TPG RE FINANCE TRUST, INC., 10-Q filed on 8/2/2022
Quarterly Report
v3.22.2
Cover - shares
 6 Months Ended
Jun. 30, 2022
Jul. 29, 2022
Document Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2022  
Document Transition Report false  
Entity File Number 001-38156  
Entity Registrant Name TPG RE Finance Trust, Inc.  
Entity Incorporation, State or Country Code MD  
Entity Tax Identification Number 36-4796967  
Entity Address, Address Line One 888 Seventh Avenue  
Entity Address, Address Line Two 35th Floor  
Entity Address, City or Town New York  
Entity Address, State or Province NY  
Entity Address, Postal Zip Code 10106  
City Area Code 212  
Local Phone Number 601-4700  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   77,403,381
Entity Central Index Key 0001630472  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2022  
Document Fiscal Period Focus Q2  
Amendment Flag false  
Common Stock    
Document Information [Line Items]    
Title of 12(b) Security Common Stock, par value $0.001 per share  
Trading Symbol TRTX  
Security Exchange Name NYSE  
6.25% Series C Cumulative Redeemable Preferred Stock    
Document Information [Line Items]    
Title of 12(b) Security 6.25% Series C Cumulative Redeemable Preferred Stock, par value $0.001 per share  
Trading Symbol TRTX PRC  
Security Exchange Name NYSE  
v3.22.2
Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Assets    
Cash and cash equivalents [1] $ 355,994 $ 260,635
Restricted cash [1] 789 404
Accounts receivable [1] 112 12
Collateralized loan obligation proceeds held at trustee [1] 130,908 204
Accounts receivable from servicer/trustee [1] 259,823 176
Accrued interest and fees receivable [1] 28,676 26,620
Loans held for investment [1] 4,701,410 4,909,202
Allowance for credit losses [1] (84,156) (41,999)
Loans held for investment, net [1] 4,617,254 4,867,203
Real estate owned [1] 0 60,622
Other assets [1] 1,533 2,144
Total assets [1] 5,395,089 5,218,020
Liabilities    
Accrued interest payable [1] 4,300 2,723
Accrued expenses and other liabilities [1] 17,723 11,563
Collateralized loan obligations, net [1] 2,639,314 2,545,691
Secured financing agreements, net [1] 1,137,416 1,162,206
Asset-specific financings, net [1] 123,579 0
Payable to affiliates [1] 11,039 5,609
Deferred revenue [1] 1,064 1,366
Dividends payable [1] 18,726 24,156
Total liabilities [1] 3,953,161 3,753,314
Commitments and contingencies - see Note 14 [1]
Permanent equity    
Common stock ($0.001 par value per share; 302,500,000 and 302,500,000 shares authorized, respectively; 77,403,381 and 77,183,892 shares issued and outstanding, respectively) [1] 77 77
Additional paid-in-capital [1] 1,714,480 1,711,886
Accumulated deficit [1] (272,637) (247,265)
Total stockholders' equity [1] 1,441,928 1,464,706
Total permanent equity [1] 1,441,928 1,464,706
Total liabilities and stockholders' equity [1] 5,395,089 5,218,020
Series A Preferred Stock    
Permanent equity    
Preferred Stock Value [1] 0 0
Series C Preferred Stock    
Permanent equity    
Preferred Stock Value [1] $ 8 $ 8
[1] The Company’s consolidated Total Assets and Total Liabilities as of June 30, 2022 include assets and liabilities of variable interest entities (“VIEs”) of $3.2 billion and $2.6 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2021 include assets and liabilities of VIEs of $3.2 billion and $2.6 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details.
v3.22.2
Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Common stock, par value (in USD per share) $ 0.001 $ 0.001
Common stock, authorized shares 302,500,000 302,500,000
Common stock, shares issued 77,403,381 77,183,892
Common stock, shares outstanding 77,403,381 77,183,892
Total assets [1] $ 5,395,089 $ 5,218,020
Total liabilities [1] 3,953,161 3,753,314
Variable Interest Entity, Primary Beneficiary    
Total assets 3,230,635 3,173,889
Total liabilities $ 2,649,042 $ 2,552,834
Series B Preferred Stock    
Temporary equity, shares outstanding 0 0
Series A Preferred Stock    
Preferred stock, par value (in USD per share) $ 0.001 $ 0.001
Preferred stock, authorized shares 100,000,000 100,000,000
Preferred stock, shares issued 125 125
Preferred stock, shares outstanding 125 125
Preferred stock, aggregate liquidation preference $ 125 $ 125
Series C Preferred Stock    
Preferred stock, par value (in USD per share) $ 0.001 $ 0.001
Preferred stock, authorized shares 8,050,000 8,050,000
Preferred stock, shares issued 8,050,000 8,050,000
Preferred stock, shares outstanding 8,050,000 8,050,000
Preferred stock, aggregate liquidation preference $ 201,250 $ 201,250
Repurchase Agreements    
Loans pledged as collateral $ 1,502,203 $ 1,697,481
[1] The Company’s consolidated Total Assets and Total Liabilities as of June 30, 2022 include assets and liabilities of variable interest entities (“VIEs”) of $3.2 billion and $2.6 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2021 include assets and liabilities of VIEs of $3.2 billion and $2.6 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details.
v3.22.2
Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Interest income and interest expense        
Interest income $ 66,021 $ 61,915 $ 127,038 $ 120,064
Interest expense (28,008) (22,017) (50,509) (42,307)
Net interest income 38,013 39,898 76,529 77,757
Other revenue        
Other income, net 629 157 647 253
Total other revenue 629 157 647 253
Other expenses        
Professional fees 1,150 1,137 2,296 2,336
General and administrative 949 1,081 2,118 2,112
Stock compensation expense 1,328 1,393 2,594 2,849
Servicing and asset management fees 493 328 987 655
Management fee 5,856 5,344 11,565 10,437
Incentive management fee 5,183 0 5,183 0
Total other expenses 14,959 9,283 24,743 18,389
Gain on sale of real estate owned, net 13,291 0 13,291 0
Credit loss (expense) benefit, net (42,290) 1,852 (47,174) 5,890
(Loss) income before income taxes (5,316) 32,624 18,550 65,511
Income tax expense, net (118) (233) (203) (1,164)
Net (loss) income (5,434) 32,391 18,347 64,347
Preferred stock dividends and participating securities' share in earnings (3,374) (6,947) (6,719) (13,217)
Series B Preferred Stock redemption make-whole payment 0 (22,485) 0 (22,485)
Series B Preferred Stock accretion, including allocated Warrant fair value and transaction costs 0 (23,997) 0 (25,449)
Net (loss) income attributable to common stockholders - see Note 11 $ (8,808) $ (21,038) $ 11,628 $ 3,196
Earnings Per Share, Basic (in USD per share) $ (0.11) $ (0.27) $ 0.15 $ 0.04
Earnings Per Share, Diluted (in USD per share) $ (0.11) $ (0.27) $ 0.14 $ 0.04
Weighted average number of common shares outstanding        
Basic: (in shares) 77,188,291 76,899,270 77,186,136 76,897,453
Diluted: (in shares) 77,188,291 76,899,270 81,235,606 81,331,351
Other comprehensive income (loss)        
Net (loss) income $ (5,434) $ 32,391 $ 18,347 $ 64,347
Comprehensive net (loss) income $ (5,434) $ 32,391 $ 18,347 $ 64,347
v3.22.2
Consolidated Statement of Changes in Equity (Unaudited) - USD ($)
Total
Series A Preferred Stock
Series C Preferred Stock
Preferred Stock
Series A Preferred Stock
Preferred Stock
Series C Preferred Stock
Preferred Stock
Series B Preferred Stock
Common Stock
Additional paid-in-capital
Accumulated deficit
Balance (in shares) at Dec. 31, 2020       125 0   76,787,006    
Balance at Dec. 31, 2020 $ 1,266,900,000     $ 0 $ 0   $ 77,000 $ 1,559,681,000 $ (292,858,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Issuance of stock (in shares)             110,096    
Issuance of common stock 0                
Amortization of stock compensation expense 1,456,000             1,456,000  
Net (loss) income 31,955,000               31,955,000
Dividends on preferred stock (6,124,000)               (6,124,000)
Series B Preferred Stock Accretion, Including Allocated Warrant Fair Value and Transaction Costs (1,452,000)             (1,452,000)  
Dividends on common stock (15,507,000)               (15,507,000)
Balance (in shares) at Mar. 31, 2021       125 0   76,897,102    
Balance at Mar. 31, 2021 1,277,228,000     $ 0 $ 0   $ 77,000 1,559,685,000 (282,534,000)
Temporary equity, balance at Dec. 31, 2020           $ 199,551,000      
Increase (Decrease) in Temporary Equity [Roll Forward]                  
Series B Preferred Stock accretion, including allocated Warrant fair value and transaction costs           1,452,000      
Temporary equity, balance at Mar. 31, 2021           201,003,000      
Balance (in shares) at Dec. 31, 2020       125 0   76,787,006    
Balance at Dec. 31, 2020 1,266,900,000     $ 0 $ 0   $ 77,000 1,559,681,000 (292,858,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Net (loss) income 64,347,000                
Balance (in shares) at Jun. 30, 2021       125 8,050,000   77,089,125    
Balance at Jun. 30, 2021 1,437,191,000     $ 0 $ 8,000   $ 77,000 1,708,972,000 (271,866,000)
Temporary equity, balance at Dec. 31, 2020           199,551,000      
Temporary equity, balance at Jun. 30, 2021           0      
Balance (in shares) at Mar. 31, 2021       125 0   76,897,102    
Balance at Mar. 31, 2021 1,277,228,000     $ 0 $ 0   $ 77,000 1,559,685,000 (282,534,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Issuance of stock (in shares)             192,023    
Issuance of common stock 0                
Issuance of Series C Preferred Stock (in shares)         8,050,000        
Issuance of Series C Preferred Stock 201,250,000       $ 8,000     201,242,000  
Equity Issuance, Shelf Registration, and Equity Distribution Agreement Transaction Costs (6,866,000)             (6,866,000)  
Amortization of stock compensation expense 1,393,000             1,393,000  
Net (loss) income 32,391,000               32,391,000
Dividends on preferred stock (6,214,000)               (6,214,000)
Series B Preferred Stock redemption make-whole payment (22,485,000)             (22,485,000)  
Series B Preferred Stock Accretion, Including Allocated Warrant Fair Value and Transaction Costs (23,997,000)             (23,997,000)  
Dividends on common stock (15,509,000)               (15,509,000)
Balance (in shares) at Jun. 30, 2021       125 8,050,000   77,089,125    
Balance at Jun. 30, 2021 1,437,191,000     $ 0 $ 8,000   $ 77,000 1,708,972,000 (271,866,000)
Temporary equity, balance at Mar. 31, 2021           201,003,000      
Increase (Decrease) in Temporary Equity [Roll Forward]                  
Series B Preferred Stock accretion, including allocated Warrant fair value and transaction costs           23,997,000      
Series B Preferred Stock Redemption at Par Value           (225,000,000)      
Temporary equity, balance at Jun. 30, 2021           $ 0      
Balance (in shares) at Dec. 31, 2021   125 8,050,000       77,183,892    
Balance at Dec. 31, 2021 1,464,706,000 [1]     0 8,000   $ 77,000 1,711,886,000 (247,265,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Issuance of stock (in shares)             1,953    
Issuance of common stock 0                
Amortization of stock compensation expense 1,266,000             1,266,000  
Net (loss) income 23,781,000               23,781,000
Dividends on preferred stock (3,148,000)               (3,148,000)
Dividends on common stock (18,697,000)               (18,697,000)
Balance (in shares) at Mar. 31, 2022   125 8,050,000       77,185,845    
Balance at Mar. 31, 2022 1,467,908,000     0 8,000   $ 77,000 1,713,152,000 (245,329,000)
Balance (in shares) at Dec. 31, 2021   125 8,050,000       77,183,892    
Balance at Dec. 31, 2021 1,464,706,000 [1]     0 8,000   $ 77,000 1,711,886,000 (247,265,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Net (loss) income 18,347,000                
Balance (in shares) at Jun. 30, 2022   125 8,050,000       77,403,381    
Balance at Jun. 30, 2022 1,441,928,000 [1]     0 8,000   $ 77,000 1,714,480,000 (272,637,000)
Balance (in shares) at Mar. 31, 2022   125 8,050,000       77,185,845    
Balance at Mar. 31, 2022 1,467,908,000     0 8,000   $ 77,000 1,713,152,000 (245,329,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Issuance of stock (in shares)             217,536    
Issuance of common stock 0                
Amortization of stock compensation expense 1,328,000             1,328,000  
Net (loss) income (5,434,000)               (5,434,000)
Dividends on preferred stock (3,148,000)               (3,148,000)
Dividends on common stock (18,726,000)               (18,726,000)
Balance (in shares) at Jun. 30, 2022   125 8,050,000       77,403,381    
Balance at Jun. 30, 2022 $ 1,441,928,000 [1]     $ 0 $ 8,000   $ 77,000 $ 1,714,480,000 $ (272,637,000)
[1] The Company’s consolidated Total Assets and Total Liabilities as of June 30, 2022 include assets and liabilities of variable interest entities (“VIEs”) of $3.2 billion and $2.6 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2021 include assets and liabilities of VIEs of $3.2 billion and $2.6 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details.
v3.22.2
Consolidated Statement of Changes in Equity (Unaudited) (Parenthetical) - $ / shares
 3 Months Ended
Jun. 30, 2022
Mar. 31, 2022
Jun. 30, 2021
Mar. 31, 2021
Statement of Stockholders' Equity [Abstract]        
Common stock dividends declared per share $ 0.24 $ 0.24 $ 0.20 $ 0.20
v3.22.2
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Cash flows from operating activities:    
Net income $ 18,347 $ 64,347
Adjustment to reconcile net income to net cash flows from operating activities:    
Amortization and accretion of premiums, discounts and loan origination fees, net (3,627) (3,775)
Amortization of deferred financing costs 7,400 7,644
Decrease of accrued capitalized interest 613 548
Gain on sale of real estate owned, net (13,291) 0
Loss on sales of loans held for investment, net 0 1,626
Stock compensation expense 2,594 2,849
Increase (decrease) of allowance for credit losses, net (see Note 3) 47,174 (7,515)
Cash flows due to changes in operating assets and liabilities:    
Accounts receivable 50 30
Accrued interest receivable (2,260) (2,051)
Accrued expenses and other liabilities 757 (4,716)
Accrued interest payable 1,577 146
Payable to affiliates 5,430 167
Deferred fee income (302) (97)
Other assets 611 1,857
Net cash provided by operating activities 65,073 61,060
Cash flows from investing activities:    
Origination of loans held for investment (535,053) (631,408)
Advances on loans held for investment (58,558) (73,136)
Principal repayments of loans held for investment 414,118 282,583
Sale of real estate owned 73,913 0
Sales of loans held for investment 0 58,374
Net cash (used in) investing activities (105,580) (363,587)
Cash flows from financing activities:    
Payments on collateralized loan obligations (811,100) (36,373)
Proceeds from collateralized loan obligations 907,031 1,037,500
Payments on secured financing agreements (871,970) (868,083)
Proceeds from secured financing agreements 847,479 208,435
Proceeds from asset-specific financing arrangements 124,202 0
Payment of deferred financing costs (10,242) (8,119)
Proceeds from issuance of Series C Cumulative Redeemable Preferred Stock 0 201,250
Series B Preferred Stock redemption make-whole payment 0 (22,485)
Payment of Equity Issuance and Equity Distribution Agreement transaction costs 0 (6,360)
Net cash provided by financing activities 136,251 223,429
Net change in cash, cash equivalents, and restricted cash 95,744 (79,098)
Cash, cash equivalents and restricted cash at beginning of period 261,039 319,669
Cash, cash equivalents and restricted cash at end of period 356,783 240,571
Supplemental disclosure of cash flow information:    
Interest paid 41,604 34,526
Taxes paid 125 973
Supplemental disclosure of non-cash investing and financing activities:    
Collateralized loan obligation proceeds held at trustee 130,704 0
Dividends payable 18,726 [1] 15,500
Principal repayments of loans held for investment held by servicer/trustee, net 259,595 55,872
Accrued Equity Issuance and Transaction Costs 0 506
Accrued deferred financing costs 388 587
Common Stock, Undefined Class    
Cash flows from financing activities:    
Dividends paid (42,853) (44,998)
Preferred Stock, Undefined Class    
Cash flows from financing activities:    
Dividends paid (6,296) (12,338)
Series B Preferred Stock    
Cash flows from financing activities:    
Series B Preferred Stock redemption at par value $ 0 $ (225,000)
[1] The Company’s consolidated Total Assets and Total Liabilities as of June 30, 2022 include assets and liabilities of variable interest entities (“VIEs”) of $3.2 billion and $2.6 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2021 include assets and liabilities of VIEs of $3.2 billion and $2.6 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details.
v3.22.2
Business and Organization
 6 Months Ended
Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Business and Organization Business and Organization
TPG RE Finance Trust, Inc. (together with its consolidated subsidiaries, “we,” “us,” “our” or the “Company”) is organized as a holding company and conducts its operations primarily through TPG RE Finance Trust Holdco, LLC (“Holdco”), a Delaware limited liability company that is wholly owned by the Company, and Holdco’s direct and indirect subsidiaries. The Company conducts its operations as a real estate investment trust (“REIT”) for U.S. federal income tax purposes. The Company is generally not subject to U.S. federal income taxes on its REIT taxable income to the extent that it annually distributes all of its REIT taxable income to stockholders and maintains its qualification as a REIT. The Company also operates its business in a manner that permits it to maintain an exclusion from registration under the Investment Company Act of 1940, as amended.
The Company’s principal business activity is to directly originate and acquire a diversified portfolio of commercial real estate related credit investments, consisting primarily of first mortgage loans and senior participation interests in first mortgage loans secured by institutional-quality properties in primary and select secondary markets in the United States. The Company has in the past invested in commercial real estate debt securities (“CRE debt securities”), primarily investment-grade commercial real estate collateralized loan obligation securities (“CRE CLOs”).
v3.22.2
Summary of Significant Accounting Policies
 6 Months Ended
Jun. 30, 2022
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies 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. The Company believes it has made all necessary adjustments, consisting of only normal recurring items, so that the consolidated financial statements are presented fairly and that estimates made in preparing the consolidated financial statements are reasonable and prudent. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These interim consolidated financial statements should be read in conjunction with the Company’s Form 10-K filed with the SEC on February 23, 2022.
Use of Estimates
The preparation of the consolidated financial statements in conformity with GAAP requires estimates of assets, liabilities, revenues, expenses and disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Actual results could differ from management’s estimates, and such differences could be material. Significant estimates made in the consolidated financial statements include, but are not limited to, the adequacy of our allowance for credit losses and the valuation inputs related thereto and the valuation of financial instruments. Actual amounts and values as of the balance sheet dates may be materially different from the amounts and values reported due to the inherent uncertainty in the estimation process and the limited availability of observable pricing inputs due to the nature of transitional mortgage loans. Also, future amounts and values could differ materially from those estimates due to changes in values and circumstances after the balance sheet date and the limited availability of observable prices.
Principles of Consolidation
Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810—Consolidation (“ASC 810”) provides guidance on the identification of a variable interest entity (“VIE”), for which control is achieved through means other than voting rights, and the determination of which business enterprise, if any, should consolidate the VIE. An entity is considered a VIE if any of the following applies: (1) the equity investors (if any) lack one or more of the essential characteristics of a controlling financial interest; (2) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support; or (3) the equity investors have voting rights that are not proportionate to their economic interests and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. The Company consolidates VIEs in which the Company is considered to be the primary beneficiary. The primary beneficiary is defined as the entity having both of the following characteristics: (1) the power to direct the activities that, when taken together, most significantly impact the VIE’s performance; and (2) the obligation to absorb losses and right to receive the returns from the VIE that would be significant to the VIE.
At each reporting date, the Company reconsiders its primary beneficiary conclusions for all its VIEs to determine if its obligation to absorb losses of, or its rights to receive benefits from, the VIE could potentially be more than insignificant, and will consolidate or not consolidate in accordance with GAAP. See Note 5 for details.
Revenue Recognition
Interest income on loans is accrued using the interest method based on the contractual terms of the loan, adjusted for expected or realized credit losses, if any. The objective of the interest method is to arrive at periodic interest income, including recognition of fees and costs, at a constant effective yield. Premiums, discounts, and origination fees are amortized or accreted into interest income over the lives of the loans using the interest method, or on a straight-line basis when it approximates the interest method. Extension and modification fees are accreted into interest income on a straight-line basis, when it approximates the interest method, over the related extension or modification period. Exit fees are accreted into interest income on a straight-line basis, when it approximates the interest method, over the lives of the loans to which they relate unless they can be waived by the Company or a co-lender in connection with a loan refinancing, or if timely collection of principal and interest is doubtful. Prepayment penalties from borrowers are recognized as interest income when received. Certain of the Company’s loan investments have in the past, and may in the future, provide for additional interest based on the borrower’s operating cash flow or appreciation in the value of the underlying collateral. Such amounts are considered contingent interest and are reflected as interest income only upon certainty of collection. Certain of the Company’s loan investments have in the past, and may in the future, provide for the accrual of interest (in part, or in whole) instead of its current payment in cash, with the accrued interest (“PIK interest”) added to the unpaid principal balance of the loan. Such PIK interest is recognized currently as interest income unless the Company concludes eventual collection is unlikely, in which case the PIK interest is written off.
All interest accrued but not received for loans placed on non-accrual status is subtracted from interest income at the time the loan is placed on non-accrual status. Based on the Company’s judgment as to the collectability of principal, a loan on non-accrual status is either accounted for on a cash basis, where interest income is recognized only upon receipt of cash for interest payments, or on a cost-recovery basis, where all cash receipts reduce the loan’s carrying value, and interest income is only recorded when such carrying value has been fully recovered.
Loans Held for Investment
Loans that the Company has the intent and ability to hold for the foreseeable future, or until maturity or repayment, are reported at their outstanding principal balances net of cumulative charge-offs, interest applied to principal (for loans accounted for using the cost recovery method), unamortized premiums, discounts, loan origination fees and costs. Loan origination fees and direct loan origination costs are deferred and recognized in interest income over the estimated life of the loans using the interest method, or on a straight-line basis when it approximates the interest method, adjusted for actual prepayments. Accrued but not yet collected interest is separately reported as accrued interest and fees receivable on the Company’s consolidated balance sheets.
Non-Accrual Loans
Loans are placed on non-accrual status when the full and timely collection of principal and interest is doubtful, generally when: management determines that the borrower is incapable of, or has ceased efforts toward, curing the cause of a default; the loan becomes 90 days or more past due for principal and interest; or the loan experiences a maturity default. The Company considers an account past due when an obligor fails to pay substantially all (defined as 90%) of the scheduled contractual payments by the due date. In each case, the period of delinquency is based on the number of days payments are contractually past due. A loan may be returned to accrual status if all delinquent principal and interest payments are brought current, and collectability of the remaining principal and interest payments in accordance with the loan agreement is reasonably assured. Loans that in the judgment of the 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.
Loans Held for Sale
The Company may change its intent, or its assessment of its ability, to hold for the foreseeable future loans held for investment based on changes in the real estate market, capital markets, or when a shift in its loan portfolio construction occurs. Once a determination is made to sell a loan, or the Company determines it no longer has the intent and ability to hold a loan held for investment for the foreseeable future, the loan is transferred to loans held for sale. In accordance with GAAP, loans classified as held for sale are recorded at the lower of cost or fair value, net of estimated selling costs, and the loan is excluded from the determination of the current expected credit loss ("CECL") reserve.
Credit Losses
Allowance for Credit Losses for Loans Held for Investment
The Company accounts for its allowance for credit losses on loans held for investment using the Current Expected Credit Loss model of ASC Topic 326, Financial Instruments-Credit Losses (“ASC 326”). Periodic changes to the CECL reserve are recognized through net income on the Company’s consolidated statements of income and comprehensive income. The allowance for credit losses measured under the CECL accounting framework represents an estimate of current expected losses for the Company’s existing portfolio of loans held for investment, and is presented as a valuation reserve on the Company’s consolidated balance sheets. Expected credit losses related to non-cancelable unfunded loan commitments are accounted for as separate liabilities included in accrued expenses and other liabilities on the consolidated balance sheets. The allowance for credit losses for loans held for investment, as reported in the Company’s consolidated balance sheets, is adjusted by a credit loss benefit (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 uncollectible accrued interest receivable in a timely manner pursuant to its non-accrual policy, described above.
The Company considers key credit quality indicators in underwriting loans and estimating credit losses, including but not limited to: the capitalization of borrowers and sponsors; the expertise of the borrowers and sponsors in a particular real estate 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 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, existence of a liquid investment sales market for commercial properties, and availability of replacement short-term or long-term financing. The loans in the Company’s commercial mortgage loan portfolio are secured by collateral of the following property types: office; life science; multifamily; hotel; industrial; mixed-use; land for industrial and office use; condominium; and retail.
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. The Company regularly evaluates on a loan-by-loan basis, typically no less frequently than quarterly, the extent and impact of any credit deterioration associated with the performance and/or value of the underlying collateral property, and the financial and operating capability of the borrower/sponsor. The Company also evaluates the financial strength of loan guarantors, if any, and the borrower’s competency in managing and operating the property or properties. In addition, the Company considers the overall economic environment, real estate 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.
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 structural features; (ii) quality and stability of real estate value and operating cash flow, including debt yield, property type, dynamics of the geography, local market, physical condition, stability of cash flow, leasing velocity and quality and diversity of tenancy; (iii) performance against underwritten business plan; (iv) the frequency and materiality of loan modifications or waivers occasioned by unfavorable variances between the underwritten business plan and actual performance; (v) changes in the capital markets that may impact the refinancing or sale of the loan; and (vi) quality, experience and financial condition of sponsor, borrower and guarantor(s). Based on a 5-point scale, the Company’s loans are rated “1” through “5,” from least risk to greatest risk, respectively, 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; the loan is in default or substantially in default; timely exit from loan via sale or refinancing is questionable; significant risk of principal loss.
The Company generally assigns a risk rating of “3” to all loan investments upon origination, except in the case of specific circumstances warranting an exception.
The Company’s CECL reserve also reflects its estimates of the current and future economic conditions that impact the performance of the commercial real estate assets securing the Company’s loans. These estimates include unemployment rates, inflation rates, interest rates, price indices for commercial property, current and expected future availability of liquidity in the commercial property debt and equity capital markets, and other macroeconomic factors that may influence the likelihood and magnitude of potential credit losses for the Company’s loans during their anticipated term. The Company licenses certain macroeconomic financial forecasts to inform its view of the potential future impact that broader economic conditions may have on its loan portfolio’s performance. Selection of the economic forecast or forecasts used, in conjunction with loan level inputs, to determine the CECL reserve requires significant judgment about future events that, while based on the information available to the Company as of the balance sheet date, are ultimately unknowable with certainty. The actual economic conditions impacting the Company’s portfolio could vary significantly from the estimates the Company made for the periods presented.
The key inputs to the Company's estimation of its allowance for credit losses as of June 30, 2022 were impacted by dislocations in the capital markets, increased interest rates, accelerating inflationary trends, a heightened risk of recession, and geopolitical conflicts. Inherent uncertainty in the estimation process and the limited availability of observable pricing inputs due to the nature of transitional mortgage loans also constrain the Company's ability to estimate key inputs utilized to calculate its allowance for credit losses. Key inputs to the estimate include, but are not limited to: LTV; debt service coverage ratio; current and future operating cash flow and performance of collateral properties; the financial strength and liquidity of borrowers and sponsors; capitalization rates and discount rates used to value commercial real estate properties; and market liquidity based on market indices or observable transactions involving the sale or financing of commercial properties. Estimates made by the Company are subject to change. Actual results could differ from management’s estimates, and such differences could be material.
Credit Loss Measurement
The amount of allowance for credit losses is influenced by the size of the Company’s loan portfolio, loan quality and duration, collateral operating performance, risk rating, delinquency status, historic loss experience and other characteristics influencing loss expectations, such as reasonable and supportable forecasts of economic conditions. The Company employs two methods to estimate credit losses in its loan portfolio: a loss-given-default (“LGD”) model-based approach utilized for substantially all of its loans; and an individually-assessed approach for loans for which the Company concludes it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan, or are individually-assessed because the loan is considered to be "collateral-dependent" as the repayment of the loan is expected to be provided substantially through the operation or sale of the underlying collateral and the borrower is experiencing financial difficulty.
Once the expected credit loss amount is determined, an allowance for credit losses is established. A loan will be written off through credit loss (expense) benefit, net in the consolidated statements of income and comprehensive income when it is deemed non-recoverable upon a realization event. This is generally at the time the loan is settled, transferred or exchanged. Non-recoverability may also be concluded by the Company if, in its determination, it is nearly certain that all amounts due will not be collected. This loss is equal to the difference between the cash received, or expected to be received, and the carrying value of the asset. Factors considered by the Company in determining whether the expected credit loss is not recoverable include whether the Company determines that the loan is uncollectible, which means repayment is deemed to be delayed beyond a reasonable time, a loss becomes evident due to a borrower’s lack of assets and liquidity, or a borrower’s sponsor is unwilling or unable to support the loan.
Allowance for Credit Losses for Loans Held for Investment – Model-Based Approach
The model-based approach used 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 120,000 commercial real estate loans dating back to 1998, in an analytical model to compute statistical credit loss factors (i.e., probability-of-default, loss severity, and loss-given-default). These credit loss factors are utilized by the Company together with loan specific inputs such as property-level operating performance information, delinquency status, indicators of credit quality, and other credit trends and risk characteristics. Additionally, the Company considers relevant loan and borrower specific qualitative factors, incorporates its expectations about the impact of current macroeconomic and local market conditions and reasonable and supportable operating forecasts on expected future credit losses in deriving its estimate. For the period beyond which the Company is able to make reasonable and supportable forecasts, the Company reverts to unadjusted historical loan loss information.

In certain instances, the Company uses a probability-weighted outcome approach to estimate future recovery amounts. The probability-weighted outcome approach is used when multiple credit resolution paths may exist, some of which may involve disparate outcomes.
Allowance for Credit Losses for Loans Held for Investment – Individually-Assessed Approach
In instances where the Company concludes a loan repayment is entirely dependent on the sale of the underlying collateral, or when it is deemed probable that the Company will not be able to collect all amounts due according to the contractual terms of the loan, the Company individually assesses the allowance for credit loss for the underlying loan. The amount of expected credit loss is determined using broadly accepted and standard real estate valuation techniques (most commonly, a discounted cash flow model and real estate sales comparables), and considers substantially the same credit factors as utilized in the model-based method. In instances where the Company determines foreclosure of the underlying collateral is probable, the expected credit loss is measured as the difference between the amortized cost basis of the loan and the fair value of the underlying collateral as of the measurement date. The fair value of the underlying collateral is adjusted for the estimated cost to sell if repayment or satisfaction of a loan is dependent on the sale (rather than the operation) of the underlying collateral in instances where foreclosure is not probable.
Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. Evaluations of the loan portfolio in future periods, given the prevailing forecasts and credit loss factors, may result in significant changes to the Company's allowance for credit losses and credit loss expense.
Unfunded Loan Commitments
The Company’s first mortgage loans often contain provisions for future funding of a pre-determined portion of capital and other costs incurred by the borrower in executing its business plan. These deferred fundings are conditioned upon the borrower’s execution of its business plan with respect to the underlying collateral property securing the loan. These deferred fundings are typically for base building work, tenant improvement costs and leasing commissions, interest reserves, and occasionally to fund forecasted operating deficits during lease-up. These deferred funding commitments may be for specific periods, often require satisfaction by the borrower of conditions precedent, and may contain termination clauses at the option of the borrower or, more rarely, at the Company’s option. The total amount of unfunded commitments does not necessarily represent actual amounts that may be funded in cash in the future, since commitments may expire without being drawn, may be cancelled if certain conditions are not satisfied by the borrower, or borrowers may elect not to borrow some or all of the unused commitment. The Company does not recognize these unfunded loan commitments in its consolidated financial statements.
The Company applies its expected credit loss estimates to all future funding commitments that cannot be contractually terminated at the Company’s option. The Company maintains a separate allowance for expected credit losses from unfunded loan commitments, which is included in accrued expenses and other liabilities on the consolidated balance sheets. The Company estimates the amount of expected losses by calculating a commitment usage factor over the contractual period for exposures that are not unconditionally cancellable by the Company and applies the loss factors used in the allowance for credit loss methodology described above to the results of the usage calculation to estimate the liability for credit losses related to unfunded commitments for each loan.
Real Estate Owned
Real estate acquired through a foreclosure or by deed-in-lieu of foreclosure is classified as real estate owned (“REO”) and held for investment on the Company’s consolidated balance sheet until a pending sales transaction meets the criteria of ASC 360-10-45-9 after which the real estate is considered to be held for sale, or is sold. The Company's cost basis in REO is equal to the estimated fair value of the collateral at the date of acquisition, less estimated selling costs. The estimated fair value of REO is determined using a discounted cash flow model and inputs that include the highest and best use for each asset, estimated future values based on extensive discussions with local brokers, investors and other market participants, the estimated holding period for the asset, and discount rates that reflect estimated investor return requirements for the risks associated with the expected use of each asset. If the estimated fair value of REO is lower than the carrying value of the related loan upon acquisition, the difference, along with any previously recorded specific CECL reserve, is recorded through Credit Loss (Benefit) Expense in the consolidated statements of income and comprehensive income.
REO is initially measured at fair value and is thereafter subject to an ongoing impairment analysis. Subsequent to a REO acquisition, events or circumstances may occur that result in a material and sustained decrease in the cash flows generated from the asset. REO is evaluated for recoverability, on a fair value basis, when impairment indicators are identified. Any impairment loss, revenue and expenses from operations of the properties, and resulting gains or losses on sale are included in the consolidated statements of income and comprehensive income.
Investment Portfolio Financing Arrangements
The Company finances its portfolio of loans, or participation interests therein, and REO using secured financing agreements, including secured credit agreements, secured revolving credit facilities, asset-specific financing arrangements, mortgage loans payable, and collateralized loan obligations. The related borrowings are recorded as separate liabilities on the Company’s consolidated balance sheets. Interest income earned on the investments and interest expense incurred on the related borrowings are reported separately on the Company’s consolidated statements of income 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 June 30, 2022, the Company transferred, on a non-recourse basis, 100% of the senior mortgage loan that the Company 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 loans transferred, the Company retains: no control over the mortgage loan; no economic interest in the mortgage loan; and no recourse to the purchaser or the borrower. Consequently, based on these circumstances and because the Company does not have any continuing involvement with the transferred senior mortgage loan, these syndications are accounted for as sales under GAAP and are removed from the Company’s consolidated financial statements at the time of transfer. The Company’s consolidated balance sheets only include the separate mezzanine loan remaining after the transfer.
For more information regarding the Company’s investment portfolio financing arrangements, see Note 6.
Fair Value Measurements
The Company follows ASC 820-10, Fair Value Measurements and Disclosures (“ASC 820-10”), for its holdings of financial instruments. ASC 820-10 defines fair value, establishes a framework for measuring fair value in accordance with GAAP and expands disclosure of fair value measurements. ASC 820-10 determines fair value to be the price that would be received for a financial instrument in a current sale, which assumes an orderly transaction between market participants on the measurement date. The Company determines the estimated fair value of financial assets and liabilities using the three-tier fair value hierarchy established by GAAP, which prioritizes the inputs used in measuring fair value. GAAP establishes market-based or observable inputs as the preferred source of values followed by valuation models using management assumptions in the absence of market inputs. The financial instruments recorded at fair value on a recurring basis in the Company’s consolidated financial statements are cash, cash equivalents, and restricted cash. The three levels of inputs that may be used to measure fair value are as follows:
Level I—Valuations based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to access.
Level II—Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.
Level III—Valuations based on inputs that are unobservable and significant to the overall fair value measurement.
For certain financial instruments, the inputs used by management to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value hierarchy is appropriate for such financial instrument is based on the lowest level of input that is significant to the fair value measurement.
The assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument. The Company may use valuation techniques consistent with the market and income approaches to measure the fair value of its assets and liabilities. The market approach uses third-party valuations and information obtained from market transactions involving identical or similar assets or liabilities. The income approach uses projections of the future economic benefits of an instrument to determine its fair value, such as in the discounted cash flow methodology. The inputs or methodology used for valuing financial instruments are not necessarily an indication of the risk associated with investing in these financial instruments. Transfers between levels of the fair value hierarchy are assumed to occur at the end of the reporting period.
The following methods and assumptions are used by our Manager to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value:
•Cash and cash equivalents: the carrying amount of cash and cash equivalents approximates fair value.
•Loans held for investment, net: using a discounted cash flow methodology employing a discount rate for loans of comparable credit quality, structure, and LTV based upon appraisal information and current estimates of the value of collateral property performed by the Manager, and credit spreads for loans of comparable risk (as determined by the Manager based on the factors previously described) as corroborated by inquiry of other market participants.
•Loans held for sale: estimated fair market value based on sale comparables as corroborated by inquiry of other market participants or independent market data providers.
•Secured revolving credit facilities, asset-specific financings, and mortgage loan payable (if any): based on the rate at which a similar secured revolving credit facility, asset-specific financing, or mortgage loan payable (if any) would currently be priced, as corroborated by inquiry of other market participants.
•CRE Collateralized Loan Obligations, net: indications of value from dealers active in trading similar or substantially similar securities, observable quotes from market data services, reported prices and spreads for recent new issues, and Manager estimates of the credit spread at which similar bonds would be issued, or traded, in the new issue and secondary markets.
•Other assets and liabilities subject to fair value measurement, including receivables, payables and accrued liabilities have carrying values that approximate fair value due to their short-term nature.
As discussed above, market-based or observable inputs are generally the preferred source of values for purposes of measuring the fair value of the Company’s assets under GAAP. The commercial property investment sales and commercial mortgage loan markets have experienced uneven liquidity due to global macroeconomic conditions, including heightened inflation, slower growth or recession, changes to fiscal and monetary policy, increased interest rates, currency fluctuations, labor shortages and challenges in the supply chain, coupled with the war in Ukraine and the lingering aftereffects 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 plentiful market inputs, GAAP permits the use of management assumptions to measure fair value. Inherent uncertainty in the estimation process, and the limited availability of observable pricing inputs due to the nature of transitional mortgage loans, also constrain the Company's ability to estimate key inputs utilized to calculate its estimated fair value measurements.
Income Taxes
The Company qualifies and has elected to be taxed as a REIT for U.S. federal income tax purposes under the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), commencing with its initial taxable year ended December 31, 2014. To the extent that it annually distributes at least 90% of its REIT taxable income to stockholders and complies with various other requirements as a REIT, the Company generally will not be subject to U.S. federal income taxes on its distributed REIT taxable income. In 2017, the Internal Revenue Service issued a revenue procedure permitting “publicly offered” REITs to make elective stock dividends (i.e., dividends paid in a mixture of stock and cash), with at least 20% of the total distribution being paid in cash, to satisfy their REIT distribution requirements. Pursuant to this revenue procedure, the Company may elect to make future distributions of its taxable income in a mixture of stock and cash. If the Company fails to continue to qualify as a REIT in any taxable year and does not qualify for certain statutory relief provisions, the Company will be subject to U.S. federal and state income taxes at regular corporate rates beginning with the year in which it fails to qualify and may be precluded from being able to elect to be treated as a REIT for the Company’s four subsequent taxable years. Even though the Company currently qualifies for taxation as a REIT, the Company may be subject to certain U.S. federal, state, local and foreign taxes on the Company’s income and property and to U.S. federal income and excise taxes on the Company’s undistributed REIT taxable income.
In certain instances, the Company may generate excess inclusion income (“EII”) within the Sub-REIT structure it established for the purpose of issuing collateralized loan obligations (“CRE CLOs”). EII has in the past been present in certain of the Company’s CRE CLOs due to the sharp decline in LIBOR since the issuance of the liabilities by certain of the Company's CRE CLOs', loans with high interest rate floors that are contributed into the CRE CLOs, and liabilities largely based on unfloored LIBOR or Compounded SOFR. EII, which is treated as unrelated business taxable income (“UBTI”), is an obligation of the Company and is allocated only to a taxable REIT subsidiary (“TRS”) and not to its common stockholders.
Deferred tax assets and liabilities are recognized for future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the periods in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period in which the enactment date occurs. Under ASC Topic 740, Income Taxes (“ASC 740”), a valuation allowance is established when management believes it is more likely than not that a deferred tax asset will not be realized. Currently, the Company has no temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis.
The Company intends to continue to operate in a manner consistent with, and to continue to meet the requirements to be treated as, a REIT for tax purposes and to distribute all of its REIT taxable income.
Earnings per Common Share
The Company calculates basic earnings per share using the two-class method which defines unvested stock-based compensation awards that contain nonforfeitable rights to dividends as participating securities. The two-class method is an allocation formula that determines earnings per share for each share of common stock and participating securities according to dividends declared and participation rights in undistributed earnings. Under this method, all earnings (distributed and undistributed) are allocated to common shares and participating securities based on their respective rights to receive dividends. Basic earnings per common share is calculated by dividing earnings allocated to common shareholders by the weighted-average number of common shares outstanding during the period.
Diluted earnings per share is computed under the more dilutive of the treasury stock method or the two-class method. The computation of diluted earnings per share is based on the weighted average number of participating securities outstanding plus the incremental shares that would be outstanding assuming exercise of warrants to purchase common stock (the “Warrants”, see Note 12) issued in connection with the Company’s no-longer-outstanding Series B Cumulative Redeemable Preferred Stock (the “Series B Preferred Stock”), which are exercisable on a net-share settlement basis. The number of incremental shares is calculated utilizing the treasury stock method.
The Company accounts for unvested stock-based compensation awards that contain non-forfeitable dividend rights or dividend equivalents (whether paid or unpaid) as participating securities, which are included in the computation of earnings per share pursuant to the two-class method. The Company excludes participating securities and Warrants from the calculation of diluted weighted average shares outstanding in periods of net losses since their effect would be anti-dilutive.
Stock-based Compensation
Stock-based compensation consists of awards issued by the Company to certain employees of affiliates of the Manager and certain members of the Company’s Board of Directors. The stock-based compensation awards to certain employees of affiliates of the Manager generally vest in installments over a fixed period. Deferred stock units granted to the Company’s Board of Directors prior to December 2021 fully vested on the grant date and accrued, and will continue to accrue, common stock dividends that are paid-in kind through additional deferred stock units on a quarterly basis. Deferred stock units granted in December 2021 and in future periods will fully vest on the grant date, and will continue to accrue and be paid, cash common stock dividends on a quarterly basis. Stock-based compensation expense is recognized in net income on a straight-line basis over the applicable award’s vesting period. Forfeitures of stock-based compensation awards are recognized as they occur.
Deferred Financing Costs
Deferred financing costs are reflected net of the liabilities to which they relate, currently collateralized loan obligations and secured financing agreements, which include secured credit agreements and a secured revolving credit facility, on the Company’s consolidated balance sheets. These costs are amortized in interest expense using the interest method, or on a straight-line basis when it approximates the interest method, as follows: (i) for secured financing agreements other than CRE CLOs, the initial term of the financing agreement, or in the case of costs directly associated with the loan, over the life of the financing agreement or the loan, whichever is shorter; and (ii) for CRE CLOs, over the estimated life of the liabilities issued based on the underlying loans’ initial maturity dates, considering the expected repayment behavior of the loans collateralizing the notes and the impact of any reinvestment periods, as of the closing date.
Cash and Cash Equivalents
Cash and cash equivalents 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 June 30, 2022 and December 31, 2021. The balances in these accounts may exceed the insured limits.
Pursuant to financial covenants applicable to Holdco, which is the guarantor of the Company’s recourse indebtedness, the Company is required to maintain minimum cash equal to the greater of (i) $15 million or (ii) the product of 5% and the aggregate recourse indebtedness of the Company. As of June 30, 2022 and December 31, 2021, the Company held as part of its total cash balances $17.3 million and $15.0 million to comply with this covenant, respectively.
Restricted Cash
Restricted cash primarily represents deposits paid by potential borrowers to cover certain costs incurred by the Company in connection with loan originations. These deposits may be returned to borrowers, after deducting eligible transaction costs paid by the Company for the benefit of the borrowers, upon the closing of a loan transaction, or if a loan transaction does not close and deposit proceeds remain. As of June 30, 2022, cash and cash equivalents of $356.0 million has been combined with $0.8 million of restricted cash in the consolidated statement of cash flows. As of December 31, 2021, cash and cash equivalents of $260.6 million has been combined with $0.4 million of restricted cash in the consolidated statement of cash flows.
Collateralized Loan Obligation Proceeds Held at Trustee
Collateralized Loan Obligation Proceeds Held at Trustee represent cash held by the Company’s collateralized loan obligations pending reinvestment in eligible collateral. See Note 5 for additional details.
Accounts Receivable from Servicer/Trustee
Accounts receivable from Servicer/Trustee represents cash proceeds from loan activities that have not been remitted to the Company based on established servicing and borrowing procedures. Such amounts are generally held by the Servicer/Trustee for less than 30 days before being remitted to the Company.
Stockholders’ Equity
Total Stockholders’ Equity may include preferred stock, common stock, and derivative instruments indexed to the Company's common stock such as warrants or other embedded options within financing arrangements that may be classified as temporary or permanent equity. Common shares generally represent a basic ownership interest in an entity and a residual corporate interest in liquidation, bearing the ultimate risk of loss and receiving the benefit of success. Common shares are usually perpetual in nature with voting rights and dividend rights. Preferred shares are usually characterized by the life of the instrument (i.e., perpetual or redeemable) and the ability of a holder to convert the equity instrument into cash, common shares, or a combination thereof. The terms of preferred shares can vary significantly, including but not limited to, an equity instrument’s dividend rate, term (e.g., existence of a stated redemption date), conversion features, voting rights, and liquidation preferences. Derivative instruments indexed to the Company's common stock such as warrants or other embedded options within financing arrangements are generally classified based on which party controls the contract settlement mechanism and the nature of the settlement terms that may require, or allow, the Company to make a cash payment, issue common shares, or a combination thereof to satisfy its obligation of the underlying contract.
Temporary Equity
Equity instruments that are redeemable for cash or other assets are classified as temporary equity if the instrument is redeemable, at the option of the holder, at a fixed or determinable price on a fixed or determinable date or upon the occurrence of an event that is not solely within the control of the issuer.
Redeemable equity instruments are initially carried at the relative fair value of the equity instrument at the issuance date, which is subsequently adjusted at each balance sheet date if the instrument is currently redeemable or probable of becoming redeemable. The Series B Preferred Stock issued in connection with the Investment Agreement described in Note 12 is classified as temporary equity in the accompanying financial statements. The Company elected the accreted redemption value method under which it accreted changes in the redemption value over the period from the date of issuance of the Series B Preferred Stock to the earliest costless redemption date (May 28, 2024, the fourth anniversary) using the effective interest method. Such adjustments are included in Accretion of Discount on Series B Cumulative Redeemable Preferred Stock on the Company’s consolidated statements of changes in equity and treated similarly to a dividend on preferred stock for GAAP purposes. On June 16, 2021, the Company redeemed all 9,000,000 outstanding shares of the Series B Preferred Stock and accelerated the accretion of the redemption value. As of June 30, 2022 and December 31, 2021, the Company had no shares of Series B Preferred Stock outstanding. The Series B Preferred Stock issuance, including details related to the Warrants, and redemption are described in Note 12.
Permanent Equity
The Company has preferred stock, common stock, and Warrants issued in connection with the Series B Preferred Stock transaction that are outstanding and classified as permanent equity. The Warrants are exercisable on a net-settlement basis and expire on May 28, 2025. None of the Warrants have been exercised as of June 30, 2022. The Company’s common stock is perpetual with voting rights and dividend rights. On June 14, 2021, the Company issued 8,050,000 shares of Series C Cumulative Redeemable Preferred Stock (the “Series C Preferred Stock”) that is classified as permanent equity. The outstanding shares of Series C Preferred Stock have a 6.25% dividend rate and may be redeemed by the Company at its option on and after June 14, 2026. The Series C Preferred Stock issuance and Warrants related to the Series B Preferred Stock, are described in Note 12.
Recently Issued Accounting Pronouncements
In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("ASU 2020-04"). ASU 2020-04 provides optional expedients and exceptions to GAAP requirements for modifications to debt agreements, leases, derivatives, and other contracts, related to the market transition from LIBOR, and certain other floating rate benchmark indices, or collectively, IBORs, to alternative reference rates. ASU 2020-04 generally considers contract modifications related to reference rate reform to be an event that does not require contract remeasurement at the modification date nor a reassessment of a previous accounting determination. In January 2021, the FASB clarified the scope of that guidance with the issuance of ASU 2021-01, “Reference Rate Reform: Scope.” This ASU provides optional guidance for a limited period to ease the burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. This would apply to companies meeting certain criteria that have contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. This standard is effective for the Company immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022.
The Company continues to evaluate the documentation and control processes associated with its assets and liabilities to manage the transition from LIBOR to an alternative rate endorsed by the Alternative Reference Rates Committee of the Federal Reserve System, and continues to utilize required resources to revise its control and risk management systems to ensure there is no disruption to our day-to-day operations from the transition as it occurs. The Company will continue to employ prudent risk management as it relates to the potential financial, operational and legal risks associated with the expected cessation of LIBOR, and to ensure that its assets and liabilities generally remain match-indexed following this event. For the three and six months ended June 30, 2022, the Company has not elected to apply the temporary optional expedients and exceptions and will be reevaluating the application each quarter.
Recently Adopted Accounting Pronouncements
In August 2020, the FASB issued ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815 – 40) (“ASU 2020-06”). ASU 2020-06 simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. The ASU is part of the FASB’s simplification initiative, which aims to reduce unnecessary complexity in GAAP. The ASU’s amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. The Company's adoption of ASU 2020-06 on January 1, 2022 did not have a material impact on the Company's consolidated financial statements.
In April 2021, the FASB issued ASU 2021-04, which included Topic 260 “Earnings Per Share”. This guidance clarifies and reduces diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options due to a lack of explicit guidance in the FASB Codification. The ASU 2021-04 is effective for all entities for fiscal years beginning after December 15, 2021. Early adoption was permitted. The Company's adoption of ASU 2021-04 on January 1, 2022 did not have a material impact on the Company's consolidated financial statements.
In March 2022, the FASB issued ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The amendments in this ASU eliminate the accounting guidance for TDRs by creditors in Subtopic 310-40, Receivables—Troubled Debt Restructurings by Creditors, while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Additionally, for public business entities, the amendments in this ASU require that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost. The ASU’s amendments are effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years and early adoption is permitted. The Company's adoption of ASU 2022-02 on January 1, 2022 did not have a material impact on the Company's consolidated financial statements.
v3.22.2
Loans Held for Investment and the Allowance for Credit Losses
 6 Months Ended
Jun. 30, 2022
Loans and Leases Receivable Disclosure [Abstract]  
Loans Held for Investment and the Allowance for Credit Losses Loans Held for Investment and the Allowance for Credit Losses
The Company originates and acquires first mortgage and mezzanine loans secured by commercial properties. The Company considers these loans to comprise a single portfolio of mortgage loans, and the Company has developed its systematic methodology to determine the allowance for credit losses based on a single portfolio. For purposes of certain disclosures herein, the Company disaggregates this portfolio segment into the following classes of finance receivables: senior loans; and subordinated and mezzanine loans. These loans can potentially subject the Company to concentrations of credit risk, including, without limitation: property type collateralizing the loan; loan category; loan size; loans to a single sponsor; and loans in a single geographic area. The Company’s loans held for investment are accounted for at amortized cost. Interest accrued but not yet collected is separately reported within accrued interest and fees receivable on the Company’s consolidated balance sheets. Amounts within that caption relating to loans held for investment were $13.5 million and $14.3 million as of June 30, 2022 and December 31, 2021, respectively.
During the six months ended June 30, 2022, the Company originated twelve mortgage loans with a total commitment of $613.3 million, an initial unpaid principal balance of $537.3 million, and unfunded commitments at closing of $76.0 million.
During the six months ended June 30, 2022, the Company received eight full loan repayments of $717.3 million, and partial principal payments including accrued PIK interest payments, of $87.8 million across nine loans, for total loan repayments of $805.0 million.
The following table details overall statistics for the Company’s loans held for investment portfolio (dollars in thousands):
June 30, 2022December 31, 2021
Balance sheet portfolio
Total loan exposure(1)
Balance sheet portfolio
Total loan exposure(1)
Number of loans73746970
Floating rate loans100.0 %100.0 %100.0 %100.0 %
Total loan commitment$5,186,472$5,318,472$5,411,944$5,543,944
Unpaid principal balance(2)
$4,710,161$4,842,161$4,919,343$5,051,343
Unfunded loan commitments(3)
$470,869$470,869$487,773$487,773
Amortized cost$4,701,410$4,701,410$4,909,202$4,909,202
Weighted average credit spread3.4 %3.5 %3.4 %3.4 %
Weighted average all-in yield(4)
5.6 %5.6 %4.8 %4.8 %
Weighted average term to extended maturity (in years)(5)
2.72.82.82.8
_______________________
(1)In certain instances, the Company creates structural leverage through the co-origination or non-recourse syndication of a senior loan interest to a third-party. In either case, the senior mortgage loan (i.e., the non-consolidated senior interest) is not included on the Company’s balance sheet. When the Company creates structural leverage through the co-origination or non-recourse syndication of a senior loan interest to a third-party, the Company retains on its balance sheet a mezzanine loan. Total loan exposure encompasses the entire loan portfolio the Company originated, acquired and financed. As of June 30, 2022 and December 31, 2021, the Company had outstanding one non-consolidated senior interest of $132.0 million.
(2)Unpaid principal balance includes PIK interest of $2.4 million and $3.0 million as of June 30, 2022 and December 31, 2021, respectively.
(3)Unfunded loan commitments may be funded over the term of each loan, subject in certain cases to an expiration date or a force-funding date, primarily to finance property improvements or lease-related expenditures by the Company’s borrowers, to finance operating deficits during renovation and lease-up, and in limited instances to finance construction.
(4)As of June 30, 2022, all of the Company’s loans were floating rate. Loans originated by the Company before December 31, 2021 are indexed to LIBOR, while loans originated after January 1, 2022 are indexed to Term SOFR. As of June 30, 2022, based on the total loan commitments of the Company’s loan portfolio, 11.8% (or $0.6 billion) of the Company’s loans were subject to Term SOFR and 88.2% (or $4.6 billion) were subject to LIBOR as the benchmark interest rate. In addition to credit spread, all-in yield includes the amortization of deferred origination fees, purchase price premium and discount if any, loan origination costs and accrual of both extension and exit fees. All-in yield for the total portfolio assumes the applicable floating benchmark interest rate as of June 30, 2022 for weighted average calculations.
(5)Extended maturity assumes all extension options are exercised by the borrower; provided, however, that the Company’s loans may be repaid prior to such date. As of June 30, 2022, based on the unpaid principal balance of the Company’s total loan exposure, 43.3% of the Company’s loans were subject to yield maintenance or other prepayment restrictions and 56.7% were open to repayment by the borrower without penalty.
The following tables present an overview of the Company’s loans held for investment portfolio by loan seniority (dollars in thousands):
June 30, 2022
Loans held for investment, netOutstanding principalUnamortized premium (discount) and
loan origination fees, net 		Amortized cost
Senior loans$4,675,161 $(8,751)$4,666,410 
Subordinated and mezzanine loans35,000 — 35,000 
Total$4,710,161 $(8,751)$4,701,410 
Allowance for credit losses(84,156)
Loans held for investment, net$4,617,254 
December 31, 2021
Loans held for investment, netOutstanding principalUnamortized premium (discount) and
loan origination fees, net 		Amortized cost
Senior loans$4,884,343 $(10,101)$4,874,242 
Subordinated and mezzanine loans35,000 (40)34,960 
Total$4,919,343 $(10,141)$4,909,202 
Allowance for credit losses(41,999)
Loans held for investment, net$4,867,203 
For the six months ended June 30, 2022, the Company’s loans held for investment portfolio activity was as follows (dollars in thousands):
Carrying value
Balance as of January 1, 2022$4,867,203 
Additions during the period:
Loans originated535,053 
Additional fundings58,558 
Amortization of origination fees3,627 
Deductions during the period:
Collection of principal(804,417)
Collection of accrued PIK interest(613)
(Increase) of allowance for credit losses(42,157)
Balance as of June 30, 2022
$4,617,254 
As of June 30, 2022 and December 31, 2021, there was $8.8 million and $10.1 million, respectively, of unamortized loan fees included in loans held for investment, net in the consolidated balance sheets. As of June 30, 2022 and December 31, 2021, there were no unamortized discounts included in loans held for investment at amortized cost on the consolidated balance sheets.
Loan Risk Ratings
The Company evaluates all of its loans to assign risk ratings on a quarterly basis on a 5-point scale. As described in Note 2, the Company’s loans are rated “1” through “5,” from least risk to greatest risk, respectively. The Company generally assigns a risk rating of “3” to all loan investments upon origination, except when specific circumstances warrant an exception.
The following tables present the Company's loans held for investment portfolio on an amortized cost basis by origination year, grouped by risk rating (dollars in thousands):
June 30, 2022
Amortized cost by origination year
20222021202020192018PriorTotal
Senior loans by internal risk ratings:
1$— $— $— $— $— $— $— 
2— 33,680 — 61,998 — 253,950 349,628 
3539,935 1,576,195 98,408 778,708 264,678 12,032 3,269,956 
4— — 78,269 497,742 251,307 140,776 968,094 
5— — — — 78,732 — 78,732 
Total senior loans$539,935 $1,609,875 $176,677 $1,338,448 $594,717 $406,758 $4,666,410 
Subordinated and mezzanine loans by internal risk ratings:
1$— $— $— $— $— $— $— 
2— — — — — — — 
3— — — 35,000 — — 35,000 
4— — — — — — — 
5— — — — — — — 
Total subordinated and mezzanine loans— — — 35,000 — — 35,000 
Total$539,935 $1,609,875 $176,677 $1,373,448 $594,717 $406,758 $4,701,410 
December 31, 2021
Amortized cost by origination year
2021 2020 2019 2018 2017 Prior Total
Senior loans by internal risk ratings:
1$— $— $— $— $— $— $— 
233,621 — 82,461 242,614 168,355 — 527,051 
31,600,659 95,858 1,400,670 407,509 169,934 17,163 3,691,793 
4— 78,013 154,093 183,750 216,542 — 632,398 
5— — — 23,000 — — 23,000 
Total senior loans$1,634,280 $173,871 $1,637,224 $856,873 $554,831 $17,163 $4,874,242 
Subordinated and mezzanine loans by internal risk ratings:
1$— $— $— $— $— $— $— 
2— — — — — — — 
3— — 34,960 — — — 34,960 
4— — — — — — — 
5— — — — — — — 
Total subordinated and mezzanine loans— — 34,960 — — — 34,960 
Total$1,634,280 $173,871 $1,672,184 $856,873 $554,831 $17,163 $4,909,202 
Loans acquired rather than originated are presented in the table above in the column corresponding to the year of origination, not acquisition.
The table below summarizes the Company’s loans held for investment portfolio on an amortized cost basis, by the results of its internal risk rating review process performed (dollars in thousands):
Risk ratingJune 30, 2022December 31, 2021
1$— $— 
2349,628 527,051 
33,304,956 3,726,753 
4968,094 632,398 
578,732 23,000 
Total$4,701,410 $4,909,202 
Allowance for credit losses(84,156)(41,999)
Carrying value$4,617,254 $4,867,203 
Weighted average risk rating(1)
3.2 3.0 
________________________________
(1)Weighted average risk rating calculated based on the amortized cost balance at period end.
The weighted average risk rating of the Company’s loans held for investment portfolio increased to 3.2 as of June 30, 2022 compared to 3.0 as of December 31, 2021.
Allowance for Credit Losses
The Company’s allowance for credit losses developed pursuant to ASC 326 reflects its current estimate of potential credit losses related to its loans held for investment portfolio as of June 30, 2022. As part of its allowance for credit losses, the Company maintains a separate allowance for credit losses related to unfunded loan commitments which is included in accrued expenses and other liabilities on the consolidated balance sheets. See Note 2 for additional details regarding the Company's accounting policies and estimation of its allowance for credit losses.
The following tables present activity in the allowance for credit losses for loans by finance receivable class (dollars in thousands):
For the Three Months Ended June 30, 2022
Senior loansSubordinated and
mezzanine loans		Total
Allowance for credit losses for loans held for investment:
Beginning balance at April 1, 2022
$45,940 $367 $46,307 
Allowance for (reversal of) credit losses, net37,545 304 37,849 
Subtotal83,485 671 84,156 
Allowance for credit losses on unfunded loan commitments:
Beginning balance at April 1, 2022
4,786 — 4,786 
Allowance for (reversal of) credit losses, net4,441 — 4,441 
Subtotal9,227 — 9,227 
Total allowance for credit losses$92,712 $671 $93,383 
For the Three Months Ended June 30, 2021
Senior loansSubordinated and
mezzanine loans		Total
Allowance for credit losses for loans held for investment:
Beginning balance at April 1, 2021
$55,155 $1,486 $56,641 
Allowance for (reversal of) credit losses, net(3,724)(976)(4,700)
Subtotal51,431 510 51,941 
Allowance for credit losses on unfunded loan commitments:
Beginning balance at April 1, 2021
2,084 65 2,149 
Allowance for (reversal of) credit losses, net1,276 (54)1,222 
Subtotal3,360 11 3,371 
Total allowance for credit losses$54,791 $521 $55,312 
For the Six Months Ended June 30, 2022
Senior loansSubordinated and
mezzanine loans 		Total
Allowance for credit losses for loans held for investment:
Beginning balance at January 1, 2022$41,193 $806 $41,999 
Allowance for (reversal of) credit losses, net42,292 (135)42,157 
Subtotal83,485 671 84,156 
Allowance for credit losses on unfunded loan commitments:
Beginning balance at January 1, 20224,210 — 4,210 
Allowance for (reversal of) credit losses, net5,017 — 5,017 
Subtotal9,227 — 9,227 
Total allowance for credit losses$92,712 $671 $93,383 
For the Six Months Ended June 30, 2021
Senior loans Subordinated and
mezzanine loans 		Total
Allowance for credit losses for loans held for investment:
Beginning balance at January 1, 2021$58,210 $1,730 $59,940 
Allowance for (reversal of) credit losses, net(6,779)(1,220)(7,999)
Subtotal51,431 510 51,941 
Allowance for credit losses on unfunded loan commitments:
Beginning balance at January 1, 20212,756 132 2,888 
Allowance for (reversal of) credit losses, net604 (121)483 
Subtotal3,360 11 3,371 
Total allowance for credit losses$54,791 $521 $55,312 
The Company’s allowance for credit losses is influenced by the size and maturity dates of its loans, loan quality, credit indicators including risk ratings, delinquency status, historical loss experience and other conditions influencing loss expectations, such as reasonable and supportable forecasts of economic conditions.
During the three months ended June 30, 2022, the Company recorded an increase of $42.3 million to its allowance for credit losses. The increase to the Company's allowance for credit losses was due to weakening credit indicators, inflationary expectations, reduced liquidity in the capital markets, an uncertain macroeconomic outlook, and new loan originations offset by seven loan repayments in-full. The uncertain macroeconomic outlook is caused by surging inflationary pressures, rising short term interest rates, continuing supply chain disruptions, widening credit spreads in the fixed income markets, a material decline in U.S. stock market indices, and Russia’s invasion of Ukraine. These factors, and slowing business plan execution for certain of our loans, contributed to the increase in the Company’s allowance for credit losses during the three months ended June 30, 2022. While the ultimate impact of the macroeconomic outlook and property-level performance trends of the Company's loan portfolio remain uncertain, the Company's macroeconomic outlook is intended to address these uncertainties, and the Company has made specific forward-looking valuation adjustments to the inputs of its allowance for credit loss calculation to reflect the variability associated with the timing, strength, and breadth of a sustained economic recovery or the potential impact of an uncertain economic outlook that may result in a post-COVID environment.
During the six months ended June 30, 2022, the Company recorded an increase of $47.2 million, increasing its CECL reserve to $93.4 million as of June 30, 2022. For the six months ended June 30, 2022, the Company's estimate of expected credit losses was impacted by loan originations and repayments of $535.1 million and $804.4 million, respectively, and recessionary and recovery macroeconomic assumptions employed in determining the model-based general CECL reserve.
On June 30, 2022, the Company determined that one first mortgage loan secured by an office property met the CECL framework’s criteria for individual assessment. As of June 30, 2022, the loan was not on non-accrual status because all amounts of interest due were collected by the Company. The amortized cost of the loan was $55.7 million as of June 30, 2022, and December 31, 2021. Subsequent to June 30, 2022, the borrower failed to meet the loan's extension conditions and, as a result, the Company and borrower agreed to modify the loan agreement to facilitate an orderly disposition of the property by the borrower. Accordingly, the Company utilized the estimated fair value of the collateral to estimate a total allowance for credit losses of $11.1 million, which is included in its CECL reserve as of June 30, 2022. The Company’s fair market value estimate was determined using a discounted cash flow model and Level 3 inputs, which include estimates of property-specific cash flows over a specific holding period, a discount rate of 10.7%, and a terminal capitalization rate of 8.7%. These inputs are based on the location, type and nature of the property, current sales and lease comparables, anticipated market conditions, and management’s knowledge, experience and judgment.
During the three months ended June 30, 2021, the Company recorded a decrease of $3.5 million in the allowance for credit losses. The decline in the Company’s allowance for credit losses was primarily due to an improving macroeconomic outlook based on recent observed economic data, improved property performance of underlying collateral for many of its loan investments that were adversely impacted by COVID-19, and normalizing commercial real estate capital markets activity. During the six months ended June 30, 2021, the Company recorded a decrease of $7.5 million, reducing the total CECL reserve to $55.3 million as of June 30, 2021. For the six months ended June 30, 2021, the Company’s estimate of expected credit losses was impacted by loan originations, sales, and repayments of $631.4 million, $60.7 million, and $339.3 million, respectively, recessionary and recovery macroeconomic assumptions employed in determining the model-based general CECL reserve, and an increase in the Company’s total loan commitments and unpaid principal balance as of June 30, 2021.
One loan secured by a retail property was on non-accrual status as of June 30, 2022 and December 31, 2021 due to a default caused by non-payment of interest in December 2020. The amortized cost basis of the loan was $23.0 million as of June 30, 2022 and December 31, 2021. In accordance with the Company’s revenue recognition and allowance for credit losses accounting policies, the Company suspended its accrual of interest income when the loan was placed on non-accrual status and continues to believe that the carrying value of the loan is collectible as of June 30, 2022.
Loan Modification Activity
The Company may amend or modify a loan depending on the loan’s specific facts and circumstances. These loan modifications typically include additional time for the borrower to refinance or sell the collateral property, adjustment or waiver of performance tests that are prerequisite to the extension of a loan maturity, and/or deferral of scheduled principal payments. In exchange for a modification, the Company often receives a partial repayment of principal, a short-term accrual of PIK interest for a portion of interest due, a cash infusion to replenish interest or capital improvement reserves, termination of all or a portion of the remaining unfunded loan commitment, additional call protection, and/or an increase in the loan coupon. For the six months ended June 30, 2022, none of the Company’s loan modifications resulted in significant modifications.
As of June 30, 2022, the total amount of accrued PIK interest in the loans held for investment portfolio was $2.4 million with respect to three first mortgage loans.
The following table presents the accrued PIK interest activity for the six months ended June 30, 2022 for the Company’s loans held for investment portfolio (dollars in thousands):
June 30, 2022
Balance as of January 1, 2022
$3,028 
Accrued PIK interest— 
Repayments of accrued PIK interest(313)
Balance as of March 31, 2022
$2,715 
Accrued PIK interest— 
Repayments of accrued PIK interest(300)
Write-off of accrued PIK interest— 
Balance as of June 30, 2022
$2,415 
No accrued PIK interest was recorded and deferred during the six months ended June 30, 2022.
As of June 30, 2022 and December 31, 2021, none of the Company's accrual status loans had accrued interest income receivable 90 days or more past due.
The following table presents an aging analysis for the Company’s loans held for investment portfolio, by class of loans on amortized cost basis (dollars in thousands):
Days Outstanding as of June 30, 2022
CurrentDays: 30-59Days: 60-89 Days: 90 or moreTotal loans past dueTotal loans
Loans receivable:
Senior loans$4,643,410 $— $— $23,000 $23,000 $4,666,410 
Subordinated and mezzanine loans35,000 — — — — 35,000 
Total$4,678,410 $— $— $23,000 $23,000 $4,701,410 
 
Days Outstanding as of December 31, 2021
Current Days: 30-59Days: 60-89Days: 90 or moreTotal loans past dueTotal loans
Loans receivable:
Senior loans$4,851,242 $— $— $23,000 $23,000 $4,874,242 
Subordinated and mezzanine loans34,960 — — — — 34,960 
Total$4,886,202 $— $— $23,000 $23,000 $4,909,202 
v3.22.2
Real Estate Owned
 6 Months Ended
Jun. 30, 2022
Real Estate Owned, Disclosure of Detailed Components [Abstract]  
Real Estate Owned Real Estate Owned
In December 2020, the Company acquired two largely undeveloped commercially-zoned land parcels on the Las Vegas Strip comprising 27 acres (the “REO Property”) pursuant to a negotiated deed-in-lieu of foreclosure. The Company's cost basis in the REO Property was $99.2 million, equal to the estimated fair value of the collateral at the date of acquisition, net of estimated selling costs. The Company obtained from a third party a $50.0 million non-recourse first mortgage loan secured by the REO Property which it repaid on November 12, 2021. See Note 6 for additional information regarding the related mortgage loan.
During the three months ended December 31, 2021, the Company sold a 17 acre parcel of the REO Property for net cash proceeds of $54.4 million and recognized a gain on sale of real estate owned, net of $15.8 million on the consolidated statements of income and comprehensive income. As of December 31, 2021, the Company held the remaining 10 acre parcel of REO Property at its estimated fair value at the time of acquisition, net of estimated selling costs, of $60.6 million.
On April 4, 2022, the Company sold the remaining 10 acre parcel of REO Property for net cash proceeds of $73.9 million and recognized a gain on sale of real estate owned, net of $13.3 million on the consolidated statements of income and comprehensive income. The Company utilized $13.3 million of the $187.6 million of available capital loss carryforwards to offset the gain on sale of its REO Property for income tax purposes in 2022. See Note 9 for additional details. As of June 30, 2022, the Company no longer owns any REO Property.
For the six months ended June 30, 2022 and 2021, operating revenues from the REO Property were sufficient to cover the operating expenses and were immaterial to the financial results of the Company.
v3.22.2
Variable Interest Entities and Collateralized Loan Obligations
 6 Months Ended
Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Variable Interest Entities and Collateralized Loan Obligations Variable Interest Entities and Collateralized Loan Obligations
Subsidiaries of the Company have financed certain pools of the Company’s loans held for investment portfolio through the issuance of collateralized loan obligations.
On February 16, 2022, TPG RE Finance Trust CLO Sub-REIT (“Sub-REIT”), a subsidiary of the Company, issued a collateralized loan obligation (“TRTX 2022-FL5” or “FL5”). TRTX 2022-FL5 permits the Company, during the 24 months after closing, to contribute eligible new loans or participation interests in loans to TRTX 2022-FL5 in exchange for cash, which provides additional liquidity to the Company to originate new loan investments as underlying loans repay. The Company did not utilize the reinvestment feature during the three and six months ended June 30, 2022. In connection with TRTX 2022-FL5, the Company incurred $6.5 million of deferred financing costs, including issuance, legal, and accounting related costs.
On March 31, 2021, Sub-REIT issued a collateralized loan obligation (“TRTX 2021-FL4” or “FL4”). TRTX 2021-FL4 permits the Company, during the 24 months after closing, to contribute eligible new loans or participation interests in loans to TRTX 2021-FL4 in exchange for cash, which provides additional liquidity to the Company to originate new loan investments as underlying loans repay. During the three and six months ended June 30, 2022, the Company utilized the reinvestment feature in TRTX 2021-FL4. During the three and six months ended June 30, 2021, the Company utilized the reinvestment feature in TRTX 2021-FL4. In connection with TRTX 2021-FL4, the Company incurred $8.3 million of deferred financing costs, including issuance, legal, and accounting related costs.
On October 25, 2019, Sub-REIT issued a collateralized loan obligation (“TRTX 2019-FL3” or “FL3”). TRTX 2019-FL3 permits the Company, during the 24 months after closing, to contribute eligible new loans or participation interests in loans to TRTX 2019-FL3 in exchange for cash, which provides additional liquidity to the Company to originate new loan investments as underlying loans repay. The reinvestment period for TRTX 2019-FL3 ended on October 11, 2021 and the Company did not utilize the reinvestment feature during the three and six months ended June 30, 2021. In connection with TRTX 2019-FL3, the Company incurred $7.8 million of deferred financing costs, including issuance, legal, and accounting related costs.
On November 29, 2018, Sub-REIT issued a collateralized loan obligation (“TRTX 2018-FL2” or “FL2”). TRTX 2018-FL2 permitted the Company, during the 24 months after closing, to contribute eligible new loans or participation interests in loans to TRTX 2018-FL2 in exchange for cash, which provides additional liquidity to the Company to originate new loan investments as underlying loans repay. The reinvestment period for TRTX 2018-FL2 ended on December 11, 2020. In connection with TRTX 2018-FL2, the Company incurred $8.7 million of deferred financing costs, including issuance, legal, and accounting related costs.
On February 17, 2022, the Company redeemed TRTX 2018-FL2, which at its redemption had $600.0 million of investment-grade bonds outstanding. The 17 loans or participation interests therein with an aggregate unpaid principal balance of $805.7 million held by the trust were refinanced in part by the issuance of TRTX 2022-FL5 and in part with the expansion of an existing secured credit agreement. In connection with the redemption of TRTX 2018-FL2, the Company exercised an option under an existing secured credit agreement to increase the commitment amount by $250.0 million, pledge additional collateral with an aggregate unpaid principal balance of $463.8 million and borrow an additional $359.1 million.
The Company evaluated the key attributes of the issuers of the CRE CLOs ("CRE CLO Issuers"), which are wholly-owned subsidiaries of the Company, to determine if they were VIEs and, if so, whether the Company was the primary beneficiary of their operating activities and therefore consolidate the CRE CLOs. The Company concluded that the CRE CLO Issuers are VIEs and the Company is the primary beneficiary because it has the ability to control the most significant activities of the CRE CLO Issuers, the obligation to absorb losses to the extent of its equity investments, and the right to receive benefits that could potentially be significant to these entities. Accordingly, as of June 30, 2022 and December 31, 2021 the Company consolidated the CRE CLO Issuers.
The following table outlines the total assets and liabilities within the Sub-REIT structure (dollars in thousands):
June 30, 2022December 31, 2021
Assets
Cash and cash equivalents$25,967 $28,167 
Collateralized loan obligation proceeds held at trustee(1)
130,908 204 
Accounts receivable from servicer/trustee(2)
259,796 150 
Accrued interest receivable5,806 6,765 
Loans held for investment, net(3)
2,808,158 3,138,603 
Total assets$3,230,635 $3,173,889 
Liabilities
Accrued interest payable$2,687 $1,823 
Accrued expenses310 1,490 
Collateralized loan obligations, net(4)
2,639,314 2,545,691 
Payable to affiliates6,731 3,830 
Total liabilities$2,649,042 $2,552,834 
________________________________
(1)Includes $59.2 million and $71.7 million of cash available to acquire eligible assets related to TRTX 2022-FL5 and TRTX 2021-FL4, respectively, as of June 30, 2022. Includes $0.2 million of cash available for acquire eligible assets related to TRTX 2021-FL4 as of December 31, 2021.
(2)Includes $83.6 million, $150.5 million, and $25.5 million of cash proceeds related to loan repayments held by the Company's loan servicer as of June 30, 2022, which are remitted to the Company during the subsequent remittance cycle related to TRTX 2022-FL5, TRTX 2021-FL4 and TRTX 2019-FL3, respectively.
(3)Includes one loan held for investment with an unpaid principal balance of $1.6 million and $0.1 million as of June 30, 2022 and December 31, 2021, respectively.
(4)Net of $12.6 million and $10.3 million of unamortized deferred financing costs as of June 30, 2022 and December 31, 2021, respectively.
As of June 30, 2022 and December 31, 2021, assets held by these VIEs are restricted and can only be used to settle obligations of the related VIE. The liabilities of these VIEs are non-recourse to the Company and can only be satisfied from the then-current assets of the related VIE.
The following tables detail the loan collateral and borrowings under the Company's CRE CLOs (dollars in thousands):
June 30, 2022
CRE CLOsCountBenchmark interest rateOutstanding principal balance
Carrying value(1)
Wtd. avg. spread(2)
Wtd. avg. maturity(3)
TRTX 2019-FL3
Collateral loan investment assets15LIBOR$898,090$861,5963.15 %1.7
Financing provided1
Term SOFR(4)
707,389705,8841.57 %12.3
TRTX 2021-FL4
Collateral loan investment assets21
LIBOR(5)
1,250,0001,021,0793.06 %2.9
Financing provided1LIBOR1,037,5001,032,1091.60 %15.7
TRTX 2022-FL5
Collateral loan investment assets17
LIBOR(6)
1,075,000923,8423.28 %3.3
Financing provided1Compounded SOFR907,031901,3212.02 %16.6
Total
Collateral loan investment assets(7)
53LIBOR$3,223,090$2,806,5173.16 %2.7 years
Financing provided(8)
3Term SOFR/LIBOR/Compounded SOFR$2,651,920$2,639,3141.74 %15.1 years
________________________________
(1)Includes loan amounts held in the Company's CRE CLO investment structures and does not include other loans held for investment, net of $1.6 million held within the Sub-REIT structure.
(2)Weighted average spread excludes the amortization of loan fees and deferred financing costs.
(3)Loan term represents weighted-average final maturity, assuming extension options are exercised by the borrower. Repayments of CRE CLO notes are dependent on timing of related loan repayments post-reinvestment period. The term of the CRE CLO notes represents the rated final distribution date.
(4)On October 1, 2021, the benchmark index interest rate for borrowings under TRTX 2019-FL3 was converted from Compounded SOFR to Term SOFR by the designated transaction representative under the FL3 indenture. The Company has the right to convert the mortgage assets benchmark interest rate from LIBOR to Term SOFR to eliminate the difference between benchmark rates used for the assets and liabilities of the CRE CLO.
(5)As of June 30, 2022, the TRTX 2022-FL4 mortgage assets are indexed to LIBOR, with the exception of one $27.7 million participation interest which is indexed to Term SOFR.
(6)As of June 30, 2022, the TRTX 2022-FL5 mortgage assets are indexed to LIBOR, with the exception of one $16.8 million participation interest which is indexed to Term SOFR. The Company has the right to convert the mortgage assets benchmark interest rate from LIBOR to Compounded SOFR to eliminate the difference between benchmark rates used for the assets and liabilities of the CRE CLO.
(7)Collateral loan investment assets of FL3, FL4 and FL5 represent 19.1%, 26.5% and 22.8% of the aggregate unpaid principal balance of the Company's loans held for investment portfolio as of June 30, 2022.
(8)During the three months ended June 30, 2022, the Company recognized interest expense of $18.2 million, which includes $1.9 million of deferred financing cost amortization and is reflected within the Company's consolidated statements of income and comprehensive income. During the six months ended June 30, 2022, the Company recognized interest expense of $32.5 million, which includes $4.1 million of deferred financing cost amortization and is reflected within the Company's consolidated statements of income and comprehensive income.
December 31, 2021
CRE CLOsCountBenchmark interest rateOutstanding principal balanceCarrying value
Wtd. avg. spread(1)
Wtd. avg. maturity(2)
TRTX 2018-FL2
Collateral loan investment assets17LIBOR$805,685$795,8153.39 %2.0
Financing provided1LIBOR600,001599,3941.56 %15.9
TRTX 2019-FL3
Collateral loan investment assets19LIBOR1,109,2291,100,4973.19 %2.2
Financing provided1
Term SOFR(3)
918,487915,4511.48 %12.8
TRTX 2021-FL4
Collateral loan investment assets24LIBOR1,249,7961,242,2913.19 %3.1
Financing provided1LIBOR1,037,5001,030,8461.60 %16.2
Total
Collateral loan investment assets(4)
60LIBOR$3,164,710$3,138,6033.24 %2.7 years
Financing provided(5)
3Term SOFR/LIBOR$2,555,988$2,545,6911.55 %15.2 years
________________________________
(1)Weighted average spread excludes the amortization of loan fees and deferred financing costs.
(2)Loan term represents weighted-average final maturity, assuming extension options are exercised by the borrower. Repayments of CRE CLO notes are dependent on timing of related loan repayments post-reinvestment period. The term of the CRE CLO notes represents the rated final distribution date.
(3)On October 1, 2021, the benchmark index interest rate for borrowings under TRTX 2019-FL3 was converted from Compounded SOFR to Term SOFR by the designated transaction representative under the FL3 indenture. The Company has the right to convert the mortgage assets benchmark interest rate from LIBOR to Term SOFR to eliminate the difference between benchmark rates used for the assets and liabilities of the CRE CLO.
(4)Collateral loan investment assets of FL2, FL3, and FL4 represent 16.4%, 22.5%, and 25.4% of the aggregate unpaid principal balance of the Company's loans held for investment portfolio as of December 31, 2021.
(5)During the three months ended June 30, 2021, the Company recognized interest expense of $13.5 million, which includes $1.7 million of deferred financing cost amortization and is reflected within the Company's consolidated statements of income and comprehensive income. During the six months ended June 30, 2021, the Company recognized interest expense of $22.0 million, which includes $2.9 million of deferred financing cost amortization and is reflected within the Company's consolidated statements of income and comprehensive income.
v3.22.2
Investment Portfolio Financing
 6 Months Ended
Jun. 30, 2022
Debt Disclosure [Abstract]  
Investment Portfolio Financing Investment Portfolio Financing
The Company finances its portfolio of loans, or participation interests therein, and REO using secured financing agreements, including secured credit agreements, secured revolving credit facilities, asset-specific financing arrangements, mortgage loans payable, and collateralized loan obligations.
The following table summarizes the Company's investment portfolio financing (dollars in thousands):
Outstanding principal balance
June 30, 2022December 31, 2021
Collateralized loan obligations(1)
$2,651,920 $2,555,988 
Secured credit agreements1,089,655 1,166,211 
Secured revolving credit facility52,065 — 
Asset-specific financing arrangements124,202 — 
Total$3,917,842 $3,722,199 
________________________________
(1)See Note 5 for additional information regarding the Company's collateralized loan obligations.
Secured Credit Agreements
As of June 30, 2022 and December 31, 2021, the Company had secured credit agreements used to finance certain of the Company’s loan investments. These financing arrangements bear interest at rates equal to LIBOR or Term SOFR plus a credit spread negotiated between the Company and each lender, often a separate credit spread for each pledge of collateral, which is primarily based on property type and advance rate against the unpaid principal balance of the pledged loan. These borrowing arrangements contain defined mark-to-market provisions that permit our lenders to issue margin calls to the Company only in the event that the collateral properties underlying the Company’s loans pledged to the Company’s lenders experience a non-temporary decline in value (“credit marks”) due to reasons other than capital markets events that result in changing credit spreads for similar borrowing obligations. 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 capital markets events have caused credit spreads to change for similar borrowing obligations (“spread marks”). Furthermore, in connection with one of these borrowing arrangements, the lender has the right to re-margin the secured credit agreement based solely on appraised loan-to-values after the second anniversary date of the facility on October 30, 2022.
The following table presents certain information regarding the Company’s secured credit agreements. Except as otherwise noted, all agreements are on a partial (25%) recourse basis (dollars in thousands):
June 30, 2022
Secured credit agreements(1)
Initial
maturity date		Extended
maturity date		Index
rate		Weighted average
credit spread 		Interest
rate 		Commitment
amount		Maximum
current availability		Balance
outstanding		Principal balance
of collateral		Amortized cost
of collateral
Goldman Sachs08/19/2208/19/241 Month BR1.8 %3.5 %$500,000 $94,044 $405,956 $540,261 $539,727 
Wells Fargo(2)
04/18/2504/18/251 Month BR1.6 %3.3 %500,000 118,001 381,999 515,891 511,618 
Barclays(3)
08/13/2508/13/261 Month BR1.6 %3.3 %500,000 399,499 100,501 134,408 133,661 
Morgan Stanley(4)
05/04/2305/04/231 Month BR2.3 %4.0 %500,000 446,975 53,025 75,661 75,599 
JP Morgan10/30/2310/30/251 Month BR1.7 %3.4 %400,000 275,372 124,628 178,701 178,326 
Bank of America09/29/2209/29/221 Month BR— %— %200,000 200,000 — — — 
Institutional financing10/30/2310/30/251 Month BR4.5 %6.3 %249,546 226,000 23,546 43,092 43,092 
Totals$2,849,546 $1,759,891 $1,089,655 $1,488,014 $1,482,023 
________________________________
(1)Borrowings under secured credit agreements with a guarantee for 25% recourse from Holdco. Each secured credit agreement contains defined mark-to-market provisions that permit the lenders to issue margin calls based on credit marks. Under the JP Morgan secured credit agreement, the Company is also subject to spread marks. Index rate is the underlying benchmark interest rate ("BR"), currently LIBOR or Term SOFR, for the Company's borrowings on each secured credit agreement.
(2)On February 9, 2022 the secured credit agreement’s initial maturity was extended to April 18, 2025.
(3)On April 11, 2022 the secured credit agreement's initial maturity was extended to August 13, 2025 and the Company reduced the total commitment to $500.0 million from $750.0 million. The secured credit agreement includes a $250.0 million accordion feature subject to the lender's approval.
(4)On April 29, 2022 the secured credit agreement's initial maturity was extended to May 4, 2023.
December 31, 2021
Secured credit agreements(1)
Initial
maturity date		Extended
maturity date		Index
rate		Weighted average
credit spread 		Interest
rate 		Commitment
amount		Maximum
current availability		Balance
outstanding		Principal balance
of collateral		Amortized cost
of collateral
Goldman Sachs08/19/2208/19/241 Month
LIBOR		2.0 %2.1 %$250,000 $153,680 $96,320 $158,177 $157,550 
Wells Fargo(2)
04/18/2204/18/241 Month
LIBOR		1.6 %1.7 %750,000 179,784 570,216 779,791 773,868 
Barclays08/13/2208/13/231 Month
LIBOR		1.5 %1.7 %750,000 726,686 23,314 41,294 41,058 
Morgan Stanley05/04/2205/04/231 Month
LIBOR		2.0 %2.1 %500,000 319,269 180,731 255,125 254,559 
JP Morgan10/30/2310/30/251 Month
LIBOR		1.7 %1.8 %400,000 290,523 109,477 200,148 199,246 
US Bank07/09/2207/09/241 Month
LIBOR		1.4 %1.7 %44,730 10,748 33,982 59,060 59,060 
Bank of America(3)
09/29/2209/29/221 Month
LIBOR		1.8 %1.9 %128,625 — 128,625 183,750 183,750 
Institutional financing10/30/2310/30/251 Month
LIBOR		4.5 %4.8 %249,546 226,000 23,546 42,390 42,366 
Totals$3,072,901 $1,906,690 $1,166,211 $1,719,735 $1,711,457 
________________________________
(1)Borrowings under secured credit agreements with a guarantee for 25% recourse from Holdco. Each secured credit agreement contains defined mark-to-market provisions that permit the lenders to issue margin calls based on credit marks. Under the JP Morgan secured credit agreement, the Company is also subject to spread marks.
(2)On February 9, 2022 the secured credit agreement’s initial maturity was extended to April 18, 2025.
(3)Effective February 1, 2022 for the sole loan pledged to the secured credit agreement, the Company amended its financing arrangement to reduce its borrowing by $9.4 million and extend its term on a non-mark-to-market basis through March 31, 2022, with an option to further extend its maturity through April 15, 2022 in exchange for a further reduction in borrowings of $9.4 million.
Secured Credit Agreement Terms
As of June 30, 2022 and December 31, 2021, the Company had six and seven secured credit agreements, respectively, to finance its loan investing activities. Credit spreads vary depending upon the collateral type, advance rate and other factors. Assets pledged as of June 30, 2022 and December 31, 2021 consisted of 54 and 53 mortgage loans, or participation interests therein, respectively. Under five of the six secured credit agreements, the Company transfers all of its rights, title and interest in the loans to the secured credit agreement counterparty in exchange for cash, and simultaneously agrees to reacquire the asset at a future date for an amount equal to the cash exchanged plus an interest factor. The secured credit agreement lender collects all principal and interest on related loans and remits to the Company the net amount after the lender collects its interest and other fees. For the sixth secured credit agreement, which is a mortgage warehouse facility, the lender receives a security interest (pledge) in the loans financed under the arrangement. The secured credit agreements used to finance loan investments are 25% recourse to Holdco.
Under each of the Company’s secured credit agreements, including the mortgage warehouse facility, the Company is required to post margin for changes in conditions to specific loans that serve as collateral for those secured credit agreements. The lender’s margin amount is in all but one instance limited to collateral-specific credit marks based on non-temporary declines in the value of the properties securing the underlying loan collateral. Market value determinations and redeterminations may be made by the repurchase lender in its sole discretion subject to certain specified parameters. These considerations include credit-based factors (which are generally based on factors other than those related to the capital markets). In only one instance do the considerations include changes in observable credit spreads in the market for these assets.
The following table summarizes certain characteristics of the Company’s secured credit agreements secured by mortgage loan investments, including counterparty concentration risks (dollars in thousands):
June 30, 2022
Secured credit agreementsCommitment
amount		UPB of
collateral
Amortized cost
of collateral(1)
Amount
payable(2)
Net counterparty exposure(3)
Percent of
stockholders' equity 		Days to
extended maturity
Goldman Sachs Bank$500,000 $540,261 $542,450 $406,732 $135,718 9.4 %781
Wells Fargo500,000 515,891 514,144 382,320 131,824 9.1 %1023
Barclays500,000 134,408 133,922 100,648 33,274 2.3 %1505
Morgan Stanley Bank500,000 75,661 75,736 53,404 22,332 1.5 %308
JP Morgan Chase Bank649,546 221,793 222,590 149,001 73,589 5.1 %1218
Bank of America200,000 — — — — — %91
Total / weighted average$2,849,546 $1,488,014 $1,488,842 $1,092,105 $396,737 969
_______________________
(1)Loan amounts include interest receivable of $6.8 million and are net of premium, discount and origination fees of $6.0 million.
(2)Loan amounts include interest payable of $2.5 million and do not reflect unamortized deferred financing fees of $2.2 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.
The following table summarizes certain characteristics of the Company’s secured credit agreements secured by mortgage loan investments, including counterparty concentration risks (dollars in thousands):
 December 31, 2021
Secured credit agreementsCommitment
amount		UPB of
collateral
Amortized cost
of collateral(1)
Amount
payable(2)
Net counterparty exposure(3)
Percent of
stockholders' equity		Days to
extended maturity
Goldman Sachs Bank$250,000 $158,177 $159,269 $96,389 $62,880 4.3 %962
Wells Fargo750,000 779,791 776,196 570,839 205,357 14.0 %839
Barclays750,000 41,294 41,019 23,330 17,689 1.2 %590
Morgan Stanley Bank500,000 255,125 255,858 180,891 74,967 5.1 %489
JP Morgan Chase Bank649,546 242,538 243,181 133,191 109,990 7.5 %1399
US Bank44,730 59,060 59,435 34,035 25,400 1.7 %921
Bank of America128,625 183,750 184,531 128,648 55,883 3.8 %272
Total / weighted average$3,072,901 $1,719,735 $1,719,489 $1,167,323 $552,165  794
_______________________
(1)Loan amounts include interest receivable of $8.0 million and are net of premium, discount and origination fees of $8.8 million.
(2)Loan amounts include interest payable of $1.1 million and do not reflect unamortized deferred financing fees of $4.0 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.
As a result of contributing collateral into TRTX 2022-FL5 upon its issuance during the six months ended June 30, 2022, the Company accelerated $1.1 million of unamortized deferred transaction costs related to its secured credit agreements to interest expense in its consolidated statements of income and comprehensive income. See Note 5 for details regarding the Company's issuance of TRTX 2022-FL5.
On April 11, 2022, the Company repaid the $34.0 million outstanding under the US Bank secured credit agreement and simultaneously terminated the financing arrangement prior to its July 9, 2022 maturity date.
Secured Revolving Credit Facility
On February 22, 2022, the Company closed a $250.0 million secured revolving credit facility with a syndicate of 5 lenders. This facility has an initial term of 3 years, an interest rate of Term SOFR plus 2.00% that is payable monthly in arrears, and an unused fee of 15 or 20 basis points, depending upon whether utilization exceeds 50.0%. During the three and six months ended June 30, 2022, the weighted average unused fee was 20 basis points and 20 basis points, respectively. The facility generally provides the Company with interim financing of eligible loans for up to 180 days at an initial advance rate of 75.0%, which declines to 65.0%, 45.0%, and 0.0% after 90, 135, and 180 days from initial borrowing, respectively, depending on the permanent financing asset classification. This facility is 100% recourse to Holdco. As of June 30, 2022, the Company pledged two loan investments with an aggregate collateral principal balance of $69.4 million and outstanding Term SOFR-based borrowings of $52.1 million.
Asset-Specific Financing Arrangements
On April 26, 2022, the Company closed an asset-specific financing arrangement with Axos Bank secured by one performing first mortgage loan secured by an office property. The arrangement provides non-mark-to-market financing, a term of up to 2 years, and is 15% recourse to Holdco.
On June 30, 2022, the Company closed a $200.0 million loan financing facility with BMO Harris Bank ("BMO Facility"). The facility provides asset-specific financing on a non-mark-to-market basis with matched term. This facility is 25% recourse to Holdco. The advance rate and borrowing rate are determined separately for each loan financed under the facility.
The following table details the Company's asset-specific financing arrangements (dollars in thousands):
June 30, 2022
FinancingCollateral
Asset-specific financingCommitment amountOutstanding principal balance
Carrying
value(1)
Wtd. avg.
spread(2)
Wtd. avg.
term(3)
Outstanding principal balanceAmortized CostWtd. avg.
term
Axos Bank$89,802 $89,802 $89,351 4.4 %1.8$208,603 $204,519 0.2
BMO Facility200,000 34,400 34,228 1.5 %4.743,000 42,588 4.7
Total / weighted average$289,802 $124,202 $123,579 3.6 %2.6 years$251,603 $247,107 1.4 years
_______________________
(1)Net of $0.6 million unamortized deferred financing costs.
(2)Collateral loan assets and the financing provided are indexed to Term SOFR.
(3)Term under Axos Bank is based on the extended maturity date for the specific arrangement. Borrowings under the BMO Facility are term-matched to the corresponding collateral loan asset. The weighted-average term assumes all extension options of the collateral loan asset are exercised by the borrower.
Mortgage Loan Payable
The Company through a special purpose entity subsidiary was a borrower under a $50.0 million mortgage loan secured by a first deed of trust against the REO Property. The loan had an interest rate of LIBOR plus 4.50% and was subject to a LIBOR interest rate floor of 0.50% and a rate cap of 0.50%. The Company posted cash of $2.4 million to pre-fund interest payments due under the note during its initial term through December 15, 2021.
On November 12, 2021, the Company repaid the mortgage loan. See Note 4 for additional information.
Financial Covenant Compliance
The financial covenants and guarantees for outstanding borrowings related to the Company’s secured credit agreements and secured revolving credit facility require Holdco to maintain compliance with certain financial covenants. The uncertain long-term impact of global macroeconomic conditions, including heightened inflation, slower growth or recession, changes to fiscal and monetary policy, increased interest rates, currency fluctuations, labor shortages and challenges in the supply chain, coupled with the war in Ukraine and the lingering aftereffects of COVID-19, on the commercial real estate markets and global capital markets may make it more difficult to meet or satisfy these covenants, and there can be no assurance that the Company will remain in compliance with these covenants in the future.
Financial Covenant relating to the Series B Preferred Stock
For as long as the Series B Preferred Stock was outstanding, the Company was required to maintain a debt-to-equity ratio not greater than 3.0 to 1.0. For the purpose of determining this ratio, the aggregate liquidation preference of the outstanding shares of Series B Preferred Stock was excluded from the calculation of total indebtedness of the Company and its subsidiaries, and was included in the calculation of total stockholders’ equity. On June 16, 2021, the Company redeemed all 9,000,000 outstanding shares of the Series B Preferred Stock and this covenant no longer applied.
Financial Covenant Compliance
The Company was in compliance with all financial covenants for its secured credit agreements and secured revolving credit facility to the extent of outstanding balances as of June 30, 2022 and December 31, 2021.
v3.22.2
Schedule of Maturities
 6 Months Ended
Jun. 30, 2022
Debt Disclosure [Abstract]  
Schedule of Maturities Schedule of Maturities
As of June 30, 2022 future principal payments for the following five years and thereafter are as follows (dollars in thousands):
Total indebtedness
Collateralized loan obligations(1)
Secured credit agreements(2)
Secured revolving credit facility(2)
Asset-specific financing arrangements(3)
2022$465,421 $465,421 $— $— $— 
2023560,246 359,047 201,199 — — 
2024870,937 375,179 405,956 — 89,802 
2025562,520 27,955 482,500 52,065 — 
2026517,287 517,287 — — — 
Thereafter941,431 907,031 — — 34,400 
Total$3,917,842 $2,651,920 $1,089,655 $52,065 $124,202 
(1)The scheduled maturities for the investment grade bonds issued by the Company's CRE CLOs are based upon the fully extended maturity of the underlying mortgage loan collateral, considering the reinvestment window of each CRE CLO.
(2)The scheduled maturities of the Company's secured credit agreement liabilities is based on the extended maturity date for the specific credit agreement where extension options are at its option, subject to standard default provisions, or the current maturity date of those credit agreements where extension options are subject to counterparty approval.
(3)The scheduled maturities of the Company's asset-specific financing arrangements are based on the extended maturity date for the specific arrangement, or in the case of the BMO Facility, the fully-extended maturity date of the underlying mortgage loan collateral
v3.22.2
Fair Value Measurements
 6 Months Ended
Jun. 30, 2022
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The Company’s consolidated balance sheet includes Level I fair value measurements related to cash equivalents, restricted cash, accounts receivable, and accrued liabilities. As of June 30, 2022 and December 31, 2021, the Company had $239.9 million and $199.3 million, respectively, invested in money market funds with original maturities of less than 90 days. The carrying values of these financial assets and liabilities are reasonable estimates of fair value because of the short-term maturities of these instruments. The consolidated balance sheet also includes loans held for investment, the assets and liabilities of its CLOs, and secured credit agreements 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 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):
June 30, 2022
Fair value
Carrying valueLevel ILevel IILevel III
Financial assets  
Loans held for investment$4,617,254 $— $— $4,644,660 
Financial liabilities
Collateralized loan obligations2,639,314 — — 2,656,671 
Secured credit agreements1,087,419 — — 1,092,568 
Secured revolving credit facility49,997 — — 49,997 
Asset-specific financing arrangements123,579 — — 127,263 
December 31, 2021
Fair value
Carrying valueLevel ILevel IILevel III
Financial assets  
Loans held for investment$4,867,203 $— $— $4,899,666 
Financial liabilities  
Collateralized loan obligations2,545,691 — — 2,558,544 
Secured credit agreements1,162,206 — — 1,169,710 
As of June 30, 2022 and December 31, 2021, the estimated fair value of the Company’s loans held for investment portfolio was $4.6 billion and $4.9 billion, respectively, which approximated carrying value. The weighted average gross credit spread for the Company’s loans held for investment portfolio as of June 30, 2022 and December 31, 2021 was 3.44% and 3.39%, respectively. The weighted average years to maturity as of June 30, 2022 and December 31, 2021 was 2.7 years and 2.8 years, respectively, assuming full extension of all loans held for investment.
As of June 30, 2022 and December 31, 2021, the estimated fair value of the collateralized loan obligation liabilities and secured credit agreements approximated fair value as current borrowing spreads and duration reflect market terms.
Level III fair values are determined based on standardized valuation models and significant unobservable market inputs, including holding period, discount rates based on LTV, property type and loan pricing expectations developed by the Manager that were corroborated with other institutional lenders to determine market spreads that are added to the forward curve of the underlying benchmark interest rate. There were no transfers of financial assets or liabilities within the levels of the fair value hierarchy during the three and six months ended June 30, 2022.
v3.22.2
Income Taxes
 6 Months Ended
Jun. 30, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company indirectly owns 100% of the equity of TRSs. TRSs are subject to applicable U.S. federal, state, local and foreign income tax on their taxable income. In addition, as a REIT, the Company also may be subject to a 100% excise tax on certain transactions between it and its TRSs that are not conducted on an arm’s-length basis. The Company files income tax returns in the United States federal jurisdiction as well as various state and local jurisdictions. The filings are subject to normal reviews by tax authorities until the related statute of limitations expires. The years open to examination generally range from 2018 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 June 30, 2022 and December 31, 2021, based on the Company’s evaluation, the Company did not have any material uncertain income tax positions.
The Company’s policy is to classify interest and penalties associated with underpayment of U.S. federal and state income taxes, if any, as a component of general and administrative expense on its consolidated statements of income and comprehensive income. For the three and six months ended June 30, 2022 and 2021, the Company did not have interest or penalties associated with the underpayment of any income taxes.
The Company owns, through an entity classified as a partnership for U.S. federal tax purposes (“Parent LLC”), 100% of the common equity in Sub-REIT, which qualifies as a REIT for U.S. federal income tax purposes and is a separate taxpayer from both the Company and Parent LLC. Parent LLC is owned by the Company both directly and indirectly through a TRS. The Company, through Sub-REIT, issues CRE CLOs to finance on a non-recourse, non-mark-to-market basis a large proportion of its loan investment portfolio. Due to unusually low LIBOR rates beginning in March 2020 coupled with high interest rate floors relating to many loans and participation interests pledged to Sub-REIT’s CLOs, certain of Sub-REIT’s CRE CLOs have in the past generated EII, which is treated as UBTI. Published IRS guidance requires that Sub-REIT allocate its EII in accordance with its dividends paid. Accordingly, EII generated by Sub-REIT’s CRE CLOs is allocated to Parent LLC. Pursuant to the Parent LLC operating agreement, any EII allocated from Sub-REIT to Parent LLC is allocated further to the TRS. Consequently, no EII is allocated to the Company and, as a result, the Company’s shareholders will not be allocated any EII (or UBTI attributable to such EII) by the Company. The tax liability borne by the TRS on the EII is 21%. This tax liability is included in the consolidated statements of income and comprehensive income and balance sheets of the Company.
For the three months ended June 30, 2022 and 2021, the Company recognized $0.1 million and $0.2 million, respectively, of federal, state, and local tax expense. For the six months ended June 30, 2022 and 2021, the Company recognized $0.2 million and $1.2 million, respectively, of federal, state, and local tax expense. As of June 30, 2022 and 2021, the Company’s effective tax rate was 0.3% and 1.8%, respectively.
As of June 30, 2022, the Company had no income tax assets and a $0.1 million income tax liability recorded for the operating activities of the Company’s TRSs. As of December 31, 2021, the Company had no income tax assets and a $0.3 million income tax liability recorded for the operating activities of the Company’s TRSs.
During the year ended December 31, 2020, the Company sold all of its CRE debt securities investments and recorded losses from these sales of $203.4 million, which became available to offset qualifying capital gains of the Company in 2020 and, to the extent those capital losses exceeded the Company’s capital gains for 2020, such losses were carried forward to offset capital gains in future years. The Company recognized no capital gains during the year ended December 31, 2020 and recognized capital gains of $15.8 million during the year ended December 31, 2021, utilizing its capital loss carryforwards to offset an equal amount for income tax purposes. As of December 31, 2021, the Company had $187.6 million of remaining capital losses that it can carryforward into future years indefinitely.
During the six months ended June 30, 2022, the Company utilized $13.3 million of the $187.6 million of available remaining capital loss carryforwards to offset the capital gain generated from the partial sale of its REO Property in April 2022. The Company has $174.3 million of capital losses that it can carryforward into future years indefinitely as of June 30, 2022.
The Company does not expect these losses to reduce the amount that the Company will be required to distribute in accordance with the requirement that the Company distribute to its stockholders at least 90% of the Company’s REIT taxable income (computed without regard to the deduction for dividends paid and excluding net capital gain) each year in order to continue to qualify as a REIT.
v3.22.2
Related Party Transactions
 6 Months Ended
Jun. 30, 2022
Related Party Transactions [Abstract]  
Related Party Transactions Related Party Transactions
Management Agreement
The Company is externally managed and advised by the Manager pursuant to the terms of a management agreement between the Company and the Manager (as amended, the “Management Agreement”). Pursuant to the Management Agreement, the Company pays the Manager a base management fee equal to the greater of $250,000 per annum ($62,500 per quarter) or 1.50% per annum (0.375% per quarter) of the Company’s “Equity” as defined in the Management Agreement. Net proceeds from the issuance of Series B and Series C Preferred Stock are included in the Company’s Equity for purposes of determining the base management fee using the same daily weighted average method as is utilized for common equity. The base management fee is payable in cash, quarterly in arrears. The Manager is also entitled to incentive compensation which is calculated and payable in cash with respect to each calendar quarter in arrears in an amount, not less than zero, equal to the difference between: (1) the product of (a) 20% and (b) the difference between (i) the Company’s Core Earnings for the most recent 12-month period, including the calendar quarter (or part thereof) for which the calculation of incentive compensation is being made (the “applicable period”), and (ii) the product of (A) the Company’s Equity in the most recent 12-month period, including the applicable period, and (B) 7% per annum; and (2) the sum of any incentive compensation paid to the Manager with respect to the first three calendar quarters of the most recent 12-month period. No incentive compensation is payable to the Manager with respect to any calendar quarter unless Core Earnings for the 12 most recently completed calendar quarters is greater than zero. For purposes of calculating the Manager’s incentive compensation, the Management Agreement specifies that equity securities of the Company or any of the Company’s subsidiaries that are entitled to a specified periodic distribution or have other debt characteristics will not constitute equity securities and will not be included in “Equity” for the purpose of calculating incentive compensation. Instead, the aggregate distribution amount that accrues to such equity securities during the calendar quarter of such calculation will be subtracted from Core Earnings, before incentive compensation for purposes of calculating incentive compensation, unless such distribution is otherwise excluded from Core Earnings.
Core Earnings, as defined in the Management Agreement, means the net income (loss) attributable to the holders of the Company’s common stock and Class A common stock (in those periods in which such Class A shares were outstanding) and, without duplication, the holders of the Company’s subsidiaries’ equity securities (other than the Company or any of the Company’s subsidiaries), computed in accordance with GAAP, including realized gains and losses not otherwise included in net income (loss), and excluding (i) non-cash equity compensation expense, (ii) the incentive compensation, (iii) depreciation and amortization, (iv) any unrealized gains or losses, including an allowance for credit losses, or other similar non-cash items that are included in net income for the applicable period, regardless of whether such items are included in other comprehensive income or loss or in net income and (v) one-time events pursuant to changes in GAAP and certain material non-cash income or expense items, in each case after discussions between the Manager and the Company’s independent directors and approved by a majority of the Company’s independent directors.
For so long as any shares of Series B Preferred Stock remain issued and outstanding, the Manager agreed to reduce by 50% the base management fee attributable to the Series B Preferred Stock net proceeds included in the Company’s Equity, such that the base management fee rate will equal 0.75% per annum instead of 1.50% per annum as provided in the Management Agreement. On June 16, 2021, the Company redeemed all 9,000,000 outstanding shares of the Series B Preferred Stock, incorporating the impact of the redemption into its Equity calculation. The reduced base management fee rate will apply until the Series B Preferred Stock issuance and redemption no longer impact the Company’s Equity used to calculate the base management fee payable to its Manager.
Management Fees and Incentive Management Fees Incurred and Paid
The following table details the management fees and incentive management fees incurred and paid pursuant to the Management Agreement (dollars in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Incurred
Management fees$5,856 $5,344 $11,565$10,437
Incentive management fee5,183 — 5,183—
Total management and incentive fees incurred$11,039 $5,344 $16,748 $10,437 
Paid
Management fees$5,709 $5,094 $11,318 $10,452 
Incentive management fee— — — — 
Total management and incentive fees paid$5,709 $5,094 $11,318 $10,452 
Management fees and incentive management fees included in payable to affiliates on the consolidated balance sheets as of June 30, 2022 and December 31, 2021 are $11.0 million and $5.6 million, respectively. During the three and six months ended June 30, 2022, the Manager earned $5.2 million and $5.2 million of incentive management fees. No incentive management fee was earned during the three and six months ended June 30, 2021.
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 and six months ended June 30, 2022 and 2021, the Company reimbursed to the Manager $0.3 million and $0.5 million, respectively, of expenses for services rendered on its behalf by the Manager and its affiliates.
For as long as any shares of Series B Preferred Stock remained issued and outstanding, the Manager agreed that it would not seek reimbursement for reimbursable expenses in excess of the greater of (x) $1.0 million per fiscal year and (y) twenty percent (20%) of the Company’s allocable share of such reimbursable expenses pursuant to the Management Agreement per fiscal year. On June 16, 2021, the Company redeemed all 9,000,000 outstanding shares of the Series B Preferred Stock and no shares of Series B Preferred Stock remained outstanding. As a result of the Series B Preferred Stock redemption, this agreement was terminated and there can be no assurance that the Manager will not seek reimbursement of such expenses in future quarters.
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 June 30, 2022 and December 31, 2021, no amounts remained outstanding and payable to the Manager or its affiliates for third party expenses that were incurred on behalf of the Company. All expenses due and payable to the Manager are reflected in the respective expense category of the consolidated statements of income and comprehensive income or consolidated balance sheets based on the nature of the item.
v3.22.2
Earnings per Share
 6 Months Ended
Jun. 30, 2022
Earnings Per Share [Abstract]  
Earnings per Share Earnings per Share The Company calculates its basic and diluted earnings (loss) per share using the two-class method for all periods presented, which defines unvested stock-based compensation awards that contain nonforfeitable rights to dividends as participating securities. The two-class method is an allocation formula that determines earnings per share for each share of common stock and participating securities according to dividends declared and participation rights in undistributed earnings. Under this method, all earnings (distributed and undistributed) are allocated to common shares and participating securities based on their respective rights to receive dividends. The unvested restricted shares of 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, including participating in any dividends, and therefore are included in the Company’s basic and diluted earnings per share calculation. For the three months ended June 30, 2022 and 2021, $0.2 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. For the six months ended June 30, 2022 and 2021, $0.4 million and $0.3 million, respectively, of common stock dividends declared and undistributed net income attributable to common stockholders were allocated to unvested shares of our common stock pursuant to stock grants made under the Company’s Incentive Plan. See Note 12 for details.
In connection with the issuance of Series B Preferred Stock and the Warrants described in Note 12, the Company elected the accreted redemption value method whereby the discount created based on the relative fair value of the Warrants to the fair value of the Series B Preferred Stock and the related issuance costs were accreted as a non-cash dividend on preferred stock over four years using the effective interest method. Such adjustments are included in Accretion of Discount on Series B Cumulative Redeemable Preferred Stock on the Company’s consolidated statements of changes in equity and treated as a deemed dividend on preferred stock for GAAP and income tax purposes. For the three and six months ended June 30, 2021 this adjustment totaled $24.0 million and $25.4 million, respectively.
The computation of diluted earnings per common share is based on the weighted average number of participating securities outstanding plus the incremental shares that would be outstanding assuming exercise of the Warrants. The number of incremental common shares is calculated utilizing the treasury stock method. For the three months ended June 30, 2022 and 2021, the Warrants are excluded from the calculation of diluted earnings per common share since their effect would be anti-dilutive. For the six months ended June 30, 2022 and 2021, the Warrants are included in the calculation of diluted earnings per common share because the Company generated earnings on a per common share basis, and the average market price of the Company’s common stock during the six months ended June 30, 2022 and 2021 was $11.32 and $11.90, respectively, which exceeds the strike price of $7.50 per common share for Warrants currently outstanding.
The following table sets forth the calculation of basic and diluted earnings per common share based on the weighted-average number of shares of common stock outstanding (dollars in thousands, except share and per share data):
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Net (loss) income$(5,434)$32,391 $18,347 $64,347 
Preferred stock dividends(1)
(3,148)(6,799)(6,296)(12,923)
Participating securities' share in (loss) earnings(226)(148)(423)(294)
Series B preferred stock redemption make-whole payment(2)
— (22,485)— (22,485)
Series B Preferred Stock accretion, including allocated Warrant fair value and transaction costs(3)
— (23,997)— (25,449)
Net (loss) income attributable to common stockholders$(8,808)$(21,038)$11,628 $3,196 
Weighted average common shares outstanding, basic77,188,291 76,899,270 77,186,136 76,897,453 
Incremental shares of common stock issued from the assumed exercise of the Warrants— — 4,049,470 4,433,898 
Weighted average common shares outstanding, diluted77,188,291 76,899,270 81,235,606 81,331,351 
(Loss) earnings per common share, basic(4)
$(0.11)$(0.27)$0.15 $0.04 
(Loss) earnings per common share, diluted(4)
$(0.11)$(0.27)$0.14 $0.04 
_______________________
(1)Includes preferred stock dividends declared and paid for Series A preferred stock, Series C Preferred Stock, and Series B Preferred Stock shares outstanding for the three and six months ended June 30, 2022 and 2021 and undeclared dividends for Series C Preferred Stock shares outstanding of $0.6 million for the three and six months ended June 30, 2021.
(2)Represents the make-whole payment to the holder of the Series B Preferred Stock for an amount equal to the present value of all remaining dividend payments due on such share of Series B Preferred Stock from and after the redemption date (and not including any declared or paid dividends or accrued dividends prior to such redemption date) through the second anniversary of the original issue date, computed in accordance with the terms of the Articles Supplementary. Refer to Note 12 to these consolidated financial statements for details.
(3)Series B Preferred Stock Accretion, including Allocated Warrant Fair Value and Transaction Costs includes amounts recorded as deemed dividends of amortized transaction costs and the write-off of unamortized transactions costs and the unaccreted portion of the allocated Warrant fair value related to the Company’s Series B Preferred Stock. For the three and six months ended June 30, 2021, the write-off of unamortized transaction costs and unaccreted allocated Warrant fair value was $22.5 million.
(4)Basic and diluted (loss) earnings per common share are computed independently based on the weighted-average shares of common stock outstanding. Diluted earnings per common share also includes the impact of participating securities outstanding plus any incremental shares that would be outstanding assuming the exercise of the Warrants. Accordingly, the sum of the quarterly (loss) earnings per common share amounts may not agree to the total for the six months ended June 30, 2022 and 2021.
v3.22.2
Stockholders' Equity
 6 Months Ended
Jun. 30, 2022
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Stockholders' Equity
Series C Cumulative Redeemable Preferred Stock
On June 14, 2021, the Company received net proceeds of $194.4 million from the sale of the 8,050,000 shares of Series C Preferred Stock after deducting the underwriting discount and commissions of $6.3 million and issuance costs of $0.6 million. The Company used the net proceeds from the offering to partially fund the redemption of all of the outstanding shares of the Company’s Series B Preferred Stock. The Series C Preferred Stock is currently listed on the NYSE under the symbol “TRTX PRC.” In connection with the Series C Preferred Stock issuance the Company paid TPG Capital BD, LLC a $0.7 million underwriting discount and commission for its services as joint bookrunner. The underwriting discount and commission was settled net of the preferred stock issuance proceeds and recorded as a reduction to additional paid-in-capital in the Company’s consolidated statement of changes in equity at closing.
The Company’s Series C Preferred Stock has a liquidation preference of $25.00 per share. When, as, and if authorized by the Company’s board of directors and declared by the Company, dividends on Series C Preferred Stock will be payable quarterly in arrears on or about March 30, June 30, September 30, and December 30 of each year at a rate per annum equal to 6.25% per annum of the $25.00 per share liquidation preference ($1.5624 per share annually or $0.3906 per share quarterly). Dividends on the Series C Preferred Stock are cumulative. The first dividend on the Series C Preferred Stock was payable on September 30, 2021, and covered the period from, and including, June 14, 2021 to, but not including, September 30, 2021 and was in the amount of $0.4601 per share.
On and after June 14, 2026, the Company, at its option, upon not fewer than 30 days’ nor more than 60 days’ written notice, may redeem the Series C Preferred Stock, in whole, at any time, or in part, from time to time, for cash, at a redemption price of $25.00 per share, plus any accrued and unpaid dividends (whether or not declared) on such shares of Series C Preferred Stock to, but not including, the redemption date (other than any dividend with a record date before the applicable redemption date and a payment date after the applicable redemption date, which shall be paid on the payment date notwithstanding prior redemption of such shares.
Upon the occurrence of a Change of Control event, the holders of Series C Preferred Stock have the right to convert their shares solely into common stock at their request and do not have the right to request that their shares convert into cash or a combination of cash and common stock. The Company, upon the occurrence of a Change of Control event, at its option, upon not fewer than 30 days’ nor more than 60 days’ written notice, may redeem the shares of Series C Preferred Stock, in whole or in part, within 120 days after the first date on which such Change of Control occurred, for cash at a redemption price equal to $25.00 per share, plus any accrued and unpaid dividends (whether or not declared) to, but not including, the redemption date (other than any dividend with a record date before the applicable redemption date and a payment date after the applicable redemption date, which will be paid on the payment date notwithstanding prior redemption of such shares).
Holders of Series C Preferred Stock have no voting rights except as set forth in the Articles Supplementary for the Series C Preferred Stock.
Series B Cumulative Redeemable Preferred Stock and Warrants to Purchase Shares of Common Stock
On May 28, 2020, the Company entered into an Investment Agreement (the “Investment Agreement”) with PE Holder L.L.C., a Delaware limited liability company (the “Purchaser”), an affiliate of Starwood Capital Group Global II, L.P., under which the Company agreed to issue and sell to the Purchaser up to 13,000,000 shares of 11.0% Series B Preferred Stock, par value $0.001 per share (plus any additional such shares paid as dividends pursuant to the Articles Supplementary for the Series B Preferred Stock), and Warrants to purchase, in the aggregate, up to 15,000,000 shares (subject to adjustment) of the Company’s Common Stock, for an aggregate cash purchase price of up to $325,000,000. Such purchases could occur in up to three tranches prior to December 31, 2020. The Investment Agreement contains market standard provisions regarding board representation, voting agreements, rights to information, and a standstill agreement and registration rights agreement regarding common stock acquired via exercise of Warrants. At closing, the Purchaser acquired the initial tranche consisting of 9,000,000 shares of Series B Preferred Stock and Warrants to purchase up to 12,000,000 shares of Common Stock, for an aggregate price of $225.0 million. The Company elected to allow its option to issue additional shares of Series B Preferred Stock to expire unused.
Series B Preferred Stock
The Company’s Series B Preferred Stock had a liquidation preference of $25.00 per share over all other classes of the Company’s equity other than Series A preferred stock, which had liquidation preference over the Series B Preferred Stock.
Series B Preferred Stock bore a dividend at 11% per annum, accrued daily and compounded semi-annually, which was payable quarterly in cash; provided that up to 2.0% per annum of the liquidation preference could be paid, at the option of the Company, in the form of additional shares of Series B Preferred Stock.
On June 16, 2021, the Company redeemed all 9,000,000 outstanding shares of the Series B Preferred Stock at an aggregate redemption price of approximately $247.5 million. Dividends on all shares of Series B Preferred Stock were paid in full as of the redemption date and no shares of Series B Preferred Stock remained outstanding.
Warrants to Purchase Common Stock
The Warrants have an initial exercise price of $7.50 per share. The exercise price of the Warrants and shares of Common Stock issuable upon exercise of the Warrants are subject to customary adjustments. The Warrants are exercisable on a net-settlement basis and expire on May 28, 2025. The Warrants are classified as equity and were initially recorded at their estimated fair value of $14.4 million with no subsequent remeasurement. None of the Warrants have been exercised as of June 30, 2022.
On the issuance date, the Company retained third party valuation experts to assist with estimating the fair value of the Series B Preferred Stock and the Warrants using a binomial lattice model. Based on the Warrants’ relative fair value to the fair value of the Series B Preferred Stock, $14.4 million of the $225.0 million proceeds was allocated to the Warrants, creating a corresponding preferred stock discount in the same amount. The Company elected the accreted redemption value method whereby this discount was accreted over four years using the effective interest method, resulting in an increase in the carrying value of the Series B Preferred Stock. Additionally, $14.2 million of costs directly related to the issuance was accreted using the effective interest method. Such adjustments were included in Accretion of Discount on Series B Cumulative Redeemable Preferred Stock on the Company’s consolidated statements of changes in equity and treated similarly to a dividend on preferred stock for GAAP purposes, but only the accretion of the Warrant allocated fair value was treated as a dividend for income tax purposes.
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. As of June 30, 2022, cumulative gross proceeds issued under the equity distribution agreement totaled $50.9 million, leaving $74.1 million available for future issuance subject to the direction of management, and market conditions.
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 and six months ended June 30, 2022 and 2021, the Company sold no shares of common stock under this arrangement.
Dividends
Upon the approval of the Company’s Board of Directors, the Company accrues dividends. 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, then to the holder of the Company’s Series B Preferred Stock (which was redeemed in-full on June 16, 2021) at the rate of 11.0% per annum of the $25.00 per share liquidation preference, then to the holders of the Company’s Series C Preferred Stock at the rate of 6.25% per annum of the $25.00 per share liquidation preference, and then to the holders of the Company’s common stock, in each case, to the extent outstanding. The Company intends to distribute each year not less than 90% of its taxable income to its stockholders to comply with the REIT provisions of the Internal Revenue Code. The Board of Directors will determine whether to pay future dividends, entirely in cash, or in a combination of stock and cash based on facts and circumstances at the time such decisions are made.
On June 13, 2022, the Company’s Board of Directors declared and approved a cash dividend of $0.24 per share of common stock, or $18.7 million in the aggregate, for the second quarter of 2022. The common stock dividend was paid on July 25, 2022 to the holders of record of the Company’s common stock as of June 28, 2022.
On June 9, 2022, the Company’s Board of Directors declared a cash dividend of $0.3906 per share of Series C Preferred Stock, or $3.1 million in the aggregate, for the second quarter of 2022. The Series C Preferred Stock dividend was paid on June 30, 2022 to the preferred stockholders of record as of June 20, 2022.
On June 14, 2021, the Company’s Board of Directors declared and approved a cash dividend of $0.20 per share of common stock, or $15.5 million in the aggregate, for the second quarter of 2021. The common stock dividend was paid on July 23, 2021 to the holders of record of the Company’s common stock as of June 28, 2021.
On June 14, 2021, the Company’s Board of Directors declared and approved a cash dividend of $0.69 per share of Series B Preferred Stock, or $6.2 million in the aggregate, for the second quarter of 2021. The Series B Preferred Stock dividend was paid on June 16, 2021 to the Series B Preferred Stock holder of record as of June 15, 2021.
For the six months ended June 30, 2022 and 2021, common stock dividends in the amount of $37.4 million and $31.0 million, respectively, were declared and approved.
For the six months ended June 30, 2022, Series C Preferred Stock dividends in the amount of $6.3 million were declared and approved.
For the six months ended June 30, 2021, Series B Preferred Stock dividends in the amount of $12.3 million were declared and approved.
As of June 30, 2022 and December 31, 2021, common stock dividends of $18.7 million and $24.2 million, respectively, were unpaid and are reflected in dividends payable on the Company’s consolidated balance sheets.
v3.22.2
Stock-based Compensation
 6 Months Ended
Jun. 30, 2022
Share-based Payment Arrangement [Abstract]  
Stock-based Compensation Stock-based Compensation
The Company does not have any employees. As of June 30, 2022, certain individuals employed by an affiliate of the Manager and certain members of the Company’s Board of Directors were compensated, in part, through the issuance of stock-based instruments.
The Company’s Board of Directors has adopted, and the Company’s stockholders have approved, the TPG RE Finance Trust, Inc. 2017 Equity Incentive Plan (the “Incentive Plan”). The Incentive Plan provides for the grant of equity-based compensation awards to the Company’s, and its affiliates’, directors, officers, employees (if any) and consultants, and the members, officers, directors, employees and consultants of our Manager or its affiliates, as well as to our Manager and other entities that provide services to us and our affiliates and the employees of such entities. The total number of shares of common stock or long-term incentive plan (“LTIP”) units that may be awarded under the Incentive Plan is 4,600,463. The Incentive Plan will automatically expire on the tenth anniversary of its effective date, unless terminated earlier by the Company’s Board of Directors.
Generally, common shares vest over a four-year period pursuant to the terms of the award and the Incentive Plan with the exception of deferred stock units granted to certain members of the Company's Board of Directors that are vested upon issuance. Over the next four years the number of common shares associated with outstanding stock-based compensation awards that will vest include the following: 274,041 in 2023, 220,758 in 2024, 136,859 in 2025 and 30,048 in 2026. During the three and six months ended June 30, 2022, 278,821 common shares vested, of which the Company issued 215,029 shares of common stock. During the three and six months ended June 30, 2022, the Company granted 120,192 common shares and forfeited zero and 15,594 common shares, respectively, related to certain individuals employed by an affiliate of the Manager pursuant to the terms of the Incentive Plan.
During the three and six months ended June 30, 2022, the Company accrued 2,507 and 4,460 shares of common stock, respectively, for dividends that are paid-in kind to non-management members of its Board of Directors related to the dividend payable to holders of record of our common stock as of March 29, 2022 and June 28, 2022. Dividends payable to holders of such grants made on December 17, 2021 and thereafter will be paid in cash.
As of June 30, 2022, total unrecognized compensation costs relating to unvested stock-based compensation arrangements was $8.1 million. These compensation costs are expected to be recognized over a weighted average period of 1.4 years from June 30, 2022. For the three months ended June 30, 2022 and 2021, the Company recognized $1.3 million and $1.4 million, respectively, of stock-based compensation expense. For the six months ended June 30, 2022 and 2021, the Company recognized $2.6 million and $2.8 million, respectively, of stock-based compensation expense.
v3.22.2
Commitments and Contingencies
 6 Months Ended
Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Impact of Global Macroeconomic Conditions
Global economic trends and economic conditions, including heightened inflation, slower growth or recession, changes to fiscal and monetary policy, increased interest rates, currency fluctuations and challenges in the supply chain, the war in Ukraine and the lingering aftereffects of the COVID-19 pandemic have had, and may in the future have, an adverse impact on the Company's business, the U.S. and global economies, the real estate industry and the Company's borrowers, and the performance of the properties securing the Company's loans. As of June 30, 2022, no contingencies have been recorded on the Company's consolidated balance sheet as a result of such trends and conditions; however, if market conditions worsen or extend, it may have long-term impacts on the Company's financial condition, results of operations, and cash flows.
Unfunded Commitments
As part of its lending activities, the Company commits to certain funding obligations which are not advanced at loan closing and that have not been recognized in the Company’s consolidated financial statements. These commitments to extend credit are made as part of the Company’s loans held for investment portfolio and are generally utilized for base building work, tenant improvement costs and leasing commissions, and interest reserves. The aggregate amount of unrecognized unfunded loan commitments existing as of June 30, 2022 and December 31, 2021 was $470.9 million and $487.8 million, respectively.
The Company recorded an allowance for credit losses on loan commitments that are not unconditionally cancellable by the Company of $9.2 million and $4.2 million as of June 30, 2022 and December 31, 2021 which is included in accrued expenses and other liabilities on the Company’s consolidated balance sheets.
Litigation
From time to time, the Company may be involved in various claims and legal actions arising in the ordinary course of business. The Company establishes an accrued liability for loss contingencies when a settlement arising from a legal proceeding is both probable and reasonably estimable. If a legal matter is not probable and reasonably estimable, no such liability is recorded. Examples of this include (i) early stages of a legal proceeding, (ii) damages that are unspecified or cannot be determined, (iii) discovery has not started or is incomplete or (iv) there is uncertainty as to the outcome of pending appeals or motions. If these items exist, an estimated range of potential loss cannot be determined and as such the Company does not record an accrued liability.
As of June 30, 2022 and December 31, 2021, the Company was not involved in any material legal proceedings and has not recorded an accrued liability for loss contingencies.
v3.22.2
Concentration of Credit Risk
 6 Months Ended
Jun. 30, 2022
Risks and Uncertainties [Abstract]  
Concentration of Credit Risk Concentration of Credit Risk
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 because 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 office buildings, hotels and retail properties. At the onset of the COVID-19 pandemic, hotels were disproportionately affected. As the pandemic has evolved, and the ways people use real estate has changed, much of the Company's focus has shifted to its office exposure. For example, office buildings may be adversely impacted by a slowdown in return-to-office or a reversal in the pre-COVID trend toward increased densification of office space, or a preference by office users for suburban properties less reliant on public transportation to safely deliver their employees to and from the workplace. Additionally, entrenched work-from-home behavior by employees may cause a slow return to office, or permanent reduction in demand for office space.
Property Type
A summary of the Company’s loans held for investment portfolio by property type based on total loan commitment and current unpaid principal balance (“UPB”) is as follows (dollars in thousands):
June 30, 2022
Property typeLoan commitmentUnfunded commitment
% of loan commitment
Loan UPB
% of loan UPB
Office$1,928,630 $142,168 37.2 %$1,786,462 37.8 %
Multifamily1,865,326 133,194 36.0 1,732,132 36.8 
Hotel493,944 4,000 9.5 492,359 10.5 
Life Science404,600 146,367 7.8 258,233 5.5 
Mixed-Use285,340 15,230 5.5 270,110 5.7 
Industrial113,000 6,167 2.2 106,833 2.3 
Other50,600 21,600 1.0 29,000 0.6 
Retail(1)
33,000 2,143 0.6 23,000 0.5 
Condominium(2)
12,032 — 0.2 12,032 0.3 
Total$5,186,472 $470,869 100.0 %$4,710,161 100.0 %
December 31, 2021
Property typeLoan commitmentUnfunded commitment
% of loan commitment
Loan UPB
% of loan UPB
Office$2,265,187 $178,878 41.9 %$2,086,309 42.4 %
Multifamily1,595,643 121,211 29.5 1,474,731 30.0 
Hotel658,943 4,000 12.2 657,672 13.4 
Life Science494,600 163,860 9.1 330,740 6.7 
Mixed-Use347,408 17,681 6.4 329,728 6.7 
Retail(1)
33,000 2,143 0.6 23,000 0.5 
Condominium(2)
17,163 — 0.3 17,163 0.3 
Total$5,411,944 $487,773 100.0 %$4,919,343 100.0 %
_______________________
(1)For the period ended June 30, 2022 and December 31, 2021, the Company's non-performing retail loan held for investment was in default of its loan agreement and as a result the $2.1 million of outstanding unfunded loan commitments could not be drawn upon by the borrower.
(2)Condominium property type includes a 24% pari passu participation interest in each of four whole mortgage loans related to one project to the same borrower.
Loan commitments exclude (1) capitalized interest resulting from previously modified loans of $2.4 million and $3.0 million as of June 30, 2022 and December 31, 2021, respectively and include (2) a $7.8 million commitment related to a non-performing retail loan held for investment. The commitment cannot be drawn by the borrower.
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 is as follows (dollars in thousands):
June 30, 2022
Geographic regionLoan commitmentUnfunded commitment
% of loan commitment
Loan UPB
% of loan UPB
East$1,942,462 $71,429 37.5 %$1,872,204 39.7 %
West(1)
1,510,326 249,692 29.1 1,253,479 26.6 
South1,290,922 106,851 24.9 1,184,613 25.2 
Midwest372,762 36,730 7.2 336,032 7.1 
Various70,000 6,167 1.3 63,833 1.4 
Total$5,186,472 $470,869 100.0 %$4,710,161 100.0 %
December 31, 2021
Geographic regionLoan commitmentUnfunded commitment
% of loan commitment
Loan UPB
% of loan UPB
East$1,925,457 $63,459 35.6 %$1,863,172 37.8 %
West(1)
1,484,883 244,100 27.4 1,233,628 25.1 
South1,323,800 115,714 24.5 1,208,940 24.6 
Midwest677,804 64,500 12.5 613,603 12.5 
Total$5,411,944 $487,773 100.0 %$4,919,343 100.0 %
_______________________
(1)For the period ended June 30, 2022 and December 31, 2021, the Company's unfunded loan commitments included $2.1 million of outstanding unfunded loan commitments that could not be drawn upon by the borrower related to a non-performing retail loan held for investment that was in default.
Loan commitments exclude (1) capitalized interest resulting from previously modified loans of $2.4 million and $3.0 million as of June 30, 2022 and December 31, 2021, respectively and include (2) a $7.8 million commitment related to a non-performing retail loan held for investment. The commitment cannot be drawn by the borrower.
Category
A summary of the Company’s loans held for investment portfolio by loan category based on total loan commitment and current UPB is as follows (dollars in thousands):
June 30, 2022
Loan categoryLoan commitmentUnfunded commitment
% of loan commitment
Loan UPB
% of loan UPB
Moderate Transitional$1,735,717 $270,443 33.4 %$1,466,446 31.1 %
Bridge(1)
1,684,247 49,873 32.5 1,627,760 34.6 
Light Transitional1,680,908 128,953 32.4 1,551,955 32.9 
Construction85,600 21,600 1.7 64,000 1.4 
Total$5,186,472 $470,869 100.0 %$4,710,161 100.0 %
December 31, 2021
Loan categoryLoan commitmentUnfunded commitment
% of loan commitment
Loan UPB
% of loan UPB
Moderate Transitional$1,950,739 $294,693 36.1 %$1,657,218 33.7 %
Light Transitional1,779,310 145,621 32.9 1,633,689 33.2 
Bridge(1)
1,646,895 47,459 30.4 1,593,436 32.4 
Construction35,000 — 0.6 35,000 0.7 
Total$5,411,944 $487,773 100.0 %$4,919,343 100.0 %
_______________________
(1)For the period ended June 30, 2022 and December 31, 2021, the Company's unfunded loan commitments included $2.1 million of outstanding unfunded loan commitments that could not be drawn upon by the borrower related to a non-performing retail loan held for investment that was in default.
Loan commitments exclude (1) capitalized interest resulting from previously modified loans of $2.4 million and $3.0 million as of June 30, 2022 and December 31, 2021, respectively and include (2) a $7.8 million commitment related to a non-performing retail loan held for investment. The commitment cannot be drawn by the borrower.
v3.22.2
Subsequent Events
 6 Months Ended
Jun. 30, 2022
Subsequent Events [Abstract]  
Subsequent Events Subsequent Events
The following events occurred subsequent to June 30, 2022:
•From July 1, 2022 through August 2, 2022, the Company closed, or is in the process of closing, seven first mortgage loans with a total loan commitment amount of $557.1 million and initial fundings of $513.0 million.
•From July 1, 2022 through August 2, 2022, the Company received full loan repayments related to two of its first mortgage loans with an aggregate loan commitment and unpaid principal balance of $226.6 million and $226.2 million, respectively. The first mortgage loans were all secured by office properties.
•From July 1, 2022 through August 2, 2022, the Company had the following activity related to its loans held for investment:
•On July 9, 2022, the Company entered into an extension and modification agreement with respect to its one risk category “5” office loan to facilitate an orderly disposition of the underlying property by the borrower. The amortized cost of the loan was $55.7 million, and the carrying value of the loan was $44.6 million, net of an individually-assessed CECL reserve of $11.1 million, as of June 30, 2022. The loan is performing and all contractual amounts due to the Company have been received.
•On July 14, 2022, the property securing the Company's non-performing retail loan was sold by the borrower for $19.7 million, generating net proceeds of $18.6 million, that were directed by the borrower to retire the Company's loan. The Company will realize a $4.4 million loss during the three months ended September 30, 2022, which was fully reserved within the Company's CECL reserve as of June 30, 2022.
v3.22.2
Summary of Significant Accounting Policies (Policies)
 6 Months Ended
Jun. 30, 2022
Accounting Policies [Abstract]  
Basis of Presentation
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. The Company believes it has made all necessary adjustments, consisting of only normal recurring items, so that the consolidated financial statements are presented fairly and that estimates made in preparing the consolidated financial statements are reasonable and prudent. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These interim consolidated financial statements should be read in conjunction with the Company’s Form 10-K filed with the SEC on February 23, 2022.
Use of Estimates
Use of Estimates
The preparation of the consolidated financial statements in conformity with GAAP requires estimates of assets, liabilities, revenues, expenses and disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Actual results could differ from management’s estimates, and such differences could be material. Significant estimates made in the consolidated financial statements include, but are not limited to, the adequacy of our allowance for credit losses and the valuation inputs related thereto and the valuation of financial instruments. Actual amounts and values as of the balance sheet dates may be materially different from the amounts and values reported due to the inherent uncertainty in the estimation process and the limited availability of observable pricing inputs due to the nature of transitional mortgage loans. Also, future amounts and values could differ materially from those estimates due to changes in values and circumstances after the balance sheet date and the limited availability of observable prices.
Principles of Consolidation
Principles of Consolidation
Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810—Consolidation (“ASC 810”) provides guidance on the identification of a variable interest entity (“VIE”), for which control is achieved through means other than voting rights, and the determination of which business enterprise, if any, should consolidate the VIE. An entity is considered a VIE if any of the following applies: (1) the equity investors (if any) lack one or more of the essential characteristics of a controlling financial interest; (2) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support; or (3) the equity investors have voting rights that are not proportionate to their economic interests and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. The Company consolidates VIEs in which the Company is considered to be the primary beneficiary. The primary beneficiary is defined as the entity having both of the following characteristics: (1) the power to direct the activities that, when taken together, most significantly impact the VIE’s performance; and (2) the obligation to absorb losses and right to receive the returns from the VIE that would be significant to the VIE.
At each reporting date, the Company reconsiders its primary beneficiary conclusions for all its VIEs to determine if its obligation to absorb losses of, or its rights to receive benefits from, the VIE could potentially be more than insignificant, and will consolidate or not consolidate in accordance with GAAP. See Note 5 for details.
Revenue Recognition
Revenue Recognition
Interest income on loans is accrued using the interest method based on the contractual terms of the loan, adjusted for expected or realized credit losses, if any. The objective of the interest method is to arrive at periodic interest income, including recognition of fees and costs, at a constant effective yield. Premiums, discounts, and origination fees are amortized or accreted into interest income over the lives of the loans using the interest method, or on a straight-line basis when it approximates the interest method. Extension and modification fees are accreted into interest income on a straight-line basis, when it approximates the interest method, over the related extension or modification period. Exit fees are accreted into interest income on a straight-line basis, when it approximates the interest method, over the lives of the loans to which they relate unless they can be waived by the Company or a co-lender in connection with a loan refinancing, or if timely collection of principal and interest is doubtful. Prepayment penalties from borrowers are recognized as interest income when received. Certain of the Company’s loan investments have in the past, and may in the future, provide for additional interest based on the borrower’s operating cash flow or appreciation in the value of the underlying collateral. Such amounts are considered contingent interest and are reflected as interest income only upon certainty of collection. Certain of the Company’s loan investments have in the past, and may in the future, provide for the accrual of interest (in part, or in whole) instead of its current payment in cash, with the accrued interest (“PIK interest”) added to the unpaid principal balance of the loan. Such PIK interest is recognized currently as interest income unless the Company concludes eventual collection is unlikely, in which case the PIK interest is written off.
All interest accrued but not received for loans placed on non-accrual status is subtracted from interest income at the time the loan is placed on non-accrual status. Based on the Company’s judgment as to the collectability of principal, a loan on non-accrual status is either accounted for on a cash basis, where interest income is recognized only upon receipt of cash for interest payments, or on a cost-recovery basis, where all cash receipts reduce the loan’s carrying value, and interest income is only recorded when such carrying value has been fully recovered.
Loans Held for Investment
Loans Held for Investment
Loans that the Company has the intent and ability to hold for the foreseeable future, or until maturity or repayment, are reported at their outstanding principal balances net of cumulative charge-offs, interest applied to principal (for loans accounted for using the cost recovery method), unamortized premiums, discounts, loan origination fees and costs. Loan origination fees and direct loan origination costs are deferred and recognized in interest income over the estimated life of the loans using the interest method, or on a straight-line basis when it approximates the interest method, adjusted for actual prepayments. Accrued but not yet collected interest is separately reported as accrued interest and fees receivable on the Company’s consolidated balance sheets.
Non-Accrual Loans
Non-Accrual Loans
Loans are placed on non-accrual status when the full and timely collection of principal and interest is doubtful, generally when: management determines that the borrower is incapable of, or has ceased efforts toward, curing the cause of a default; the loan becomes 90 days or more past due for principal and interest; or the loan experiences a maturity default. The Company considers an account past due when an obligor fails to pay substantially all (defined as 90%) of the scheduled contractual payments by the due date. In each case, the period of delinquency is based on the number of days payments are contractually past due. A loan may be returned to accrual status if all delinquent principal and interest payments are brought current, and collectability of the remaining principal and interest payments in accordance with the loan agreement is reasonably assured. Loans that in the judgment of the 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.
Loans Held for Sale
Loans Held for Sale
The Company may change its intent, or its assessment of its ability, to hold for the foreseeable future loans held for investment based on changes in the real estate market, capital markets, or when a shift in its loan portfolio construction occurs. Once a determination is made to sell a loan, or the Company determines it no longer has the intent and ability to hold a loan held for investment for the foreseeable future, the loan is transferred to loans held for sale. In accordance with GAAP, loans classified as held for sale are recorded at the lower of cost or fair value, net of estimated selling costs, and the loan is excluded from the determination of the current expected credit loss ("CECL") reserve.
Credit Losses
Credit Losses
Allowance for Credit Losses for Loans Held for Investment
The Company accounts for its allowance for credit losses on loans held for investment using the Current Expected Credit Loss model of ASC Topic 326, Financial Instruments-Credit Losses (“ASC 326”). Periodic changes to the CECL reserve are recognized through net income on the Company’s consolidated statements of income and comprehensive income. The allowance for credit losses measured under the CECL accounting framework represents an estimate of current expected losses for the Company’s existing portfolio of loans held for investment, and is presented as a valuation reserve on the Company’s consolidated balance sheets. Expected credit losses related to non-cancelable unfunded loan commitments are accounted for as separate liabilities included in accrued expenses and other liabilities on the consolidated balance sheets. The allowance for credit losses for loans held for investment, as reported in the Company’s consolidated balance sheets, is adjusted by a credit loss benefit (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 uncollectible accrued interest receivable in a timely manner pursuant to its non-accrual policy, described above.
The Company considers key credit quality indicators in underwriting loans and estimating credit losses, including but not limited to: the capitalization of borrowers and sponsors; the expertise of the borrowers and sponsors in a particular real estate 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 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, existence of a liquid investment sales market for commercial properties, and availability of replacement short-term or long-term financing. The loans in the Company’s commercial mortgage loan portfolio are secured by collateral of the following property types: office; life science; multifamily; hotel; industrial; mixed-use; land for industrial and office use; condominium; and retail.
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. The Company regularly evaluates on a loan-by-loan basis, typically no less frequently than quarterly, the extent and impact of any credit deterioration associated with the performance and/or value of the underlying collateral property, and the financial and operating capability of the borrower/sponsor. The Company also evaluates the financial strength of loan guarantors, if any, and the borrower’s competency in managing and operating the property or properties. In addition, the Company considers the overall economic environment, real estate 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.
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 structural features; (ii) quality and stability of real estate value and operating cash flow, including debt yield, property type, dynamics of the geography, local market, physical condition, stability of cash flow, leasing velocity and quality and diversity of tenancy; (iii) performance against underwritten business plan; (iv) the frequency and materiality of loan modifications or waivers occasioned by unfavorable variances between the underwritten business plan and actual performance; (v) changes in the capital markets that may impact the refinancing or sale of the loan; and (vi) quality, experience and financial condition of sponsor, borrower and guarantor(s). Based on a 5-point scale, the Company’s loans are rated “1” through “5,” from least risk to greatest risk, respectively, 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; the loan is in default or substantially in default; timely exit from loan via sale or refinancing is questionable; significant risk of principal loss.
The Company generally assigns a risk rating of “3” to all loan investments upon origination, except in the case of specific circumstances warranting an exception.
The Company’s CECL reserve also reflects its estimates of the current and future economic conditions that impact the performance of the commercial real estate assets securing the Company’s loans. These estimates include unemployment rates, inflation rates, interest rates, price indices for commercial property, current and expected future availability of liquidity in the commercial property debt and equity capital markets, and other macroeconomic factors that may influence the likelihood and magnitude of potential credit losses for the Company’s loans during their anticipated term. The Company licenses certain macroeconomic financial forecasts to inform its view of the potential future impact that broader economic conditions may have on its loan portfolio’s performance. Selection of the economic forecast or forecasts used, in conjunction with loan level inputs, to determine the CECL reserve requires significant judgment about future events that, while based on the information available to the Company as of the balance sheet date, are ultimately unknowable with certainty. The actual economic conditions impacting the Company’s portfolio could vary significantly from the estimates the Company made for the periods presented.
The key inputs to the Company's estimation of its allowance for credit losses as of June 30, 2022 were impacted by dislocations in the capital markets, increased interest rates, accelerating inflationary trends, a heightened risk of recession, and geopolitical conflicts. Inherent uncertainty in the estimation process and the limited availability of observable pricing inputs due to the nature of transitional mortgage loans also constrain the Company's ability to estimate key inputs utilized to calculate its allowance for credit losses. Key inputs to the estimate include, but are not limited to: LTV; debt service coverage ratio; current and future operating cash flow and performance of collateral properties; the financial strength and liquidity of borrowers and sponsors; capitalization rates and discount rates used to value commercial real estate properties; and market liquidity based on market indices or observable transactions involving the sale or financing of commercial properties. Estimates made by the Company are subject to change. Actual results could differ from management’s estimates, and such differences could be material.
Credit Loss Measurement
Credit Loss Measurement
The amount of allowance for credit losses is influenced by the size of the Company’s loan portfolio, loan quality and duration, collateral operating performance, risk rating, delinquency status, historic loss experience and other characteristics influencing loss expectations, such as reasonable and supportable forecasts of economic conditions. The Company employs two methods to estimate credit losses in its loan portfolio: a loss-given-default (“LGD”) model-based approach utilized for substantially all of its loans; and an individually-assessed approach for loans for which the Company concludes it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan, or are individually-assessed because the loan is considered to be "collateral-dependent" as the repayment of the loan is expected to be provided substantially through the operation or sale of the underlying collateral and the borrower is experiencing financial difficulty.
Once the expected credit loss amount is determined, an allowance for credit losses is established. A loan will be written off through credit loss (expense) benefit, net in the consolidated statements of income and comprehensive income when it is deemed non-recoverable upon a realization event. This is generally at the time the loan is settled, transferred or exchanged. Non-recoverability may also be concluded by the Company if, in its determination, it is nearly certain that all amounts due will not be collected. This loss is equal to the difference between the cash received, or expected to be received, and the carrying value of the asset. Factors considered by the Company in determining whether the expected credit loss is not recoverable include whether the Company determines that the loan is uncollectible, which means repayment is deemed to be delayed beyond a reasonable time, a loss becomes evident due to a borrower’s lack of assets and liquidity, or a borrower’s sponsor is unwilling or unable to support the loan.
Allowance for Credit Losses for Loans Held for Investment – Model-Based Approach
The model-based approach used 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 120,000 commercial real estate loans dating back to 1998, in an analytical model to compute statistical credit loss factors (i.e., probability-of-default, loss severity, and loss-given-default). These credit loss factors are utilized by the Company together with loan specific inputs such as property-level operating performance information, delinquency status, indicators of credit quality, and other credit trends and risk characteristics. Additionally, the Company considers relevant loan and borrower specific qualitative factors, incorporates its expectations about the impact of current macroeconomic and local market conditions and reasonable and supportable operating forecasts on expected future credit losses in deriving its estimate. For the period beyond which the Company is able to make reasonable and supportable forecasts, the Company reverts to unadjusted historical loan loss information.

In certain instances, the Company uses a probability-weighted outcome approach to estimate future recovery amounts. The probability-weighted outcome approach is used when multiple credit resolution paths may exist, some of which may involve disparate outcomes.
Allowance for Credit Losses for Loans Held for Investment – Individually-Assessed Approach
In instances where the Company concludes a loan repayment is entirely dependent on the sale of the underlying collateral, or when it is deemed probable that the Company will not be able to collect all amounts due according to the contractual terms of the loan, the Company individually assesses the allowance for credit loss for the underlying loan. The amount of expected credit loss is determined using broadly accepted and standard real estate valuation techniques (most commonly, a discounted cash flow model and real estate sales comparables), and considers substantially the same credit factors as utilized in the model-based method. In instances where the Company determines foreclosure of the underlying collateral is probable, the expected credit loss is measured as the difference between the amortized cost basis of the loan and the fair value of the underlying collateral as of the measurement date. The fair value of the underlying collateral is adjusted for the estimated cost to sell if repayment or satisfaction of a loan is dependent on the sale (rather than the operation) of the underlying collateral in instances where foreclosure is not probable.
Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. Evaluations of the loan portfolio in future periods, given the prevailing forecasts and credit loss factors, may result in significant changes to the Company's allowance for credit losses and credit loss expense.
Unfunded Loan Commitments
Unfunded Loan Commitments
The Company’s first mortgage loans often contain provisions for future funding of a pre-determined portion of capital and other costs incurred by the borrower in executing its business plan. These deferred fundings are conditioned upon the borrower’s execution of its business plan with respect to the underlying collateral property securing the loan. These deferred fundings are typically for base building work, tenant improvement costs and leasing commissions, interest reserves, and occasionally to fund forecasted operating deficits during lease-up. These deferred funding commitments may be for specific periods, often require satisfaction by the borrower of conditions precedent, and may contain termination clauses at the option of the borrower or, more rarely, at the Company’s option. The total amount of unfunded commitments does not necessarily represent actual amounts that may be funded in cash in the future, since commitments may expire without being drawn, may be cancelled if certain conditions are not satisfied by the borrower, or borrowers may elect not to borrow some or all of the unused commitment. The Company does not recognize these unfunded loan commitments in its consolidated financial statements.
The Company applies its expected credit loss estimates to all future funding commitments that cannot be contractually terminated at the Company’s option. The Company maintains a separate allowance for expected credit losses from unfunded loan commitments, which is included in accrued expenses and other liabilities on the consolidated balance sheets. The Company estimates the amount of expected losses by calculating a commitment usage factor over the contractual period for exposures that are not unconditionally cancellable by the Company and applies the loss factors used in the allowance for credit loss methodology described above to the results of the usage calculation to estimate the liability for credit losses related to unfunded commitments for each loan.
Real Estate Owned
Real Estate Owned
Real estate acquired through a foreclosure or by deed-in-lieu of foreclosure is classified as real estate owned (“REO”) and held for investment on the Company’s consolidated balance sheet until a pending sales transaction meets the criteria of ASC 360-10-45-9 after which the real estate is considered to be held for sale, or is sold. The Company's cost basis in REO is equal to the estimated fair value of the collateral at the date of acquisition, less estimated selling costs. The estimated fair value of REO is determined using a discounted cash flow model and inputs that include the highest and best use for each asset, estimated future values based on extensive discussions with local brokers, investors and other market participants, the estimated holding period for the asset, and discount rates that reflect estimated investor return requirements for the risks associated with the expected use of each asset. If the estimated fair value of REO is lower than the carrying value of the related loan upon acquisition, the difference, along with any previously recorded specific CECL reserve, is recorded through Credit Loss (Benefit) Expense in the consolidated statements of income and comprehensive income.
REO is initially measured at fair value and is thereafter subject to an ongoing impairment analysis. Subsequent to a REO acquisition, events or circumstances may occur that result in a material and sustained decrease in the cash flows generated from the asset. REO is evaluated for recoverability, on a fair value basis, when impairment indicators are identified. Any impairment loss, revenue and expenses from operations of the properties, and resulting gains or losses on sale are included in the consolidated statements of income and comprehensive income.
Investment Portfolio Financing Arrangements
Investment Portfolio Financing Arrangements
The Company finances its portfolio of loans, or participation interests therein, and REO using secured financing agreements, including secured credit agreements, secured revolving credit facilities, asset-specific financing arrangements, mortgage loans payable, and collateralized loan obligations. The related borrowings are recorded as separate liabilities on the Company’s consolidated balance sheets. Interest income earned on the investments and interest expense incurred on the related borrowings are reported separately on the Company’s consolidated statements of income 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 June 30, 2022, the Company transferred, on a non-recourse basis, 100% of the senior mortgage loan that the Company 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 loans transferred, the Company retains: no control over the mortgage loan; no economic interest in the mortgage loan; and no recourse to the purchaser or the borrower. Consequently, based on these circumstances and because the Company does not have any continuing involvement with the transferred senior mortgage loan, these syndications are accounted for as sales under GAAP and are removed from the Company’s consolidated financial statements at the time of transfer. The Company’s consolidated balance sheets only include the separate mezzanine loan remaining after the transfer.
For more information regarding the Company’s investment portfolio financing arrangements, see Note 6.
Fair Value Measurements
Fair Value Measurements
The Company follows ASC 820-10, Fair Value Measurements and Disclosures (“ASC 820-10”), for its holdings of financial instruments. ASC 820-10 defines fair value, establishes a framework for measuring fair value in accordance with GAAP and expands disclosure of fair value measurements. ASC 820-10 determines fair value to be the price that would be received for a financial instrument in a current sale, which assumes an orderly transaction between market participants on the measurement date. The Company determines the estimated fair value of financial assets and liabilities using the three-tier fair value hierarchy established by GAAP, which prioritizes the inputs used in measuring fair value. GAAP establishes market-based or observable inputs as the preferred source of values followed by valuation models using management assumptions in the absence of market inputs. The financial instruments recorded at fair value on a recurring basis in the Company’s consolidated financial statements are cash, cash equivalents, and restricted cash. The three levels of inputs that may be used to measure fair value are as follows:
Level I—Valuations based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to access.
Level II—Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.
Level III—Valuations based on inputs that are unobservable and significant to the overall fair value measurement.
For certain financial instruments, the inputs used by management to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value hierarchy is appropriate for such financial instrument is based on the lowest level of input that is significant to the fair value measurement.
The assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument. The Company may use valuation techniques consistent with the market and income approaches to measure the fair value of its assets and liabilities. The market approach uses third-party valuations and information obtained from market transactions involving identical or similar assets or liabilities. The income approach uses projections of the future economic benefits of an instrument to determine its fair value, such as in the discounted cash flow methodology. The inputs or methodology used for valuing financial instruments are not necessarily an indication of the risk associated with investing in these financial instruments. Transfers between levels of the fair value hierarchy are assumed to occur at the end of the reporting period.
The following methods and assumptions are used by our Manager to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value:
•Cash and cash equivalents: the carrying amount of cash and cash equivalents approximates fair value.
•Loans held for investment, net: using a discounted cash flow methodology employing a discount rate for loans of comparable credit quality, structure, and LTV based upon appraisal information and current estimates of the value of collateral property performed by the Manager, and credit spreads for loans of comparable risk (as determined by the Manager based on the factors previously described) as corroborated by inquiry of other market participants.
•Loans held for sale: estimated fair market value based on sale comparables as corroborated by inquiry of other market participants or independent market data providers.
•Secured revolving credit facilities, asset-specific financings, and mortgage loan payable (if any): based on the rate at which a similar secured revolving credit facility, asset-specific financing, or mortgage loan payable (if any) would currently be priced, as corroborated by inquiry of other market participants.
•CRE Collateralized Loan Obligations, net: indications of value from dealers active in trading similar or substantially similar securities, observable quotes from market data services, reported prices and spreads for recent new issues, and Manager estimates of the credit spread at which similar bonds would be issued, or traded, in the new issue and secondary markets.
•Other assets and liabilities subject to fair value measurement, including receivables, payables and accrued liabilities have carrying values that approximate fair value due to their short-term nature.
As discussed above, market-based or observable inputs are generally the preferred source of values for purposes of measuring the fair value of the Company’s assets under GAAP. The commercial property investment sales and commercial mortgage loan markets have experienced uneven liquidity due to global macroeconomic conditions, including heightened inflation, slower growth or recession, changes to fiscal and monetary policy, increased interest rates, currency fluctuations, labor shortages and challenges in the supply chain, coupled with the war in Ukraine and the lingering aftereffects 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 plentiful market inputs, GAAP permits the use of management assumptions to measure fair value. Inherent uncertainty in the estimation process, and the limited availability of observable pricing inputs due to the nature of transitional mortgage loans, also constrain the Company's ability to estimate key inputs utilized to calculate its estimated fair value measurements.
Income Taxes
Income Taxes
The Company qualifies and has elected to be taxed as a REIT for U.S. federal income tax purposes under the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), commencing with its initial taxable year ended December 31, 2014. To the extent that it annually distributes at least 90% of its REIT taxable income to stockholders and complies with various other requirements as a REIT, the Company generally will not be subject to U.S. federal income taxes on its distributed REIT taxable income. In 2017, the Internal Revenue Service issued a revenue procedure permitting “publicly offered” REITs to make elective stock dividends (i.e., dividends paid in a mixture of stock and cash), with at least 20% of the total distribution being paid in cash, to satisfy their REIT distribution requirements. Pursuant to this revenue procedure, the Company may elect to make future distributions of its taxable income in a mixture of stock and cash. If the Company fails to continue to qualify as a REIT in any taxable year and does not qualify for certain statutory relief provisions, the Company will be subject to U.S. federal and state income taxes at regular corporate rates beginning with the year in which it fails to qualify and may be precluded from being able to elect to be treated as a REIT for the Company’s four subsequent taxable years. Even though the Company currently qualifies for taxation as a REIT, the Company may be subject to certain U.S. federal, state, local and foreign taxes on the Company’s income and property and to U.S. federal income and excise taxes on the Company’s undistributed REIT taxable income.
In certain instances, the Company may generate excess inclusion income (“EII”) within the Sub-REIT structure it established for the purpose of issuing collateralized loan obligations (“CRE CLOs”). EII has in the past been present in certain of the Company’s CRE CLOs due to the sharp decline in LIBOR since the issuance of the liabilities by certain of the Company's CRE CLOs', loans with high interest rate floors that are contributed into the CRE CLOs, and liabilities largely based on unfloored LIBOR or Compounded SOFR. EII, which is treated as unrelated business taxable income (“UBTI”), is an obligation of the Company and is allocated only to a taxable REIT subsidiary (“TRS”) and not to its common stockholders.
Deferred tax assets and liabilities are recognized for future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the periods in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period in which the enactment date occurs. Under ASC Topic 740, Income Taxes (“ASC 740”), a valuation allowance is established when management believes it is more likely than not that a deferred tax asset will not be realized. Currently, the Company has no temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis.
The Company intends to continue to operate in a manner consistent with, and to continue to meet the requirements to be treated as, a REIT for tax purposes and to distribute all of its REIT taxable income.
Earnings per Common Share
Earnings per Common Share
The Company calculates basic earnings per share using the two-class method which defines unvested stock-based compensation awards that contain nonforfeitable rights to dividends as participating securities. The two-class method is an allocation formula that determines earnings per share for each share of common stock and participating securities according to dividends declared and participation rights in undistributed earnings. Under this method, all earnings (distributed and undistributed) are allocated to common shares and participating securities based on their respective rights to receive dividends. Basic earnings per common share is calculated by dividing earnings allocated to common shareholders by the weighted-average number of common shares outstanding during the period.
Diluted earnings per share is computed under the more dilutive of the treasury stock method or the two-class method. The computation of diluted earnings per share is based on the weighted average number of participating securities outstanding plus the incremental shares that would be outstanding assuming exercise of warrants to purchase common stock (the “Warrants”, see Note 12) issued in connection with the Company’s no-longer-outstanding Series B Cumulative Redeemable Preferred Stock (the “Series B Preferred Stock”), which are exercisable on a net-share settlement basis. The number of incremental shares is calculated utilizing the treasury stock method.
The Company accounts for unvested stock-based compensation awards that contain non-forfeitable dividend rights or dividend equivalents (whether paid or unpaid) as participating securities, which are included in the computation of earnings per share pursuant to the two-class method. The Company excludes participating securities and Warrants from the calculation of diluted weighted average shares outstanding in periods of net losses since their effect would be anti-dilutive.
Stock-based Compensation
Stock-based Compensation
Stock-based compensation consists of awards issued by the Company to certain employees of affiliates of the Manager and certain members of the Company’s Board of Directors. The stock-based compensation awards to certain employees of affiliates of the Manager generally vest in installments over a fixed period. Deferred stock units granted to the Company’s Board of Directors prior to December 2021 fully vested on the grant date and accrued, and will continue to accrue, common stock dividends that are paid-in kind through additional deferred stock units on a quarterly basis. Deferred stock units granted in December 2021 and in future periods will fully vest on the grant date, and will continue to accrue and be paid, cash common stock dividends on a quarterly basis. Stock-based compensation expense is recognized in net income on a straight-line basis over the applicable award’s vesting period. Forfeitures of stock-based compensation awards are recognized as they occur.
Deferred Financing Costs
Deferred Financing Costs
Deferred financing costs are reflected net of the liabilities to which they relate, currently collateralized loan obligations and secured financing agreements, which include secured credit agreements and a secured revolving credit facility, on the Company’s consolidated balance sheets. These costs are amortized in interest expense using the interest method, or on a straight-line basis when it approximates the interest method, as follows: (i) for secured financing agreements other than CRE CLOs, the initial term of the financing agreement, or in the case of costs directly associated with the loan, over the life of the financing agreement or the loan, whichever is shorter; and (ii) for CRE CLOs, over the estimated life of the liabilities issued based on the underlying loans’ initial maturity dates, considering the expected repayment behavior of the loans collateralizing the notes and the impact of any reinvestment periods, as of the closing date.
Cash and Cash Equivalents
Cash and Cash Equivalents
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 June 30, 2022 and December 31, 2021. The balances in these accounts may exceed the insured limits.
Pursuant to financial covenants applicable to Holdco, which is the guarantor of the Company’s recourse indebtedness, the Company is required to maintain minimum cash equal to the greater of (i) $15 million or (ii) the product of 5% and the aggregate recourse indebtedness of the Company. As of June 30, 2022 and December 31, 2021, the Company held as part of its total cash balances $17.3 million and $15.0 million to comply with this covenant, respectively.
Restricted Cash
Restricted Cash
Restricted cash primarily represents deposits paid by potential borrowers to cover certain costs incurred by the Company in connection with loan originations. These deposits may be returned to borrowers, after deducting eligible transaction costs paid by the Company for the benefit of the borrowers, upon the closing of a loan transaction, or if a loan transaction does not close and deposit proceeds remain. As of June 30, 2022, cash and cash equivalents of $356.0 million has been combined with $0.8 million of restricted cash in the consolidated statement of cash flows. As of December 31, 2021, cash and cash equivalents of $260.6 million has been combined with $0.4 million of restricted cash in the consolidated statement of cash flows.
Collateralized Loan Obligation Proceeds Held at Trustee
Collateralized Loan Obligation Proceeds Held at Trustee
Collateralized Loan Obligation Proceeds Held at Trustee represent cash held by the Company’s collateralized loan obligations pending reinvestment in eligible collateral. See Note 5 for additional details.
Accounts Receivable from Servicer/Trustee
Accounts Receivable from Servicer/Trustee
Accounts receivable from Servicer/Trustee represents cash proceeds from loan activities that have not been remitted to the Company based on established servicing and borrowing procedures. Such amounts are generally held by the Servicer/Trustee for less than 30 days before being remitted to the Company.
Stockholders' Equity Stockholders’ EquityTotal Stockholders’ Equity may include preferred stock, common stock, and derivative instruments indexed to the Company's common stock such as warrants or other embedded options within financing arrangements that may be classified as temporary or permanent equity. Common shares generally represent a basic ownership interest in an entity and a residual corporate interest in liquidation, bearing the ultimate risk of loss and receiving the benefit of success. Common shares are usually perpetual in nature with voting rights and dividend rights. Preferred shares are usually characterized by the life of the instrument (i.e., perpetual or redeemable) and the ability of a holder to convert the equity instrument into cash, common shares, or a combination thereof. The terms of preferred shares can vary significantly, including but not limited to, an equity instrument’s dividend rate, term (e.g., existence of a stated redemption date), conversion features, voting rights, and liquidation preferences. Derivative instruments indexed to the Company's common stock such as warrants or other embedded options within financing arrangements are generally classified based on which party controls the contract settlement mechanism and the nature of the settlement terms that may require, or allow, the Company to make a cash payment, issue common shares, or a combination thereof to satisfy its obligation of the underlying contract.
Temporary Equity
Temporary Equity
Equity instruments that are redeemable for cash or other assets are classified as temporary equity if the instrument is redeemable, at the option of the holder, at a fixed or determinable price on a fixed or determinable date or upon the occurrence of an event that is not solely within the control of the issuer.
Redeemable equity instruments are initially carried at the relative fair value of the equity instrument at the issuance date, which is subsequently adjusted at each balance sheet date if the instrument is currently redeemable or probable of becoming redeemable. The Series B Preferred Stock issued in connection with the Investment Agreement described in Note 12 is classified as temporary equity in the accompanying financial statements. The Company elected the accreted redemption value method under which it accreted changes in the redemption value over the period from the date of issuance of the Series B Preferred Stock to the earliest costless redemption date (May 28, 2024, the fourth anniversary) using the effective interest method. Such adjustments are included in Accretion of Discount on Series B Cumulative Redeemable Preferred Stock on the Company’s consolidated statements of changes in equity and treated similarly to a dividend on preferred stock for GAAP purposes. On June 16, 2021, the Company redeemed all 9,000,000 outstanding shares of the Series B Preferred Stock and accelerated the accretion of the redemption value. As of June 30, 2022 and December 31, 2021, the Company had no shares of Series B Preferred Stock outstanding. The Series B Preferred Stock issuance, including details related to the Warrants, and redemption are described in Note 12.
Permanent Equity
Permanent Equity
The Company has preferred stock, common stock, and Warrants issued in connection with the Series B Preferred Stock transaction that are outstanding and classified as permanent equity. The Warrants are exercisable on a net-settlement basis and expire on May 28, 2025. None of the Warrants have been exercised as of June 30, 2022. The Company’s common stock is perpetual with voting rights and dividend rights. On June 14, 2021, the Company issued 8,050,000 shares of Series C Cumulative Redeemable Preferred Stock (the “Series C Preferred Stock”) that is classified as permanent equity. The outstanding shares of Series C Preferred Stock have a 6.25% dividend rate and may be redeemed by the Company at its option on and after June 14, 2026. The Series C Preferred Stock issuance and Warrants related to the Series B Preferred Stock, are described in Note 12.
Recently Issued Accounting Pronouncements
Recently Issued Accounting Pronouncements
In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("ASU 2020-04"). ASU 2020-04 provides optional expedients and exceptions to GAAP requirements for modifications to debt agreements, leases, derivatives, and other contracts, related to the market transition from LIBOR, and certain other floating rate benchmark indices, or collectively, IBORs, to alternative reference rates. ASU 2020-04 generally considers contract modifications related to reference rate reform to be an event that does not require contract remeasurement at the modification date nor a reassessment of a previous accounting determination. In January 2021, the FASB clarified the scope of that guidance with the issuance of ASU 2021-01, “Reference Rate Reform: Scope.” This ASU provides optional guidance for a limited period to ease the burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. This would apply to companies meeting certain criteria that have contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. This standard is effective for the Company immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022.
The Company continues to evaluate the documentation and control processes associated with its assets and liabilities to manage the transition from LIBOR to an alternative rate endorsed by the Alternative Reference Rates Committee of the Federal Reserve System, and continues to utilize required resources to revise its control and risk management systems to ensure there is no disruption to our day-to-day operations from the transition as it occurs. The Company will continue to employ prudent risk management as it relates to the potential financial, operational and legal risks associated with the expected cessation of LIBOR, and to ensure that its assets and liabilities generally remain match-indexed following this event. For the three and six months ended June 30, 2022, the Company has not elected to apply the temporary optional expedients and exceptions and will be reevaluating the application each quarter.
Recently Adopted Accounting Pronouncements
In August 2020, the FASB issued ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815 – 40) (“ASU 2020-06”). ASU 2020-06 simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. The ASU is part of the FASB’s simplification initiative, which aims to reduce unnecessary complexity in GAAP. The ASU’s amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. The Company's adoption of ASU 2020-06 on January 1, 2022 did not have a material impact on the Company's consolidated financial statements.
In April 2021, the FASB issued ASU 2021-04, which included Topic 260 “Earnings Per Share”. This guidance clarifies and reduces diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options due to a lack of explicit guidance in the FASB Codification. The ASU 2021-04 is effective for all entities for fiscal years beginning after December 15, 2021. Early adoption was permitted. The Company's adoption of ASU 2021-04 on January 1, 2022 did not have a material impact on the Company's consolidated financial statements.
In March 2022, the FASB issued ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The amendments in this ASU eliminate the accounting guidance for TDRs by creditors in Subtopic 310-40, Receivables—Troubled Debt Restructurings by Creditors, while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Additionally, for public business entities, the amendments in this ASU require that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost. The ASU’s amendments are effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years and early adoption is permitted. The Company's adoption of ASU 2022-02 on January 1, 2022 did not have a material impact on the Company's consolidated financial statements.
v3.22.2
Loans Held for Investment and the Allowance for Credit Losses (Tables)
 6 Months Ended
Jun. 30, 2022
Loans and Leases Receivable Disclosure [Abstract]  
Schedule of Overall Statistics for Loan Held for Investment Portfolio
The following table details overall statistics for the Company’s loans held for investment portfolio (dollars in thousands):
June 30, 2022December 31, 2021
Balance sheet portfolio
Total loan exposure(1)
Balance sheet portfolio
Total loan exposure(1)
Number of loans73746970
Floating rate loans100.0 %100.0 %100.0 %100.0 %
Total loan commitment$5,186,472$5,318,472$5,411,944$5,543,944
Unpaid principal balance(2)
$4,710,161$4,842,161$4,919,343$5,051,343
Unfunded loan commitments(3)
$470,869$470,869$487,773$487,773
Amortized cost$4,701,410$4,701,410$4,909,202$4,909,202
Weighted average credit spread3.4 %3.5 %3.4 %3.4 %
Weighted average all-in yield(4)
5.6 %5.6 %4.8 %4.8 %
Weighted average term to extended maturity (in years)(5)
2.72.82.82.8
_______________________
(1)In certain instances, the Company creates structural leverage through the co-origination or non-recourse syndication of a senior loan interest to a third-party. In either case, the senior mortgage loan (i.e., the non-consolidated senior interest) is not included on the Company’s balance sheet. When the Company creates structural leverage through the co-origination or non-recourse syndication of a senior loan interest to a third-party, the Company retains on its balance sheet a mezzanine loan. Total loan exposure encompasses the entire loan portfolio the Company originated, acquired and financed. As of June 30, 2022 and December 31, 2021, the Company had outstanding one non-consolidated senior interest of $132.0 million.
(2)Unpaid principal balance includes PIK interest of $2.4 million and $3.0 million as of June 30, 2022 and December 31, 2021, respectively.
(3)Unfunded loan commitments may be funded over the term of each loan, subject in certain cases to an expiration date or a force-funding date, primarily to finance property improvements or lease-related expenditures by the Company’s borrowers, to finance operating deficits during renovation and lease-up, and in limited instances to finance construction.
(4)As of June 30, 2022, all of the Company’s loans were floating rate. Loans originated by the Company before December 31, 2021 are indexed to LIBOR, while loans originated after January 1, 2022 are indexed to Term SOFR. As of June 30, 2022, based on the total loan commitments of the Company’s loan portfolio, 11.8% (or $0.6 billion) of the Company’s loans were subject to Term SOFR and 88.2% (or $4.6 billion) were subject to LIBOR as the benchmark interest rate. In addition to credit spread, all-in yield includes the amortization of deferred origination fees, purchase price premium and discount if any, loan origination costs and accrual of both extension and exit fees. All-in yield for the total portfolio assumes the applicable floating benchmark interest rate as of June 30, 2022 for weighted average calculations.
(5)Extended maturity assumes all extension options are exercised by the borrower; provided, however, that the Company’s loans may be repaid prior to such date. As of June 30, 2022, based on the unpaid principal balance of the Company’s total loan exposure, 43.3% of the Company’s loans were subject to yield maintenance or other prepayment restrictions and 56.7% were open to repayment by the borrower without penalty.
Schedule of Loans Held for Investment Portfolio by Loan Seniority
The following tables present an overview of the Company’s loans held for investment portfolio by loan seniority (dollars in thousands):
June 30, 2022
Loans held for investment, netOutstanding principalUnamortized premium (discount) and
loan origination fees, net 		Amortized cost
Senior loans$4,675,161 $(8,751)$4,666,410 
Subordinated and mezzanine loans35,000 — 35,000 
Total$4,710,161 $(8,751)$4,701,410 
Allowance for credit losses(84,156)
Loans held for investment, net$4,617,254 
December 31, 2021
Loans held for investment, netOutstanding principalUnamortized premium (discount) and
loan origination fees, net 		Amortized cost
Senior loans$4,884,343 $(10,101)$4,874,242 
Subordinated and mezzanine loans35,000 (40)34,960 
Total$4,919,343 $(10,141)$4,909,202 
Allowance for credit losses(41,999)
Loans held for investment, net$4,867,203 
Summary of Loans Held for Investment Portfolio Activity
For the six months ended June 30, 2022, the Company’s loans held for investment portfolio activity was as follows (dollars in thousands):
Carrying value
Balance as of January 1, 2022$4,867,203 
Additions during the period:
Loans originated535,053 
Additional fundings58,558 
Amortization of origination fees3,627 
Deductions during the period:
Collection of principal(804,417)
Collection of accrued PIK interest(613)
(Increase) of allowance for credit losses(42,157)
Balance as of June 30, 2022
$4,617,254 
Summary of Amortized Cost by Origination Year Grouped by Risk Rating for Loans Held for Investment Portfolio
The following tables present the Company's loans held for investment portfolio on an amortized cost basis by origination year, grouped by risk rating (dollars in thousands):
June 30, 2022
Amortized cost by origination year
20222021202020192018PriorTotal
Senior loans by internal risk ratings:
1$— $— $— $— $— $— $— 
2— 33,680 — 61,998 — 253,950 349,628 
3539,935 1,576,195 98,408 778,708 264,678 12,032 3,269,956 
4— — 78,269 497,742 251,307 140,776 968,094 
5— — — — 78,732 — 78,732 
Total senior loans$539,935 $1,609,875 $176,677 $1,338,448 $594,717 $406,758 $4,666,410 
Subordinated and mezzanine loans by internal risk ratings:
1$— $— $— $— $— $— $— 
2— — — — — — — 
3— — — 35,000 — — 35,000 
4— — — — — — — 
5— — — — — — — 
Total subordinated and mezzanine loans— — — 35,000 — — 35,000 
Total$539,935 $1,609,875 $176,677 $1,373,448 $594,717 $406,758 $4,701,410 
December 31, 2021
Amortized cost by origination year
2021 2020 2019 2018 2017 Prior Total
Senior loans by internal risk ratings:
1$— $— $— $— $— $— $— 
233,621 — 82,461 242,614 168,355 — 527,051 
31,600,659 95,858 1,400,670 407,509 169,934 17,163 3,691,793 
4— 78,013 154,093 183,750 216,542 — 632,398 
5— — — 23,000 — — 23,000 
Total senior loans$1,634,280 $173,871 $1,637,224 $856,873 $554,831 $17,163 $4,874,242 
Subordinated and mezzanine loans by internal risk ratings:
1$— $— $— $— $— $— $— 
2— — — — — — — 
3— — 34,960 — — — 34,960 
4— — — — — — — 
5— — — — — — — 
Total subordinated and mezzanine loans— — 34,960 — — — 34,960 
Total$1,634,280 $173,871 $1,672,184 $856,873 $554,831 $17,163 $4,909,202 
Summary of Amortized Cost and Results of Internal Risk Rating Review Performed for Loans Held for Investment Portfolio
The table below summarizes the Company’s loans held for investment portfolio on an amortized cost basis, by the results of its internal risk rating review process performed (dollars in thousands):
Risk ratingJune 30, 2022December 31, 2021
1$— $— 
2349,628 527,051 
33,304,956 3,726,753 
4968,094 632,398 
578,732 23,000 
Total$4,701,410 $4,909,202 
Allowance for credit losses(84,156)(41,999)
Carrying value$4,617,254 $4,867,203 
Weighted average risk rating(1)
3.2 3.0 
________________________________
(1)Weighted average risk rating calculated based on the amortized cost balance at period end.
Summary of Activity in Allowance for Credit Losses for Loans Held for Investment Portfolio by Class of Financing Receivable
The following tables present activity in the allowance for credit losses for loans by finance receivable class (dollars in thousands):
For the Three Months Ended June 30, 2022
Senior loansSubordinated and
mezzanine loans		Total
Allowance for credit losses for loans held for investment:
Beginning balance at April 1, 2022
$45,940 $367 $46,307 
Allowance for (reversal of) credit losses, net37,545 304 37,849 
Subtotal83,485 671 84,156 
Allowance for credit losses on unfunded loan commitments:
Beginning balance at April 1, 2022
4,786 — 4,786 
Allowance for (reversal of) credit losses, net4,441 — 4,441 
Subtotal9,227 — 9,227 
Total allowance for credit losses$92,712 $671 $93,383 
For the Three Months Ended June 30, 2021
Senior loansSubordinated and
mezzanine loans		Total
Allowance for credit losses for loans held for investment:
Beginning balance at April 1, 2021
$55,155 $1,486 $56,641 
Allowance for (reversal of) credit losses, net(3,724)(976)(4,700)
Subtotal51,431 510 51,941 
Allowance for credit losses on unfunded loan commitments:
Beginning balance at April 1, 2021
2,084 65 2,149 
Allowance for (reversal of) credit losses, net1,276 (54)1,222 
Subtotal3,360 11 3,371 
Total allowance for credit losses$54,791 $521 $55,312 
For the Six Months Ended June 30, 2022
Senior loansSubordinated and
mezzanine loans 		Total
Allowance for credit losses for loans held for investment:
Beginning balance at January 1, 2022$41,193 $806 $41,999 
Allowance for (reversal of) credit losses, net42,292 (135)42,157 
Subtotal83,485 671 84,156 
Allowance for credit losses on unfunded loan commitments:
Beginning balance at January 1, 20224,210 — 4,210 
Allowance for (reversal of) credit losses, net5,017 — 5,017 
Subtotal9,227 — 9,227 
Total allowance for credit losses$92,712 $671 $93,383 
For the Six Months Ended June 30, 2021
Senior loans Subordinated and
mezzanine loans 		Total
Allowance for credit losses for loans held for investment:
Beginning balance at January 1, 2021$58,210 $1,730 $59,940 
Allowance for (reversal of) credit losses, net(6,779)(1,220)(7,999)
Subtotal51,431 510 51,941 
Allowance for credit losses on unfunded loan commitments:
Beginning balance at January 1, 20212,756 132 2,888 
Allowance for (reversal of) credit losses, net604 (121)483 
Subtotal3,360 11 3,371 
Total allowance for credit losses$54,791 $521 $55,312 
Schedule of Paid-in-Kind Interest
The following table presents the accrued PIK interest activity for the six months ended June 30, 2022 for the Company’s loans held for investment portfolio (dollars in thousands):
June 30, 2022
Balance as of January 1, 2022
$3,028 
Accrued PIK interest— 
Repayments of accrued PIK interest(313)
Balance as of March 31, 2022
$2,715 
Accrued PIK interest— 
Repayments of accrued PIK interest(300)
Write-off of accrued PIK interest— 
Balance as of June 30, 2022
$2,415 
Summary of Aging Analysis for Loans Held for Investment Portfolio by Class of Loans
The following table presents an aging analysis for the Company’s loans held for investment portfolio, by class of loans on amortized cost basis (dollars in thousands):
Days Outstanding as of June 30, 2022
CurrentDays: 30-59Days: 60-89 Days: 90 or moreTotal loans past dueTotal loans
Loans receivable:
Senior loans$4,643,410 $— $— $23,000 $23,000 $4,666,410 
Subordinated and mezzanine loans35,000 — — — — 35,000 
Total$4,678,410 $— $— $23,000 $23,000 $4,701,410 
 
Days Outstanding as of December 31, 2021
Current Days: 30-59Days: 60-89Days: 90 or moreTotal loans past dueTotal loans
Loans receivable:
Senior loans$4,851,242 $— $— $23,000 $23,000 $4,874,242 
Subordinated and mezzanine loans34,960 — — — — 34,960 
Total$4,886,202 $— $— $23,000 $23,000 $4,909,202 
v3.22.2
Variable Interest Entities and Collateralized Loan Obligations (Tables)
 6 Months Ended
Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Summary of Variable Interest Entities Assets and Liabilities
The following table outlines the total assets and liabilities within the Sub-REIT structure (dollars in thousands):
June 30, 2022December 31, 2021
Assets
Cash and cash equivalents$25,967 $28,167 
Collateralized loan obligation proceeds held at trustee(1)
130,908 204 
Accounts receivable from servicer/trustee(2)
259,796 150 
Accrued interest receivable5,806 6,765 
Loans held for investment, net(3)
2,808,158 3,138,603 
Total assets$3,230,635 $3,173,889 
Liabilities
Accrued interest payable$2,687 $1,823 
Accrued expenses310 1,490 
Collateralized loan obligations, net(4)
2,639,314 2,545,691 
Payable to affiliates6,731 3,830 
Total liabilities$2,649,042 $2,552,834 
________________________________
(1)Includes $59.2 million and $71.7 million of cash available to acquire eligible assets related to TRTX 2022-FL5 and TRTX 2021-FL4, respectively, as of June 30, 2022. Includes $0.2 million of cash available for acquire eligible assets related to TRTX 2021-FL4 as of December 31, 2021.
(2)Includes $83.6 million, $150.5 million, and $25.5 million of cash proceeds related to loan repayments held by the Company's loan servicer as of June 30, 2022, which are remitted to the Company during the subsequent remittance cycle related to TRTX 2022-FL5, TRTX 2021-FL4 and TRTX 2019-FL3, respectively.
(3)Includes one loan held for investment with an unpaid principal balance of $1.6 million and $0.1 million as of June 30, 2022 and December 31, 2021, respectively.
(4)Net of $12.6 million and $10.3 million of unamortized deferred financing costs as of June 30, 2022 and December 31, 2021, respectively.
Schedule of Borrowings and Corresponding Collateral
The following tables detail the loan collateral and borrowings under the Company's CRE CLOs (dollars in thousands):
June 30, 2022
CRE CLOsCountBenchmark interest rateOutstanding principal balance
Carrying value(1)
Wtd. avg. spread(2)
Wtd. avg. maturity(3)
TRTX 2019-FL3
Collateral loan investment assets15LIBOR$898,090$861,5963.15 %1.7
Financing provided1
Term SOFR(4)
707,389705,8841.57 %12.3
TRTX 2021-FL4
Collateral loan investment assets21
LIBOR(5)
1,250,0001,021,0793.06 %2.9
Financing provided1LIBOR1,037,5001,032,1091.60 %15.7
TRTX 2022-FL5
Collateral loan investment assets17
LIBOR(6)
1,075,000923,8423.28 %3.3
Financing provided1Compounded SOFR907,031901,3212.02 %16.6
Total
Collateral loan investment assets(7)
53LIBOR$3,223,090$2,806,5173.16 %2.7 years
Financing provided(8)
3Term SOFR/LIBOR/Compounded SOFR$2,651,920$2,639,3141.74 %15.1 years
________________________________
(1)Includes loan amounts held in the Company's CRE CLO investment structures and does not include other loans held for investment, net of $1.6 million held within the Sub-REIT structure.
(2)Weighted average spread excludes the amortization of loan fees and deferred financing costs.
(3)Loan term represents weighted-average final maturity, assuming extension options are exercised by the borrower. Repayments of CRE CLO notes are dependent on timing of related loan repayments post-reinvestment period. The term of the CRE CLO notes represents the rated final distribution date.
(4)On October 1, 2021, the benchmark index interest rate for borrowings under TRTX 2019-FL3 was converted from Compounded SOFR to Term SOFR by the designated transaction representative under the FL3 indenture. The Company has the right to convert the mortgage assets benchmark interest rate from LIBOR to Term SOFR to eliminate the difference between benchmark rates used for the assets and liabilities of the CRE CLO.
(5)As of June 30, 2022, the TRTX 2022-FL4 mortgage assets are indexed to LIBOR, with the exception of one $27.7 million participation interest which is indexed to Term SOFR.
(6)As of June 30, 2022, the TRTX 2022-FL5 mortgage assets are indexed to LIBOR, with the exception of one $16.8 million participation interest which is indexed to Term SOFR. The Company has the right to convert the mortgage assets benchmark interest rate from LIBOR to Compounded SOFR to eliminate the difference between benchmark rates used for the assets and liabilities of the CRE CLO.
(7)Collateral loan investment assets of FL3, FL4 and FL5 represent 19.1%, 26.5% and 22.8% of the aggregate unpaid principal balance of the Company's loans held for investment portfolio as of June 30, 2022.
(8)During the three months ended June 30, 2022, the Company recognized interest expense of $18.2 million, which includes $1.9 million of deferred financing cost amortization and is reflected within the Company's consolidated statements of income and comprehensive income. During the six months ended June 30, 2022, the Company recognized interest expense of $32.5 million, which includes $4.1 million of deferred financing cost amortization and is reflected within the Company's consolidated statements of income and comprehensive income.
December 31, 2021
CRE CLOsCountBenchmark interest rateOutstanding principal balanceCarrying value
Wtd. avg. spread(1)
Wtd. avg. maturity(2)
TRTX 2018-FL2
Collateral loan investment assets17LIBOR$805,685$795,8153.39 %2.0
Financing provided1LIBOR600,001599,3941.56 %15.9
TRTX 2019-FL3
Collateral loan investment assets19LIBOR1,109,2291,100,4973.19 %2.2
Financing provided1
Term SOFR(3)
918,487915,4511.48 %12.8
TRTX 2021-FL4
Collateral loan investment assets24LIBOR1,249,7961,242,2913.19 %3.1
Financing provided1LIBOR1,037,5001,030,8461.60 %16.2
Total
Collateral loan investment assets(4)
60LIBOR$3,164,710$3,138,6033.24 %2.7 years
Financing provided(5)
3Term SOFR/LIBOR$2,555,988$2,545,6911.55 %15.2 years
________________________________
(1)Weighted average spread excludes the amortization of loan fees and deferred financing costs.
(2)Loan term represents weighted-average final maturity, assuming extension options are exercised by the borrower. Repayments of CRE CLO notes are dependent on timing of related loan repayments post-reinvestment period. The term of the CRE CLO notes represents the rated final distribution date.
(3)On October 1, 2021, the benchmark index interest rate for borrowings under TRTX 2019-FL3 was converted from Compounded SOFR to Term SOFR by the designated transaction representative under the FL3 indenture. The Company has the right to convert the mortgage assets benchmark interest rate from LIBOR to Term SOFR to eliminate the difference between benchmark rates used for the assets and liabilities of the CRE CLO.
(4)Collateral loan investment assets of FL2, FL3, and FL4 represent 16.4%, 22.5%, and 25.4% of the aggregate unpaid principal balance of the Company's loans held for investment portfolio as of December 31, 2021.
(5)During the three months ended June 30, 2021, the Company recognized interest expense of $13.5 million, which includes $1.7 million of deferred financing cost amortization and is reflected within the Company's consolidated statements of income and comprehensive income. During the six months ended June 30, 2021, the Company recognized interest expense of $22.0 million, which includes $2.9 million of deferred financing cost amortization and is reflected within the Company's consolidated statements of income and comprehensive income.
The following table summarizes the Company's investment portfolio financing (dollars in thousands):
Outstanding principal balance
June 30, 2022December 31, 2021
Collateralized loan obligations(1)
$2,651,920 $2,555,988 
Secured credit agreements1,089,655 1,166,211 
Secured revolving credit facility52,065 — 
Asset-specific financing arrangements124,202 — 
Total$3,917,842 $3,722,199 
________________________________
(1)See Note 5 for additional information regarding the Company's collateralized loan obligations.
The following table details the Company's asset-specific financing arrangements (dollars in thousands):
June 30, 2022
FinancingCollateral
Asset-specific financingCommitment amountOutstanding principal balance
Carrying
value(1)
Wtd. avg.
spread(2)
Wtd. avg.
term(3)
Outstanding principal balanceAmortized CostWtd. avg.
term
Axos Bank$89,802 $89,802 $89,351 4.4 %1.8$208,603 $204,519 0.2
BMO Facility200,000 34,400 34,228 1.5 %4.743,000 42,588 4.7
Total / weighted average$289,802 $124,202 $123,579 3.6 %2.6 years$251,603 $247,107 1.4 years
_______________________
(1)Net of $0.6 million unamortized deferred financing costs.
(2)Collateral loan assets and the financing provided are indexed to Term SOFR.
(3)Term under Axos Bank is based on the extended maturity date for the specific arrangement. Borrowings under the BMO Facility are term-matched to the corresponding collateral loan asset. The weighted-average term assumes all extension options of the collateral loan asset are exercised by the borrower.
v3.22.2
Investment Portfolio Financing (Tables)
 6 Months Ended
Jun. 30, 2022
Debt Disclosure [Abstract]  
Schedule of Debt
The following tables detail the loan collateral and borrowings under the Company's CRE CLOs (dollars in thousands):
June 30, 2022
CRE CLOsCountBenchmark interest rateOutstanding principal balance
Carrying value(1)
Wtd. avg. spread(2)
Wtd. avg. maturity(3)
TRTX 2019-FL3
Collateral loan investment assets15LIBOR$898,090$861,5963.15 %1.7
Financing provided1
Term SOFR(4)
707,389705,8841.57 %12.3
TRTX 2021-FL4
Collateral loan investment assets21
LIBOR(5)
1,250,0001,021,0793.06 %2.9
Financing provided1LIBOR1,037,5001,032,1091.60 %15.7
TRTX 2022-FL5
Collateral loan investment assets17
LIBOR(6)
1,075,000923,8423.28 %3.3
Financing provided1Compounded SOFR907,031901,3212.02 %16.6
Total
Collateral loan investment assets(7)
53LIBOR$3,223,090$2,806,5173.16 %2.7 years
Financing provided(8)
3Term SOFR/LIBOR/Compounded SOFR$2,651,920$2,639,3141.74 %15.1 years
________________________________
(1)Includes loan amounts held in the Company's CRE CLO investment structures and does not include other loans held for investment, net of $1.6 million held within the Sub-REIT structure.
(2)Weighted average spread excludes the amortization of loan fees and deferred financing costs.
(3)Loan term represents weighted-average final maturity, assuming extension options are exercised by the borrower. Repayments of CRE CLO notes are dependent on timing of related loan repayments post-reinvestment period. The term of the CRE CLO notes represents the rated final distribution date.
(4)On October 1, 2021, the benchmark index interest rate for borrowings under TRTX 2019-FL3 was converted from Compounded SOFR to Term SOFR by the designated transaction representative under the FL3 indenture. The Company has the right to convert the mortgage assets benchmark interest rate from LIBOR to Term SOFR to eliminate the difference between benchmark rates used for the assets and liabilities of the CRE CLO.
(5)As of June 30, 2022, the TRTX 2022-FL4 mortgage assets are indexed to LIBOR, with the exception of one $27.7 million participation interest which is indexed to Term SOFR.
(6)As of June 30, 2022, the TRTX 2022-FL5 mortgage assets are indexed to LIBOR, with the exception of one $16.8 million participation interest which is indexed to Term SOFR. The Company has the right to convert the mortgage assets benchmark interest rate from LIBOR to Compounded SOFR to eliminate the difference between benchmark rates used for the assets and liabilities of the CRE CLO.
(7)Collateral loan investment assets of FL3, FL4 and FL5 represent 19.1%, 26.5% and 22.8% of the aggregate unpaid principal balance of the Company's loans held for investment portfolio as of June 30, 2022.
(8)During the three months ended June 30, 2022, the Company recognized interest expense of $18.2 million, which includes $1.9 million of deferred financing cost amortization and is reflected within the Company's consolidated statements of income and comprehensive income. During the six months ended June 30, 2022, the Company recognized interest expense of $32.5 million, which includes $4.1 million of deferred financing cost amortization and is reflected within the Company's consolidated statements of income and comprehensive income.
December 31, 2021
CRE CLOsCountBenchmark interest rateOutstanding principal balanceCarrying value
Wtd. avg. spread(1)
Wtd. avg. maturity(2)
TRTX 2018-FL2
Collateral loan investment assets17LIBOR$805,685$795,8153.39 %2.0
Financing provided1LIBOR600,001599,3941.56 %15.9
TRTX 2019-FL3
Collateral loan investment assets19LIBOR1,109,2291,100,4973.19 %2.2
Financing provided1
Term SOFR(3)
918,487915,4511.48 %12.8
TRTX 2021-FL4
Collateral loan investment assets24LIBOR1,249,7961,242,2913.19 %3.1
Financing provided1LIBOR1,037,5001,030,8461.60 %16.2
Total
Collateral loan investment assets(4)
60LIBOR$3,164,710$3,138,6033.24 %2.7 years
Financing provided(5)
3Term SOFR/LIBOR$2,555,988$2,545,6911.55 %15.2 years
________________________________
(1)Weighted average spread excludes the amortization of loan fees and deferred financing costs.
(2)Loan term represents weighted-average final maturity, assuming extension options are exercised by the borrower. Repayments of CRE CLO notes are dependent on timing of related loan repayments post-reinvestment period. The term of the CRE CLO notes represents the rated final distribution date.
(3)On October 1, 2021, the benchmark index interest rate for borrowings under TRTX 2019-FL3 was converted from Compounded SOFR to Term SOFR by the designated transaction representative under the FL3 indenture. The Company has the right to convert the mortgage assets benchmark interest rate from LIBOR to Term SOFR to eliminate the difference between benchmark rates used for the assets and liabilities of the CRE CLO.
(4)Collateral loan investment assets of FL2, FL3, and FL4 represent 16.4%, 22.5%, and 25.4% of the aggregate unpaid principal balance of the Company's loans held for investment portfolio as of December 31, 2021.
(5)During the three months ended June 30, 2021, the Company recognized interest expense of $13.5 million, which includes $1.7 million of deferred financing cost amortization and is reflected within the Company's consolidated statements of income and comprehensive income. During the six months ended June 30, 2021, the Company recognized interest expense of $22.0 million, which includes $2.9 million of deferred financing cost amortization and is reflected within the Company's consolidated statements of income and comprehensive income.
The following table summarizes the Company's investment portfolio financing (dollars in thousands):
Outstanding principal balance
June 30, 2022December 31, 2021
Collateralized loan obligations(1)
$2,651,920 $2,555,988 
Secured credit agreements1,089,655 1,166,211 
Secured revolving credit facility52,065 — 
Asset-specific financing arrangements124,202 — 
Total$3,917,842 $3,722,199 
________________________________
(1)See Note 5 for additional information regarding the Company's collateralized loan obligations.
The following table details the Company's asset-specific financing arrangements (dollars in thousands):
June 30, 2022
FinancingCollateral
Asset-specific financingCommitment amountOutstanding principal balance
Carrying
value(1)
Wtd. avg.
spread(2)
Wtd. avg.
term(3)
Outstanding principal balanceAmortized CostWtd. avg.
term
Axos Bank$89,802 $89,802 $89,351 4.4 %1.8$208,603 $204,519 0.2
BMO Facility200,000 34,400 34,228 1.5 %4.743,000 42,588 4.7
Total / weighted average$289,802 $124,202 $123,579 3.6 %2.6 years$251,603 $247,107 1.4 years
_______________________
(1)Net of $0.6 million unamortized deferred financing costs.
(2)Collateral loan assets and the financing provided are indexed to Term SOFR.
(3)Term under Axos Bank is based on the extended maturity date for the specific arrangement. Borrowings under the BMO Facility are term-matched to the corresponding collateral loan asset. The weighted-average term assumes all extension options of the collateral loan asset are exercised by the borrower.
Schedule of Information Related to Secured Credit Agreements Except as otherwise noted, all agreements are on a partial (25%) recourse basis (dollars in thousands):
June 30, 2022
Secured credit agreements(1)
Initial
maturity date		Extended
maturity date		Index
rate		Weighted average
credit spread 		Interest
rate 		Commitment
amount		Maximum
current availability		Balance
outstanding		Principal balance
of collateral		Amortized cost
of collateral
Goldman Sachs08/19/2208/19/241 Month BR1.8 %3.5 %$500,000 $94,044 $405,956 $540,261 $539,727 
Wells Fargo(2)
04/18/2504/18/251 Month BR1.6 %3.3 %500,000 118,001 381,999 515,891 511,618 
Barclays(3)
08/13/2508/13/261 Month BR1.6 %3.3 %500,000 399,499 100,501 134,408 133,661 
Morgan Stanley(4)
05/04/2305/04/231 Month BR2.3 %4.0 %500,000 446,975 53,025 75,661 75,599 
JP Morgan10/30/2310/30/251 Month BR1.7 %3.4 %400,000 275,372 124,628 178,701 178,326 
Bank of America09/29/2209/29/221 Month BR— %— %200,000 200,000 — — — 
Institutional financing10/30/2310/30/251 Month BR4.5 %6.3 %249,546 226,000 23,546 43,092 43,092 
Totals$2,849,546 $1,759,891 $1,089,655 $1,488,014 $1,482,023 
________________________________
(1)Borrowings under secured credit agreements with a guarantee for 25% recourse from Holdco. Each secured credit agreement contains defined mark-to-market provisions that permit the lenders to issue margin calls based on credit marks. Under the JP Morgan secured credit agreement, the Company is also subject to spread marks. Index rate is the underlying benchmark interest rate ("BR"), currently LIBOR or Term SOFR, for the Company's borrowings on each secured credit agreement.
(2)On February 9, 2022 the secured credit agreement’s initial maturity was extended to April 18, 2025.
(3)On April 11, 2022 the secured credit agreement's initial maturity was extended to August 13, 2025 and the Company reduced the total commitment to $500.0 million from $750.0 million. The secured credit agreement includes a $250.0 million accordion feature subject to the lender's approval.
(4)On April 29, 2022 the secured credit agreement's initial maturity was extended to May 4, 2023.
December 31, 2021
Secured credit agreements(1)
Initial
maturity date		Extended
maturity date		Index
rate		Weighted average
credit spread 		Interest
rate 		Commitment
amount		Maximum
current availability		Balance
outstanding		Principal balance
of collateral		Amortized cost
of collateral
Goldman Sachs08/19/2208/19/241 Month
LIBOR		2.0 %2.1 %$250,000 $153,680 $96,320 $158,177 $157,550 
Wells Fargo(2)
04/18/2204/18/241 Month
LIBOR		1.6 %1.7 %750,000 179,784 570,216 779,791 773,868 
Barclays08/13/2208/13/231 Month
LIBOR		1.5 %1.7 %750,000 726,686 23,314 41,294 41,058 
Morgan Stanley05/04/2205/04/231 Month
LIBOR		2.0 %2.1 %500,000 319,269 180,731 255,125 254,559 
JP Morgan10/30/2310/30/251 Month
LIBOR		1.7 %1.8 %400,000 290,523 109,477 200,148 199,246 
US Bank07/09/2207/09/241 Month
LIBOR		1.4 %1.7 %44,730 10,748 33,982 59,060 59,060 
Bank of America(3)
09/29/2209/29/221 Month
LIBOR		1.8 %1.9 %128,625 — 128,625 183,750 183,750 
Institutional financing10/30/2310/30/251 Month
LIBOR		4.5 %4.8 %249,546 226,000 23,546 42,390 42,366 
Totals$3,072,901 $1,906,690 $1,166,211 $1,719,735 $1,711,457 
________________________________
(1)Borrowings under secured credit agreements with a guarantee for 25% recourse from Holdco. Each secured credit agreement contains defined mark-to-market provisions that permit the lenders to issue margin calls based on credit marks. Under the JP Morgan secured credit agreement, the Company is also subject to spread marks.
(2)On February 9, 2022 the secured credit agreement’s initial maturity was extended to April 18, 2025.
(3)Effective February 1, 2022 for the sole loan pledged to the secured credit agreement, the Company amended its financing arrangement to reduce its borrowing by $9.4 million and extend its term on a non-mark-to-market basis through March 31, 2022, with an option to further extend its maturity through April 15, 2022 in exchange for a further reduction in borrowings of $9.4 million.
Summary of Secured Credit Agreements Secured by Mortgage Loan Investments, CRE Debt Securities and Counterparty Concentration Risks
The following table summarizes certain characteristics of the Company’s secured credit agreements secured by mortgage loan investments, including counterparty concentration risks (dollars in thousands):
June 30, 2022
Secured credit agreementsCommitment
amount		UPB of
collateral
Amortized cost
of collateral(1)
Amount
payable(2)
Net counterparty exposure(3)
Percent of
stockholders' equity 		Days to
extended maturity
Goldman Sachs Bank$500,000 $540,261 $542,450 $406,732 $135,718 9.4 %781
Wells Fargo500,000 515,891 514,144 382,320 131,824 9.1 %1023
Barclays500,000 134,408 133,922 100,648 33,274 2.3 %1505
Morgan Stanley Bank500,000 75,661 75,736 53,404 22,332 1.5 %308
JP Morgan Chase Bank649,546 221,793 222,590 149,001 73,589 5.1 %1218
Bank of America200,000 — — — — — %91
Total / weighted average$2,849,546 $1,488,014 $1,488,842 $1,092,105 $396,737 969
_______________________
(1)Loan amounts include interest receivable of $6.8 million and are net of premium, discount and origination fees of $6.0 million.
(2)Loan amounts include interest payable of $2.5 million and do not reflect unamortized deferred financing fees of $2.2 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.
The following table summarizes certain characteristics of the Company’s secured credit agreements secured by mortgage loan investments, including counterparty concentration risks (dollars in thousands):
 December 31, 2021
Secured credit agreementsCommitment
amount		UPB of
collateral
Amortized cost
of collateral(1)
Amount
payable(2)
Net counterparty exposure(3)
Percent of
stockholders' equity		Days to
extended maturity
Goldman Sachs Bank$250,000 $158,177 $159,269 $96,389 $62,880 4.3 %962
Wells Fargo750,000 779,791 776,196 570,839 205,357 14.0 %839
Barclays750,000 41,294 41,019 23,330 17,689 1.2 %590
Morgan Stanley Bank500,000 255,125 255,858 180,891 74,967 5.1 %489
JP Morgan Chase Bank649,546 242,538 243,181 133,191 109,990 7.5 %1399
US Bank44,730 59,060 59,435 34,035 25,400 1.7 %921
Bank of America128,625 183,750 184,531 128,648 55,883 3.8 %272
Total / weighted average$3,072,901 $1,719,735 $1,719,489 $1,167,323 $552,165  794
_______________________
(1)Loan amounts include interest receivable of $8.0 million and are net of premium, discount and origination fees of $8.8 million.
(2)Loan amounts include interest payable of $1.1 million and do not reflect unamortized deferred financing fees of $4.0 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.
v3.22.2
Schedule of Maturities (Tables)
 6 Months Ended
Jun. 30, 2022
Debt Disclosure [Abstract]  
Schedule of Future Principal Payments
As of June 30, 2022 future principal payments for the following five years and thereafter are as follows (dollars in thousands):
Total indebtedness
Collateralized loan obligations(1)
Secured credit agreements(2)
Secured revolving credit facility(2)
Asset-specific financing arrangements(3)
2022$465,421 $465,421 $— $— $— 
2023560,246 359,047 201,199 — — 
2024870,937 375,179 405,956 — 89,802 
2025562,520 27,955 482,500 52,065 — 
2026517,287 517,287 — — — 
Thereafter941,431 907,031 — — 34,400 
Total$3,917,842 $2,651,920 $1,089,655 $52,065 $124,202 
(1)The scheduled maturities for the investment grade bonds issued by the Company's CRE CLOs are based upon the fully extended maturity of the underlying mortgage loan collateral, considering the reinvestment window of each CRE CLO.
(2)The scheduled maturities of the Company's secured credit agreement liabilities is based on the extended maturity date for the specific credit agreement where extension options are at its option, subject to standard default provisions, or the current maturity date of those credit agreements where extension options are subject to counterparty approval.
(3)The scheduled maturities of the Company's asset-specific financing arrangements are based on the extended maturity date for the specific arrangement, or in the case of the BMO Facility, the fully-extended maturity date of the underlying mortgage loan collateral.
v3.22.2
Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2022
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):
June 30, 2022
Fair value
Carrying valueLevel ILevel IILevel III
Financial assets  
Loans held for investment$4,617,254 $— $— $4,644,660 
Financial liabilities
Collateralized loan obligations2,639,314 — — 2,656,671 
Secured credit agreements1,087,419 — — 1,092,568 
Secured revolving credit facility49,997 — — 49,997 
Asset-specific financing arrangements123,579 — — 127,263 
December 31, 2021
Fair value
Carrying valueLevel ILevel IILevel III
Financial assets  
Loans held for investment$4,867,203 $— $— $4,899,666 
Financial liabilities  
Collateralized loan obligations2,545,691 — — 2,558,544 
Secured credit agreements1,162,206 — — 1,169,710 
v3.22.2
Related Party Transactions (Tables)
 6 Months Ended
Jun. 30, 2022
Related Party Transactions [Abstract]  
Summary of Management Fees and Incentive Management Fees Incurred and Paid Pursuant to Management Agreement
The following table details the management fees and incentive management fees incurred and paid pursuant to the Management Agreement (dollars in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Incurred
Management fees$5,856 $5,344 $11,565$10,437
Incentive management fee5,183 — 5,183—
Total management and incentive fees incurred$11,039 $5,344 $16,748 $10,437 
Paid
Management fees$5,709 $5,094 $11,318 $10,452 
Incentive management fee— — — — 
Total management and incentive fees paid$5,709 $5,094 $11,318 $10,452 
v3.22.2
Earnings per Share (Tables)
 6 Months Ended
Jun. 30, 2022
Earnings Per Share [Abstract]  
Schedule of Calculation of Basic and Diluted Earnings per Common Share
The following table sets forth the calculation of basic and diluted earnings per common share based on the weighted-average number of shares of common stock outstanding (dollars in thousands, except share and per share data):
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Net (loss) income$(5,434)$32,391 $18,347 $64,347 
Preferred stock dividends(1)
(3,148)(6,799)(6,296)(12,923)
Participating securities' share in (loss) earnings(226)(148)(423)(294)
Series B preferred stock redemption make-whole payment(2)
— (22,485)— (22,485)
Series B Preferred Stock accretion, including allocated Warrant fair value and transaction costs(3)
— (23,997)— (25,449)
Net (loss) income attributable to common stockholders$(8,808)$(21,038)$11,628 $3,196 
Weighted average common shares outstanding, basic77,188,291 76,899,270 77,186,136 76,897,453 
Incremental shares of common stock issued from the assumed exercise of the Warrants— — 4,049,470 4,433,898 
Weighted average common shares outstanding, diluted77,188,291 76,899,270 81,235,606 81,331,351 
(Loss) earnings per common share, basic(4)
$(0.11)$(0.27)$0.15 $0.04 
(Loss) earnings per common share, diluted(4)
$(0.11)$(0.27)$0.14 $0.04 
_______________________
(1)Includes preferred stock dividends declared and paid for Series A preferred stock, Series C Preferred Stock, and Series B Preferred Stock shares outstanding for the three and six months ended June 30, 2022 and 2021 and undeclared dividends for Series C Preferred Stock shares outstanding of $0.6 million for the three and six months ended June 30, 2021.
(2)Represents the make-whole payment to the holder of the Series B Preferred Stock for an amount equal to the present value of all remaining dividend payments due on such share of Series B Preferred Stock from and after the redemption date (and not including any declared or paid dividends or accrued dividends prior to such redemption date) through the second anniversary of the original issue date, computed in accordance with the terms of the Articles Supplementary. Refer to Note 12 to these consolidated financial statements for details.
(3)Series B Preferred Stock Accretion, including Allocated Warrant Fair Value and Transaction Costs includes amounts recorded as deemed dividends of amortized transaction costs and the write-off of unamortized transactions costs and the unaccreted portion of the allocated Warrant fair value related to the Company’s Series B Preferred Stock. For the three and six months ended June 30, 2021, the write-off of unamortized transaction costs and unaccreted allocated Warrant fair value was $22.5 million.
(4)Basic and diluted (loss) earnings per common share are computed independently based on the weighted-average shares of common stock outstanding. Diluted earnings per common share also includes the impact of participating securities outstanding plus any incremental shares that would be outstanding assuming the exercise of the Warrants. Accordingly, the sum of the quarterly (loss) earnings per common share amounts may not agree to the total for the six months ended June 30, 2022 and 2021.
v3.22.2
Concentration of Credit Risk (Tables)
 6 Months Ended
Jun. 30, 2022
Risks and Uncertainties [Abstract]  
Summary of Loans Held for Investment Portfolio by Property/ Loan Category Type
A summary of the Company’s loans held for investment portfolio by property type based on total loan commitment and current unpaid principal balance (“UPB”) is as follows (dollars in thousands):
June 30, 2022
Property typeLoan commitmentUnfunded commitment
% of loan commitment
Loan UPB
% of loan UPB
Office$1,928,630 $142,168 37.2 %$1,786,462 37.8 %
Multifamily1,865,326 133,194 36.0 1,732,132 36.8 
Hotel493,944 4,000 9.5 492,359 10.5 
Life Science404,600 146,367 7.8 258,233 5.5 
Mixed-Use285,340 15,230 5.5 270,110 5.7 
Industrial113,000 6,167 2.2 106,833 2.3 
Other50,600 21,600 1.0 29,000 0.6 
Retail(1)
33,000 2,143 0.6 23,000 0.5 
Condominium(2)
12,032 — 0.2 12,032 0.3 
Total$5,186,472 $470,869 100.0 %$4,710,161 100.0 %
December 31, 2021
Property typeLoan commitmentUnfunded commitment
% of loan commitment
Loan UPB
% of loan UPB
Office$2,265,187 $178,878 41.9 %$2,086,309 42.4 %
Multifamily1,595,643 121,211 29.5 1,474,731 30.0 
Hotel658,943 4,000 12.2 657,672 13.4 
Life Science494,600 163,860 9.1 330,740 6.7 
Mixed-Use347,408 17,681 6.4 329,728 6.7 
Retail(1)
33,000 2,143 0.6 23,000 0.5 
Condominium(2)
17,163 — 0.3 17,163 0.3 
Total$5,411,944 $487,773 100.0 %$4,919,343 100.0 %
_______________________
(1)For the period ended June 30, 2022 and December 31, 2021, the Company's non-performing retail loan held for investment was in default of its loan agreement and as a result the $2.1 million of outstanding unfunded loan commitments could not be drawn upon by the borrower.
(2)Condominium property type includes a 24% pari passu participation interest in each of four whole mortgage loans related to one project to the same borrower.
A summary of the Company’s loans held for investment portfolio by loan category based on total loan commitment and current UPB is as follows (dollars in thousands):
June 30, 2022
Loan categoryLoan commitmentUnfunded commitment
% of loan commitment
Loan UPB
% of loan UPB
Moderate Transitional$1,735,717 $270,443 33.4 %$1,466,446 31.1 %
Bridge(1)
1,684,247 49,873 32.5 1,627,760 34.6 
Light Transitional1,680,908 128,953 32.4 1,551,955 32.9 
Construction85,600 21,600 1.7 64,000 1.4 
Total$5,186,472 $470,869 100.0 %$4,710,161 100.0 %
December 31, 2021
Loan categoryLoan commitmentUnfunded commitment
% of loan commitment
Loan UPB
% of loan UPB
Moderate Transitional$1,950,739 $294,693 36.1 %$1,657,218 33.7 %
Light Transitional1,779,310 145,621 32.9 1,633,689 33.2 
Bridge(1)
1,646,895 47,459 30.4 1,593,436 32.4 
Construction35,000 — 0.6 35,000 0.7 
Total$5,411,944 $487,773 100.0 %$4,919,343 100.0 %
_______________________
(1)For the period ended June 30, 2022 and December 31, 2021, the Company's unfunded loan commitments included $2.1 million of outstanding unfunded loan commitments that could not be drawn upon by the borrower related to a non-performing retail loan held for investment that was in default.
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 is as follows (dollars in thousands):
June 30, 2022
Geographic regionLoan commitmentUnfunded commitment
% of loan commitment
Loan UPB
% of loan UPB
East$1,942,462 $71,429 37.5 %$1,872,204 39.7 %
West(1)
1,510,326 249,692 29.1 1,253,479 26.6 
South1,290,922 106,851 24.9 1,184,613 25.2 
Midwest372,762 36,730 7.2 336,032 7.1 
Various70,000 6,167 1.3 63,833 1.4 
Total$5,186,472 $470,869 100.0 %$4,710,161 100.0 %
December 31, 2021
Geographic regionLoan commitmentUnfunded commitment
% of loan commitment
Loan UPB
% of loan UPB
East$1,925,457 $63,459 35.6 %$1,863,172 37.8 %
West(1)
1,484,883 244,100 27.4 1,233,628 25.1 
South1,323,800 115,714 24.5 1,208,940 24.6 
Midwest677,804 64,500 12.5 613,603 12.5 
Total$5,411,944 $487,773 100.0 %$4,919,343 100.0 %
_______________________
(1)For the period ended June 30, 2022 and December 31, 2021, the Company's unfunded loan commitments included $2.1 million of outstanding unfunded loan commitments that could not be drawn upon by the borrower related to a non-performing retail loan held for investment that was in default.
v3.22.2
Summary of Significant Accounting Policies - Additional Information (Details)
loan in Thousands, $ in Thousands
 6 Months Ended 13 Months Ended
Jun. 16, 2021
shares
Jun. 14, 2021
shares
Jun. 30, 2022
USD ($)
loan
shares
Jun. 30, 2022
USD ($)
shares
Dec. 31, 2021
USD ($)
shares
Significant Accounting Policies [Line Items]          
Percentage of senior mortgage loan transferred to third-party     100.00%    
Maximum insured amount of each cash account     $ 250 $ 250 $ 250
Cash     17,300 17,300 15,000
Cash and cash equivalents [1]     355,994 355,994 260,635
Restricted cash [1]     789 789 $ 404
Holdco          
Significant Accounting Policies [Line Items]          
Debt covenant, minimum cash balance required     $ 15,000 $ 15,000  
Minimum cash reserve percentage (in percent)     0.05 0.05  
Series B Preferred Stock          
Significant Accounting Policies [Line Items]          
Temporary equity, shares redeemed | shares 9,000,000        
Temporary equity, shares outstanding | shares     0 0 0
Series C Preferred Stock          
Significant Accounting Policies [Line Items]          
Preferred stock, shares issued | shares   8,050,000 8,050,000 8,050,000 8,050,000
Preferred stock, dividend rate   6.25%      
Commercial Real Estate Loans | Maximum          
Significant Accounting Policies [Line Items]          
Number of performance loan | loan     120    
Warrants          
Significant Accounting Policies [Line Items]          
Warrants exercised (in shares) | shares     0 0  
[1] The Company’s consolidated Total Assets and Total Liabilities as of June 30, 2022 include assets and liabilities of variable interest entities (“VIEs”) of $3.2 billion and $2.6 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2021 include assets and liabilities of VIEs of $3.2 billion and $2.6 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details.
v3.22.2
Loans Held for Investment and the Allowance for Credit Losses - Additional Information (Details)
 3 Months Ended 6 Months Ended
Jun. 30, 2022
USD ($)
rating
loan
Mar. 31, 2022
USD ($)
Jun. 30, 2021
USD ($)
Jun. 30, 2022
USD ($)
rating
loan
Jun. 30, 2021
USD ($)
Dec. 31, 2021
USD ($)
rating
loan
Accounts Notes And Loans Receivable [Line Items]            
Loans held for investment, net [1] $ 4,617,254,000     $ 4,617,254,000   $ 4,867,203,000
Total loan commitment 5,186,472,000     5,186,472,000   5,411,944,000
Unfunded loan commitments 470,869,000     470,869,000   487,773,000
Unamortized loan fees included in Loans Held for Investment 8,800,000     8,800,000   10,100,000
Unamortized discounts included in loans held for investment at amortized cost $ 0     $ 0   $ 0
Weighted average risk rating | rating 3.2     3.2   3.0
Allowance for credit loss increase (decrease) $ 42,300,000   $ (3,500,000) $ 47,200,000 $ (7,500,000)  
Number of loan repayments | loan 7          
Allowance for credit loss reserve $ 93,383,000   $ 55,312,000 93,383,000 55,312,000  
Allowance for credit losses increase (decrease) due to increased loan origination       535,100,000 631,400,000  
Allowance for credit losses increase (decrease) due to increased repayments       $ 804,400,000 339,300,000  
Number of loans not on non accrual status | loan 1     1    
Total allowance for credit losses [1] $ 84,156,000     $ 84,156,000   $ 41,999,000
Allowance for credit losses increase (decrease) due to increased sales         $ 60,700,000  
Total PIK interest 0 $ 0   0    
Loans held for investment [1] 4,701,410,000     4,701,410,000   4,909,202,000
Loans accrued interest income 0     $ 0   $ 0
Loans Held for Investment and the Allowance for Credit Losses       Loans Held for Investment and the Allowance for Credit Losses
The Company originates and acquires first mortgage and mezzanine loans secured by commercial properties. The Company considers these loans to comprise a single portfolio of mortgage loans, and the Company has developed its systematic methodology to determine the allowance for credit losses based on a single portfolio. For purposes of certain disclosures herein, the Company disaggregates this portfolio segment into the following classes of finance receivables: senior loans; and subordinated and mezzanine loans. These loans can potentially subject the Company to concentrations of credit risk, including, without limitation: property type collateralizing the loan; loan category; loan size; loans to a single sponsor; and loans in a single geographic area. The Company’s loans held for investment are accounted for at amortized cost. Interest accrued but not yet collected is separately reported within accrued interest and fees receivable on the Company’s consolidated balance sheets. Amounts within that caption relating to loans held for investment were $13.5 million and $14.3 million as of June 30, 2022 and December 31, 2021, respectively.
During the six months ended June 30, 2022, the Company originated twelve mortgage loans with a total commitment of $613.3 million, an initial unpaid principal balance of $537.3 million, and unfunded commitments at closing of $76.0 million.
During the six months ended June 30, 2022, the Company received eight full loan repayments of $717.3 million, and partial principal payments including accrued PIK interest payments, of $87.8 million across nine loans, for total loan repayments of $805.0 million.
The following table details overall statistics for the Company’s loans held for investment portfolio (dollars in thousands):
June 30, 2022December 31, 2021
Balance sheet portfolio
Total loan exposure(1)
Balance sheet portfolio
Total loan exposure(1)
Number of loans73746970
Floating rate loans100.0 %100.0 %100.0 %100.0 %
Total loan commitment$5,186,472$5,318,472$5,411,944$5,543,944
Unpaid principal balance(2)
$4,710,161$4,842,161$4,919,343$5,051,343
Unfunded loan commitments(3)
$470,869$470,869$487,773$487,773
Amortized cost$4,701,410$4,701,410$4,909,202$4,909,202
Weighted average credit spread3.4 %3.5 %3.4 %3.4 %
Weighted average all-in yield(4)
5.6 %5.6 %4.8 %4.8 %
Weighted average term to extended maturity (in years)(5)
2.72.82.82.8
_______________________
(1)In certain instances, the Company creates structural leverage through the co-origination or non-recourse syndication of a senior loan interest to a third-party. In either case, the senior mortgage loan (i.e., the non-consolidated senior interest) is not included on the Company’s balance sheet. When the Company creates structural leverage through the co-origination or non-recourse syndication of a senior loan interest to a third-party, the Company retains on its balance sheet a mezzanine loan. Total loan exposure encompasses the entire loan portfolio the Company originated, acquired and financed. As of June 30, 2022 and December 31, 2021, the Company had outstanding one non-consolidated senior interest of $132.0 million.
(2)Unpaid principal balance includes PIK interest of $2.4 million and $3.0 million as of June 30, 2022 and December 31, 2021, respectively.
(3)Unfunded loan commitments may be funded over the term of each loan, subject in certain cases to an expiration date or a force-funding date, primarily to finance property improvements or lease-related expenditures by the Company’s borrowers, to finance operating deficits during renovation and lease-up, and in limited instances to finance construction.
(4)As of June 30, 2022, all of the Company’s loans were floating rate. Loans originated by the Company before December 31, 2021 are indexed to LIBOR, while loans originated after January 1, 2022 are indexed to Term SOFR. As of June 30, 2022, based on the total loan commitments of the Company’s loan portfolio, 11.8% (or $0.6 billion) of the Company’s loans were subject to Term SOFR and 88.2% (or $4.6 billion) were subject to LIBOR as the benchmark interest rate. In addition to credit spread, all-in yield includes the amortization of deferred origination fees, purchase price premium and discount if any, loan origination costs and accrual of both extension and exit fees. All-in yield for the total portfolio assumes the applicable floating benchmark interest rate as of June 30, 2022 for weighted average calculations.
(5)Extended maturity assumes all extension options are exercised by the borrower; provided, however, that the Company’s loans may be repaid prior to such date. As of June 30, 2022, based on the unpaid principal balance of the Company’s total loan exposure, 43.3% of the Company’s loans were subject to yield maintenance or other prepayment restrictions and 56.7% were open to repayment by the borrower without penalty.
The following tables present an overview of the Company’s loans held for investment portfolio by loan seniority (dollars in thousands):
June 30, 2022
Loans held for investment, netOutstanding principalUnamortized premium (discount) and
loan origination fees, net 		Amortized cost
Senior loans$4,675,161 $(8,751)$4,666,410 
Subordinated and mezzanine loans35,000 — 35,000 
Total$4,710,161 $(8,751)$4,701,410 
Allowance for credit losses(84,156)
Loans held for investment, net$4,617,254 
December 31, 2021
Loans held for investment, netOutstanding principalUnamortized premium (discount) and
loan origination fees, net 		Amortized cost
Senior loans$4,884,343 $(10,101)$4,874,242 
Subordinated and mezzanine loans35,000 (40)34,960 
Total$4,919,343 $(10,141)$4,909,202 
Allowance for credit losses(41,999)
Loans held for investment, net$4,867,203 
For the six months ended June 30, 2022, the Company’s loans held for investment portfolio activity was as follows (dollars in thousands):
Carrying value
Balance as of January 1, 2022$4,867,203 
Additions during the period:
Loans originated535,053 
Additional fundings58,558 
Amortization of origination fees3,627 
Deductions during the period:
Collection of principal(804,417)
Collection of accrued PIK interest(613)
(Increase) of allowance for credit losses(42,157)
Balance as of June 30, 2022
$4,617,254 
As of June 30, 2022 and December 31, 2021, there was $8.8 million and $10.1 million, respectively, of unamortized loan fees included in loans held for investment, net in the consolidated balance sheets. As of June 30, 2022 and December 31, 2021, there were no unamortized discounts included in loans held for investment at amortized cost on the consolidated balance sheets.
Loan Risk Ratings
The Company evaluates all of its loans to assign risk ratings on a quarterly basis on a 5-point scale. As described in Note 2, the Company’s loans are rated “1” through “5,” from least risk to greatest risk, respectively. The Company generally assigns a risk rating of “3” to all loan investments upon origination, except when specific circumstances warrant an exception.
The following tables present the Company's loans held for investment portfolio on an amortized cost basis by origination year, grouped by risk rating (dollars in thousands):
June 30, 2022
Amortized cost by origination year
20222021202020192018PriorTotal
Senior loans by internal risk ratings:
1$— $— $— $— $— $— $— 
2— 33,680 — 61,998 — 253,950 349,628 
3539,935 1,576,195 98,408 778,708 264,678 12,032 3,269,956 
4— — 78,269 497,742 251,307 140,776 968,094 
5— — — — 78,732 — 78,732 
Total senior loans$539,935 $1,609,875 $176,677 $1,338,448 $594,717 $406,758 $4,666,410 
Subordinated and mezzanine loans by internal risk ratings:
1$— $— $— $— $— $— $— 
2— — — — — — — 
3— — — 35,000 — — 35,000 
4— — — — — — — 
5— — — — — — — 
Total subordinated and mezzanine loans— — — 35,000 — — 35,000 
Total$539,935 $1,609,875 $176,677 $1,373,448 $594,717 $406,758 $4,701,410 
December 31, 2021
Amortized cost by origination year
2021 2020 2019 2018 2017 Prior Total
Senior loans by internal risk ratings:
1$— $— $— $— $— $— $— 
233,621 — 82,461 242,614 168,355 — 527,051 
31,600,659 95,858 1,400,670 407,509 169,934 17,163 3,691,793 
4— 78,013 154,093 183,750 216,542 — 632,398 
5— — — 23,000 — — 23,000 
Total senior loans$1,634,280 $173,871 $1,637,224 $856,873 $554,831 $17,163 $4,874,242 
Subordinated and mezzanine loans by internal risk ratings:
1$— $— $— $— $— $— $— 
2— — — — — — — 
3— — 34,960 — — — 34,960 
4— — — — — — — 
5— — — — — — — 
Total subordinated and mezzanine loans— — 34,960 — — — 34,960 
Total$1,634,280 $173,871 $1,672,184 $856,873 $554,831 $17,163 $4,909,202 
Loans acquired rather than originated are presented in the table above in the column corresponding to the year of origination, not acquisition.
The table below summarizes the Company’s loans held for investment portfolio on an amortized cost basis, by the results of its internal risk rating review process performed (dollars in thousands):
Risk ratingJune 30, 2022December 31, 2021
1$— $— 
2349,628 527,051 
33,304,956 3,726,753 
4968,094 632,398 
578,732 23,000 
Total$4,701,410 $4,909,202 
Allowance for credit losses(84,156)(41,999)
Carrying value$4,617,254 $4,867,203 
Weighted average risk rating(1)
3.2 3.0 
________________________________
(1)Weighted average risk rating calculated based on the amortized cost balance at period end.
The weighted average risk rating of the Company’s loans held for investment portfolio increased to 3.2 as of June 30, 2022 compared to 3.0 as of December 31, 2021.
Allowance for Credit Losses
The Company’s allowance for credit losses developed pursuant to ASC 326 reflects its current estimate of potential credit losses related to its loans held for investment portfolio as of June 30, 2022. As part of its allowance for credit losses, the Company maintains a separate allowance for credit losses related to unfunded loan commitments which is included in accrued expenses and other liabilities on the consolidated balance sheets. See Note 2 for additional details regarding the Company's accounting policies and estimation of its allowance for credit losses.
The following tables present activity in the allowance for credit losses for loans by finance receivable class (dollars in thousands):
For the Three Months Ended June 30, 2022
Senior loansSubordinated and
mezzanine loans		Total
Allowance for credit losses for loans held for investment:
Beginning balance at April 1, 2022
$45,940 $367 $46,307 
Allowance for (reversal of) credit losses, net37,545 304 37,849 
Subtotal83,485 671 84,156 
Allowance for credit losses on unfunded loan commitments:
Beginning balance at April 1, 2022
4,786 — 4,786 
Allowance for (reversal of) credit losses, net4,441 — 4,441 
Subtotal9,227 — 9,227 
Total allowance for credit losses$92,712 $671 $93,383 
For the Three Months Ended June 30, 2021
Senior loansSubordinated and
mezzanine loans		Total
Allowance for credit losses for loans held for investment:
Beginning balance at April 1, 2021
$55,155 $1,486 $56,641 
Allowance for (reversal of) credit losses, net(3,724)(976)(4,700)
Subtotal51,431 510 51,941 
Allowance for credit losses on unfunded loan commitments:
Beginning balance at April 1, 2021
2,084 65 2,149 
Allowance for (reversal of) credit losses, net1,276 (54)1,222 
Subtotal3,360 11 3,371 
Total allowance for credit losses$54,791 $521 $55,312 
For the Six Months Ended June 30, 2022
Senior loansSubordinated and
mezzanine loans 		Total
Allowance for credit losses for loans held for investment:
Beginning balance at January 1, 2022$41,193 $806 $41,999 
Allowance for (reversal of) credit losses, net42,292 (135)42,157 
Subtotal83,485 671 84,156 
Allowance for credit losses on unfunded loan commitments:
Beginning balance at January 1, 20224,210 — 4,210 
Allowance for (reversal of) credit losses, net5,017 — 5,017 
Subtotal9,227 — 9,227 
Total allowance for credit losses$92,712 $671 $93,383 
For the Six Months Ended June 30, 2021
Senior loans Subordinated and
mezzanine loans 		Total
Allowance for credit losses for loans held for investment:
Beginning balance at January 1, 2021$58,210 $1,730 $59,940 
Allowance for (reversal of) credit losses, net(6,779)(1,220)(7,999)
Subtotal51,431 510 51,941 
Allowance for credit losses on unfunded loan commitments:
Beginning balance at January 1, 20212,756 132 2,888 
Allowance for (reversal of) credit losses, net604 (121)483 
Subtotal3,360 11 3,371 
Total allowance for credit losses$54,791 $521 $55,312 
The Company’s allowance for credit losses is influenced by the size and maturity dates of its loans, loan quality, credit indicators including risk ratings, delinquency status, historical loss experience and other conditions influencing loss expectations, such as reasonable and supportable forecasts of economic conditions.
During the three months ended June 30, 2022, the Company recorded an increase of $42.3 million to its allowance for credit losses. The increase to the Company's allowance for credit losses was due to weakening credit indicators, inflationary expectations, reduced liquidity in the capital markets, an uncertain macroeconomic outlook, and new loan originations offset by seven loan repayments in-full. The uncertain macroeconomic outlook is caused by surging inflationary pressures, rising short term interest rates, continuing supply chain disruptions, widening credit spreads in the fixed income markets, a material decline in U.S. stock market indices, and Russia’s invasion of Ukraine. These factors, and slowing business plan execution for certain of our loans, contributed to the increase in the Company’s allowance for credit losses during the three months ended June 30, 2022. While the ultimate impact of the macroeconomic outlook and property-level performance trends of the Company's loan portfolio remain uncertain, the Company's macroeconomic outlook is intended to address these uncertainties, and the Company has made specific forward-looking valuation adjustments to the inputs of its allowance for credit loss calculation to reflect the variability associated with the timing, strength, and breadth of a sustained economic recovery or the potential impact of an uncertain economic outlook that may result in a post-COVID environment.
During the six months ended June 30, 2022, the Company recorded an increase of $47.2 million, increasing its CECL reserve to $93.4 million as of June 30, 2022. For the six months ended June 30, 2022, the Company's estimate of expected credit losses was impacted by loan originations and repayments of $535.1 million and $804.4 million, respectively, and recessionary and recovery macroeconomic assumptions employed in determining the model-based general CECL reserve.
On June 30, 2022, the Company determined that one first mortgage loan secured by an office property met the CECL framework’s criteria for individual assessment. As of June 30, 2022, the loan was not on non-accrual status because all amounts of interest due were collected by the Company. The amortized cost of the loan was $55.7 million as of June 30, 2022, and December 31, 2021. Subsequent to June 30, 2022, the borrower failed to meet the loan's extension conditions and, as a result, the Company and borrower agreed to modify the loan agreement to facilitate an orderly disposition of the property by the borrower. Accordingly, the Company utilized the estimated fair value of the collateral to estimate a total allowance for credit losses of $11.1 million, which is included in its CECL reserve as of June 30, 2022. The Company’s fair market value estimate was determined using a discounted cash flow model and Level 3 inputs, which include estimates of property-specific cash flows over a specific holding period, a discount rate of 10.7%, and a terminal capitalization rate of 8.7%. These inputs are based on the location, type and nature of the property, current sales and lease comparables, anticipated market conditions, and management’s knowledge, experience and judgment.
During the three months ended June 30, 2021, the Company recorded a decrease of $3.5 million in the allowance for credit losses. The decline in the Company’s allowance for credit losses was primarily due to an improving macroeconomic outlook based on recent observed economic data, improved property performance of underlying collateral for many of its loan investments that were adversely impacted by COVID-19, and normalizing commercial real estate capital markets activity. During the six months ended June 30, 2021, the Company recorded a decrease of $7.5 million, reducing the total CECL reserve to $55.3 million as of June 30, 2021. For the six months ended June 30, 2021, the Company’s estimate of expected credit losses was impacted by loan originations, sales, and repayments of $631.4 million, $60.7 million, and $339.3 million, respectively, recessionary and recovery macroeconomic assumptions employed in determining the model-based general CECL reserve, and an increase in the Company’s total loan commitments and unpaid principal balance as of June 30, 2021.
One loan secured by a retail property was on non-accrual status as of June 30, 2022 and December 31, 2021 due to a default caused by non-payment of interest in December 2020. The amortized cost basis of the loan was $23.0 million as of June 30, 2022 and December 31, 2021. In accordance with the Company’s revenue recognition and allowance for credit losses accounting policies, the Company suspended its accrual of interest income when the loan was placed on non-accrual status and continues to believe that the carrying value of the loan is collectible as of June 30, 2022.
Loan Modification Activity
The Company may amend or modify a loan depending on the loan’s specific facts and circumstances. These loan modifications typically include additional time for the borrower to refinance or sell the collateral property, adjustment or waiver of performance tests that are prerequisite to the extension of a loan maturity, and/or deferral of scheduled principal payments. In exchange for a modification, the Company often receives a partial repayment of principal, a short-term accrual of PIK interest for a portion of interest due, a cash infusion to replenish interest or capital improvement reserves, termination of all or a portion of the remaining unfunded loan commitment, additional call protection, and/or an increase in the loan coupon. For the six months ended June 30, 2022, none of the Company’s loan modifications resulted in significant modifications.
As of June 30, 2022, the total amount of accrued PIK interest in the loans held for investment portfolio was $2.4 million with respect to three first mortgage loans.
The following table presents the accrued PIK interest activity for the six months ended June 30, 2022 for the Company’s loans held for investment portfolio (dollars in thousands):
June 30, 2022
Balance as of January 1, 2022
$3,028 
Accrued PIK interest— 
Repayments of accrued PIK interest(313)
Balance as of March 31, 2022
$2,715 
Accrued PIK interest— 
Repayments of accrued PIK interest(300)
Write-off of accrued PIK interest— 
Balance as of June 30, 2022
$2,415 
No accrued PIK interest was recorded and deferred during the six months ended June 30, 2022.
As of June 30, 2022 and December 31, 2021, none of the Company's accrual status loans had accrued interest income receivable 90 days or more past due.
The following table presents an aging analysis for the Company’s loans held for investment portfolio, by class of loans on amortized cost basis (dollars in thousands):
Days Outstanding as of June 30, 2022
CurrentDays: 30-59Days: 60-89 Days: 90 or moreTotal loans past dueTotal loans
Loans receivable:
Senior loans$4,643,410 $— $— $23,000 $23,000 $4,666,410 
Subordinated and mezzanine loans35,000 — — — — 35,000 
Total$4,678,410 $— $— $23,000 $23,000 $4,701,410 
 
Days Outstanding as of December 31, 2021
Current Days: 30-59Days: 60-89Days: 90 or moreTotal loans past dueTotal loans
Loans receivable:
Senior loans$4,851,242 $— $— $23,000 $23,000 $4,874,242 
Subordinated and mezzanine loans34,960 — — — — 34,960 
Total$4,886,202 $— $— $23,000 $23,000 $4,909,202 
    
First Mortgage Loan, Office Property            
Accounts Notes And Loans Receivable [Line Items]            
Total allowance for credit losses $ 11,100,000     $ 11,100,000    
Real Estate            
Accounts Notes And Loans Receivable [Line Items]            
Discount rate (in percent) 10.70%     10.70%    
Terminal capitalization rate (in percent) 8.70%     8.70%    
Number of loans on non-accrual status | loan 1     1   1
Real Estate | First Mortgage Loan, Office Property            
Accounts Notes And Loans Receivable [Line Items]            
Loans held for investment, net $ 44,600,000     $ 44,600,000    
Amortized cost of loan 55,700,000     55,700,000   $ 55,700,000
Total allowance for credit losses 11,100,000     11,100,000    
Real Estate | Mortgage Loan, Retail Property            
Accounts Notes And Loans Receivable [Line Items]            
Amortized cost of loan 23,000,000     $ 23,000,000   23,000,000
Twelve Loan            
Accounts Notes And Loans Receivable [Line Items]            
Number of mortgage loans originated or acquired | loan       12    
Total loan commitment 613,300,000     $ 613,300,000    
Loans and leases receivable unpaid principal balance 537,300,000     537,300,000    
Unfunded loan commitments 76,000,000     $ 76,000,000    
Eight loan            
Accounts Notes And Loans Receivable [Line Items]            
Number of mortgage loans originated or acquired | loan       8    
Loan repayment principal amount       $ (717,300,000)    
Nine Loan            
Accounts Notes And Loans Receivable [Line Items]            
Number of mortgage loans originated or acquired | loan       9    
Interest received in kind       $ (87,800,000)    
Total loan repayments       (805,000,000)    
Accrued Interest and Fees Receivable            
Accounts Notes And Loans Receivable [Line Items]            
Loans held for investment, net 13,500,000     13,500,000   $ 14,300,000
Accrued PIK interest            
Accounts Notes And Loans Receivable [Line Items]            
Loans held for investment, net $ 2,400,000     $ 2,400,000    
Number of first mortgage loans held for investment | loan       3    
[1] The Company’s consolidated Total Assets and Total Liabilities as of June 30, 2022 include assets and liabilities of variable interest entities (“VIEs”) of $3.2 billion and $2.6 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2021 include assets and liabilities of VIEs of $3.2 billion and $2.6 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details.
v3.22.2
Loans Held for Investment and the Allowance for Credit Losses - Schedule of Overall Statistics for Loan Held for Investment Portfolio (Details)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2022
USD ($)
loan
Dec. 31, 2021
USD ($)
loan
Loans And Leases Receivable Disclosure [Line Items]    
Total loan commitment $ 5,186,472 $ 5,411,944
Unpaid principal balance 4,710,161 4,919,343
Unfunded loan commitments 470,869 487,773
Loans held for investment [1] $ 4,701,410 $ 4,909,202
Number of non-consolidated senior interest | loan 1 1
Non-consolidated senior interest outstanding $ 132,000 $ 132,000
PIK interest $ 2,400 $ 3,000
Percentage of loans subject to yield maintenance or other prepayment restrictions 43.30%  
Percentage of loans open to repayment by borrower without penalty 56.70%  
SOFR    
Loans And Leases Receivable Disclosure [Line Items]    
Total loan commitment $ 600,000  
Percentage of loan commitment subject to benchmark interest rate 11.80%  
LIBOR    
Loans And Leases Receivable Disclosure [Line Items]    
Total loan commitment $ 4,600,000  
Percentage of loan commitment subject to benchmark interest rate 88.20%  
Balance sheet portfolio    
Loans And Leases Receivable Disclosure [Line Items]    
Number of loans | loan 73 69
Floating rate loans (in percent) 100.00% 100.00%
Total loan commitment $ 5,186,472 $ 5,411,944
Unpaid principal balance 4,710,161 4,919,343
Unfunded loan commitments 470,869 487,773
Loans held for investment $ 4,701,410 $ 4,909,202
Weighted average credit spread (in percent) 3.40% 3.40%
Weighted average all-in yield (in percent) 5.60% 4.80%
Weighted average term to extended maturity (in years) 2 years 8 months 12 days 2 years 9 months 18 days
Total loan exposure    
Loans And Leases Receivable Disclosure [Line Items]    
Number of loans | loan 74 70
Floating rate loans (in percent) 100.00% 100.00%
Total loan commitment $ 5,318,472 $ 5,543,944
Unpaid principal balance 4,842,161 5,051,343
Unfunded loan commitments 470,869 487,773
Loans held for investment $ 4,701,410 $ 4,909,202
Weighted average credit spread (in percent) 3.50% 3.40%
Weighted average all-in yield (in percent) 5.60% 4.80%
Weighted average term to extended maturity (in years) 2 years 9 months 18 days 2 years 9 months 18 days
[1] The Company’s consolidated Total Assets and Total Liabilities as of June 30, 2022 include assets and liabilities of variable interest entities (“VIEs”) of $3.2 billion and $2.6 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2021 include assets and liabilities of VIEs of $3.2 billion and $2.6 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details.
v3.22.2
Loans Held for Investment and the Allowance for Credit Losses - Schedule of Loans Held for Investment Portfolio by Loan Seniority (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Loans And Leases Receivable Disclosure [Line Items]    
Outstanding principal $ 4,710,161 $ 4,919,343
Unamortized premium (discount) and loan origination fees, net (8,751) (10,141)
Amortized cost [1] 4,701,410 4,909,202
Allowance for credit losses [1] (84,156) (41,999)
Loans held for investment, net [1] 4,617,254 4,867,203
Senior loans    
Loans And Leases Receivable Disclosure [Line Items]    
Outstanding principal 4,675,161 4,884,343
Unamortized premium (discount) and loan origination fees, net (8,751) (10,101)
Amortized cost 4,666,410 4,874,242
Subordinated and mezzanine loans    
Loans And Leases Receivable Disclosure [Line Items]    
Outstanding principal 35,000 35,000
Unamortized premium (discount) and loan origination fees, net 0 (40)
Amortized cost $ 35,000 $ 34,960
[1] The Company’s consolidated Total Assets and Total Liabilities as of June 30, 2022 include assets and liabilities of variable interest entities (“VIEs”) of $3.2 billion and $2.6 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2021 include assets and liabilities of VIEs of $3.2 billion and $2.6 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details.
v3.22.2
Loans Held for Investment and the Allowance for Credit Losses - Summary of Loans Held for Investment Portfolio Activity (Details)
$ in Thousands
 6 Months Ended
Jun. 30, 2022
USD ($)
Loans and Leases Receivable, Related Parties [Roll Forward]  
Balance as of January 1, 2022 $ 4,867,203
Loans originated 535,053
Additional fundings 58,558
Amortization of origination fees 3,627
Collection of principal (804,417)
Collection of accrued PIK interest (613)
(Increase) of allowance for credit losses (42,157)
Balance as of June 30, 2022 $ 4,617,254
v3.22.2
Loans Held for Investment and the Allowance for Credit Losses - Summary Of Amortized Cost By Origination Year Grouped By Risk Rating for Loans Held for Investment Portfolio (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Accounts Notes And Loans Receivable [Line Items]    
Amortized cost basis of loans by origination year, One $ 539,935 $ 1,634,280
Amortized cost basis of loans by origination year, Two 1,609,875 173,871
Amortized cost basis of loans by origination year, Three 176,677 1,672,184
Amortized cost basis of loans by origination year, Four 1,373,448 856,873
Amortized cost basis of loans by origination year, Five 594,717 554,831
Amortized cost basis of loans by origination year, Prior 406,758 17,163
Amortized cost [1] 4,701,410 4,909,202
Senior loans    
Accounts Notes And Loans Receivable [Line Items]    
Amortized cost basis of loans by origination year, One 539,935 1,634,280
Amortized cost basis of loans by origination year, Two 1,609,875 173,871
Amortized cost basis of loans by origination year, Three 176,677 1,637,224
Amortized cost basis of loans by origination year, Four 1,338,448 856,873
Amortized cost basis of loans by origination year, Five 594,717 554,831
Amortized cost basis of loans by origination year, Prior 406,758 17,163
Amortized cost 4,666,410 4,874,242
Subordinated and mezzanine loans    
Accounts Notes And Loans Receivable [Line Items]    
Amortized cost basis of loans by origination year, One 0 0
Amortized cost basis of loans by origination year, Two 0 0
Amortized cost basis of loans by origination year, Three 0 34,960
Amortized cost basis of loans by origination year, Four 35,000 0
Amortized cost basis of loans by origination year, Five 0 0
Amortized cost basis of loans by origination year, Prior 0 0
Amortized cost 35,000 34,960
1    
Accounts Notes And Loans Receivable [Line Items]    
Amortized cost 0 0
1 | Senior loans    
Accounts Notes And Loans Receivable [Line Items]    
Amortized cost basis of loans by origination year, One 0 0
Amortized cost basis of loans by origination year, Two 0 0
Amortized cost basis of loans by origination year, Three 0 0
Amortized cost basis of loans by origination year, Four 0 0
Amortized cost basis of loans by origination year, Five 0 0
Amortized cost basis of loans by origination year, Prior 0 0
Amortized cost 0 0
1 | Subordinated and mezzanine loans    
Accounts Notes And Loans Receivable [Line Items]    
Amortized cost basis of loans by origination year, One 0 0
Amortized cost basis of loans by origination year, Two 0 0
Amortized cost basis of loans by origination year, Three 0 0
Amortized cost basis of loans by origination year, Four 0 0
Amortized cost basis of loans by origination year, Five 0 0
Amortized cost basis of loans by origination year, Prior 0 0
Amortized cost 0 0
2    
Accounts Notes And Loans Receivable [Line Items]    
Amortized cost 349,628 527,051
2 | Senior loans    
Accounts Notes And Loans Receivable [Line Items]    
Amortized cost basis of loans by origination year, One 0 33,621
Amortized cost basis of loans by origination year, Two 33,680 0
Amortized cost basis of loans by origination year, Three 0 82,461
Amortized cost basis of loans by origination year, Four 61,998 242,614
Amortized cost basis of loans by origination year, Five 0 168,355
Amortized cost basis of loans by origination year, Prior 253,950 0
Amortized cost 349,628 527,051
2 | Subordinated and mezzanine loans    
Accounts Notes And Loans Receivable [Line Items]    
Amortized cost basis of loans by origination year, One 0 0
Amortized cost basis of loans by origination year, Two 0 0
Amortized cost basis of loans by origination year, Three 0 0
Amortized cost basis of loans by origination year, Four 0 0
Amortized cost basis of loans by origination year, Five 0 0
Amortized cost basis of loans by origination year, Prior 0 0
Amortized cost 0 0
3    
Accounts Notes And Loans Receivable [Line Items]    
Amortized cost 3,304,956 3,726,753
3 | Senior loans    
Accounts Notes And Loans Receivable [Line Items]    
Amortized cost basis of loans by origination year, One 539,935 1,600,659
Amortized cost basis of loans by origination year, Two 1,576,195 95,858
Amortized cost basis of loans by origination year, Three 98,408 1,400,670
Amortized cost basis of loans by origination year, Four 778,708 407,509
Amortized cost basis of loans by origination year, Five 264,678 169,934
Amortized cost basis of loans by origination year, Prior 12,032 17,163
Amortized cost 3,269,956 3,691,793
3 | Subordinated and mezzanine loans    
Accounts Notes And Loans Receivable [Line Items]    
Amortized cost basis of loans by origination year, One 0 0
Amortized cost basis of loans by origination year, Two 0 0
Amortized cost basis of loans by origination year, Three 0 34,960
Amortized cost basis of loans by origination year, Four 35,000 0
Amortized cost basis of loans by origination year, Five 0 0
Amortized cost basis of loans by origination year, Prior 0 0
Amortized cost 35,000 34,960
4    
Accounts Notes And Loans Receivable [Line Items]    
Amortized cost 968,094 632,398
4 | Senior loans    
Accounts Notes And Loans Receivable [Line Items]    
Amortized cost basis of loans by origination year, One 0 0
Amortized cost basis of loans by origination year, Two 0 78,013
Amortized cost basis of loans by origination year, Three 78,269 154,093
Amortized cost basis of loans by origination year, Four 497,742 183,750
Amortized cost basis of loans by origination year, Five 251,307 216,542
Amortized cost basis of loans by origination year, Prior 140,776 0
Amortized cost 968,094 632,398
4 | Subordinated and mezzanine loans    
Accounts Notes And Loans Receivable [Line Items]    
Amortized cost basis of loans by origination year, One 0 0
Amortized cost basis of loans by origination year, Two 0 0
Amortized cost basis of loans by origination year, Three 0 0
Amortized cost basis of loans by origination year, Four 0 0
Amortized cost basis of loans by origination year, Five 0 0
Amortized cost basis of loans by origination year, Prior 0 0
Amortized cost 0 0
5    
Accounts Notes And Loans Receivable [Line Items]    
Amortized cost 78,732 23,000
5 | Senior loans    
Accounts Notes And Loans Receivable [Line Items]    
Amortized cost basis of loans by origination year, One 0 0
Amortized cost basis of loans by origination year, Two 0 0
Amortized cost basis of loans by origination year, Three 0 0
Amortized cost basis of loans by origination year, Four 0 23,000
Amortized cost basis of loans by origination year, Five 78,732 0
Amortized cost basis of loans by origination year, Prior 0 0
Amortized cost 78,732 23,000
5 | Subordinated and mezzanine loans    
Accounts Notes And Loans Receivable [Line Items]    
Amortized cost basis of loans by origination year, One 0 0
Amortized cost basis of loans by origination year, Two 0 0
Amortized cost basis of loans by origination year, Three 0 0
Amortized cost basis of loans by origination year, Four 0 0
Amortized cost basis of loans by origination year, Five 0 0
Amortized cost basis of loans by origination year, Prior 0 0
Amortized cost $ 0 $ 0
[1] The Company’s consolidated Total Assets and Total Liabilities as of June 30, 2022 include assets and liabilities of variable interest entities (“VIEs”) of $3.2 billion and $2.6 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2021 include assets and liabilities of VIEs of $3.2 billion and $2.6 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details.
v3.22.2
Loans Held for Investment and the Allowance for Credit Losses - Summary of Amortized Cost and Results of Internal Risk Rating Review Performed for Loans Held for Investment Portfolio (Details)
$ in Thousands
Jun. 30, 2022
USD ($)
rating
Dec. 31, 2021
USD ($)
rating
Accounts Notes And Loans Receivable [Line Items]    
Carrying Value, Gross [1] $ 4,701,410 $ 4,909,202
Allowance for credit losses [1] (84,156) (41,999)
Loans held for investment, net [1] $ 4,617,254 $ 4,867,203
Weighted average risk rating | rating 3.2 3.0
1    
Accounts Notes And Loans Receivable [Line Items]    
Carrying Value, Gross $ 0 $ 0
2    
Accounts Notes And Loans Receivable [Line Items]    
Carrying Value, Gross 349,628 527,051
3    
Accounts Notes And Loans Receivable [Line Items]    
Carrying Value, Gross 3,304,956 3,726,753
4    
Accounts Notes And Loans Receivable [Line Items]    
Carrying Value, Gross 968,094 632,398
5    
Accounts Notes And Loans Receivable [Line Items]    
Carrying Value, Gross $ 78,732 $ 23,000
[1] The Company’s consolidated Total Assets and Total Liabilities as of June 30, 2022 include assets and liabilities of variable interest entities (“VIEs”) of $3.2 billion and $2.6 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2021 include assets and liabilities of VIEs of $3.2 billion and $2.6 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details.
v3.22.2
Loans Held for Investment and the Allowance for Credit Losses - Summary of Activity in Allowance for Credit Losses for Loans Held for Investment Portfolio by Class of Financing Receivable (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Accounts Receivable, Allowance for Credit Loss [Roll Forward]        
Beginning balance [1]     $ 41,999  
Allowance for credit losses for loans held for investment [1] $ 84,156   84,156  
Total allowance for credit losses 93,383 $ 55,312 93,383 $ 55,312
Loans held for investment        
Accounts Receivable, Allowance for Credit Loss [Roll Forward]        
Beginning balance 46,307 56,641 41,999 59,940
Allowance for (reversal of) credit losses, net 37,849 (4,700) 42,157 (7,999)
Allowance for credit losses for loans held for investment 84,156 51,941 84,156 51,941
Unfunded Loan Commitment        
Accounts Receivable, Allowance for Credit Loss [Roll Forward]        
Beginning balance 4,786 2,149 4,210 2,888
Allowance for (reversal of) credit losses, net 4,441 1,222 5,017 483
Allowance for credit losses on unfunded loan commitments 9,227 3,371 9,227 3,371
Senior loans        
Accounts Receivable, Allowance for Credit Loss [Roll Forward]        
Total allowance for credit losses 92,712 54,791 92,712 54,791
Senior loans | Loans held for investment        
Accounts Receivable, Allowance for Credit Loss [Roll Forward]        
Beginning balance 45,940 55,155 41,193 58,210
Allowance for (reversal of) credit losses, net 37,545 (3,724) 42,292 (6,779)
Allowance for credit losses for loans held for investment 83,485 51,431 83,485 51,431
Senior loans | Unfunded Loan Commitment        
Accounts Receivable, Allowance for Credit Loss [Roll Forward]        
Beginning balance 4,786 2,084 4,210 2,756
Allowance for (reversal of) credit losses, net 4,441 1,276 5,017 604
Allowance for credit losses on unfunded loan commitments 9,227 3,360 9,227 3,360
Subordinated and mezzanine loans        
Accounts Receivable, Allowance for Credit Loss [Roll Forward]        
Total allowance for credit losses 671 521 671 521
Subordinated and mezzanine loans | Loans held for investment        
Accounts Receivable, Allowance for Credit Loss [Roll Forward]        
Beginning balance 367 1,486 806 1,730
Allowance for (reversal of) credit losses, net 304 (976) (135) (1,220)
Allowance for credit losses for loans held for investment 671 510 671 510
Subordinated and mezzanine loans | Unfunded Loan Commitment        
Accounts Receivable, Allowance for Credit Loss [Roll Forward]        
Beginning balance 0 65 0 132
Allowance for (reversal of) credit losses, net 0 (54) 0 (121)
Allowance for credit losses on unfunded loan commitments $ 0 $ 11 $ 0 $ 11
[1] The Company’s consolidated Total Assets and Total Liabilities as of June 30, 2022 include assets and liabilities of variable interest entities (“VIEs”) of $3.2 billion and $2.6 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2021 include assets and liabilities of VIEs of $3.2 billion and $2.6 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details.
v3.22.2
Loans Held for Investment and the Allowance for Credit Losses - Schedule of Paid-in-Kind Interest (Details) - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Mar. 31, 2022
Jun. 30, 2022
Loans and Leases Receivable, Related Parties [Roll Forward]      
Balance $ 2,715,000 $ 3,028,000 $ 3,028,000
Accrued PIK interest 0 0 0
Repayments of accrued PIK interest (300,000) (313,000)  
Write-off of accrued PIK interest 0    
Balance $ 2,415,000 $ 2,715,000 $ 2,415,000
v3.22.2
Loans Held for Investment and the Allowance for Credit Losses - Summary of Aging Analysis for Loans Held for Investment Portfolio by Class of Loans (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Accounts Notes And Loans Receivable [Line Items]    
Loans held for investment [1] $ 4,701,410 $ 4,909,202
Senior loans    
Accounts Notes And Loans Receivable [Line Items]    
Loans held for investment 4,666,410 4,874,242
Subordinated and mezzanine loans    
Accounts Notes And Loans Receivable [Line Items]    
Loans held for investment 35,000 34,960
Current    
Accounts Notes And Loans Receivable [Line Items]    
Loans held for investment 4,678,410 4,886,202
Current | Senior loans    
Accounts Notes And Loans Receivable [Line Items]    
Loans held for investment 4,643,410 4,851,242
Current | Subordinated and mezzanine loans    
Accounts Notes And Loans Receivable [Line Items]    
Loans held for investment 35,000 34,960
Days: 30-59    
Accounts Notes And Loans Receivable [Line Items]    
Loans held for investment 0 0
Days: 30-59 | Senior loans    
Accounts Notes And Loans Receivable [Line Items]    
Loans held for investment 0 0
Days: 30-59 | Subordinated and mezzanine loans    
Accounts Notes And Loans Receivable [Line Items]    
Loans held for investment 0 0
Days: 60-89    
Accounts Notes And Loans Receivable [Line Items]    
Loans held for investment 0 0
Days: 60-89 | Senior loans    
Accounts Notes And Loans Receivable [Line Items]    
Loans held for investment 0 0
Days: 60-89 | Subordinated and mezzanine loans    
Accounts Notes And Loans Receivable [Line Items]    
Loans held for investment 0 0
Days: 90 or more    
Accounts Notes And Loans Receivable [Line Items]    
Loans held for investment 23,000 23,000
Days: 90 or more | Senior loans    
Accounts Notes And Loans Receivable [Line Items]    
Loans held for investment 23,000 23,000
Days: 90 or more | Subordinated and mezzanine loans    
Accounts Notes And Loans Receivable [Line Items]    
Loans held for investment 0 0
Total loans past due    
Accounts Notes And Loans Receivable [Line Items]    
Loans held for investment 23,000 23,000
Total loans past due | Senior loans    
Accounts Notes And Loans Receivable [Line Items]    
Loans held for investment 23,000 23,000
Total loans past due | Subordinated and mezzanine loans    
Accounts Notes And Loans Receivable [Line Items]    
Loans held for investment $ 0 $ 0
[1] The Company’s consolidated Total Assets and Total Liabilities as of June 30, 2022 include assets and liabilities of variable interest entities (“VIEs”) of $3.2 billion and $2.6 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2021 include assets and liabilities of VIEs of $3.2 billion and $2.6 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details.
v3.22.2
Real Estate Owned - Additional Information (Details)
$ in Thousands
 1 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended
Apr. 04, 2022
USD ($)
a
Dec. 31, 2020
USD ($)
a
property
Jun. 30, 2022
USD ($)
Dec. 31, 2021
USD ($)
a
Jun. 30, 2021
USD ($)
Jun. 30, 2022
USD ($)
Jun. 30, 2021
USD ($)
Dec. 31, 2021
USD ($)
a
Nov. 11, 2020
USD ($)
Real Estate Owned [Line Items]                  
Gain on sale of real estate owned, net     $ 13,291   $ 0 $ 13,291 $ 0    
Capital loss carry forward used to offset gains $ 13,300                
Available capital loss carryforwards $ 187,600                
First Mortgage Loan                  
Real Estate Owned [Line Items]                  
Number of undeveloped commercially-zoned land parcel | property   2              
Acres of land | a   27           10  
Property held for investment   $ 99,200              
Mortgage loan payable                 $ 50,000
Acres of land sold | a 10     17       17  
Net cash proceeds from sale of property $ 73,900     $ 54,400          
Gain on sale of real estate owned, net $ 13,300     15,800          
Cost basis property value       $ 60,600       $ 60,600  
v3.22.2
Variable Interest Entities and Collateralized Loan Obligations - Additional Information (Details)
$ in Thousands
Feb. 17, 2022
USD ($)
CreditFacility
Jun. 30, 2022
USD ($)
Dec. 31, 2021
USD ($)
Variable Interest Entities And Collateralized Loan Obligation [Line Items]      
Total loan commitment   $ 5,186,472 $ 5,411,944
FL2 Mortgage Assets      
Variable Interest Entities And Collateralized Loan Obligation [Line Items]      
Redemption of investment-grade bonds outstanding $ 600,000    
FL2 Mortgage Assets | Goldman, Sachs & Co.      
Variable Interest Entities And Collateralized Loan Obligation [Line Items]      
Loans and leases receivable unpaid principal balance 463,800    
Total loan commitment 250,000    
Borrowing $ 359,100    
FL5 Mortgage Assets      
Variable Interest Entities And Collateralized Loan Obligation [Line Items]      
Number of secured credit facilities | CreditFacility 17    
Loans and leases receivable unpaid principal balance $ 805,700    
Collateralized loan obligations | TRTX 2022-FL5      
Variable Interest Entities And Collateralized Loan Obligation [Line Items]      
Deferred financing costs, including issuance, legal, and accounting related costs   6,500  
Collateralized loan obligations | TRTX 2021-FL4      
Variable Interest Entities And Collateralized Loan Obligation [Line Items]      
Deferred financing costs, including issuance, legal, and accounting related costs   8,300  
Collateralized loan obligations | TRTX 2019-FL3      
Variable Interest Entities And Collateralized Loan Obligation [Line Items]      
Deferred financing costs, including issuance, legal, and accounting related costs   7,800  
Collateralized loan obligations | FL2-Notes      
Variable Interest Entities And Collateralized Loan Obligation [Line Items]      
Deferred financing costs, including issuance, legal, and accounting related costs   $ 8,700  
v3.22.2
Variable Interest Entities and Collateralized Loan Obligations - Summary of Variable Interest Entities Assets and Liabilities (Details)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2022
USD ($)
loan
Dec. 31, 2021
USD ($)
Assets    
Cash and cash equivalents [1] $ 355,994 $ 260,635
Collateralized loan obligation proceeds held at trustee [1] 130,908 204
Accounts receivable from servicer/trustee [1] 259,823 176
Loans held for investment, net [1] 4,617,254 4,867,203
Total assets [1] 5,395,089 5,218,020
Liabilities    
Accrued interest payable [1] 4,300 2,723
Collateralized loan obligations, net [1] 2,639,314 2,545,691
Payable to affiliates [1] 11,039 5,609
Total liabilities [1] 3,953,161 3,753,314
Loans held for investment [1] 4,701,410 4,909,202
Unamortized deferred financing costs 12,600 10,300
FL5 Securities | Collateralized loan obligations    
Liabilities    
Cash available to acquire eligible assets 59,200  
FL4 Securities    
Liabilities    
Cash available to acquire eligible assets   200
FL4 Securities | Collateralized loan obligations    
Liabilities    
Cash available to acquire eligible assets 71,700  
TRTX 2022-FL5    
Liabilities    
Principal repayments of loans held for investment held by servicer/trustee, net 83,600  
TRTX 2021-FL4    
Liabilities    
Principal repayments of loans held for investment held by servicer/trustee, net 150,500  
TRTX 2019-FL3    
Liabilities    
Principal repayments of loans held for investment held by servicer/trustee, net 25,500  
Variable Interest Entity, Primary Beneficiary    
Assets    
Cash and cash equivalents 25,967 28,167
Collateralized loan obligation proceeds held at trustee 130,908 204
Accounts receivable from servicer/trustee 259,796 150
Accrued interest receivable 5,806 6,765
Loans held for investment, net 2,808,158 3,138,603
Total assets 3,230,635 3,173,889
Liabilities    
Accrued interest payable 2,687 1,823
Accrued expenses 310 1,490
Collateralized loan obligations, net 2,639,314 2,545,691
Payable to affiliates 6,731 3,830
Total liabilities $ 2,649,042 2,552,834
Number of loans held for investment | loan 1  
Loans held for investment $ 1,600 $ 100
[1] The Company’s consolidated Total Assets and Total Liabilities as of June 30, 2022 include assets and liabilities of variable interest entities (“VIEs”) of $3.2 billion and $2.6 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2021 include assets and liabilities of VIEs of $3.2 billion and $2.6 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details.
v3.22.2
Variable Interest Entities and Collateralized Loan Obligations - Schedule of Borrowings and Corresponding Collateral (Details)
$ in Thousands
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2022
USD ($)
loan
Jun. 30, 2021
USD ($)
Jun. 30, 2022
USD ($)
loan
Jun. 30, 2021
USD ($)
Dec. 31, 2021
USD ($)
loan
Debt Instrument [Line Items]          
Other loan held for investment, net $ 1,600   $ 1,600    
Interest expense 28,008 $ 22,017 50,509 $ 42,307  
Amortization of deferred financing costs     7,400 7,644  
FL2-Notes          
Debt Instrument [Line Items]          
Loans held for investment, aggregate unpaid principal balance percentage         16.40%
TRTX 2019-FL3          
Debt Instrument [Line Items]          
Loans held for investment, aggregate unpaid principal balance percentage         22.50%
TRTX 2021-FL4          
Debt Instrument [Line Items]          
Loans held for investment, aggregate unpaid principal balance percentage         25.40%
TRTX 2022-FL5          
Debt Instrument [Line Items]          
Amortization of deferred financing costs     1,100    
Collateralized loan obligations          
Debt Instrument [Line Items]          
Interest expense 18,200 13,500 32,500 22,000  
Amortization of deferred financing costs $ 1,900 $ 1,700 $ 4,100 $ 2,900  
Collateralized loan obligations | FL3 Mortgage Assets          
Debt Instrument [Line Items]          
Loans held for investment, aggregate unpaid principal balance percentage 19.10%   19.10%    
Collateralized loan obligations | Collateral (Loan Investments)          
Debt Instrument [Line Items]          
Weighted average credit spread (in percent) 3.16%   3.16%   3.24%
Weighted average maturity (years)     2 years 8 months 12 days   2 years 8 months 12 days
Collateralized loan obligations | Debt (Notes Issued)          
Debt Instrument [Line Items]          
Number of loans | loan 3   3   3
Collateral (loans), outstanding principal $ 2,651,920   $ 2,651,920   $ 2,555,988
Collateral (loans), carrying value $ 2,639,314   $ 2,639,314   $ 2,545,691
Weighted average credit spread (in percent) 1.74%   1.74%   1.55%
Weighted average maturity (years)     15 years 1 month 6 days   15 years 2 months 12 days
Collateralized loan obligations | LIBOR | Collateral (Loan Investments)          
Debt Instrument [Line Items]          
Number of loans | loan 53   53   60
Collateralized loan obligations | FL2-Notes | Collateral (Loan Investments)          
Debt Instrument [Line Items]          
Weighted average credit spread (in percent)         3.39%
Weighted average maturity (years)         2 years
Collateralized loan obligations | FL2-Notes | Debt (Notes Issued)          
Debt Instrument [Line Items]          
Weighted average credit spread (in percent)         1.56%
Weighted average maturity (years)         15 years 10 months 24 days
Collateralized loan obligations | TRTX 2019-FL3 | Collateral (Loan Investments)          
Debt Instrument [Line Items]          
Weighted average credit spread (in percent) 3.15%   3.15%   3.19%
Weighted average maturity (years)     1 year 8 months 12 days   2 years 2 months 12 days
Collateralized loan obligations | TRTX 2019-FL3 | Debt (Notes Issued)          
Debt Instrument [Line Items]          
Weighted average credit spread (in percent) 1.57%   1.57%   1.48%
Weighted average maturity (years)     12 years 3 months 18 days   12 years 9 months 18 days
Collateralized loan obligations | TRTX 2019-FL3 | LIBOR | Collateral (Loan Investments)          
Debt Instrument [Line Items]          
Number of loans | loan 15   15   17
Collateralized loan obligations | TRTX 2019-FL3 | LIBOR | Debt (Notes Issued)          
Debt Instrument [Line Items]          
Number of loans | loan         1
Collateralized loan obligations | TRTX 2019-FL3 | SOFR | Debt (Notes Issued)          
Debt Instrument [Line Items]          
Number of loans | loan 1   1    
Collateral (loans), outstanding principal $ 707,389   $ 707,389   $ 600,001
Collateral (loans), carrying value $ 705,884   $ 705,884   $ 599,394
Collateralized loan obligations | TRTX 2021-FL4 | Collateral (Loan Investments)          
Debt Instrument [Line Items]          
Weighted average credit spread (in percent) 3.06%   3.06%   3.19%
Weighted average maturity (years)     2 years 10 months 24 days   3 years 1 month 6 days
Collateralized loan obligations | TRTX 2021-FL4 | Debt (Notes Issued)          
Debt Instrument [Line Items]          
Weighted average credit spread (in percent) 1.60%   1.60%   1.60%
Weighted average maturity (years)     15 years 8 months 12 days   16 years 2 months 12 days
Collateralized loan obligations | TRTX 2021-FL4 | LIBOR          
Debt Instrument [Line Items]          
Participating interest $ 27,700   $ 27,700    
Collateralized loan obligations | TRTX 2021-FL4 | LIBOR | Collateral (Loan Investments)          
Debt Instrument [Line Items]          
Number of loans | loan 21   21   19
Collateralized loan obligations | TRTX 2021-FL4 | LIBOR | Debt (Notes Issued)          
Debt Instrument [Line Items]          
Number of loans | loan 1   1    
Collateral (loans), outstanding principal $ 1,037,500   $ 1,037,500   $ 918,487
Collateral (loans), carrying value $ 1,032,109   $ 1,032,109   $ 915,451
Collateralized loan obligations | TRTX 2021-FL4 | SOFR | Debt (Notes Issued)          
Debt Instrument [Line Items]          
Number of loans | loan         1
Collateralized loan obligations | TRTX 2022-FL5 | Collateral (Loan Investments)          
Debt Instrument [Line Items]          
Weighted average credit spread (in percent) 3.28%   3.28%    
Weighted average maturity (years)     3 years 3 months 18 days    
Collateralized loan obligations | TRTX 2022-FL5 | Debt (Notes Issued)          
Debt Instrument [Line Items]          
Weighted average credit spread (in percent) 2.02%   2.02%    
Weighted average maturity (years)     16 years 7 months 6 days    
Collateralized loan obligations | TRTX 2022-FL5 | LIBOR          
Debt Instrument [Line Items]          
Participating interest $ 16,800   $ 16,800    
Collateralized loan obligations | TRTX 2022-FL5 | LIBOR | Collateral (Loan Investments)          
Debt Instrument [Line Items]          
Number of loans | loan 17   17   24
Collateralized loan obligations | TRTX 2022-FL5 | LIBOR | Debt (Notes Issued)          
Debt Instrument [Line Items]          
Number of loans | loan         1
Collateralized loan obligations | TRTX 2022-FL5 | Compounded SOFR | Debt (Notes Issued)          
Debt Instrument [Line Items]          
Number of loans | loan 1   1    
Collateral (loans), outstanding principal $ 907,031   $ 907,031   $ 1,037,500
Collateral (loans), carrying value $ 901,321   $ 901,321   1,030,846
Collateralized loan obligations | FL5 Securities          
Debt Instrument [Line Items]          
Loans held for investment, aggregate unpaid principal balance percentage 22.80%   22.80%    
Collateralized loan obligations | FL4 Securities          
Debt Instrument [Line Items]          
Loans held for investment, aggregate unpaid principal balance percentage 26.50%   26.50%    
Collateral Assets | Collateralized loan obligations | LIBOR          
Debt Instrument [Line Items]          
Collateral (loans), outstanding principal $ 3,223,090   $ 3,223,090   3,164,710
Collateral (loans), carrying value 2,806,517   2,806,517   3,138,603
Collateral Assets | Collateralized loan obligations | TRTX 2019-FL3 | LIBOR          
Debt Instrument [Line Items]          
Collateral (loans), outstanding principal 898,090   898,090   805,685
Collateral (loans), carrying value 861,596   861,596   795,815
Collateral Assets | Collateralized loan obligations | TRTX 2021-FL4 | LIBOR          
Debt Instrument [Line Items]          
Collateral (loans), outstanding principal 1,250,000   1,250,000   1,109,229
Collateral (loans), carrying value 1,021,079   1,021,079   1,100,497
Collateralized loan obligations | Collateralized loan obligations | TRTX 2022-FL5 | LIBOR          
Debt Instrument [Line Items]          
Collateral (loans), outstanding principal 1,075,000   1,075,000   1,249,796
Collateral (loans), carrying value $ 923,842   $ 923,842   $ 1,242,291
v3.22.2
Investment Portfolio Financing - Schedule of Debt (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Debt Instrument [Line Items]    
Outstanding principal amount $ 3,917,842 $ 3,722,199
Collateralized loan obligations    
Debt Instrument [Line Items]    
Outstanding principal amount 2,651,920 2,555,988
Secured credit agreements    
Debt Instrument [Line Items]    
Outstanding principal amount 1,089,655 1,166,211
Secured revolving credit facility    
Debt Instrument [Line Items]    
Outstanding principal amount 52,065 0
Asset-specific financing arrangements    
Debt Instrument [Line Items]    
Outstanding principal amount $ 124,202 $ 0
v3.22.2
Investment Portfolio Financing - Schedule of Information Related to Secured Credit Agreements (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended 12 Months Ended
Apr. 15, 2022
Feb. 01, 2022
Jun. 30, 2022
Jun. 30, 2022
Dec. 31, 2021
Apr. 11, 2022
Apr. 10, 2022
Debt Instrument [Line Items]              
Balance outstanding     $ 3,917,842 $ 3,917,842 $ 3,722,199    
Secured Credit Agreements and Secured Credit Facilities              
Debt Instrument [Line Items]              
Commitment amount     2,849,546 2,849,546 3,072,901    
Maximum current availability     1,759,891 1,759,891 1,906,690    
Balance outstanding     1,089,655 1,089,655 1,166,211    
Principal balance of collateral     1,488,014 1,488,014 1,719,735    
Amortized cost of collateral     $ 1,482,023 1,482,023 1,711,457    
Secured credit agreements              
Debt Instrument [Line Items]              
Recourse guarantee percentage     25.00%        
Commitment amount           $ 500,000 $ 750,000
Balance outstanding     $ 1,089,655 $ 1,089,655 $ 1,166,211    
Accordion feature, decrease amount           $ 250,000  
Reduction in borrowings $ 9,400 $ 9,400          
Holdco | Secured credit agreements              
Debt Instrument [Line Items]              
Recourse guarantee percentage       25.00% 25.00%    
Goldman Sachs | Debt Instrument, Interest Rate at 3.5% | Secured Credit Agreements and Secured Credit Facilities              
Debt Instrument [Line Items]              
Initial maturity date       Aug. 19, 2022      
Extended maturity date       Aug. 19, 2024      
Weighted average credit spread (in percent)     1.80% 1.80%      
Interest rate (in percent)     3.50% 3.50%      
Commitment amount     $ 500,000 $ 500,000      
Maximum current availability     94,044 94,044      
Balance outstanding     405,956 405,956      
Principal balance of collateral     540,261 540,261      
Amortized cost of collateral     $ 539,727 $ 539,727      
Goldman Sachs | Debt Instrument, Interest Rate at 2.1% | Secured Credit Agreements and Secured Credit Facilities              
Debt Instrument [Line Items]              
Initial maturity date         Aug. 19, 2022    
Extended maturity date         Aug. 19, 2024    
Weighted average credit spread (in percent)         2.00%    
Interest rate (in percent)         2.10%    
Commitment amount         $ 250,000    
Maximum current availability         153,680    
Balance outstanding         96,320    
Principal balance of collateral         158,177    
Amortized cost of collateral         $ 157,550    
Wells Fargo | Debt Instrument, Interest Rate at 3.3% | Secured Credit Agreements and Secured Credit Facilities              
Debt Instrument [Line Items]              
Initial maturity date       Apr. 18, 2025      
Extended maturity date       Apr. 18, 2025      
Weighted average credit spread (in percent)     1.60% 1.60%      
Interest rate (in percent)     3.30% 3.30%      
Commitment amount     $ 500,000 $ 500,000      
Maximum current availability     118,001 118,001      
Balance outstanding     381,999 381,999      
Principal balance of collateral     515,891 515,891      
Amortized cost of collateral     $ 511,618 $ 511,618      
Wells Fargo | Debt Instrument, Interest Rate at 1.7% | Secured Credit Agreements and Secured Credit Facilities              
Debt Instrument [Line Items]              
Initial maturity date         Apr. 18, 2022    
Extended maturity date         Apr. 18, 2024    
Weighted average credit spread (in percent)         1.60%    
Interest rate (in percent)         1.70%    
Commitment amount         $ 750,000    
Maximum current availability         179,784    
Balance outstanding         570,216    
Principal balance of collateral         779,791    
Amortized cost of collateral         $ 773,868    
Barclays | Debt Instrument, Interest Rate at 3.3% | Secured Credit Agreements and Secured Credit Facilities              
Debt Instrument [Line Items]              
Initial maturity date       Aug. 13, 2025      
Extended maturity date       Aug. 13, 2026      
Weighted average credit spread (in percent)     1.60% 1.60%      
Interest rate (in percent)     3.30% 3.30%      
Commitment amount     $ 500,000 $ 500,000      
Maximum current availability     399,499 399,499      
Balance outstanding     100,501 100,501      
Principal balance of collateral     134,408 134,408      
Amortized cost of collateral     $ 133,661 $ 133,661      
Barclays | Debt Instrument, Interest Rate at 1.7% | Secured Credit Agreements and Secured Credit Facilities              
Debt Instrument [Line Items]              
Initial maturity date         Aug. 13, 2022    
Extended maturity date         Aug. 13, 2023    
Weighted average credit spread (in percent)         1.50%    
Interest rate (in percent)         1.70%    
Commitment amount         $ 750,000    
Maximum current availability         726,686    
Balance outstanding         23,314    
Principal balance of collateral         41,294    
Amortized cost of collateral         $ 41,058    
Morgan Stanley Bank | Debt Instrument, Interest Rate at 4.0% | Secured Credit Agreements and Secured Credit Facilities              
Debt Instrument [Line Items]              
Initial maturity date       May 04, 2023      
Extended maturity date       May 04, 2023      
Weighted average credit spread (in percent)     2.30% 2.30%      
Interest rate (in percent)     4.00% 4.00%      
Commitment amount     $ 500,000 $ 500,000      
Maximum current availability     446,975 446,975      
Balance outstanding     53,025 53,025      
Principal balance of collateral     75,661 75,661      
Amortized cost of collateral     $ 75,599 $ 75,599      
Morgan Stanley Bank | Debt Instrument, Interest Rate at 2.1% | Secured Credit Agreements and Secured Credit Facilities              
Debt Instrument [Line Items]              
Initial maturity date         May 04, 2022    
Extended maturity date         May 04, 2023    
Weighted average credit spread (in percent)         2.00%    
Interest rate (in percent)         2.10%    
Commitment amount         $ 500,000    
Maximum current availability         319,269    
Balance outstanding         180,731    
Principal balance of collateral         255,125    
Amortized cost of collateral         $ 254,559    
JP Morgan Chase Bank | Debt Instrument, Interest Rate at 3.4% | Secured Credit Agreements and Secured Credit Facilities              
Debt Instrument [Line Items]              
Initial maturity date       Oct. 30, 2023      
Extended maturity date       Oct. 30, 2025      
Weighted average credit spread (in percent)     1.70% 1.70%      
Interest rate (in percent)     3.40% 3.40%      
Commitment amount     $ 400,000 $ 400,000      
Maximum current availability     275,372 275,372      
Balance outstanding     124,628 124,628      
Principal balance of collateral     178,701 178,701      
Amortized cost of collateral     $ 178,326 $ 178,326      
JP Morgan Chase Bank | Debt Instrument, Interest Rate at 1.8% | Secured Credit Agreements and Secured Credit Facilities              
Debt Instrument [Line Items]              
Initial maturity date         Oct. 30, 2023    
Extended maturity date         Oct. 30, 2025    
Weighted average credit spread (in percent)         1.70%    
Interest rate (in percent)         1.80%    
Commitment amount         $ 400,000    
Maximum current availability         290,523    
Balance outstanding         109,477    
Principal balance of collateral         200,148    
Amortized cost of collateral         $ 199,246    
US Bank | Debt Instrument, Interest Rate at 1.7% | Secured Credit Agreements and Secured Credit Facilities              
Debt Instrument [Line Items]              
Initial maturity date         Jul. 09, 2022    
Extended maturity date         Jul. 09, 2024    
Weighted average credit spread (in percent)         1.40%    
Interest rate (in percent)         1.70%    
Commitment amount         $ 44,730    
Maximum current availability         10,748    
Balance outstanding         33,982    
Principal balance of collateral         59,060    
Amortized cost of collateral         $ 59,060    
Bank of America | Debt Instrument, Interest Rate at 0% | Secured Credit Agreements and Secured Credit Facilities              
Debt Instrument [Line Items]              
Initial maturity date       Sep. 29, 2022      
Extended maturity date       Sep. 29, 2022      
Weighted average credit spread (in percent)     0.00% 0.00%      
Interest rate (in percent)     0.00% 0.00%      
Commitment amount     $ 200,000 $ 200,000      
Maximum current availability     200,000 200,000      
Balance outstanding     0 0      
Principal balance of collateral     0 0      
Amortized cost of collateral     $ 0 $ 0      
Bank of America | Debt Instrument, Interest Rate at 1.9% | Secured Credit Agreements and Secured Credit Facilities              
Debt Instrument [Line Items]              
Initial maturity date         Sep. 29, 2022    
Extended maturity date         Sep. 29, 2022    
Weighted average credit spread (in percent)         1.80%    
Interest rate (in percent)         1.90%    
Commitment amount         $ 128,625    
Maximum current availability         0    
Balance outstanding         128,625    
Principal balance of collateral         183,750    
Amortized cost of collateral         $ 183,750    
Institutional financing | Debt Instrument, Interest Rate at 6.3% | Secured Credit Agreements and Secured Credit Facilities              
Debt Instrument [Line Items]              
Initial maturity date       Oct. 30, 2023      
Extended maturity date       Oct. 30, 2025      
Weighted average credit spread (in percent)     4.50% 4.50%      
Interest rate (in percent)     6.30% 6.30%      
Commitment amount     $ 249,546 $ 249,546      
Maximum current availability     226,000 226,000      
Balance outstanding     23,546 23,546      
Principal balance of collateral     43,092 43,092      
Amortized cost of collateral     $ 43,092 $ 43,092      
Institutional financing | Debt Instrument, Interest Rate at 4.8% | Secured Credit Agreements and Secured Credit Facilities              
Debt Instrument [Line Items]              
Initial maturity date         Oct. 30, 2023    
Extended maturity date         Oct. 30, 2025    
Weighted average credit spread (in percent)         4.50%    
Interest rate (in percent)         4.80%    
Commitment amount         $ 249,546    
Maximum current availability         226,000    
Balance outstanding         23,546    
Principal balance of collateral         42,390    
Amortized cost of collateral         $ 42,366    
v3.22.2
Investment Portfolio Financing - Additional Information (Details)
$ in Thousands, shares in Millions
 3 Months Ended 6 Months Ended 12 Months Ended
Apr. 26, 2022
loan
Apr. 11, 2022
USD ($)
Feb. 22, 2022
USD ($)
lender
Jun. 30, 2022
USD ($)
loan
Jun. 30, 2022
USD ($)
Agreement
loan
Jun. 30, 2021
USD ($)
Dec. 31, 2021
Agreement
loan
Jun. 16, 2021
shares
Debt Instrument [Line Items]                
Amortization of deferred financing costs         $ 7,400 $ 7,644    
Payments on secured financing         $ 871,970 $ 868,083    
Number of loan investments | loan       2 2      
TRTX 2022-FL5                
Debt Instrument [Line Items]                
Amortization of deferred financing costs         $ 1,100      
Secured revolving credit facility                
Debt Instrument [Line Items]                
Maximum commitment amount     $ 250,000 $ 69,400 $ 69,400      
Number of lenders provided credit facility | lender     5          
Credit facility term     3 years          
Percentage of unused fee (in basis points)       0.20% 0.20%      
Unused fee, Target utilization percent (in percent)     50.00%          
Maximum period permits to finance eligible loans     180 days          
Initial advance rate (in percent)     75.00%          
Outstanding borrowings       $ 52,100 $ 52,100      
Secured revolving credit facility | Minimum                
Debt Instrument [Line Items]                
Percentage of unused fee (in basis points)     0.15%          
Secured revolving credit facility | Maximum                
Debt Instrument [Line Items]                
Percentage of unused fee (in basis points)     0.20%          
SOFR | Secured revolving credit facility                
Debt Instrument [Line Items]                
Line of credit, spread on variable rate (in percent)     2.00%          
Secured credit agreements                
Debt Instrument [Line Items]                
Number of secured credit agreements | Agreement         6   7  
Recourse guarantee percentage       25.00%        
Secured credit agreements | US Bank                
Debt Instrument [Line Items]                
Payments on secured financing   $ 34,000            
Asset-specific financing arrangements | Office Property Mortgage Loan                
Debt Instrument [Line Items]                
Credit facility term 2 years              
Number of performing first mortgage loans | loan 1              
Asset-specific financing arrangements | BMO Facility                
Debt Instrument [Line Items]                
Maximum commitment amount       $ 200,000 $ 200,000      
Mortgages                
Debt Instrument [Line Items]                
Mortgage loan payable       50,000 50,000      
Posted cash to pre-fund interest payments       $ 2,400 $ 2,400      
Mortgages | LIBOR                
Debt Instrument [Line Items]                
Line of credit, spread on variable rate (in percent)         4.50%      
Series B Preferred Stock                
Debt Instrument [Line Items]                
Covenant maximum debt equity ratio         3.0      
Redeemed outstanding shares | shares               9
Holdco | Secured revolving credit facility                
Debt Instrument [Line Items]                
Recourse guarantee percentage     100.00%          
Holdco | Secured credit agreements                
Debt Instrument [Line Items]                
Recourse guarantee percentage         25.00%   25.00%  
Holdco | Asset-specific financing arrangements                
Debt Instrument [Line Items]                
Recourse guarantee percentage 25.00%              
Holdco | Asset-specific financing arrangements | Office Property Mortgage Loan                
Debt Instrument [Line Items]                
Recourse guarantee percentage 15.00%              
Commercial Mortgage Loans | Secured credit agreements                
Debt Instrument [Line Items]                
Number of secured credit facilities | loan         54   53  
Interest Rate Floor | Mortgages | LIBOR                
Debt Instrument [Line Items]                
Line of credit, spread on variable rate (in percent)       0.50%        
Rate Cap | Mortgages                
Debt Instrument [Line Items]                
Line of credit, spread on variable rate (in percent)       0.50%        
After 90 days from initial borrowing | Secured revolving credit facility                
Debt Instrument [Line Items]                
Initial advance rate (in percent)     65.00%          
After 135 days from initial borrowing | Secured revolving credit facility                
Debt Instrument [Line Items]                
Initial advance rate (in percent)     45.00%          
After 180 days from initial borrowing | Secured revolving credit facility                
Debt Instrument [Line Items]                
Initial advance rate (in percent)     0.00%          
Company transfers rights to counter party with option to buy back | Secured credit agreements                
Debt Instrument [Line Items]                
Number of secured credit agreements | loan         5      
v3.22.2
Investment Portfolio Financing - Summary of Secured Credit Agreements Secured by Mortgage Loan Investments, CRE Debt Securities and Counterparty Concentration Risks (Details) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2022
Dec. 31, 2021
Repurchase Agreement Counterparty [Line Items]    
Amount payable $ 3,917,842  
Accrued interest payable [1] 4,300 $ 2,723
Unamortized deferred financing costs 12,600 10,300
Secured Credit Agreements and Secured Credit Facilities    
Repurchase Agreement Counterparty [Line Items]    
Commitment amount 2,849,546 3,072,901
Collateral (loans), outstanding principal 1,488,014 1,719,735
Amortized cost of collateral 1,488,842 1,719,489
Amount payable 1,092,105 1,167,323
Net counterparty exposure $ 396,737 $ 552,165
Days to extended maturity 969 days 794 days
Commercial Mortgage Loans    
Repurchase Agreement Counterparty [Line Items]    
Accrued interest receivable $ 6,800 $ 8,000
Premium, discount and origination fees 6,000 8,800
Accrued interest payable 2,500 1,100
Unamortized deferred financing costs 2,200 4,000
Goldman Sachs Bank | Commercial Mortgage Loans    
Repurchase Agreement Counterparty [Line Items]    
Commitment amount 500,000 250,000
Collateral (loans), outstanding principal 540,261 158,177
Amortized cost of collateral 542,450 159,269
Amount payable 406,732 96,389
Net counterparty exposure $ 135,718 $ 62,880
Percent of stockholders' equity 9.40% 4.30%
Days to extended maturity 781 days 962 days
Wells Fargo | Commercial Mortgage Loans    
Repurchase Agreement Counterparty [Line Items]    
Commitment amount $ 500,000 $ 750,000
Collateral (loans), outstanding principal 515,891 779,791
Amortized cost of collateral 514,144 776,196
Amount payable 382,320 570,839
Net counterparty exposure $ 131,824 $ 205,357
Percent of stockholders' equity 9.10% 14.00%
Days to extended maturity 1023 days 839 days
Barclays | Commercial Mortgage Loans    
Repurchase Agreement Counterparty [Line Items]    
Commitment amount $ 500,000 $ 750,000
Collateral (loans), outstanding principal 134,408 41,294
Amortized cost of collateral 133,922 41,019
Amount payable 100,648 23,330
Net counterparty exposure $ 33,274 $ 17,689
Percent of stockholders' equity 2.30% 1.20%
Days to extended maturity 1505 days 590 days
Morgan Stanley Bank | Commercial Mortgage Loans    
Repurchase Agreement Counterparty [Line Items]    
Commitment amount $ 500,000 $ 500,000
Collateral (loans), outstanding principal 75,661 255,125
Amortized cost of collateral 75,736 255,858
Amount payable 53,404 180,891
Net counterparty exposure $ 22,332 $ 74,967
Percent of stockholders' equity 1.50% 5.10%
Days to extended maturity 308 days 489 days
JP Morgan Chase Bank | Commercial Mortgage Loans    
Repurchase Agreement Counterparty [Line Items]    
Commitment amount $ 649,546 $ 649,546
Collateral (loans), outstanding principal 221,793 242,538
Amortized cost of collateral 222,590 243,181
Amount payable 149,001 133,191
Net counterparty exposure $ 73,589 $ 109,990
Percent of stockholders' equity 5.10% 7.50%
Days to extended maturity 1218 days 1399 days
US Bank | Commercial Mortgage Loans    
Repurchase Agreement Counterparty [Line Items]    
Commitment amount   $ 44,730
Collateral (loans), outstanding principal   59,060
Amortized cost of collateral   59,435
Amount payable   34,035
Net counterparty exposure   $ 25,400
Percent of stockholders' equity   1.70%
Days to extended maturity   921 days
Bank of America | Commercial Mortgage Loans    
Repurchase Agreement Counterparty [Line Items]    
Commitment amount $ 200,000 $ 128,625
Collateral (loans), outstanding principal 0 183,750
Amortized cost of collateral 0 184,531
Amount payable 0 128,648
Net counterparty exposure $ 0 $ 55,883
Percent of stockholders' equity 0.00% 3.80%
Days to extended maturity 91 days 272 days
[1] The Company’s consolidated Total Assets and Total Liabilities as of June 30, 2022 include assets and liabilities of variable interest entities (“VIEs”) of $3.2 billion and $2.6 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2021 include assets and liabilities of VIEs of $3.2 billion and $2.6 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details.
v3.22.2
Investment Portfolio Financing - Asset-Specific Financing Arrangements (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Debt Instrument [Line Items]    
Outstanding principal amount $ 3,917,842 $ 3,722,199
Long-term Debt 3,917,842  
Unamortized deferred financing costs 8,800 10,100
Asset-specific financing arrangements    
Debt Instrument [Line Items]    
Outstanding principal amount 124,202 $ 0
Long-term Debt 124,202  
Asset-specific financing arrangements | Financing    
Debt Instrument [Line Items]    
Debt, face value 289,802  
Outstanding principal amount 124,202  
Long-term Debt $ 123,579  
Weighted average credit spread (in percent) 3.60%  
Weighted Average Term 2 years 7 months 6 days  
Unamortized deferred financing costs $ 600  
Asset-specific financing arrangements | Collateral    
Debt Instrument [Line Items]    
Outstanding principal amount $ 251,603  
Weighted Average Term 1 year 4 months 24 days  
Amortized cost of collateral $ 247,107  
Axos Bank | Asset-specific financing arrangements | Financing    
Debt Instrument [Line Items]    
Debt, face value 89,802  
Outstanding principal amount 89,802  
Long-term Debt $ 89,351  
Weighted average credit spread (in percent) 4.40%  
Weighted Average Term 1 year 9 months 18 days  
Axos Bank | Asset-specific financing arrangements | Collateral    
Debt Instrument [Line Items]    
Outstanding principal amount $ 208,603  
Weighted Average Term 2 months 12 days  
Amortized cost of collateral $ 204,519  
BMO Facility | Asset-specific financing arrangements | Financing    
Debt Instrument [Line Items]    
Debt, face value 200,000  
Outstanding principal amount 34,400  
Long-term Debt $ 34,228  
Weighted average credit spread (in percent) 1.50%  
Weighted Average Term 4 years 8 months 12 days  
BMO Facility | Asset-specific financing arrangements | Collateral    
Debt Instrument [Line Items]    
Outstanding principal amount $ 43,000  
Weighted Average Term 4 years 8 months 12 days  
Amortized cost of collateral $ 42,588  
v3.22.2
Schedule of Maturities - Schedule of Future Principal Payments (Details)
$ in Thousands
Jun. 30, 2022
USD ($)
Debt Instrument [Line Items]  
2022 $ 465,421
2023 560,246
2024 870,937
2025 562,520
2026 517,287
Thereafter 941,431
Total 3,917,842
Collateralized loan obligations  
Debt Instrument [Line Items]  
2022 465,421
2023 359,047
2024 375,179
2025 27,955
2026 517,287
Thereafter 907,031
Total 2,651,920
Secured credit agreements  
Debt Instrument [Line Items]  
2022 0
2023 201,199
2024 405,956
2025 482,500
2026 0
Thereafter 0
Total 1,089,655
Secured revolving credit facility  
Debt Instrument [Line Items]  
2022 0
2023 0
2024 0
2025 52,065
2026 0
Thereafter 0
Total 52,065
Asset-specific financing arrangements  
Debt Instrument [Line Items]  
2022 0
2023 0
2024 89,802
2025 0
2026 0
Thereafter 34,400
Total $ 124,202
v3.22.2
Fair Value Measurements - Additional Information (Details) - USD ($)
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2022
Jun. 30, 2022
Dec. 31, 2021
Fair Value Disclosures [Abstract]      
Money market funds $ 239,900,000 $ 239,900,000 $ 199,300,000
Threshold period of delinquency 90 days    
Estimated fair value of loans held for investment $ 4,600,000,000 $ 4,600,000,000 $ 4,900,000,000
Weighted average gross spread percentage 3.44% 3.44% 3.39%
Weighted average maturity period   2 years 8 months 12 days 2 years 9 months 18 days
Transfers of financial assets or liabilities with in fair value hierarchy $ 0 $ 0  
v3.22.2
Fair Value Measurements - Summary of Fair Value of Financial Assets and Liabilities (Details) - Estimate of Fair Value Measurement - Fair Value Measurements Nonrecurring - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Loans held for investment    
Financial assets    
Fair value of financial assets $ 4,617,254 $ 4,867,203
Collateralized loan obligations    
Financial liabilities    
Fair value of financial liabilities 2,639,314 2,545,691
Secured credit agreements    
Financial liabilities    
Fair value of financial liabilities 1,087,419 1,162,206
Secured revolving credit facility    
Financial liabilities    
Fair value of financial liabilities 49,997  
Asset-specific financing arrangements    
Financial liabilities    
Fair value of financial liabilities 123,579  
Level I | Loans held for investment    
Financial assets    
Fair value of financial assets 0 0
Level I | Collateralized loan obligations    
Financial liabilities    
Fair value of financial liabilities 0 0
Level I | Secured credit agreements    
Financial liabilities    
Fair value of financial liabilities 0 0
Level I | Secured revolving credit facility    
Financial liabilities    
Fair value of financial liabilities 0  
Level I | Asset-specific financing arrangements    
Financial liabilities    
Fair value of financial liabilities 0  
Level II | Loans held for investment    
Financial assets    
Fair value of financial assets 0 0
Level II | Collateralized loan obligations    
Financial liabilities    
Fair value of financial liabilities 0 0
Level II | Secured credit agreements    
Financial liabilities    
Fair value of financial liabilities 0 0
Level II | Secured revolving credit facility    
Financial liabilities    
Fair value of financial liabilities 0  
Level II | Asset-specific financing arrangements    
Financial liabilities    
Fair value of financial liabilities 0  
Level III | Loans held for investment    
Financial assets    
Fair value of financial assets 4,644,660 4,899,666
Level III | Collateralized loan obligations    
Financial liabilities    
Fair value of financial liabilities 2,656,671 2,558,544
Level III | Secured credit agreements    
Financial liabilities    
Fair value of financial liabilities 1,092,568 $ 1,169,710
Level III | Secured revolving credit facility    
Financial liabilities    
Fair value of financial liabilities 49,997  
Level III | Asset-specific financing arrangements    
Financial liabilities    
Fair value of financial liabilities $ 127,263  
v3.22.2
Income Taxes - Additional Information (Details) - USD ($)
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Dec. 31, 2021
Dec. 31, 2020
Income Tax [Line Items]            
Excise tax percentage 100.00%   100.00%      
Reserve for uncertain income tax positions $ 0   $ 0   $ 0  
Interest for underpayment of income taxes 0   0 $ 0    
Penalties for underpayment of income taxes   $ 0        
Current portion of income tax expense (benefit) 100,000 $ 200,000 $ 200,000 $ 1,200,000    
Effective income tax rate (in percent)     0.30% 1.80%    
Remaining capital loss carryforwards 174,300,000   $ 174,300,000      
Capital loss carryforward $ 13,300,000   13,300,000      
CRE Debt Securities            
Income Tax [Line Items]            
Loss on sale of debt           $ (203,400,000)
Capital gains         15,800,000 $ 0
Remaining capital loss carryforwards         187,600,000  
CRE Debt Securities | Minimum            
Income Tax [Line Items]            
Percentage of REIT taxable income distributed to stockholders 90.00%          
TRSs            
Income Tax [Line Items]            
Deferred tax assets $ 0   0   0  
Deferred tax liabilities, net $ 100,000   $ 100,000   $ 300,000  
REIT Subsidiaries            
Income Tax [Line Items]            
Equity interest percentage by parent 100.00%   100.00%      
Sub-REIT            
Income Tax [Line Items]            
Equity interest percentage by parent 100.00%   100.00%      
U.S. federal corporate tax rate (in percent)     21.00%      
v3.22.2
Related Party Transactions - Additional Information (Details) - USD ($)
 3 Months Ended 6 Months Ended
Jun. 16, 2021
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Dec. 31, 2021
Related Party Transaction [Line Items]            
Incentive management fee percentage of core earnings less seven percent of stockholders equity       20.00%    
Payable to affiliates [1]   $ 11,039,000   $ 11,039,000   $ 5,609,000
Manager            
Related Party Transaction [Line Items]            
Maximum reimbursable expense per annum       $ 1,000,000    
Percentage of allocated reimbursable expense of management agreement       20.00%    
Series B Preferred Stock            
Related Party Transaction [Line Items]            
Percentage of annual base management fee       0.75%    
Decrease in annual base management fee percentage       50.00%    
Redemption of Series B preferred stock 9,000,000          
Preferred stock shares outstanding 0          
Management Agreement            
Related Party Transaction [Line Items]            
Percentage of annual base management fee       1.50%    
Percentage of quarterly base management fee       0.375%    
Percentage multiplied by stockholders equity included in incentive management fee       7.00%    
Payable to affiliates   11,000,000   $ 11,000,000   5,600,000
Incentive management fee   5,200,000 $ 0 5,200,000 $ 0  
Management Agreement | Minimum            
Related Party Transaction [Line Items]            
Management fee payable per annum   250,000   250,000    
Management fee payable per quarter   62,500   62,500    
Post-IPO Management Agreement            
Related Party Transaction [Line Items]            
Amount incurred and reimbursable   300,000 $ 300,000 500,000 $ 500,000  
Reimbursable expenses remained outstanding   $ 0   $ 0   $ 0
[1] The Company’s consolidated Total Assets and Total Liabilities as of June 30, 2022 include assets and liabilities of variable interest entities (“VIEs”) of $3.2 billion and $2.6 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2021 include assets and liabilities of VIEs of $3.2 billion and $2.6 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details.
v3.22.2
Related Party Transactions - Summary of Management Fees and Incentive Management Fees Incurred and Paid Pursuant to Management Agreement (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Related Party Transaction [Line Items]        
Fees Incurred $ 11,039 $ 5,344 $ 16,748 $ 10,437
Fees Paid 5,709 5,094 11,318 10,452
Management Agreement        
Related Party Transaction [Line Items]        
Fees Incurred 5,856 5,344 11,565 10,437
Fees Paid 5,709 5,094 11,318 10,452
Incentive Management        
Related Party Transaction [Line Items]        
Fees Incurred 5,183 0 5,183 0
Fees Paid $ 0 $ 0 $ 0 $ 0
v3.22.2
Earnings per Share - Additional Information (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Participating securities' share in earnings (loss) $ 0.2 $ 0.1 $ 0.4 $ 0.3
Undistributed net income attributable to common stockholders $ 0.2 0.1 $ 0.4 $ 0.3
Warrants        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Average market price of common stock     $ 11.32 $ 11.90
Strike price of common share for warrants outstanding (in USD per share) $ 7.50   $ 7.50  
Series B Preferred Stock        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Adjustments to accretion of discount on preferred stock   $ 24.0   $ 25.4
v3.22.2
Earnings per Share - Schedule of Calculation of Basic and Diluted Earnings per Common Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Mar. 31, 2022
Jun. 30, 2021
Mar. 31, 2021
Jun. 30, 2022
Jun. 30, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]            
Net (loss) income $ (5,434) $ 23,781 $ 32,391 $ 31,955 $ 18,347 $ 64,347
Preferred stock dividends (3,148)   (6,799)   (6,296) (12,923)
Participating securities' share in (loss) earnings (226)   (148)   (423) (294)
Series B Preferred Stock redemption make-whole payment 0   (22,485)   0 (22,485)
Series B Preferred Stock accretion, including allocated Warrant fair value and transaction costs 0   (23,997)   0 (25,449)
Net (loss) income attributable to common stockholders $ (8,808)   $ (21,038)   $ 11,628 $ 3,196
Weighted average common shares outstanding, basic (in shares) 77,188,291   76,899,270   77,186,136 76,897,453
Incremental shares of common stock issued from the assumed exercise of the warrants (in shares) 0   0   4,049,470 4,433,898
Weighted average common shares outstanding, diluted (in shares) 77,188,291   76,899,270   81,235,606 81,331,351
(Loss) earnings per common share, basic (in USD per share) $ (0.11)   $ (0.27)   $ 0.15 $ 0.04
(Loss) earnings per common share, diluted (in USD per share) $ (0.11)   $ (0.27)   $ 0.14 $ 0.04
Series C Preferred Stock            
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]            
Preferred stock shares outstanding, value     $ 600 $ 600   $ 600
Series B Preferred Stock            
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]            
Series B Preferred Stock accretion, including allocated Warrant fair value and transaction costs     $ (22,500)     $ (22,500)
v3.22.2
Stockholders' Equity - Additional Information (Details)
 3 Months Ended 6 Months Ended 13 Months Ended
Jun. 14, 2022
USD ($)
$ / shares
Jun. 13, 2022
USD ($)
$ / shares
Jun. 09, 2022
USD ($)
$ / shares
Jun. 16, 2021
USD ($)
shares
Jun. 14, 2021
USD ($)
shares
May 28, 2020
USD ($)
tranche
$ / shares
shares
Jun. 30, 2022
USD ($)
$ / shares
shares
Mar. 31, 2022
shares
Jun. 30, 2021
USD ($)
shares
Mar. 31, 2021
USD ($)
shares
Jun. 30, 2022
USD ($)
$ / shares
shares
Jun. 30, 2021
USD ($)
shares
Jun. 30, 2022
USD ($)
$ / shares
shares
Dec. 31, 2021
USD ($)
shares
Class Of Stock [Line Items]                            
Proceeds from issuance of Series C Cumulative Redeemable Preferred Stock                     $ 0 $ 201,250,000    
Number of tranches | tranche           3                
Accretion of remaining unamortized discount                 $ 23,997,000 $ 1,452,000        
Common stock, shares outstanding | shares             77,403,381       77,403,381   77,403,381 77,183,892
Dividends paid in cash $ 15,500,000 $ 18,700,000                        
Unpaid dividends             $ 18,726,000 [1]   $ 15,500,000   $ 18,726,000 [1] $ 15,500,000 $ 18,726,000 [1] $ 24,156,000 [1]
Warrants                            
Class Of Stock [Line Items]                            
Warrants to purchase common stock           $ 225,000,000                
Strike price of common share for warrants outstanding (in USD per share) | $ / shares           $ 7.50                
Warrants expiration date           May 28, 2025                
Fair value of warrants           $ 14,400,000                
Warrants exercised (in shares) | shares                     0   0  
Common Stock                            
Class Of Stock [Line Items]                            
Number of common shares issued | shares             217,536 1,953 192,023 110,096        
Dividend payable (in USD per share) | $ / shares $ 0.20 $ 0.24                        
Maximum                            
Class Of Stock [Line Items]                            
Taxable income distribution percentage                     90.00%      
PE Holder L.L.C | Investment Agreement | Tranche One                            
Class Of Stock [Line Items]                            
Warrants to purchase common stock           $ 225,000,000                
PE Holder L.L.C | Investment Agreement | Maximum                            
Class Of Stock [Line Items]                            
Warrants to purchase common stock, authorized (in shares) | shares           15,000,000                
Aggregate cash purchase price           $ 325,000,000                
PE Holder L.L.C | Investment Agreement | Maximum | Tranche One                            
Class Of Stock [Line Items]                            
Warrants to purchase common stock (in shares) | shares           12,000,000                
Equity Distribution Agreement | Common Stock                            
Class Of Stock [Line Items]                            
Number of common shares issued | shares             0   0   0 0    
Gross proceeds from issuance of common stock                     $ 50,900,000      
Aggregate gross sales price of common stock             $ 74,100,000       $ 74,100,000   $ 74,100,000  
Equity Distribution Agreement | Maximum | Common Stock                            
Class Of Stock [Line Items]                            
Percentage of commission to each sales agent, on gross sales price of shares sold                     1.75%      
Series C Preferred Stock                            
Class Of Stock [Line Items]                            
Proceeds from issuance of Series C Cumulative Redeemable Preferred Stock         $ 194,400,000                  
Number of common shares issued | shares         8,050,000                  
Underwriting discount and commissions         $ 6,300,000                  
Issuance costs         $ 600,000                  
Liquidation preference (in USD per share) | $ / shares             $ 25.00       $ 25.00   $ 25.00  
Dividend percentage                     6.25%      
Liquidation preference (in USD per share annually) | $ / shares                     $ 1.5624      
Liquidation preference (in USD per share quarterly) | $ / shares                     0.3906      
Dividend payable (in USD per share) | $ / shares     $ 0.3906       0.4601       0.4601   0.4601  
Redemption price (in USD per share) | $ / shares             $ 25.00       $ 25.00   $ 25.00  
Dividend rate (in percent)         6.25%                  
Preferred stock, liquidation preference per annum             $ 201,250,000       $ 201,250,000   $ 201,250,000 $ 201,250,000
Dividends paid in cash     $ 3,100,000                      
Dividends                     $ 6,300,000      
Series C Preferred Stock | TPG Capital BD, LLC                            
Class Of Stock [Line Items]                            
Payments for underwriting expense         $ 700,000                  
Series C Preferred Stock | Change of Control Event                            
Class Of Stock [Line Items]                            
Redemption price (in USD per share) | $ / shares             $ 25.00       $ 25.00   $ 25.00  
Series B Preferred Stock                            
Class Of Stock [Line Items]                            
Liquidation preference (in USD per share) | $ / shares             $ 25.00       $ 25.00   $ 25.00  
Dividend percentage           11.00%         11.00%      
Dividend payable (in USD per share) | $ / shares $ 0.69                          
Outstanding shares redeemed (in shares) | shares       9,000,000                    
Cash redemption of series B preferred stock       $ 247,500,000                    
Temporary equity, shares outstanding | shares             0       0   0 0
Dividends paid in cash $ 6,200,000                          
Dividends                       $ 12,300,000    
Series B Preferred Stock | Warrants                            
Class Of Stock [Line Items]                            
Fair value of warrants           $ 14,400,000                
Issuance costs           $ 14,200,000                
Series B Preferred Stock | Maximum                            
Class Of Stock [Line Items]                            
Liquidation preference (in percent)           2.00%                
Series B Preferred Stock | PE Holder L.L.C | Investment Agreement                            
Class Of Stock [Line Items]                            
Dividend percentage           11.00%                
Shares authorized to issue and sell | shares           13,000,000                
Par value (in USD per share) | $ / shares           $ 0.001                
Series B Preferred Stock | PE Holder L.L.C | Investment Agreement | Tranche One                            
Class Of Stock [Line Items]                            
Shares issued | shares           9,000,000                
Series A Preferred Stock                            
Class Of Stock [Line Items]                            
Dividend rate (in percent)                     12.50%      
Preferred stock, liquidation preference per annum | $ / shares             $ 0.001       $ 0.001   $ 0.001  
Preferred stock, liquidation preference per annum             $ 125,000       $ 125,000   $ 125,000 $ 125,000
Class A Common Stock                            
Class Of Stock [Line Items]                            
Dividends                     $ 37,400,000 $ 31,000,000    
[1] The Company’s consolidated Total Assets and Total Liabilities as of June 30, 2022 include assets and liabilities of variable interest entities (“VIEs”) of $3.2 billion and $2.6 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2021 include assets and liabilities of VIEs of $3.2 billion and $2.6 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details.
v3.22.2
Stock-based Compensation - Additional Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Accrued shares of common stock for dividends 2,507   4,460  
Stock compensation expense $ 1,328 $ 1,393 $ 2,594 $ 2,849
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   4,600,463  
Share vesting installment period (in years)     4 years  
Total unrecognized compensation cost relating to unvested share-based compensation arrangements $ 8,100   $ 8,100  
Unrecognized compensation cost, recognition period (in years) 1 year 4 months 24 days      
Stock compensation expense $ 1,300 $ 1,400 $ 2,600 $ 2,800
2017 Equity Incentive Plan | Common Stock        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Number of shares, vested (278,821)   (278,821)  
Number of shares, issued 215,029   215,029  
2017 Equity Incentive Plan | Common Stock | Employee Of Affiliate        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Number of shares, issued 120,192   120,192  
Number of shares, forfeited 0   (15,594)  
2017 Equity Incentive Plan | 2023 | Common Stock        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Shares of common stock expected to vest (in shares)     274,041  
2017 Equity Incentive Plan | 2024 | Common Stock        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Shares of common stock expected to vest (in shares)     220,758  
2017 Equity Incentive Plan | 2025 | Common Stock        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Shares of common stock expected to vest (in shares)     136,859  
2017 Equity Incentive Plan | 2026 | Common Stock        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Shares of common stock expected to vest (in shares)     30,048  
v3.22.2
Commitments and Contingencies - Additional Information (Detail) - USD ($)
Jun. 30, 2022
Dec. 31, 2021
Long Term Purchase Commitment [Line Items]    
Unfunded commitments related to loans held for investment $ 470,900,000 $ 487,800,000
COVID-19    
Long Term Purchase Commitment [Line Items]    
Contingencies 0  
Accrued Expenses and Other Liabilities    
Long Term Purchase Commitment [Line Items]    
Allowance for credit losses on loan commitments $ 9,200,000 $ 4,200,000
v3.22.2
Concentration of Credit Risk - Summary of Loans Held for Investment Portfolio by Property Type (Details) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2022
Dec. 31, 2021
Loans And Leases Receivable Disclosure [Line Items]    
Loan commitment $ 5,186,472 $ 5,411,944
Unfunded commitment $ 470,869 $ 487,773
% of loan commitment 100.00% 100.00%
Outstanding principal $ 4,710,161 $ 4,919,343
% of loan UPB 100.00% 100.00%
Office    
Loans And Leases Receivable Disclosure [Line Items]    
Loan commitment $ 1,928,630 $ 2,265,187
Unfunded commitment $ 142,168 $ 178,878
% of loan commitment 37.20% 41.90%
Outstanding principal $ 1,786,462 $ 2,086,309
% of loan UPB 37.80% 42.40%
Multifamily    
Loans And Leases Receivable Disclosure [Line Items]    
Loan commitment $ 1,865,326 $ 1,595,643
Unfunded commitment $ 133,194 $ 121,211
% of loan commitment 36.00% 29.50%
Outstanding principal $ 1,732,132 $ 1,474,731
% of loan UPB 36.80% 30.00%
Hotel    
Loans And Leases Receivable Disclosure [Line Items]    
Loan commitment $ 493,944 $ 658,943
Unfunded commitment $ 4,000 $ 4,000
% of loan commitment 9.50% 12.20%
Outstanding principal $ 492,359 $ 657,672
% of loan UPB 10.50% 13.40%
Life Science    
Loans And Leases Receivable Disclosure [Line Items]    
Loan commitment $ 404,600 $ 494,600
Unfunded commitment $ 146,367 $ 163,860
% of loan commitment 7.80% 9.10%
Outstanding principal $ 258,233 $ 330,740
% of loan UPB 5.50% 6.70%
Mixed-Use    
Loans And Leases Receivable Disclosure [Line Items]    
Loan commitment $ 285,340 $ 347,408
Unfunded commitment $ 15,230 $ 17,681
% of loan commitment 5.50% 6.40%
Outstanding principal $ 270,110 $ 329,728
% of loan UPB 5.70% 6.70%
Industrial    
Loans And Leases Receivable Disclosure [Line Items]    
Loan commitment $ 113,000  
Unfunded commitment $ 6,167  
% of loan commitment 2.20%  
Outstanding principal $ 106,833  
% of loan UPB 2.30%  
Other    
Loans And Leases Receivable Disclosure [Line Items]    
Loan commitment $ 50,600  
Unfunded commitment $ 21,600  
% of loan commitment 1.00%  
Outstanding principal $ 29,000  
% of loan UPB 0.60%  
Retail    
Loans And Leases Receivable Disclosure [Line Items]    
Loan commitment $ 33,000 $ 33,000
Unfunded commitment $ 2,143 $ 2,143
% of loan commitment 0.60% 0.60%
Outstanding principal $ 23,000 $ 23,000
% of loan UPB 0.50% 0.50%
Non-drawable outstanding unfunded loan commitments $ 2,100 $ 2,100
Condominium    
Loans And Leases Receivable Disclosure [Line Items]    
Loan commitment 12,032 17,163
Unfunded commitment $ 0 $ 0
% of loan commitment 0.20% 0.30%
Outstanding principal $ 12,032 $ 17,163
% of loan UPB 0.30% 0.30%
Participation interests in whole mortgage loans related to one project and borrower (in percent) 24.00% 24.00%
v3.22.2
Concentration of Credit Risk - Additional Information (Details) - USD ($)
 6 Months Ended 12 Months Ended
Jun. 30, 2022
Dec. 31, 2021
Risks and Uncertainties [Abstract]    
Loan commitment capitalized interest $ 2,400,000 $ 3,000,000
Commitment related to non-performing retail loan held for investment $ 7,800,000 $ 7,800,000
v3.22.2
Concentration of Credit Risk - Summary of Geographic Composition of Loans Held for Investment Based on Current UPB and Loan Commitment (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Loans And Leases Receivable Disclosure [Line Items]    
Loan commitment $ 5,186,472 $ 5,411,944
Unfunded commitment $ 470,869 $ 487,773
% of loan commitment 100.00% 100.00%
Outstanding principal $ 4,710,161 $ 4,919,343
% of loan UPB 100.00% 100.00%
East    
Loans And Leases Receivable Disclosure [Line Items]    
Loan commitment $ 1,942,462 $ 1,925,457
Unfunded commitment $ 71,429 $ 63,459
% of loan commitment 37.50% 35.60%
Outstanding principal $ 1,872,204 $ 1,863,172
% of loan UPB 39.70% 37.80%
West    
Loans And Leases Receivable Disclosure [Line Items]    
Loan commitment $ 1,510,326 $ 1,484,883
Unfunded commitment $ 249,692 $ 244,100
% of loan commitment 29.10% 27.40%
Outstanding principal $ 1,253,479 $ 1,233,628
% of loan UPB 26.60% 25.10%
South    
Loans And Leases Receivable Disclosure [Line Items]    
Loan commitment $ 1,290,922 $ 1,323,800
Unfunded commitment $ 106,851 $ 115,714
% of loan commitment 24.90% 24.50%
Outstanding principal $ 1,184,613 $ 1,208,940
% of loan UPB 25.20% 24.60%
Midwest    
Loans And Leases Receivable Disclosure [Line Items]    
Loan commitment $ 372,762 $ 677,804
Unfunded commitment $ 36,730 $ 64,500
% of loan commitment 7.20% 12.50%
Outstanding principal $ 336,032 $ 613,603
% of loan UPB 7.10% 12.50%
Various    
Loans And Leases Receivable Disclosure [Line Items]    
Loan commitment $ 70,000  
Unfunded commitment $ 6,167  
% of loan commitment 1.30%  
Outstanding principal $ 63,833  
% of loan UPB 1.40%  
v3.22.2
Concentration of Credit Risk - Summary of Loans Held for Investment Portfolio by Loan Category Type (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Loans And Leases Receivable Disclosure [Line Items]    
Loan commitment $ 5,186,472 $ 5,411,944
Unfunded commitment $ 470,869 $ 487,773
% of loan commitment 100.00% 100.00%
Outstanding principal $ 4,710,161 $ 4,919,343
% of loan UPB 100.00% 100.00%
Moderate Transitional    
Loans And Leases Receivable Disclosure [Line Items]    
Loan commitment $ 1,735,717 $ 1,950,739
Unfunded commitment $ 270,443 $ 294,693
% of loan commitment 33.40% 36.10%
Outstanding principal $ 1,466,446 $ 1,657,218
% of loan UPB 31.10% 33.70%
Bridge    
Loans And Leases Receivable Disclosure [Line Items]    
Loan commitment $ 1,684,247 $ 1,646,895
Unfunded commitment $ 49,873 $ 47,459
% of loan commitment 32.50% 30.40%
Outstanding principal $ 1,627,760 $ 1,593,436
% of loan UPB 34.60% 32.40%
Light Transitional    
Loans And Leases Receivable Disclosure [Line Items]    
Loan commitment $ 1,680,908 $ 1,779,310
Unfunded commitment $ 128,953 $ 145,621
% of loan commitment 32.40% 32.90%
Outstanding principal $ 1,551,955 $ 1,633,689
% of loan UPB 32.90% 33.20%
Construction    
Loans And Leases Receivable Disclosure [Line Items]    
Loan commitment $ 85,600 $ 35,000
Unfunded commitment $ 21,600 $ 0
% of loan commitment 1.70% 0.60%
Outstanding principal $ 64,000 $ 35,000
% of loan UPB 1.40% 0.70%
v3.22.2
Subsequent Events - Additional Information (Details)
 1 Months Ended 3 Months Ended 6 Months Ended
Jul. 14, 2022
USD ($)
Aug. 02, 2022
USD ($)
loan
Jun. 30, 2022
USD ($)
Jun. 30, 2021
USD ($)
Jun. 30, 2022
USD ($)
Jun. 30, 2021
USD ($)
Dec. 31, 2021
USD ($)
Subsequent Event [Line Items]              
Total loan commitment     $ 5,186,472,000   $ 5,186,472,000   $ 5,411,944,000
Loans held for investment, net [1]     4,617,254,000   4,617,254,000   4,867,203,000
Total allowance for credit losses [1]     84,156,000   84,156,000   41,999,000
Gain on sale of real estate owned     13,291,000 $ 0 13,291,000 $ 0  
Mortgage Loan, Retail Property | Real Estate              
Subsequent Event [Line Items]              
Amortized cost of loan     23,000,000   23,000,000   23,000,000
First Mortgage Loan, Office Property              
Subsequent Event [Line Items]              
Total allowance for credit losses     11,100,000   11,100,000    
First Mortgage Loan, Office Property | Real Estate              
Subsequent Event [Line Items]              
Amortized cost of loan     55,700,000   55,700,000   $ 55,700,000
Loans held for investment, net     44,600,000   44,600,000    
Total allowance for credit losses     $ 11,100,000   $ 11,100,000    
Subsequent Events | Mortgage Loan, Retail Property | Borrower, Non-Performing Retail Loan              
Subsequent Event [Line Items]              
Proceeds from sale of real estate $ 18,600,000            
Disposal Group, Including Discontinued Operation, Consideration 19,700,000            
Subsequent Events | Mortgage Loan, Retail Property | Real Estate              
Subsequent Event [Line Items]              
Gain (Loss) on Sale of Investments $ 4,400,000            
Four First Mortgage | Subsequent Events              
Subsequent Event [Line Items]              
Number of first mortgage loans originated | loan   7          
Total loan commitment   $ 557,100,000          
Loan commitment principal amount   $ 513,000,000          
First Mortgage Loan | Subsequent Events              
Subsequent Event [Line Items]              
Number of first mortgage loans originated | loan   2          
Total loan commitment   $ 226,600,000          
Loan commitment principal amount   $ 226,200,000          
[1] The Company’s consolidated Total Assets and Total Liabilities as of June 30, 2022 include assets and liabilities of variable interest entities (“VIEs”) of $3.2 billion and $2.6 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities as of December 31, 2021 include assets and liabilities of VIEs of $3.2 billion and $2.6 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.