^[1]

$ 103,622

$ 79,182

Restricted Cash

^[1]

910

484

Accounts Receivable

^[1]

6

2,344

Accrued Interest and Fees Receivable

^[1]

35,448

13,741

^[1]

28,213

28,107

^[1]

5,096,353

4,980,389

Loans Held for Investment, net (includes $2,687,849 and $2,585,030, respectively, pledged as collateral under secured revolving repurchase and secured credit agreements)

^[1]

(75,658)

^[1]

5,020,695

4,980,389

Investment in Available-for-Sale CRE Debt Securities, net (includes $603,605 and $786,408, respectively, pledged as collateral under secured revolving repurchase agreements)

^[1]

604,801

787,552

Other Assets, Net

^[1]

32,606

1,071

Total Assets

^[1]

5,826,301

5,892,870

Liabilities

^[1]

5,173

6,665

Secured Revolving Repurchase, Senior Secured, and Secured Credit Agreements (net of deferred financing costs of $9,545 and $11,632, respectively)

^[1]

17,834

8,176

^[1]

2,641,548

2,448,422

Collateralized Loan Obligations (net of deferred financing costs of $12,469 and $13,632, respectively)

^[1]

1,812,052

1,806,428

Asset-Specific Financings (net of deferred financing costs of $200 and $294, respectively)

^[1]

76,800

76,706

Commitments and Contingencies—See Note 14

^[1]

7,970

9,520

Deferred Revenue

^[1]

289

164

Dividends Payable

^[1]

33,222

32,835

Total Liabilities

^[1]

4,594,888

4,388,916

^[1]

Stockholders’ Equity:

Preferred Stock ($0.001 par value per share; 100,000,000 shares authorized; 125 and 125 shares issued and outstanding, respectively)

^[1]

Additional Paid-in-Capital

^[1]

1,545,024

1,530,935

Accumulated Other Comprehensive Income

^[1]

(313,765)

(28,108)

^[1]

77

1,051

Total Stockholders' Equity

^[1]

1,231,413

1,503,954

Total Liabilities and Stockholders' Equity

^[1]

5,826,301

5,892,870

Common Stock, Undefined Class

Stockholders’ Equity:

Common Stock Value

^[1]

$ 77

75

Total Stockholders' Equity

Stockholders’ Equity:

Common Stock Value

^[1]

1

$ 1

[1]

The Company’s consolidated Total Assets and Total Liabilities at March 31, 2020 include assets and liabilities of variable interest entities (“VIEs”) of $2.3 billion and $1.8 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities at December 31, 2019 include assets and liabilities of VIEs of $2.2 billion and $1.8 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

Consolidated Balance Sheets (Parenthetical) (unaudited) - USD ($)
$ in Thousands

Mar. 31, 2020

Dec. 31, 2019

Preferred stock, par value

$ 0.001

Preferred stock, authorized shares

100,000,000

Preferred stock, shares issued

125

Preferred stock, shares outstanding

125

Common stock, par value

$ 0.001

Common stock, authorized shares

302,500,000

300,000,000

Common stock, shares issued

76,650,996

74,886,113

Variable Interest Entity, Primary Beneficiary

76,650,996

74,886,113

Total assets

^[1]

$ 5,826,301

$ 5,892,870

Total liabilities

^[1]

4,594,888

4,388,916

Total assets

2,252,083

2,249,751

Total liabilities

$ 1,829,244

$ 1,828,992

Common stock, authorized shares

Common stock, par value

$ 0.001

0

2,500,000

Common stock, shares issued

0

1,136,665

Loans pledged as collateral

0

1,136,665

Repurchase Agreements

$ 2,687,849

$ 2,585,030

Available-for-sale CRE debt securities pledged as collateral

603,605

786,408

Deferred financing costs

9,545

11,632

Term Loan Facility

Deferred financing costs

200

294

Collateralized Loan Obligation

Loans pledged as collateral

2,230,345

2,229,034

Deferred financing costs

$ 12,469

$ 13,632

[1]

The Company’s consolidated Total Assets and Total Liabilities at March 31, 2020 include assets and liabilities of variable interest entities (“VIEs”) of $2.3 billion and $1.8 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities at December 31, 2019 include assets and liabilities of VIEs of $2.2 billion and $1.8 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

Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
INTEREST INCOME
Interest Income	$ 81,749	$ 76,601
Interest Expense	(38,457)	(39,367)
Net Interest Income	43,292	37,234
OTHER REVENUE
Other Income, net	328	422
Total Other Revenue	328	422
OTHER EXPENSES
Professional Fees	1,819	679
General and Administrative	980	692
Stock Compensation Expense	1,401	633
Servicing and Asset Management Fees	276	513
Management Fee	5,000	5,143
Incentive Management Fee		1,365
Total Other Expenses	9,476	9,025
Securities Impairments	(203,493)
Credit Loss Expense	(63,348)
Income (Loss) Before Income Taxes	(232,697)	28,631
Income Tax Expense, net	(93)	(219)
Net Income (Loss)	(232,790)	28,412
Preferred Stock Dividends	(3)	(3)
Net Income (Loss) Attributable to TPG RE Finance Trust, Inc.	$ (232,793)	$ 28,409
Basic Earnings (Loss) per Common Share	$ (3.05)	$ 0.42
Diluted Earnings (Loss) per Common Share	$ (3.05)	$ 0.42
Weighted Average Number of Common Shares Outstanding
Basic:	76,465,322	68,294,736
Diluted:	76,465,322	68,294,736
OTHER COMPREHENSIVE INCOME (LOSS)
Net Income (Loss)	$ (232,790)	$ 28,412
Unrealized Gain (Loss) on Available-for-Sale Debt Securities	(974)	106
Comprehensive Net Income (Loss)	$ (233,764)	$ 28,518

Consolidated Statement of Changes in Equity (Unaudited) - USD ($)
$ in Thousands

Total

Class A Common Stock

Preferred Stock

Common Stock

Additional Paid-in-Capital

Accumulated Deficit

Accumulated Other Comprehensive Income (Loss)

Balance at Dec. 31, 2018

$ 1,327,170

$ 1

$ 67

$ 1,355,002

$ (25,915)

$ (1,985)

Balance, Shares at Dec. 31, 2018

1,143,313

66,020,387

Issuance of Common Stock

119,100

$ 6

119,094

Issuance of Common Stock, Shares

6,000,000

Repurchases of Common Stock

(42)

Repurchases of Common Stock, Shares

(2,324)

Issuance of Series A Preferred Stock

125

Issuance of Series A Preferred Stock, Shares

125

Equity Issuance, Shelf Registration, and Equity Distribution Agreement Transaction Costs

(300)

Amortization of Share Based Compensation

633

Net Income (Loss)

28,412

Other Comprehensive Income (Loss)

106

Dividends on Preferred Stock

(3)

Dividends on Common Stock (Dividends Declared per Share)

(31,160)

Dividends on Class A Common Stock (Dividends Declared per Share)

(492)

Balance at Mar. 31, 2019

1,443,549

$ 1

$ 73

1,474,554

(29,200)

(1,879)

Balance, Shares at Mar. 31, 2019

1,143,313

125

72,018,063

Balance at Dec. 31, 2019

1,503,954

^[1]

$ 1

$ 75

1,530,935

(28,108)

1,051

Balance, Shares at Dec. 31, 2019

1,136,665

125

74,886,113

Issuance of Common Stock

12,895

$ 1

12,894

Issuance of Common Stock, Shares

628,218

Conversions of Class A Common Stock to Common Stock

$ (1)

$ 1

Conversions of Class A Common Stock to Common Stock, Shares

(1,136,665)

1,136,665

Equity Issuance, Shelf Registration, and Equity Distribution Agreement Transaction Costs

(206)

Amortization of Share Based Compensation

1,401

Cumulative Effect of Adoption of ASU 2016-13 (See Note 2)

(19,645)

Net Income (Loss)

(232,790)

Other Comprehensive Income (Loss)

(974)

Dividends on Preferred Stock

(3)

Dividends on Common Stock (Dividends Declared per Share)

(33,219)

Balance at Mar. 31, 2020

$ 1,231,413

^[1]

$ 77

$ 1,545,024

$ (313,765)

$ 77

Balance, Shares at Mar. 31, 2020

125

76,650,996

[1]

The Company’s consolidated Total Assets and Total Liabilities at March 31, 2020 include assets and liabilities of variable interest entities (“VIEs”) of $2.3 billion and $1.8 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities at December 31, 2019 include assets and liabilities of VIEs of $2.2 billion and $1.8 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

Consolidated Statement of Changes in Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Common stock dividends declared per share	$ 0.43	$ 0.43
Class A Common Stock
Common stock dividends declared per share		$ 0.43

Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2020

Mar. 31, 2019

Cash Flows from Operating Activities:

Net Income (Loss)

$ (232,790)

$ 28,412

Adjustment to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities:

Amortization and Accretion of Premiums, Discounts and Loan Origination Fees, net

(3,194)

(3,627)

Amortization of Deferred Financing Costs

3,340

4,698

Securities Impairments

203,493

Stock Compensation Expense

1,401

633

Allowance for Credit Loss Expense

63,348

Cash Flows Due to Changes in Operating Assets and Liabilities:

Accounts Receivable

2,338

25

Accrued Interest Receivable

102

(3,143)

2,748

(3,616)

(1,533)

1,818

Net Cash Provided by Operating Activities

(1,550)

490

Deferred Fee Income

125

151

Other Assets

(302)

192

37,526

26,033

Cash Flows from Investing Activities:

Origination of Loans Held for Investment

(351,650)

(628,460)

Advances on Loans Held for Investment

(61,720)

(57,394)

Principal Repayments of Loans Held for Investment

312,687

359,065

Purchase of Available-for-Sale CRE Debt Securities

(168,888)

(263,868)

Sales and Principal Repayments of Available-for-Sale CRE Debt Securities

86,439

586

Net Cash Used in Investing Activities

(183,132)

(590,071)

Payments on Collateralized Loan Obligations

(233,557)

Payment of Deferred Financing Costs

(421)

(1,176)

Payments to Repurchase Common Stock

(42)

Proceeds from Issuance of Preferred Stock

125

Payment of Equity Issuance and Equity Distribution Agreement Transaction Costs

12,895

119,100

(206)

Net Cash Provided by Financing Activities

170,472

579,149

Net Change in Cash, Cash Equivalents, and Restricted Cash

24,866

15,111

Cash, Cash Equivalents and Restricted Cash at Beginning of Period

79,666

40,720

Cash, Cash Equivalents and Restricted Cash at End of Period

104,532

55,831

Supplemental Disclosure of Cash Flow Information:

Interest Paid

36,090

34,567

Taxes Paid

4

10

Supplemental Disclosure of Non-Cash Investing and Financing Activities:

Principal Repayments of Loans Held for Investment Held by Servicer/Trustee, net

881

6,562

Sales and Principal Repayments of Available-for-Sale CRE Debt Securities Held by Servicer/Trustee, net

33,983

47

Dividends Payable

33,222

^[1]

31,598

Accrued Equity Issuance and Transaction Costs

300

Change in Accrued Deferred Financing Costs

484

532

Unrealized Gain (Loss) on Available-for-Sale CRE Debt Securities

(974)

106

Loans Investment

Payments on Secured Financing Agreements - Loan Investments

(337,306)

(264,615)

Proceeds from Secured Financing Agreements - Loan Investments

612,861

760,878

Payments on Secured Financing Agreements - Loan Investments

(216,638)

(387)

Proceeds from Secured Financing Agreements - Loan Investments

132,122

227,861

Common Stock, Undefined Class

Dividends paid

(32,551)

(28,546)

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Dividends paid

$ (284)

$ (492)

[1]

The Company’s consolidated Total Assets and Total Liabilities at March 31, 2020 include assets and liabilities of variable interest entities (“VIEs”) of $2.3 billion and $1.8 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities at December 31, 2019 include assets and liabilities of VIEs of $2.2 billion and $1.8 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

Business and Organization

3 Months Ended

Mar. 31, 2020

Business and Organization

(1) Business and Organization

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

The Company’s principal business activity is to directly originate and acquire a diversified portfolio of commercial real estate related assets, 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. The Company also invests in commercial real estate debt securities (“CRE debt securities”) including commercial mortgage-backed securities (“CMBS”) and commercial real estate collateralized loan obligation securities (“CRE CLOs”).

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

(2) Summary of Significant Accounting Policies

Basis of Presentation

The interim consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The interim 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.

Risks and Uncertainties

The recent outbreak of the coronavirus pandemic (“COVID-19”) around the globe continues to adversely impact global commercial activity and has contributed to significant volatility in financial markets. The impact of the outbreak has been rapidly evolving around the globe, with several countries taking drastic measures to limit the spread of the virus by instituting quarantines or lockdowns and imposing travel restrictions. Such actions are creating significant disruptions to global supply chains, and adversely impacting several industries, including but not limited to, airlines, hospitality, retail and the broader real estate industry.

The major disruption caused by COVID-19 brought to a halt most economic activity in most of the United States resulting in a significant increase in unemployment claims and will likely result in a significant decline in the U.S. Gross Domestic Product.

COVID-19 could have a continued and prolonged adverse impact on economic and market conditions and trigger a period of global economic slowdown which has and could continue to have a material adverse effect on the Company’s results and financial condition.

The full impact of COVID-19 on the real estate industry, the credit markets and consequently on the Company’s financial condition and results of operations is uncertain and cannot be predicted at the current time as it depends on several factors beyond the control of the Company including, but not limited to (i) the uncertainty around the severity and duration of the outbreak, (ii) the effectiveness of the United States public health response, (iii) the pandemic’s impact on the U.S. and global economies, (iv) the timing, scope and effectiveness of additional governmental responses to the pandemic, (v) the timing and speed of economic recovery, including the availability of a treatment or vaccination for COVID-19 and (vi) the negative impact on the Company’s borrowers, real estate values and cost of capital.

Reclassifications

Certain amounts in the Company’s prior period consolidated financial statements have been reclassified to conform to the presentation of the Company’s current period consolidated financial statements. These reclassifications had no effect on the Company’s previously reported net income. These reclassifications include the separate presentation of stock compensation on the consolidated statements of income and comprehensive income, and the disaggregation of proceeds and payments from secured financing agreements secured by loans and secured financing agreements secured by CRE debt securities on the consolidated statements of cash flows.

Use of Estimates

The preparation of the interim 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 interim consolidated financial statements. Actual results could differ from management’s estimates, and such differences could be material. Significant estimates made in the interim consolidated financial statements include, but are not limited to: impairment; adequacy of provisions for credit losses; and valuation of financial instruments. Actual amounts and values as of the balance sheet dates may be materially different than the amounts and values reported due to the inherent uncertainty in the estimation process and the limited availability of observable pricing inputs due to market dislocation resulting from the COVID-19 pandemic. 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.

Principles of Consolidation

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

At each reporting date, the Company reconsiders its primary beneficiary conclusion to determine if its obligation to absorb losses of, or its rights to receive benefits from, the VIE could potentially be more than insignificant, and will consolidate or not consolidate accordingly (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 credit impairment, if any. The objective of the interest method is to arrive at periodic interest income including recognition of fees and costs at a constant effective yield. Premiums, discounts, 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 income on a straight-line basis, when it approximates the interest method, over the related extension or modification period. Exit fees are accreted into 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. Prepayment penalties from borrowers are recognized as interest income when received. Certain of the Company’s loan investments have in the past, and will likely in the future, provide for additional interest based on the borrower’s operating cash flow or appreciation of the underlying collateral. Such amounts are considered contingent interest and are reflected as interest income only upon certainty of collection. Certain of the Company’s loan investments have in the past, and will likely 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 a collection reserve is recorded or the PIK interest is written off.

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 any cumulative charge-offs, interest applied to principal (for loans accounted for using the cost recovery method), unamortized premiums, discounts, unamortized net 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. Accrued but not yet collected interest is separately reported as accrued interest receivable on the Company’s consolidated balance sheets.

When loans are designated as held for investment, the Company’s intent is to hold the loans for the foreseeable future or until maturity or repayment. If subsequent changes in real estate or capital markets occur, the Company may change its intent or its assessment of its ability to hold these loans. Once a determination has been made to sell such loans, they are immediately transferred to loans held for sale and carried at the lower of cost or fair value.

Non-Accrual Loans

Loans are placed on non-accrual status when the full and timely collection of principal and interest is doubtful, generally when the loan becomes 90 days or more past due for principal and interest. The Company considers an account past due when an obligor fails to pay substantially all (defined as 90%) of the scheduled payment by the due date. In each case, the period of delinquency is based on the number of days payments are contractually past due. 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. Payments received on non-accrual loans are accounted for using either the cash method, or the cost recovery method which applies any cash collected to first reduce the principal balance. 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 Company’s external manager, TPG RE Finance Trust Management, L.P., a Delaware limited partnership (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.

Troubled Debt Restructurings

A loan is accounted for and reported as a troubled debt restructuring (“TDR”) when, for economic or legal reasons, the Company grants a concession to a borrower experiencing financial difficulty that we would not otherwise consider. The Company does not consider as a concession a restructuring that includes an insignificant delay in payment. A delay may be considered insignificant if the payments subject to the delay are insignificant relative to the unpaid principal balance of the loan or collateral value, and the contractual amount due, or the delay in timing of the restructured payment period, is insignificant relative to the frequency of payments, the debt’s original contractual maturity or original expected duration.

TDRs that are performing and on accrual status as of the date of the modification remain on accrual status. TDRs that are nonperforming as of the date of modification usually remain on non-accrual status until the prospect of future payments in accordance with the modified loan agreement is reasonably assured, which is generally demonstrated when the borrower maintains compliance with the restructured terms for a predetermined period, normally at least six months. TDRs with temporary below-market concessions remain designated as a TDR regardless of the accrual or performance status until the loan is paid off. However, if the TDR loan has been modified in a subsequent restructure with market terms and the borrower is not currently experiencing financial difficulty, then the loan may be de-designated as a TDR.

Allowance for Credit Losses for Loans Held for Investment

The allowance for credit losses is measured under the Current Expected Credit Loss (“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 inherent in 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, which is reported in earnings in the consolidated statements of income and comprehensive income and reduced by the charge-off of loan amounts, net of recoveries and additions related to purchased credit-deteriorated (“PCD”) assets, if relevant. The allowance for credit losses includes a modeled component and an individually-assessed component. 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 uncollectable 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 sector 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 and 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 sensitive to interest rate changes, general economic conditions, liquidity, LTV ratio, and availability of replacement short-term or long-term financing. The loans in the Company’s commercial mortgage loan portfolio are secured by collateral in the following property types: office; multifamily; hotel; mixed-use; condominium; retail; and land.

Quarterly, the Company evaluates the risk of all loans and assigns a risk rating based on a variety of factors, grouped as follows: (i) loan and credit structure, including the as-is LTV and structural features; (ii) quality and stability of real estate value and operating cash flow, including debt yield, property type, dynamics of the geography, property type and local market, physical condition, stability of cash flow, leasing velocity and quality and diversity of tenancy; (iii) performance against underwritten business plan; and (iv) quality, experience and financial condition of sponsor, borrower and guarantor(s). Based on a 5-point scale, the Company’s loans are rated “1” through “5,” from least risk to greatest risk, respectively, which ratings are defined as follows:

1-

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

2-

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

3-

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

4-

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

5-

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

The Company generally assigns a risk rating of “3” to all newly originated loan investments during a most recent quarter, except in the case of specific circumstances warranting an exception.

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 an entity that owns real estate. As a result, the Company regularly evaluates on a loan-by-loan basis the extent and impact of any credit deterioration associated with the performance and/or value of the underlying collateral property, and the financial and operating capability of the borrower and its sponsor. The Company also evaluates the financial strength of loan guarantors, if any, and the borrower’s competency in managing and operating the property or properties. In addition, the Company considers the overall economic environment, real estate sector, and geographic sub-market in which the borrower operates. Such 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 credit spreads for refinancing and (v) other market data.

Due to the COVID-19 pandemic and the dislocation it has caused to the national economy, the commercial real estate markets, and the capital markets, the Company’s ability to estimate key inputs for estimating the allowance for credit losses has been materially and adversely impacted. Key inputs to the estimate include, but are not limited to, LTV, debt service coverage ratio, 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 observable transactions involving the sale or financing of commercial properties. Estimates made by management are necessarily subject to change due to the lack of observable inputs and uncertainty regarding the duration of the COVID-19 pandemic and its aftereffects.

The Company’s CECL reserve reflects its estimation of the current and future economic conditions that impact the performance of the commercial real estate assets securing the Company’s loans. These estimations include unemployment rates, interest rates, price indices for commercial property, and other macroeconomic factors impacting 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. The forecasts are embedded in the licensed model that the Company uses to estimate its CECL reserve. Selection of these economic forecasts 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, and the actual economic conditions impacting the Company’s portfolio could vary significantly from the estimates the Company made for the periods presented.

Credit Loss Measurement

The amount of allowance for credit losses is influenced by the size of the Company’s loan portfolio, loan asset quality, risk rating, delinquency status, historic loss experience and other conditions 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: a model-based approach utilized for substantially all of its loans, and an individually-assessed approach for loans that the Company concludes are ill-suited for use in the model-based approach, or are individually-assessed.

Allowance for Credit Losses for Loans Held for Investment – Model-Based Approach

The model-based approach to measure the allowance for credit losses relates to loans which are not individually-assessed.

The Company licenses from Trepp LLC historical loss information, incorporating loan performance data for over 100,000 commercial real estate loans dating back to 1998, in an analytical model to compute statistical credit loss factors (i.e., probability-of-default and loss-given-default). These statistical credit loss factors are utilized together with individual loan information to generate future expected cash flows which are used to estimate the allowance for credit losses. This methodology appropriately considers the unique characteristics of the Company’s commercial mortgage loan portfolio and individual assets within the portfolio by considering individual loan risk ratings, delinquency statuses and other credit trends and risk characteristics. Further, the Company incorporates its expectations about the impact of current conditions and reasonable and supportable 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 will revert to unadjusted historical loan loss information based on systematic methodology determined at the input level. Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. In future periods, evaluations of the overall loan portfolio, in light of the factors and forecasts then prevailing, may result in significant changes in the allowance and credit loss expense.

Allowance for Credit Losses for Loans Held for Investment – Individually-Assessed Approach

In instances where the unique attributes of a loan investment render it ill-suited for the model-based approach because it no longer shares risk characteristics with other loans, or because the Company concludes repayment of the loan is collateral-dependent, the Company separately evaluates the amount of expected credit loss using a tailored discounted cash flow method, considering substantially the same credit factors as utilized in the model-dependent method. In these cases, expected credit loss is measured as the difference between the amortized cost basis of the loan and the fair value of the collateral as determined by management using standard discount cash flow valuation techniques. The fair value of the collateral is adjusted for the estimated cost to sell if repayment or satisfaction of a loan is dependent on the sale (rather than the operation) of the collateral.

Once the expected credit loss amount is determined, an allowance for credit losses equal to the calculated expected credit loss is established. If the calculated expected credit loss is determined to be permanent or not recoverable, the amount of expected credit loss will be charged-off through the allowance for credit losses. Factors considered by management in determining if the expected credit loss is permanent or not recoverable include whether management judges the loan to be uncollectible; that is, repayment is deemed to be delayed beyond reasonable time frames, or the loss becomes evident due to the borrower’s lack of assets and liquidity, or the borrower’s sponsor is unwilling or unable to support the loan.

Unfunded Loan Commitments

The Company’s first mortgage loans often contain provisions for future funding 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, and occasionally to fund forecasted operating deficits during lease-up, or for interest reserves. 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 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 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. No credit loss estimate is reported for unfunded loan commitments that are unconditionally cancellable by the Company.

CRE Debt Securities

The Company has in the past acquired CRE debt securities for short-term investment purposes. The Company designates CRE debt securities as available-for-sale (“AFS”) on the acquisition date. CRE debt securities that are classified as AFS are recorded at fair value through other comprehensive income or loss in the Company’s consolidated financial statements. The Company recognizes interest income on its CRE debt securities using the interest method, or on a straight-line basis when it approximates the effective interest method, with any premium or discount amortized or accreted into interest income based on the respective outstanding principal balance and corresponding contractual term of the CRE debt security. Accrued but not yet collected interest is separately reported as accrued interest receivable on the Company’s consolidated balance sheets. The Company uses a specific identification method when determining the cost of a CRE debt security sold and the amount of unrealized gain or loss reclassified from accumulated other comprehensive income or loss into earnings on the trade date.

AFS debt securities in unrealized loss positions are evaluated for impairment related to credit losses at least quarterly. For the purpose of identifying and measuring impairment, any applicable accrued interest is excluded from both the fair value and the amortized cost basis. The Company has elected to write off accrued interest by reversing interest income in the event the accrued interest is deemed uncollectible, generally when the security becomes 90 days or more past due for principal and interest.

The Company first assesses whether it intends to sell the debt security or more likely than not will be required to sell the debt security before recovery of its amortized cost basis. If either criterion regarding intent or requirement to sell is met, the debt security’s amortized cost basis is written down to its fair value and the write down is charged against the allowance for credit losses, with any incremental impairment reported in earnings as a loss in the consolidated statements of income and comprehensive income.

Any AFS debt security in an unrealized loss position which the Company does not intend to sell or is not more likely than not required to sell before recovery of the amortized cost basis is assessed for expected credit losses. The performance indicators considered for CRE debt securities relate to the underlying assets and include default rates, delinquency rates, percentage of nonperforming assets, debt-to-collateral ratios, third-party guarantees, current levels of subordination, vintage, geographic concentration, analyst reports and forecasts, credit ratings and other market data. In assessing whether a credit loss exists, the Company compares the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a credit loss exists and an allowance for credit losses is recorded, limited by the amount the fair value is less than amortized cost basis.

Declines in fair value of AFS debt securities in an unrealized loss position that are not due to credit losses, such as declines due to changes in market interest rates, are recorded through other comprehensive income. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Unrealized gains and losses on available-for-sale debt securities presented in the consolidated statement of income and comprehensive income includes the reversal of unrealized gains and losses at the time gains or losses are realized.

Significant valuation inputs in the fair value hierarchy as described below under “Fair Value Measurements” are Level I as of March 31, 2020 and Level II as of December 31, 2019.

Portfolio Financing Arrangements

The Company finances certain of its loans, or participation interests therein, using secured revolving repurchase agreements, senior secured and secured credit agreements, asset-specific financing arrangements, 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 and comprehensive income.

In certain instances, the Company creates structural leverage through the co-origination or non-recourse syndication of a senior loan interest to a third party. For all such syndications the Company has completed through March 31, 2020, the Company transferred on a non-recourse basis 100% of the senior mortgage loan that the Company originated or co-originated to a third-party lender 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 loan so 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.

The Company finances its CRE debt securities using secured revolving repurchase agreements with daily mark-to-market features and contract maturities of typically 30 days. The related borrowings are recorded as liabilities on the Company’s consolidated balance sheets. Interest income earned on the CRE debt securities and interest expense incurred on the related borrowings are reported in interest income and interest expense, respectively, on the Company’s consolidated statements of income and comprehensive income.

For more information regarding the Company’s 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 and cash equivalents, restricted cash and available-for-sale CRE debt securities. The three levels of inputs that may be used to measure fair value are as follows:

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

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

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

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

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 market, and the commercial mortgage loan and CRE debt securities markets, have and continue to experience extreme volatility, reduced transaction volume and liquidity, and disruption as a result of COVID-19, 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, capitalization rates and discount rates used to value commercial real estate properties, and observable transactions involving the sale or financing of commercial properties. In the absence of market inputs, GAAP permits the use of management assumptions to measure fair value. However, the considerable market volatility and disruption caused by COVID-19 and the considerable uncertainty regarding the ultimate impact and duration of the pandemic have made it more difficult for the Company’s management to formulate assumptions to measure the fair value of the Company’s assets.

Income Taxes

The Company qualifies and has elected to be taxed as a REIT for U.S. federal income tax purposes under the Internal Revenue Code of 1986, as amended, commencing with its initial taxable year ended December 31, 2014. To the extent that it annually distributes at least 90% of its REIT taxable income to stockholders and complies with various other requirements as a REIT, the Company generally will not be subject to U.S. federal income taxes on its distributed REIT taxable income. 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. On May 4, 2020, the Internal Revenue Service issued a revenue procedure that temporarily reduces (through the end of 2020) the minimum amount of the total distribution that must be paid in cash to 10%. Pursuant to these revenue procedures, 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.

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

Earnings per Common Share

The Company utilizes the two-class method when assessing participating securities to calculate earnings per common share. Basic and diluted earnings per common share is computed by dividing net income attributable to common stockholders (i.e., holders of common stock and Class A common stock), by the weighted-average number of common shares (both common stock and Class A common stock) outstanding during the period. The preferences, rights, voting powers, restrictions, limitations as to dividends and other distributions, qualifications and terms and conditions of redemption of the Class A common stock are identical to the common stock, except (1) the Class A common stock is not a “margin security” as defined in Regulation U of the Board of Governors of the U.S. Federal Reserve System (and rulings and interpretations thereunder) and may not be listed on a national securities exchange or a national market system and (2) each share of Class A common stock is convertible at any time or from time to time, at the option of the holder, for one fully paid and non-assessable share of common stock.

Between January 22, 2020 and January 24, 2020, the Company received requests to convert all outstanding shares of its Class A common stock into shares of the Company’s common stock. Accordingly, all of the outstanding shares of the Company’s Class A common stock were retired and returned to the authorized but unissued shares of Class A common stock of the Company, and the holders of the shares of Class A common stock were issued an aggregate of 1,136,665 shares of the Company’s common stock. On February 14, 2020, the Company filed Articles Supplementary with the State Department of Assessments and Taxation of Maryland to reclassify and designate all 2,500,000 authorized but unissued shares of the Company’s Class A common stock as additional shares of undesignated common stock of the Company. The Articles Supplementary became effective upon filing on February 14, 2020. As a result, as of March 31, 2020, there are no shares of the Company’s Class A common stock authorized or outstanding.

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

Share-Based Compensation

Share-based compensation consists of awards issued by the Company to certain employees of affiliates of the Manager and certain members of our Board of Directors. These share-based awards generally vest in installments over a fixed period of time. Deferred stock units granted to the Company’s Board of Directors fully vest on the grant date and accrue dividends that are paid-in kind through additional deferred stock units on a quarterly basis. Compensation expense is recognized in net income on a straight-line basis over the applicable award’s vesting period. Forfeitures of share-based awards are recognized as they occur.

Deferred Financing Costs

Deferred financing costs are reflected net of the collateralized loan obligations and secured financing arrangements 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: (a) for secured financing arrangements other than our CRE CLOs, the initial term of the financing arrangement; (b) for deferred financing costs related to specific borrowings under secured financing arrangements other than CRE CLOs, the initial maturities of the underlying loan(s) pledged to support the specific borrowing; and (c), for CRE CLOs issued by Company subsidiaries, over the estimated life of the liabilities issued based on the expected repayment behavior of the underlying loans in each CRE CLO, taking into account the two- year reinvestment periods (measured from the issuance date) of each CRE CLO.

Cash and Cash Equivalents

Cash and cash equivalents include cash held in banks or invested in money market funds with original maturities of less than 90 days. The Company deposits its cash and cash equivalents with high credit quality institutions to minimize credit risk exposure. The Company maintains cash accounts at several financial institutions, which are insured up to a maximum of $250,000 per account as of March 31, 2020 and December 31, 2019. 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) $10 million or (ii) the product of 5% and the aggregate recourse indebtedness of the Company. To comply with this covenant, the Company held as part of its total cash balances $58.4 million and $56.9 million, respectively, at March 31, 2020 and December 31, 2019.

Restricted Cash

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

Accounts Receivable from Servicer/Trustee

Accounts receivable from Servicer/Trustee represents cash proceeds from loan and CRE debt securities activities that have not been remitted to the Company based on established servicing and borrowing procedures. Amounts are generally held by the Servicer/Trustee for less than 30 days before being remitted to the Company.

Going Concern

The accompanying consolidated financial statements are prepared in accordance with generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.

The Company’s primary sources of liquidity include cash, availability under secured borrowing arrangements, net proceeds from loan repayments in excess of the Company’s borrowings secured by loans so repaid, net proceeds from the sale of CRE CLO investments, and net proceeds from loan sales. During the quarter ended March 31, 2020, the COVID-19 pandemic caused significant disruption to the US and global economies, contributing to significant and ongoing volatility, widening credit spreads and sharp declines in liquidity in the commercial real estate capital markets, and disruption of the banking sector. These factors in combination have caused the Company to experience a reduction in available liquidity due to margin calls paid related to daily mark-to-market borrowing against its investment portfolio of CRE CLO debt securities, incur losses due to the sale of its entire investment portfolio of CRE CLO securities, experience a slowdown in the pace and volume of loan repayments by its borrowers, and forecast the need to reduce the advance rate of its borrowings under its secured revolving repurchase agreements, and senior secured and secured credit facilities.

The Company has undertaken a plan to support its operations and meet its liquidity needs:

•

On March 23, 2020, the Company announced the deferral until July 14, 2020 of the payment of the Company’s declared first quarter dividend to stockholders of record as of June 15, 2020. The Board of Directors will determine whether to pay the dividend entirely in cash, or in a combination of cash and stock.

•

Between March 23, 2020 and April 29, 2020, the Company sold 49 separate CRE debt securities investments with an aggregate face value of $961.3 million, and repaid related secured indebtedness of $722.7 million, generating net cash proceeds of $35.2 million.

•

On May 4, 2020, the Company extended the maturity date by one year to May 4, 2021 of its secured revolving repurchase agreement with Morgan Stanley Bank.

However, with consideration of the above actions taken, Management projects that the Company will not have sufficient liquidity to repay maturing debt balances of $432.2 million and meet its obligations as they become due to sustain operations through at least one year following the date the consolidated financial statements are issued. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.

In response to these conditions, Management’s plans include the intention to execute extensions with the Company’s lenders during 2020, and believes that such extensions are probable of occurring, which is expected to extend the maturity dates until May 2022 or after. The Company has a history of successfully executing extensions with these lenders. As a result, the Company has concluded that management’s plans are probable of being achieved to alleviate substantial doubt about the Company’s ability to continue as a going concern.

Recently Adopted Accounting Guidance

On January 1, 2020, the Company adopted Accounting Standards Update (“ASU”) 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which replaces the incurred loss methodology with an expected loss method that is referred to as the CECL method. The measurement of expected credit losses under the CECL method is applicable to the Company’s mortgage loan investment portfolio measured at amortized cost, unfunded loan commitments and AFS debt securities measured at fair value. Also on January 1, 2020, the Company adopted the following ASUs issued subsequent to ASU 2016-13 which amended Topic 326:

•

ASU 2018-19, Codification Improvements to Topic 326 – Credit Losses

•

ASU 2019-04, Codification Improvements to Topic 326 – Credit Losses, Topic 815 – Derivatives and Hedging, and Topic 825 – Financial Instruments

•

ASU 2019-05, Financial Instruments – Credit Losses (Topic 326): Targeted Transition Relief

•

ASU 2019-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates

•

ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments – Credit Losses

The Company adopted ASU 2016-13 and other related ASUs listed above using the modified retrospective method for all mortgage loans measured at amortized cost and unfunded noncancelable loan commitments. Results for reporting periods beginning after January 1, 2020 are presented under ASU 2016-13 and other related ASUs while prior period amounts continue to be reported in accordance with previously applicable GAAP.

The following table presents the January 1, 2020 cumulative impact of the adoption of ASU 2016-13 on the indicated line items of the Company’s consolidated balance sheet as of January 1, 2020:

	Pre-Adoption			Cumulative Effect of Adopting ASU 2016-13			Post-Adoption
Assets:
Loans Held for Investment	$	4,980,389		$	—		$	4,980,389
Allowance for Credit Losses		—			(17,783	)		(17,783	)
Loan Held for Investment, net	$	4,980,389		$	(17,783	)	$	4,962,606

Liabilities:
Accrued Expenses and Other Liabilities	$	8,176		$	1,862		$	10,038

Equity:
Accumulated Deficit	$	(28,108	)	$	(19,645	)	$	(47,753	)

The adoption of ASU 2016-13 did not have a material impact on the Company’s portfolio of AFS debt securities at January 1, 2020.

Loans Held for Investment and the Allowance for Credit Losses

3 Months Ended

Mar. 31, 2020

Receivables [Abstract]

Loans Held for Investment and the Allowance for Credit Losses

(3) 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 belong to a single portfolio segment, Mortgage Loans, because this is the level at which the Company has developed its systematic methodology to determine the Allowance for Credit Losses. 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 as measured by various metrics, including, without limitation, property type collateralizing the loan, 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. Accrued but not yet collected interest is separately reported as accrued interest receivable on the Company’s consolidated balance sheets. Amounts within that caption relating to Loans Held for Investment were $15.4 million as of March 31, 2020.

During the three months ended March 31, 2020, the Company originated five mortgage loans with a total commitment of $437.4 million, an initial unpaid principal balance of $353.5 million, and unfunded commitments at closing of $83.9 million.

The following table details overall statistics for the Company’s loan portfolio as of March 31, 2020 (dollars in thousands):

	Balance Sheet Portfolio			Total Loan Portfolio
Number of loans		66			67
Floating rate loans (by unpaid principal balance)		100.0	%		100.0	%
Total loan commitments⁽¹⁾	$	5,763,697		$	5,895,697
Unpaid principal balance	$	5,112,808		$	5,112,808
Unfunded loan commitments⁽²⁾	$	650,889		$	650,889
Carrying value	$	5,020,695		$	5,020,695
Weighted average credit spread⁽³⁾		3.4	%		3.4	%
Weighted average all-in yield⁽³⁾		5.4	%		5.4	%
Weighted average term to extended maturity (in years)⁽⁴⁾		3.7			3.7
Weighted average LTV⁽⁵⁾		65.7	%		65.7	%

(1)

In certain instances, we create 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 our balance sheet. When we create structural leverage through the co-origination or non-recourse syndication of a senior loan interest to a third-party, we retain on our balance sheet a mezzanine loan. Total loan commitment encompasses the entire loan portfolio we originated, acquired and financed. At March 31, 2020, we had one non-consolidated senior interest outstanding of $132.0 million.

(2)

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 our borrowers, to finance operating deficits during renovation and lease-up, and in limited instances to finance construction.

(3)

As of March 31, 2020, our floating rate loans were indexed to LIBOR. In addition to credit spread, all-in yield includes the amortization of deferred origination fees, purchase price premium and discount, loan origination costs and accrual of both extension and exit fees. Credit spread and all-in yield for the total portfolio assumes the applicable floating benchmark rate as of March 31, 2020 for weighted average calculations.

(4)

Extended maturity assumes all extension options are exercised by the borrower; provided, however, that our loans may be repaid prior to such date. As of March 31, 2020, based on the unpaid principal balance of our total loan exposure, 66.0% of our loans were subject to yield maintenance or other prepayment restrictions and 34.0% were open to repayment by the borrower without penalty.

(5)

Except for construction loans, LTV is calculated for loan originations and existing loans as the total outstanding principal balance of the loan or participation interest in a loan (plus any financing that is pari passu with or senior to such loan or participation interest) as of March 31, 2020, divided by the as-is appraised value of our collateral at the time of origination or acquisition of such loan or participation interest. For construction loans only, LTV is calculated as the total commitment amount of the loan divided by the as-stabilized value of the real estate securing the loan. The as-is or as-stabilized (as applicable) value reflects our Manager’s estimates, at the time of origination or acquisition of the loan or participation interest in a loan, of the real estate value underlying such loan or participation interest determined in accordance with our Manager’s underwriting standards and consistent with third-party appraisals obtained by our Manager. See Note 16 to the Consolidated Financial Statements included in this Form 10-Q for details about our mortgage loan originations subsequent to March 31, 2020.

The following tables present an overview of the mortgage loan investment portfolio by loan seniority as of March 31, 2020 and December 31, 2019 (dollars in thousands):

	March 31, 2020
Loans Receivable	Outstanding Principal		Unamortized Premium (Discount), Loan Origination Fees, net			Allowance for Credit Losses			Carrying Amount
Senior loans	$	5,092,808	$	(16,199	)	$	(73,620	)	$	5,002,989
Subordinated and mezzanine loans		20,000		(256	)		(2,038	)		17,706
Total	$	5,112,808	$	(16,455	)	$	(75,658	)	$	5,020,695

	December 31, 2019
Loans Receivable	Outstanding Principal		Unamortized Premium (Discount), Loan Origination Fees, net			Allowance for Credit Losses		Carrying Amount
Senior loans	$	4,978,176	$	(17,500	)	$	—	$	4,960,676
Subordinated and mezzanine loans		20,000		(287	)		—		19,713
Total	$	4,998,176	$	(17,787	)	$	—	$	4,980,389

For the three months ended March 31, 2020, loan portfolio activity was as follows (dollars in thousands):

	Carrying Value
Balance at December 31, 2019	$	4,980,389
Additions during the period:
Loans originated and acquired		351,650
Additional fundings		61,720
Amortization of origination fees		3,213
Deductions during the period:
Collection of principal		(300,619	)
Change in allowance for credit losses		(75,658	)
Balance at March 31, 2020	$	5,020,695

At March 31, 2020 and December 31, 2019, there were no unamortized loan purchase discounts or premiums included in loans held for investment at amortized cost on the consolidated balance sheets.

At March 31, 2020 and December 31, 2019, there was $16.5 million and $17.8 million, respectively, of unamortized loan fees and discounts included in Loans Held for Investment, net in the consolidated balance sheets. The Company recognized the accelerated fee component of prepayment fees (yield maintenance payments) of $0.3 million and $0.6 million, respectively, during the three months ended March 31, 2020 and 2019.

Credit Quality Indicators

The Company categorizes loans into risk categories based on relevant information about the ability of the borrowers to service their debt such as current operating performance for the property or properties securing the Company’s loans, borrower and guarantor financial information, historical payment experience, credit documentation, public information and current economic trends, market data for the property types and geographic markets applicable to the Company’s loans, among other factors. On a quarterly basis, the Company evaluates all of its loans to assign risk ratings. Based on a 5-point scale, the Company’s loans are rated “1” through “5,” from least risk to greatest risk, respectively, which ratings are defined as follows:

1

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

2

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

3

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

4

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

5

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

The Company generally assigns a risk rating of “3” to all newly originated loan investments during the most recent quarter, except in the case of specific circumstances warranting an exception.

The following table presents amortized cost basis by origination year, grouped by risk rating, as of March 31, 2020 (dollars in thousands):

	March 31, 2020
	Amortized Cost Basis of Loans by Origination Year
	2020		2019		2018		2017		2016		Total
Senior loans by internal risk ratings:
1	$	—	$	—	$	—	$	—	$	—	$	—
2		—		—		344,297		85,254		—		429,551
3		353,127		1,766,882		1,116,492		278,684		—		3,515,185
4		—		530,000		158,532		315,820		28,057		1,032,409
5		—		—		—		99,464		—		99,464
Total mortgage loans		353,127		2,296,882		1,619,321		779,222		28,057		5,076,609
Subordinated and mezzanine loans by internal risk ratings:
1	$	—	$	—	$	—	$	—	$	—	$	—
2		—		—		—		—		—		—
3		—		19,744		—		—		—		19,744
4		—		—		—		—		—		—
5		—		—		—		—		—		—
Total subordinated and mezzanine loans		—		19,744		—		—		—		19,744
Total	$	353,127	$	2,316,626	$	1,619,321	$	779,222	$	28,057	$	5,096,353

Loans acquired rather than originated are presented in the table above in the column corresponding to the year of origination, not acquisition.

The table below summarizes the carrying values, net of allowance for credit loss, and results of the Company’s internal risk rating review performed as of March 31, 2020 and December 31, 2019 (dollars in thousands):

Rating	March 31, 2020		December 31, 2019
1	$	—	$	—
2		426,306		903,393
3		3,502,269		3,868,696
4		1,017,414		208,300
5		74,706		—
Total	$	5,020,695	$	4,980,389

Weighted Average Risk Rating⁽¹⁾		3.1		2.9

(1)	Weighted Average Risk Rating calculated based on carrying value at period end.

The weighted average risk rating calculated as of March 31, 2020 was 3.1, an increase from the 2.9 weighted average risk rating at December 31, 2019.

During the three months ended March 31, 2020:

•

The Company moved seven hotel loans from its Category 3 risk rating to its Category 4 risk rating and two hotel loans from its Category 2 risk rating to its Category 4 risk rating due to operating challenges in the lodging industry caused by the COVID-19 pandemic and the travel and social distancing policies that ensued.

•

The Company moved two loans from its Category 2 risk rating to its Category 3 risk rating. One of these loans is secured by a mixed-use property with a hotel component, and the other loan is secured by a property that had its ongoing sale process negatively impacted by COVID-19.

•

The Company moved two loans from its Category 3 risk rating to its Category 4 risk rating: one due to unexpected increases in renovation costs and concern regarding the financial condition of the sponsors; the second because the borrower informed the Company, subsequent to March 31, 2020, that it intends to negotiate with us a deed in lieu of foreclosure. See Note 16.

•

The Company moved one loan from its Category 4 risk rating to its Category 5 risk rating due to poor operating performance of the collateral securing the loan, the borrower’s financial distress and failure to pay interest when due.

Allowance for Credit Losses

The Company’s reserve developed pursuant to ASC 326 reflects its current estimate of potential credit losses related to its loan portfolio as of March 31, 2020. In addition to the allowance for credit losses, the Company maintains a separate allowance for credit losses related to unfunded loan commitments, and this amount is included in accrued expenses and other liabilities on the consolidated balance sheets. For further information on the policies that govern the estimation of the allowances for credit loss levels, see Note 2, Summary of Significant Accounting Policies.

The following table presents activity in the allowance for credit losses for the mortgage loan investment portfolio by class of finance receivable for the three month period ended March 31, 2020 (dollars in thousands):

	March 31, 2020
	Senior Loans		Subordinated and Mezzanine Loans		Total
Allowance for credit losses for loans held for investment:
Beginning balance (prior to adoption of ASC 326)	$	—	$	—	$	—
Impact of adopting ASC 326		16,903		880		17,783
Credit loss expense		56,717		1,158		57,875
Subtotal		73,620		2,038		75,658

Allowance for credit losses on unfunded loan commitments:
Beginning balance (prior to adoption of ASC 326)		—		—		—
Impact of adopting ASC 326		1,862		—		1,862
Credit loss expense		3,945		1,528		5,473
Subtotal		5,807		1,528		7,335

Total allowance for credit losses	$	79,427	$	3,566	$	82,993

During the three months ended March 31, 2020, the allowance for credit losses increased to $83.0 million, comprised of $19.6 million in connection with the adoption of ASC 326 on January 1, 2020, and the increase of the provision during the three months ended March 31, 2020. Upon the adoption of ASC 326, the allowance for credit losses increased by $19.6 million due to the application of the Current Expected Credit Loss methodology (as described in Note 2) over performing loans on which the Company had previously not carried an allowance for credit losses. Subsequent to adoption, the Company’s estimate of expected credit losses further increased primarily due to changes in economic outlook stemming from the impact of the COVID-19 pandemic. The impact of reduced economic activity due to the COVID-19 pandemic will likely result in reduced activity in capital markets, which may slow the pace of loan repayments, and will likely impact commercial property values and valuation inputs. While the ultimate impact is uncertain, the Company has made certain forward looking adjustments to the inputs of its calculation of the allowance for credit losses to reflect the change in its expectations, including downgrading nine operating hotel loans to risk rating Category 4, as described above.

The increase in expected credit losses as of March 31, 2020 as compared to expected credit losses as of the adoption date of ASU 326 resulted in the recognition of a credit loss expense of $63.3 million (including for unfunded loan commitments.) This increase was caused primarily by the significant adverse change in the macroeconomic forecast utilized in the Company’s loss estimation model due to the COVID-19 pandemic. Additionally, the average risk ratings of the Company’s loans increased from 2.9 as of December 31, 2019 to 3.1 as of March 31, 2020, due primarily to downgrades of nine of the Company’s operating hotel loans in response to the COVID-19 pandemic.

During the three months ended March 31, 2020 and the year ended December 31, 2019, no loans were placed on non-accrual status, although the passage of time and the continuing failure by certain borrowers to pay interest due to the continuing COVID-19 pandemic will likely result in certain loans being placed on non-accrual status during the second quarter of 2020 and later periods.

The Company currently has no loans accounted for as TDRs. If in the future the Company grants short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief, the affected loans will not be accounted for as TDRs. This includes short-term (e.g., six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or delays in payment that are insignificant. Nonetheless, the Company may enter into loan modifications that temporarily reduce the amount of cash interest collected on certain loans, permit the accrual of a portion of the interest due during the modification period, and/or permit the use of existing cash loan reserves to pay interest expense and other property-level expenses.

At March 31, 2020 and December 31, 2019, the Company had not written off any expected credit losses.

The following table presents the aging analysis on an amortized cost basis of mortgage loans by class of loans as of March 31, 2020 (dollars in thousands):

	Days Outstanding
	30-59 Days		60-89 Days		90 Days or More		Total Loans Past Due		Current		Total Loans		90 Days or More Past Due and Accruing
Loans Receivable:
Senior loans	$	28,057	$	—	$	—	$	—	$	5,048,552	$	5,076,609	$	—
Subordinated and mezzanine loans		—		—		—		—		19,744		19,744		—
Total	$	28,057	$	—	$	—	$	—	$	5,068,296	$	5,096,353	$	—

At December 31, 2019, all loans were current.

Available-for-Sale Debt Securities

3 Months Ended

Mar. 31, 2020

Investments Debt And Equity Securities [Abstract]

Available-for-Sale Debt Securities

(4) Available-for-Sale Debt Securities

The Company designates its CRE debt securities as AFS upon acquisition. During the three months ended March 31, 2020, the Company purchased 10 CRE CLO investments for an aggregate purchase price of $169.0 million. The purchased CRE CLO investments consist of floating rate, investment grade rated debt securities which, in the aggregate, had a weighted average coupon of LIBOR plus 2.1%. Accrued but not yet collected interest is separately reported as accrued interest receivable on the Company’s consolidated balance sheets. Amounts within that caption relating to AFS Debt Securities was $1.7 million as of March 31, 2020.

As of March 31, 2020 and December 31, 2019, the Company had 37 and 38 CRE debt securities, respectively, designated as AFS debt securities. During the three months ended March 31, 2020, the Company sold 11 of its CRE CLO investments for total net proceeds of $151.6 million, recognizing a loss on sale of $36.2 million in Securities Impairments on the consolidated statement of income and comprehensive income.

During the quarter ended March 31, 2020, all but one of the Company’s CRE debt securities portfolio was pledged as collateral under daily mark-to-market secured revolving repurchase facilities. Fluctuations in the value of the Company’s CRE debt securities portfolio resulted in the Company being required to post cash collateral with the Company’s lenders under these facilities. To mitigate the impact to the Company’s business from these developments, the Company decided to sell substantially all of the Company’s CRE debt securities portfolio. Accordingly, at March 31, 2020, the Company determined it no longer had the intent and ability to retain its investment portfolio of CRE debt securities, wrote down the entire portfolio to its estimated fair value (on securities where amortized cost basis exceeded fair value), and recorded an impairment charge of $167.3 million, which is recognized as expense in Securities Impairments on the consolidated statement of income and comprehensive income. Refer to Note 16 for additional information regarding sales of CRE debt securities after March 31, 2020. Because the Company recognized the entire impairment as an expense, the allowance for credit losses related to CRE debt securities is zero as of March 31, 2020 and none of the securities are in an unrealized loss position.

The following table summarizes the amortized cost, fair value, and unrealized gain of the Company’s CRE debt securities at March 31, 2020 (dollars in thousands):

	March 31, 2020
	Face Amount		Impaired Face Amount		Unamortized Premium (Discount), net			Amortized Cost		Gross Unrealized Gain		Estimated Fair Value
Investments, at Fair Value
CRE CLO	$	731,176	$	575,480	$	291		$	575,771	$	—	$	575,771
Commercial Mortgage-Backed Securities		36,158		29,008		(55	)		28,953		77		29,030
	$	767,334	$	604,488	$	236		$	604,724	$	77	$	604,801

The amount of relevant accrued interest excluded from the amortized cost basis balances presented in the table above is $1.7 million.

	December 31, 2019
	Face Amount		Unamortized Premium (Discount), net			Amortized Cost		Gross Unrealized Gain		Estimated Fair Value
Investments, at Fair Value
CRE CLO	$	750,187	$	207		$	750,394	$	1,006	$	751,400
Commercial Mortgage-Backed Securities		36,162		(55	)		36,107		45		36,152
	$	786,349	$	152		$	786,501	$	1,051	$	787,552

The Company’s CRE debt securities have a weighted average expected life, based on estimated fair value, of 3.0 years. The amortized cost and estimated fair value of the Company’s CRE debt securities by contractual maturity, not expected life, as of March 31, 2020 and December 31, 2019, respectively, are shown in the following table (dollars in thousands):

	March 31, 2020
	Amortized Cost		Estimated Fair Value
Maturity Date
Within five years	$	1,119	$	1,196
After five years		603,605		603,605
Total investment in CRE debt securities, at amortized cost and estimated fair value	$	604,724	$	604,801

	December 31, 2019
	Amortized Cost		Estimated Fair Value
Maturity Date
After one, within five years	$	1,126	$	1,143
After five years		785,375		786,409
Total investment in CRE debt securities, at amortized cost and estimated fair value	$	786,501	$	787,552

Variable Interest Entities and Collateralized Loan Obligations

3 Months Ended

Mar. 31, 2020

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Variable Interest Entities and Collateralized Loan Obligations

(5) Variable Interest Entities and Collateralized Loan Obligations

On October 25, 2019 (the “FL3 Closing Date”), TPG RE Finance Trust CLO Sub-REIT, a subsidiary of the Company (“Sub-REIT”), entered into a collateralized loan obligation (“TRTX 2019-FL3” or “FL3”) through its wholly-owned subsidiaries TRTX 2019-FL3 Issuer, Ltd., an exempted company incorporated in the Cayman Islands with limited liability, as issuer (the “FL3 Issuer”), and TRTX 2019-FL3 Co-Issuer, LLC, a Delaware limited liability company, as co-issuer (the “FL3 Co-Issuer” and together with the FL3 Issuer, the “FL3 Issuers”). On the FL3 Closing Date, FL3 Issuer issued $1,230.3 million principal amount of notes (the “FL3 Notes”). The FL3 Co-Issuer co-issued $1,039.6 million principal amount of investment grade-rated notes which were purchased by third party investors. Concurrently with the issuance of the FL3 Notes, the FL3 Issuers also issued preferred shares, par value $0.001 per share and with an aggregate liquidation preference and notional amount equal to $1,000 per share (the “FL3 Preferred Shares” and, together with the FL3 Notes, the “FL3 Securities”), to TRTX Master Retention Holder, LLC, a Delaware limited liability company and wholly-owned subsidiary of the Sub-REIT (“FL3 Retention Holder”). Through FL3 Retention Holder, the Sub-REIT retained ownership of $190.7 million of FL3 Notes issued and FL3 Preferred Shares.

Proceeds from the issuance of the FL3 Securities were used by the FL3 Issuers to purchase two commercial real estate whole loans (the “FL3 Whole Loans”) and 20 fully-funded pari passu participations in mortgage loans (the “FL3 Pari Passu Participations,” and, together with the FL3 Whole Loans and the FL3 Additional Interests (as defined below), the “FL3 Mortgage Assets”) in certain commercial real estate mortgage loans. The FL3 Mortgage Assets were purchased by the FL3 Issuer from TRTX Master CLO Loan Seller, LLC, a Delaware limited liability company, a wholly-owned subsidiary of the Company and an affiliate of the FL3 Issuers. The TRTX 2019-FL3 indenture permits the FL3 Issuer to modify certain economic terms, including without limitation, the interest rate and maturity date of FL3 Mortgage Assets, and subject to certain limitations, to provide additional flexibility with respect to the underlying collateral where appropriate to do so. TRTX 2019-FL3 permits the Company, during the 24 months after closing of FL3, to contribute eligible new loans or participation interests (the “FL3 Additional Interests”) in loans to TRTX 2019-FL3 in exchange for cash, which provides additional liquidity to the Company to originate new loan investments as underlying loans repay. For the three months ended March 31, 2020, the Company utilized the reinvestment feature four times, contributing $157.3 million of new loans or participating interests in loans, and receiving $47.3 million of cash, after the repayment of $110.0 million of existing borrowings, including accrued interest. FL3 Mortgage Assets represented 24.1% of the aggregate unpaid principal balance of the Company’s loan investment portfolio and had an aggregate principal balance of approximately $1.2 billion, as of March 31, 2020.

At March 31, 2020, TRTX 2019-FL3 had approximately $0.0 million of cash available to acquire eligible assets.

In connection with TRTX 2019-FL3, the Company incurred $7.8 million of issuance costs which are amortized on an effective yield basis over the expected life of the investment-grade notes issued based upon the expected repayment behavior of the loans collateralizing the notes after giving effect to the reinvestment period, both as of the FL3 Closing Date. As of March 31, 2020, the Company’s unamortized issuance costs related to TRTX 2019-FL3 were $6.8 million.

Interest expense on the outstanding FL3 Notes is payable monthly. For the three months ended March 31, 2020 interest expense on the outstanding FL3 Notes (excluding amortization of deferred financing costs) of $7.3 million is included in the Company’s consolidated statements of income and comprehensive income.

On November 29, 2018 (the “FL2 Closing Date”), Sub-REIT entered into a collateralized loan obligation (“TRTX 2018-FL2”) The TRTX 2018-FL2 indenture permits the Company to contribute eligible new loans or participation interests in loans to TRTX 2018-FL2 in exchange for cash, which provides additional liquidity to the Company to originate new loan investments as underlying loans repay. For the year three months ended March 31, 2020, the Company utilized the reinvestment feature three times, contributing $74.3 million of new loans or participation interests in loans, and receiving net cash proceeds of $45.1 million, after the repayment of $29.2 million of existing borrowings, including accrued interest.

At March 31, 2020, TRTX 2018-FL2 had approximately $0.2 million in cash available to acquire eligible assets.

In connection with TRTX 2018-FL2, the Company incurred $8.7 million of issuance costs which are amortized on an effective yield basis over the expected life of the investment-grade notes (the “FL2 Notes”) issued based upon the expected repayment behavior of the loans collateralizing the notes and the reinvestment period, both as of the FL2 Closing Date. As of March 31, 2020, the Company’s unamortized issuance costs were $5.6 million.

Interest expense on the outstanding FL2 Notes is payable monthly. For the three months ended March 31, 2020, interest expense on the outstanding FL2 Notes (excluding amortization of deferred financing costs) of $6.0 million is included in the Company’s consolidated statements of income and comprehensive income.

In accordance with ASC 810, the Company evaluated the key attributes of the FL3 Issuers and the issuers of the FL2 Notes (the “FL2 Issuers”) to determine if they were VIEs and, if so, whether the Company was the primary beneficiary of their operating activities. This analysis caused the Company to conclude that the FL3 Issuers and the FL2 Issuers were VIEs and that the Company was the primary beneficiary. The Company is the primary beneficiary of the VIEs because it has the ability to control the most significant activities of the FL3 Issuers and the FL2 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. As a result, the Company consolidates the FL3 Issuers and the FL2 Issuers.

The Company’s total assets and total liabilities as of March 31, 2020 and December 31, 2019 included the following VIE assets and liabilities of TRTX 2019-FL3 and TRTX 2018-FL2 (dollars in thousands):

	March 31, 2020		December 31, 2019
ASSETS
Cash and Cash Equivalents	$	19,683	$	17,075
Accounts Receivable from Servicer/Trustee		407		1,464
Accrued Interest and Fees Receivable		1,648		2,178
Loans Held for Investment		2,230,345		2,229,034
Total Assets	$	2,252,083	$	2,249,751
LIABILITIES
Accrued Interest Payable	$	1,802	$	2,512
Accrued Expenses and Other Liabilities		376		732
Collateralized Loan Obligations		1,822,291		1,821,128
Payable to Affiliates		4,620		4,620
Deferred Revenue		155		—
Total Liabilities	$	1,829,244	$	1,828,992

The following tables outline TRTX 2019-FL3 and TRTX 2018-FL2 loan collateral and borrowings under the TRTX 2019-FL3 and TRTX 2018-FL2 collateralized loan obligations as of March 31, 2020 and December 31, 2019 (dollars in thousands):

March 31, 2020
Collateral (loan investments)				Debt (notes issued)
Outstanding Principal		Carrying Value		Face Value		Carrying Value
$	2,230,345	$	2,230,345	$	1,834,760	$	1,822,291

December 31, 2019
Collateral (loan investments)				Debt (notes issued)
Outstanding Principal		Carrying Value		Face Value		Carrying Value
$	2,229,034	$	2,229,034	$	1,834,761	$	1,821,128

Assets held by the FL3 Issuers and the FL2 Issuers are restricted and can only be used to settle obligations of the related VIE. The liabilities of the FL3 Issuers and the FL2 Issuers are non-recourse to the Company and can only be satisfied from the assets of the related VIE.

The following table outlines the weighted average spreads and maturities for TRTX 2019-FL3 and TRTX 2018-FL2 loan collateral and borrowings under the TRTX 2019-FL3 and TRTX 2018-FL2 collateralized loan obligations as of March 31, 2020 and December 31, 2019 (dollars in thousands):

	March 31, 2020					December 31, 2019
	Weighted Average Spread (%)⁽¹⁾			Weighted Average Maturity (Years)⁽²⁾		Weighted Average Spread (%)⁽¹⁾			Weighted Average Maturity (Years)⁽²⁾
Collateral (loan investments)
TRTX 2018-FL2		3.74	%		4.5		3.82	%		4.2
TRTX 2019-FL3		3.18	%		4.2		3.33	%		4.1

Debt (notes issued)
TRTX 2018-FL2		1.72	%		17.6		1.72	%		17.9
TRTX 2019-FL3		1.63	%		14.5		1.63	%		14.8

(1)	Yield on collateral is based on cash coupon. Financing cost includes amortization of deferred financing costs incurred in connection with the CLO.

(2)

Loan term represents weighted-average final maturity, assuming extension options are exercised by the borrower. Repayments of CLO notes are dependent on timing of related collateral loan asset repayments post reinvestment period. The term of the CLO notes represents the rated final distribution date.

Secured Revolving Repurchase Agreements, Senior Secured and Secured Credit Agreements, and Asset-Specific Financing

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Secured Revolving Repurchase Agreements, Senior Secured and Secured Credit Agreements, and Asset-Specific Financing

(6) Secured Revolving Repurchase Agreements, Senior Secured and Secured Credit Agreements, and Asset-Specific Financing

At March 31, 2020 and December 31, 2019, the Company had secured revolving repurchase agreements, senior secured and secured credit agreements and an asset-specific financing, all of which were used to finance certain of the Company’s originated loans. These financing arrangements bear interest at rates equal to LIBOR plus a credit spread negotiated between the Company and each lender, typically 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. Except for the asset-specific financing, these borrowing arrangements contain mark-to-market provisions that permit the lenders to issue margin calls to the Company 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 due to reasons other than changing credit spreads for similar borrowing obligations. In connection with one of these borrowing arrangements, the lender is also permitted to issue margin calls to the Company in the event the lender determines credit spreads have changed for similar borrowing obligations.

At March 31, 2020 and December 2019, the Company had four secured revolving repurchase agreements which were used to finance its CRE CLO debt investments. These financing arrangements bear interest at a rate equal to LIBOR plus a credit spread negotiated between the Company and its lenders, which is determined primarily by the haircut amount (inverse of the advance rate) and the rating of the bonds so financed. These borrowing arrangements contain daily mark-to-market provisions that permit the lenders to issue margin calls to the Company in response to changing interest rates and credit spreads on the CRE debt securities so financed. Additionally, these borrowing arrangements typically have tenors limited to 30, 60 or 90 days subject to renewal at the lenders’ option.

The following table presents certain information regarding the Company’s secured revolving repurchase agreements, senior secured and secured credit agreements, and asset-specific financings as of March 31, 2020 and December 31, 2019. Except as otherwise noted, all agreements are on a full or partial recourse basis (dollars in thousands):

	March 31, 2020
Financing Arrangement Secured Revolving Repurchase Agreements	Maturity Date	Index Rate	Weighted Average Credit Spread			Interest Rate			Commitment Amount		Maximum Current Availability		Balance Outstanding		Principal Balance of Collateral⁽¹⁾		Carrying Value of Collateral
Goldman Sachs⁽²⁾	08/19/20	1 Month LIBOR		2.1	%		3.1	%	$	750,000	$	602,992	$	147,008	$	221,728	$	220,151
Wells Fargo⁽²⁾	04/18/22	1 Month LIBOR		1.7	%		2.7	%		750,000		389,462		360,538		494,959		492,972
Barclays⁽²⁾	08/13/22	1 Month LIBOR		1.5	%		2.5	%		750,000		160,474		589,526		742,729		740,584
Morgan Stanley^(2),(5)	05/04/20	1 Month LIBOR		1.8	%		2.8	%		500,000		58,641		441,359		578,177		575,025
JP Morgan⁽²⁾	08/20/21	1 Month LIBOR		1.6	%		2.6	%		400,000		179,378		220,622		294,041		288,654
US Bank⁽²⁾	07/09/22	1 Month LIBOR		1.5	%		2.5	%		189,490		114,011		75,479		98,272		97,821
Subtotal - Loan Investments										3,339,490		1,504,958		1,834,532		2,429,906		2,415,207
Goldman Sachs⁽³⁾	04/10/20	1 Month LIBOR		1.1	%		2.0	%		73,366		—		73,366		59,687		59,756
JP Morgan⁽³⁾	04/08/20	1 Month LIBOR		1.1	%		2.1	%		437,323		—		437,323		438,297		438,420
Wells Fargo⁽³⁾	04/19/20	1 Month LIBOR		1.3	%		2.2	%		97,592		—		97,592		115,585		115,668
Royal Bank of Canada⁽³⁾	N/A	N/A	N/A			N/A				—		—		—		—		—
Subtotal - CRE Debt Securities										608,281		—		608,281		613,569		613,844
Subtotal										3,947,771		1,504,958		2,442,813		3,043,475		3,029,051

Senior Secured and Secured Credit Agreements
Bank of America⁽²⁾	09/29/20	1 Month LIBOR		1.8	%		2.7	%		500,000		354,363		145,637		183,411		183,411
Citibank⁽⁴⁾	07/12/20	1 Month LIBOR		2.3	%		3.2	%		160,000		97,357		62,643		90,160		89,231
Subtotal										660,000		451,720		208,280		273,571		272,642

Asset-specific Financing
Institutional Lender	10/09/20	1 Month LIBOR		4.2	%		5.1	%		77,000		—		77,000		112,000		109,463
Subtotal										77,000		—		77,000		112,000		109,463

Total									$	4,684,771	$	1,956,678	$	2,728,093	$	3,429,046	$	3,411,156

(1)	The principal balance of collateral for CRE debt securities includes impairments recorded at March 31, 2020.

(2)	Borrowings under secured revolving repurchase agreements and a senior secured credit agreement with a guarantee for 25% recourse from Holdco.

(3)

Borrowings under secured revolving repurchase agreements with a guarantee for 100% recourse from Holdco. Maturity Date represents the sooner of the next maturity date of the CRE debt securities secured revolving repurchase agreement, or roll-over date for the applicable underlying trade confirmation subsequent to March 31, 2020. All of the financing arrangements were extended subsequent to period end. The Goldman Sachs and Wells Fargo agreements have 30 day rolls, while the JP Morgan agreement has day-to-day rolls.

(4)	Borrowings under the secured credit agreement with a guarantee for 100% recourse.

(5)	Subsequent to March 31, 2020, the maturity date of the Morgan Stanley facility was extended to May 4, 2021.

	December 31, 2019
Financing Arrangement Secured Revolving Repurchase Agreements	Maturity Date	Index Rate	Weighted Average Credit Spread			Interest Rate			Commitment Amount		Maximum Current Availability		Balance Outstanding		Principal Balance of Collateral		Carrying Value of Collateral
Goldman Sachs⁽¹⁾	08/19/20	1 Month LIBOR		1.8	%		3.5	%	$	750,000	$	704,563	$	45,437	$	288,032	$	285,962
Wells Fargo⁽¹⁾	04/18/22	1 Month LIBOR		1.8	%		3.6	%		750,000		355,372		394,628		593,742		591,238
Barclays⁽¹⁾	08/13/22	1 Month LIBOR		1.5	%		3.3	%		750,000		318,240		431,760		542,927		540,725
Morgan Stanley⁽¹⁾	05/04/20	1 Month LIBOR		1.9	%		3.6	%		500,000		105,253		394,747		519,638		515,984
JP Morgan⁽¹⁾	08/20/21	1 Month LIBOR		1.6	%		3.3	%		400,000		181,552		218,448		300,677		295,341
US Bank⁽¹⁾	07/09/22	1 Month LIBOR		1.8	%		3.6	%		152,240		15,641		136,599		173,253		172,898
Subtotal - Loan Investments										3,302,240		1,680,621		1,621,619		2,418,269		2,402,148
Goldman Sachs⁽²⁾	01/12/20	1 Month LIBOR		0.9	%		2.7	%		81,143		—		81,143		94,629		94,644
JP Morgan⁽²⁾	01/17/20	1 Month LIBOR		0.9	%		2.6	%		475,881		—		475,881		544,105		545,080
Wells Fargo⁽²⁾	01/16/20	1 Month LIBOR		1.0	%		2.7	%		135,774		—		135,774		161,153		161,384
Royal Bank of Canada⁽²⁾	N/A	N/A	N/A			N/A				—		—		—		—		—
Subtotal - CRE Debt Securities										692,798		—		692,798		799,887		801,108
Subtotal										3,995,038		1,680,621		2,314,417		3,218,156		3,203,256

Senior Secured and Secured Credit Agreements
Bank of America⁽¹⁾	09/29/20	1 Month LIBOR		1.8			3.8			500,000		354,363		145,637		182,882		182,882
Citibank⁽³⁾	07/12/20	1 Month LIBOR		2.3			4.1			160,000		160,000		—		—		—
Subtotal										660,000		514,363		145,637		182,882		182,882

Asset-specific Financing
Institutional Lender	10/09/20	1 Month LIBOR		4.2	%		5.9	%		77,000		—		77,000		112,000		111,436
Subtotal										77,000		—		77,000		112,000		111,436

Total									$	4,732,038	$	2,194,984	$	2,537,054	$	3,513,038	$	3,497,574

(1)	Borrowings under secured revolving repurchase agreements and a senior secured credit agreement with a guarantee for 25% recourse from Holdco.

(2)

Borrowings under secured revolving repurchase agreements with a guarantee for 100% recourse from Holdco. Maturity Date represents the sooner of the next maturity date of the CRE debt securities secured revolving repurchase agreement, or roll-over date for the applicable underlying trade confirmation, subsequent to December 31, 2019. All of the financing arrangements were extended subsequent to period end.

(3)	Borrowings under the secured credit agreement include a guarantee for 100% recourse.

The following table presents the recourse and mark-to-market provisions for the Company’s financing arrangements as of March 31, 2020:

	March 31, 2020
Financing Arrangement Secured Revolving Repurchase Agreements	Maturity Date	Recourse Percentage			Basis of Margin Calls
Loan Investments
Goldman Sachs	08/19/20		25	%	Credit
Wells Fargo	04/18/22		25	%	Credit
Barclays	08/13/22		25	%	Credit
Morgan Stanley	05/04/20		25	%	Credit
JP Morgan	08/20/21		25	%	Credit and Spread
US Bank	07/09/22		25	%	Credit
CRE Debt Securities
Goldman Sachs	04/10/20		100	%	Spread
JP Morgan	04/08/20		100	%	Spread
Wells Fargo	04/19/20		100	%	Spread
Royal Bank of Canada	N/A		100	%	Spread

Senior Secured and Secured Credit Agreements
Bank of America	09/29/20		25	%	Credit
Citibank	07/12/20		100	%	N/A

Asset-specific Financing
Institutional Lender	10/09/20	N/A			N/A

The following table presents the recourse and mark-to-market provisions for the Company’s financing arrangements as of December 31, 2019:

	December 31, 2019
Financing Arrangement Secured Revolving Repurchase Agreements	Maturity Date	Recourse Percentage			Basis of Margin Calls
Loan Investments
Goldman Sachs	08/19/20		25	%	Credit
Wells Fargo	04/18/22		25	%	Credit
Barclays	08/13/22		25	%	Credit
Morgan Stanley	05/04/20		25	%	Credit
JP Morgan	08/20/21		25	%	Credit and Spread
US Bank	07/09/22		25	%	Credit
CRE Debt Securities
Goldman Sachs	01/12/20		100	%	Spread
JP Morgan	02/27/20		100	%	Spread
Wells Fargo	02/26/20		100	%	Spread
Royal Bank of Canada	N/A		100	%	Spread

Senior Secured and Secured Credit Agreements
Bank of America	09/29/20		25	%	Credit
Citibank	07/12/20		100	%	N/A

Asset-specific Financing
Institutional Lender	10/09/20	N/A			N/A

Secured Revolving Repurchase Agreements

At March 31, 2020 and December 31, 2019, the Company had six secured revolving repurchase agreements to finance its loan investing activities. Credit spreads vary depending upon the collateral type and advance rate. Assets pledged at March 31, 2020 and December 31, 2019 consisted of 60 and 60 mortgage loans, or participation interests therein, respectively. Under these secured revolving repurchase agreements, the Company transfers all of its rights, title and interest in the loans to the repurchase counterparty in exchange for cash, and simultaneously agrees to reacquire the asset at a future date for an amount equal to the cash exchanged plus an interest factor. The repurchase counterparty (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. The secured revolving repurchase agreements used to finance loan investments are 25% recourse to Holdco.

At March 31, 2020 and December 31, 2019, the Company had four secured revolving repurchase agreements to finance its CRE debt securities. The facility commitment amounts are based on the carrying value of the assets pledged. Credit spreads vary depending upon the collateral type and advance rate. At March 31, 2020, CRE debt securities pledged consisted of 37 CRE CLO investments and two CMBS investments, which included three positions with an impaired face value of $31.2 million that were sold on March 31, 2020 but did not settle until April 2, 2020, and are included in Other Assets at the consolidated balance sheet as of March 31, 2020. At December 31, 2019, CRE debt securities pledged consisted of 35 CRE CLO investments and two CMBS investments. The secured revolving repurchase agreements used to finance CRE debt securities are 100% recourse to Holdco and are considered short-term borrowings.

Each of the Company’s secured revolving repurchase agreements has “margin maintenance” provisions, which are designed to allow the repurchase lender to maintain a certain margin of credit enhancement against the assets which serve as collateral. The lender’s margin amount is typically based on a percentage of the market value of the asset and/or mortgaged property collateral; however, certain secured revolving repurchase agreements may also involve margin maintenance based on maintenance of a minimum debt yield with respect to the cash flow from the underlying real estate collateral. Market value determinations and redeterminations may be made by the repurchase lender in its sole discretion subject to certain specified parameters, which may involve the limitation or enumeration of factors which the repurchase lender may consider when determining market value. In the case of assets that serve as collateral under the Company’s secured revolving repurchase agreements secured by loans, these considerations may include credit-based factors (which are generally based on factors other than those related to the capital markets) and spread-based factors (which are generally based on changes in observable credit spreads in the market for these assets) as described more specifically in the preceding table. The market value of the assets that serve as collateral under the Company’s secured revolving repurchase agreements secured by CRE debt securities is redetermined on a daily basis. As a result, extreme short-term volatility and negative pressure in the financial markets has, and may in the future, result in the Company being required to post cash collateral with the Company’s lenders under these agreements.

During the period from March 1, 2020 to March 31, 2020, the Company received margin call notices with respect to borrowings against its CRE CLO investment portfolio aggregating $170.9 million, which were satisfied with a combination of $89.8 million of cash, cash proceeds from bond sales, and increases in market values prior to quarter-end. At March 31, 2020, unpaid margin calls totaled $19.0 million, which were satisfied in April though cash proceeds from bond sales and increases in market values.

The following table summarizes certain characteristics of the Company’s secured revolving repurchase agreements secured by commercial mortgage loans and CRE debt securities, including counterparty concentration risks, at March 31, 2020 (dollars in thousands):

	March 31, 2020
Loan Financings	Commitment Amount		UPB of Collateral		Carrying Value of Collateral⁽¹⁾		Amounts Payable⁽²⁾		Net Counterparty Exposure⁽³⁾		Percent of Stockholders' Equity			Days to Extended Maturity⁽⁴⁾
Goldman Sachs Bank	$	750,000	$	221,728	$	222,930	$	147,590	$	75,340		6.1	%		871
Wells Fargo		750,000		494,959		496,228		360,718		135,510		11.0	%		748
Barclays		750,000		742,729		742,062		589,911		152,151		12.4	%		865
Morgan Stanley Bank⁽⁴⁾		500,000		578,177		576,930		441,432		135,498		11.0	%	N/A
JP Morgan Chase Bank		400,000		294,041		290,813		220,725		70,088		5.7	%		1,237
US Bank		189,490		98,272		98,230		75,531		22,699		1.8	%		1,561
Subtotal / Weighted Average	$	3,339,490	$	2,429,906	$	2,427,193	$	1,835,907	$	591,286					932

CRE Debt Securities Financings	Commitment Amount		Impaired Face Value		Carrying Value of Collateral⁽¹⁾		Amounts Payable⁽²⁾		Net Counterparty Exposure⁽³⁾		Percent of Stockholders' Equity			Days to Extended Maturity⁽⁴⁾
Goldman Sachs Bank	$	73,366	$	59,687	$	73,667	$	73,497	$	170		0.0	%		10
JP Morgan		437,323		438,297		438,819		437,495		1,324		0.1	%		8
Wells Fargo		97,592		115,585		103,028		97,782		5,246		0.4	%		19
Royal Bank of Canada		—		—		—		—		—		—			—
Subtotal / Weighted Average	$	608,281	$	613,569	$	615,514	$	608,774	$	6,740					10

Total / Weighted Average - Loans and CRE Debt Securities	$	3,947,771	$	3,043,475	$	3,042,707	$	2,444,681	$	598,026					652

(1)

Loan amounts shown in the table include interest receivable of $12.0 million and are net of premium, discount and origination fees of $14.7 million. CRE debt securities shown in the table include interest receivable of $1.7 million and are net of premium, discount, and unrealized gains of $0.3 million.

(2)	Loan amounts shown in the table include interest payable of $1.4 million and do not reflect unamortized deferred financing fees of $8.7 million. CRE debt securities shown in the table include interest payable of $0.5 million.

(3)

Loan amounts represent the net carrying value of the commercial real estate assets sold under agreements to repurchase, including accrued interest plus any cash or assets on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest. CRE debt securities represent the net carrying value of AFS securities sold under agreements to repurchase, including accrued interest plus any cash or assets on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest.

(4)

The secured revolving repurchase agreement provided by Morgan Stanley Bank is excluded from the “Days to Extended Maturity” column because it has no limit on the maximum number of permitted extensions, subject to satisfaction of certain conditions and approvals. For borrowings secured by CRE debt securities, the extended maturity represents the sooner of the next maturity date of the CRE debt securities, the secured revolving repurchase agreement, or the roll-over date for the applicable underlying trade confirmation subsequent to March 31, 2020. These contracts typically have terms of 30 days. Subsequent to March 31, 2020, the contracts with JP Morgan were rolled day-to-day.

The following table summarizes certain characteristics of the Company’s secured revolving repurchase agreements secured by commercial mortgage loans and CRE debt securities, including counterparty concentration risks, at December 31, 2019 (dollars in thousands):

	December 31, 2019
Loan Financings	Commitment Amount		UPB of Collateral		Carrying Value of Collateral⁽¹⁾		Amounts Payable⁽²⁾		Net Counterparty Exposure⁽³⁾		Percent of Stockholders' Equity			Days to Extended Maturity⁽⁴⁾
Goldman Sachs Bank	$	750,000	$	288,032	$	289,674	$	45,900	$	243,774		16.6	%		962
Wells Fargo		750,000		593,742		594,832		395,039		199,793		13.6	%		839
Barclays		750,000		542,927		542,191		432,399		109,792		7.5	%		956
Morgan Stanley Bank⁽⁴⁾		500,000		519,638		518,048		395,356		122,692		8.4	%	N/A
JP Morgan Chase Bank		400,000		300,677		297,248		218,744		78,504		5.4	%		1,328
US Bank		152,240		173,741		173,045		136,734		36,311		2.5	%		1,652
Subtotal / Weighted Average	$	3,302,240	$	2,418,757	$	2,415,038	$	1,624,172	$	790,866					1,062

CRE Debt Securities Financings	Commitment Amount		UPB of Collateral		Carrying Value of Collateral⁽¹⁾		Amounts Payable⁽²⁾		Net Counterparty Exposure⁽³⁾		Percent of Stockholders' Equity			Days to Extended Maturity⁽⁴⁾
Goldman Sachs Bank	$	81,143	$	94,629	$	108,414	$	81,362	$	27,052		1.8	%		12
JP Morgan		475,881	$	544,105	$	546,260	$	476,307	$	69,953		4.8	%		17
Wells Fargo		135,774	$	161,153	$	148,738	$	136,021	$	12,717		0.9	%		16
Royal Bank of Canada		—		—		—		—		—		—			—
Subtotal / Weighted Average	$	692,798	$	799,887	$	803,412	$	693,690	$	109,722					16

Total / Weighted Average - Loans and CRE Debt Securities	$	3,995,038	$	3,218,644	$	3,218,450	$	2,317,862	$	900,588					685

(1)

Loan amounts shown in the table include interest receivable of $13.0 million and are net of premium, discount and origination fees of $16.7 million. CRE debt securities shown in the table include interest receivable of $2.3 million and are net of premium, discount, and unrealized gains of $1.2 million.

(2)	Loan amounts shown in the table include interest payable of $2.5 million and do not reflect unamortized deferred financing fees of $10.3 million. CRE debt securities shown in the table include interest payable of $0.9 million.

(3)

Loan amounts represent the net carrying value of the commercial real estate assets sold under agreements to repurchase, including accrued interest plus any cash or assets on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest. CRE debt securities represent the net carrying value of AFS securities sold under agreements to repurchase, including accrued interest plus any cash or assets on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest.

(4)

The secured revolving repurchase agreement provided by Morgan Stanley Bank is excluded from the “Days to Extended Maturity” column because it has no limit on the maximum number of permitted extensions, subject to satisfaction of certain conditions and approvals. For borrowings secured by CRE debt securities, the extended maturity represents the sooner of the next maturity date of the CRE debt securities, the secured revolving repurchase agreement, or the roll-over date for the applicable underlying trade confirmation, subsequent to December 31, 2019. These contracts typically have terms of 30 days.

The agreements include various financial covenants covering net worth, liquidity, recourse limitations, debt-to-equity ratio and interest coverage. The Company was in compliance with all financial covenants to the extent that balances were outstanding as of March 31, 2020 and December 31, 2019, except that, as of March 31, 2020, the Company was not in compliance with respect to the debt-to-equity ratio covenant included in certain of these agreements. This non-compliance was cured on April 2, 2020 when the Company utilized proceeds from sales of certain CRE debt securities to repay outstanding borrowings under the related secured revolving repurchase agreements. The Company received waivers from the lender under each of the applicable agreements on May 8, 2020.

The agreements also include a covenant that obligates the Company to deliver certain audited financial statements for Holdco to the lenders within 90 days, or 120 days, after each December 31. The Company was not in compliance with respect to this covenant as of March 31, 2020. This non-compliance was cured on May 6, 2020. The Company received waivers from the lender under each of the applicable agreements on May 11, 2020.

Negative impacts on the Company’s business caused by COVID-19 have and will likely continue to 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.

Senior Secured and Secured Credit Agreements

The Company has a senior secured credit agreement with Bank of America N.A. with a maximum commitment amount of $500 million. The senior secured agreement has an initial maturity of September 29, 2020 and borrowings bear interest at LIBOR plus 1.75%. At March 31, 2020, $145.6 million was outstanding under the secured credit agreement. This agreement is 25% recourse to Holdco.

The Company has a secured revolving credit agreement (the “Credit Agreement”), with Citibank, N.A. with aggregate secured borrowing capacity of up to $160.0 million, subject to borrowing base availability and certain other conditions, which the Company occasionally uses to finance originations or acquisitions of eligible loans on an interim basis until permanent financing is arranged. The Credit Agreement has an initial maturity date of July 12, 2020, and borrowings bear interest at an interest rate per annum equal to one-month LIBOR or the applicable base rate plus a margin of 2.25%. The initial advance rate on borrowings under the Credit Agreement with respect to individual pledged assets is 70% and declines over the borrowing term of up to 90 days, after which borrowings against an asset must be repaid. At March 31, 2020, $62.6 million in connection with two pledged loans was outstanding on the Credit Agreement. This agreement is 100% recourse to Holdco.

The agreements include various financial covenants covering net worth, liquidity, recourse limitations, debt-to-equity ratio and interest coverage. The Company was in compliance with all covenants to the extent that balances were outstanding as of March 31, 2020 and December 31, 2019, except that, as of March 31, 2020, the Company was not in compliance with respect to the debt-to-equity ratio covenant included in certain of these agreements. This non-compliance was cured on April 2, 2020 when the Company utilized proceeds from sales of certain CRE debt securities to repay outstanding borrowings under the related secured revolving repurchase agreements. The Company received waivers from the lender under each of the applicable agreements on May 8, 2020.

The agreements also include a covenant that obligates the Company to deliver certain audited financial statements for Holdco to the lenders within 90 days, or 120 days, after each December 31. The Company was not in compliance with respect to this covenant as of March 31, 2020. This non-compliance was cured on May 6, 2020. The Company received waivers from the lender under each of the applicable agreements on May 11, 2020.

Negative impacts on the Company’s business caused by COVID-19 have and will likely continue to 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.

Asset-Specific Financings

As of March 31, 2020 and December 31, 2019, the Company had one asset-specific financing arrangement to finance one of its loan investments.

On April 2, 2019, the Company entered into an asset-specific financing with an institutional lender that is secured by one loan held for investment. The asset-specific financing does not provide for additional advances. The current initial maturity of this agreement is October 9, 2020. As of March 31, 2020, the asset-specific financing principal balance is $77.0 million and bears interest at LIBOR plus 4.2%.

Schedule of Maturities

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Schedule of Maturities

(7) Schedule of Maturities

The future principal payments for the five years subsequent to March 31, 2020 and thereafter are as follows (in thousands):

	Secured revolving repurchase agreements			Collateralized loan obligations		Senior secured and secured credit agreements		Asset-specific financing
2020	$	1,357,747	⁽¹⁾	$	452,481	$	208,280	$	77,000
2021		422,933			745,896		—		—
2022		662,133			563,845		—		—
2023		—			62,299		—		—
2024		—			—		—		—
Thereafter		—			—		—		—
Total	$	2,442,813		$	1,824,521	$	208,280	$	77,000

(1)	A secured revolving purchase agreement with outstanding borrowings of $441.4 million at March 31, 2020 was extended on May 4, 2020 through May 4, 2021.

The scheduled maturities for the investment grade bonds issued by TRTX 2018-FL2 and TRTX-2019 FL3 are based upon the initial maturity dates of the underlying loans contributed to the issuer and co-issuer on the closing date of each issuance, without giving effect to replacement loans contributed to either trust during the two-year reinvestment period of each CRE CLO.

Fair Value Measurements

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurements

(8) Fair Value Measurements

The Company’s consolidated balance sheet includes Level I fair value measurements related to cash equivalents, restricted cash, accounts receivable, and accrued liabilities. At March 31, 2020, the Company had $97.4 million invested in money market funds with original maturities of less than 90 days. The consolidated balance sheet also includes Loans Held for Investment, the assets and liabilities of TRTX 2018-FL2 and TRTX 2019-FL3 (as of March 31, 2020 and December 31, 2019), and secured financing arrangements that are considered Level III fair value measurements that are not measured at fair value on a recurring basis but are subject to fair value adjustments utilizing the fair value of the underlying collateral when there is evidence of impairment and when the loan is dependent solely on the collateral for payment of principal and interest. The Company had no non-recurring fair value items as of December 31, 2019.

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):

	March 31, 2020
			Fair Value
	Carrying Value		Level I		Level II		Level III
Financial Assets
Available for sale CRE Debt Securities	$	604,801	$	604,801	$	—	$	—
Loans Held for Investment		5,020,695		—		—		4,983,304
Financial Liabilities
Collateralized Loan Obligations		1,812,052		—		—		1,778,165
Secured Financing Arrangements		2,718,348		—		—		2,652,964

	December 31, 2019
			Fair Value
	Carrying Value		Level I		Level II		Level III
Financial Assets
Available for sale CRE Debt Securities	$	787,552	$	—	$	787,552	$	—
Loans Held for Investment		4,980,389		—		—		5,004,379
Financial Liabilities
Collateralized Loan Obligations		1,806,428		—		—		1,806,428
Secured Financing Arrangements		2,525,128		—		—		2,525,128

Loans Held for Investment, Collateralized Loan Obligations, and Secured Financing Arrangements are not carried at fair value on a recurring basis. See additional disclosure related to the fair value of AFS Debt Securities in Note 4. Level III fair values were 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 a market spread that was added to the one-month LIBOR forward curve. CRE debt securities fair values within the fair value hierarchy of ASC 820-10 were Level I at March 31, 2020 and Level II at December 31, 2019. At March 31, 2020, the CRE debt securities fair values on which the impairment charge was determined were the actual prices at which securities owned as of March 31, 2020 were sold in April 2020. At December 31, 2019, the CRE debt securities fair values were based upon multiple market, broker, counterparty or pricing services quotations, which provide valuation estimates based upon reasonable market order indications. The Company reviews for reasonableness and consistency the fair value quotations, which are subject to significant variability based on market conditions, such as interest rates, credit spreads and market liquidity. There were no transfers of financial assets or liabilities within the fair value hierarchy during the year ended December 31, 2019.

At March 31, 2020, the estimated fair value of Loans Held for Investment was $5.0 billion, or $37.4 million less than carrying value, due to an increase during March 2020 in credit spreads on transitional first mortgage loans due primarily to the COVID-19 pandemic. At December 31, 2019, the estimated fair value of Loans Held for Investment was $5.0 billion, which approximated carrying value, because contractual loan credit spreads reflected then-current market terms. The weighted average gross spread at March 31, 2020 and December 31, 2019 was 3.41% and 3.48%, respectively. The weighted average years to maturity at March 31, 2020 and December 31, 2019 was 3.7 years and 3.8 years, respectively, assuming full extension of all loans.

At March 31, 2020, the estimated fair value of the secured financing agreements was $1.8 billion, or $33.9 million less than carrying value, due to an increase during March 2020 in credit spreads on similar financing arrangements due to the COVID-19 pandemic. At December 31, 2019, the carrying value of the secured financing agreements approximated fair value as the then-current borrowing spreads reflected market terms. At March 31, 2020, the estimated fair value of the Collateralized Loan Obligation liabilities was $2.7 billion, or $65.4 million less than carrying value, due to an increase during March 2020 in credit spreads on these bonds observed in limited secondary trading activity in TRTX-issued CRE CLO bonds due to the COVID-19 pandemic. At December 31, 2019, the carrying value of the assets and liabilities of TRTX 2019-FL3 and TRTX 2018-FL2 approximated fair value as then-current lending and borrowing spreads reflected market terms.

Income Taxes

3 Months Ended

Mar. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

(9) Income Taxes

The Company indirectly owns 100% of the equity of multiple taxable REIT subsidiaries (collectively “TRSs”), including certain of its TRTX 2018-FL2 and TRTX 2019-FL3 subsidiaries. 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 2016 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 March 31, 2020 and December 31, 2019, based on the Company’s evaluation, there is no reserve for any uncertain income tax positions.

The Company’s policy is to classify interest and penalties associated with underpayment of U.S. federal and state income taxes, if any, as a component of general and administrative expense on its consolidated statements of income and comprehensive income. For the three months ended March 31, 2020, the Company did not have interest or penalties associated with the underpayment of any income taxes.

For the three months ended March 31, 2020 and 2019, the Company incurred no federal, state or local tax relating to its TRSs. For the three months ended March 31, 2020 and 2019, the Company recognized $0.1 million and $0.2 million, respectively, of federal, state and local tax expense. At March 31, 2020 and 2019, the Company’s effective tax rate was 0.0% and 0.8%, respectively.

As of March 31, 2020 and December 31, 2019, no deferred income tax assets or liabilities were recorded for the operating activities of the Company’s TRSs.

From March 23, 2020 to March 31, 2020, the Company sold ten separate CRE debt securities with an aggregate face value of $179.3 million, generating gross sales proceeds of $143.1 million. After retiring $141.0 million of repurchase financing and generating net cash proceeds of $2.2 million, the Company recorded aggregate losses from these sales of $36.2 million. These losses are expected to be available to offset any capital gains of the Company in 2020 and, to the extent those capital losses exceed the Company’s capital gains for 2020, such losses would be available to be carried forward to offset capital gains in future years. The Company does not expect these losses to reduce the amount that the Company will be required to distribute under the requirement that the Company distribute to the Company’s 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 in order to continue to qualify as a REIT. For information regarding the tax consequences of certain sales of CRE securities subsequent to March 31, 2020, see Note 16.

Related Party Transactions

3 Months Ended

Mar. 31, 2020

Related Party Transactions

(10) 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. 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, as amended, 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” means the net income (loss) attributable to the holders of the Company’s common stock and Class A common stock 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, including the allowance for credit losses, 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 Incurred and Paid for the Three Months ended March 31, 2020 and 2019

For the three months ended March 31, 2020 and 2019, the Company incurred and paid the following management fees and incentive management fees pursuant to the Management Agreement (dollars in thousands):

	Three Months Ended March 31
	2020		2019
Management Agreement fees incurred	$	5,000	$	6,508
Management Agreement fees paid		7,252		6,100

Management fees and incentive management fees included in payable to affiliates on the consolidated balance sheets at March 31, 2020 and December 31, 2019 are $5.0 million and $7.3 million, respectively. The Manager has agreed to defer payment of the base management fee and incentive management fee due as of March 31, 2020, which aggregates approximately $5.0 million, to July 6, 2020.

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 (1) the Manager’s personnel serving as the Company’s chief financial officer based on the percentage of his or her time spent managing the Company’s affairs and (2) other corporate finance, tax, accounting, internal audit, legal risk management, operations, compliance and other non-investment personnel of the Manager or its affiliates who spend all or a portion of their time managing the Company’s affairs, based on the percentage of time devoted by such personnel to the Company’s and the Company’s subsidiaries’ affairs. For the three months ended March 31, 2020, the Manager incurred $0.3 million of expenses that were subject to reimbursement by the Company 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 March 31, 2020, $2.3 million remained outstanding and payable to the Manager or its affiliates for third party expenses that were incurred on behalf of the Company. As of March 31, 2019, there were no amounts outstanding that were reimbursable by the Company to the Manager.

All expenses due and payable to the Manager are reflected in the respective expense category of the consolidated statements of income and comprehensive income or consolidated balance sheets based on the nature of the item.

Earnings per Share

3 Months Ended

Mar. 31, 2020

Earnings Per Share [Abstract]

Earnings per Share

(11) Earnings per Share

The Company calculates its basic and diluted earnings per share using the two-class method for all periods presented, as the unvested restricted shares of its common stock granted to certain current and former employees 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 and Class A common stock, including participating in any dividends, and therefore have been included in the Company’s basic and diluted earnings per share calculation. For the three months ended March 31, 2020 and 2019, $0.3 million and $0.1 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 13 for details).

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

	Three Months Ended March 31,
	2020			2019
Net Income (Loss) Attributable to TPG RE Finance Trust, Inc.	$	(232,793	)	$	28,409
Participating Securities' Share in Earnings (Loss)		(268	)		(141	)
Net Income (Loss) Attributable to Common Stockholders	$	(233,061	)	$	28,268
Weighted Average Common Shares Outstanding, Basic and Diluted		76,465,322			68,294,736
Per Common Share Amount, Basic and Diluted	$	(3.05	)	$	0.42

Stockholders' Equity

3 Months Ended

Mar. 31, 2020

Stockholders Equity Note [Abstract]

Stockholders' Equity

(12) Stockholders’ Equity

Conversion of Class A Shares

Between January 22, 2020 and January 24, 2020, the Company received requests to convert all of the outstanding shares of the Company’s Class A common stock into shares of the Company’s common stock. Accordingly, all of the outstanding shares of the Company’s Class A common stock were retired and returned to the authorized but unissued shares of Class A common stock of the Company, and the holders of shares of the Class A common stock were issued an aggregate of 1,136,665 shares of the Company’s common stock. On February 14, 2020, the Company filed Articles Supplementary with the State Department of Assessments and Taxation of Maryland to reclassify and designate all 2,500,000 authorized but unissued shares of the Company’s Class A common stock as additional shares of undesignated common stock of the Company. The Articles Supplementary became effective upon filing on February 14, 2020. As a result, as of March 31, 2020, there are no shares of the Company’s Class A common stock authorized or outstanding.

Equity Distribution Agreement

On March 7, 2019, the Company and the Manager entered into an equity distribution agreement with each of Citigroup Global Markets Inc., J.P. Morgan Securities LLC, JMP Securities LLC, Wells Fargo Securities, LLC and TPG Capital BD, LLC (each a “Sales Agent” and, collectively, the “Sales Agents”) relating to the issuance and sale by the Company of shares of its common stock pursuant to a continuous offering program. In accordance with the terms of the equity distribution agreement, the Company may, at its discretion and from time to time, offer and sell shares of its common stock having an aggregate gross sales price of up to $125.0 million through the Sales Agents, each acting as the Company’s agent. The offering of shares of the Company’s common stock pursuant to the equity distribution agreement will terminate upon the earlier of (1) the sale of shares of the Company’s common stock subject to the equity distribution agreement having an aggregate gross sales price of $125.0 million and (2) the termination of the equity distribution agreement by the Sales Agents or the Company at any time as set forth in the equity distribution agreement.

Each Sales Agent will be entitled to commissions in an amount not to exceed 1.75% of the gross sales prices of shares of the Company’s common stock sold through it, as the Company’s agent. For the three months ended March 31, 2020, the Company sold 0.6 million shares of common stock at a weighted average price per share of $20.53 and gross proceeds of $12.9 million. The Company paid commissions totaling $0.2 million. The Company used the proceeds from the offering to originate commercial real estate loans and acquire CRE debt securities. For the three months ended March 31, 2019, no shares of common stock were sold pursuant to the equity distribution agreement.

2019 Underwritten Offering

In March 2019, the Company completed a common stock offering of 6.0 million shares at a price to the underwriters of $19.80 per share, generating net proceeds of $118.8 million, after underwriting discounts. Pursuant to the terms of the underwriting agreement that the Company entered into with Morgan Stanley & Co. LLC, as representative of the underwriters, on April 12, 2019, the underwriters exercised in full their option to purchase 900,000 additional shares of common stock (the “Option Shares”). As a result, the Company issued and sold 900,000 Option Shares to the underwriters on April 16, 2019 and generated additional net proceeds, before transaction expenses, of approximately $17.4 million. The Manager reimbursed offering costs of $0.3 million. The Company used net proceeds from the offering to originate commercial real estate loans and acquire CRE debt securities.

10b5-1 Purchase Plan

The Company entered into an agreement and related amendments (the “10b5-1 Purchase Plan”) with Goldman Sachs & Co. LLC, as the Company’s agent, to buy in the open market up to $35.0 million in shares of the Company’s common stock in the aggregate during the period beginning on or about August 21, 2017. On August 1, 2018, the Company’s Board of Directors authorized the Company to extend the repurchase period for the remaining capital committed to the 10b5-1 Purchase Plan to February 28, 2019. No other changes to the terms of the 10b5-1 Purchase Plan were authorized.

The 10b5-1 Purchase Plan required Goldman Sachs & Co. LLC to purchase for the Company shares of the Company’s common stock when the market price per share is below the threshold price specified in the 10b5-1 Purchase Plan which is based on the Company’s book value per common share. During the three months ended March 31, 2019, the Company repurchased 2,324 shares of common stock, at a weighted average price of $18.27 per share, for total consideration (including commissions and related fees) of $0.4 million. The 10b5-1 Purchase Plan expired by its terms on February 28, 2019.

Issuance of Sub-REIT Preferred Stock

In January 2019, a subsidiary of the Company issued 625 shares of Series A preferred stock of which 500 shares were retained by the Company and 125 shares were sold to third party investors for proceeds of $0.1 million. The 500 preferred shares of Series A preferred stock retained by the Company are eliminated in the Company’s consolidated statements of changes in equity.

Dividends

Upon the approval of the Company’s Board of Directors, dividends are accrued by the Company. Dividends are paid first to the holders of the Company’s Series A preferred stock at the rate of 12.5% of the total $0.001 million liquidation preference per annum plus all accumulated and unpaid dividends thereon, and then to the holders of the Company’s common stock and Class A common stock. The Company intends to distribute each year substantially all of its taxable income to its stockholders to comply with the REIT provisions of the Internal Revenue Code of 1986, as amended.

On March 17, 2020, the Company’s Board of Directors declared and approved a dividend for the first quarter of 2020 in the amount of $0.43 per share of common stock or $33.2 million in the aggregate, which dividend was payable on April 24, 2020 to holders of record of the Company’s common stock as of March 27, 2020. On March 23, 2020, the Company announced the deferral until July 14, 2020 of the payment of its declared first quarter dividend to stockholders of record as of June 15, 2020. The Board of Directors will determine whether to pay dividends, including the dividend declared in the first quarter of 2020, entirely in cash, or in a combination of stock and cash based on facts and circumstances at the time such decisions are made.

On March 19, 2019, the Company declared and approved a dividend for the first quarter of 2019 in the amount of $0.43 per share of common stock and Class A common stock, or $31.6 million in the aggregate, which was paid on April 25, 2019 to holders of record of our common stock and Class A common stock as of March 29, 2019.

As of March 31, 2020 and December 31, 2019, $33.2 million and $32.8 million, respectively, remain unpaid and are reflected in dividends payable on the Company’s consolidated balance sheets.

Share-based Incentive Plan

3 Months Ended

Mar. 31, 2020

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Share-based Incentive Plan

(13) Share-based Incentive Plan

The Company does not have any employees as it is externally managed by the Manager. However, as of March 31, 2020, 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 share-based instruments.

The Company’s Board of Directors has adopted, and the Company’s stockholders have approved, the TPG RE Finance Trust, Inc. 2017 Equity Incentive Plan (the “Incentive Plan”). The Incentive Plan provides for the grant of equity-based awards to the Company’s, and its affiliates’, directors, officers, employees (if any) and consultants, and the members, officers, directors, employees and consultants of our Manager or its affiliates, as well as to our Manager and other entities that provide services to us and our affiliates and the employees of such entities. The total number of shares of common stock or long term incentive plan (“LTIP”) units that may be awarded under the Incentive Plan is 4,600,463. The Incentive Plan will automatically expire on the tenth anniversary of its effective date, unless terminated earlier by the Company’s Board of Directors.

Generally, the shares vest in installments over a four-year period, pursuant to the terms of the award and the Incentive Plan. The following table presents the number of shares associated with outstanding awards that will vest over the next four years. Shares presented for the current year, 2020, include shares which have vested during the period from January 1, 2020 to March 31, 2020.

Vesting Year	Shares of Common Stock
2020		229,521
2021		229,522
2022		102,389
2023		62,574
		624,006

As of March 31, 2020, total unrecognized compensation cost relating to unvested share-based compensation arrangements was $10.3 million. This cost is expected to be recognized over a weighted average period of 1.4 years from March 31, 2020. For the three months ended March 31, 2020 and 2019, the Company recognized $1.4 million and $0.6 million, respectively, of share-based compensation expense.

Commitments and Contingencies

3 Months Ended

Mar. 31, 2020

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

(14) Commitments and Contingencies

Impact of COVID-19

Due to the current COVID-19 pandemic in the United States and globally, the Company’s borrowers and their tenants, the properties securing the Company’s investments, and the economy as a whole have been, and will continue to be, adversely impacted. The magnitude and duration of COVID-19 and its impact on the Company’s borrowers and their tenants, cash flows and future results of operations could be significant and will largely depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of COVID-19, the success of actions taken to contain or treat the pandemic, and reactions by consumers, companies, governmental entities and capital markets. The prolonged duration and impact of COVID-19 has and could further materially disrupt the Company’s business operations and impact its financial performance.

Unfunded Commitments

As part of its lending activities, the Company commits to certain funding obligations which are not advanced at closing and that have not been recognized in the Company’s financial statements. These commitments to extend credit are made as part of the Company’s lending activities on loans the Company intends to hold in its portfolio of loans held for investment. The aggregate amount of these unrecognized unfunded loan commitments existing at March 31, 2020 and December 31, 2019 was $650.9 million and $630.6 million, respectively.

The Company recorded an allowance for credit losses on loan commitments that are not unconditionally cancellable by the Company of $7.3 million which is included in accrued expenses and other liabilities on the Company’s consolidated balance sheets at March 31, 2020.

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 March 31, 2020 and December 31, 2019, the Company was not involved in any material legal proceedings and has not recorded an accrued liability for loss contingencies.

Concentration of Credit Risk

3 Months Ended

Mar. 31, 2020

Risks And Uncertainties [Abstract]

Concentration of Credit Risk

(15) Concentration of Credit Risk

Property Type

A summary of the loan portfolio by property type as of March 31, 2020 and December 31, 2019 based on total loan commitment and current unpaid principal balance (“UPB”) is as follows (dollars in thousands):

	March 31, 2020
Property Type	Loan Commitment		Unfunded Commitment		% of Loan Commitment			Loan UPB		% of Loan UPB
Office	$	2,808,164	$	452,385		48.7	%	$	2,355,779		46.1	%
Multifamily		1,361,596		89,834		23.6			1,271,762		24.8
Hotel		752,293		33,390		13.1			718,903		14.1
Mixed Use		604,993		71,475		10.5			533,518		10.4
Condominium		91,651		1,524		1.6			90,127		1.8
Retail		33,000		2,281		0.6			30,719		0.6
Other		112,000		—		1.9			112,000		2.2
Total	$	5,763,697	$	650,889		100.0	%	$	5,112,808		100.0	%

	December 31, 2019
Property Type	Loan Commitment		Unfunded Commitment		% of Loan Commitment			Loan UPB		% of Loan UPB
Office	$	2,925,749	$	438,800		52.0	%	$	2,486,949		49.9	%
Multifamily		1,104,946		69,061		19.6			1,035,885		20.7
Hotel		752,293		40,088		13.4			712,205		14.2
Mixed-Use		604,993		78,835		10.7			526,158		10.5
Condominium		95,784		1,524		1.7			94,260		1.9
Retail		33,000		2,281		0.6			30,719		0.6
Other		112,000		—		2.0			112,000		2.2
Total	$	5,628,765	$	630,589		100.0	%	$	4,998,176		100.0	%

Geography

All of the Company’s loans held for investment are secured by properties within the United States. The geographic composition of loans held for investment based on total loan commitment and current UPB as of March 31, 2020 and December 31, 2019 is as follows (dollars in thousands):

	March 31, 2020
Geographic Region	Loan Commitment		Unfunded Commitment		% of Loan Commitment			Loan UPB		% of Loan UPB
East	$	2,474,224	$	260,332		42.9	%	$	2,213,892		43.2	%
South		1,452,199		134,718		25.3			1,317,481		25.8
West		1,320,823		184,484		22.9			1,136,339		22.2
Midwest		428,351		67,810		7.4			360,541		7.1
Various		88,100		3,545		1.5			84,555		1.7
Total	$	5,763,697	$	650,889		100.0	%	$	5,112,808		100.0	%

	December 31, 2019
Geographic Region	Loan Commitment		Unfunded Commitment		% of Loan Commitment			Loan UPB		% of Loan UPB
East	$	2,182,659	$	214,938		38.7	%	$	1,967,721		39.4	%
South		1,342,794		124,939		23.9			1,217,855		24.4
West		1,397,431		201,690		24.8			1,195,741		23.9
Midwest		482,804		83,178		8.6			399,626		8.0
Various		223,077		5,844		4.0			217,233		4.3
Total	$	5,628,765	$	630,589		100.0	%	$	4,998,176		100.0	%

Category

A summary of the loan portfolio by category as of March 31, 2020 and December 31, 2019 based on total loan commitment and current UPB is as follows (dollars in thousands):

	March 31, 2020
Loan Category	Loan Commitment		Unfunded Commitment		% of Loan Commitment			Loan UPB		% of Loan UPB
Bridge	$	1,974,017	$	56,756		34.2	%	$	1,917,261		37.5	%
Light Transitional		1,962,801		219,359		34.1			1,743,442		34.1
Moderate Transitional		1,791,879		359,774		31.1			1,432,105		2.8
Construction		35,000		15,000		0.6			20,000		0.4
Total	$	5,763,697	$	650,889		100.0	%	$	5,112,808		100.0	%

	December 31, 2019
Loan Category	Loan Commitment		Unfunded Commitment		% of Loan Commitment			Loan UPB		% of Loan UPB
Bridge	$	2,001,962	$	49,057		35.6	%	$	1,952,905		39.1	%
Light Transitional		1,890,762		219,138		33.6			1,671,624		33.4
Moderate Transitional		1,701,041		347,394		30.2			1,353,647		27.1
Construction		35,000		15,000		0.6			20,000		0.4
Total	$	5,628,765	$	630,589		100.0	%	$	4,998,176		100.0	%

Loan commitments represent principal commitments made by the Company at March 31, 2020 and December 31, 2019, respectively.

Impact of COVID-19 on Concentration of Credit Risk

The potential negative impacts on the Company’s business caused by COVID-19 may be heightened by the fact that the Company is not required to observe specific diversification criteria, which means that the Company’s investments may be concentrated in certain property types, geographical areas or loan categories that are more adversely affected by COVID-19 than other property types, geographical areas or loan categories. For example, certain of the loans in the Company’s loan portfolio are secured by hotels and retail properties. Federal and state mandates implemented to control the spread of COVID-19, including restrictions on freedom of movement and business operations such as travel bans, border closings, business closures, quarantines and shelter-in-place orders, have and are likely to continue to negatively impact the hotel and retail industries, which could adversely affect the Company’s investments in assets secured by properties that operate in these industries.

Subsequent Events

3 Months Ended

Mar. 31, 2020

Subsequent Events [Abstract]

Subsequent Events

(16) Subsequent Events

The following events occurred subsequent to March 31, 2020

Senior Mortgage Loan Activity

Subsequent to March 31, 2020, the Company originated no new loans and received no full loan repayments.

Sale of CRE Debt Securities

From April 1, 2020 to April 29, 2020, the Company sold 39 separate CRE debt securities with an aggregate face value of $782.0 million generating gross sales proceeds of $614.8 million. After retiring $581.7 million of repurchase financing and generating net cash proceeds of $33.1 million, the Company recorded aggregate losses from these sales of $167.3 million, equal to the impairment charge described herein. Because the Company determined prior to March 31, 2020 that it intended to sell these investments, the Company recorded an impairment charge at March 31, 2020 of $167.3 million, offset by a small gain on one bond sold, based on the actual prices at which the investments were sold during April 2020. These losses are expected to be available to offset any capital gains of the Company in 2020 and, to the extent those capital losses exceed the Company’s capital gains for 2020, such losses would be available to be carried forward to offset capital gains in future years. The Company does not expect these losses to reduce the amount that the Company will be required to distribute under the requirement that the Company distribute to the Company’s 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 in order to continue to qualify as a REIT.

Covenant Compliance

As discussed in Note 6, certain of the Company’s outstanding borrowings are subject to certain financial covenants, including covenants governing the Company’s debt-to-equity ratio. As of March 31, 2020, the Company was not in compliance with respect to the debt-to-equity ratio covenant included in certain of these agreements. This non-compliance was cured on April 2, 2020 when the Company utilized proceeds from sales of certain CRE debt securities to repay outstanding borrowings under the related secured revolving repurchase agreements. The Company received waivers from the lender under each of the applicable agreements on May 8, 2020.

The agreements also include a covenant that obligates the Company to deliver certain audited financial statements for Holdco to the lenders within 90 days, or 120 days, after each December 31. The Company was not in compliance with respect to this covenant as of March 31, 2020. This non-compliance was cured on May 6, 2020. The Company received waivers from the lender under each of the applicable agreements on May 11, 2020.

Management Fee Payment Deferral

On April 7, 2020, the Manager agreed to extend to July 6, 2020 the Company’s obligation to pay the $5.0 million base management fee accrued and payable to the Manager for the quarter ended March 31, 2020. The Company was not subject to, and did not accrue, an incentive fee for the quarter ended March 31, 2020.

Deed in Lieu of Foreclosure

On April 29, 2020, the borrower under a first mortgage loan with a commitment amount of $90.0 million and an unpaid principal balance of $81.4 million, both as of March 31, 2020, informed the Company that it intended to negotiate with the Company an agreement under which it would convey the property securing the Company’s loan to the Company in order to satisfy the loan and avoid foreclosure proceedings. The Company is currently evaluating its rights, remedies and avenues of enforcement. The loan has been paid current through April 1, 2020 with a funded interest reserve sufficient to pay interest through June 2020. At this time, no reliable estimate can be made of the impact of this event on the results of operations, liquidity, or consolidated financial statements of the Company. Although an allowance for credit losses from this loan is included in the consolidated financial statements included in this Form 10-Q, the Company may be adversely affected by this and other similar events in the future.

Extension of Secured Revolving Repurchase Agreement

On May 4, 2020, the Company and Morgan Stanley extended for a term of one year, through May 4, 2021, the existing secured revolving repurchase agreement. This facility has no limit on the maximum number of permitted extensions, subject to the satisfaction of certain conditions and approvals.

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

Basis of Presentation

The interim consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The interim 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.

Risks and Uncertainties

The recent outbreak of the coronavirus pandemic (“COVID-19”) around the globe continues to adversely impact global commercial activity and has contributed to significant volatility in financial markets. The impact of the outbreak has been rapidly evolving around the globe, with several countries taking drastic measures to limit the spread of the virus by instituting quarantines or lockdowns and imposing travel restrictions. Such actions are creating significant disruptions to global supply chains, and adversely impacting several industries, including but not limited to, airlines, hospitality, retail and the broader real estate industry.

The major disruption caused by COVID-19 brought to a halt most economic activity in most of the United States resulting in a significant increase in unemployment claims and will likely result in a significant decline in the U.S. Gross Domestic Product.

COVID-19 could have a continued and prolonged adverse impact on economic and market conditions and trigger a period of global economic slowdown which has and could continue to have a material adverse effect on the Company’s results and financial condition.

The full impact of COVID-19 on the real estate industry, the credit markets and consequently on the Company’s financial condition and results of operations is uncertain and cannot be predicted at the current time as it depends on several factors beyond the control of the Company including, but not limited to (i) the uncertainty around the severity and duration of the outbreak, (ii) the effectiveness of the United States public health response, (iii) the pandemic’s impact on the U.S. and global economies, (iv) the timing, scope and effectiveness of additional governmental responses to the pandemic, (v) the timing and speed of economic recovery, including the availability of a treatment or vaccination for COVID-19 and (vi) the negative impact on the Company’s borrowers, real estate values and cost of capital.

Reclassification

Reclassifications

Certain amounts in the Company’s prior period consolidated financial statements have been reclassified to conform to the presentation of the Company’s current period consolidated financial statements. These reclassifications had no effect on the Company’s previously reported net income. These reclassifications include the separate presentation of stock compensation on the consolidated statements of income and comprehensive income, and the disaggregation of proceeds and payments from secured financing agreements secured by loans and secured financing agreements secured by CRE debt securities on the consolidated statements of cash flows.

Use of Estimates

The preparation of the interim 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 interim consolidated financial statements. Actual results could differ from management’s estimates, and such differences could be material. Significant estimates made in the interim consolidated financial statements include, but are not limited to: impairment; adequacy of provisions for credit losses; and valuation of financial instruments. Actual amounts and values as of the balance sheet dates may be materially different than the amounts and values reported due to the inherent uncertainty in the estimation process and the limited availability of observable pricing inputs due to market dislocation resulting from the COVID-19 pandemic. 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.

Principles of Consolidation

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

At each reporting date, the Company reconsiders its primary beneficiary conclusion to determine if its obligation to absorb losses of, or its rights to receive benefits from, the VIE could potentially be more than insignificant, and will consolidate or not consolidate accordingly (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 credit impairment, if any. The objective of the interest method is to arrive at periodic interest income including recognition of fees and costs at a constant effective yield. Premiums, discounts, 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 income on a straight-line basis, when it approximates the interest method, over the related extension or modification period. Exit fees are accreted into 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. Prepayment penalties from borrowers are recognized as interest income when received. Certain of the Company’s loan investments have in the past, and will likely in the future, provide for additional interest based on the borrower’s operating cash flow or appreciation of the underlying collateral. Such amounts are considered contingent interest and are reflected as interest income only upon certainty of collection. Certain of the Company’s loan investments have in the past, and will likely 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 a collection reserve is recorded or the PIK interest is written off.

Troubled Debt Restructurings

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 any cumulative charge-offs, interest applied to principal (for loans accounted for using the cost recovery method), unamortized premiums, discounts, unamortized net 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. Accrued but not yet collected interest is separately reported as accrued interest receivable on the Company’s consolidated balance sheets.

When loans are designated as held for investment, the Company’s intent is to hold the loans for the foreseeable future or until maturity or repayment. If subsequent changes in real estate or capital markets occur, the Company may change its intent or its assessment of its ability to hold these loans. Once a determination has been made to sell such loans, they are immediately transferred to loans held for sale and carried at the lower of cost or fair value.

Non-Accrual Loans

Loans are placed on non-accrual status when the full and timely collection of principal and interest is doubtful, generally when the loan becomes 90 days or more past due for principal and interest. The Company considers an account past due when an obligor fails to pay substantially all (defined as 90%) of the scheduled payment by the due date. In each case, the period of delinquency is based on the number of days payments are contractually past due. 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. Payments received on non-accrual loans are accounted for using either the cash method, or the cost recovery method which applies any cash collected to first reduce the principal balance. 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 Company’s external manager, TPG RE Finance Trust Management, L.P., a Delaware limited partnership (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.

A loan is accounted for and reported as a troubled debt restructuring (“TDR”) when, for economic or legal reasons, the Company grants a concession to a borrower experiencing financial difficulty that we would not otherwise consider. The Company does not consider as a concession a restructuring that includes an insignificant delay in payment. A delay may be considered insignificant if the payments subject to the delay are insignificant relative to the unpaid principal balance of the loan or collateral value, and the contractual amount due, or the delay in timing of the restructured payment period, is insignificant relative to the frequency of payments, the debt’s original contractual maturity or original expected duration.

TDRs that are performing and on accrual status as of the date of the modification remain on accrual status. TDRs that are nonperforming as of the date of modification usually remain on non-accrual status until the prospect of future payments in accordance with the modified loan agreement is reasonably assured, which is generally demonstrated when the borrower maintains compliance with the restructured terms for a predetermined period, normally at least six months. TDRs with temporary below-market concessions remain designated as a TDR regardless of the accrual or performance status until the loan is paid off. However, if the TDR loan has been modified in a subsequent restructure with market terms and the borrower is not currently experiencing financial difficulty, then the loan may be de-designated as a TDR.

Allowance for Credit Losses for Loans Held for Investment

The allowance for credit losses is measured under the Current Expected Credit Loss (“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 inherent in 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, which is reported in earnings in the consolidated statements of income and comprehensive income and reduced by the charge-off of loan amounts, net of recoveries and additions related to purchased credit-deteriorated (“PCD”) assets, if relevant. The allowance for credit losses includes a modeled component and an individually-assessed component. 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 uncollectable 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 sector 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 and 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 sensitive to interest rate changes, general economic conditions, liquidity, LTV ratio, and availability of replacement short-term or long-term financing. The loans in the Company’s commercial mortgage loan portfolio are secured by collateral in the following property types: office; multifamily; hotel; mixed-use; condominium; retail; and land.

Quarterly, the Company evaluates the risk of all loans and assigns a risk rating based on a variety of factors, grouped as follows: (i) loan and credit structure, including the as-is LTV and structural features; (ii) quality and stability of real estate value and operating cash flow, including debt yield, property type, dynamics of the geography, property type and local market, physical condition, stability of cash flow, leasing velocity and quality and diversity of tenancy; (iii) performance against underwritten business plan; and (iv) quality, experience and financial condition of sponsor, borrower and guarantor(s). Based on a 5-point scale, the Company’s loans are rated “1” through “5,” from least risk to greatest risk, respectively, which ratings are defined as follows:

1-

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

2-

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

3-

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

4-

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

5-

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

The Company generally assigns a risk rating of “3” to all newly originated loan investments during a most recent quarter, except in the case of specific circumstances warranting an exception.

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 an entity that owns real estate. As a result, the Company regularly evaluates on a loan-by-loan basis the extent and impact of any credit deterioration associated with the performance and/or value of the underlying collateral property, and the financial and operating capability of the borrower and its sponsor. The Company also evaluates the financial strength of loan guarantors, if any, and the borrower’s competency in managing and operating the property or properties. In addition, the Company considers the overall economic environment, real estate sector, and geographic sub-market in which the borrower operates. Such 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 credit spreads for refinancing and (v) other market data.

Due to the COVID-19 pandemic and the dislocation it has caused to the national economy, the commercial real estate markets, and the capital markets, the Company’s ability to estimate key inputs for estimating the allowance for credit losses has been materially and adversely impacted. Key inputs to the estimate include, but are not limited to, LTV, debt service coverage ratio, 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 observable transactions involving the sale or financing of commercial properties. Estimates made by management are necessarily subject to change due to the lack of observable inputs and uncertainty regarding the duration of the COVID-19 pandemic and its aftereffects.

The Company’s CECL reserve reflects its estimation of the current and future economic conditions that impact the performance of the commercial real estate assets securing the Company’s loans. These estimations include unemployment rates, interest rates, price indices for commercial property, and other macroeconomic factors impacting 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. The forecasts are embedded in the licensed model that the Company uses to estimate its CECL reserve. Selection of these economic forecasts 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, and the actual economic conditions impacting the Company’s portfolio could vary significantly from the estimates the Company made for the periods presented.

Credit Loss Measurement

The amount of allowance for credit losses is influenced by the size of the Company’s loan portfolio, loan asset quality, risk rating, delinquency status, historic loss experience and other conditions 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: a model-based approach utilized for substantially all of its loans, and an individually-assessed approach for loans that the Company concludes are ill-suited for use in the model-based approach, or are individually-assessed.

Allowance for Credit Losses for Loans Held for Investment – Model-Based Approach

The model-based approach to measure the allowance for credit losses relates to loans which are not individually-assessed.

The Company licenses from Trepp LLC historical loss information, incorporating loan performance data for over 100,000 commercial real estate loans dating back to 1998, in an analytical model to compute statistical credit loss factors (i.e., probability-of-default and loss-given-default). These statistical credit loss factors are utilized together with individual loan information to generate future expected cash flows which are used to estimate the allowance for credit losses. This methodology appropriately considers the unique characteristics of the Company’s commercial mortgage loan portfolio and individual assets within the portfolio by considering individual loan risk ratings, delinquency statuses and other credit trends and risk characteristics. Further, the Company incorporates its expectations about the impact of current conditions and reasonable and supportable 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 will revert to unadjusted historical loan loss information based on systematic methodology determined at the input level. Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. In future periods, evaluations of the overall loan portfolio, in light of the factors and forecasts then prevailing, may result in significant changes in the allowance and credit loss expense.

Allowance for Credit Losses for Loans Held for Investment – Individually-Assessed Approach

In instances where the unique attributes of a loan investment render it ill-suited for the model-based approach because it no longer shares risk characteristics with other loans, or because the Company concludes repayment of the loan is collateral-dependent, the Company separately evaluates the amount of expected credit loss using a tailored discounted cash flow method, considering substantially the same credit factors as utilized in the model-dependent method. In these cases, expected credit loss is measured as the difference between the amortized cost basis of the loan and the fair value of the collateral as determined by management using standard discount cash flow valuation techniques. The fair value of the collateral is adjusted for the estimated cost to sell if repayment or satisfaction of a loan is dependent on the sale (rather than the operation) of the collateral.

Once the expected credit loss amount is determined, an allowance for credit losses equal to the calculated expected credit loss is established. If the calculated expected credit loss is determined to be permanent or not recoverable, the amount of expected credit loss will be charged-off through the allowance for credit losses. Factors considered by management in determining if the expected credit loss is permanent or not recoverable include whether management judges the loan to be uncollectible; that is, repayment is deemed to be delayed beyond reasonable time frames, or the loss becomes evident due to the borrower’s lack of assets and liquidity, or the borrower’s sponsor is unwilling or unable to support the loan.

Unfunded Loan Commitments

The Company’s first mortgage loans often contain provisions for future funding 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, and occasionally to fund forecasted operating deficits during lease-up, or for interest reserves. 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 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 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. No credit loss estimate is reported for unfunded loan commitments that are unconditionally cancellable by the Company.

Portfolio Financing Arrangements

The Company has in the past acquired CRE debt securities for short-term investment purposes. The Company designates CRE debt securities as available-for-sale (“AFS”) on the acquisition date. CRE debt securities that are classified as AFS are recorded at fair value through other comprehensive income or loss in the Company’s consolidated financial statements. The Company recognizes interest income on its CRE debt securities using the interest method, or on a straight-line basis when it approximates the effective interest method, with any premium or discount amortized or accreted into interest income based on the respective outstanding principal balance and corresponding contractual term of the CRE debt security. Accrued but not yet collected interest is separately reported as accrued interest receivable on the Company’s consolidated balance sheets. The Company uses a specific identification method when determining the cost of a CRE debt security sold and the amount of unrealized gain or loss reclassified from accumulated other comprehensive income or loss into earnings on the trade date.

AFS debt securities in unrealized loss positions are evaluated for impairment related to credit losses at least quarterly. For the purpose of identifying and measuring impairment, any applicable accrued interest is excluded from both the fair value and the amortized cost basis. The Company has elected to write off accrued interest by reversing interest income in the event the accrued interest is deemed uncollectible, generally when the security becomes 90 days or more past due for principal and interest.

The Company first assesses whether it intends to sell the debt security or more likely than not will be required to sell the debt security before recovery of its amortized cost basis. If either criterion regarding intent or requirement to sell is met, the debt security’s amortized cost basis is written down to its fair value and the write down is charged against the allowance for credit losses, with any incremental impairment reported in earnings as a loss in the consolidated statements of income and comprehensive income.

Any AFS debt security in an unrealized loss position which the Company does not intend to sell or is not more likely than not required to sell before recovery of the amortized cost basis is assessed for expected credit losses. The performance indicators considered for CRE debt securities relate to the underlying assets and include default rates, delinquency rates, percentage of nonperforming assets, debt-to-collateral ratios, third-party guarantees, current levels of subordination, vintage, geographic concentration, analyst reports and forecasts, credit ratings and other market data. In assessing whether a credit loss exists, the Company compares the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a credit loss exists and an allowance for credit losses is recorded, limited by the amount the fair value is less than amortized cost basis.

Declines in fair value of AFS debt securities in an unrealized loss position that are not due to credit losses, such as declines due to changes in market interest rates, are recorded through other comprehensive income. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Unrealized gains and losses on available-for-sale debt securities presented in the consolidated statement of income and comprehensive income includes the reversal of unrealized gains and losses at the time gains or losses are realized.

Significant valuation inputs in the fair value hierarchy as described below under “Fair Value Measurements” are Level I as of March 31, 2020 and Level II as of December 31, 2019.

The Company finances certain of its loans, or participation interests therein, using secured revolving repurchase agreements, senior secured and secured credit agreements, asset-specific financing arrangements, 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 and comprehensive income.

In certain instances, the Company creates structural leverage through the co-origination or non-recourse syndication of a senior loan interest to a third party. For all such syndications the Company has completed through March 31, 2020, the Company transferred on a non-recourse basis 100% of the senior mortgage loan that the Company originated or co-originated to a third-party lender 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 loan so 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.

The Company finances its CRE debt securities using secured revolving repurchase agreements with daily mark-to-market features and contract maturities of typically 30 days. The related borrowings are recorded as liabilities on the Company’s consolidated balance sheets. Interest income earned on the CRE debt securities and interest expense incurred on the related borrowings are reported in interest income and interest expense, respectively, on the Company’s consolidated statements of income and comprehensive income.

For more information regarding the Company’s 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 and cash equivalents, restricted cash and available-for-sale CRE debt securities. The three levels of inputs that may be used to measure fair value are as follows:

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

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

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

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

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 market, and the commercial mortgage loan and CRE debt securities markets, have and continue to experience extreme volatility, reduced transaction volume and liquidity, and disruption as a result of COVID-19, 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, capitalization rates and discount rates used to value commercial real estate properties, and observable transactions involving the sale or financing of commercial properties. In the absence of market inputs, GAAP permits the use of management assumptions to measure fair value. However, the considerable market volatility and disruption caused by COVID-19 and the considerable uncertainty regarding the ultimate impact and duration of the pandemic have made it more difficult for the Company’s management to formulate assumptions to measure the fair value of the Company’s assets.

Income Taxes

The Company qualifies and has elected to be taxed as a REIT for U.S. federal income tax purposes under the Internal Revenue Code of 1986, as amended, commencing with its initial taxable year ended December 31, 2014. To the extent that it annually distributes at least 90% of its REIT taxable income to stockholders and complies with various other requirements as a REIT, the Company generally will not be subject to U.S. federal income taxes on its distributed REIT taxable income. 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. On May 4, 2020, the Internal Revenue Service issued a revenue procedure that temporarily reduces (through the end of 2020) the minimum amount of the total distribution that must be paid in cash to 10%. Pursuant to these revenue procedures, 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.

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

Earnings per Common Share

The Company utilizes the two-class method when assessing participating securities to calculate earnings per common share. Basic and diluted earnings per common share is computed by dividing net income attributable to common stockholders (i.e., holders of common stock and Class A common stock), by the weighted-average number of common shares (both common stock and Class A common stock) outstanding during the period. The preferences, rights, voting powers, restrictions, limitations as to dividends and other distributions, qualifications and terms and conditions of redemption of the Class A common stock are identical to the common stock, except (1) the Class A common stock is not a “margin security” as defined in Regulation U of the Board of Governors of the U.S. Federal Reserve System (and rulings and interpretations thereunder) and may not be listed on a national securities exchange or a national market system and (2) each share of Class A common stock is convertible at any time or from time to time, at the option of the holder, for one fully paid and non-assessable share of common stock.

Between January 22, 2020 and January 24, 2020, the Company received requests to convert all outstanding shares of its Class A common stock into shares of the Company’s common stock. Accordingly, all of the outstanding shares of the Company’s Class A common stock were retired and returned to the authorized but unissued shares of Class A common stock of the Company, and the holders of the shares of Class A common stock were issued an aggregate of 1,136,665 shares of the Company’s common stock. On February 14, 2020, the Company filed Articles Supplementary with the State Department of Assessments and Taxation of Maryland to reclassify and designate all 2,500,000 authorized but unissued shares of the Company’s Class A common stock as additional shares of undesignated common stock of the Company. The Articles Supplementary became effective upon filing on February 14, 2020. As a result, as of March 31, 2020, there are no shares of the Company’s Class A common stock authorized or outstanding.

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

Share-Based Compensation

Share-based compensation consists of awards issued by the Company to certain employees of affiliates of the Manager and certain members of our Board of Directors. These share-based awards generally vest in installments over a fixed period of time. Deferred stock units granted to the Company’s Board of Directors fully vest on the grant date and accrue dividends that are paid-in kind through additional deferred stock units on a quarterly basis. Compensation expense is recognized in net income on a straight-line basis over the applicable award’s vesting period. Forfeitures of share-based awards are recognized as they occur.

Deferred Financing Costs

Deferred financing costs are reflected net of the collateralized loan obligations and secured financing arrangements 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: (a) for secured financing arrangements other than our CRE CLOs, the initial term of the financing arrangement; (b) for deferred financing costs related to specific borrowings under secured financing arrangements other than CRE CLOs, the initial maturities of the underlying loan(s) pledged to support the specific borrowing; and (c), for CRE CLOs issued by Company subsidiaries, over the estimated life of the liabilities issued based on the expected repayment behavior of the underlying loans in each CRE CLO, taking into account the two- year reinvestment periods (measured from the issuance date) of each CRE CLO.

Cash and cash equivalents include cash held in banks or invested in money market funds with original maturities of less than 90 days. The Company deposits its cash and cash equivalents with high credit quality institutions to minimize credit risk exposure. The Company maintains cash accounts at several financial institutions, which are insured up to a maximum of $250,000 per account as of March 31, 2020 and December 31, 2019. 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) $10 million or (ii) the product of 5% and the aggregate recourse indebtedness of the Company. To comply with this covenant, the Company held as part of its total cash balances $58.4 million and $56.9 million, respectively, at March 31, 2020 and December 31, 2019.

Restricted Cash

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

Recently Issued Accounting Pronouncements

Accounts receivable from Servicer/Trustee represents cash proceeds from loan and CRE debt securities activities that have not been remitted to the Company based on established servicing and borrowing procedures. Amounts are generally held by the Servicer/Trustee for less than 30 days before being remitted to the Company.

Going Concern

The accompanying consolidated financial statements are prepared in accordance with generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.

The Company’s primary sources of liquidity include cash, availability under secured borrowing arrangements, net proceeds from loan repayments in excess of the Company’s borrowings secured by loans so repaid, net proceeds from the sale of CRE CLO investments, and net proceeds from loan sales. During the quarter ended March 31, 2020, the COVID-19 pandemic caused significant disruption to the US and global economies, contributing to significant and ongoing volatility, widening credit spreads and sharp declines in liquidity in the commercial real estate capital markets, and disruption of the banking sector. These factors in combination have caused the Company to experience a reduction in available liquidity due to margin calls paid related to daily mark-to-market borrowing against its investment portfolio of CRE CLO debt securities, incur losses due to the sale of its entire investment portfolio of CRE CLO securities, experience a slowdown in the pace and volume of loan repayments by its borrowers, and forecast the need to reduce the advance rate of its borrowings under its secured revolving repurchase agreements, and senior secured and secured credit facilities.

The Company has undertaken a plan to support its operations and meet its liquidity needs:

•

On March 23, 2020, the Company announced the deferral until July 14, 2020 of the payment of the Company’s declared first quarter dividend to stockholders of record as of June 15, 2020. The Board of Directors will determine whether to pay the dividend entirely in cash, or in a combination of cash and stock.

•

Between March 23, 2020 and April 29, 2020, the Company sold 49 separate CRE debt securities investments with an aggregate face value of $961.3 million, and repaid related secured indebtedness of $722.7 million, generating net cash proceeds of $35.2 million.

•

On May 4, 2020, the Company extended the maturity date by one year to May 4, 2021 of its secured revolving repurchase agreement with Morgan Stanley Bank.

However, with consideration of the above actions taken, Management projects that the Company will not have sufficient liquidity to repay maturing debt balances of $432.2 million and meet its obligations as they become due to sustain operations through at least one year following the date the consolidated financial statements are issued. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.

In response to these conditions, Management’s plans include the intention to execute extensions with the Company’s lenders during 2020, and believes that such extensions are probable of occurring, which is expected to extend the maturity dates until May 2022 or after. The Company has a history of successfully executing extensions with these lenders. As a result, the Company has concluded that management’s plans are probable of being achieved to alleviate substantial doubt about the Company’s ability to continue as a going concern.

Recently Adopted Accounting Guidance

On January 1, 2020, the Company adopted Accounting Standards Update (“ASU”) 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which replaces the incurred loss methodology with an expected loss method that is referred to as the CECL method. The measurement of expected credit losses under the CECL method is applicable to the Company’s mortgage loan investment portfolio measured at amortized cost, unfunded loan commitments and AFS debt securities measured at fair value. Also on January 1, 2020, the Company adopted the following ASUs issued subsequent to ASU 2016-13 which amended Topic 326:

•

ASU 2018-19, Codification Improvements to Topic 326 – Credit Losses

•

ASU 2019-04, Codification Improvements to Topic 326 – Credit Losses, Topic 815 – Derivatives and Hedging, and Topic 825 – Financial Instruments

•

ASU 2019-05, Financial Instruments – Credit Losses (Topic 326): Targeted Transition Relief

•

ASU 2019-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates

•

ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments – Credit Losses

The Company adopted ASU 2016-13 and other related ASUs listed above using the modified retrospective method for all mortgage loans measured at amortized cost and unfunded noncancelable loan commitments. Results for reporting periods beginning after January 1, 2020 are presented under ASU 2016-13 and other related ASUs while prior period amounts continue to be reported in accordance with previously applicable GAAP.

The following table presents the January 1, 2020 cumulative impact of the adoption of ASU 2016-13 on the indicated line items of the Company’s consolidated balance sheet as of January 1, 2020:

	Pre-Adoption			Cumulative Effect of Adopting ASU 2016-13			Post-Adoption
Assets:
Loans Held for Investment	$	4,980,389		$	—		$	4,980,389
Allowance for Credit Losses		—			(17,783	)		(17,783	)
Loan Held for Investment, net	$	4,980,389		$	(17,783	)	$	4,962,606

Liabilities:
Accrued Expenses and Other Liabilities	$	8,176		$	1,862		$	10,038

Equity:
Accumulated Deficit	$	(28,108	)	$	(19,645	)	$	(47,753	)

The adoption of ASU 2016-13 did not have a material impact on the Company’s portfolio of AFS debt securities at January 1, 2020.

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2020

ASU 2016-13

Schedule of Cumulative Impact of Adoption of ASU 2016-13 on Indicated Line Items of Consolidated Balance Sheet

The following table presents the January 1, 2020 cumulative impact of the adoption of ASU 2016-13 on the indicated line items of the Company’s consolidated balance sheet as of January 1, 2020:

	Pre-Adoption			Cumulative Effect of Adopting ASU 2016-13			Post-Adoption
Assets:
Loans Held for Investment	$	4,980,389		$	—		$	4,980,389
Allowance for Credit Losses		—			(17,783	)		(17,783	)
Loan Held for Investment, net	$	4,980,389		$	(17,783	)	$	4,962,606

Liabilities:
Accrued Expenses and Other Liabilities	$	8,176		$	1,862		$	10,038

Equity:
Accumulated Deficit	$	(28,108	)	$	(19,645	)	$	(47,753	)

Loans Held for Investment and the Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2020

Receivables [Abstract]

Schedule of Overall Statistics for Loan Portfolio

The following table details overall statistics for the Company’s loan portfolio as of March 31, 2020 (dollars in thousands):

	Balance Sheet Portfolio			Total Loan Portfolio
Number of loans		66			67
Floating rate loans (by unpaid principal balance)		100.0	%		100.0	%
Total loan commitments⁽¹⁾	$	5,763,697		$	5,895,697
Unpaid principal balance	$	5,112,808		$	5,112,808
Unfunded loan commitments⁽²⁾	$	650,889		$	650,889
Carrying value	$	5,020,695		$	5,020,695
Weighted average credit spread⁽³⁾		3.4	%		3.4	%
Weighted average all-in yield⁽³⁾		5.4	%		5.4	%
Weighted average term to extended maturity (in years)⁽⁴⁾		3.7			3.7
Weighted average LTV⁽⁵⁾		65.7	%		65.7	%

(1)

In certain instances, we create 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 our balance sheet. When we create structural leverage through the co-origination or non-recourse syndication of a senior loan interest to a third-party, we retain on our balance sheet a mezzanine loan. Total loan commitment encompasses the entire loan portfolio we originated, acquired and financed. At March 31, 2020, we had one non-consolidated senior interest outstanding of $132.0 million.

(2)

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 our borrowers, to finance operating deficits during renovation and lease-up, and in limited instances to finance construction.

(3)

As of March 31, 2020, our floating rate loans were indexed to LIBOR. In addition to credit spread, all-in yield includes the amortization of deferred origination fees, purchase price premium and discount, loan origination costs and accrual of both extension and exit fees. Credit spread and all-in yield for the total portfolio assumes the applicable floating benchmark rate as of March 31, 2020 for weighted average calculations.

(4)

Extended maturity assumes all extension options are exercised by the borrower; provided, however, that our loans may be repaid prior to such date. As of March 31, 2020, based on the unpaid principal balance of our total loan exposure, 66.0% of our loans were subject to yield maintenance or other prepayment restrictions and 34.0% were open to repayment by the borrower without penalty.

(5)

Except for construction loans, LTV is calculated for loan originations and existing loans as the total outstanding principal balance of the loan or participation interest in a loan (plus any financing that is pari passu with or senior to such loan or participation interest) as of March 31, 2020, divided by the as-is appraised value of our collateral at the time of origination or acquisition of such loan or participation interest. For construction loans only, LTV is calculated as the total commitment amount of the loan divided by the as-stabilized value of the real estate securing the loan. The as-is or as-stabilized (as applicable) value reflects our Manager’s estimates, at the time of origination or acquisition of the loan or participation interest in a loan, of the real estate value underlying such loan or participation interest determined in accordance with our Manager’s underwriting standards and consistent with third-party appraisals obtained by our Manager. See Note 16 to the Consolidated Financial Statements included in this Form 10-Q for details about our mortgage loan originations subsequent to March 31, 2020.

Schedule of Mortgage Loan Investment Portfolio by Loan Seniority

The following tables present an overview of the mortgage loan investment portfolio by loan seniority as of March 31, 2020 and December 31, 2019 (dollars in thousands):

	March 31, 2020
Loans Receivable	Outstanding Principal		Unamortized Premium (Discount), Loan Origination Fees, net			Allowance for Credit Losses			Carrying Amount
Senior loans	$	5,092,808	$	(16,199	)	$	(73,620	)	$	5,002,989
Subordinated and mezzanine loans		20,000		(256	)		(2,038	)		17,706
Total	$	5,112,808	$	(16,455	)	$	(75,658	)	$	5,020,695

	December 31, 2019
Loans Receivable	Outstanding Principal		Unamortized Premium (Discount), Loan Origination Fees, net			Allowance for Credit Losses		Carrying Amount
Senior loans	$	4,978,176	$	(17,500	)	$	—	$	4,960,676
Subordinated and mezzanine loans		20,000		(287	)		—		19,713
Total	$	4,998,176	$	(17,787	)	$	—	$	4,980,389

Summary of Loan Portfolio Activity

For the three months ended March 31, 2020, loan portfolio activity was as follows (dollars in thousands):

	Carrying Value
Balance at December 31, 2019	$	4,980,389
Additions during the period:
Loans originated and acquired		351,650
Additional fundings		61,720
Amortization of origination fees		3,213
Deductions during the period:
Collection of principal		(300,619	)
Change in allowance for credit losses		(75,658	)
Balance at March 31, 2020	$	5,020,695

Summary of Amortized Cost Basis of Loans by Origination Year Grouped by Risk Rating

The following table presents amortized cost basis by origination year, grouped by risk rating, as of March 31, 2020 (dollars in thousands):

	March 31, 2020
	Amortized Cost Basis of Loans by Origination Year
	2020		2019		2018		2017		2016		Total
Senior loans by internal risk ratings:
1	$	—	$	—	$	—	$	—	$	—	$	—
2		—		—		344,297		85,254		—		429,551
3		353,127		1,766,882		1,116,492		278,684		—		3,515,185
4		—		530,000		158,532		315,820		28,057		1,032,409
5		—		—		—		99,464		—		99,464
Total mortgage loans		353,127		2,296,882		1,619,321		779,222		28,057		5,076,609
Subordinated and mezzanine loans by internal risk ratings:
1	$	—	$	—	$	—	$	—	$	—	$	—
2		—		—		—		—		—		—
3		—		19,744		—		—		—		19,744
4		—		—		—		—		—		—
5		—		—		—		—		—		—
Total subordinated and mezzanine loans		—		19,744		—		—		—		19,744
Total	$	353,127	$	2,316,626	$	1,619,321	$	779,222	$	28,057	$	5,096,353

Summary of Carrying Values Net of Allowance for Credit Loss and Results of Internal Risk Rating Review Performed

The table below summarizes the carrying values, net of allowance for credit loss, and results of the Company’s internal risk rating review performed as of March 31, 2020 and December 31, 2019 (dollars in thousands):

Rating	March 31, 2020		December 31, 2019
1	$	—	$	—
2		426,306		903,393
3		3,502,269		3,868,696
4		1,017,414		208,300
5		74,706		—
Total	$	5,020,695	$	4,980,389

Weighted Average Risk Rating⁽¹⁾		3.1		2.9

(1)	Weighted Average Risk Rating calculated based on carrying value at period end.

Summary of Activity in Allowance for Credit Losses for Mortgage Loan Investment Portfolio by Class of Financing Receivable

The following table presents activity in the allowance for credit losses for the mortgage loan investment portfolio by class of finance receivable for the three month period ended March 31, 2020 (dollars in thousands):

	March 31, 2020
	Senior Loans		Subordinated and Mezzanine Loans		Total
Allowance for credit losses for loans held for investment:
Beginning balance (prior to adoption of ASC 326)	$	—	$	—	$	—
Impact of adopting ASC 326		16,903		880		17,783
Credit loss expense		56,717		1,158		57,875
Subtotal		73,620		2,038		75,658

Allowance for credit losses on unfunded loan commitments:
Beginning balance (prior to adoption of ASC 326)		—		—		—
Impact of adopting ASC 326		1,862		—		1,862
Credit loss expense		3,945		1,528		5,473
Subtotal		5,807		1,528		7,335

Total allowance for credit losses	$	79,427	$	3,566	$	82,993

Summary of Aging Analysis on Amortized Cost Basis of Mortgage Loans by Class of Loans

The following table presents the aging analysis on an amortized cost basis of mortgage loans by class of loans as of March 31, 2020 (dollars in thousands):

	Days Outstanding
	30-59 Days		60-89 Days		90 Days or More		Total Loans Past Due		Current		Total Loans		90 Days or More Past Due and Accruing
Loans Receivable:
Senior loans	$	28,057	$	—	$	—	$	—	$	5,048,552	$	5,076,609	$	—
Subordinated and mezzanine loans		—		—		—		—		19,744		19,744		—
Total	$	28,057	$	—	$	—	$	—	$	5,068,296	$	5,096,353	$	—

Available-for-Sale Debt Securities (Tables)

3 Months Ended

Mar. 31, 2020

Investments Debt And Equity Securities [Abstract]

Details of Amortized Cost, Fair Value and Allowance for Credit Losses of CRE Debt Securities

The following table summarizes the amortized cost, fair value, and unrealized gain of the Company’s CRE debt securities at March 31, 2020 (dollars in thousands):

	March 31, 2020
	Face Amount		Impaired Face Amount		Unamortized Premium (Discount), net			Amortized Cost		Gross Unrealized Gain		Estimated Fair Value
Investments, at Fair Value
CRE CLO	$	731,176	$	575,480	$	291		$	575,771	$	—	$	575,771
Commercial Mortgage-Backed Securities		36,158		29,008		(55	)		28,953		77		29,030
	$	767,334	$	604,488	$	236		$	604,724	$	77	$	604,801

The amount of relevant accrued interest excluded from the amortized cost basis balances presented in the table above is $1.7 million.

	December 31, 2019
	Face Amount		Unamortized Premium (Discount), net			Amortized Cost		Gross Unrealized Gain		Estimated Fair Value
Investments, at Fair Value
CRE CLO	$	750,187	$	207		$	750,394	$	1,006	$	751,400
Commercial Mortgage-Backed Securities		36,162		(55	)		36,107		45		36,152
	$	786,349	$	152		$	786,501	$	1,051	$	787,552

CRE Debt Securities by Contractual Maturity

The Company’s CRE debt securities have a weighted average expected life, based on estimated fair value, of 3.0 years. The amortized cost and estimated fair value of the Company’s CRE debt securities by contractual maturity, not expected life, as of March 31, 2020 and December 31, 2019, respectively, are shown in the following table (dollars in thousands):

	March 31, 2020
	Amortized Cost		Estimated Fair Value
Maturity Date
Within five years	$	1,119	$	1,196
After five years		603,605		603,605
Total investment in CRE debt securities, at amortized cost and estimated fair value	$	604,724	$	604,801

	December 31, 2019
	Amortized Cost		Estimated Fair Value
Maturity Date
After one, within five years	$	1,126	$	1,143
After five years		785,375		786,409
Total investment in CRE debt securities, at amortized cost and estimated fair value	$	786,501	$	787,552

Variable Interest Entities and Collateralized Loan Obligations (Tables)

3 Months Ended

Mar. 31, 2020

Summary of Variable Interest Entities Assets and Liabilities

The Company’s total assets and total liabilities as of March 31, 2020 and December 31, 2019 included the following VIE assets and liabilities of TRTX 2019-FL3 and TRTX 2018-FL2 (dollars in thousands):

	March 31, 2020		December 31, 2019
ASSETS
Cash and Cash Equivalents	$	19,683	$	17,075
Accounts Receivable from Servicer/Trustee		407		1,464
Accrued Interest and Fees Receivable		1,648		2,178
Loans Held for Investment		2,230,345		2,229,034
Total Assets	$	2,252,083	$	2,249,751
LIABILITIES
Accrued Interest Payable	$	1,802	$	2,512
Accrued Expenses and Other Liabilities		376		732
Collateralized Loan Obligations		1,822,291		1,821,128
Payable to Affiliates		4,620		4,620
Deferred Revenue		155		—
Total Liabilities	$	1,829,244	$	1,828,992

Collateralized Loan Obligation

Schedule of Borrowings and Corresponding Collateral

The following tables outline TRTX 2019-FL3 and TRTX 2018-FL2 loan collateral and borrowings under the TRTX 2019-FL3 and TRTX 2018-FL2 collateralized loan obligations as of March 31, 2020 and December 31, 2019 (dollars in thousands):

March 31, 2020
Collateral (loan investments)				Debt (notes issued)
Outstanding Principal		Carrying Value		Face Value		Carrying Value
$	2,230,345	$	2,230,345	$	1,834,760	$	1,822,291

December 31, 2019
Collateral (loan investments)				Debt (notes issued)
Outstanding Principal		Carrying Value		Face Value		Carrying Value
$	2,229,034	$	2,229,034	$	1,834,761	$	1,821,128

Schedule of Weighted Average Spreads and Maturities for Loan Collateral and Borrowings

The following table outlines the weighted average spreads and maturities for TRTX 2019-FL3 and TRTX 2018-FL2 loan collateral and borrowings under the TRTX 2019-FL3 and TRTX 2018-FL2 collateralized loan obligations as of March 31, 2020 and December 31, 2019 (dollars in thousands):

	March 31, 2020					December 31, 2019
	Weighted Average Spread (%)⁽¹⁾			Weighted Average Maturity (Years)⁽²⁾		Weighted Average Spread (%)⁽¹⁾			Weighted Average Maturity (Years)⁽²⁾
Collateral (loan investments)
TRTX 2018-FL2		3.74	%		4.5		3.82	%		4.2
TRTX 2019-FL3		3.18	%		4.2		3.33	%		4.1

Debt (notes issued)
TRTX 2018-FL2		1.72	%		17.6		1.72	%		17.9
TRTX 2019-FL3		1.63	%		14.5		1.63	%		14.8

(1)	Yield on collateral is based on cash coupon. Financing cost includes amortization of deferred financing costs incurred in connection with the CLO.

(2)

Loan term represents weighted-average final maturity, assuming extension options are exercised by the borrower. Repayments of CLO notes are dependent on timing of related collateral loan asset repayments post reinvestment period. The term of the CLO notes represents the rated final distribution date.

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details

Secured Revolving Repurchase Agreements, Senior Secured and Secured Credit Agreements, and Asset-Specific Financing (Tables)

3 Months Ended

Mar. 31, 2020

Schedule of Information Related to Secured Revolving Repurchase Agreements, Senior Secured and Secured Credit Agreements, and Asset-Specific Financings

The following table presents certain information regarding the Company’s secured revolving repurchase agreements, senior secured and secured credit agreements, and asset-specific financings as of March 31, 2020 and December 31, 2019. Except as otherwise noted, all agreements are on a full or partial recourse basis (dollars in thousands):

	March 31, 2020
Financing Arrangement Secured Revolving Repurchase Agreements	Maturity Date	Index Rate	Weighted Average Credit Spread			Interest Rate			Commitment Amount		Maximum Current Availability		Balance Outstanding		Principal Balance of Collateral⁽¹⁾		Carrying Value of Collateral
Goldman Sachs⁽²⁾	08/19/20	1 Month LIBOR		2.1	%		3.1	%	$	750,000	$	602,992	$	147,008	$	221,728	$	220,151
Wells Fargo⁽²⁾	04/18/22	1 Month LIBOR		1.7	%		2.7	%		750,000		389,462		360,538		494,959		492,972
Barclays⁽²⁾	08/13/22	1 Month LIBOR		1.5	%		2.5	%		750,000		160,474		589,526		742,729		740,584
Morgan Stanley^(2),(5)	05/04/20	1 Month LIBOR		1.8	%		2.8	%		500,000		58,641		441,359		578,177		575,025
JP Morgan⁽²⁾	08/20/21	1 Month LIBOR		1.6	%		2.6	%		400,000		179,378		220,622		294,041		288,654
US Bank⁽²⁾	07/09/22	1 Month LIBOR		1.5	%		2.5	%		189,490		114,011		75,479		98,272		97,821
Subtotal - Loan Investments										3,339,490		1,504,958		1,834,532		2,429,906		2,415,207
Goldman Sachs⁽³⁾	04/10/20	1 Month LIBOR		1.1	%		2.0	%		73,366		—		73,366		59,687		59,756
JP Morgan⁽³⁾	04/08/20	1 Month LIBOR		1.1	%		2.1	%		437,323		—		437,323		438,297		438,420
Wells Fargo⁽³⁾	04/19/20	1 Month LIBOR		1.3	%		2.2	%		97,592		—		97,592		115,585		115,668
Royal Bank of Canada⁽³⁾	N/A	N/A	N/A			N/A				—		—		—		—		—
Subtotal - CRE Debt Securities										608,281		—		608,281		613,569		613,844
Subtotal										3,947,771		1,504,958		2,442,813		3,043,475		3,029,051

Senior Secured and Secured Credit Agreements
Bank of America⁽²⁾	09/29/20	1 Month LIBOR		1.8	%		2.7	%		500,000		354,363		145,637		183,411		183,411
Citibank⁽⁴⁾	07/12/20	1 Month LIBOR		2.3	%		3.2	%		160,000		97,357		62,643		90,160		89,231
Subtotal										660,000		451,720		208,280		273,571		272,642

Asset-specific Financing
Institutional Lender	10/09/20	1 Month LIBOR		4.2	%		5.1	%		77,000		—		77,000		112,000		109,463
Subtotal										77,000		—		77,000		112,000		109,463

Total									$	4,684,771	$	1,956,678	$	2,728,093	$	3,429,046	$	3,411,156

(1)	The principal balance of collateral for CRE debt securities includes impairments recorded at March 31, 2020.

(2)	Borrowings under secured revolving repurchase agreements and a senior secured credit agreement with a guarantee for 25% recourse from Holdco.

(3)

Borrowings under secured revolving repurchase agreements with a guarantee for 100% recourse from Holdco. Maturity Date represents the sooner of the next maturity date of the CRE debt securities secured revolving repurchase agreement, or roll-over date for the applicable underlying trade confirmation subsequent to March 31, 2020. All of the financing arrangements were extended subsequent to period end. The Goldman Sachs and Wells Fargo agreements have 30 day rolls, while the JP Morgan agreement has day-to-day rolls.

(4)	Borrowings under the secured credit agreement with a guarantee for 100% recourse.

(5)	Subsequent to March 31, 2020, the maturity date of the Morgan Stanley facility was extended to May 4, 2021.

	December 31, 2019
Financing Arrangement Secured Revolving Repurchase Agreements	Maturity Date	Index Rate	Weighted Average Credit Spread			Interest Rate			Commitment Amount		Maximum Current Availability		Balance Outstanding		Principal Balance of Collateral		Carrying Value of Collateral
Goldman Sachs⁽¹⁾	08/19/20	1 Month LIBOR		1.8	%		3.5	%	$	750,000	$	704,563	$	45,437	$	288,032	$	285,962
Wells Fargo⁽¹⁾	04/18/22	1 Month LIBOR		1.8	%		3.6	%		750,000		355,372		394,628		593,742		591,238
Barclays⁽¹⁾	08/13/22	1 Month LIBOR		1.5	%		3.3	%		750,000		318,240		431,760		542,927		540,725
Morgan Stanley⁽¹⁾	05/04/20	1 Month LIBOR		1.9	%		3.6	%		500,000		105,253		394,747		519,638		515,984
JP Morgan⁽¹⁾	08/20/21	1 Month LIBOR		1.6	%		3.3	%		400,000		181,552		218,448		300,677		295,341
US Bank⁽¹⁾	07/09/22	1 Month LIBOR		1.8	%		3.6	%		152,240		15,641		136,599		173,253		172,898
Subtotal - Loan Investments										3,302,240		1,680,621		1,621,619		2,418,269		2,402,148
Goldman Sachs⁽²⁾	01/12/20	1 Month LIBOR		0.9	%		2.7	%		81,143		—		81,143		94,629		94,644
JP Morgan⁽²⁾	01/17/20	1 Month LIBOR		0.9	%		2.6	%		475,881		—		475,881		544,105		545,080
Wells Fargo⁽²⁾	01/16/20	1 Month LIBOR		1.0	%		2.7	%		135,774		—		135,774		161,153		161,384
Royal Bank of Canada⁽²⁾	N/A	N/A	N/A			N/A				—		—		—		—		—
Subtotal - CRE Debt Securities										692,798		—		692,798		799,887		801,108
Subtotal										3,995,038		1,680,621		2,314,417		3,218,156		3,203,256

Senior Secured and Secured Credit Agreements
Bank of America⁽¹⁾	09/29/20	1 Month LIBOR		1.8			3.8			500,000		354,363		145,637		182,882		182,882
Citibank⁽³⁾	07/12/20	1 Month LIBOR		2.3			4.1			160,000		160,000		—		—		—
Subtotal										660,000		514,363		145,637		182,882		182,882

Asset-specific Financing
Institutional Lender	10/09/20	1 Month LIBOR		4.2	%		5.9	%		77,000		—		77,000		112,000		111,436
Subtotal										77,000		—		77,000		112,000		111,436

Total									$	4,732,038	$	2,194,984	$	2,537,054	$	3,513,038	$	3,497,574

(1)	Borrowings under secured revolving repurchase agreements and a senior secured credit agreement with a guarantee for 25% recourse from Holdco.

(2)

Borrowings under secured revolving repurchase agreements with a guarantee for 100% recourse from Holdco. Maturity Date represents the sooner of the next maturity date of the CRE debt securities secured revolving repurchase agreement, or roll-over date for the applicable underlying trade confirmation, subsequent to December 31, 2019. All of the financing arrangements were extended subsequent to period end.

(3)	Borrowings under the secured credit agreement include a guarantee for 100% recourse.

Summary of Recourse and Market-to-Market Provisions

The following table presents the recourse and mark-to-market provisions for the Company’s financing arrangements as of March 31, 2020:

	March 31, 2020
Financing Arrangement Secured Revolving Repurchase Agreements	Maturity Date	Recourse Percentage			Basis of Margin Calls
Loan Investments
Goldman Sachs	08/19/20		25	%	Credit
Wells Fargo	04/18/22		25	%	Credit
Barclays	08/13/22		25	%	Credit
Morgan Stanley	05/04/20		25	%	Credit
JP Morgan	08/20/21		25	%	Credit and Spread
US Bank	07/09/22		25	%	Credit
CRE Debt Securities
Goldman Sachs	04/10/20		100	%	Spread
JP Morgan	04/08/20		100	%	Spread
Wells Fargo	04/19/20		100	%	Spread
Royal Bank of Canada	N/A		100	%	Spread

Senior Secured and Secured Credit Agreements
Bank of America	09/29/20		25	%	Credit
Citibank	07/12/20		100	%	N/A

Asset-specific Financing
Institutional Lender	10/09/20	N/A			N/A

The following table presents the recourse and mark-to-market provisions for the Company’s financing arrangements as of December 31, 2019:

	December 31, 2019
Financing Arrangement Secured Revolving Repurchase Agreements	Maturity Date	Recourse Percentage			Basis of Margin Calls
Loan Investments
Goldman Sachs	08/19/20		25	%	Credit
Wells Fargo	04/18/22		25	%	Credit
Barclays	08/13/22		25	%	Credit
Morgan Stanley	05/04/20		25	%	Credit
JP Morgan	08/20/21		25	%	Credit and Spread
US Bank	07/09/22		25	%	Credit
CRE Debt Securities
Goldman Sachs	01/12/20		100	%	Spread
JP Morgan	02/27/20		100	%	Spread
Wells Fargo	02/26/20		100	%	Spread
Royal Bank of Canada	N/A		100	%	Spread

Senior Secured and Secured Credit Agreements
Bank of America	09/29/20		25	%	Credit
Citibank	07/12/20		100	%	N/A

Asset-specific Financing
Institutional Lender	10/09/20	N/A			N/A

Commercial Mortgage Loans

Summary of Repurchase Agreements Secured by Commercial Mortgage Loans, CRE Debt Securities and Counterparty Concentration

The following table summarizes certain characteristics of the Company’s secured revolving repurchase agreements secured by commercial mortgage loans and CRE debt securities, including counterparty concentration risks, at March 31, 2020 (dollars in thousands):

	March 31, 2020
Loan Financings	Commitment Amount		UPB of Collateral		Carrying Value of Collateral⁽¹⁾		Amounts Payable⁽²⁾		Net Counterparty Exposure⁽³⁾		Percent of Stockholders' Equity			Days to Extended Maturity⁽⁴⁾
Goldman Sachs Bank	$	750,000	$	221,728	$	222,930	$	147,590	$	75,340		6.1	%		871
Wells Fargo		750,000		494,959		496,228		360,718		135,510		11.0	%		748
Barclays		750,000		742,729		742,062		589,911		152,151		12.4	%		865
Morgan Stanley Bank⁽⁴⁾		500,000		578,177		576,930		441,432		135,498		11.0	%	N/A
JP Morgan Chase Bank		400,000		294,041		290,813		220,725		70,088		5.7	%		1,237
US Bank		189,490		98,272		98,230		75,531		22,699		1.8	%		1,561
Subtotal / Weighted Average	$	3,339,490	$	2,429,906	$	2,427,193	$	1,835,907	$	591,286					932

CRE Debt Securities Financings	Commitment Amount		Impaired Face Value		Carrying Value of Collateral⁽¹⁾		Amounts Payable⁽²⁾		Net Counterparty Exposure⁽³⁾		Percent of Stockholders' Equity			Days to Extended Maturity⁽⁴⁾
Goldman Sachs Bank	$	73,366	$	59,687	$	73,667	$	73,497	$	170		0.0	%		10
JP Morgan		437,323		438,297		438,819		437,495		1,324		0.1	%		8
Wells Fargo		97,592		115,585		103,028		97,782		5,246		0.4	%		19
Royal Bank of Canada		—		—		—		—		—		—			—
Subtotal / Weighted Average	$	608,281	$	613,569	$	615,514	$	608,774	$	6,740					10

Total / Weighted Average - Loans and CRE Debt Securities	$	3,947,771	$	3,043,475	$	3,042,707	$	2,444,681	$	598,026					652

(1)

Loan amounts shown in the table include interest receivable of $12.0 million and are net of premium, discount and origination fees of $14.7 million. CRE debt securities shown in the table include interest receivable of $1.7 million and are net of premium, discount, and unrealized gains of $0.3 million.

(2)	Loan amounts shown in the table include interest payable of $1.4 million and do not reflect unamortized deferred financing fees of $8.7 million. CRE debt securities shown in the table include interest payable of $0.5 million.

(3)

Loan amounts represent the net carrying value of the commercial real estate assets sold under agreements to repurchase, including accrued interest plus any cash or assets on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest. CRE debt securities represent the net carrying value of AFS securities sold under agreements to repurchase, including accrued interest plus any cash or assets on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest.

(4)

The secured revolving repurchase agreement provided by Morgan Stanley Bank is excluded from the “Days to Extended Maturity” column because it has no limit on the maximum number of permitted extensions, subject to satisfaction of certain conditions and approvals. For borrowings secured by CRE debt securities, the extended maturity represents the sooner of the next maturity date of the CRE debt securities, the secured revolving repurchase agreement, or the roll-over date for the applicable underlying trade confirmation subsequent to March 31, 2020. These contracts typically have terms of 30 days. Subsequent to March 31, 2020, the contracts with JP Morgan were rolled day-to-day.

The following table summarizes certain characteristics of the Company’s secured revolving repurchase agreements secured by commercial mortgage loans and CRE debt securities, including counterparty concentration risks, at December 31, 2019 (dollars in thousands):

	December 31, 2019
Loan Financings	Commitment Amount		UPB of Collateral		Carrying Value of Collateral⁽¹⁾		Amounts Payable⁽²⁾		Net Counterparty Exposure⁽³⁾		Percent of Stockholders' Equity			Days to Extended Maturity⁽⁴⁾
Goldman Sachs Bank	$	750,000	$	288,032	$	289,674	$	45,900	$	243,774		16.6	%		962
Wells Fargo		750,000		593,742		594,832		395,039		199,793		13.6	%		839
Barclays		750,000		542,927		542,191		432,399		109,792		7.5	%		956
Morgan Stanley Bank⁽⁴⁾		500,000		519,638		518,048		395,356		122,692		8.4	%	N/A
JP Morgan Chase Bank		400,000		300,677		297,248		218,744		78,504		5.4	%		1,328
US Bank		152,240		173,741		173,045		136,734		36,311		2.5	%		1,652
Subtotal / Weighted Average	$	3,302,240	$	2,418,757	$	2,415,038	$	1,624,172	$	790,866					1,062

CRE Debt Securities Financings	Commitment Amount		UPB of Collateral		Carrying Value of Collateral⁽¹⁾		Amounts Payable⁽²⁾		Net Counterparty Exposure⁽³⁾		Percent of Stockholders' Equity			Days to Extended Maturity⁽⁴⁾
Goldman Sachs Bank	$	81,143	$	94,629	$	108,414	$	81,362	$	27,052		1.8	%		12
JP Morgan		475,881	$	544,105	$	546,260	$	476,307	$	69,953		4.8	%		17
Wells Fargo		135,774	$	161,153	$	148,738	$	136,021	$	12,717		0.9	%		16
Royal Bank of Canada		—		—		—		—		—		—			—
Subtotal / Weighted Average	$	692,798	$	799,887	$	803,412	$	693,690	$	109,722					16

Total / Weighted Average - Loans and CRE Debt Securities	$	3,995,038	$	3,218,644	$	3,218,450	$	2,317,862	$	900,588					685

(1)

Loan amounts shown in the table include interest receivable of $13.0 million and are net of premium, discount and origination fees of $16.7 million. CRE debt securities shown in the table include interest receivable of $2.3 million and are net of premium, discount, and unrealized gains of $1.2 million.

(2)	Loan amounts shown in the table include interest payable of $2.5 million and do not reflect unamortized deferred financing fees of $10.3 million. CRE debt securities shown in the table include interest payable of $0.9 million.

(3)

Loan amounts represent the net carrying value of the commercial real estate assets sold under agreements to repurchase, including accrued interest plus any cash or assets on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest. CRE debt securities represent the net carrying value of AFS securities sold under agreements to repurchase, including accrued interest plus any cash or assets on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest.

(4)

The secured revolving repurchase agreement provided by Morgan Stanley Bank is excluded from the “Days to Extended Maturity” column because it has no limit on the maximum number of permitted extensions, subject to satisfaction of certain conditions and approvals. For borrowings secured by CRE debt securities, the extended maturity represents the sooner of the next maturity date of the CRE debt securities, the secured revolving repurchase agreement, or the roll-over date for the applicable underlying trade confirmation, subsequent to December 31, 2019. These contracts typically have terms of 30 days.

Schedule of Maturities (Tables)

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Schedule of Future Principal Payments

The future principal payments for the five years subsequent to March 31, 2020 and thereafter are as follows (in thousands):

	Secured revolving repurchase agreements			Collateralized loan obligations		Senior secured and secured credit agreements		Asset-specific financing
2020	$	1,357,747	⁽¹⁾	$	452,481	$	208,280	$	77,000
2021		422,933			745,896		—		—
2022		662,133			563,845		—		—
2023		—			62,299		—		—
2024		—			—		—		—
Thereafter		—			—		—		—
Total	$	2,442,813		$	1,824,521	$	208,280	$	77,000

(1)	A secured revolving purchase agreement with outstanding borrowings of $441.4 million at March 31, 2020 was extended on May 4, 2020 through May 4, 2021.

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2020

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):

	March 31, 2020
			Fair Value
	Carrying Value		Level I		Level II		Level III
Financial Assets
Available for sale CRE Debt Securities	$	604,801	$	604,801	$	—	$	—
Loans Held for Investment		5,020,695		—		—		4,983,304
Financial Liabilities
Collateralized Loan Obligations		1,812,052		—		—		1,778,165
Secured Financing Arrangements		2,718,348		—		—		2,652,964

	December 31, 2019
			Fair Value
	Carrying Value		Level I		Level II		Level III
Financial Assets
Available for sale CRE Debt Securities	$	787,552	$	—	$	787,552	$	—
Loans Held for Investment		4,980,389		—		—		5,004,379
Financial Liabilities
Collateralized Loan Obligations		1,806,428		—		—		1,806,428
Secured Financing Arrangements		2,525,128		—		—		2,525,128

Related Party Transactions (Tables)

3 Months Ended

Mar. 31, 2020

Summary of Management Fees and Incentive Management Fees Incurred and Paid Pursuant to Management Agreement

For the three months ended March 31, 2020 and 2019, the Company incurred and paid the following management fees and incentive management fees pursuant to the Management Agreement (dollars in thousands):

	Three Months Ended March 31
	2020		2019
Management Agreement fees incurred	$	5,000	$	6,508
Management Agreement fees paid		7,252		6,100

Earnings per Share (Tables)

3 Months Ended

Mar. 31, 2020

Earnings Per Share [Abstract]

Schedule of Calculation of Basic and Diluted Earnings per Common Share

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

	Three Months Ended March 31,
	2020			2019
Net Income (Loss) Attributable to TPG RE Finance Trust, Inc.	$	(232,793	)	$	28,409
Participating Securities' Share in Earnings (Loss)		(268	)		(141	)
Net Income (Loss) Attributable to Common Stockholders	$	(233,061	)	$	28,268
Weighted Average Common Shares Outstanding, Basic and Diluted		76,465,322			68,294,736
Per Common Share Amount, Basic and Diluted	$	(3.05	)	$	0.42

Share-based Incentive Plan (Tables)

3 Months Ended

Mar. 31, 2020

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Schedule of Awarded Shares Vesting Period

Generally, the shares vest in installments over a four-year period, pursuant to the terms of the award and the Incentive Plan. The following table presents the number of shares associated with outstanding awards that will vest over the next four years. Shares presented for the current year, 2020, include shares which have vested during the period from January 1, 2020 to March 31, 2020.

Vesting Year	Shares of Common Stock
2020		229,521
2021		229,522
2022		102,389
2023		62,574
		624,006

Concentration of Credit Risk (Tables)

3 Months Ended

Mar. 31, 2020

Loans And Leases Receivable Disclosure [Line Items]

Summary of Loan Portfolio by Property/ Loan Category Type

A summary of the loan portfolio by property type as of March 31, 2020 and December 31, 2019 based on total loan commitment and current unpaid principal balance (“UPB”) is as follows (dollars in thousands):

	March 31, 2020
Property Type	Loan Commitment		Unfunded Commitment		% of Loan Commitment			Loan UPB		% of Loan UPB
Office	$	2,808,164	$	452,385		48.7	%	$	2,355,779		46.1	%
Multifamily		1,361,596		89,834		23.6			1,271,762		24.8
Hotel		752,293		33,390		13.1			718,903		14.1
Mixed Use		604,993		71,475		10.5			533,518		10.4
Condominium		91,651		1,524		1.6			90,127		1.8
Retail		33,000		2,281		0.6			30,719		0.6
Other		112,000		—		1.9			112,000		2.2
Total	$	5,763,697	$	650,889		100.0	%	$	5,112,808		100.0	%

	December 31, 2019
Property Type	Loan Commitment		Unfunded Commitment		% of Loan Commitment			Loan UPB		% of Loan UPB
Office	$	2,925,749	$	438,800		52.0	%	$	2,486,949		49.9	%
Multifamily		1,104,946		69,061		19.6			1,035,885		20.7
Hotel		752,293		40,088		13.4			712,205		14.2
Mixed-Use		604,993		78,835		10.7			526,158		10.5
Condominium		95,784		1,524		1.7			94,260		1.9
Retail		33,000		2,281		0.6			30,719		0.6
Other		112,000		—		2.0			112,000		2.2
Total	$	5,628,765	$	630,589		100.0	%	$	4,998,176		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 as of March 31, 2020 and December 31, 2019 is as follows (dollars in thousands):

	March 31, 2020
Geographic Region	Loan Commitment		Unfunded Commitment		% of Loan Commitment			Loan UPB		% of Loan UPB
East	$	2,474,224	$	260,332		42.9	%	$	2,213,892		43.2	%
South		1,452,199		134,718		25.3			1,317,481		25.8
West		1,320,823		184,484		22.9			1,136,339		22.2
Midwest		428,351		67,810		7.4			360,541		7.1
Various		88,100		3,545		1.5			84,555		1.7
Total	$	5,763,697	$	650,889		100.0	%	$	5,112,808		100.0	%

	December 31, 2019
Geographic Region	Loan Commitment		Unfunded Commitment		% of Loan Commitment			Loan UPB		% of Loan UPB
East	$	2,182,659	$	214,938		38.7	%	$	1,967,721		39.4	%
South		1,342,794		124,939		23.9			1,217,855		24.4
West		1,397,431		201,690		24.8			1,195,741		23.9
Midwest		482,804		83,178		8.6			399,626		8.0
Various		223,077		5,844		4.0			217,233		4.3
Total	$	5,628,765	$	630,589		100.0	%	$	4,998,176		100.0	%

Loan Category

Loans And Leases Receivable Disclosure [Line Items]

Summary of Loan Portfolio by Property/ Loan Category Type

A summary of the loan portfolio by category as of March 31, 2020 and December 31, 2019 based on total loan commitment and current UPB is as follows (dollars in thousands):

	March 31, 2020
Loan Category	Loan Commitment		Unfunded Commitment		% of Loan Commitment			Loan UPB		% of Loan UPB
Bridge	$	1,974,017	$	56,756		34.2	%	$	1,917,261		37.5	%
Light Transitional		1,962,801		219,359		34.1			1,743,442		34.1
Moderate Transitional		1,791,879		359,774		31.1			1,432,105		2.8
Construction		35,000		15,000		0.6			20,000		0.4
Total	$	5,763,697	$	650,889		100.0	%	$	5,112,808		100.0	%

	December 31, 2019
Loan Category	Loan Commitment		Unfunded Commitment		% of Loan Commitment			Loan UPB		% of Loan UPB
Bridge	$	2,001,962	$	49,057		35.6	%	$	1,952,905		39.1	%
Light Transitional		1,890,762		219,138		33.6			1,671,624		33.4
Moderate Transitional		1,701,041		347,394		30.2			1,353,647		27.1
Construction		35,000		15,000		0.6			20,000		0.4
Total	$	5,628,765	$	630,589		100.0	%	$	4,998,176		100.0	%

Loan commitments represent principal commitments made by the Company at March 31, 2020 and December 31, 2019, respectively.

Summary of Significant Accounting Policies - Additional Information (Details)			1 Months Ended	3 Months Ended
	May 04, 2020	Jan. 24, 2020 shares	Apr. 29, 2020 USD ($) Investment	Mar. 31, 2020 USD ($) Loan shares	Feb. 14, 2020 shares	Dec. 31, 2019 USD ($) shares
Significant Accounting Policies [Line Items]
Percentage of senior mortgage loan transferred to third-party				100.00%
Common stock, shares outstanding \| shares				76,650,996		74,886,113
Common stock, authorized shares \| shares				302,500,000		300,000,000
Maximum insured amount of each cash account \| $				$ 250,000		$ 250,000
Cash \| $				58,400,000		$ 56,900,000
Substantial doubt about going concern to repay maturing debt balances \| $				$ 432,200,000
Substantial doubt about going concern, management's evaluation				However, with consideration of the above actions taken, Management projects that the Company will not have sufficient liquidity to repay maturing debt balances of $432.2 million and meet its obligations as they become due to sustain operations through at least one year following the date the consolidated financial statements are issued. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.
Substantial doubt about going concern, within one year [true false]				true
Substantial doubt about going concern, management's plans, substantial doubt alleviated				In response to these conditions, Management’s plans include the intention to execute extensions with the Company’s lenders during 2020, and believes that such extensions are probable of occurring, which is expected to extend the maturity dates until May 2022 or after. The Company has a history of successfully executing extensions with these lenders. As a result, the Company has concluded that management’s plans are probable of being achieved to alleviate substantial doubt about the Company’s ability to continue as a going concern.
Subsequent Event \| Morgan Stanley \| Repurchase Agreements
Significant Accounting Policies [Line Items]
Maturity Date	May 04, 2021
CRE Debt Securities \| Subsequent Event
Significant Accounting Policies [Line Items]
Number of investments sold \| Investment			49
Aggregate face value of debt securities \| $			$ 961,300,000
Repayment of secured indebtedness \| $			722,700,000
Proceeds from sale of debt securities \| $			$ 35,200,000
Class A Common Stock
Significant Accounting Policies [Line Items]
Common stock, shares outstanding \| shares				0		1,136,665
Common stock, authorized shares \| shares				0		2,500,000
Class A Shares Converted in to Common Stock
Significant Accounting Policies [Line Items]
Common stock, shares issued \| shares		1,136,665
Common stock, authorized shares \| shares					2,500,000
Commercial Real Estate Loans \| Minimum
Significant Accounting Policies [Line Items]
Number of performance loan \| Loan				100,000

Summary of Significant Accounting Policies - Schedule of Cumulative Impact of Adoption of ASU 2016-13 on Indicated Line Items of Consolidated Balance Sheet (Details) - USD ($)
$ in Thousands

Mar. 31, 2020

Jan. 01, 2020

Dec. 31, 2019

Assets:

^[1]

$ 5,096,353

$ 4,980,389

Loan Held for Investment, net

^[1]

(75,658)

^[1]

5,020,695

4,980,389

Liabilities:

^[1]

17,834

8,176

Equity:

^[1]

$ (313,765)

$ (28,108)

ASU 2016-13

Assets:

$ 4,980,389

Loan Held for Investment, net

(17,783)

4,962,606

Liabilities:

10,038

Equity:

ASU 2016-13 | Cumulative Effect of Adopting ASU 2016-13

(47,753)

Assets:

Loan Held for Investment, net

(17,783)

(17,783)

Liabilities:

1,862

Equity:

Accounts Notes And Loans Receivable [Line Items]

$ (19,645)

[1]

The Company’s consolidated Total Assets and Total Liabilities at March 31, 2020 include assets and liabilities of variable interest entities (“VIEs”) of $2.3 billion and $1.8 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities at December 31, 2019 include assets and liabilities of VIEs of $2.2 billion and $1.8 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

Loans Held for Investment and the Allowance for Credit Losses - Additional Information (Details)
$ in Thousands

3 Months Ended

Jan. 01, 2020

USD ($)

Mar. 31, 2020

USD ($)

Rating

Loan

Mar. 31, 2019

USD ($)

Dec. 31, 2019

USD ($)

Rating

Accrued interest receivable relating to loans held for investment

^[1]

$ 5,020,695

$ 4,980,389

5,763,697

5,628,765

Unamortized loan fees and discounts included in Loans Held for Investment

650,889

630,589

16,455

$ 17,787

Accelerated fee component of prepayment fees

$ 300

$ 600

Weighted Average Risk Rating | Rating

3.1

2.9

Allowance for credit loss increase

$ 83,000

Unfunded Loan Commitment

Accounts Notes And Loans Receivable [Line Items]

Allowance for credit loss increase

$ 63,300

ASU 2016-13

Accounts Notes And Loans Receivable [Line Items]

Accrued interest receivable relating to loans held for investment

4,962,606

Allowance for credit loss increase

$ 19,600

Moved to Category 4 Risk Rating

Accounts Notes And Loans Receivable [Line Items]

Number of loans selected for risk rate changes | Loan

7

Moved from Category 2 Risk Rating to Category 4 Risk Rating

Accounts Notes And Loans Receivable [Line Items]

Number of loans selected for risk rate changes | Loan

2

Moved From Category Two Risk Rating Into Category Three Risk Rating

Accounts Notes And Loans Receivable [Line Items]

Number of loans selected for risk rate changes | Loan

2

Moved from Category 3 Risk Rating to Category 4 Risk Rating

Accounts Notes And Loans Receivable [Line Items]

Number of loans selected for risk rate changes | Loan

2

Moved from Category 3 Risk Rating to Category 4 Risk Rating

Accounts Notes And Loans Receivable [Line Items]

Number of loans selected for risk rate changes | Loan

1

German American Capital Corporation | Originated or Acquired 5 Mortgage Loans

Accounts Notes And Loans Receivable [Line Items]

Number of mortgage loans originated or acquired | Loan

5

$ 437,400

353,500

Accrued Interest Receivable

83,900

Accounts Notes And Loans Receivable [Line Items]

Accrued interest receivable relating to loans held for investment

$ 15,400

[1]

The Company’s consolidated Total Assets and Total Liabilities at March 31, 2020 include assets and liabilities of variable interest entities (“VIEs”) of $2.3 billion and $1.8 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities at December 31, 2019 include assets and liabilities of VIEs of $2.2 billion and $1.8 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

Loans Held for Investment and the Allowance for Credit Losses - Schedule of Overall Statistics for Loan Portfolio (Details)
$ in Thousands

3 Months Ended

Mar. 31, 2020

USD ($)

Loan

Dec. 31, 2019

USD ($)

Loans And Leases Receivable Disclosure [Line Items]

Floating rate loans (by unpaid principal balance)

100.00%

$ 5,763,697

$ 5,628,765

5,112,808

4,998,176

Loans And Leases Receivable Disclosure [Line Items]

650,889

630,589

Carrying value

^[1]

$ 5,020,695

$ 4,980,389

Balance Sheet Portfolio

Number of loans | Loan

66

Floating rate loans (by unpaid principal balance)

100.00%

$ 5,763,697

5,112,808

Weighted average credit spread

650,889

Carrying value

$ 5,020,695

3.40%

Weighted average all-in yield

5.40%

Weighted average term to extended maturity (in years)

3 years 8 months 12 days

Weighted average LTV

65.70%

Total Loan Portfolio

Loans And Leases Receivable Disclosure [Line Items]

Number of loans | Loan

67

Floating rate loans (by unpaid principal balance)

100.00%

$ 5,895,697

5,112,808

Weighted average credit spread

650,889

Carrying value

$ 5,020,695

3.40%

Weighted average all-in yield

5.40%

Weighted average term to extended maturity (in years)

3 years 8 months 12 days

Weighted average LTV

65.70%

[1]

The Company’s consolidated Total Assets and Total Liabilities at March 31, 2020 include assets and liabilities of variable interest entities (“VIEs”) of $2.3 billion and $1.8 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities at December 31, 2019 include assets and liabilities of VIEs of $2.2 billion and $1.8 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

Loans Held for Investment and the Allowance for Credit Losses - Schedule of Overall Statistics for Loan Portfolio (Parenthetical) (Details) $ in Millions	Mar. 31, 2020 USD ($)
Loans And Leases Receivable Disclosure [Abstract]
Non-consolidated senior interest outstanding	$ 132.0
Percentage of loans subject to yield maintenance or other prepayment restrictions	66.00%
Percentage of loans open to repayment by borrower without penalty	34.00%

Loans Held for Investment and the Allowance for Credit Losses - Schedule of Mortgage Loan Investment Portfolio by Loan Seniority (Details) - USD ($)
$ in Thousands

Mar. 31, 2020

Dec. 31, 2019

Loans And Leases Receivable Disclosure [Line Items]

Unamortized Premium (Discount), Loan Origination Fees, net

$ 5,112,808

$ 4,998,176

(16,455)

(17,787)

Loans And Leases Receivable Disclosure [Line Items]

^[1]

(75,658)

Carrying Amount

^[1]

5,020,695

4,980,389

Senior Loans

Unamortized Premium (Discount), Loan Origination Fees, net

5,092,808

4,978,176

(16,199)

(17,500)

Subordinated and Mezzanine Loans

(73,620)

Carrying Amount

5,002,989

4,960,676

Loans And Leases Receivable Disclosure [Line Items]

Unamortized Premium (Discount), Loan Origination Fees, net

20,000

(256)

(287)

Accounts Notes And Loans Receivable [Line Items]

(2,038)

Carrying Amount

$ 17,706

$ 19,713

[1]

The Company’s consolidated Total Assets and Total Liabilities at March 31, 2020 include assets and liabilities of variable interest entities (“VIEs”) of $2.3 billion and $1.8 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities at December 31, 2019 include assets and liabilities of VIEs of $2.2 billion and $1.8 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

Loans Held for Investment and the Allowance for Credit Losses - Summary of Loan Portfolio Activity (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020 USD ($)
Loans And Leases Receivable Disclosure [Abstract]
Balance at December 31, 2019	$ 4,980,389
Loans originated and acquired	351,650
Additional fundings	61,720
Amortization of origination fees	3,213
Collection of principal	(300,619)
Change in allowance for credit losses	(75,658)
Balance at March 31, 2020	$ 5,020,695

Loans Held for Investment and the Allowance for Credit Losses - Summary of Amortized Cost Basis of Loans by Origination Year Grouped by Risk Rating (Details) $ in Thousands	Mar. 31, 2020 USD ($)
Accounts Notes And Loans Receivable [Line Items]
Amortized cost basis of loans by origination year, 2020	$ 353,127
Amortized cost basis of loans by origination year, 2019	2,316,626
Amortized cost basis of loans by origination year, 2018	1,619,321
Amortized cost basis of loans by origination year, 2017	779,222
Amortized cost basis of loans by origination year, 2016	28,057
Amortized cost basis of loans by origination year, Total	5,096,353
Senior Loans
Accounts Notes And Loans Receivable [Line Items]
Amortized cost basis of loans by origination year, 2020	353,127
Amortized cost basis of loans by origination year, 2019	2,296,882
Amortized cost basis of loans by origination year, 2018	1,619,321
Amortized cost basis of loans by origination year, 2017	779,222
Amortized cost basis of loans by origination year, 2016	28,057
Amortized cost basis of loans by origination year, Total	5,076,609
Senior Loans \| Rating 2
Accounts Notes And Loans Receivable [Line Items]
Amortized cost basis of loans by origination year, 2018	344,297
Amortized cost basis of loans by origination year, 2017	85,254
Amortized cost basis of loans by origination year, Total	429,551
Senior Loans \| Rating 3
Accounts Notes And Loans Receivable [Line Items]
Amortized cost basis of loans by origination year, 2020	353,127
Amortized cost basis of loans by origination year, 2019	1,766,882
Amortized cost basis of loans by origination year, 2018	1,116,492
Amortized cost basis of loans by origination year, 2017	278,684
Amortized cost basis of loans by origination year, Total	3,515,185
Senior Loans \| Rating 4
Accounts Notes And Loans Receivable [Line Items]
Amortized cost basis of loans by origination year, 2019	530,000
Amortized cost basis of loans by origination year, 2018	158,532
Amortized cost basis of loans by origination year, 2017	315,820
Amortized cost basis of loans by origination year, 2016	28,057
Amortized cost basis of loans by origination year, Total	1,032,409
Senior Loans \| Rating 5
Accounts Notes And Loans Receivable [Line Items]
Amortized cost basis of loans by origination year, 2017	99,464
Amortized cost basis of loans by origination year, Total	99,464
Subordinated and Mezzanine Loans
Accounts Notes And Loans Receivable [Line Items]
Amortized cost basis of loans by origination year, 2019	19,744
Amortized cost basis of loans by origination year, Total	19,744
Subordinated and Mezzanine Loans \| Rating 3
Accounts Notes And Loans Receivable [Line Items]
Amortized cost basis of loans by origination year, 2019	19,744
Amortized cost basis of loans by origination year, Total	$ 19,744

Loans Held for Investment and the Allowance for Credit Losses - Summary of Carrying Values Net of Allowance for Credit Loss and Results of Internal Risk Rating Review Performed (Details) $ in Thousands	Mar. 31, 2020 USD ($) Rating	Dec. 31, 2019 USD ($) Rating
Accounts Notes And Loans Receivable [Line Items]
Carrying Value	$ 5,020,695	$ 4,980,389
Weighted Average Risk Rating \| Rating	3.1	2.9
Rating 2
Accounts Notes And Loans Receivable [Line Items]
Carrying Value	$ 426,306	$ 903,393
Rating 3
Accounts Notes And Loans Receivable [Line Items]
Carrying Value	3,502,269	3,868,696
Rating 4
Accounts Notes And Loans Receivable [Line Items]
Carrying Value	1,017,414	$ 208,300
Rating 5
Accounts Notes And Loans Receivable [Line Items]
Carrying Value	$ 74,706

Loans Held for Investment and the Allowance for Credit Losses - Summary of Activity in Allowance for Credit Losses for Mortgage Loan Investment Portfolio by Class of Financing Receivable (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020 USD ($)
Accounts Notes And Loans Receivable [Line Items]
Allowance for credit losses for loans held for investment	$ 75,658
Allowance for credit losses on unfunded loan commitments	7,335
Total allowance for credit losses	82,993
Loans Held for Investment
Accounts Notes And Loans Receivable [Line Items]
Credit loss expense	57,875
Loans Held for Investment \| ASU 2016-13
Accounts Notes And Loans Receivable [Line Items]
Impact of adopting	17,783
Unfunded Loan Commitment
Accounts Notes And Loans Receivable [Line Items]
Credit loss expense	5,473
Unfunded Loan Commitment \| ASU 2016-13
Accounts Notes And Loans Receivable [Line Items]
Impact of adopting	1,862
Senior Loans
Accounts Notes And Loans Receivable [Line Items]
Allowance for credit losses for loans held for investment	73,620
Allowance for credit losses on unfunded loan commitments	5,807
Total allowance for credit losses	79,427
Senior Loans \| Loans Held for Investment
Accounts Notes And Loans Receivable [Line Items]
Credit loss expense	56,717
Senior Loans \| Loans Held for Investment \| ASU 2016-13
Accounts Notes And Loans Receivable [Line Items]
Impact of adopting	16,903
Senior Loans \| Unfunded Loan Commitment
Accounts Notes And Loans Receivable [Line Items]
Credit loss expense	3,945
Senior Loans \| Unfunded Loan Commitment \| ASU 2016-13
Accounts Notes And Loans Receivable [Line Items]
Impact of adopting	1,862
Subordinated and Mezzanine Loans
Accounts Notes And Loans Receivable [Line Items]
Allowance for credit losses for loans held for investment	2,038
Allowance for credit losses on unfunded loan commitments	1,528
Total allowance for credit losses	3,566
Subordinated and Mezzanine Loans \| Loans Held for Investment
Accounts Notes And Loans Receivable [Line Items]
Credit loss expense	1,158
Subordinated and Mezzanine Loans \| Loans Held for Investment \| ASU 2016-13
Accounts Notes And Loans Receivable [Line Items]
Impact of adopting	880
Subordinated and Mezzanine Loans \| Unfunded Loan Commitment
Accounts Notes And Loans Receivable [Line Items]
Credit loss expense	$ 1,528

Loans Held for Investment and the Allowance for Credit Losses - Summary of Aging Analysis on Amortized Cost Basis of Mortgage Loans by Class of Loans (Details) - USD ($)
$ in Thousands

Mar. 31, 2020

Dec. 31, 2019

Current

$ 5,068,296

Accounts Notes And Loans Receivable [Line Items]

^[1]

5,096,353

$ 4,980,389

30-59 Days

Total Loans Past Due

28,057

Senior Loans

Accounts Notes And Loans Receivable [Line Items]

Current

5,048,552

Senior Loans | 30-59 Days

5,076,609

Accounts Notes And Loans Receivable [Line Items]

Total Loans Past Due

28,057

Subordinated and Mezzanine Loans

Accounts Notes And Loans Receivable [Line Items]

Current

19,744

Schedule Of Available For Sale Securities [Line Items]

$ 19,744

[1]

The Company’s consolidated Total Assets and Total Liabilities at March 31, 2020 include assets and liabilities of variable interest entities (“VIEs”) of $2.3 billion and $1.8 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities at December 31, 2019 include assets and liabilities of VIEs of $2.2 billion and $1.8 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

Available-for-Sale Debt Securities - Additional Information (Details)	3 Months Ended
	Mar. 31, 2020 USD ($) Investment	Mar. 31, 2019 USD ($)	Dec. 31, 2019 Investment
Schedule Of Available For Sale Securities [Line Items]
Aggregate purchase price of investments	$ 168,888,000	$ 263,868,000
Allowance for credit loss	$ 82,993,000
Weighted average contractual maturity, Terms	3 years
CRE CLO Investments
Schedule Of Available For Sale Securities [Line Items]
Number of investments purchased \| Investment	10
Weighted average coupon rate	2.10%
Aggregate purchase price of investments	$ 169,000,000.0
Debt securities available-for-sale	1,700,000
Total cash consideration including selling costs and fees	$ 151,600,000
Number of investments sold \| Investment	11
Loss on sale of investments	$ (36,200,000)
CMBS and CRE CLO Investments
Schedule Of Available For Sale Securities [Line Items]
Number of Investments \| Investment	37		38
CRE Debt Securities
Schedule Of Available For Sale Securities [Line Items]
Impairment of investment	$ 167,300,000
Allowance for credit loss	0
Securities in unrealized loss position	0
Accrued interest excluded from amortized cost basis	$ 1,700,000

Available-for-Sale Debt Securities - Details of Amortized Cost, Fair Value and Impairment Charge of CRE Debt Securities (Details) - USD ($)
$ in Thousands

Mar. 31, 2020

Dec. 31, 2019

Unamortized Premium (Discount), net

$ 767,334

$ 786,349

Impaired Face Amount

604,488

236

152

Amortized Cost

604,724

786,501

Gross Unrealized Gain

77

1,051

Estimated Fair Value

^[1]

604,801

787,552

Schedule Of Available For Sale Securities [Line Items]

767,334

786,349

CRE CLO Investments

Unamortized Premium (Discount), net

731,176

750,187

Impaired Face Amount

575,480

291

207

Amortized Cost

575,771

750,394

Gross Unrealized Gain

1,006

Estimated Fair Value

575,771

751,400

Commercial Mortgage-Backed Securities

731,176

750,187

Schedule Of Available For Sale Securities [Line Items]

Unamortized Premium (Discount), net

36,158

36,162

Impaired Face Amount

29,008

(55)

Amortized Cost

28,953

36,107

Gross Unrealized Gain

77

45

Estimated Fair Value

29,030

36,152

Total investment in CRE debt securities, at amortized cost and estimated fair value

$ 36,158

$ 36,162

[1]

The Company’s consolidated Total Assets and Total Liabilities at March 31, 2020 include assets and liabilities of variable interest entities (“VIEs”) of $2.3 billion and $1.8 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities at December 31, 2019 include assets and liabilities of VIEs of $2.2 billion and $1.8 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

Available-for-Sale Debt Securities - CRE Debt Securities by Contractual Maturity (Details) - USD ($)
$ in Thousands

Mar. 31, 2020

Dec. 31, 2019

Estimated Fair Value

^[1]

$ 604,801

$ 787,552

After one, within five years

Amortized Cost

Within five years

1,119

1,126

After five years

603,605

785,375

Total investment in CRE debt securities, at amortized cost and estimated fair value

604,724

786,501

Estimated Fair Value

Within five years

1,196

After one, within five years

1,143

After five years

603,605

786,409

Total investment in CRE debt securities, at amortized cost and estimated fair value

$ 604,801

$ 787,552

[1]

The Company’s consolidated Total Assets and Total Liabilities at March 31, 2020 include assets and liabilities of variable interest entities (“VIEs”) of $2.3 billion and $1.8 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities at December 31, 2019 include assets and liabilities of VIEs of $2.2 billion and $1.8 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

Variable Interest Entities and Collateralized Loan Obligations - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019	Oct. 25, 2019
Collateralized Loan Obligation
Variable Interest Entities And Collateralized Loan Obligation [Line Items]
Principal amount of notes issued	$ 1,834,760,000	$ 1,834,761,000
Unamortized issuance costs	12,469,000	$ 13,632,000
FL3-Notes
Variable Interest Entities And Collateralized Loan Obligation [Line Items]
Cash available to acquire eligible assets	0.0
FL3-Notes \| Collateralized Loan Obligation
Variable Interest Entities And Collateralized Loan Obligation [Line Items]
Debt issuance costs, gross	7,800,000
Unamortized issuance costs	6,800,000
Interest expense excluding amortization of deferred financing costs	7,300,000
FL3-Securities
Variable Interest Entities And Collateralized Loan Obligation [Line Items]
Liquidation preference notional amount			$ 1,000
FL2-Notes \| Collateralized Loan Obligation
Variable Interest Entities And Collateralized Loan Obligation [Line Items]
Debt issuance costs, gross	8,700,000
Unamortized issuance costs	5,600,000
Interest expense excluding amortization of deferred financing costs	6,000,000.0
TPG Real Estate Finance 2019-FL3 Issuer, Ltd. and TPG RE Finance Trust 2019-FL3 Co-Issuer, LLC
Variable Interest Entities And Collateralized Loan Obligation [Line Items]
Preferred shares par value per share			$ 0.001
TPG Real Estate Finance 2019-FL3 Issuer, Ltd. and TPG RE Finance Trust 2019-FL3 Co-Issuer, LLC \| FL3-Notes
Variable Interest Entities And Collateralized Loan Obligation [Line Items]
Principal amount of notes issued			$ 1,230,300,000
FL3-Co-Issuer
Variable Interest Entities And Collateralized Loan Obligation [Line Items]
Principal amount of notes issued			1,039,600,000
F L3 Retention Holder \| FL3-Securities
Variable Interest Entities And Collateralized Loan Obligation [Line Items]
Variable interest entity retained ownership amount			$ 190,700,000
FL3 Mortgage Assets
Variable Interest Entities And Collateralized Loan Obligation [Line Items]
Principal amount of notes issued	157,300,000
Net cash proceeds utilizing replenishment feature	47,300,000
Repayment of existing borrowings including accrued interest	110,000,000.0
Aggregate principal balance	$ 1,200,000,000
Loans held for investment, aggregate unpaid principal balance percentage	24.10%
FL2-Notes \| Collateralized Loan Obligation
Variable Interest Entities And Collateralized Loan Obligation [Line Items]
Principal amount of notes issued	$ 74,300,000
Net cash proceeds utilizing replenishment feature	45,100,000
Repayment of existing borrowings including accrued interest	29,200,000
Cash available to acquire eligible assets	$ 200,000

Variable Interest Entities and Collateralized Loan Obligations - Summary of Variable Interest Entities Assets and Liabilities (Details) - USD ($)
$ in Thousands

Mar. 31, 2020

Dec. 31, 2019

ASSETS

^[1]

$ 103,622

$ 79,182

Accrued Interest and Fees Receivable

^[1]

35,448

13,741

^[1]

28,213

28,107

^[1]

5,020,695

4,980,389

Total Assets

^[1]

5,826,301

5,892,870

Liabilities

^[1]

5,173

6,665

Collateralized Loan Obligations

^[1]

17,834

8,176

^[1]

1,812,052

1,806,428

Variable Interest Entity, Primary Beneficiary

^[1]

7,970

9,520

Deferred Revenue

^[1]

289

164

Total Liabilities

^[1]

4,594,888

4,388,916

ASSETS

19,683

17,075

Accrued Interest and Fees Receivable

407

1,464

1,648

2,178

2,230,345

2,229,034

Total Assets

2,252,083

2,249,751

Liabilities

1,802

2,512

Collateralized Loan Obligations

376

732

1,822,291

1,821,128

4,620

Deferred Revenue

155

Total Liabilities

$ 1,829,244

$ 1,828,992

[1]

The Company’s consolidated Total Assets and Total Liabilities at March 31, 2020 include assets and liabilities of variable interest entities (“VIEs”) of $2.3 billion and $1.8 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities at December 31, 2019 include assets and liabilities of VIEs of $2.2 billion and $1.8 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

Variable Interest Entities and Collateralized Loan Obligations - Schedule of Borrowings and Corresponding Collateral (Details) - USD ($)
$ in Thousands

Mar. 31, 2020

Dec. 31, 2019

Collateralized Loan Obligation

Debt, Carrying Value

^[1]

$ 1,812,052

$ 1,806,428

Collateral (loans), Outstanding Principal

2,230,345

2,229,034

Collateral (loans), Carrying Value

2,230,345

2,229,034

Debt, Face Value

1,834,760

1,834,761

Debt, Carrying Value

$ 1,822,291

$ 1,821,128

[1]

The Company’s consolidated Total Assets and Total Liabilities at March 31, 2020 include assets and liabilities of variable interest entities (“VIEs”) of $2.3 billion and $1.8 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities at December 31, 2019 include assets and liabilities of VIEs of $2.2 billion and $1.8 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

Variable Interest Entities and Collateralized Loan Obligations - Schedule of Weighted Average Spreads and Maturities for Loan Collateral and Borrowings (Details) - Collateralized Loan Obligation	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
TRTX 2018-FL2 \| Collateral (Loan Investments)
Debt Instrument [Line Items]
Weighted Average Spread (%)	3.74%	3.82%
Weighted Average Maturity (Years)	4 years 6 months	4 years 2 months 12 days
TRTX 2018-FL2 \| Debt (Notes Issued)
Debt Instrument [Line Items]
Weighted Average Spread (%)	1.72%	1.72%
Weighted Average Maturity (Years)	17 years 7 months 6 days	17 years 10 months 24 days
TRTX 2019-FL3 \| Collateral (Loan Investments)
Debt Instrument [Line Items]
Weighted Average Spread (%)	3.18%	3.33%
Weighted Average Maturity (Years)	4 years 2 months 12 days	4 years 1 month 6 days
TRTX 2019-FL3 \| Debt (Notes Issued)
Debt Instrument [Line Items]
Weighted Average Spread (%)	1.63%	1.63%
Weighted Average Maturity (Years)	14 years 6 months	14 years 9 months 18 days

Secured Revolving Repurchase Agreements, Senior Secured and Secured Credit Agreements, and Asset-Specific Financing - Additional Information (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2020 USD ($) Agreement	Dec. 31, 2019 USD ($) Agreement
Debt Instrument [Line Items]
Aggregate of borrowings against investment portfolio	$ 170,900,000
Cash proceeds from bond sales	89,800,000
Unpaid margin calls	$ 19,000,000.0
Index Rate	one-month LIBOR	Index Rate
Asset-specific Financing
Debt Instrument [Line Items]
Asset-specific financing principal amount	$ 77,000,000	$ 77,000,000
Institutional Lender \| Asset-specific Financing
Debt Instrument [Line Items]
Asset-specific financing principal amount	$ 77,000,000.0
Initial maturity date	Oct. 09, 2020	Oct. 09, 2020
Institutional Lender \| LIBOR \| Asset-specific Financing
Debt Instrument [Line Items]
Line of credit, spread on variable rate	4.20%
Secured Revolving Repurchase Agreements \| Minimum
Debt Instrument [Line Items]
Period to comply with covenants	90 days
Secured Revolving Repurchase Agreements \| Maximum [Member]
Debt Instrument [Line Items]
Period to comply with covenants	120 days
Senior Secured Credit Agreement \| Bank of America
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	$ 500,000,000
Line of credit facility, outstanding amount	$ 145,600,000
Line of credit, spread on variable rate	1.75%
Line of credit facility, initial maturity date	Sep. 29, 2020
Secured Credit Agreement \| Citibank
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	$ 160,000,000.0
Line of credit facility, outstanding amount	$ 62,600,000
Line of credit facility, initial maturity date	Jul. 12, 2020
Percentage of individual pledged assets	70.00%
Individual pledged assets term	90 days
Secured Credit Agreement \| Citibank \| LIBOR
Debt Instrument [Line Items]
Line of credit, spread on variable rate	2.25%
Index Rate	one-month LIBOR
Senior Secured and Secured Credit Agreements
Debt Instrument [Line Items]
Asset-specific financing principal amount	$ 660,000,000	$ 660,000,000
Senior Secured and Secured Credit Agreements \| Bank of America
Debt Instrument [Line Items]
Recourse guarantee percentage	25.00%	25.00%
Initial maturity date	Sep. 29, 2020	Sep. 29, 2020
Senior Secured and Secured Credit Agreements \| Citibank
Debt Instrument [Line Items]
Recourse guarantee percentage	100.00%	100.00%
Initial maturity date	Jul. 12, 2020	Jul. 12, 2020
Senior Secured and Secured Credit Agreements \| Minimum
Debt Instrument [Line Items]
Period to comply with covenants	90 days
Senior Secured and Secured Credit Agreements \| Maximum [Member]
Debt Instrument [Line Items]
Period to comply with covenants	120 days
Holdco \| Senior Secured Credit Agreement \| Bank of America
Debt Instrument [Line Items]
Recourse guarantee percentage	25.00%
Holdco \| Secured Credit Agreement \| Citibank
Debt Instrument [Line Items]
Recourse guarantee percentage	100.00%
Commercial Mortgage Loans
Debt Instrument [Line Items]
Asset-specific financing principal amount	$ 3,339,490,000	$ 3,302,240,000
CRE Debt Securities
Debt Instrument [Line Items]
Impaired face value of debt securities	613,569,000
Asset-specific financing principal amount	$ 608,281,000	$ 692,798,000
Asset-specific Financing, Secured Revolving Repurchase Agreements and Senior Secured and Secured Credit Agreements
Debt Instrument [Line Items]
Number of repurchase agreements \| Agreement	4	4
Asset-specific Financing, Secured Revolving Repurchase Agreements and Senior Secured and Secured Credit Agreements \| Holdco
Debt Instrument [Line Items]
Recourse guarantee percentage	25.00%	25.00%
Asset-specific Financing, Secured Revolving Repurchase Agreements and Senior Secured and Secured Credit Agreements \| CRE CLO Investments
Debt Instrument [Line Items]
Number of repurchase agreements \| Agreement	37	35
Asset-specific Financing, Secured Revolving Repurchase Agreements and Senior Secured and Secured Credit Agreements \| Commercial Mortgage-Backed Securities
Debt Instrument [Line Items]
Number of repurchase agreements \| Agreement	2	2
Asset-specific Financing, Secured Revolving Repurchase Agreements and Senior Secured and Secured Credit Agreements \| CRE Debt Securities
Debt Instrument [Line Items]
Impaired face value of debt securities	$ 31,200,000
Repurchase Agreements
Debt Instrument [Line Items]
Number of repurchase agreements \| Agreement	6	6
Asset-specific financing principal amount	$ 3,947,771,000	$ 3,995,038,000
Repurchase Agreements \| Holdco
Debt Instrument [Line Items]
Recourse guarantee percentage	25.00%	100.00%
Repurchase Agreements \| Commercial Mortgage Loans
Debt Instrument [Line Items]
Number of repurchase agreements \| Agreement	60	60
Repurchase Agreements \| CRE Debt Securities
Debt Instrument [Line Items]
Asset-specific financing principal amount	$ 608,281,000	$ 692,798,000
Repurchase Agreements \| CRE Debt Securities \| Holdco
Debt Instrument [Line Items]
Recourse guarantee percentage	100.00%	100.00%

Summary of Secured Revolving Repurchase Agreements, Senior Secured and Secured Credit Agreements, and Asset-Specific Financings (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Index Rate	one-month LIBOR	Index Rate
Asset-specific Financing
Debt Instrument [Line Items]
Commitment Amount	$ 77,000	$ 77,000
Balance Outstanding	77,000	77,000
Principal Balance of Collateral	112,000	112,000
Carrying Value of Collateral	109,463	111,436
Senior Secured and Secured Credit Agreements
Debt Instrument [Line Items]
Commitment Amount	660,000	660,000
Maximum Current Availability	451,720	514,363
Balance Outstanding	208,280	145,637
Principal Balance of Collateral	273,571	182,882
Carrying Value of Collateral	272,642	182,882
Repurchase Agreements
Debt Instrument [Line Items]
Commitment Amount	3,947,771	3,995,038
Maximum Current Availability	1,504,958	1,680,621
Balance Outstanding	2,442,813	2,314,417
Principal Balance of Collateral	3,043,475	3,218,156
Carrying Value of Collateral	3,029,051	3,203,256
Asset-specific Financing, Secured Revolving Repurchase Agreements and Senior Secured and Secured Credit Agreements
Debt Instrument [Line Items]
Commitment Amount	4,684,771	4,732,038
Maximum Current Availability	1,956,678	2,194,984
Balance Outstanding	2,728,093	2,537,054
Principal Balance of Collateral	3,429,046	3,513,038
Carrying Value of Collateral	3,411,156	3,497,574
Loans Investment \| Repurchase Agreements
Debt Instrument [Line Items]
Commitment Amount	3,339,490	3,302,240
Maximum Current Availability	1,504,958	1,680,621
Balance Outstanding	1,834,532	1,621,619
Principal Balance of Collateral	2,429,906	2,418,269
Carrying Value of Collateral	2,415,207	2,402,148
CRE Debt Securities
Debt Instrument [Line Items]
Commitment Amount	608,281	692,798
CRE Debt Securities \| Repurchase Agreements
Debt Instrument [Line Items]
Commitment Amount	608,281	692,798
Balance Outstanding	608,281	692,798
Principal Balance of Collateral	613,569	799,887
Carrying Value of Collateral	$ 613,844	$ 801,108
Institutional Lender \| Asset-specific Financing
Debt Instrument [Line Items]
Maturity Date	Oct. 09, 2020	Oct. 09, 2020
Commitment Amount	$ 77,000
Institutional Lender \| Debt Instrument, Interest Rate at 5.1% \| Asset-specific Financing
Debt Instrument [Line Items]
Maturity Date	Oct. 09, 2020
Index Rate	1 Month LIBOR
Weighted Average Credit Spread	4.20%
Interest Rate	5.10%
Commitment Amount	$ 77,000
Balance Outstanding	77,000
Principal Balance of Collateral	112,000
Carrying Value of Collateral	$ 109,463
Institutional Lender \| Debt Instrument, Interest Rate at 5.9% \| Asset-specific Financing
Debt Instrument [Line Items]
Maturity Date		Oct. 09, 2020
Index Rate		1 Month LIBOR
Weighted Average Credit Spread		4.20%
Interest Rate		5.90%
Commitment Amount		$ 77,000
Balance Outstanding		77,000
Principal Balance of Collateral		112,000
Carrying Value of Collateral		$ 111,436
Goldman Sachs \| Debt Instrument, Interest Rate at 3.1% \| Repurchase Agreements
Debt Instrument [Line Items]
Maturity Date	Aug. 19, 2020
Index Rate	1 Month LIBOR
Weighted Average Credit Spread	2.10%
Interest Rate	3.10%
Commitment Amount	$ 750,000
Maximum Current Availability	602,992
Balance Outstanding	147,008
Principal Balance of Collateral	221,728
Carrying Value of Collateral	$ 220,151
Goldman Sachs \| Debt Instrument, Interest Rate at 3.5% \| Repurchase Agreements
Debt Instrument [Line Items]
Maturity Date		Aug. 19, 2020
Index Rate		1 Month LIBOR
Weighted Average Credit Spread		1.80%
Interest Rate		3.50%
Commitment Amount		$ 750,000
Maximum Current Availability		704,563
Balance Outstanding		45,437
Principal Balance of Collateral		288,032
Carrying Value of Collateral		$ 285,962
Goldman Sachs \| Loans Investment \| Repurchase Agreements
Debt Instrument [Line Items]
Maturity Date	Aug. 19, 2020	Aug. 19, 2020
Goldman Sachs \| CRE Debt Securities
Debt Instrument [Line Items]
Commitment Amount	$ 73,366	$ 81,143
Goldman Sachs \| CRE Debt Securities \| Repurchase Agreements
Debt Instrument [Line Items]
Maturity Date	Apr. 10, 2020	Jan. 12, 2020
Goldman Sachs \| CRE Debt Securities \| Debt Instrument, Interest Rate at 2.7% \| Repurchase Agreements
Debt Instrument [Line Items]
Maturity Date		Jan. 12, 2020
Index Rate		1 Month LIBOR
Weighted Average Credit Spread		0.90%
Interest Rate		2.70%
Commitment Amount		$ 81,143
Balance Outstanding		81,143
Principal Balance of Collateral		94,629
Carrying Value of Collateral		$ 94,644
Goldman Sachs \| CRE Debt Securities \| Debt Instrument, Interest Rate at 2.0% \| Repurchase Agreements
Debt Instrument [Line Items]
Maturity Date	Apr. 10, 2020
Index Rate	1 Month LIBOR
Weighted Average Credit Spread	1.10%
Interest Rate	2.00%
Commitment Amount	$ 73,366
Balance Outstanding	73,366
Principal Balance of Collateral	59,687
Carrying Value of Collateral	$ 59,756
Barclays \| Debt Instrument, Interest Rate at 2.5% \| Repurchase Agreements
Debt Instrument [Line Items]
Maturity Date	Aug. 13, 2022
Index Rate	1 Month LIBOR
Weighted Average Credit Spread	1.50%
Interest Rate	2.50%
Commitment Amount	$ 750,000
Maximum Current Availability	160,474
Balance Outstanding	589,526
Principal Balance of Collateral	742,729
Carrying Value of Collateral	$ 740,584
Barclays \| Debt Instrument, Interest Rate at 3.3% \| Repurchase Agreements
Debt Instrument [Line Items]
Maturity Date		Aug. 13, 2022
Index Rate		1 Month LIBOR
Weighted Average Credit Spread		1.50%
Interest Rate		3.30%
Commitment Amount		$ 750,000
Maximum Current Availability		318,240
Balance Outstanding		431,760
Principal Balance of Collateral		542,927
Carrying Value of Collateral		$ 540,725
Barclays \| Loans Investment \| Repurchase Agreements
Debt Instrument [Line Items]
Maturity Date	Aug. 13, 2022	Aug. 13, 2022
Wells Fargo \| Debt Instrument, Interest Rate at 2.7% \| Repurchase Agreements
Debt Instrument [Line Items]
Maturity Date	Apr. 18, 2022
Index Rate	1 Month LIBOR
Weighted Average Credit Spread	1.70%
Interest Rate	2.70%
Commitment Amount	$ 750,000
Maximum Current Availability	389,462
Balance Outstanding	360,538
Principal Balance of Collateral	494,959
Carrying Value of Collateral	$ 492,972
Wells Fargo \| Debt Instrument, Interest Rate at 3.6% \| Repurchase Agreements
Debt Instrument [Line Items]
Maturity Date		Apr. 18, 2022
Index Rate		1 Month LIBOR
Weighted Average Credit Spread		1.80%
Interest Rate		3.60%
Commitment Amount		$ 750,000
Maximum Current Availability		355,372
Balance Outstanding		394,628
Principal Balance of Collateral		593,742
Carrying Value of Collateral		$ 591,238
Wells Fargo \| Loans Investment \| Repurchase Agreements
Debt Instrument [Line Items]
Maturity Date	Apr. 18, 2022	Apr. 18, 2022
Wells Fargo \| CRE Debt Securities
Debt Instrument [Line Items]
Commitment Amount	$ 97,592	$ 135,774
Wells Fargo \| CRE Debt Securities \| Repurchase Agreements
Debt Instrument [Line Items]
Maturity Date	Apr. 19, 2020	Feb. 26, 2020
Wells Fargo \| CRE Debt Securities \| Debt Instrument, Interest Rate at 2.7% \| Repurchase Agreements
Debt Instrument [Line Items]
Maturity Date		Jan. 16, 2020
Index Rate		1 Month LIBOR
Weighted Average Credit Spread		1.00%
Interest Rate		2.70%
Commitment Amount		$ 135,774
Balance Outstanding		135,774
Principal Balance of Collateral		161,153
Carrying Value of Collateral		$ 161,384
Wells Fargo \| CRE Debt Securities \| Debt Instrument, Interest Rate at 2.2% \| Repurchase Agreements
Debt Instrument [Line Items]
Maturity Date	Apr. 19, 2020
Index Rate	1 Month LIBOR
Weighted Average Credit Spread	1.30%
Interest Rate	2.20%
Commitment Amount	$ 97,592
Balance Outstanding	97,592
Principal Balance of Collateral	115,585
Carrying Value of Collateral	$ 115,668
Morgan Stanley
Debt Instrument [Line Items]
Maturity Date	May 04, 2021
Morgan Stanley \| Debt Instrument, Interest Rate at 2.8% \| Repurchase Agreements
Debt Instrument [Line Items]
Maturity Date	May 04, 2020
Index Rate	1 Month LIBOR
Weighted Average Credit Spread	1.80%
Interest Rate	2.80%
Commitment Amount	$ 500,000
Maximum Current Availability	58,641
Balance Outstanding	441,359
Principal Balance of Collateral	578,177
Carrying Value of Collateral	$ 575,025
Morgan Stanley \| Debt Instrument, Interest Rate at 3.6% \| Repurchase Agreements
Debt Instrument [Line Items]
Maturity Date		May 04, 2020
Index Rate		1 Month LIBOR
Weighted Average Credit Spread		1.90%
Interest Rate		3.60%
Commitment Amount		$ 500,000
Maximum Current Availability		105,253
Balance Outstanding		394,747
Principal Balance of Collateral		519,638
Carrying Value of Collateral		$ 515,984
Morgan Stanley \| Loans Investment \| Repurchase Agreements
Debt Instrument [Line Items]
Maturity Date	May 04, 2020	May 04, 2020
JP Morgan \| Debt Instrument, Interest Rate at 2.6% \| Repurchase Agreements
Debt Instrument [Line Items]
Maturity Date	Aug. 20, 2021
Index Rate	1 Month LIBOR
Weighted Average Credit Spread	1.60%
Interest Rate	2.60%
Commitment Amount	$ 400,000
Maximum Current Availability	179,378
Balance Outstanding	220,622
Principal Balance of Collateral	294,041
Carrying Value of Collateral	$ 288,654
JP Morgan \| Debt Instrument, Interest Rate at 3.3% \| Repurchase Agreements
Debt Instrument [Line Items]
Maturity Date		Aug. 20, 2021
Index Rate		1 Month LIBOR
Weighted Average Credit Spread		1.60%
Interest Rate		3.30%
Commitment Amount		$ 400,000
Maximum Current Availability		181,552
Balance Outstanding		218,448
Principal Balance of Collateral		300,677
Carrying Value of Collateral		$ 295,341
JP Morgan \| Loans Investment \| Repurchase Agreements
Debt Instrument [Line Items]
Maturity Date	Aug. 20, 2021	Aug. 20, 2021
JP Morgan \| CRE Debt Securities
Debt Instrument [Line Items]
Commitment Amount	$ 437,323	$ 475,881
JP Morgan \| CRE Debt Securities \| Repurchase Agreements
Debt Instrument [Line Items]
Maturity Date	Apr. 08, 2020	Feb. 27, 2020
JP Morgan \| CRE Debt Securities \| Debt Instrument, Interest Rate at 2.6% \| Repurchase Agreements
Debt Instrument [Line Items]
Maturity Date		Jan. 17, 2020
Index Rate		1 Month LIBOR
Weighted Average Credit Spread		0.90%
Interest Rate		2.60%
Commitment Amount		$ 475,881
Balance Outstanding		475,881
Principal Balance of Collateral		544,105
Carrying Value of Collateral		$ 545,080
JP Morgan \| CRE Debt Securities \| Debt Instrument, Interest Rate at 2.1% \| Repurchase Agreements
Debt Instrument [Line Items]
Maturity Date	Apr. 08, 2020
Index Rate	1 Month LIBOR
Weighted Average Credit Spread	1.10%
Interest Rate	2.10%
Commitment Amount	$ 437,323
Balance Outstanding	437,323
Principal Balance of Collateral	438,297
Carrying Value of Collateral	$ 438,420
US Bank \| Debt Instrument, Interest Rate at 2.5% \| Repurchase Agreements
Debt Instrument [Line Items]
Maturity Date	Jul. 09, 2022
Index Rate	1 Month LIBOR
Weighted Average Credit Spread	1.50%
Interest Rate	2.50%
Commitment Amount	$ 189,490
Maximum Current Availability	114,011
Balance Outstanding	75,479
Principal Balance of Collateral	98,272
Carrying Value of Collateral	$ 97,821
US Bank \| Debt Instrument, Interest Rate at 3.6% \| Repurchase Agreements
Debt Instrument [Line Items]
Maturity Date		Jul. 09, 2022
Index Rate		1 Month LIBOR
Weighted Average Credit Spread		1.80%
Interest Rate		3.60%
Commitment Amount		$ 152,240
Maximum Current Availability		15,641
Balance Outstanding		136,599
Principal Balance of Collateral		173,253
Carrying Value of Collateral		$ 172,898
US Bank \| Loans Investment \| Repurchase Agreements
Debt Instrument [Line Items]
Maturity Date	Jul. 09, 2022	Jul. 09, 2022
Royal Bank of Canada \| CRE Debt Securities \| Repurchase Agreements
Debt Instrument [Line Items]
Index Rate	N/A	N/A
Bank of America \| Senior Secured and Secured Credit Agreements
Debt Instrument [Line Items]
Maturity Date	Sep. 29, 2020	Sep. 29, 2020
Bank of America \| Debt Instrument, Interest Rate at 2.7% \| Senior Secured and Secured Credit Agreements
Debt Instrument [Line Items]
Maturity Date	Sep. 29, 2020
Index Rate	1 Month LIBOR
Weighted Average Credit Spread	1.80%
Interest Rate	2.70%
Commitment Amount	$ 500,000
Maximum Current Availability	354,363
Balance Outstanding	145,637
Principal Balance of Collateral	183,411
Carrying Value of Collateral	$ 183,411
Bank of America \| Debt Instrument, Interest Rate at 3.8% \| Senior Secured and Secured Credit Agreements
Debt Instrument [Line Items]
Maturity Date		Sep. 29, 2020
Index Rate		1 Month LIBOR
Weighted Average Credit Spread		1.80%
Interest Rate		3.80%
Commitment Amount		$ 500,000
Maximum Current Availability		354,363
Balance Outstanding		145,637
Principal Balance of Collateral		182,882
Carrying Value of Collateral		$ 182,882
Citibank \| Senior Secured and Secured Credit Agreements
Debt Instrument [Line Items]
Maturity Date	Jul. 12, 2020	Jul. 12, 2020
Citibank \| Debt Instrument, Interest Rate at 3.2% \| Senior Secured and Secured Credit Agreements
Debt Instrument [Line Items]
Maturity Date	Jul. 12, 2020
Index Rate	1 Month LIBOR
Weighted Average Credit Spread	2.30%
Interest Rate	3.20%
Commitment Amount	$ 160,000
Maximum Current Availability	97,357
Balance Outstanding	62,643
Principal Balance of Collateral	90,160
Carrying Value of Collateral	$ 89,231
Citibank \| Debt Instrument, Interest Rate at 4.1% \| Senior Secured and Secured Credit Agreements
Debt Instrument [Line Items]
Maturity Date		Jul. 12, 2020
Index Rate		1 Month LIBOR
Weighted Average Credit Spread		2.30%
Interest Rate		4.10%
Commitment Amount		$ 160,000
Maximum Current Availability		$ 160,000

Summary of Secured Revolving Repurchase Agreements, Senior Secured and Secured Credit Agreements, and Asset-Specific Financings (Parenthetical) (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Morgan Stanley
Debt Instrument [Line Items]
Maturity Date	May 04, 2021
Asset-specific Financing, Secured Revolving Repurchase Agreements and Senior Secured and Secured Credit Agreements \| Holdco
Debt Instrument [Line Items]
Recourse guarantee percentage	25.00%	25.00%
Repurchase Agreements \| Holdco
Debt Instrument [Line Items]
Recourse guarantee percentage	25.00%	100.00%
Repurchase Agreements \| Holdco \| CRE Debt Securities
Debt Instrument [Line Items]
Recourse guarantee percentage	100.00%	100.00%
Secured Credit Agreement
Debt Instrument [Line Items]
Recourse guarantee percentage		100.00%
Secured Credit Agreement \| CRE Debt Securities
Debt Instrument [Line Items]
Recourse guarantee percentage	100.00%

Summary of Recourse and Market-to-Market Provisions (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Goldman Sachs \| Repurchase Agreements \| Loans Investment
Debt Instrument [Line Items]
Maturity Date	Aug. 19, 2020	Aug. 19, 2020
Recourse Percentage	25.00%	25.00%
Goldman Sachs \| Repurchase Agreements \| CRE Debt Securities
Debt Instrument [Line Items]
Maturity Date	Apr. 10, 2020	Jan. 12, 2020
Recourse Percentage	100.00%	100.00%
Wells Fargo \| Repurchase Agreements \| Loans Investment
Debt Instrument [Line Items]
Maturity Date	Apr. 18, 2022	Apr. 18, 2022
Recourse Percentage	25.00%	25.00%
Wells Fargo \| Repurchase Agreements \| CRE Debt Securities
Debt Instrument [Line Items]
Maturity Date	Apr. 19, 2020	Feb. 26, 2020
Recourse Percentage	100.00%	100.00%
Barclays \| Repurchase Agreements \| Loans Investment
Debt Instrument [Line Items]
Maturity Date	Aug. 13, 2022	Aug. 13, 2022
Recourse Percentage	25.00%	25.00%
Morgan Stanley
Debt Instrument [Line Items]
Maturity Date	May 04, 2021
Morgan Stanley \| Repurchase Agreements \| Loans Investment
Debt Instrument [Line Items]
Maturity Date	May 04, 2020	May 04, 2020
Recourse Percentage	25.00%	25.00%
JP Morgan \| Repurchase Agreements \| Loans Investment
Debt Instrument [Line Items]
Maturity Date	Aug. 20, 2021	Aug. 20, 2021
Recourse Percentage	25.00%	25.00%
JP Morgan \| Repurchase Agreements \| CRE Debt Securities
Debt Instrument [Line Items]
Maturity Date	Apr. 08, 2020	Feb. 27, 2020
Recourse Percentage	100.00%	100.00%
US Bank \| Repurchase Agreements \| Loans Investment
Debt Instrument [Line Items]
Maturity Date	Jul. 09, 2022	Jul. 09, 2022
Recourse Percentage	25.00%	25.00%
Royal Bank of Canada \| Repurchase Agreements \| CRE Debt Securities
Debt Instrument [Line Items]
Recourse Percentage	100.00%	100.00%
Bank of America \| Senior Secured and Secured Credit Agreements
Debt Instrument [Line Items]
Maturity Date	Sep. 29, 2020	Sep. 29, 2020
Recourse Percentage	25.00%	25.00%
Citibank \| Senior Secured and Secured Credit Agreements
Debt Instrument [Line Items]
Maturity Date	Jul. 12, 2020	Jul. 12, 2020
Recourse Percentage	100.00%	100.00%
Institutional Lender \| Asset-specific Financing
Debt Instrument [Line Items]
Maturity Date	Oct. 09, 2020	Oct. 09, 2020

Summary of Repurchase Agreements Secured by Commercial Mortgage Loans, CRE Debt Securities and Counterparty Concentration (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Commercial Mortgage Loans
Repurchase Agreement Counterparty [Line Items]
Commitment Amount	$ 3,339,490	$ 3,302,240
UPB of Collateral	2,429,906	2,418,757
Carrying Value of Collateral	2,427,193	2,415,038
Amounts Payable under Secured Revolving Repurchase Agreements	1,835,907	1,624,172
Net Counterparty Exposure	$ 591,286	$ 790,866
Days to Extended Maturity	932 days	1062 days
CRE Debt Securities
Repurchase Agreement Counterparty [Line Items]
Commitment Amount	$ 608,281	$ 692,798
UPB of Collateral		799,887
Impaired Face Value	613,569
Carrying Value of Collateral	615,514	803,412
Amounts Payable under Secured Revolving Repurchase Agreements	608,774	693,690
Net Counterparty Exposure	$ 6,740	$ 109,722
Days to Extended Maturity	10 days	16 days
Commercial Mortgage Loans and CRE Debt Securities
Repurchase Agreement Counterparty [Line Items]
Commitment Amount	$ 3,947,771	$ 3,995,038
UPB of Collateral		3,218,644
Impaired Face Value	3,043,475
Carrying Value of Collateral	3,042,707	3,218,450
Amounts Payable under Secured Revolving Repurchase Agreements	2,444,681	2,317,862
Net Counterparty Exposure	$ 598,026	$ 900,588
Days to Extended Maturity	652 days	685 days
Wells Fargo \| Commercial Mortgage Loans
Repurchase Agreement Counterparty [Line Items]
Commitment Amount	$ 750,000	$ 750,000
UPB of Collateral	494,959	593,742
Carrying Value of Collateral	496,228	594,832
Amounts Payable under Secured Revolving Repurchase Agreements	360,718	395,039
Net Counterparty Exposure	$ 135,510	$ 199,793
Percent of Stockholders' Equity	11.00%	13.60%
Days to Extended Maturity	748 days	839 days
Wells Fargo \| CRE Debt Securities
Repurchase Agreement Counterparty [Line Items]
Commitment Amount	$ 97,592	$ 135,774
UPB of Collateral		161,153
Impaired Face Value	115,585
Carrying Value of Collateral	103,028	148,738
Amounts Payable under Secured Revolving Repurchase Agreements	97,782	136,021
Net Counterparty Exposure	$ 5,246	$ 12,717
Percent of Stockholders' Equity	0.40%	0.90%
Days to Extended Maturity	19 days	16 days
Barclays \| Commercial Mortgage Loans
Repurchase Agreement Counterparty [Line Items]
Commitment Amount	$ 750,000	$ 750,000
UPB of Collateral	742,729	542,927
Carrying Value of Collateral	742,062	542,191
Amounts Payable under Secured Revolving Repurchase Agreements	589,911	432,399
Net Counterparty Exposure	$ 152,151	$ 109,792
Percent of Stockholders' Equity	12.40%	7.50%
Days to Extended Maturity	865 days	956 days
Morgan Stanley Bank \| Commercial Mortgage Loans
Repurchase Agreement Counterparty [Line Items]
Commitment Amount	$ 500,000	$ 500,000
UPB of Collateral	578,177	519,638
Carrying Value of Collateral	576,930	518,048
Amounts Payable under Secured Revolving Repurchase Agreements	441,432	395,356
Net Counterparty Exposure	$ 135,498	$ 122,692
Percent of Stockholders' Equity	11.00%	8.40%
US Bank \| Commercial Mortgage Loans
Repurchase Agreement Counterparty [Line Items]
Commitment Amount	$ 189,490	$ 152,240
UPB of Collateral	98,272	173,741
Carrying Value of Collateral	98,230	173,045
Amounts Payable under Secured Revolving Repurchase Agreements	75,531	136,734
Net Counterparty Exposure	$ 22,699	$ 36,311
Percent of Stockholders' Equity	1.80%	2.50%
Days to Extended Maturity	1561 days	1652 days
Goldman Sachs \| Commercial Mortgage Loans
Repurchase Agreement Counterparty [Line Items]
Commitment Amount	$ 750,000	$ 750,000
UPB of Collateral	221,728	288,032
Carrying Value of Collateral	222,930	289,674
Amounts Payable under Secured Revolving Repurchase Agreements	147,590	45,900
Net Counterparty Exposure	$ 75,340	$ 243,774
Percent of Stockholders' Equity	6.10%	16.60%
Days to Extended Maturity	871 days	962 days
Goldman Sachs \| CRE Debt Securities
Repurchase Agreement Counterparty [Line Items]
Commitment Amount	$ 73,366	$ 81,143
UPB of Collateral		94,629
Impaired Face Value	59,687
Carrying Value of Collateral	73,667	108,414
Amounts Payable under Secured Revolving Repurchase Agreements	73,497	81,362
Net Counterparty Exposure	$ 170	$ 27,052
Percent of Stockholders' Equity	0.00%	1.80%
Days to Extended Maturity	10 days	12 days
JP Morgan \| Commercial Mortgage Loans
Repurchase Agreement Counterparty [Line Items]
Commitment Amount	$ 400,000	$ 400,000
UPB of Collateral	294,041	300,677
Carrying Value of Collateral	290,813	297,248
Amounts Payable under Secured Revolving Repurchase Agreements	220,725	218,744
Net Counterparty Exposure	$ 70,088	$ 78,504
Percent of Stockholders' Equity	5.70%	5.40%
Days to Extended Maturity	1237 days	1328 days
JP Morgan \| CRE Debt Securities
Repurchase Agreement Counterparty [Line Items]
Commitment Amount	$ 437,323	$ 475,881
UPB of Collateral		544,105
Impaired Face Value	438,297
Carrying Value of Collateral	438,819	546,260
Amounts Payable under Secured Revolving Repurchase Agreements	437,495	476,307
Net Counterparty Exposure	$ 1,324	$ 69,953
Percent of Stockholders' Equity	0.10%	4.80%
Days to Extended Maturity	8 days	17 days

Summary of Repurchase Agreements Secured by Commercial Mortgage Loans, CRE Debt Securities and Counterparty Concentration (Parenthetical) (Details) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Mar. 31, 2020

Dec. 31, 2019

Repurchase Agreement Counterparty [Line Items]

Commercial Mortgage Loans

^[1]

$ 5,173

$ 6,665

Repurchase Agreement Counterparty [Line Items]

Interest receivable

12,000

13,000

Premium, discount and origination fees

14,700

16,700

Unamortized deferred financing fees

1,400

2,500

8,700

10,300

Repurchase Agreement Counterparty [Line Items]

Interest receivable

1,700

2,300

Premium, discount and origination fees

300

1,200

$ 500

$ 900

[1]

The Company’s consolidated Total Assets and Total Liabilities at March 31, 2020 include assets and liabilities of variable interest entities (“VIEs”) of $2.3 billion and $1.8 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities at December 31, 2019 include assets and liabilities of VIEs of $2.2 billion and $1.8 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

Schedule of Maturities - Schedule of Future Principal Payments (Details) $ in Thousands	Mar. 31, 2020 USD ($)
Secured Revolving Repurchase Agreements
Debt Instrument [Line Items]
2020	$ 1,357,747
2021	422,933
2022	662,133
Total	2,442,813
Senior Secured and Secured Credit Agreements
Debt Instrument [Line Items]
2020	208,280
Total	208,280
Collateralized Loan Obligation
Debt Instrument [Line Items]
2020	452,481
2021	745,896
2022	563,845
2023	62,299
Total	1,824,521
Asset-specific Financing
Debt Instrument [Line Items]
2020	77,000
Total	$ 77,000

Schedule of Maturities - Schedule of Future Principal Payments (Parenthetical) (Details) - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2020

Dec. 31, 2019

Secured Revolving Repurchase, Senior Secured, and Secured Credit Agreements (net of deferred financing costs of $9,545 and $11,632, respectively)

^[1]

$ 2,641,548

$ 2,448,422

Morgan Stanley

Morgan Stanley | Secured Revolving Repurchase Agreements Due May 4, 2021

Initial maturity date

May 04, 2021

Secured Revolving Repurchase, Senior Secured, and Secured Credit Agreements (net of deferred financing costs of $9,545 and $11,632, respectively)

$ 441,400

Initial maturity date

May 04, 2020

Extended maturity date

May 04, 2021

[1]

The Company’s consolidated Total Assets and Total Liabilities at March 31, 2020 include assets and liabilities of variable interest entities (“VIEs”) of $2.3 billion and $1.8 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities at December 31, 2019 include assets and liabilities of VIEs of $2.2 billion and $1.8 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

Fair Value Measurements - Additional Information (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Fair Value Measurements [Line Items]
Money market funds	$ 97,400,000
Threshold period of delinquency	90 days
Market spread	one-month LIBOR	Index Rate
Transfers of financial assets or liabilities with in fair value hierarchy		$ 0
Estimated fair value of loans held for investment	$ 5,000,000,000.0	$ 5,000,000,000.0
Weighted average gross spread percentage	3.41%	3.48%
Weighted average maturity period	3 years 8 months 12 days	3 years 9 months 18 days
Estimated fair value of secured financing agreements disclosure	$ 1,800,000,000
Estimated fair value of collateralized loan obligation	2,700,000,000
COVID-19
Fair Value Measurements [Line Items]
Decrease in carrying value of loans held for investments	37,400,000
Decrease in carrying value of secured financing agreements	33,900,000
Decrease in carrying value of collateralized loan obligation	$ 65,400,000

Fair Value Measurements - Summary of Fair Value of Financial Assets and Liabilities (Details) - Fair Value Measurements Nonrecurring - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Carrying Value \| CRE Debt Securities
Financial Assets
Financial Assets, Nonrecurring	$ 604,801	$ 787,552
Carrying Value \| Loans Held for Investment
Financial Assets
Financial Assets, Nonrecurring	5,020,695	4,980,389
Carrying Value \| Collateralized Loan Obligation
Financial Liabilities
Financial Liabilities, Nonrecurring	1,812,052	1,806,428
Carrying Value \| Secured Financing Arrangements
Financial Liabilities
Financial Liabilities, Nonrecurring	2,718,348	2,525,128
Estimate of Fair Value Measurement \| Level I \| CRE Debt Securities
Financial Assets
Financial Assets, Nonrecurring	604,801
Estimate of Fair Value Measurement \| Level II \| CRE Debt Securities
Financial Assets
Financial Assets, Nonrecurring		787,552
Estimate of Fair Value Measurement \| Level III \| Loans Held for Investment
Financial Assets
Financial Assets, Nonrecurring	4,983,304	5,004,379
Estimate of Fair Value Measurement \| Level III \| Collateralized Loan Obligation
Financial Liabilities
Financial Liabilities, Nonrecurring	1,778,165	1,806,428
Estimate of Fair Value Measurement \| Level III \| Secured Financing Arrangements
Financial Liabilities
Financial Liabilities, Nonrecurring	$ 2,652,964	$ 2,525,128

Income Taxes - Additional Information (Details)		3 Months Ended
Income Taxes - Additional Information (Details)	Mar. 31, 2020 USD ($) Investment	Mar. 31, 2020 USD ($)	Mar. 31, 2019 USD ($)	Dec. 31, 2019 USD ($)
Income Tax [Line Items]
Reserve for uncertain income tax positions	$ 0	$ 0		$ 0
Interest for underpayment of income taxes		0
Penalties for underpayment of income taxes		0
Current portion of income tax expense		$ 100,000	$ 200,000
Effective income tax rate		0.00%	0.80%
Aggregate losses from the sales		$ 974,000	$ (106,000)
Separate CRE Debt Securities
Income Tax [Line Items]
Number of investments sold \| Investment	10
Aggregate face value of debt securities	$ 179,300,000	179,300,000
Proceeds from sale of debt securities, gross	143,100,000
Repayment of secured indebtedness	141,000,000.0
Proceeds from sale of debt securities	2,200,000
Aggregate losses from the sales	36,200,000
TRSs
Income Tax [Line Items]
Current portion of income tax expense		0	$ 0
Deferred tax assets	0	0		0
Deferred tax liabilities	$ 0	$ 0		$ 0
REIT Subsidiaries
Income Tax [Line Items]
Equity interest percentage by parent	100.00%	100.00%

Related Party Transactions - Additional Information (Details) - USD ($)

3 Months Ended

Jul. 25, 2017

Mar. 31, 2020

Jul. 06, 2020

Dec. 31, 2019

Mar. 31, 2019

Incentive management fee percentage of Core Earnings less seven percent of stockholders equity

20.00%

Management fees and incentive management fees payable

^[1]

$ 7,970,000

$ 9,520,000

Termination fee, description

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

Scenario Forecast

Management fees and incentive management fees payable

$ 5,000,000.0

Management Agreement

Percentage of annual base management fee

1.50%

Percentage of quarterly base management fee

0.375%

Incentive management fee, description

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, as amended, 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.

Percentage multiplied by stockholders equity included in incentive management fee

7.00%

Management fees and incentive management fees payable

$ 5,000,000.0

$ 7,300,000

Management Agreement | Minimum

Management fee payable per annum

$ 250,000

Management fee payable per quarter

$ 62,500

Post-IPO Management Agreement

Amount incurred and reimbursable

300,000

Reimbursable expenses remained outstanding

$ 2,300,000

$ 0

[1]

The Company’s consolidated Total Assets and Total Liabilities at March 31, 2020 include assets and liabilities of variable interest entities (“VIEs”) of $2.3 billion and $1.8 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities at December 31, 2019 include assets and liabilities of VIEs of $2.2 billion and $1.8 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

Related Party Transactions - Summary of Management Fees and Incentive Management Fees Incurred and Paid Pursuant to Management Agreement (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Related Party Transactions [Abstract]
Management Agreement fees incurred	$ 5,000	$ 6,508
Management Agreement fees paid	$ 7,252	$ 6,100

Earnings per Share - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Earnings Per Share [Abstract]
Dividends declared	$ 0.3	$ 0.1
Undistributed net income attributable to common stockholders	$ 0.3	$ 0.1

Earnings per Share - Schedule of Calculation of Basic and Diluted Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Earnings Per Share [Abstract]
Net Income (Loss) Attributable to TPG RE Finance Trust, Inc.	$ (232,793)	$ 28,409
Participating Securities' Share in Earnings (Loss)	(268)	(141)
Net Income (Loss) Attributable to Common Stockholders	$ (233,061)	$ 28,268
Weighted Average Common Shares Outstanding, Basic and Diluted	76,465,322	68,294,736
Per Common Share Amount, Basic and Diluted	$ (3.05)	$ 0.42

Stockholders' Equity - Additional Information (Details) - USD ($)

1 Months Ended

3 Months Ended

Mar. 23, 2020

Mar. 17, 2020

Jan. 24, 2020

Apr. 16, 2019

Mar. 19, 2019

Mar. 07, 2019

Mar. 31, 2019

Jan. 31, 2019

Mar. 31, 2020

Mar. 31, 2019

Feb. 14, 2020

Dec. 31, 2019

Apr. 12, 2019

Aug. 21, 2017

Common stock, shares authorized

302,500,000

300,000,000

76,650,996

74,886,113

Preferred stock, shares issued

$ 12,895,000

$ 119,100,000

125

Preferred stock, shares outstanding

125

Proceeds from issuance of preferred stock

125,000

Unpaid dividends

$ 33,200,000

$ 31,598,000

$ 33,222,000

^[1]

$ 31,598,000

$ 32,835,000

^[1]

Dividends

$ 31,600,000

Goldman Sachs & Co. LLC

Description on purchase plan agreement

35,000,000.0

as the Company’s agent, to buy in the open market up to $35.0 million in shares of the Company’s common stock in the aggregate during the period beginning on or about August 21, 2017. On August 1, 2018, the Company’s Board of Directors authorized the Company to extend the repurchase period for the remaining capital committed to the 10b5-1 Purchase Plan to February 28, 2019. No other changes to the terms of the 10b5-1 Purchase Plan were authorized.

Stock repurchased during period, shares

2,324

Average price of repurchased shares

$ 18.27

Stock repurchased during period, value

$ 400,000

Purchase plan, expiration date

Feb. 28, 2019

2019 Underwritten Offering

6,000,000.0

Shares issued, price per share

$ 118,800,000

$ 19.80

Morgan Stanley And Co LLC | 2019 Underwritten Offering

900,000

Exercise of underwriters stock option to purchase additional shares

$ 17,400,000

900,000

Offering costs reimbursed by manager

$ 300,000

Common Stock

Dividend declared per share

628,218

6,000,000

$ 0.43

Dividend declared date

Mar. 17, 2020

Dividend payable date

Apr. 24, 2020

Dividend record date

Mar. 27, 2020

Dividend deferral payable date

Jul. 14, 2020

Dividend deferral record date

Jun. 15, 2020

Equity Distribution Agreement | Common Stock

Weighted average price per share

600,000

0

$ 20.53

Equity Distribution Agreement | Common Stock | Maximum [Member]

$ 12,900,000

Payments for commissions

$ 200,000

Aggregate gross sales price of common stock

$ 125,000,000.0

Percentage of commission to each sales agent, on gross sales price of shares sold

1.75%

Class A Shares Converted in to Common Stock

Common stock, shares issued

1,136,665

Common stock, shares authorized

2,500,000

Common stock, shares authorized

0

2,500,000

Dividend declared per share

0

1,136,665

$ 0.43

Series A Preferred Stock

Preferred stock, shares issued

625

Preferred stock, shares outstanding

500

Issuance of SubREIT Preferred Stock, Shares

125

Proceeds from issuance of preferred stock

$ 100,000

Dividend rate

12.50%

Preferred stock, liquidation preference per annum

$ 1,000.000

Common Stock And Class A Common Stock

Dividend declared date

Mar. 19, 2019

Dividend payable date

Apr. 25, 2019

Dividend record date

Mar. 29, 2019

[1]

The Company’s consolidated Total Assets and Total Liabilities at March 31, 2020 include assets and liabilities of variable interest entities (“VIEs”) of $2.3 billion and $1.8 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities at December 31, 2019 include assets and liabilities of VIEs of $2.2 billion and $1.8 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

Share-based Incentive Plan - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period	4 years
Stock Compensation Expense	$ 1,401	$ 633
2017 Equity Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares authorized under the plan	4,600,463
Total unrecognized compensation cost relating to unvested share-based compensation arrangements	$ 10,300
Unrecognized compensation cost, recognition period	1 year 4 months 24 days
Stock Compensation Expense	$ 1,400	$ 600

Share-based Incentive Plan - Schedule of Awarded Shares Vesting Period (Details) - 2017 Equity Incentive Plan - Common Stock	3 Months Ended
	Mar. 31, 2020 shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares of common stock expected to vest	624,006
2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares of common stock expected to vest	229,521
2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares of common stock expected to vest	229,522
2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares of common stock expected to vest	102,389
2023
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares of common stock expected to vest	62,574

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Long Term Purchase Commitment [Line Items]
Unfunded commitments related to loans held for investment	$ 650.9	$ 630.6
Accrued Expenses and Other Liabilities
Long Term Purchase Commitment [Line Items]
Allowance for credit losses on loan commitments	$ 7.3

Concentration of Credit Risk - Summary of Loan Portfolio by Property Type (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Loans And Leases Receivable Disclosure [Line Items]
Loan Commitment	$ 5,763,697	$ 5,628,765
Unfunded Commitment	$ 650,889	$ 630,589
% of Loan Commitment	100.00%	100.00%
Loan UPB	$ 5,112,808	$ 4,998,176
% of Loan UPB	100.00%	100.00%
Office
Loans And Leases Receivable Disclosure [Line Items]
Loan Commitment	$ 2,808,164	$ 2,925,749
Unfunded Commitment	$ 452,385	$ 438,800
% of Loan Commitment	48.70%	52.00%
Loan UPB	$ 2,355,779	$ 2,486,949
% of Loan UPB	46.10%	49.90%
Multifamily
Loans And Leases Receivable Disclosure [Line Items]
Loan Commitment	$ 1,361,596	$ 1,104,946
Unfunded Commitment	$ 89,834	$ 69,061
% of Loan Commitment	23.60%	19.60%
Loan UPB	$ 1,271,762	$ 1,035,885
% of Loan UPB	24.80%	20.70%
Hotel
Loans And Leases Receivable Disclosure [Line Items]
Loan Commitment	$ 752,293	$ 752,293
Unfunded Commitment	$ 33,390	$ 40,088
% of Loan Commitment	13.10%	13.40%
Loan UPB	$ 718,903	$ 712,205
% of Loan UPB	14.10%	14.20%
Mixed Use
Loans And Leases Receivable Disclosure [Line Items]
Loan Commitment	$ 604,993	$ 604,993
Unfunded Commitment	$ 71,475	$ 78,835
% of Loan Commitment	10.50%	10.70%
Loan UPB	$ 533,518	$ 526,158
% of Loan UPB	10.40%	10.50%
Condominium
Loans And Leases Receivable Disclosure [Line Items]
Loan Commitment	$ 91,651	$ 95,784
Unfunded Commitment	$ 1,524	$ 1,524
% of Loan Commitment	1.60%	1.70%
Loan UPB	$ 90,127	$ 94,260
% of Loan UPB	1.80%	1.90%
Retail
Loans And Leases Receivable Disclosure [Line Items]
Loan Commitment	$ 33,000	$ 33,000
Unfunded Commitment	$ 2,281	$ 2,281
% of Loan Commitment	0.60%	0.60%
Loan UPB	$ 30,719	$ 30,719
% of Loan UPB	0.60%	0.60%
Other
Loans And Leases Receivable Disclosure [Line Items]
Loan Commitment	$ 112,000	$ 112,000
% of Loan Commitment	1.90%	2.00%
Loan UPB	$ 112,000	$ 112,000
% of Loan UPB	2.20%	2.20%

Concentration of Credit Risk - Summary of Geographic Composition of Loans Held for Investment Based on Current UPB and Loan Commitment (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Loans And Leases Receivable Disclosure [Line Items]
Loan Commitment	$ 5,763,697	$ 5,628,765
Unfunded Commitment	$ 650,889	$ 630,589
% Loan Commitment	100.00%	100.00%
Loan UPB	$ 5,112,808	$ 4,998,176
% of Loan UPB	100.00%	100.00%
East
Loans And Leases Receivable Disclosure [Line Items]
Loan Commitment	$ 2,474,224	$ 2,182,659
Unfunded Commitment	$ 260,332	$ 214,938
% Loan Commitment	42.90%	38.70%
Loan UPB	$ 2,213,892	$ 1,967,721
% of Loan UPB	43.20%	39.40%
South
Loans And Leases Receivable Disclosure [Line Items]
Loan Commitment	$ 1,452,199	$ 1,342,794
Unfunded Commitment	$ 134,718	$ 124,939
% Loan Commitment	25.30%	23.90%
Loan UPB	$ 1,317,481	$ 1,217,855
% of Loan UPB	25.80%	24.40%
West
Loans And Leases Receivable Disclosure [Line Items]
Loan Commitment	$ 1,320,823	$ 1,397,431
Unfunded Commitment	$ 184,484	$ 201,690
% Loan Commitment	22.90%	24.80%
Loan UPB	$ 1,136,339	$ 1,195,741
% of Loan UPB	22.20%	23.90%
Midwest
Loans And Leases Receivable Disclosure [Line Items]
Loan Commitment	$ 428,351	$ 482,804
Unfunded Commitment	$ 67,810	$ 83,178
% Loan Commitment	7.40%	8.60%
Loan UPB	$ 360,541	$ 399,626
% of Loan UPB	7.10%	8.00%
Various
Loans And Leases Receivable Disclosure [Line Items]
Loan Commitment	$ 88,100	$ 223,077
Unfunded Commitment	$ 3,545	$ 5,844
% Loan Commitment	1.50%	4.00%
Loan UPB	$ 84,555	$ 217,233
% of Loan UPB	1.70%	4.30%

Concentration of Credit Risk - Summary of Loan Portfolio by Loan Category Type (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Loans And Leases Receivable Disclosure [Line Items]
Loan Commitment	$ 5,763,697	$ 5,628,765
Unfunded Commitment	$ 650,889	$ 630,589
% Loan Commitment	100.00%	100.00%
Loan UPB	$ 5,112,808	$ 4,998,176
% of Loan UPB	100.00%	100.00%
Bridge
Loans And Leases Receivable Disclosure [Line Items]
Loan Commitment	$ 1,974,017	$ 2,001,962
Unfunded Commitment	$ 56,756	$ 49,057
% Loan Commitment	34.20%	35.60%
Loan UPB	$ 1,917,261	$ 1,952,905
% of Loan UPB	37.50%	39.10%
Light Transitional
Loans And Leases Receivable Disclosure [Line Items]
Loan Commitment	$ 1,962,801	$ 1,890,762
Unfunded Commitment	$ 219,359	$ 219,138
% Loan Commitment	34.10%	33.60%
Loan UPB	$ 1,743,442	$ 1,671,624
% of Loan UPB	34.10%	33.40%
Moderate Transitional
Loans And Leases Receivable Disclosure [Line Items]
Loan Commitment	$ 1,791,879	$ 1,701,041
Unfunded Commitment	$ 359,774	$ 347,394
% Loan Commitment	31.10%	30.20%
Loan UPB	$ 1,432,105	$ 1,353,647
% of Loan UPB	2.80%	27.10%
Construction
Loans And Leases Receivable Disclosure [Line Items]
Loan Commitment	$ 35,000	$ 35,000
Unfunded Commitment	$ 15,000	$ 15,000
% Loan Commitment	0.60%	0.60%
Loan UPB	$ 20,000	$ 20,000
% of Loan UPB	0.40%	0.40%

Subsequent Events - Additional Information (Details)

1 Months Ended

3 Months Ended

May 11, 2020

USD ($)

May 04, 2020

Apr. 29, 2020

USD ($)

Investment

Mar. 31, 2020

USD ($)

Mar. 31, 2019

USD ($)

Jul. 06, 2020

USD ($)

Dec. 31, 2019

USD ($)

Aggregate losses from the sales

$ 974,000

$ (106,000)

Management fees and incentive management fees payable

^[1]

7,970,000

$ 9,520,000

$ 5,763,697,000

$ 5,628,765,000

Morgan Stanley

Maturity Date

May 04, 2021

Scenario Forecast

Management fees and incentive management fees payable

$ 5,000,000.0

Secured Revolving Repurchase Agreements | Maximum [Member]

Secured Revolving Repurchase Agreements | Minimum

120 days

90 days

Subsequent Event | Morgan Stanley

Impairment charge

$ 167,300,000

Days to Extended Maturity

1 year

Maturity Date

May 04, 2021

Subsequent Event | Secured Revolving Repurchase Agreements | Maximum [Member]

Subsequent Event | Secured Revolving Repurchase Agreements | Minimum

120 days

Subsequent Event | CRE Debt Securities

90 days

Number of investments sold | Investment

39

Aggregate face value of debt securities

$ 782,000,000.0

Proceeds from sale of debt securities, gross

614,800,000

Repayment of secured indebtedness

581,700,000

Proceeds from sale of debt securities

33,100,000

Aggregate losses from the sales

167,300,000

Subsequent Event | First Mortgage Loan

90,000,000.0

Subsequent Event | Senior Mortgage Loan

$ 81,400,000