00% 2.10%            
Wtd. avg. term   3 years 7 months 6 days 3 years 6 months            
HSBC Facility | Asset-specific financing arrangements | Collateral                  
Debt Instrument [Line Items]                  
Principal balance   $ 188,995 $ 117,343            
Wtd. avg. term   3 years 7 months 6 days 3 years 6 months            
Amortized cost of collateral   $ 187,958 $ 116,694            
BMO Facility | Asset-specific financing arrangements                  
Debt Instrument [Line Items]                  
Maximum commitment amount               $ 200,000  
BMO Facility | Asset-specific financing arrangements | Office Property Mortgage Loan                  
Debt Instrument [Line Items]                  
Number of asset-specific financing arrangements | loan   1 1            
Number of loans | loan   1 1            
BMO Facility | Asset-specific financing arrangements | Financing                  
Debt Instrument [Line Items]                  
Debt face amount   $ 200,000 $ 200,000            
Principal balance   29,110 29,110            
Carrying value   $ 29,046 $ 28,883            
Weighted average credit spread   2.00% 2.00%            
Wtd. avg. term   2 years 8 months 12 days 3 years 8 months 12 days            
BMO Facility | Asset-specific financing arrangements | Collateral                  
Debt Instrument [Line Items]                  
Principal balance   $ 38,468 $ 37,623            
Wtd. avg. term   2 years 8 months 12 days 3 years 8 months 12 days            
Amortized cost of collateral   $ 38,365 $ 37,370            
Institutional Lender 2 | Asset-specific financing arrangements                  
Debt Instrument [Line Items]                  
Maximum commitment amount         $ 397,900        
Institutional Lender 2 | Asset-specific financing arrangements | Office Property Mortgage Loan                  
Debt Instrument [Line Items]                  
Number of asset-specific financing arrangements | loan     1            
Number of loans | loan     2            
Institutional Lender 2 | Asset-specific financing arrangements | Financing                  
Debt Instrument [Line Items]                  
Debt face amount     $ 141,526            
Principal balance     141,526            
Carrying value     $ 141,526            
Weighted average credit spread     3.50%            
Wtd. avg. term     1 year 1 month 6 days            
Institutional Lender 2 | Asset-specific financing arrangements | Collateral                  
Debt Instrument [Line Items]                  
Principal balance     $ 136,057            
Wtd. avg. term     1 year 4 months 24 days            
Amortized cost of collateral     $ 134,319            
Institutional Lender 2 | Asset-specific financing arrangements | Collateralized Mortgage-Backed Securities | Office Property Mortgage Loan                  
Debt Instrument [Line Items]                  
Number of loans | loan     1            
Repayments of first mortgage bond $ 88,000                
Customers Bank | Asset-specific financing arrangements                  
Debt Instrument [Line Items]                  
Maximum commitment amount             $ 23,300    
Customers Bank | Asset-specific financing arrangements | Office Property Mortgage Loan                  
Debt Instrument [Line Items]                  
Number of asset-specific financing arrangements | loan   1 1            
Number of loans | loan   1 1            
Customers Bank | Asset-specific financing arrangements | Financing                  
Debt Instrument [Line Items]                  
Debt face amount   $ 23,250 $ 23,250            
Principal balance   21,379 21,379            
Carrying value   $ 21,244 $ 21,050            
Weighted average credit spread   2.50% 2.50%            
Wtd. avg. term   2 years 8 months 12 days 3 years 8 months 12 days            
Customers Bank | Asset-specific financing arrangements | Collateral                  
Debt Instrument [Line Items]                  
Principal balance   $ 29,417 $ 28,956            
Wtd. avg. term   2 years 8 months 12 days 3 years 8 months 12 days            
Amortized cost of collateral   $ 29,346 $ 28,784            
v3.25.0.1
Investment Portfolio Financing - Financial Covenant Compliance (Details) - Secured credit agreements - Holdco
$ in Millions
12 Months Ended
Dec. 31, 2024
USD ($)
Mar. 31, 2024
Sep. 30, 2023
Sep. 29, 2023
Debt Instrument [Line Items]        
Minimum cash liquidity $ 15.0      
Minimum cash liquidity of recourse indebtedness 0.050      
Tangible net worth $ 1,000.0      
Tangible net worth, amount of equity 0.75      
Amount of redeemed or repurchased equity 0.75      
Debt to equity ratio 4.25      
Interest coverage, minimum 1.4 1.40 1.30 1.40
Interest coverage, maximum 1.5      
v3.25.0.1
Schedule of Maturities (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Debt Instrument [Line Items]  
2025 $ 342,520
2026 891,359
2027 689,659
2028 482,955
2029 165,162
Thereafter 0
Total 2,571,655
Collateralized loan obligations  
Debt Instrument [Line Items]  
2025 193,369
2026 855,494
2027 377,252
2028 162,711
2029 93,462
Thereafter 0
Total 1,682,288
Secured credit agreements  
Debt Instrument [Line Items]  
2025 62,526
2026 35,865
2027 225,530
2028 261,121
2029 0
Thereafter 0
Total 585,042
Secured revolving credit facility  
Debt Instrument [Line Items]  
2025 86,625
2026 0
2027 0
2028 0
2029 0
Thereafter 0
Total 86,625
Asset-specific financing arrangements  
Debt Instrument [Line Items]  
2025 0
2026 0
2027 86,877
2028 27,923
2029 71,700
Thereafter 0
Total 186,500
Mortgage loan payable  
Debt Instrument [Line Items]  
2025 0
2026 0
2027 0
2028 31,200
2029 0
Thereafter 0
Total $ 31,200
v3.25.0.1
Fair Value Measurements - Additional Information (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Fair Value Disclosures [Abstract]    
Money market funds $ 124.7 $ 172.7
Threshold period of delinquency 90 days 90 days
Estimated fair value of loans held for investment $ 3,300.0 $ 3,400.0
Weighted average gross spread percentage 3.68% 3.73%
Weighted average maturity period 2 years 4 months 24 days 2 years 7 months 6 days
v3.25.0.1
Fair Value Measurements - Summary of Fair Value of Financial Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Financial assets    
Total unpaid principal balance $ 3,284,510 $ 3,484,052
Financial liabilities    
Principal balance 2,571,655 3,048,448
Estimate of Fair Value Measurement | Fair Value Measurements Nonrecurring | Collateralized loan obligations    
Financial liabilities    
Principal balance 1,682,288 1,919,790
Fair value of financial liabilities 1,681,660 1,915,174
Estimate of Fair Value Measurement | Fair Value Measurements Nonrecurring | Secured credit agreements    
Financial liabilities    
Principal balance 585,042 799,518
Fair value of financial liabilities 584,235 798,060
Estimate of Fair Value Measurement | Fair Value Measurements Nonrecurring | Asset-specific financing arrangements    
Financial liabilities    
Principal balance 186,500 274,158
Fair value of financial liabilities 185,741 272,810
Estimate of Fair Value Measurement | Fair Value Measurements Nonrecurring | Secured revolving credit facility    
Financial liabilities    
Principal balance 86,625 23,782
Fair value of financial liabilities 86,492 22,764
Estimate of Fair Value Measurement | Fair Value Measurements Nonrecurring | Mortgage loan payable    
Financial liabilities    
Principal balance 31,200 31,200
Fair value of financial liabilities 30,695 30,551
Estimate of Fair Value Measurement | Fair Value Measurements Nonrecurring | Level I | Collateralized loan obligations    
Financial liabilities    
Fair value of financial liabilities 0 0
Estimate of Fair Value Measurement | Fair Value Measurements Nonrecurring | Level I | Secured credit agreements    
Financial liabilities    
Fair value of financial liabilities 0 0
Estimate of Fair Value Measurement | Fair Value Measurements Nonrecurring | Level I | Asset-specific financing arrangements    
Financial liabilities    
Fair value of financial liabilities 0 0
Estimate of Fair Value Measurement | Fair Value Measurements Nonrecurring | Level I | Secured revolving credit facility    
Financial liabilities    
Fair value of financial liabilities 0 0
Estimate of Fair Value Measurement | Fair Value Measurements Nonrecurring | Level I | Mortgage loan payable    
Financial liabilities    
Fair value of financial liabilities 0 0
Estimate of Fair Value Measurement | Fair Value Measurements Nonrecurring | Level II | Collateralized loan obligations    
Financial liabilities    
Fair value of financial liabilities 0 0
Estimate of Fair Value Measurement | Fair Value Measurements Nonrecurring | Level II | Secured credit agreements    
Financial liabilities    
Fair value of financial liabilities 0 0
Estimate of Fair Value Measurement | Fair Value Measurements Nonrecurring | Level II | Asset-specific financing arrangements    
Financial liabilities    
Fair value of financial liabilities 0 0
Estimate of Fair Value Measurement | Fair Value Measurements Nonrecurring | Level II | Secured revolving credit facility    
Financial liabilities    
Fair value of financial liabilities 0 0
Estimate of Fair Value Measurement | Fair Value Measurements Nonrecurring | Level II | Mortgage loan payable    
Financial liabilities    
Fair value of financial liabilities 0 0
Estimate of Fair Value Measurement | Fair Value Measurements Nonrecurring | Level III | Collateralized loan obligations    
Financial liabilities    
Fair value of financial liabilities 1,661,615 1,893,803
Estimate of Fair Value Measurement | Fair Value Measurements Nonrecurring | Level III | Secured credit agreements    
Financial liabilities    
Fair value of financial liabilities 580,921 791,495
Estimate of Fair Value Measurement | Fair Value Measurements Nonrecurring | Level III | Asset-specific financing arrangements    
Financial liabilities    
Fair value of financial liabilities 186,006 273,218
Estimate of Fair Value Measurement | Fair Value Measurements Nonrecurring | Level III | Secured revolving credit facility    
Financial liabilities    
Fair value of financial liabilities 86,625 23,323
Estimate of Fair Value Measurement | Fair Value Measurements Nonrecurring | Level III | Mortgage loan payable    
Financial liabilities    
Fair value of financial liabilities 31,200 31,200
Estimate of Fair Value Measurement | Fair Value Measurements Nonrecurring | Loans held for investment    
Financial assets    
Total unpaid principal balance 3,284,510 3,484,052
Fair value of financial assets 3,217,030 3,409,684
Estimate of Fair Value Measurement | Fair Value Measurements Nonrecurring | Loans held for investment | Level I    
Financial assets    
Fair value of financial assets 0 0
Estimate of Fair Value Measurement | Fair Value Measurements Nonrecurring | Loans held for investment | Level II    
Financial assets    
Fair value of financial assets 0 0
Estimate of Fair Value Measurement | Fair Value Measurements Nonrecurring | Loans held for investment | Level III    
Financial assets    
Fair value of financial assets $ 3,258,017 $ 3,446,648
v3.25.0.1
Income Taxes - Narrative (Details) - USD ($)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Tax [Line Items]        
Excise tax percentage 100.00%      
Reserve for uncertain income tax positions $ 0 $ 0    
Penalties for underpayment of income taxes 0 0    
Interest for underpayment of income taxes 0 0    
Current portion of income tax expense 400,000 300,000 $ 500,000  
Capital loss carryforward     $ 13,300,000  
Capital Loss Carryforward        
Income Tax [Line Items]        
Capital loss carryforward 194,100,000      
Capital Loss Carryforward, Expiring 2025        
Income Tax [Line Items]        
Capital loss carryforward 174,300,000      
Capital Loss Carryforward, Expiring 2028        
Income Tax [Line Items]        
Capital loss carryforward 19,800,000      
CRE Debt Securities        
Income Tax [Line Items]        
Remaining capital loss carryforwards       $ 187,600,000
Capital loss   19,800,000    
TRSs        
Income Tax [Line Items]        
Deferred tax assets 0 0    
Deferred tax liabilities, net $ 0 $ 20,000.00    
REIT Subsidiaries        
Income Tax [Line Items]        
Equity interest percentage by parent 100.00%      
Sub-REIT        
Income Tax [Line Items]        
Equity interest percentage by parent 100.00%      
U.S. federal corporate tax rate (in percent) 21.00%      
v3.25.0.1
Income Taxes - Dividends Declared (Details) - $ / shares
3 Months Ended 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax [Line Items]          
Dividends declared (in USD per share) $ 0.24 $ 0.24 $ 0.96 $ 0.96 $ 0.96
O 2024 A Dividends, Including Capital Dividends          
Income Tax [Line Items]          
Dividends declared (in USD per share)     0.96    
O 2024 A Dividends          
Income Tax [Line Items]          
Dividends declared (in USD per share)     0.80    
O 2024 A Capital Dividends          
Income Tax [Line Items]          
Dividends declared (in USD per share)     $ 0.16    
O 2023 A Dividends, Including Capital Dividends          
Income Tax [Line Items]          
Dividends declared (in USD per share)       0.73  
O 2023 A Dividends          
Income Tax [Line Items]          
Dividends declared (in USD per share)       0.12  
O 2023 A Capital Dividends          
Income Tax [Line Items]          
Dividends declared (in USD per share)       $ 0.61  
O 2022 A Dividends, Including Capital Dividends          
Income Tax [Line Items]          
Dividends declared (in USD per share)         0.95
O 2022 A Dividends          
Income Tax [Line Items]          
Dividends declared (in USD per share)         0.95
O 2022 A Capital Dividends          
Income Tax [Line Items]          
Dividends declared (in USD per share)         $ 0
v3.25.0.1
Related Party Transactions - Additional Information (Details)
12 Months Ended
Dec. 31, 2024
USD ($)
calendarQuarter
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Related Party Transaction [Line Items]      
Payable to affiliates [1] $ 5,111,000 $ 4,913,000  
Related Party      
Related Party Transaction [Line Items]      
Incentive management fee percentage of core earnings less seven percent of stockholders equity 20.00%    
Management fees      
Related Party Transaction [Line Items]      
Incentive management fee $ 0 0 $ 5,200,000
Management fees | Related Party      
Related Party Transaction [Line Items]      
Percentage of annual base management fee 1.50%    
Percentage of quarterly base management fee 0.375%    
Percentage multiplied by stockholders equity included in incentive management fee 7.00%    
Management fees | Affiliated Entity      
Related Party Transaction [Line Items]      
Payable to affiliates $ 5,100,000 4,900,000  
Management Agreement, Incentive Compensation From Earnings      
Related Party Transaction [Line Items]      
Related party transaction, period 12 months    
Related party transaction, calendar quarters (in calendar quarters) | calendarQuarter 12    
Management Agreement, Incentive Compensation From Equity      
Related Party Transaction [Line Items]      
Related party transaction, period 12 months    
Management Agreement, Incentive Compensation      
Related Party Transaction [Line Items]      
Related party transaction, period 12 months    
Related party transaction, calendar quarters (in calendar quarters) | calendarQuarter 3    
Management Agreement, Termination Fee      
Related Party Transaction [Line Items]      
Related party transaction, multiplier 3    
Management Agreement, Average Annual Incentive Compensation      
Related Party Transaction [Line Items]      
Related party transaction, period 24 months    
Post-IPO Management Agreement | Related Party      
Related Party Transaction [Line Items]      
Amount incurred and reimbursable $ 1,500,000 1,000,000.0 $ 1,000,000.0
Post-IPO Management Agreement | Affiliated Entity      
Related Party Transaction [Line Items]      
Reimbursable expenses remained outstanding 0 $ 0  
Asset Management Services, Charges      
Related Party Transaction [Line Items]      
Incentive management fee 1,400,000    
Minimum | Management fees | Related Party      
Related Party Transaction [Line Items]      
Management fee payable per annum 250,000    
Management fee payable per quarter $ 62,500    
[1] The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2024 include assets and liabilities of variable interest entities (“VIEs”) of $2.1 billion and $1.7 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2023 include assets and liabilities of VIEs of $2.6 billion and $1.9 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details.
v3.25.0.1
Related Party Transactions - Summary of Management Fees and Incentive Management Fees Incurred and Paid Pursuant to Management Agreement (Details) - Related Party - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Related Party Transaction [Line Items]      
Fees Incurred $ 20,249 $ 22,426 $ 28,638
Fees Paid 20,051 23,497 28,263
Management fees      
Related Party Transaction [Line Items]      
Fees Incurred 20,249 22,426 23,455
Fees Paid 20,051 23,497 23,080
Incentive management fee      
Related Party Transaction [Line Items]      
Fees Incurred 0 0 5,183
Fees Paid $ 0 $ 0 $ 5,183
v3.25.0.1
Earnings per Share - Additional Information (Details) - USD ($)
$ in Millions
12 Months Ended
May 08, 2024
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Participating securities' share in earnings   $ 2.1 $ 1.7 $ 1.0
Undistributed net income attributable to common stockholders   $ 2.1 $ 1.7 $ 1.0
Issuance of common stock (in shares) 2,647,059      
Warrants to purchase common stock (in shares)   0    
Antidilutive securities (in shares)   142,388 376,444 605,936
Warrants        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Antidilutive securities (in shares)     188,571 2,881,459
v3.25.0.1
Earnings per Share - Schedule of Calculation of Basic and Diluted Earnings per Common Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Earnings Per Share [Abstract]      
Net income (loss) $ 74,335 $ (116,630) $ (60,066)
Preferred stock dividends (12,592) (12,592) (12,592)
Participating securities' share in earnings (2,077) (1,683) (986)
Net income (loss) attributable to common stockholders $ 59,666 $ (130,905) $ (73,644)
Weighted average common shares outstanding, basic (in shares) 79,801,990 77,575,788 77,296,524
Weighted average common shares outstanding, diluted (in shares) 79,888,044 77,575,788 77,296,524
Earnings per share      
Earnings (loss) per common share, basic (in USD per share) $ 0.75 $ (1.69) $ (0.95)
Earnings (loss) per common share, diluted (in USD per share) $ 0.75 $ (1.69) $ (0.95)
v3.25.0.1
Stockholders' Equity (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 12 Months Ended
May 08, 2024
Jun. 16, 2021
Jun. 14, 2021
May 28, 2020
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Jun. 14, 2026
Apr. 25, 2024
Sep. 30, 2021
Class Of Stock [Line Items]                        
Warrants to purchase common stock (in shares)         0   0          
Issuance of common stock (in shares) 2,647,059                      
Authorized shares for repurchase (in shares)                     $ 25,000  
Retirement of common stock (in shares)             4,603          
Shares acquired, average cost (in USD per share)             $ 7.98          
Stock repurchased value             $ 40          
Remaining authorized, amount         $ 24,960   $ 24,960          
Dividends declared (in USD per share)         $ 0.24 $ 0.24 $ 0.96 $ 0.96 $ 0.96      
Dividends, common stock, cash         $ 20,000 $ 19,200            
Preferred stock, dividends declared (in USD per share)         $ 0.3906 $ 0.3906            
Dividends, preferred stock, cash         $ 3,100 $ 3,100            
Dividends, common stock             $ 78,661 $ 76,018 $ 75,104      
Dividends, preferred stock             12,592 12,592 12,592      
Dividends payable         $ 19,978 [1] $ 19,162 [1] $ 19,978 [1] $ 19,162 [1] $ 18,970      
Warrants                        
Class Of Stock [Line Items]                        
Warrants expiration date       May 28, 2025                
Fair value of warrants       $ 14,400                
Maximum                        
Class Of Stock [Line Items]                        
Taxable income distribution percentage             90.00%          
PE Holder L.L.C                        
Class Of Stock [Line Items]                        
Warrants to purchase common stock       $ 225,000                
PE Holder L.L.C | Maximum                        
Class Of Stock [Line Items]                        
Warrants to purchase common stock (in shares)       12,000,000                
Scenario Forecast                        
Class Of Stock [Line Items]                        
Minimum written notice                   30 days    
Maximum written notice                   60 days    
Maximum redeemable window                   120 days    
Series C Preferred Stock                        
Class Of Stock [Line Items]                        
Proceeds from issuance of preferred stock and preference stock     $ 194,400                  
Issuance of common stock (in shares)     8,050,000                  
Underwriting discount and commissions     $ 6,300                  
Issuance costs     $ 600                  
Liquidation preference (in USD per share)     $ 25.00                  
Dividend percentage     6.25%                  
Liquidation preference (in USD per share annually)     $ 1.5624                  
Liquidation preference (in USD per share quarterly)     $ 0.3906                  
Dividend payable (in USD per share)                       $ 0.4601
Series C Preferred Stock | Scenario Forecast                        
Class Of Stock [Line Items]                        
Redemption price (in USD per share)                   $ 25.00    
Series C Preferred Stock | Scenario Forecast | Change of Control Event                        
Class Of Stock [Line Items]                        
Redemption price (in USD per share)                   $ 25.00    
Series C Preferred Stock | Related Party | TPG Capital BD, LLC                        
Class Of Stock [Line Items]                        
Payments for underwriting expense     $ 700                  
Series B Preferred Stock [Member]                        
Class Of Stock [Line Items]                        
Outstanding shares redeemed (in shares)   9,000,000                    
Stock redeemed or called during period at par value and make whole payment   $ 247,500                    
Series B Preferred Stock [Member] | PE Holder L.L.C                        
Class Of Stock [Line Items]                        
Dividend percentage       11.00%                
Shares issued (in shares)       9,000,000                
Temporary equity, par value (in USD per share)       $ 0.001                
[1] The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2024 include assets and liabilities of variable interest entities (“VIEs”) of $2.1 billion and $1.7 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2023 include assets and liabilities of VIEs of $2.6 billion and $1.9 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details.
v3.25.0.1
Stock-based Compensation - Additional Information (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Accrued of common stock for dividends (in shares) 15,218 16,049  
Stock compensation expense $ 6,387 $ 8,029 $ 5,052
2017 Equity Incentive Plan      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Number of shares authorized under the plan (in shares) 4,600,463    
Share vesting installment period 4 years    
Total unrecognized compensation cost relating to unvested share-based compensation arrangements $ 15,500    
Unrecognized compensation cost, recognition period 1 year 3 months 18 days    
Stock compensation expense $ 6,400 $ 8,000 $ 5,100
v3.25.0.1
Stock-based Compensation - Share-based Compensation Arrangements by Share-based Payment Award (Details) - Common Stock - $ / shares
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Common Stock      
Beginning balance (in shares) 2,099,064 1,683,440 835,929
Granted (in shares) 990,100 950,000 1,141,926
Vested (in shares) (712,041) (527,831) (278,821)
Forfeited (in shares) 0 (6,545) (15,594)
Ending balance (in shares) 2,377,123 2,099,064 1,683,440
Weighted Average Grant Date Fair Value per Share      
Beginning balance (in usd per share) $ 7.91 $ 9.44 $ 13.16
Granted (in usd per share) 8.51 6.66 7.93
Vested (in usd per share) 8.51 10.55 14.25
Forfeited (in usd per share) 0 7.64 12.06
Ending balance (in usd per share) $ 7.98 $ 7.91 $ 9.44
v3.25.0.1
Stock-based Compensation - Schedule of Awarded Shares Vesting Period (Details) - 2017 Equity Incentive Plan - Common Stock
12 Months Ended
Dec. 31, 2024
shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Shares of common stock expected to vest (in shares) 2,377,123
2025  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Shares of common stock expected to vest (in shares) 875,674
2026  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Shares of common stock expected to vest (in shares) 768,892
2027  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Shares of common stock expected to vest (in shares) 485,053
2028  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Shares of common stock expected to vest (in shares) 247,504
v3.25.0.1
Commitments and Contingencies (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]    
Unfunded commitments related to loans held for investment $ 127.9 $ 183.3
Allowance for credit losses on loan commitments $ 2.4 $ 2.7
v3.25.0.1
Concentration of Credit Risk - Summary of Loans Held for Investment Portfolio by Property Type (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Concentration Risk [Line Items]    
Loan commitment $ 3,412,016 $ 3,666,173
Unfunded commitment $ 127,866 $ 183,293
% of loan commitment 100.00% 100.00%
Total unpaid principal balance $ 3,284,510 $ 3,484,052
% of loan UPB 100.00% 100.00%
Multifamily    
Concentration Risk [Line Items]    
Loan commitment $ 1,777,221 $ 1,801,668
Unfunded commitment $ 56,101 $ 67,035
% of loan commitment 52.00% 49.20%
Total unpaid principal balance $ 1,721,480 $ 1,734,633
% of loan UPB 52.40% 49.70%
Office    
Concentration Risk [Line Items]    
Loan commitment $ 606,047 $ 728,447
Unfunded commitment $ 23,788 $ 42,489
% of loan commitment 17.80% 19.90%
Total unpaid principal balance $ 582,259 $ 685,958
% of loan UPB 17.70% 19.80%
Life Science    
Concentration Risk [Line Items]    
Loan commitment $ 368,573 $ 404,600
Unfunded commitment $ 14,019 $ 31,739
% of loan commitment 10.80% 11.00%
Total unpaid principal balance $ 354,554 $ 372,861
% of loan UPB 10.80% 10.70%
Hotel    
Concentration Risk [Line Items]    
Loan commitment $ 348,400 $ 389,643
Unfunded commitment $ 14,110 $ 14,110
% of loan commitment 10.20% 10.60%
Total unpaid principal balance $ 334,290 $ 376,705
% of loan UPB 10.20% 10.80%
Industrial    
Concentration Risk [Line Items]    
Loan commitment $ 166,000 $ 107,000
Unfunded commitment $ 16,400 $ 7,504
% of loan commitment 4.90% 2.90%
Total unpaid principal balance $ 149,600 $ 99,496
% of loan UPB 4.60% 2.90%
Mixed-Use    
Concentration Risk [Line Items]    
Loan commitment $ 78,775 $ 115,215
Unfunded commitment $ 3,448 $ 6,256
% of loan commitment 2.30% 3.10%
Total unpaid principal balance $ 75,327 $ 108,959
% of loan UPB 2.30% 3.10%
Self Storage    
Concentration Risk [Line Items]    
Loan commitment $ 67,000 $ 69,000
Unfunded commitment $ 0 $ 2,000
% of loan commitment 2.00% 1.90%
Total unpaid principal balance $ 67,000 $ 67,000
% of loan UPB 2.00% 1.90%
Other    
Concentration Risk [Line Items]    
Loan commitment   $ 50,600
Unfunded commitment   $ 12,160
% of loan commitment   1.40%
Total unpaid principal balance   $ 38,440
% of loan UPB   1.10%
v3.25.0.1
Concentration of Credit Risk - Additional Information (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Risks and Uncertainties [Abstract]    
Loan commitment capitalized interest $ 0.4 $ 1.2
v3.25.0.1
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, 2024
Dec. 31, 2023
Concentration Risk [Line Items]    
Loan commitment $ 3,412,016 $ 3,666,173
Unfunded commitment $ 127,866 $ 183,293
% of loan commitment 100.00% 100.00%
Total unpaid principal balance $ 3,284,510 $ 3,484,052
% of loan UPB 100.00% 100.00%
West    
Concentration Risk [Line Items]    
Loan commitment $ 1,254,320 $ 1,159,180
Unfunded commitment $ 47,318 $ 62,263
% of loan commitment 36.70% 31.60%
Total unpaid principal balance $ 1,207,362 $ 1,096,917
% of loan UPB 36.80% 31.50%
East    
Concentration Risk [Line Items]    
Loan commitment $ 965,249 $ 1,156,075
Unfunded commitment $ 12,678 $ 31,096
% of loan commitment 28.30% 31.50%
Total unpaid principal balance $ 952,571 $ 1,126,151
% of loan UPB 29.00% 32.30%
South    
Concentration Risk [Line Items]    
Loan commitment $ 817,847 $ 1,061,968
Unfunded commitment $ 49,016 $ 75,430
% of loan commitment 24.00% 29.00%
Total unpaid principal balance $ 768,831 $ 986,538
% of loan UPB 23.40% 28.30%
Various    
Concentration Risk [Line Items]    
Loan commitment $ 309,000 $ 139,000
Unfunded commitment $ 16,800 $ 5,761
% of loan commitment 9.10% 3.80%
Total unpaid principal balance $ 292,200 $ 133,239
% of loan UPB 8.90% 3.80%
Midwest    
Concentration Risk [Line Items]    
Loan commitment $ 65,600 $ 149,950
Unfunded commitment $ 2,054 $ 8,743
% of loan commitment 1.90% 4.10%
Total unpaid principal balance $ 63,546 $ 141,207
% of loan UPB 1.90% 4.10%
v3.25.0.1
Concentration of Credit Risk - Summary of Loans Held for Investment Portfolio by Loan Category Type (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Concentration Risk [Line Items]    
Loan commitment $ 3,412,016 $ 3,666,173
Unfunded commitment $ 127,866 $ 183,293
% of loan commitment 100.00% 100.00%
Total unpaid principal balance $ 3,284,510 $ 3,484,052
% of loan UPB 100.00% 100.00%
Bridge    
Concentration Risk [Line Items]    
Loan commitment $ 1,522,789 $ 1,540,873
Unfunded commitment $ 27,472 $ 32,898
% of loan commitment 44.60% 42.00%
Total unpaid principal balance $ 1,495,677 $ 1,507,975
% of loan UPB 45.50% 43.30%
Moderate Transitional    
Concentration Risk [Line Items]    
Loan commitment $ 1,009,038 $ 1,156,858
Unfunded commitment $ 63,063 $ 99,507
% of loan commitment 29.60% 31.60%
Total unpaid principal balance $ 945,975 $ 1,058,523
% of loan UPB 28.80% 30.40%
Light Transitional    
Concentration Risk [Line Items]    
Loan commitment $ 880,189 $ 917,842
Unfunded commitment $ 37,331 $ 38,728
% of loan commitment 25.80% 25.00%
Total unpaid principal balance $ 842,858 $ 879,114
% of loan UPB 25.70% 25.20%
Construction    
Concentration Risk [Line Items]    
Loan commitment   $ 50,600
Unfunded commitment   $ 12,160
% of loan commitment   1.40%
Total unpaid principal balance   $ 38,440
% of loan UPB   1.10%
v3.25.0.1
Subsequent Events (Details)
$ in Millions
Feb. 13, 2025
USD ($)
lender
Dec. 31, 2024
USD ($)
Dec. 31, 2022
USD ($)
Feb. 22, 2022
USD ($)
Subsequent Event [Line Items]        
Maximum commitment amount     $ 290.0 $ 250.0
Line of Credit | Secured revolving credit facility | Secured Debt        
Subsequent Event [Line Items]        
Maximum commitment amount   $ 290.0    
Subsequent Events | Line of Credit | Secured revolving credit facility | Secured Debt        
Subsequent Event [Line Items]        
Renewal term 3 years      
Recourse percentage 100.00%      
Number of lenders | lender 7      
Maximum commitment amount $ 375.0      
v3.25.0.1
Schedule IV - Mortgage Loans on Real Estate - Mortgage Loans on Real Estate (Details) - USD ($)
$ in Thousands
12 Months Ended
Feb. 22, 2022
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]          
Interest Payment Rates 2.00%        
Carrying Amount of Loans   $ 3,217,030 $ 3,409,684 $ 4,781,402 $ 4,867,203
Financing receivable allowance for credit losses loans held for investment   (61,558)      
Aggregate tax basis   $ 2,800,000      
Senior Loans in excess of 3% of the carrying amount of total loans | Borrower A | San Jose          
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]          
Interest Payment Rates   3.60%      
Extended Maturity Date   2027      
Prior Liens   $ 0      
Unpaid Principal Balance   253,110      
Carrying Amount of Loans   $ 253,110      
Senior Loans in excess of 3% of the carrying amount of total loans | Borrower B | NEW YORK          
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]          
Interest Payment Rates   3.00%      
Extended Maturity Date   2026      
Prior Liens   $ 0      
Unpaid Principal Balance   227,107      
Carrying Amount of Loans   $ 227,107      
Senior Loans in excess of 3% of the carrying amount of total loans | Borrower C | Daly City          
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]          
Interest Payment Rates   4.00%      
Extended Maturity Date   2026      
Prior Liens   $ 0      
Unpaid Principal Balance   205,557      
Carrying Amount of Loans   $ 205,491      
Senior Loans in excess of 3% of the carrying amount of total loans | Borrower D | Various          
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]          
Interest Payment Rates   3.50%      
Extended Maturity Date   2026      
Prior Liens   $ 0      
Unpaid Principal Balance   106,017      
Carrying Amount of Loans   $ 106,017      
Senior Loans in excess of 3% of the carrying amount of total loans | Borrower E | NEW YORK          
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]          
Interest Payment Rates   4.10%      
Extended Maturity Date   2025      
Prior Liens   $ 0      
Unpaid Principal Balance   150,500      
Carrying Amount of Loans   $ 150,500      
Senior Loans in excess of 3% of the carrying amount of total loans | Borrower F | Towson          
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]          
Interest Payment Rates   3.50%      
Extended Maturity Date   2026      
Prior Liens   $ 0      
Unpaid Principal Balance   113,025      
Carrying Amount of Loans   $ 113,025      
Senior Loans in excess of 3% of the carrying amount of total loans | Borrower G | Hayward          
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]          
Interest Payment Rates   3.20%      
Extended Maturity Date   2026      
Prior Liens   $ 0      
Unpaid Principal Balance   102,573      
Carrying Amount of Loans   $ 102,573      
Senior Loans in excess of 3% of the carrying amount of total loans | Borrower H | Various          
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]          
Interest Payment Rates   3.30%      
Extended Maturity Date   2029      
Prior Liens   $ 0      
Unpaid Principal Balance   109,700      
Carrying Amount of Loans   $ 108,943      
Senior Loans in excess of 3% of the carrying amount of total loans | Borrower I | Various          
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]          
Interest Payment Rates   3.40%      
Extended Maturity Date   2030      
Prior Liens   $ 0      
Unpaid Principal Balance   115,500      
Carrying Amount of Loans   114,211      
Senior Loans less than 3% of the carrying amount of total loans          
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]          
Prior Liens   0      
Unpaid Principal Balance   3,284,510      
Carrying Amount of Loans   3,278,588      
Senior Loans less than 3% of the carrying amount of total loans | Multifamily          
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]          
Prior Liens   0      
Unpaid Principal Balance   1,139,628      
Carrying Amount of Loans   1,137,291      
Senior Loans less than 3% of the carrying amount of total loans | Office Building          
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]          
Prior Liens   0      
Unpaid Principal Balance   204,651      
Carrying Amount of Loans   204,390      
Senior Loans less than 3% of the carrying amount of total loans | Hotel          
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]          
Prior Liens   0      
Unpaid Principal Balance   334,290      
Carrying Amount of Loans   333,443      
Senior Loans less than 3% of the carrying amount of total loans | Mixed-Use          
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]          
Prior Liens   0      
Unpaid Principal Balance   75,327      
Carrying Amount of Loans   75,327      
Senior Loans less than 3% of the carrying amount of total loans | Life Science          
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]          
Prior Liens   0      
Unpaid Principal Balance   46,425      
Carrying Amount of Loans   46,337      
Senior Loans less than 3% of the carrying amount of total loans | Industrial          
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]          
Prior Liens   0      
Unpaid Principal Balance   34,100      
Carrying Amount of Loans   33,892      
Senior Loans less than 3% of the carrying amount of total loans | Self Storage          
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]          
Prior Liens   0      
Unpaid Principal Balance   67,000      
Carrying Amount of Loans   $ 66,931      
Senior Loans less than 3% of the carrying amount of total loans | Minimum | Multifamily          
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]          
Interest Payment Rates   2.90%      
Extended Maturity Date   2026      
Senior Loans less than 3% of the carrying amount of total loans | Minimum | Office Building          
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]          
Interest Payment Rates   3.50%      
Extended Maturity Date   2025      
Senior Loans less than 3% of the carrying amount of total loans | Minimum | Hotel          
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]          
Interest Payment Rates   3.50%      
Extended Maturity Date   2025      
Senior Loans less than 3% of the carrying amount of total loans | Minimum | Mixed-Use          
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]          
Interest Payment Rates   4.10%      
Extended Maturity Date   2025      
Senior Loans less than 3% of the carrying amount of total loans | Minimum | Life Science          
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]          
Interest Payment Rates   4.20%      
Extended Maturity Date   2026      
Senior Loans less than 3% of the carrying amount of total loans | Minimum | Industrial          
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]          
Interest Payment Rates   3.50%      
Extended Maturity Date   2028      
Senior Loans less than 3% of the carrying amount of total loans | Minimum | Self Storage          
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]          
Interest Payment Rates   4.20%      
Extended Maturity Date   2027      
Senior Loans less than 3% of the carrying amount of total loans | Maximum | Multifamily          
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]          
Interest Payment Rates   4.00%      
Extended Maturity Date   2029      
Senior Loans less than 3% of the carrying amount of total loans | Maximum | Office Building          
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]          
Interest Payment Rates   5.30%      
Extended Maturity Date   2027      
Senior Loans less than 3% of the carrying amount of total loans | Maximum | Hotel          
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]          
Interest Payment Rates   5.10%      
Extended Maturity Date   2029      
v3.25.0.1
Schedule IV - Mortgage Loans on Real Estate - Reconciliation of Mortgage Loans on Real Estate (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward]      
Beginning balance $ 3,409,684 $ 4,781,402 $ 4,867,203
Loans originated and acquired 527,276 194,706 1,519,406
Additional fundings 40,697 140,547 145,199
Accrued PIK interest 360 0 0
Amortization of origination fees and discounts 6,075 11,955 11,085
Collection of principal (672,196) (890,566) (1,506,870)
Collection of accrued PIK interest (1,172) (542) (1,314)
Collection of interest applied to reduce principal under the cost-recovery method 0 (15,894) 0
Realized loss on loan write-offs, loan sales, and REO conversions (9,729) (334,727) (4,400)
Loan sales 0 (343,637) 0
Loan extinguishment on conversion to REO (89,499) (263,740) (89,234)
Decrease (increase) of allowance for credit losses 5,534 130,180 (159,673)
Ending balance $ 3,217,030 $ 3,409,684 $ 4,781,402