Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 03, 2018 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | TRTX | |
Entity Registrant Name | TPG RE Finance Trust, Inc. | |
Entity Central Index Key | 1,630,472 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 59,038,875 | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 1,148,402 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | |
ASSETS | |||
Cash and Cash Equivalents | [1] | $ 42,494 | $ 75,037 |
Restricted Cash | [1] | 845 | 700 |
Accounts Receivable | [1] | 37 | 141 |
Accounts Receivable from Servicer/Trustee | [1] | 36,738 | 220 |
Accrued Interest Receivable | [1] | 18,163 | 16,861 |
Loans Held for Investment (includes $2,591,171 and $2,694,106 pledged as collateral under secured revolving repurchase agreements, respectively) | 3,805,551 | 3,175,672 | |
Investment in Commercial Mortgage-Backed Securities, Available-for-Sale (includes $45,675 and $47,762 pledged as collateral under secured revolving repurchase agreements, respectively) | 218,058 | 85,895 | |
Other Assets, net | [1] | 703 | 859 |
Total Assets | [1] | 4,122,589 | 3,355,385 |
Liabilities | |||
Accrued Interest Payable | [1] | 5,462 | 5,385 |
Accrued Expenses | [1] | 5,924 | 5,067 |
Collateralized Loan Obligation (net of deferred financing costs of $6,874 and $0, respectively) | [1] | 734,030 | |
Secured Revolving Repurchase and Senior Secured Agreements (net of deferred financing costs of $7,826 and $8,697, respectively) | 1,952,170 | 1,827,104 | |
Notes Payable (net of deferred financing costs of $673 and $1,601, respectively) | [1] | 200,471 | 287,886 |
Payable to Affiliates | [1] | 6,187 | 5,227 |
Deferred Revenue | [1] | 521 | 317 |
Dividends Payable | [1] | 25,911 | 23,068 |
Total Liabilities | [1] | 2,930,676 | 2,154,054 |
Commitments and Contingencies—See Note 14 | [1] | ||
Stockholders’ Equity: | |||
Preferred Stock ($0.001 par value per share; 100,000,000 and 100,000,000 shares authorized; 0 and 125 shares issued and outstanding, respectively) | [1] | ||
Additional Paid-in-Capital | [1] | 1,216,352 | 1,216,112 |
Accumulated Deficit | [1] | (22,828) | (14,808) |
Accumulated Other Comprehensive (Loss) | (1,672) | (34) | |
Total Stockholders' Equity | [1] | 1,191,913 | 1,201,331 |
Total Liabilities and Stockholders' Equity | [1] | 4,122,589 | 3,355,385 |
Common Stock, Undefined Class | |||
Stockholders’ Equity: | |||
Common Stock Value | [1] | 60 | 60 |
Class A Common Stock | |||
Stockholders’ Equity: | |||
Common Stock Value | [1] | 1 | 1 |
Total Stockholders' Equity | $ 1 | $ 1 | |
[1] | At December 31, 2017, there were no VIE assets or liabilities recorded in the Company’s Total Assets and Total Liabilities. The Company’s consolidated Total Assets and Total Liabilities at June 30, 2018 include VIE assets and liabilities of $945.9 million and $740.1 million, respectively. These assets can be used only to satisfy obligations of the VIE, and creditors of the VIE have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (unaudited) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | |
Preferred stock, par value | $ 0.001 | $ 0.001 | |
Preferred stock, authorized shares | 100,000,000 | 100,000,000 | |
Preferred stock, shares issued | 0 | 125 | |
Preferred stock, shares outstanding | 0 | 125 | |
Common stock, par value | $ 0.001 | $ 0.001 | |
Common stock, authorized shares | 300,000,000 | 300,000,000 | |
Common stock, shares issued | 59,039,965 | 59,440,112 | |
Common stock, shares outstanding | 59,039,965 | 59,440,112 | |
Total assets | [1] | $ 4,122,589 | $ 3,355,385 |
Total liabilities | [1] | 2,930,676 | 2,154,054 |
Variable Interest Entity, Primary Beneficiary | |||
Total assets | 945,900 | 0 | |
Total liabilities | $ 740,100 | $ 0 | |
Class A Common Stock | |||
Common stock, par value | $ 0.001 | $ 0.001 | |
Common stock, authorized shares | 2,500,000 | 2,500,000 | |
Common stock, shares issued | 1,154,547 | 1,178,618 | |
Common stock, shares outstanding | 1,154,547 | 1,178,618 | |
Repurchase Agreements | |||
Loans pledged as collateral | $ 2,591,171 | $ 2,694,106 | |
Deferred financing costs | 7,826 | 8,697 | |
Commercial Mortgage-Backed Securities | Repurchase Agreements | |||
Available-for-sale securities pledged as collateral | 45,675 | 47,762 | |
Collateralized Loan Obligation | |||
Loans pledged as collateral | 896,480 | ||
Deferred financing costs | 6,874 | 0 | |
Notes Payable | |||
Deferred financing costs | $ 673 | $ 1,601 | |
[1] | At December 31, 2017, there were no VIE assets or liabilities recorded in the Company’s Total Assets and Total Liabilities. The Company’s consolidated Total Assets and Total Liabilities at June 30, 2018 include VIE assets and liabilities of $945.9 million and $740.1 million, respectively. These assets can be used only to satisfy obligations of the VIE, and creditors of the VIE have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
INTEREST INCOME | |||||
Interest Income | $ 64,693 | $ 51,736 | $ 124,058 | $ 99,677 | |
Interest Expense | (30,154) | (19,635) | (56,152) | (37,435) | |
Net Interest Income | 34,539 | 32,101 | 67,906 | 62,242 | |
OTHER REVENUE | |||||
Other Income, net | 509 | 245 | 875 | 367 | |
Total Other Revenue | 509 | 245 | 875 | 367 | |
OTHER EXPENSES | |||||
Professional Fees | 855 | 463 | 1,754 | 1,192 | |
General and Administrative | 1,089 | 720 | 2,197 | 1,189 | |
Servicing and Asset Management Fees | 767 | 1,205 | 1,534 | 2,341 | |
Management Fee | 4,763 | 2,768 | 9,467 | 5,356 | |
Collateral Management Fee | 71 | 202 | |||
Incentive Management Fee | 1,146 | 1,805 | 2,072 | 3,386 | |
Total Other Expenses | 8,620 | 7,032 | 17,024 | 13,666 | |
Income Before Income Taxes | 26,428 | 25,314 | 51,757 | 48,943 | |
Income Tax Benefit (Expense) | 10 | 14 | (205) | (140) | |
Net Income | 26,438 | 25,328 | 51,552 | 48,803 | |
Preferred Stock Dividends | (8) | (3) | (8) | ||
Net Income Attributable to Common Stockholders | $ 26,438 | $ 25,320 | $ 51,549 | $ 48,795 | |
Basic Earnings per Common Share | [1] | $ 0.44 | $ 0.52 | $ 0.86 | $ 1 |
Diluted Earnings per Common Share | [1] | $ 0.44 | $ 0.52 | $ 0.86 | $ 1 |
Weighted Average Number of Common Shares Outstanding | |||||
Basic: | [1] | 60,175,373 | 48,664,664 | 60,283,992 | 48,555,950 |
Diluted: | [1] | 60,175,373 | 48,664,664 | 60,283,992 | 48,555,950 |
OTHER COMPREHENSIVE INCOME | |||||
Net Income | $ 26,438 | $ 25,328 | $ 51,552 | $ 48,803 | |
Unrealized (Loss) Gain on Commercial Mortgage-Backed Securities | (1,424) | 56 | (1,638) | 1,288 | |
Comprehensive Net Income | $ 25,014 | $ 25,384 | $ 49,914 | $ 50,091 | |
[1] | Share and per share data reflect the impact of the common stock and Class A common stock dividend which was paid upon completion of the Company’s initial public offering on July 25, 2017 to holders of record as of July 3, 2017. See Note 12 to the Consolidated Financial Statements for details. |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity (Unaudited) - USD ($) $ in Thousands | Total | Class A Common Stock | Preferred Stock | Common Stock | Additional Paid-in-Capital | Accumulated Deficit | Accumulated Other Comprehensive (Loss) Income | |
Balance at Dec. 31, 2016 | $ 970,689 | $ 1 | $ 39 | $ 979,467 | $ (10,068) | $ 1,250 | ||
Balance, Shares at Dec. 31, 2016 | 967,500 | 125 | 38,260,053 | |||||
Issuance of Class A Common Stock | 365 | 365 | ||||||
Issuance of Class A Common Stock, Shares | 14,711 | |||||||
Issuance of Common Stock | 24,635 | $ 1 | 24,634 | |||||
Issuance of Common Stock, Shares | 992,166 | |||||||
Net Income | 48,803 | 48,803 | ||||||
Other Comprehensive Income (Loss) | 1,288 | 1,288 | ||||||
Dividends on Preferred Stock | (8) | (8) | ||||||
Dividends on Common Stock (Dividends Declared per Share) | (40,803) | (40,803) | ||||||
Dividends on Class A Common Stock (Dividends Declared per Share) | (997) | (997) | ||||||
Balance at Jun. 30, 2017 | 1,003,972 | $ 1 | $ 40 | 1,004,466 | (3,073) | 2,538 | ||
Balance, Shares at Jun. 30, 2017 | 982,211 | 125 | 39,252,219 | |||||
Balance at Dec. 31, 2017 | 1,201,331 | [1] | $ 1 | $ 60 | 1,216,112 | (14,808) | (34) | |
Balance, Shares at Dec. 31, 2017 | 1,178,618 | 125 | 59,440,112 | |||||
Issuance of Common Stock, Shares | 19,352 | |||||||
Conversion of Class A Shares to Common Shares | (24,071,000) | 24,071,000 | ||||||
Repurchases of Common Stock | (8,360) | (9) | (8,351) | |||||
Repurchases of Common Stock, Shares | (443,570) | |||||||
Redemption of Preferred Stock | (125) | $ (125) | (125) | |||||
Amortization of Share Based Compensation | 374 | 374 | ||||||
Net Income | 51,552 | 51,552 | ||||||
Other Comprehensive Income (Loss) | (1,638) | (1,638) | ||||||
Dividends on Preferred Stock | (3) | (3) | ||||||
Dividends on Common Stock (Dividends Declared per Share) | (50,237) | (50,237) | ||||||
Dividends on Class A Common Stock (Dividends Declared per Share) | (981) | (981) | ||||||
Balance at Jun. 30, 2018 | $ 1,191,913 | [1] | $ 1 | $ 60 | $ 1,216,352 | $ (22,828) | $ (1,672) | |
Balance, Shares at Jun. 30, 2018 | 1,154,547 | 59,039,965 | ||||||
[1] | At December 31, 2017, there were no VIE assets or liabilities recorded in the Company’s Total Assets and Total Liabilities. The Company’s consolidated Total Assets and Total Liabilities at June 30, 2018 include VIE assets and liabilities of $945.9 million and $740.1 million, respectively. These assets can be used only to satisfy obligations of the VIE, and creditors of the VIE have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details |
Consolidated Statement of Chan6
Consolidated Statement of Changes in Equity (Unaudited) (Parenthetical) - $ / shares | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Common stock dividends declared per share | $ 0.85 | $ 0.85 |
Class A Common Stock | ||
Common stock dividends declared per share | $ 0.85 | $ 0.85 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | ||
Cash Flows from Operating Activities: | |||
Net Income | $ 51,552 | $ 48,803 | |
Adjustment to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||
Amortization and Accretion of Premiums, Discounts and Loan Origination Fees, Net | (8,911) | (9,805) | |
Amortization of Deferred Financing Costs | 7,900 | 5,453 | |
Capitalized Accrued Interest | 2,456 | ||
Stock Compensation Expense | 374 | ||
Cash Flows Due to Changes in Operating Assets and Liabilities: | |||
Accounts Receivable | 104 | 262 | |
Accrued Interest Receivable | (1,500) | 1,816 | |
Accrued Expenses | 1,165 | (671) | |
Accrued Interest Payable | 77 | 1,713 | |
Payable to Affiliates | 960 | 2,581 | |
Deferred Fee Income | 204 | (126) | |
Other Assets | 234 | 143 | |
Net Cash Provided by Operating Activities | 52,159 | 52,625 | |
Cash Flows from Investing Activities: | |||
Origination of Loans Held for Investment | (1,040,793) | (524,725) | |
Advances on Loans Held for Investment | (150,769) | (154,566) | |
Principal Repayments of Loans Held for Investment | 534,580 | 883,146 | |
Proceeds from Sales of Loans Held for Investment | 52,443 | ||
Purchase of Commercial Mortgage-Backed Securities | (143,643) | (96,610) | |
Principal Repayments of Commercial Mortgage-Backed Securities | 4,536 | 29,666 | |
Purchases and Disposals of Fixed Assets | (218) | ||
Net Cash Provided by (Used in) Investing Activities | (796,089) | 189,136 | |
Cash Flows from Financing Activities: | |||
Payments on Collateralized Loan Obligation | (392,289) | ||
Proceeds from Collateralized Loan Obligation | 745,904 | 16,254 | |
Payments on Secured Financing Agreements | (1,037,666) | (547,820) | |
Proceeds from Secured Financing Agreements | 1,073,518 | 798,514 | |
Payment of Deferred Financing Costs | (13,361) | (4,027) | |
Proceeds from Issuance of Common Stock | 24,635 | ||
Payments to Repurchase Common Stock | (8,360) | ||
Net Cash Provided by (Used in) Financing Activities | 711,532 | (144,002) | |
Net Change in Cash, Cash Equivalents, and Restricted Cash | (32,398) | 97,759 | |
Cash, Cash Equivalents and Restricted Cash at Beginning of Period | 75,737 | 103,975 | |
Cash, Cash Equivalents and Restricted Cash at End of Period | 43,339 | 201,734 | |
Supplemental Disclosure of Cash Flow Information: | |||
Interest Paid | 48,175 | 30,270 | |
Taxes Paid | 205 | 140 | |
Supplemental Disclosure of Non-Cash Investing and Financing Activities: | |||
Principal Repayments of Loans Held for Investment by Servicer/Trustee, Net | 36,435 | 44,024 | |
Interest Payments of Loans Held for Investment and Commercial Mortgage-Backed Securities Held by Servicer/Trustee, Net | 198 | ||
Principal Repayments of Commercial Mortgage-Backed Securities Held by Servicer/Trustee, net | 105 | ||
Dividends Declared, not paid | 25,911 | [1] | 20,520 |
Accrued Deferred Financing Costs | 1,177 | 2,125 | |
Proceeds from Secured Financing Agreements Held by Trustee | 3,392 | ||
Accrued Other Assets | 78 | 2,648 | |
Commercial Mortgage-Backed Securities | |||
Cash Flows from Investing Activities: | |||
Purchase of Commercial Mortgage-Backed Securities | (138,000) | ||
Supplemental Disclosure of Non-Cash Investing and Financing Activities: | |||
Unrealized (Loss) Gain on Commercial Mortgage-Backed Securities, Available-for-Sale | (1,638) | 1,288 | |
Class A Common Stock | |||
Cash Flows from Financing Activities: | |||
Proceeds from Issuance of Common Stock | 365 | ||
Dividends paid | (933) | (1,449) | |
Preferred Class A | |||
Cash Flows from Financing Activities: | |||
Payments to Redeem Series A Preferred Stock | (125) | ||
Dividends paid | (3) | (8) | |
Common Stock, Undefined Class | |||
Cash Flows from Financing Activities: | |||
Dividends paid | $ (47,442) | $ (38,177) | |
[1] | At December 31, 2017, there were no VIE assets or liabilities recorded in the Company’s Total Assets and Total Liabilities. The Company’s consolidated Total Assets and Total Liabilities at June 30, 2018 include VIE assets and liabilities of $945.9 million and $740.1 million, respectively. These assets can be used only to satisfy obligations of the VIE, and creditors of the VIE have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details |
Business and Organization
Business and Organization | 6 Months Ended |
Jun. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Business and Organization | (1) Business and Organization TPG RE Finance Trust, Inc. (together with its consolidated subsidiaries, “we”, “us”, “our”, or the “Company”) is a Maryland corporation that was incorporated on October 24, 2014 and commenced operations on December 18, 2014 (“Inception”). We are organized as a holding company and conduct our operations primarily through our various subsidiaries. We conduct our operations as a real estate investment trust (“REIT”) for U.S. federal income tax purposes. We generally will not be subject to U.S. federal income taxes on our REIT taxable income to the extent that we annually distribute all of our REIT taxable income to stockholders and maintain our qualification as a REIT. We also operate our business in a manner that permits us to maintain an exclusion from registration under the Investment Company Act of 1940, as amended. The Company’s principal business activity is to directly originate and acquire a diversified portfolio of commercial real estate related assets, 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, and commercial mortgage-backed securities (“CMBS”). As of June 30, 2018 and December 31, 2017, the Company conducted substantially all of its operations through a Delaware limited liability company, TPG RE Finance Trust Holdco, LLC (“Holdco”), and the Company’s other wholly-owned subsidiaries. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (2) Summary of Significant Accounting Policies Basis of Presentation The interim consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The interim consolidated financial statements include the Company’s accounts, consolidated variable interest entities for which the Company is the primary beneficiary, and its wholly-owned subsidiaries (see Note 5 for details). All intercompany transactions and balances have been eliminated. Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires estimates of assets, liabilities, revenues, expenses and disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Actual results could differ from management’s estimates, and such differences could be material. Significant estimates made in the consolidated financial statements include, but are not limited to: impairment; adequacy of provisions for loan losses; and valuation of financial instruments. Principles of Consolidation Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810—Consolidation (“ASC 810”) provides guidance on the identification of a VIE (a variable interest entity for which control is achieved through means other than voting rights) and the determination of which business enterprise, if any, should consolidate the VIE. An entity is considered a VIE if any of the following applies: (1) the equity investors (if any) lack one or more of the essential characteristics of a controlling financial interest; (2) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support; or (3) the equity investors have voting rights that are not proportionate to their economic interests and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. The Company consolidates VIEs in which it is considered to be the primary beneficiary. The primary beneficiary is defined as the entity having both of the following characteristics: (1) the power to direct the activities that, when taken together, most significantly impact the VIE’s performance; and (2) the obligation to absorb losses and right to receive the returns from the VIE that would be significant to the VIE. At each reporting date, the Company reconsiders its primary beneficiary conclusion to determine if its obligation to absorb losses of, or its rights to receive benefits from, the VIE could potentially be more than insignificant, and will consolidate or not consolidate accordingly. Revenue Recognition Interest income on loans is accrued using the interest method based on the contractual terms of the loan, adjusted for credit impairment, if any. The objective of the interest method is to arrive at periodic interest income including recognition of fees and costs at a constant effective yield. Premiums, discounts, and origination fees are amortized or accreted into interest income over the lives of the loans using the interest method, or on a straight line basis when it approximates the interest method. Extension and modification fees are accreted into income on a straight line basis, when it approximates the interest method, over the related extension or modification period. Exit fees are accreted into income on a straight line basis, when it approximates the interest method, over the lives of the loans to which they relate unless they can be waived by the Company or a co-lender in connection with a loan refinancing. Prepayment penalties from borrowers are recognized as interest income when received. Certain of the Company’s loan investments have in the past and may in the future provide for additional interest based on the borrower’s operating cash flow or appreciation of the underlying collateral. Such amounts are considered contingent interest and are reflected as interest income only upon certainty of collection. The Company considers a loan to be non-performing and places loans on non-accrual status at such time as: (1) management determines the borrower is incapable of, or has ceased efforts toward, curing the cause of a default; (2) the loan becomes 90 days delinquent; or (3) the loan experiences a maturity default. While on non-accrual status, based on the Company’s judgment as to collectability of principal, loans are either accounted for on a cash basis, where interest income is recognized only upon receipt of cash for principal and interest payments, or on a cost-recovery basis, where all cash receipts reduce a loan’s carrying value, and interest income is only recorded when such carrying value has been fully recovered. During the three and six months ended June 30, 2018, no loans were placed on non-accrual status and no losses or impairments were recorded to our loan portfolio. Loans Held for Investment Loans that the Company has the intent and ability to hold for the foreseeable future, or until maturity or repayment, are reported at their outstanding principal balances net of any premiums, discounts, loan origination fees and an allowance for loan losses. Loan origination fees and direct loan origination costs are deferred and recognized in interest income over the estimated life of the loans using the interest method, or on a straight line basis when it approximates the interest method, adjusted for actual prepayments. The Company evaluates each loan classified as a loan held for investment for impairment on a quarterly basis. Impairment occurs when it is deemed probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan. If the loan is considered to be impaired, an allowance is recorded to reduce the carrying value of the loan to the present value of the expected future cash flows discounted at the loan’s contractual effective rate, or the fair value of the collateral, less estimated costs to sell, if recovery of the Company’s investment is expected solely from the sale of the collateral. As part of the quarterly impairment review, we evaluate the risk of each loan and assign a risk rating based on a variety of factors, grouped as follows to include (without limitation): (i) loan and credit structure, including the as-is loan-to-value (“LTV”) and structural features; (ii) quality and stability of real estate value and operating cash flow, including debt yield, property type, dynamics of the geographic, property-type and local market, physical condition, stability of cash flow, leasing velocity and quality and diversity of tenancy; (iii) performance against underwritten business plan; and (iv) quality, experience and financial condition of sponsor, borrower and guarantor(s). Based on a 5-point scale, our loans are rated “1” through “5,” from least risk to greatest risk, respectively, which ratings are defined as follows: 1- Outperform—Exceeds performance metrics (for example, technical milestones, occupancy, rents, net operating income) included in original or current credit underwriting and business plan; 2- Meets or Exceeds Expectations—Collateral performance meets or exceeds substantially all performance metrics included in original or current underwriting / business plan; 3- Satisfactory—Collateral performance meets or is on track to meet underwriting; business plan is met or can reasonably be achieved; 4- Underperformance—Collateral performance falls short of original underwriting, 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- Risk of Impairment/Default—Collateral performance is significantly worse than underwriting; major variance from business plan; loan covenants or technical milestones have been breached; timely exit from loan via sale or refinancing is questionable. Since Inception, the Company has not recorded asset-specific loan loss reserves, nor has it recognized any impairments on its loan portfolio. Our determination of asset-specific loan loss reserves, should any such reserves be necessary, relies on material estimates regarding the fair value of loan collateral. Such losses could be caused by various factors, including, but not limited to, unanticipated adverse changes in the economy or events adversely affecting specific assets, borrowers, industries in which our borrowers operate or markets in which our borrowers or their properties are located. Significant judgment is required when evaluating loans for impairment. The Company’s loans are typically collateralized by real estate, or in the case of mezzanine loans, by a partnership or similar equity interest in an entity that owns real estate. As a result, the Company regularly evaluates on a loan-by-loan basis the extent and impact of any credit deterioration associated with the performance and/or value of the underlying collateral property as well as the financial and operating capability of the borrower/sponsor. The Company also evaluates the financial strength of loan guarantors, if any, and the borrower’s competency in managing and operating the property or properties. In addition, the Company considers the overall economic environment, real estate sector, and geographic sub-market in which the borrower operates. Such impairment analyses are completed and reviewed by asset management personnel and evaluated by senior management, who utilize various data sources, including (i) periodic financial data such as property occupancy, tenant profile, rental rates, operating expenses, the borrower’s exit plan, and capitalization and discount rates, (ii) site inspections, (iii) sales and financing comparables, (iv) current credit spreads for refinancing and (v) other market data. Commercial Mortgage-Backed Securities The Company acquires CMBS investments primarily for cash management purposes, and also for investment purposes. The Company designates CMBS investments as available-for-sale on the acquisition date. CMBS investments that are classified as available-for-sale are recorded at fair value in the Company’s consolidated financial statements. Additionally, CMBS investments that are not classified as held-to-maturity and which the Company does not hold for the purpose of selling in the near-term, but may dispose of prior to maturity, are also designated as available-for-sale and are carried at fair value. The Company’s recognition of interest income from its CMBS, including its amortization of premium and discount, follows the Company’s revenue recognition policy as described above under “Revenue Recognition”. The Company uses a specific identification method when determining the cost of a security sold and the amount of unrealized gain or loss reclassified from accumulated other comprehensive income (loss) into earnings. Unrealized losses on securities that, in the judgment of management, are other than temporary are charged against earnings as a loss in the consolidated statements of income and comprehensive income. Significant valuation inputs are Level II in the fair value hierarchy as described below under “Fair Value Measurements”. Portfolio Financing Arrangements The Company finances certain loan and CMBS investments using secured revolving repurchase agreements, asset-specific financing arrangements (notes payable on the consolidated balance sheets), a senior secured credit facility, and 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, 2018, the Company has transferred 100% of the senior mortgage loan that the Company originated on a non-recourse basis to a third-party lender and has retained as a loan investment a separate mezzanine loan investment secured by a pledge of the equity in the mortgage borrower. With respect to the senior mortgage loan transferred, the Company retains: no control over the mortgage loan; no economic interest in the mortgage loan; and no recourse to the purchaser or the borrower. Consequently, based on these circumstances and because the Company does not have any continuing involvement with the transferred senior mortgage loan, these syndications are accounted for as sales under GAAP and are removed from the Company’s consolidated financial statements at the time of transfer. The Company’s consolidated balance sheets only include the separate mezzanine loan remaining after the transfer, and not the non-consolidated senior loan interest sold or co-originated that the Company transferred. Fair Value Measurements The Company follows ASC 820-10, Fair Value Measurements and Disclosures “ASC 820-10” Level I Level II Level III For certain financial instruments, the various inputs that management uses to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value hierarchy is appropriate for such financial instrument is based on the lowest level of input that is significant to the fair value measurement. The assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument. The Company may use valuation techniques consistent with the market and income approaches to measure the fair value of its assets and liabilities. The market approach uses third-party valuations and information obtained from market transactions involving identical or similar assets or liabilities. The income approach uses projections of the future economic benefits of an instrument to determine its fair value, such as in the discounted cash flow methodology. The inputs or methodology used for valuing financial instruments are not necessarily an indication of the risk associated with investing in these financial instruments. Transfers between levels of the fair value hierarchy are assumed to occur at the end of the reporting period. Income Taxes The Company qualifies and has elected to be taxed as a REIT for U.S. federal income tax purposes under the Internal Revenue Code of 1986, as amended, commencing with its initial taxable year ended December 31, 2014. To the extent that it annually distributes at least 90% of its REIT taxable income to stockholders and complies with various other requirements as a REIT, the Company generally will not be subject to U.S. federal income taxes on its distributed REIT taxable income. If the Company fails to continue to qualify as a REIT in any taxable year and does not qualify for certain statutory relief provisions, the Company will be subject to U.S. federal and state income taxes at regular corporate rates beginning with the year in which it fails to qualify and may be precluded from being able to elect to be treated as a REIT for the Company’s four subsequent taxable years. Even though the Company currently qualifies for taxation as a REIT, the Company may be subject to certain U.S. federal, state, local and foreign taxes on the Company’s income and property and to U.S. federal income and excise taxes on the Company’s undistributed REIT taxable income. Deferred tax assets and liabilities are recognized for future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the periods in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period in which the enactment date occurs. Under ASC Topic 740, Income Taxes Earnings per Common Share The Company utilizes the two-class method when assessing participating securities to calculate earnings per common share. Basic and diluted earnings per common share is computed by dividing net income attributable to common stockholders (i.e., holders of common stock and Class A common stock), by the weighted-average number of common shares (both common stock and Class A common stock) outstanding during the period. The preferences, rights, voting powers, restrictions, limitations as to dividends and other distributions, qualifications and terms and conditions of redemption of the Class A common stock are identical to the common stock, except (1) the Class A common stock is not a “margin security” as defined in Regulation U of the Board of Governors of the U.S. Federal Reserve System (and rulings and interpretations thereunder) and may not be listed on a national securities exchange or a national market system and (2) each share of Class A common stock is convertible at any time or from time to time, at the option of the holder, for one fully paid and non-assessable share of common stock. The Class A common stock votes together with the common stock as a single class. Shares of Class A common stock have been issued to, and are owned by, certain individuals or entities affiliated with the Company’s external manager, TPG RE Finance Trust Management, L.P., a Delaware limited partnership (the “Manager”), and the sale or conversion to common stock by investors of such shares of Class A common stock is subject to certain restrictions. Diluted earnings per common share is calculated by including the effect of dilutive securities. The Company accounts for unvested share-based payment awards that contain non-forfeitable dividend rights or dividend equivalents (whether paid or unpaid) as participating securities, which are included in the computation of earnings per share pursuant to the two-class method. Share-Based Compensation Share-based compensation consists of awards issued by the Company to certain employees of affiliates of our Manager and certain members of our Board of Directors. These share-based awards generally vest in installments over a fixed period of time. Compensation expense is recognized in net income on a variable basis over the applicable award vesting period based on the value of our common stock. Forfeitures of share-based awards are recognized as they occur. Deferred Financing Costs Deferred financing costs are reflected net of the collateralized loan obligation and secured financing agreements on the Company’s consolidated balance sheets. These costs are amortized in interest expense using the interest method or on a straight line basis when it approximates the interest method over the life of the related obligations. Cash and Cash Equivalents Cash and cash equivalents include cash held in banks or invested in money market funds with original maturities of less than 90 days. The Company deposits its cash and cash equivalents with high credit quality institutions to minimize credit risk exposure. The Company maintains cash accounts at several financial institutions, which are insured up to a maximum of $250,000 per account as of June 30, 2018 and December 31, 2017. The balances in these accounts may exceed the insured limits. Restricted Cash Restricted cash primarily represents deposit proceeds from potential borrowers which may be returned to borrowers, after deducting transaction costs paid by the Company for the benefit of the borrowers, upon the closing of a loan transaction. Accounts Receivable from Servicer/Trustee Accounts receivable from Servicer/Trustee represents cash proceeds from loan and CMBS investment activities that have not been remitted to the Company based on contractual procedures previously agreed upon. Amounts are generally held by the Servicer/Trustee for less than 60 days before being remitted to the Company. Recently Issued Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. ASU 2016-13 will replace the “incurred loss” model under existing guidance with an “expected loss” model for instruments measured at amortized cost, and require entities to record allowances for available-for-sale debt securities rather than reduce the carrying amount, as they do today under the other-than-temporary impairment model. Upon adoption, and resulting from this change, the Company expects that it will be required to record a loan loss reserve at origination or acquisition of an individual loan or a loan portfolio. ASU 2016-13 also simplifies the accounting model for purchased credit-impaired debt securities and loans. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019 and is to be adopted through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company is currently evaluating the impact ASU 2016-13 will have on its consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”). ASU 2018-07 expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The amendments state that Topic 718 applies to all share-based payment awards. ASU 2018-07 is effective for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. Early adoption is permitted, but no earlier than an entity’s adoption of ASC 606, Revenue from Contracts with Customers. The Company is currently evaluating the impact ASU 2018-07 will have on its consolidated financial statements. |
Loans Held for Investment
Loans Held for Investment | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Loans Held for Investment | (3) Loans Held for Investment The Company currently originates and acquires first mortgage and mezzanine loans secured by commercial properties. These loans can potentially subject the Company to concentrations of credit risk as measured by various attributes, including the property type collateralizing the loan, loan size, loans to a single sponsor and loans in a single geographic area, among others. The Company’s loans held for investment are accounted for at amortized cost. During the six months ended June 30, 2018, the Company originated 14 loans with a total commitment of approximately $1.2 billion, an initial unpaid principal balance of $1.0 billion, and unfunded commitments at closing of $141.0 million. To fund these loan originations, the Company used cash on hand and its secured revolving repurchase facilities and senior secured credit facility. Total commitments related to the syndication of non-consolidated senior interests as of June 30, 2018 was $44.0 million relating to a loan originated in a prior period. The following tables present an overview of the loan investment portfolio as of June 30, 2018 and December 31, 2017 (dollars in thousands): June 30, 2018 Loans Receivable Outstanding Principal Unamortized Premium (Discount), Loan Origination Fees, net Carrying Amount Senior loans $ 3,806,804 $ (20,252 ) $ 3,786,552 Subordinated and mezzanine loans 19,000 (1 ) 18,999 Subtotal before allowance 3,825,804 (20,253 ) 3,805,551 Allowance for loan losses — — — Total $ 3,825,804 $ (20,253 ) $ 3,805,551 December 31, 2017 Loans Receivable Outstanding Principal Unamortized Premium (Discount), Loan Origination Fees, net Carrying Amount Senior loans $ 3,122,670 $ (22,143 ) $ 3,100,527 Subordinated and mezzanine loans 75,446 (301 ) 75,145 Subtotal before allowance 3,198,116 (22,444 ) 3,175,672 Allowance for loan losses — — — Total $ 3,198,116 $ (22,444 ) $ 3,175,672 For the six months ended June 30, 2018, loan portfolio activity was as follows (dollars in thousands): Carrying Value Balance at December 31, 2017 $ 3,175,672 Additions during the period: Loans originated 1,040,793 Additional fundings 150,769 Amortization of discount and origination fees 9,112 Deductions during the period: Collection of principal (570,795 ) Balance at June 30, 2018 $ 3,805,551 At June 30, 2018 and December 31, 2017, there was $0.3 million and $2.0 million of unamortized discount included in loans held for investment at amortized cost on the consolidated balance sheets. The table below summarizes the carrying values and results of the Company’s internal risk rating review performed as of June 30, 2018 and December 31, 2017 (dollars in thousands): Carrying Value Rating June 30, 2018 December 31, 2017 1 $ 49,000 $ — 2 1,065,644 1,318,816 3 2,470,666 1,680,913 4 220,241 175,943 5 — — Totals $ 3,805,551 $ 3,175,672 Weighted Average Risk Rating (1) 2.8 2.6 (1) Weighted Average Risk Rating calculated based on unpaid principal balance at period end. The weighted average risk rating at June 30, 2018 and December 31, 2017 was 2.8 and 2.6, respectively. During the three months ended June 30, 2018, one loan was moved from the Company’s Category 3 risk rating into its Category 4 risk rating as a result of a near term maturity and a decline in the collateral’s operating performance below the Company’s initial underwriting. Additionally, the Company moved one loan that was classified in its Category 2 risk rating into its Category 3 risk rating due to slower than anticipated leasing activity. At June 30, 2018 and December 31, 2017, there were no loans on non-accrual status or that were impaired; thus, the Company did not record a reserve for loan loss. See Note 16 for details about the Company’s mortgage loan originations and the sale of a non-core loan investment subsequent to June 30, 2018. |
Commercial Mortgage-Backed Secu
Commercial Mortgage-Backed Securities | 6 Months Ended |
Jun. 30, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Commercial Mortgage-Backed Securities | (4) Commercial Mortgage-Backed Securities During the three and six months ended June 30, 2018, the Company purchased for short-term cash management and investment purposes seven CMBS investments for $74.9 million and 17 CMBS investments for $138.0 million, respectively. The purchased CMBS investments consist of floating rate instruments which, in the aggregate, have a weighted average coupon of 2.9%. As of June 30, 2018 and December 31, 2017, the Company had 22 and five CMBS, respectively, designated as available-for-sale securities. Details of the carrying and fair values of the Company’s CMBS portfolio are as follows (dollars in thousands): June 30, 2018 Face Amount Unamortized Premium (Discount), net Gross Unrealized Loss Estimated Fair Value Investments, at Fair Value Commercial mortgage-backed securities $ 218,979 $ 751 $ (1,672 ) $ 218,058 December 31, 2017 Face Amount Unamortized Premium (Discount), net Gross Unrealized Loss Estimated Fair Value Investments, at Fair Value Commercial mortgage-backed securities $ 85,661 $ 268 $ (34 ) $ 85,895 CMBS fair values are considered Level II fair value measurements within the fair value hierarchy of ASC 820-10. The CMBS fair values are based upon market, broker, and counterparty or pricing services quotations, which provide valuation estimates, based upon reasonable market order indications. These fair value quotations are subject to significant variability based on market conditions, such as interest rates, credit spreads and market liquidity, and are reviewed by the Company for reasonableness and consistency. The Company’s CMBS have a weighted average contractual maturity, based on estimated fair value, of 18.2 years. The amortized cost and estimated fair value of the Company’s available-for-sale CMBS by contractual maturity are shown in the following table (dollars in thousands): June 30, 2018 Amortized Cost Estimated Fair Value Maturity Date After one, within five years $ 36,700 $ 36,872 After five years 183,031 181,186 Total investment in commercial mortgage-backed securities, at amortized cost and estimated fair value $ 219,731 $ 218,058 December 31, 2017 Amortized Cost Estimated Fair Value Maturity Date After one, within five years $ 36,700 $ 36,872 After five years 49,229 49,023 Total investment in commercial mortgage-backed securities, at amortized cost and estimated fair value $ 85,929 $ 85,895 Certain of the Company’s CMBS investments were in an unrealized loss position as of June 30, 2018. During the preceding 12 months these CMBS investments traded at, or near, their respective carrying values, and interest and principal payments are current. Additionally, as of June 30, 2018, substantially all of the unrealized loss position relates to CMBS investments issued by a government sponsored enterprise. Currently, all of the underlying mortgage loans are performing. No other-than-temporary impairments were recognized through income during the three or six months ended June 30, 2018 or the year ended December 31, 2017. |
Variable Interest Entities and
Variable Interest Entities and Collateralized Loan Obligation | 6 Months Ended |
Jun. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Variable Interest Entities And Collateralized Loan Obligation | (5) Variable Interest Entities and Collateralized Loan Obligations On February 14, 2018 (the “Closing Date”), the Company entered into a collateralized loan obligation (“TRTX 2018-FL1”) through its wholly-owned subsidiaries TPG Real Estate Finance 2018-FL1 Issuer, Ltd., an exempted company incorporated in the Cayman Islands with limited liability, as issuer (the “Issuer”), and TPG RE Finance Trust 2018-FL1 Co-Issuer, LLC, a Delaware limited liability company, as co-issuer (the “Co-Issuer” and together with the Issuer, the “Issuers”). On the Closing Date, the Issuer issued $820.5 million principal amount of notes (the “Notes”). The Co-Issuer co-issued $745.9 million principal amount of investment grade-rated notes which were purchased by third party investors. Concurrently with the issuance of the Notes, the Issuer also issued preferred shares, par value $0.001 per share and with an aggregate liquidation preference and notional amount equal to $1,000 per share (the “Preferred Shares” and, together with the Notes, the “Securities”), to TPG RE Finance Trust 2018-FL1 Retention Holder, LLC, a Delaware limited liability company and wholly-owned subsidiary of the Company. The Company retained ownership of $186.5 million of the Notes sold and Preferred Shares in the Issuers. Additionally, during the three months ending June 30, 2018, the Company purchased as an investment $5.0 million (principal amount) of TRTX 2018-FL1 Class A notes. Proceeds from the issuance of the Securities were used by the Issuers to purchase one commercial real estate whole loan (the “Whole Loan) and 25 fully-funded pari passu participations (the “Pari Passu Participations,” and, together with the Whole Loan and the Contributed Companion Participation Interests (as defined below), the “Mortgage Assets”) in certain commercial real estate mortgage loans. The Mortgage Assets were purchased by the Issuer from TPG RE Finance Trust CLO Loan Seller, LLC, a Delaware limited liability company, wholly-owned subsidiary of the Company and an affiliate of the Issuers (the “Seller”). TRTX 2018-FL1 contains a replenishment feature that, subject to certain limitations, allows the Company to contribute companion participation interests (“Contributed Companion Participation Interests”) in loans in which TRTX 2018-FL1 already owns an interest in exchange for cash, which provides additional liquidity to the Company to originate new loan investments as underlying loans repay. For the three months ended June 30, 2018, the Company utilized the replenishment feature twice, contributing Contributed Companion Participation Interests of $56.9 million, and receiving net cash proceeds of $13.9 million, after the repayment of $43.0 million of existing borrowings, including accrued interest, secured by the Contributed Companion Participation Interests. The Mortgage Assets represented 23.4% of the aggregate unpaid principal balance of the Company’s loan investment portfolio, and had an aggregate principal balance of approximately $896.5 million, as of June 30, 2018. In accordance with ASC 810, the Company evaluated the key attributes of the Issuers to determine if they were VIEs and, if so, whether the Company was the primary beneficiary of the Issuers’ operating activities. This analysis caused the Company to conclude that the Issuers were VIEs and that the Company was the primary beneficiary. The Company is the primary beneficiary of the VIEs because it has the ability to control the most significant activities of the Issuers, the obligation to absorb losses, and the right to receive benefits, that could potentially be significant to these entities. As a result, the Company consolidates the Issuers. The carrying values of the Company’s total assets and total liabilities related to TRTX 2018-FL1 at June 30, 2018 included the following VIE assets and liabilities (dollars in thousands): June 30, 2018 ASSETS Cash and Cash Equivalents $ 10,704 Accrued Interest Receivable 2,843 Accounts Receivable from Servicer/Trustee 35,902 Loans Held for Investment 896,480 Total Assets $ 945,929 LIABILITIES Accrued Interest Payable $ (1,047 ) Collateralized Loan Obligation (739,030 ) Total Liabilities $ (740,077 ) Assets held by the Issuers are restricted and can only be used to settle obligations of the Issuers. The liabilities of the Issuers are non-recourse to the Company and can only be satisfied from the Issuers’ assets. The following table outlines TRTX 2018-FL1 borrowings and loan collateral under the Company’s consolidated Issuers (dollars in thousands): As of June 30, 2018 Collateral (loan investments) Debt (notes issued) Outstanding Principal Carrying Value Face Value Carrying Value $ 896,480 $ 896,480 $ (745,904 ) $ (739,030 ) On December 18, 2014, the Company entered into a collateralized loan obligation (“2014-CLO”) through TPG RE Finance Trust CLO Issuer, L.P., a wholly-owned subsidiary of the Company (“CLO Issuer”) and on December 29, 2014, the Company acquired from German American Capital Corporation (“GACC”) a portfolio of 75% participation interests in certain loans secured primarily by first mortgages on commercial properties, with a face value of approximately $2.4 billion. To partially fund the investment, on December 18, 2014, the CLO Issuer issued a Class A Note secured by the Company’s 75% participation interests in the portfolio of loans acquired. In accordance with ASC 810, the Company evaluated the key attributes of the CLO Issuer to determine if it was a VIE and, if so, whether the Company was the primary beneficiary of the CLO Issuer’s operating activities. This analysis resulted in the Company concluding that the CLO Issuer was a VIE, that the Company was the primary beneficiary, and that it would consolidate the entity. On August 16, 2017, the outstanding principal balance of the Class A Note issued by the CLO Issuer was approximately $118.0 million. On August 16, 2017, the CLO Issuer sold to GACC two first mortgage loan participation interests with an aggregate unpaid principal balance of $12.8 million that collateralized the Class A Note in part and recognized in Other income, net a $0.2 million loss on sale. The sales price of the two first mortgage loans was approximately par value. These loans were sold because they were determined to no longer be consistent with the Company’s current investment strategy. On August 18, 2017, one of the Company’s wholly-owned subsidiaries purchased from the CLO Issuer seven first mortgage loan participation interests with an aggregate unpaid principal balance of $138.5 million that collateralized the remainder of the Class A Note issued by the CLO Issuer. The first mortgage loan participation interests were sold by the CLO Issuer for approximately par value. On August 23, 2017, proceeds from both transactions were used in combination with approximately $3.0 million of Company cash to retire all amounts outstanding under the Class A Note issued by the CLO Issuer, which totaled $118.0 million, and the 2014-CLO was subsequently terminated. For the three months ended June 30, 2018 and 2017, $5.6 million and $4.0 million, respectively, is included in the Company’s consolidated statements of income as interest expense related to TRTX 2018-FL1 and 2014-CLO (including amortization of deferred financing costs). For the six months ended June 30, 2018 and 2017, $8.3 million and $8.7 million, respectively, is included in the Company’s consolidated statements of income as interest expense related to TRTX 2018-FL1 and 2014-CLO, respectively (including amortization of deferred financing costs). As of June 30, 2018 and December 31, 2017, the Company’s unamortized deferred financing costs related to TRTX 2018-FL1 and 2014-CLO were $6.9 million and $0.0 million, respectively. |
Secured Revolving Repurchase Ag
Secured Revolving Repurchase Agreements, Senior Secured Credit Facility and Notes Payable | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Secured Revolving Repurchase Agreements, Senior Secured Credit Facility and Notes Payable | (6) Secured Revolving Repurchase Agreements, Senior Secured Credit Facility and Notes Payable At June 30, 2018 and December 31, 2017, the Company had secured revolving repurchase agreements, a senior secured credit facility and notes payable for certain of the Company’s originated loans. These financing agreements bear interest at a rate equal to LIBOR plus a credit spread determined primarily by advance rate and property type. The agreements contain covenants that include certain financial requirements, including maintenance of minimum liquidity, minimum tangible net worth, maximum debt to net worth ratio, current ratio and limitations on capital expenditures, indebtedness, distributions, transactions with affiliates and maintenance of positive net income as defined in the agreements. The following table presents certain information regarding the Company’s notes payable, secured revolving repurchase agreements, and senior secured credit facility as of June 30, 2018 and December 31, 2017, respectively. Except as otherwise noted, all agreements are on a non-recourse basis. Amounts included are shown in thousands: As of June 30, 2018 Notes Payable Maturity Date Index Rate Weighted Average Spread Interest Rate Commitment Amount Maximum Current Availability Balance Outstanding Principal Balance of Collateral Bank of the Ozarks 08/23/19 1 Month Libor 4.5 % 6.5 % $ 92,400 $ 17,927 $ 74,473 $ 106,391 Bank of the Ozarks 08/31/18 1 Month Libor 4.0 6.0 68,257 8,792 59,465 94,950 Deutsche Bank 12/29/18 1 Month Libor 3.3 5.2 49,644 14,938 34,706 53,394 BMO Harris Bank (1) 04/09/20 1 Month Libor 2.7 4.6 32,500 - 32,500 45,000 Subtotal 242,801 41,657 201,144 299,735 Repurchase Agreements Maturity Date Index Rate Weighted Average Spread Interest Rate Commitment Amount Maximum Current Availability Balance Outstanding Principal Balance of Collateral Goldman Sachs (1) 08/19/18 1 Month Libor 2.1 % 4.0 % $ 750,000 $ 271,445 $ 478,555 $ 670,708 Wells Fargo (1) 05/25/19 1 Month Libor 2.1 4.2 750,000 364,730 385,270 516,954 JP Morgan (1) 08/20/18 1 Month Libor 2.3 3.8 374,699 102,346 272,353 382,338 Morgan Stanley (1) 05/04/19 1 Month Libor 2.3 4.4 500,000 270,454 229,546 344,638 US Bank (1) 07/09/21 1 Month Libor 1.8 4.0 172,520 6,800 165,720 210,900 Goldman Sachs (CMBS) (2) 09/04/18 3 Month Libor — 2.3 100,000 66,557 33,443 38,920 Royal Bank of Canada (CMBS) (2) 09/20/18 3 Month Libor 1.0 3.3 100,000 92,331 7,669 8,418 Subtotal 2,747,219 1,174,663 1,572,556 2,172,876 Senior Secured Credit Facility Maturity Date Index Rate Weighted Average Spread Interest Rate Commitment Amount Maximum Current Availability Balance Outstanding Principal Balance of Collateral Bank of America (1) 09/29/20 1 Month Libor 1.9 % 3.9 % $ 500,000 $ 112,560 387,440 485,050 Total $ 3,490,020 $ 1,328,880 $ 2,161,140 $ 2,957,661 (1) Borrowings under secured revolving repurchase agreements, senior secured credit facility, and one note payable with a guarantee for 25% recourse. (2) Borrowings under secured revolving repurchase agreements with a guarantee for 100% recourse. Maturity Date represents the sooner of the next maturity date of the CMBS secured revolving repurchase agreement, or roll date for the applicable underlying trade confirmation, subsequent to June 30, 2018. As of December 31, 2017 Notes Payable Maturity Date Index Rate Weighted Average Spread Interest Rate Commitment Amount Maximum Current Availability Balance Outstanding Principal Balance of Collateral Bank of the Ozarks 08/23/19 1 Month Libor 4.5 % 5.9 % $ 92,400 $ 43,979 $ 48,421 $ 69,172 Bank of the Ozarks 08/31/18 1 Month Libor 4.0 5.4 68,600 14,151 54,449 77,784 Deutsche Bank 09/25/19 1 Month Libor 3.5 4.9 64,779 15,895 48,884 81,473 Deutsche Bank 06/29/18 1 Month Libor 3.3 4.6 49,644 18,224 31,420 48,339 Bank of the Ozarks 05/22/18 1 Month Libor 4.8 6.1 48,750 17,479 31,271 48,109 Deutsche Bank 12/09/18 1 Month Libor 3.7 5.0 42,543 1 42,542 60,775 BMO Harris Bank (1) 04/09/20 1 Month Libor 2.7 4.0 32,500 — 32,500 45,000 Subtotal 399,216 109,729 289,487 430,652 Repurchase Agreements Maturity Date Index Rate Weighted Average Spread Interest Rate Commitment Amount Maximum Current Availability Balance Outstanding Principal Balance of Collateral Goldman Sachs (1) 08/19/18 1 Month Libor 2.2 % 3.6 % $ 750,000 $ 183,253 $ 566,747 $ 890,736 Wells Fargo (1) 05/25/19 1 Month Libor 2.1 3.6 750,000 232,462 517,538 814,886 JP Morgan (1) 08/20/18 1 Month Libor 2.5 4.0 376,942 120,014 256,928 382,135 Morgan Stanley (1) 05/04/19 1 Month Libor 2.4 3.9 500,000 120,002 379,998 533,707 US Bank (1) 12/09/19 1 Month Libor 2.0 3.6 150,000 78,600 71,400 93,000 Goldman Sachs (CMBS) (2) 03/02/18 3 Month Libor 0.1 1.6 100,000 64,615 35,385 39,332 Royal Bank of Canada (CMBS) (2) 03/20/18 3 Month Libor 1.0 2.6 100,000 92,195 7,805 8,418 Subtotal 2,726,942 891,141 1,835,801 2,762,214 Senior Secured Credit Facility Maturity Date Index Rate Weighted Average Spread Interest Rate Commitment Amount Maximum Current Availability Balance Outstanding Principal Balance of Collateral Bank of America (1) 09/29/20 1 Month Libor — — $ 250,000 $ 250,000 — — Total $ 3,376,158 $ 1,250,870 $ 2,125,288 $ 3,192,866 (1) Borrowings under secured revolving repurchase agreements, senior secured credit facility, and one note payable with a guarantee for 25% recourse. (2) Borrowings under secured revolving repurchase agreements with a guarantee for 100% recourse. Maturity Date represents the sooner of the next maturity date of the CMBS secured revolving repurchase agreement, or roll date for the applicable underlying trade confirmation, subsequent to December 31, 2017. Notes Payable The Company uses note-on-note financing agreements to finance certain of its lending activities. The Company designates these asset-specific financings as notes payable on the consolidated balance sheets. Our ability to draw the undrawn capacity is conditioned upon satisfaction by our borrower of conditions precedent to a funding on the underlying loan pledged as collateral, and by our pro rata funding with equity of the remaining future funding obligation. Amounts designated as undrawn capacity under our asset-specific financings may only be used to satisfy our future funding obligations on the respective underlying pledged loan. As of June 30, 2018 and December 31, 2017, the Company had four and seven note-on-note financing agreements, respectively. These asset-specific financing arrangements allow for additional advances up to a specified cap. As of June 30, 2018 and December 31, 2017, the note-on-note financing agreements were secured by four and seven particular loans held for investment, respectively. The Company’s notes payable have the following guarantees: (1) Deutsche Bank and Bank of the Ozarks: Holdco has provided funding guarantees under which Holdco guarantees the funding obligations of the special purpose lending entity in limited circumstances. In addition, under the Deutsche Bank and Bank of the Ozarks asset-specific financings, Holdco has delivered limited non-recourse carve-out guarantees in favor of the lenders as additional credit support for the financings. These guarantees trigger recourse to Holdco as a result of certain “bad boy” defaults for actual losses incurred by such party, or the entire outstanding obligations of the financing borrower, depending on the nature of the “bad boy” default in question; and (2) BMO Harris: Holdco has delivered a payment guarantee in favor of the lender as additional credit support for the financing. The liability of Holdco under this guarantee is generally capped at 25% of the outstanding obligations of the special purpose subsidiary which is the primary obligor under the financing. In addition, Holdco has delivered a non-recourse carveout guarantee, which can trigger recourse to Holdco as a result of certain “bad boy” defaults for losses incurred by BMO Harris or the entire outstanding obligations of the financing borrower, depending on the nature of the “bad boy” default in question. All notes payable at June 30, 2018 are guaranteed by Holdco, and the agreements include guarantor covenants regarding liquid assets and net worth requirements. One of these loans at June 30, 2018 is 25% recourse to Holdco. The Company believes it was in compliance with all covenants as of June 30, 2018 and December 31, 2017. Secured Revolving Repurchase Agreements The Company utilizes secured revolving repurchase agreements to finance the direct origination or acquisition of commercial real estate mortgage loans and CMBS. Under these secured revolving repurchase agreements, the Company transfers all of its rights, title and interest in the loans or CMBS to the repurchase counterparty in exchange for cash, and simultaneously agrees to reacquire the asset at a future date for an amount equal to the cash exchanged plus an interest factor. The repurchase counterparty collects all principal and interest on related loans or CMBS and remits to the Company only the net after collecting its interest and other fees. The loan and CMBS investment related secured revolving repurchase agreements are 25% and 100% recourse to Holdco, respectively. At June 30, 2018 and December 31, 2017, the Company had five secured revolving repurchase agreements to finance its loan investing activities. Credit spreads vary depending upon the collateral type and advance rate. Assets pledged at June 30, 2018 and December 31, 2017 consisted of 50 and 48 mortgage loans, respectively. The following table summarizes certain characteristics of the Company’s secured revolving repurchase agreements secured by commercial mortgage loans, all of which are considered long-term borrowings, and comprise counterparty concentration risks, at June 30, 2018 (dollars in thousands): June 30, 2018 Commitment Amount UPB of Collateral Carrying Value of Collateral (1) Amounts Payable under Repurchase Agreements (2) Net Counterparty Exposure (3) Percent of Stockholders' Equity Days to Extended Maturity Goldman Sachs Bank $ 750,000 $ 670,708 $ 667,083 $ 479,758 $ 187,325 15.7 % 415 Wells Fargo Bank 750,000 516,954 515,026 385,912 129,114 10.8 1,060 Morgan Stanley Bank (4) 500,000 344,638 345,034 230,935 114,099 9.6 N/A JP Morgan Chase Bank 374,699 382,338 381,222 271,962 109,260 9.2 782 US Bank 172,520 210,900 211,614 166,747 44,867 3.8 1,835 Subtotal / Weighted Average 2,547,219 2,125,538 2,119,979 1,535,314 584,665 864 (1) Amounts shown in the table include interest receivable of $11.8 million and are net of premium, discount and origination fees of $17.3 million. (2) Amounts shown in the table include interest payable of $3.9 million and do not reflect unamortized deferred financing fees of $5.1 million. (3) Represents the net carrying value of the commercial real estate assets sold under agreements to repurchase, including accrued interest plus any cash or assets on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest. (4) The Morgan Stanley Bank credit facility is excluded from the Days to Extended Maturity calculation because it does not have a contractual maturity date. At June 30, 2018 and December 31, 2017, the Company had two secured revolving repurchase agreements to finance its CMBS investing activities. Credit spreads vary depending upon the CMBS and advance rate. Assets pledged at June 30, 2018 and December 31, 2017 consisted of three mortgage-backed securities. The following table summarizes certain characteristics of the Company’s secured revolving repurchase agreements secured by CMBS, all of which are considered short-term borrowings, and comprise counterparty concentration risks, at June 30, 2018 (dollars in thousands): June 30, 2018 Commitment Amount UPB of Collateral Carrying Value of Collateral (1) Amounts Payable under Repurchase Agreements (2) Net Counterparty Exposure (3) Percent of Stockholders' Equity Days to Extended Maturity (4) Goldman Sachs Bank $ 100,000 $ 38,920 $ 37,250 $ 33,619 $ 3,631 0.3 % $ 66 Royal Bank of Canada 100,000 8,418 8,547 7,710 837 0.1 82 Subtotal / Weighted Average $ 200,000 $ 47,338 $ 45,797 $ 41,329 $ 4,468 69 Total / Weighted Average - Loans and CMBS $ 2,747,219 $ 2,172,876 $ 2,165,776 $ 1,576,643 $ 589,133 839 (1) Amounts shown in the table include interest receivable of $0.1 million and are net of premium, discount, and unrealized gains of $1.7 million. (2) Amounts shown in the table include interest payable of $0.2 million. (3) Represents the net carrying value of available-for-sale securities sold under agreements to repurchase, including accrued interest plus any cash or assets on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest. (4) Represents the sooner of the next maturity date of the CMBS secured revolving repurchase agreement, or roll date for the applicable underlying trade confirmation, subsequent to June 30, 2018. The following table summarizes certain characteristics of the Company’s secured revolving repurchase agreements secured by commercial mortgage loans, all of which are considered long-term borrowings, and comprise counterparty concentration risks, at December 31, 2017 (dollars in thousands): December 31, 2017 Commitment Amount UPB of Collateral Carrying Value of Collateral (1) Amounts Payable under Repurchase Agreements (2) Net Counterparty Exposure (3) Percent of Stockholders' Equity Days to Extended Maturity Goldman Sachs Bank $ 750,000 $ 890,736 $ 887,667 $ 568,012 $ 319,655 26.6 % 596 Wells Fargo Bank 750,000 814,886 811,257 518,353 292,904 24.4 1,241 Morgan Stanley Bank (4) 500,000 533,707 531,747 380,592 151,155 12.6 N/A JP Morgan Chase Bank 376,942 382,135 382,542 257,484 125,058 10.4 963 US Bank 150,000 93,000 92,448 71,573 20,875 1.7 1,804 Subtotal / Weighted Average 2,526,942 2,714,464 2,705,661 1,796,014 909,647 960 (1) Amounts shown in the table include interest receivable of $11.6 million and are net of premium, discount and origination fees of $20.4 million. (2) Amounts shown in the table include interest payable of $3.4 million and do not reflect unamortized deferred financing fees of $8.7 million. (3) Represents the net carrying value of the commercial real estate assets sold under agreements to repurchase, including accrued interest plus any cash or assets on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest. (4) The Morgan Stanley Bank credit facility is excluded from the Days to Extended Maturity calculation because it does not have a contractual maturity date. The following table summarizes certain characteristics of the Company’s secured revolving repurchase agreements secured by CMBS, all of which are considered short-term borrowings, and comprise counterparty concentration risks, at December 31, 2017 (dollars in thousands): December 31, 2017 Commitment Amount UPB of Collateral Carrying Value of Collateral (1) Amounts Payable under Repurchase Agreements (2) Net Counterparty Exposure (3) Percent of Stockholders' Equity Days to Extended Maturity (4) Goldman Sachs Bank $ 100,000 $ 39,332 $ 39,213 $ 35,426 $ 3,787 0.3 % 61 Royal Bank of Canada 100,000 8,418 8,675 7,879 796 0.1 79 Subtotal / Weighted Average $ 200,000 $ 47,750 $ 47,888 $ 43,305 $ 4,583 64 Total / Weighted Average - Loans and CMBS $ 2,726,942 $ 2,762,214 $ 2,753,549 $ 1,839,319 $ 914,230 933 (1) Amounts shown in the table include interest receivable of $0.1 million. (2) Amounts shown in the table include interest payable of $0.1 million. (3) Represents the net carrying value of available-for-sale securities sold under agreements to repurchase, including accrued interest plus any cash or assets on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest. (4) Represents the sooner of the next maturity date of the CMBS secured revolving repurchase agreement, or roll date for the applicable underlying trade confirmation, subsequent to December 31, 2017. The agreements include various covenants covering net worth, liquidity, recourse limitations, and debt coverage. The Company believes it was in compliance with all covenants as of June 30, 2018 and December 31, 2017. Senior Secured Credit Facility On September 29, 2017, the Company and Bank of America N.A. entered into a senior secured credit facility agreement that had a maximum facility amount of $250 million, which could increase from time to time, up to $500 million, at the Company’s request and agreement by the lender. On June 15, 2018, the Company exercised the accordion feature to increase the maximum facility amount to $500 million. The current extended maturity of this facility is September 2022. The following table details the senior secured credit facility as of June 30, 2018 (dollars in thousands): June 30, 2018 Senior Secured Credit Facility Maturity Date Index Rate Weighted Average Spread Interest Rate Commitment Amount Maximum Current Availability Balance Outstanding Bank of America 9/29/2020 1 Month Libor 1.9 % 3.9 % $ 500,000 $ 112,560 $ 387,440 There were no amounts outstanding on the senior secured credit facility at December 31, 2017. The senior secured credit facility is 25% recourse to Holdco. The Holdco guaranty includes various covenants covering net worth, liquidity, recourse limitations and debt coverage. The Company believes it was in compliance with all covenants as of June 30, 2018 and December 31, 2017. |
Schedule of Maturities
Schedule of Maturities | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities | (7) Schedule of Maturities The future principal payments for the five years subsequent to June 30, 2018 and thereafter are as follows (in thousands): CLO (TRTX 2018-FL1) Senior Secured Credit Facility Repurchase Agreements Notes Payable 2018 $ 36,117 $ — $ 815,582 $ 94,171 2019 435,869 — 662,654 74,473 2020 214,153 387,440 61,120 32,500 2021 54,765 — 33,200 — 2022 — — — — Thereafter — — — — Total $ 740,904 $ 387,440 $ 1,572,556 $ 201,144 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (8) Fair Value Measurements The Company’s consolidated balance sheet includes Level I fair value measurements related to cash equivalents, restricted cash, accounts receivable, and accrued liabilities. At June 30, 2018, the Company had $33.9 million invested in money market funds with original maturities of less than 90 days. The carrying values of these financial assets and liabilities are reasonable estimates of fair value because of the short-term maturities of these instruments. The consolidated balance sheet also includes Loans Held for Investment, a collateralized loan obligation (as of June 30, 2018), and secured financing arrangements that are considered Level III fair value measurements that are not measured at fair value on a recurring basis, but are subject to fair value adjustments utilizing the fair value of the underlying collateral when there is evidence of impairment. The Company did not have any non-recurring fair value items as of June 30, 2018 and December 31, 2017. The following tables provide information about financial assets and liabilities not carried at fair value on a recurring basis in our consolidated balance sheet (dollars in thousands): June 30, 2018 Carrying Value Level I Level II Level III Financial Assets Loans Held for Investment $ 3,805,551 $ — $ — $ 3,831,838 Financial Liabilities CLO (TRTX 2018-FL1) 734,030 — — 734,030 Secured Financing Arrangements 2,152,641 — — 2,152,641 December 31, 2017 Carrying Value Level I Level II Level III Financial Assets Loans Held for Investment $ 3,175,672 $ — $ — $ 3,202,150 Financial Liabilities Secured Financing Arrangements 2,114,990 — — 2,114,990 Level III fair values were determined based on standardized valuation models and significant unobservable market inputs, including holding period, discount rates based on loan to value, property type and loan pricing expectations developed by the Manager that were corroborated with other institutional lenders to determine a market spread that was added to the one-month LIBOR forward curve. There were no transfers of financial assets or liabilities within the fair value hierarchy during the three months ended June 30, 2018 or year ended December 31, 2017. At June 30, 2018 and December 31, 2017, the estimated fair value of loans held for investment was $3.8 billion and $3.2 billion, respectively. The weighted average gross spread at June 30, 2018 and December 31, 2017 was 4.3% and 4.8%, respectively. The weighted average years to maturity at June 30, 2018 and December 31, 2017 was 3.8 years and 3.6 years, respectively, assuming full extension of all loans. At June 30, 2018 and December 31, 2017, the carrying value of the secured financing agreements approximates fair value as current borrowing spreads reflect market terms. At June 30, 2018, the carrying value of the collateralized loan obligation (TRTX 2018-FL1) approximates fair value as current borrowing spreads reflect market terms. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (9) Income Taxes As of June 30, 2018 and December 31, 2017, the Company indirectly owned 100% of the equity of multiple taxable REIT subsidiaries, including certain of its TRTX 2018-FL1 subsidiaries (collectively, “TRS”). As a result, the Company’s TRS had operating activities during the six months ended June 30, 2018. TRS is subject to applicable U.S. federal, state, local and foreign income tax on its taxable income. In addition, as a REIT, the Company also may be subject to a 100% excise tax on certain transactions between it and its TRS that are not conducted on an arm’s-length basis. The Company files income tax returns in the United States federal jurisdiction as well as various state and local jurisdictions. The filings are subject to normal reviews by regulatory agencies until the related statute of limitations expires, with open tax years for all years since the Company’s initial capitalization in 2014. The years open to examination range from 2014 to present. 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, 2018 and December 31, 2017, based on the Company’s evaluation, there is no reserve for any uncertain income tax positions. The Company’s policy is to classify interest and penalties associated with underpayment of U.S. federal and state income taxes, if any, as a component of general and administrative expense on its consolidated statements of income. For the six months ended June 30, 2018 and June 30, 2017, the Company did not have interest or penalties associated with the underpayment of any income taxes. For the three months ended June 30, 2018 and 2017, the Company incurred no federal, state and local tax expense relating to its TRS. For the six months ended June 30, 2018 and 2017, the Company incurred $0.2 million and $0.1 million, respectively, of federal, state and local tax expense relating to its TRS. At June 30, 2018 and 2017, the Company’s effective tax rate was 0.40% and 0.29%, respectively. At June 30, 2018 and December 31, 2017, the Company had no deferred tax assets or liabilities. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (10) Related Party Transactions Management Agreements Post-IPO Management Agreement The Company is externally managed and advised by the Manager. During the year ended December 31, 2017, upon the completion of the Company’s initial public offering on July 25, 2017, the pre-IPO Management Agreement (as defined below) terminated without payment of any termination fee to the Manager, and the Company entered into a new management agreement with the Manager (the “Management Agreement”). On May 2, 2018, the Company and the Manager amended the Management Agreement solely for the purpose of amending the definitions of “Equity,” “Core Earnings” and “Incentive Compensation” in the Management Agreement. The changes were effected to include equity issued by subsidiaries of the Company in the definition of Equity, and to exclude distributions on equity issued by subsidiaries from the calculation of the Manager’s Incentive Compensation. For the three and six months ended June 30, 2018, the management fee and incentive management fee were calculated under 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) and 1.50% per annum (0.375% per quarter) of the Company’s “Equity.” The base management fee is payable in cash, quarterly in arrears. As amended, “Equity” means (a) the sum of (1) the net proceeds received by the Company and, without duplication, the Company’s subsidiaries, from all issuances of the Company’s and the subsidiaries’ equity securities, including for the avoidance of doubt issuances of common stock and Class A common stock by the Company prior to the completion of the Company’s initial public offering (for purposes of calculating this amount, the net proceeds received by the Company from all issuances of the Company’s outstanding common stock and Class A common stock prior to the completion of the Company’s initial public offering equals approximately $1.0 billion), plus (2) the value of contributions, including, without limitation, contributions of assets or interests in assets in exchange for equity securities, made by persons other than the Company or a subsidiary of the Company, from time to time, to the capital of the Company or another subsidiary of the Company plus (3) the Company’s cumulative Core Earnings for the period commencing on the completion of the Company’s initial public offering to the end of the most recently completed calendar quarter, and (b) less (1) any distributions made by the Company to the holders of the Company’s equity securities and any distributions made by the Company’s subsidiaries to the holders of the subsidiaries’ equity securities (other than to the Company or another subsidiary of the Company) following the completion of the Company’s initial public offering, (2) any amount that the Company or any of the Company’s subsidiaries has paid to repurchase for cash the Company’s common stock or Class A common stock following the completion of the Company’s initial public offering and (3) any Incentive Compensation earned by the Manager following the completion of the Company’s initial public offering. With respect to that portion of the period from and after the completion of the Company’s initial public offering that is used in the calculation of Incentive Compensation or the base management fee, all items in the foregoing sentence (other than the Company’s cumulative Core Earnings) will be calculated on a daily weighted average basis. The Manager is entitled to incentive compensation which is calculated and payable in cash with respect to each calendar quarter following the completion of the Company’s initial public offering (or part thereof that the Management Agreement is in effect) in arrears in an amount, not less than zero, equal to the difference between: (1) the product of (a) 20% and (b) the difference between (i) the Company’s Core Earnings for the most recent 12-month period (or such lesser number of completed calendar quarters, if applicable), including the calendar quarter (or part thereof) for which the calculation of incentive compensation is being made (the “applicable period”), and (ii) the product of (A) the Company’s Equity in the most recent 12-month period (or such lesser number of completed calendar quarters, if applicable), including the applicable period, and (B) 7% per annum; and (2) the sum of any incentive compensation paid to the Manager with respect to the first three calendar quarters of the most recent 12-month period (or such lesser number of completed calendar quarters preceding the applicable period, if applicable). No incentive compensation is payable to the Manager with respect to any calendar quarter unless Core Earnings for the 12 most recently completed calendar quarters (or such lesser number of completed calendar quarters following the completion of the Company’s initial public offering) is greater than zero. For purposes of calculating the Manager’s incentive compensation, the Management Agreement, as amended, specifies that equity securities of the Company or any of the Company’s subsidiaries that are entitled to a specified periodic distribution or have other debt characteristics will not constitute equity securities and will not be included in “Equity” for the purpose of calculating incentive compensation. Instead, the aggregate distribution amount that accrues to such equity securities during the calendar quarter of such calculation will be subtracted from Core Earnings, before incentive compensation for purposes of calculating incentive compensation, unless such distribution is otherwise excluded from Core Earnings. As amended, “Core Earnings” means the net income (loss) attributable to the holders of the Company’s common stock and Class A common stock and, without duplication, the holders of the Company’s subsidiaries’ equity securities (other than the Company or any of the Company’s subsidiaries), computed in accordance with GAAP, including realized gains and losses not otherwise included in net income (loss), and excluding (i) non-cash equity compensation expense, (ii) the Incentive Compensation, (iii) depreciation and amortization, (iv) any unrealized gains or losses 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. The Company is required to reimburse the Manager or its affiliates for documented costs and expenses incurred by it and its affiliates on the Company’s behalf except those specifically required to be borne by the Manager or its affiliates under the Management Agreement. The Company’s reimbursement obligation is not subject to any dollar limitation. The Manager or its affiliates is responsible for, and the Company will not reimburse the Manager or its affiliates for, the expenses related to the personnel of the Manager and its affiliates who provide services to the Company. However, the Company will reimburse the Manager for the Company’s allocable share of the compensation (including, without limitation, annual base salary, bonus, any related withholding taxes and employee benefits) paid to (1) the Manager’s personnel serving as the Company’s chief financial officer based on the percentage of his or her time spent managing the Company’s affairs and (2) other corporate finance, tax, accounting, internal audit, legal risk management, operations, compliance and other non-investment personnel of the Manager or its affiliates who spend all or a portion of their time managing the Company’s affairs, based on the percentage of time devoted by such personnel to the Company’s and the Company’s subsidiaries’ affairs. Pre-IPO Management Agreement Through July 24, 2017, the Company paid the Manager a management fee in accordance with the management agreement which was executed on December 15, 2014 (the “pre-IPO Management Agreement”). For the three and six months ended June 30, 2017, the management fee and incentive management fee were calculated under the pre-IPO Management Agreement. Under the pre-IPO Management Agreement, the management fee was equal to 1.25% of the Company’s stockholders’ equity per annum, and was calculated and payable quarterly in arrears. For purposes of calculating the management fee under the pre-IPO Management Agreement, stockholders’ equity meant: (i) the sum of (A) the net proceeds received by the Company from all issuances of the Company’s common stock, plus (B) the Company’s cumulative Core Earnings from and after the date of the pre-IPO Management Agreement to the end of the most recently completed calendar quarter, (ii) less (A) any distributions to the Company’s stockholders from and after the date of the pre-IPO Management Agreement, (B) any amount that the Company or any of its subsidiaries had paid to repurchase the Company’s common stock since the date of the pre-IPO Management Agreement, and (C) any incentive management fee paid from and after the date of the pre-IPO Management Agreement. With respect to that portion of the period from and after the date of the pre-IPO Management Agreement that was used in any calculation of the incentive management fee or the management fee, all items in the foregoing sentence (other than clause (i) (B)) were calculated on a daily weighted average basis. In addition, pursuant to the pre-IPO Management Agreement, the Manager was entitled to an incentive management fee each calendar quarter in arrears in an amount, not less than zero, equal to (I) the product of (i) 16% and (ii) the positive sum, if any, remaining after (A) Core Earnings of the Company for the previous 12 month period were reduced by (B) the product of (1) the average of the Company’s stockholders’ equity as of the end of each calendar quarter during such previous 12 month period, and (2) 7% per annum, minus (II) the sum of any incentive management fee paid to the Manager with respect to the first three calendar quarters of such previous 12 month period; provided, however, that no incentive management fee was payable with respect to any calendar quarter unless Core Earnings for the 12 most recently completed calendar quarters in the aggregate was greater than zero. 2014-CLO Collateral Management Fee The Manager also served as Collateral Manager for the 2014-CLO under a collateral management agreement (the “Collateral Management Agreement”). The collateral management fee was equal to 0.075% per annum of the aggregate par amount of the loans in the 2014-CLO, and was calculated and payable monthly in arrears in cash. Pursuant to an arrangement that the Company had with the Manager prior to the Company’s initial public offering, the Company was entitled to reduce the base management fee payable to the Manager under the pre-IPO Management Agreement by an amount equal to the collateral management fee the Manager was entitled to receive for acting as the collateral manager for the 2014-CLO. After the completion of the initial public offering and prior to the termination of the 2014-CLO, the Manager was entitled to earn a collateral management fee for acting as the collateral manager for the 2014-CLO without any reduction or offset right to the base management fee payable to the Manager under the Management Agreement. As of June 30, 2017, the aggregate par amount of the loans in the 2014-CLO was $184.8 million. Management Fees Incurred and Paid for the three and six months ended June 30, 2018 and June 30, 2017 For the three and six months ended June 30, 2018 and 2017, the Company incurred and paid the following management fees, incentive management fees, and collateral management fees related to its pre-IPO and Post-IPO Management Agreements and the 2014-CLO Collateral Management Agreement (dollars in thousands): Three Months Ended June 30, 2018 2017 Post-IPO Management Agreement fees incurred $ 5,909 $ — Post-IPO Management Agreement fees paid 5,630 — Pre-IPO Management Agreement and Collateral Management fees incurred — 4,644 Pre-IPO Management Agreement and Collateral Management fees paid — 4,291 Six Months Ended June 30, 2018 2017 Post-IPO Management Agreement fees incurred $ 11,539 $ — Post-IPO Management Agreement fees paid 10,862 — Pre-IPO Management Agreement and Collateral Management fees incurred — 8,944 Pre-IPO Management Agreement and Collateral Management fees paid — 7,356 Management fees, incentive management fees, and collateral management fees included in payable to affiliates on the consolidated balance sheets at June 30, 2018 and December 31, 2017 are $5.9 million and $5.2 million, respectively. The Company is responsible for reimbursing the Manager for certain expenses paid by the Manager on behalf of the Company or for certain services provided by the Manager to the Company. Expenses incurred by the Manager and reimbursed by the Company are reflected in the respective consolidated statements of income expense category or the consolidated balance sheets based on the nature of the item. For the three months ended June 30, 2018, the Manager incurred $0.3 million of expenses that were reimbursable by the Company. During the six months ended June 30, 2018, the Manager incurred a total of $0.6 million of expenses that were reimbursable by the Company. As of June 30, 2018, $0.3 million remained outstanding and was reimbursable by the Company to the Manager. No amounts were incurred by the Manager and reimbursable by the Company during the three and six months ended June 30, 2017. Termination Fee A termination fee will be payable to the Manager upon termination of the Management Agreement by the Company absent a cause event. The termination fee would also be payable to the Manager upon termination of the Management Agreement by the Manager if the Company materially breaches the Management Agreement. The termination fee is equal to three times the sum of (x) the average annual base management fee and (y) the average annual incentive compensation earned by the Manager, in each case during the 24-month period immediately preceding the most recently completed calendar quarter prior to the date of termination or, if such termination occurs prior to July 25, 2019, and such termination fee is payable, the base management fees and the incentive compensation will be annualized for the period from July 25, 2017 to July 25, 2019 based on such fees actually received by the Manager during such period. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per Share | (11) Earnings per Share The Company calculates its basic and diluted earnings per share using the two-class method for all periods presented, as the unvested restricted shares of its common stock granted to certain employees and affiliates of it Manager, qualify as participating securities. These restricted shares have the same rights as the Company’s other shares of common stock and Class A common stock, including participating in any dividends, and therefore have been included in the Company’s basic and diluted earnings per share calculation. For the three and six months ended June 30, 2018, $0.0 million and $0.1 million, respectively of common stock dividends declared and undistributed net income attributable to common stockholders were allocated to unvested shares of our common stock pursuant to stock grants made under the Company’s Incentive Plan (see Note 13 for details). At June 30, 2018, all share and per share data reflect the impact of the common stock and Class A common stock dividend which was paid upon completion of the Company’s initial public offering on July 25, 2017 to holders of record as of July 3, 2017. The following table sets forth the calculation of basic and diluted earnings per common share (common stock and Class A common stock) based on the weighted-average number of shares of common stock and Class A common stock outstanding (in thousands, except share and per share data): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Net Income Attributable to Common Stockholders $ 26,438 $ 25,320 $ 51,549 $ 48,795 Weighted Average Common Shares Outstanding, Basic and Diluted 60,175,373 48,664,664 60,283,992 48,555,950 Per Common Share Amount, Basic and Diluted $ 0.44 $ 0.52 $ 0.86 $ 1.00 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders Equity Note [Abstract] | |
Stockholders' Equity | (12) Stockholders’ Equity Stock Dividend On July 3, 2017, we declared a stock dividend that resulted in the issuance of 9,224,268 shares of our common stock and 230,815 shares of our Class A common stock upon the completion of our initial public offering. The stock dividend was paid on July 25, 2017 to holders of record of our common stock and Class A common stock as of July 3, 2017. All prior periods have been restated to give effect to the impact of these transactions on our common and Class A common stock issued, shares outstanding, per share calculations, and basic and diluted weighted average number of common shares outstanding. 10b5-1 Purchase Plan The Company entered into an agreement and related amendments (the “10b5-1 Purchase Plan”) with Goldman Sachs & Co. LLC, pursuant to which Goldman Sachs & Co. LLC, as our agent, will buy in the open market up to $35.0 million in shares of our common stock in the aggregate during the period beginning on or about August 21, 2017 and ending 12 months thereafter or, if sooner, the date on which all the capital committed to the 10b5-1 Purchase Plan has been exhausted. The 10b5-1 Purchase Plan requires Goldman Sachs & Co. LLC to purchase for us shares of our common stock when the market price per share is below the threshold price specified in the 10b5-1 Purchase Plan which is based on our book value per common share. No shares were repurchased by the Company during the three months ended June 30, 2018. During the six months ended June 30, 2018, the Company repurchased 0.4 million shares of common stock, at a weighted average price of $18.83 per share, for total consideration (including commissions and related fees) of $8.4 million. Through June 30, 2018, the Company has purchased 1.2 million shares of common stock, at a weighted average price of $19.28 per share, for total consideration (including commissions and related fees) of $22.5 million. At June 30, 2018, the Company’s remaining commitment under the 10b5-1 Purchase Plan is $12.5 million. Dividends Prior to the completion of the Company’s initial public offering, dividends were accrued at the time of approval by the Special Actions Committee (the “Committee”), a standing committee comprised of directors who are employed by TPG Global, LLC or an affiliate thereof. Subsequent to the completion of the Company’s initial public offering, dividends are accrued at the time of approval by the Company’s Board of Directors. Upon the approval of the Committee, or the Company’s Board of Directors, as applicable, dividends are paid first to the holders of the Company’s Series A preferred stock at the rate of 12.5% of the total $0.001 million liquidation preference per annum plus all accumulated and unpaid dividends thereon, and second to the holders of the Company’s common stock and Class A common stock. The Company’s Series A preferred stock was redeemed on February 28, 2018 for $0.1 million. The Company intends to distribute each year substantially all of its taxable income to its stockholders to comply with the REIT provisions of the Internal Revenue Code of 1986, as amended. On June 15, 2018, the Company’s Board of Directors declared a dividend for the second quarter of 2018 in the amount of $0.43 per share of common stock and Class A common stock, or $25.9 million in the aggregate, which dividend was payable on July 25, 2018 to holders of record of our common stock and Class A common stock as of June 25, 2018. On June 30, 2017, the Company declared a dividend associated with the second quarter of 2017 in the amount of $0.41 per share of common stock and Class A common stock, or $20.5 million in the aggregate, which was paid on July 25, 2017. For the six months ended June 30, 2018 and 2017, common stock and Class A common stock dividends in the amount of $51.2 million and $41.8 million were declared and approved, respectively. As of June 30, 2018 and December 31, 2017, $25.9 million and $23.1 million, respectively, remain unpaid and are reflected in dividends payable on the Company’s consolidated balance sheets. Other Comprehensive (Loss) Income For the three months ended June 30, 2018 and 2017, other comprehensive (loss) income was $(1.4) million and $0.1 million, respectively. For the six months ended June 30, 2018 and 2017, other comprehensive (loss) income was $(1.6) million and $1.3 million, respectively. Other comprehensive (loss) income is a result of unrealized (losses) gains on CMBS available-for-sale. |
Share-based Incentive Plan
Share-based Incentive Plan | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-based Incentive Plan | (13) Share-based Incentive Plan The Company does not have any employees as we are externally managed by our Manager. However, as of June 30, 2018, certain individuals employed by an affiliate of our Manager and certain members of our Board of Directors were compensated, in part, through the issuance of share-based instruments. The Company’s Board of Directors has adopted, and the Company’s stockholders have approved, the TPG RE Finance Trust, Inc. 2017 Equity Incentive Plan (the “Incentive Plan”). The Incentive Plan provides for the grant of equity-based awards to the Company’s, and its affiliates’, directors, officers, employees (if any) and consultants, and the members, officers, directors, employees and consultants of our Manager or its affiliates, as well as to our Manager and other entities that provide services to us and our affiliates and the employees of such entities. The total number of shares of common stock or long term incentive plan (“LTIP”) units that may be awarded under the Incentive Plan is 4,600,463, or 7.5% of the issued and outstanding shares of our common stock after completion of our common and Class A common stock dividend, initial public offering and the issuance of shares in connection with the partial exercise of the option to purchase additional shares related to the initial public offering. The Incentive Plan will automatically expire on the tenth anniversary of its effective date, unless terminated earlier by the Company’s Board of Directors. No equity grants were awarded in conjunction with the Company’s initial public offering. The shares generally vest in installments over a three-year period, pursuant to the terms of the award and the Incentive Plan. As of June 30, 2018, there were 64,498 shares of common stock outstanding and total unrecognized compensation cost related to unvested share-based compensation arrangements of $1.3 million, based on the June 29, 2018 closing price of our common stock on the New York Stock Exchange of $20.32, which is expected to be recognized over a weighted average period of 1.9 years from June 30, 2018. For the three and six months ended June 30, 2018, the Company recognized $0.2 million and $0.4 million, respectively, of share-based compensation expense as general and administrative expense in the consolidated statements of income and comprehensive income. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (14) Commitments and Contingencies Unfunded Commitments As of June 30, 2018 and December 31, 2017, the Company had $482.8 million and $529.0 million, respectively, of unfunded commitments related to loans held for investment. These commitments are not reflected on the consolidated balance sheets. Litigation From time to time, the Company may be involved in various claims and legal actions arising in the ordinary course of business. The Company establishes an accrued liability for loss contingencies when a settlement arising from a legal proceeding is both probable and reasonably estimable. If a legal matter is not probable and reasonably estimable, no such liability is recorded. Examples of this include (i) early stages of a legal proceeding, (ii) damages that are unspecified or cannot be determined, (iii) discovery has not started or is incomplete or (iv) there is uncertainty as to the outcome of pending appeals or motions. If these items exist, an estimated range of potential loss cannot be determined and as such the Company does not record an accrued liability. As of June 30, 2018 and December 31, 2017, the Company was not involved in any material legal proceedings and has not recorded an accrued liability for loss contingencies. |
Concentration of Credit Risk
Concentration of Credit Risk | 6 Months Ended |
Jun. 30, 2018 | |
Risks And Uncertainties [Abstract] | |
Concentration of Credit Risk | (15) Concentration of Credit Risk Property Type A summary of the loan portfolio by property type as of June 30, 2018 and December 31, 2017 based on total loan commitment and current unpaid principal balance (“UPB”) is as follows (dollars in thousands): June 30, 2018 Property Type Loan Commitment Unfunded Commitment % of Loan Commitment Loan UPB % of Loan UPB Office $ 1,554,004 $ 242,617 36.2 % $ 1,311,388 34.2 % Multifamily 883,355 69,707 20.5 813,648 21.3 Hotel 677,069 17,933 15.7 659,136 17.2 Mixed Use 543,500 55,607 12.6 487,893 12.8 Condominium 391,206 51,858 9.1 339,348 8.9 Retail 182,918 45,123 4.2 137,795 3.6 Industrial 66,500 — 1.5 66,500 1.7 Other 10,096 — 0.2 10,096 0.3 Total $ 4,308,648 $ 482,845 100.0 % $ 3,825,804 100.0 % December 31, 2017 Property Type Loan Commitment Unfunded Commitment % of Loan Commitment Loan UPB % of Loan UPB Office $ 836,826 $ 160,450 22.5 % $ 676,376 21.1 % Multifamily 813,775 75,509 21.8 738,266 23.1 Hotel 693,569 27,980 18.6 665,589 20.8 Condominium 679,779 166,358 18.2 513,421 16.1 Mixed Use 431,500 57,243 11.6 374,257 11.7 Retail 195,012 41,500 5.2 153,512 4.8 Industrial 66,500 — 1.8 66,500 2.1 Other 10,195 — 0.3 10,195 0.3 Total $ 3,727,156 $ 529,040 100.0 % $ 3,198,116 100.0 % Geography All of the Company’s loans held for investment are secured by properties within the United States. The geographic composition of loans held for investment based on total loan commitment and current UPB as of June 30, 2018 and December 31, 2017 is as follows (dollars in thousands): June 30, 2018 Geographic Region Loan Commitment Unfunded Commitment % Loan Commitment Loan UPB % Loan UPB East $ 2,076,177 $ 177,737 48.3 % $ 1,898,441 49.7 % South 1,099,298 202,386 25.5 896,912 23.4 West 794,154 93,324 18.4 700,830 18.3 Midwest 290,019 9,398 6.7 280,621 7.3 Various 49,000 — 1.1 49,000 1.3 Total $ 4,308,648 $ 482,845 100.0 % $ 3,825,804 100.0 % December 31, 2017 Geographic Region Loan Commitment Unfunded Commitment % Loan Commitment Loan UPB % Loan UPB East $ 1,600,619 $ 167,447 42.9 % $ 1,433,172 44.8 % South 1,147,510 278,890 30.8 868,620 27.2 West 674,123 67,746 18.1 606,377 19.0 Midwest 255,904 14,957 6.9 240,947 7.5 Various 49,000 — 1.3 49,000 1.5 Total $ 3,727,156 $ 529,040 100.0 % $ 3,198,116 100.0 % Category A summary of the loan portfolio by category as of June 30, 2018 and December 31, 2017 based on total loan commitment and current UPB is as follows (dollars in thousands): June 30, 2018 Loan Category Loan Commitment Unfunded Commitment % Loan Commitment Loan UPB % Loan UPB Bridge $ 2,510,532 $ 204,473 58.3 % $ 2,306,060 60.2 % Light Transitional 760,034 86,988 17.6 673,046 17.6 Moderate Transitional 732,197 140,233 17.0 591,964 15.5 Construction 305,885 51,151 7.1 254,734 6.7 Total $ 4,308,648 $ 482,845 100.0 % $ 3,825,804 100.0 % December 31, 2017 Loan Category Loan Commitment Unfunded Commitment % Loan Commitment Loan UPB % Loan UPB Bridge $ 1,927,488 $ 176,316 51.7 % $ 1,751,172 54.7 % Moderate Transitional 723,075 132,483 19.4 590,592 18.5 Construction 609,468 166,358 16.4 443,110 13.9 Light Transitional 467,125 53,883 12.5 413,242 12.9 Total $ 3,727,156 $ 529,040 100.0 % $ 3,198,116 100.0 % |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | (16) Subsequent Events The following events occurred subsequent to June 30, 2018: Senior Mortgage Loan Originations From July 1, 2018 through August 6, 2018, the Company has closed, or is in the process of closing, six first mortgage loans with a total loan commitment amount of $569.1 million. These loans will be funded with a combination of cash-on-hand, cash proceeds from recently sold CMBS investments, and borrowings. Citi Senior Revolving Credit Facility On July 12, 2018, the Company entered into a credit agreement (the “Credit Agreement”), as borrower, with Citibank, N.A. as administrative agent and lender, and Citigroup Global Markets Inc. as sole lead arranger and sole lead book running manager. The Credit Agreement governs a secured revolving credit facility with aggregate secured borrowing capacity of up to $160.0 million, subject to borrowing base availability and certain other conditions, which the Company expects to use to finance originations or acquisitions of eligible loans on an interim basis until permanent financing is arranged. The Credit Agreement has an initial maturity date of July 12, 2020, and borrowings will bear interest at an interest rate per annum equal to one-month LIBOR or the applicable base rate plus a margin of 2.25%. The initial advance rate on borrowings under the Credit Agreement with respect to individual pledged assets will be 70%, and will decline over a 90-day period, after which borrowings against that respective asset must be repaid. As of August 6, 2018, no borrowings were outstanding under the Credit Agreement. Sale of a Non-core, Fixed Rate Loan Investment On July 16, 2018, the Company sold its participation interest in a non-core, fixed rate performing loan purchased in December 2014 to a third party for total cash consideration of $2.7 million, including sale costs and fees, recognizing a loss on sale of $0.4 million. Sale of CMBS Investments From July 23, 2018 to July 25, 2018, the Company sold 17 CMBS investments that were primarily held as short-term investments for total cash consideration of $133.3 million, including sale costs and fees, to fund future loan originations, recognizing a loss on sale of $0.1 million. Cash Dividend On July 25, 2018, the Company paid a cash dividend on its common stock and Class A common stock of $0.43 per share, or $25.9 million, to stockholders of record as of June 25, 2018. 10b5-1 Purchase Plan The Company did not repurchase any shares of common stock under the 10b5-1 Purchase Plan from July 1, 2018 through August 6, 2018. The repurchase period under the 10b5-1 Purchase Plan is set to expire on August 21, 2018 or, if sooner, the date on which all the capital committed to the 10b5-1 Purchase Plan has been exhausted. On August 1, 2018, the Company’s Board of Directors authorized the Company to extend the repurchase period for the remaining capital committed to the 10b5-1 Purchase Plan. No other changes to the terms of the 10b5-1 Purchase Plan have been authorized or are contemplated. As of August 6, 2018, the Company had approximately $12.5 million of remaining capital committed to repurchases of outstanding shares of common stock under the 10b5-1 Purchase Plan. The Company anticipates entering into an amendment to the 10b5-1 Purchase Plan or a new purchase plan sometime in the third quarter of 2018 to effect the extension authorized by the Board of Directors. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
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 (see Note 5 for details). All intercompany transactions and balances have been eliminated. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires estimates of assets, liabilities, revenues, expenses and disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Actual results could differ from management’s estimates, and such differences could be material. Significant estimates made in the consolidated financial statements include, but are not limited to: impairment; adequacy of provisions for loan losses; and valuation of financial instruments. |
Principles of Consolidation | Principles of Consolidation Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810—Consolidation (“ASC 810”) provides guidance on the identification of a VIE (a variable interest entity for which control is achieved through means other than voting rights) and the determination of which business enterprise, if any, should consolidate the VIE. An entity is considered a VIE if any of the following applies: (1) the equity investors (if any) lack one or more of the essential characteristics of a controlling financial interest; (2) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support; or (3) the equity investors have voting rights that are not proportionate to their economic interests and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. The Company consolidates VIEs in which it is considered to be the primary beneficiary. The primary beneficiary is defined as the entity having both of the following characteristics: (1) the power to direct the activities that, when taken together, most significantly impact the VIE’s performance; and (2) the obligation to absorb losses and right to receive the returns from the VIE that would be significant to the VIE. At each reporting date, the Company reconsiders its primary beneficiary conclusion to determine if its obligation to absorb losses of, or its rights to receive benefits from, the VIE could potentially be more than insignificant, and will consolidate or not consolidate accordingly. |
Revenue Recognition | Revenue Recognition Interest income on loans is accrued using the interest method based on the contractual terms of the loan, adjusted for credit impairment, if any. The objective of the interest method is to arrive at periodic interest income including recognition of fees and costs at a constant effective yield. Premiums, discounts, and origination fees are amortized or accreted into interest income over the lives of the loans using the interest method, or on a straight line basis when it approximates the interest method. Extension and modification fees are accreted into income on a straight line basis, when it approximates the interest method, over the related extension or modification period. Exit fees are accreted into income on a straight line basis, when it approximates the interest method, over the lives of the loans to which they relate unless they can be waived by the Company or a co-lender in connection with a loan refinancing. Prepayment penalties from borrowers are recognized as interest income when received. Certain of the Company’s loan investments have in the past and may in the future provide for additional interest based on the borrower’s operating cash flow or appreciation of the underlying collateral. Such amounts are considered contingent interest and are reflected as interest income only upon certainty of collection. The Company considers a loan to be non-performing and places loans on non-accrual status at such time as: (1) management determines the borrower is incapable of, or has ceased efforts toward, curing the cause of a default; (2) the loan becomes 90 days delinquent; or (3) the loan experiences a maturity default. While on non-accrual status, based on the Company’s judgment as to collectability of principal, loans are either accounted for on a cash basis, where interest income is recognized only upon receipt of cash for principal and interest payments, or on a cost-recovery basis, where all cash receipts reduce a loan’s carrying value, and interest income is only recorded when such carrying value has been fully recovered. During the three and six months ended June 30, 2018, no loans were placed on non-accrual status and no losses or impairments were recorded to our loan portfolio. |
Loans Held for Investment | Loans Held for Investment Loans that the Company has the intent and ability to hold for the foreseeable future, or until maturity or repayment, are reported at their outstanding principal balances net of any premiums, discounts, loan origination fees and an allowance for loan losses. Loan origination fees and direct loan origination costs are deferred and recognized in interest income over the estimated life of the loans using the interest method, or on a straight line basis when it approximates the interest method, adjusted for actual prepayments. The Company evaluates each loan classified as a loan held for investment for impairment on a quarterly basis. Impairment occurs when it is deemed probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan. If the loan is considered to be impaired, an allowance is recorded to reduce the carrying value of the loan to the present value of the expected future cash flows discounted at the loan’s contractual effective rate, or the fair value of the collateral, less estimated costs to sell, if recovery of the Company’s investment is expected solely from the sale of the collateral. As part of the quarterly impairment review, we evaluate the risk of each loan and assign a risk rating based on a variety of factors, grouped as follows to include (without limitation): (i) loan and credit structure, including the as-is loan-to-value (“LTV”) and structural features; (ii) quality and stability of real estate value and operating cash flow, including debt yield, property type, dynamics of the geographic, property-type and local market, physical condition, stability of cash flow, leasing velocity and quality and diversity of tenancy; (iii) performance against underwritten business plan; and (iv) quality, experience and financial condition of sponsor, borrower and guarantor(s). Based on a 5-point scale, our loans are rated “1” through “5,” from least risk to greatest risk, respectively, which ratings are defined as follows: 1- Outperform—Exceeds performance metrics (for example, technical milestones, occupancy, rents, net operating income) included in original or current credit underwriting and business plan; 2- Meets or Exceeds Expectations—Collateral performance meets or exceeds substantially all performance metrics included in original or current underwriting / business plan; 3- Satisfactory—Collateral performance meets or is on track to meet underwriting; business plan is met or can reasonably be achieved; 4- Underperformance—Collateral performance falls short of original underwriting, 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- Risk of Impairment/Default—Collateral performance is significantly worse than underwriting; major variance from business plan; loan covenants or technical milestones have been breached; timely exit from loan via sale or refinancing is questionable. Since Inception, the Company has not recorded asset-specific loan loss reserves, nor has it recognized any impairments on its loan portfolio. Our determination of asset-specific loan loss reserves, should any such reserves be necessary, relies on material estimates regarding the fair value of loan collateral. Such losses could be caused by various factors, including, but not limited to, unanticipated adverse changes in the economy or events adversely affecting specific assets, borrowers, industries in which our borrowers operate or markets in which our borrowers or their properties are located. Significant judgment is required when evaluating loans for impairment. The Company’s loans are typically collateralized by real estate, or in the case of mezzanine loans, by a partnership or similar equity interest in an entity that owns real estate. As a result, the Company regularly evaluates on a loan-by-loan basis the extent and impact of any credit deterioration associated with the performance and/or value of the underlying collateral property as well as the financial and operating capability of the borrower/sponsor. The Company also evaluates the financial strength of loan guarantors, if any, and the borrower’s competency in managing and operating the property or properties. In addition, the Company considers the overall economic environment, real estate sector, and geographic sub-market in which the borrower operates. Such impairment analyses are completed and reviewed by asset management personnel and evaluated by senior management, who utilize various data sources, including (i) periodic financial data such as property occupancy, tenant profile, rental rates, operating expenses, the borrower’s exit plan, and capitalization and discount rates, (ii) site inspections, (iii) sales and financing comparables, (iv) current credit spreads for refinancing and (v) other market data. |
Commercial Mortgage-Backed Securities | Commercial Mortgage-Backed Securities The Company acquires CMBS investments primarily for cash management purposes, and also for investment purposes. The Company designates CMBS investments as available-for-sale on the acquisition date. CMBS investments that are classified as available-for-sale are recorded at fair value in the Company’s consolidated financial statements. Additionally, CMBS investments that are not classified as held-to-maturity and which the Company does not hold for the purpose of selling in the near-term, but may dispose of prior to maturity, are also designated as available-for-sale and are carried at fair value. The Company’s recognition of interest income from its CMBS, including its amortization of premium and discount, follows the Company’s revenue recognition policy as described above under “Revenue Recognition”. The Company uses a specific identification method when determining the cost of a security sold and the amount of unrealized gain or loss reclassified from accumulated other comprehensive income (loss) into earnings. Unrealized losses on securities that, in the judgment of management, are other than temporary are charged against earnings as a loss in the consolidated statements of income and comprehensive income. Significant valuation inputs are Level II in the fair value hierarchy as described below under “Fair Value Measurements”. |
Portfolio Financing Arrangements | Portfolio Financing Arrangements The Company finances certain loan and CMBS investments using secured revolving repurchase agreements, asset-specific financing arrangements (notes payable on the consolidated balance sheets), a senior secured credit facility, and 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, 2018, the Company has transferred 100% of the senior mortgage loan that the Company originated on a non-recourse basis to a third-party lender and has retained as a loan investment a separate mezzanine loan investment secured by a pledge of the equity in the mortgage borrower. With respect to the senior mortgage loan transferred, the Company retains: no control over the mortgage loan; no economic interest in the mortgage loan; and no recourse to the purchaser or the borrower. Consequently, based on these circumstances and because the Company does not have any continuing involvement with the transferred senior mortgage loan, these syndications are accounted for as sales under GAAP and are removed from the Company’s consolidated financial statements at the time of transfer. The Company’s consolidated balance sheets only include the separate mezzanine loan remaining after the transfer, and not the non-consolidated senior loan interest sold or co-originated that the Company transferred. |
Fair Value Measurements | Fair Value Measurements The Company follows ASC 820-10, Fair Value Measurements and Disclosures “ASC 820-10” Level I Level II Level III For certain financial instruments, the various inputs that management uses to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value hierarchy is appropriate for such financial instrument is based on the lowest level of input that is significant to the fair value measurement. The assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument. The Company may use valuation techniques consistent with the market and income approaches to measure the fair value of its assets and liabilities. The market approach uses third-party valuations and information obtained from market transactions involving identical or similar assets or liabilities. The income approach uses projections of the future economic benefits of an instrument to determine its fair value, such as in the discounted cash flow methodology. The inputs or methodology used for valuing financial instruments are not necessarily an indication of the risk associated with investing in these financial instruments. Transfers between levels of the fair value hierarchy are assumed to occur at the end of the reporting period. |
Income Taxes | Income Taxes The Company qualifies and has elected to be taxed as a REIT for U.S. federal income tax purposes under the Internal Revenue Code of 1986, as amended, commencing with its initial taxable year ended December 31, 2014. To the extent that it annually distributes at least 90% of its REIT taxable income to stockholders and complies with various other requirements as a REIT, the Company generally will not be subject to U.S. federal income taxes on its distributed REIT taxable income. If the Company fails to continue to qualify as a REIT in any taxable year and does not qualify for certain statutory relief provisions, the Company will be subject to U.S. federal and state income taxes at regular corporate rates beginning with the year in which it fails to qualify and may be precluded from being able to elect to be treated as a REIT for the Company’s four subsequent taxable years. Even though the Company currently qualifies for taxation as a REIT, the Company may be subject to certain U.S. federal, state, local and foreign taxes on the Company’s income and property and to U.S. federal income and excise taxes on the Company’s undistributed REIT taxable income. Deferred tax assets and liabilities are recognized for future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the periods in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period in which the enactment date occurs. Under ASC Topic 740, Income Taxes |
Earnings per Common Share | Earnings per Common Share The Company utilizes the two-class method when assessing participating securities to calculate earnings per common share. Basic and diluted earnings per common share is computed by dividing net income attributable to common stockholders (i.e., holders of common stock and Class A common stock), by the weighted-average number of common shares (both common stock and Class A common stock) outstanding during the period. The preferences, rights, voting powers, restrictions, limitations as to dividends and other distributions, qualifications and terms and conditions of redemption of the Class A common stock are identical to the common stock, except (1) the Class A common stock is not a “margin security” as defined in Regulation U of the Board of Governors of the U.S. Federal Reserve System (and rulings and interpretations thereunder) and may not be listed on a national securities exchange or a national market system and (2) each share of Class A common stock is convertible at any time or from time to time, at the option of the holder, for one fully paid and non-assessable share of common stock. The Class A common stock votes together with the common stock as a single class. Shares of Class A common stock have been issued to, and are owned by, certain individuals or entities affiliated with the Company’s external manager, TPG RE Finance Trust Management, L.P., a Delaware limited partnership (the “Manager”), and the sale or conversion to common stock by investors of such shares of Class A common stock is subject to certain restrictions. Diluted earnings per common share is calculated by including the effect of dilutive securities. The Company accounts for unvested share-based payment awards that contain non-forfeitable dividend rights or dividend equivalents (whether paid or unpaid) as participating securities, which are included in the computation of earnings per share pursuant to the two-class method. |
Share-Based Compensation | Share-Based Compensation Share-based compensation consists of awards issued by the Company to certain employees of affiliates of our Manager and certain members of our Board of Directors. These share-based awards generally vest in installments over a fixed period of time. Compensation expense is recognized in net income on a variable basis over the applicable award vesting period based on the value of our common stock. Forfeitures of share-based awards are recognized as they occur. |
Deferred Financing Costs | Deferred Financing Costs Deferred financing costs are reflected net of the collateralized loan obligation and secured financing agreements on the Company’s consolidated balance sheets. These costs are amortized in interest expense using the interest method or on a straight line basis when it approximates the interest method over the life of the related obligations. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash held in banks or invested in money market funds with original maturities of less than 90 days. The Company deposits its cash and cash equivalents with high credit quality institutions to minimize credit risk exposure. The Company maintains cash accounts at several financial institutions, which are insured up to a maximum of $250,000 per account as of June 30, 2018 and December 31, 2017. The balances in these accounts may exceed the insured limits. |
Restricted Cash | Restricted Cash Restricted cash primarily represents deposit proceeds from potential borrowers which may be returned to borrowers, after deducting transaction costs paid by the Company for the benefit of the borrowers, upon the closing of a loan transaction. |
Accounts Receivable from Servicer/Trustee | Accounts Receivable from Servicer/Trustee Accounts receivable from Servicer/Trustee represents cash proceeds from loan and CMBS investment activities that have not been remitted to the Company based on contractual procedures previously agreed upon. Amounts are generally held by the Servicer/Trustee for less than 60 days before being remitted to the Company. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. ASU 2016-13 will replace the “incurred loss” model under existing guidance with an “expected loss” model for instruments measured at amortized cost, and require entities to record allowances for available-for-sale debt securities rather than reduce the carrying amount, as they do today under the other-than-temporary impairment model. Upon adoption, and resulting from this change, the Company expects that it will be required to record a loan loss reserve at origination or acquisition of an individual loan or a loan portfolio. ASU 2016-13 also simplifies the accounting model for purchased credit-impaired debt securities and loans. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019 and is to be adopted through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company is currently evaluating the impact ASU 2016-13 will have on its consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”). ASU 2018-07 expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The amendments state that Topic 718 applies to all share-based payment awards. ASU 2018-07 is effective for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. Early adoption is permitted, but no earlier than an entity’s adoption of ASC 606, Revenue from Contracts with Customers. The Company is currently evaluating the impact ASU 2018-07 will have on its consolidated financial statements. |
Loans Held for Investment (Tabl
Loans Held for Investment (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Schedule of Loan Investment Portfolio | The following tables present an overview of the loan investment portfolio as of June 30, 2018 and December 31, 2017 (dollars in thousands): June 30, 2018 Loans Receivable Outstanding Principal Unamortized Premium (Discount), Loan Origination Fees, net Carrying Amount Senior loans $ 3,806,804 $ (20,252 ) $ 3,786,552 Subordinated and mezzanine loans 19,000 (1 ) 18,999 Subtotal before allowance 3,825,804 (20,253 ) 3,805,551 Allowance for loan losses — — — Total $ 3,825,804 $ (20,253 ) $ 3,805,551 December 31, 2017 Loans Receivable Outstanding Principal Unamortized Premium (Discount), Loan Origination Fees, net Carrying Amount Senior loans $ 3,122,670 $ (22,143 ) $ 3,100,527 Subordinated and mezzanine loans 75,446 (301 ) 75,145 Subtotal before allowance 3,198,116 (22,444 ) 3,175,672 Allowance for loan losses — — — Total $ 3,198,116 $ (22,444 ) $ 3,175,672 |
Summary of Loan Portfolio Activity | For the six months ended June 30, 2018, loan portfolio activity was as follows (dollars in thousands): Carrying Value Balance at December 31, 2017 $ 3,175,672 Additions during the period: Loans originated 1,040,793 Additional fundings 150,769 Amortization of discount and origination fees 9,112 Deductions during the period: Collection of principal (570,795 ) Balance at June 30, 2018 $ 3,805,551 |
Summary of Carrying Values and Results of Internal Risk Rating Review | The table below summarizes the carrying values and results of the Company’s internal risk rating review performed as of June 30, 2018 and December 31, 2017 (dollars in thousands): Carrying Value Rating June 30, 2018 December 31, 2017 1 $ 49,000 $ — 2 1,065,644 1,318,816 3 2,470,666 1,680,913 4 220,241 175,943 5 — — Totals $ 3,805,551 $ 3,175,672 Weighted Average Risk Rating (1) 2.8 2.6 (1) Weighted Average Risk Rating calculated based on unpaid principal balance at period end. |
Commercial Mortgage-Backed Se26
Commercial Mortgage-Backed Securities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Available-for-Sale Commercial Mortgage-Backed Securities | Details of the carrying and fair values of the Company’s CMBS portfolio are as follows (dollars in thousands): June 30, 2018 Face Amount Unamortized Premium (Discount), net Gross Unrealized Loss Estimated Fair Value Investments, at Fair Value Commercial mortgage-backed securities $ 218,979 $ 751 $ (1,672 ) $ 218,058 December 31, 2017 Face Amount Unamortized Premium (Discount), net Gross Unrealized Loss Estimated Fair Value Investments, at Fair Value Commercial mortgage-backed securities $ 85,661 $ 268 $ (34 ) $ 85,895 |
Available-for-Sale Commercial Mortgage-Backed Securities by Contractual Maturity | The Company’s CMBS have a weighted average contractual maturity, based on estimated fair value, of 18.2 years. The amortized cost and estimated fair value of the Company’s available-for-sale CMBS by contractual maturity are shown in the following table (dollars in thousands): June 30, 2018 Amortized Cost Estimated Fair Value Maturity Date After one, within five years $ 36,700 $ 36,872 After five years 183,031 181,186 Total investment in commercial mortgage-backed securities, at amortized cost and estimated fair value $ 219,731 $ 218,058 December 31, 2017 Amortized Cost Estimated Fair Value Maturity Date After one, within five years $ 36,700 $ 36,872 After five years 49,229 49,023 Total investment in commercial mortgage-backed securities, at amortized cost and estimated fair value $ 85,929 $ 85,895 |
Variable Interest Entities an27
Variable Interest Entities and Collateralized Loan Obligation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Summary of Variable Interest Entities Assets and Liabilities | The carrying values of the Company’s total assets and total liabilities related to TRTX 2018-FL1 at June 30, 2018 included the following VIE assets and liabilities (dollars in thousands): June 30, 2018 ASSETS Cash and Cash Equivalents $ 10,704 Accrued Interest Receivable 2,843 Accounts Receivable from Servicer/Trustee 35,902 Loans Held for Investment 896,480 Total Assets $ 945,929 LIABILITIES Accrued Interest Payable $ (1,047 ) Collateralized Loan Obligation (739,030 ) Total Liabilities $ (740,077 ) |
Collateralized Loan Obligation | |
Schedule of Borrowings and Corresponding Collateral | The following table outlines TRTX 2018-FL1 borrowings and loan collateral under the Company’s consolidated Issuers (dollars in thousands): As of June 30, 2018 Collateral (loan investments) Debt (notes issued) Outstanding Principal Carrying Value Face Value Carrying Value $ 896,480 $ 896,480 $ (745,904 ) $ (739,030 ) |
Secured Revolving Repurchase 28
Secured Revolving Repurchase Agreements, Senior Secured Credit Facility and Notes Payable (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Instrument [Line Items] | |
Schedule of Information Related to Notes Payable, Repurchase Agreement, Senior Secured Credit Facility | The following table presents certain information regarding the Company’s notes payable, secured revolving repurchase agreements, and senior secured credit facility as of June 30, 2018 and December 31, 2017, respectively. Except as otherwise noted, all agreements are on a non-recourse basis. Amounts included are shown in thousands: As of June 30, 2018 Notes Payable Maturity Date Index Rate Weighted Average Spread Interest Rate Commitment Amount Maximum Current Availability Balance Outstanding Principal Balance of Collateral Bank of the Ozarks 08/23/19 1 Month Libor 4.5 % 6.5 % $ 92,400 $ 17,927 $ 74,473 $ 106,391 Bank of the Ozarks 08/31/18 1 Month Libor 4.0 6.0 68,257 8,792 59,465 94,950 Deutsche Bank 12/29/18 1 Month Libor 3.3 5.2 49,644 14,938 34,706 53,394 BMO Harris Bank (1) 04/09/20 1 Month Libor 2.7 4.6 32,500 - 32,500 45,000 Subtotal 242,801 41,657 201,144 299,735 Repurchase Agreements Maturity Date Index Rate Weighted Average Spread Interest Rate Commitment Amount Maximum Current Availability Balance Outstanding Principal Balance of Collateral Goldman Sachs (1) 08/19/18 1 Month Libor 2.1 % 4.0 % $ 750,000 $ 271,445 $ 478,555 $ 670,708 Wells Fargo (1) 05/25/19 1 Month Libor 2.1 4.2 750,000 364,730 385,270 516,954 JP Morgan (1) 08/20/18 1 Month Libor 2.3 3.8 374,699 102,346 272,353 382,338 Morgan Stanley (1) 05/04/19 1 Month Libor 2.3 4.4 500,000 270,454 229,546 344,638 US Bank (1) 07/09/21 1 Month Libor 1.8 4.0 172,520 6,800 165,720 210,900 Goldman Sachs (CMBS) (2) 09/04/18 3 Month Libor — 2.3 100,000 66,557 33,443 38,920 Royal Bank of Canada (CMBS) (2) 09/20/18 3 Month Libor 1.0 3.3 100,000 92,331 7,669 8,418 Subtotal 2,747,219 1,174,663 1,572,556 2,172,876 Senior Secured Credit Facility Maturity Date Index Rate Weighted Average Spread Interest Rate Commitment Amount Maximum Current Availability Balance Outstanding Principal Balance of Collateral Bank of America (1) 09/29/20 1 Month Libor 1.9 % 3.9 % $ 500,000 $ 112,560 387,440 485,050 Total $ 3,490,020 $ 1,328,880 $ 2,161,140 $ 2,957,661 (1) Borrowings under secured revolving repurchase agreements, senior secured credit facility, and one note payable with a guarantee for 25% recourse. (2) Borrowings under secured revolving repurchase agreements with a guarantee for 100% recourse. Maturity Date represents the sooner of the next maturity date of the CMBS secured revolving repurchase agreement, or roll date for the applicable underlying trade confirmation, subsequent to June 30, 2018. As of December 31, 2017 Notes Payable Maturity Date Index Rate Weighted Average Spread Interest Rate Commitment Amount Maximum Current Availability Balance Outstanding Principal Balance of Collateral Bank of the Ozarks 08/23/19 1 Month Libor 4.5 % 5.9 % $ 92,400 $ 43,979 $ 48,421 $ 69,172 Bank of the Ozarks 08/31/18 1 Month Libor 4.0 5.4 68,600 14,151 54,449 77,784 Deutsche Bank 09/25/19 1 Month Libor 3.5 4.9 64,779 15,895 48,884 81,473 Deutsche Bank 06/29/18 1 Month Libor 3.3 4.6 49,644 18,224 31,420 48,339 Bank of the Ozarks 05/22/18 1 Month Libor 4.8 6.1 48,750 17,479 31,271 48,109 Deutsche Bank 12/09/18 1 Month Libor 3.7 5.0 42,543 1 42,542 60,775 BMO Harris Bank (1) 04/09/20 1 Month Libor 2.7 4.0 32,500 — 32,500 45,000 Subtotal 399,216 109,729 289,487 430,652 Repurchase Agreements Maturity Date Index Rate Weighted Average Spread Interest Rate Commitment Amount Maximum Current Availability Balance Outstanding Principal Balance of Collateral Goldman Sachs (1) 08/19/18 1 Month Libor 2.2 % 3.6 % $ 750,000 $ 183,253 $ 566,747 $ 890,736 Wells Fargo (1) 05/25/19 1 Month Libor 2.1 3.6 750,000 232,462 517,538 814,886 JP Morgan (1) 08/20/18 1 Month Libor 2.5 4.0 376,942 120,014 256,928 382,135 Morgan Stanley (1) 05/04/19 1 Month Libor 2.4 3.9 500,000 120,002 379,998 533,707 US Bank (1) 12/09/19 1 Month Libor 2.0 3.6 150,000 78,600 71,400 93,000 Goldman Sachs (CMBS) (2) 03/02/18 3 Month Libor 0.1 1.6 100,000 64,615 35,385 39,332 Royal Bank of Canada (CMBS) (2) 03/20/18 3 Month Libor 1.0 2.6 100,000 92,195 7,805 8,418 Subtotal 2,726,942 891,141 1,835,801 2,762,214 Senior Secured Credit Facility Maturity Date Index Rate Weighted Average Spread Interest Rate Commitment Amount Maximum Current Availability Balance Outstanding Principal Balance of Collateral Bank of America (1) 09/29/20 1 Month Libor — — $ 250,000 $ 250,000 — — Total $ 3,376,158 $ 1,250,870 $ 2,125,288 $ 3,192,866 (1) Borrowings under secured revolving repurchase agreements, senior secured credit facility, and one note payable with a guarantee for 25% recourse. (2) Borrowings under secured revolving repurchase agreements with a guarantee for 100% recourse. Maturity Date represents the sooner of the next maturity date of the CMBS secured revolving repurchase agreement, or roll date for the applicable underlying trade confirmation, subsequent to December 31, 2017. |
Summary of Repurchase Agreements Secured by CMBS, Short-term Borrowings, and Counterparty Concentration | June 30, 2018 Commitment Amount UPB of Collateral Carrying Value of Collateral (1) Amounts Payable under Repurchase Agreements (2) Net Counterparty Exposure (3) Percent of Stockholders' Equity Days to Extended Maturity (4) Goldman Sachs Bank $ 100,000 $ 38,920 $ 37,250 $ 33,619 $ 3,631 0.3 % $ 66 Royal Bank of Canada 100,000 8,418 8,547 7,710 837 0.1 82 Subtotal / Weighted Average $ 200,000 $ 47,338 $ 45,797 $ 41,329 $ 4,468 69 Total / Weighted Average - Loans and CMBS $ 2,747,219 $ 2,172,876 $ 2,165,776 $ 1,576,643 $ 589,133 839 (1) Amounts shown in the table include interest receivable of $0.1 million and are net of premium, discount, and unrealized gains of $1.7 million. (2) Amounts shown in the table include interest payable of $0.2 million. (3) Represents the net carrying value of available-for-sale securities sold under agreements to repurchase, including accrued interest plus any cash or assets on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest. (4) Represents the sooner of the next maturity date of the CMBS secured revolving repurchase agreement, or roll date for the applicable underlying trade confirmation, subsequent to June 30, 2018. The following table summarizes certain characteristics of the Company’s secured revolving repurchase agreements secured by CMBS, all of which are considered short-term borrowings, and comprise counterparty concentration risks, at December 31, 2017 (dollars in thousands): December 31, 2017 Commitment Amount UPB of Collateral Carrying Value of Collateral (1) Amounts Payable under Repurchase Agreements (2) Net Counterparty Exposure (3) Percent of Stockholders' Equity Days to Extended Maturity (4) Goldman Sachs Bank $ 100,000 $ 39,332 $ 39,213 $ 35,426 $ 3,787 0.3 % 61 Royal Bank of Canada 100,000 8,418 8,675 7,879 796 0.1 79 Subtotal / Weighted Average $ 200,000 $ 47,750 $ 47,888 $ 43,305 $ 4,583 64 Total / Weighted Average - Loans and CMBS $ 2,726,942 $ 2,762,214 $ 2,753,549 $ 1,839,319 $ 914,230 933 (1) Amounts shown in the table include interest receivable of $0.1 million. (2) Amounts shown in the table include interest payable of $0.1 million. (3) Represents the net carrying value of available-for-sale securities sold under agreements to repurchase, including accrued interest plus any cash or assets on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest. (4) Represents the sooner of the next maturity date of the CMBS secured revolving repurchase agreement, or roll date for the applicable underlying trade confirmation, subsequent to December 31, 2017. The agreements include various covenants covering net worth, liquidity, recourse limitations, and debt coverage. The Company believes it was in compliance with all covenants as of June 30, 2018 and December 31, 2017. |
Senior Secured Credit Facility | |
Debt Instrument [Line Items] | |
Schedule of Information Related to Notes Payable, Repurchase Agreement, Senior Secured Credit Facility | June 30, 2018 Senior Secured Credit Facility Maturity Date Index Rate Weighted Average Spread Interest Rate Commitment Amount Maximum Current Availability Balance Outstanding Bank of America 9/29/2020 1 Month Libor 1.9 % 3.9 % $ 500,000 $ 112,560 $ 387,440 |
Commercial Mortgage Loans | |
Debt Instrument [Line Items] | |
Summary of Repurchase Agreements Secured by Commercial Mortgage Loans, Long - term Borrowings, and Counterparty Concentration | At June 30, 2018 and December 31, 2017, the Company had five secured revolving repurchase agreements to finance its loan investing activities. Credit spreads vary depending upon the collateral type and advance rate. Assets pledged at June 30, 2018 and December 31, 2017 consisted of 50 and 48 mortgage loans, respectively. The following table summarizes certain characteristics of the Company’s secured revolving repurchase agreements secured by commercial mortgage loans, all of which are considered long-term borrowings, and comprise counterparty concentration risks, at June 30, 2018 (dollars in thousands): June 30, 2018 Commitment Amount UPB of Collateral Carrying Value of Collateral (1) Amounts Payable under Repurchase Agreements (2) Net Counterparty Exposure (3) Percent of Stockholders' Equity Days to Extended Maturity Goldman Sachs Bank $ 750,000 $ 670,708 $ 667,083 $ 479,758 $ 187,325 15.7 % 415 Wells Fargo Bank 750,000 516,954 515,026 385,912 129,114 10.8 1,060 Morgan Stanley Bank (4) 500,000 344,638 345,034 230,935 114,099 9.6 N/A JP Morgan Chase Bank 374,699 382,338 381,222 271,962 109,260 9.2 782 US Bank 172,520 210,900 211,614 166,747 44,867 3.8 1,835 Subtotal / Weighted Average 2,547,219 2,125,538 2,119,979 1,535,314 584,665 864 (1) Amounts shown in the table include interest receivable of $11.8 million and are net of premium, discount and origination fees of $17.3 million. (2) Amounts shown in the table include interest payable of $3.9 million and do not reflect unamortized deferred financing fees of $5.1 million. (3) Represents the net carrying value of the commercial real estate assets sold under agreements to repurchase, including accrued interest plus any cash or assets on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest. (4) The Morgan Stanley Bank credit facility is excluded from the Days to Extended Maturity calculation because it does not have a contractual maturity date. The following table summarizes certain characteristics of the Company’s secured revolving repurchase agreements secured by commercial mortgage loans, all of which are considered long-term borrowings, and comprise counterparty concentration risks, at December 31, 2017 (dollars in thousands): December 31, 2017 Commitment Amount UPB of Collateral Carrying Value of Collateral (1) Amounts Payable under Repurchase Agreements (2) Net Counterparty Exposure (3) Percent of Stockholders' Equity Days to Extended Maturity Goldman Sachs Bank $ 750,000 $ 890,736 $ 887,667 $ 568,012 $ 319,655 26.6 % 596 Wells Fargo Bank 750,000 814,886 811,257 518,353 292,904 24.4 1,241 Morgan Stanley Bank (4) 500,000 533,707 531,747 380,592 151,155 12.6 N/A JP Morgan Chase Bank 376,942 382,135 382,542 257,484 125,058 10.4 963 US Bank 150,000 93,000 92,448 71,573 20,875 1.7 1,804 Subtotal / Weighted Average 2,526,942 2,714,464 2,705,661 1,796,014 909,647 960 (1) Amounts shown in the table include interest receivable of $11.6 million and are net of premium, discount and origination fees of $20.4 million. (2) Amounts shown in the table include interest payable of $3.4 million and do not reflect unamortized deferred financing fees of $8.7 million. (3) Represents the net carrying value of the commercial real estate assets sold under agreements to repurchase, including accrued interest plus any cash or assets on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest. (4) The Morgan Stanley Bank credit facility is excluded from the Days to Extended Maturity calculation because it does not have a contractual maturity date. |
Schedule of Maturities (Tables)
Schedule of Maturities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Future Principal Payments | The future principal payments for the five years subsequent to June 30, 2018 and thereafter are as follows (in thousands): CLO (TRTX 2018-FL1) Senior Secured Credit Facility Repurchase Agreements Notes Payable 2018 $ 36,117 $ — $ 815,582 $ 94,171 2019 435,869 — 662,654 74,473 2020 214,153 387,440 61,120 32,500 2021 54,765 — 33,200 — 2022 — — — — Thereafter — — — — Total $ 740,904 $ 387,440 $ 1,572,556 $ 201,144 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets and Liabilities Not Carried at Fair Value On Recurring Basis | The following tables provide information about financial assets and liabilities not carried at fair value on a recurring basis in our consolidated balance sheet (dollars in thousands): June 30, 2018 Carrying Value Level I Level II Level III Financial Assets Loans Held for Investment $ 3,805,551 $ — $ — $ 3,831,838 Financial Liabilities CLO (TRTX 2018-FL1) 734,030 — — 734,030 Secured Financing Arrangements 2,152,641 — — 2,152,641 December 31, 2017 Carrying Value Level I Level II Level III Financial Assets Loans Held for Investment $ 3,175,672 $ — $ — $ 3,202,150 Financial Liabilities Secured Financing Arrangements 2,114,990 — — 2,114,990 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Summary of Management Agreement Fees Incurred and Paid Related to Pre-IPO and Post-IPO Management Agreements and Collateral Management Agreement | For the three and six months ended June 30, 2018 and 2017, the Company incurred and paid the following management fees, incentive management fees, and collateral management fees related to its pre-IPO and Post-IPO Management Agreements and the 2014-CLO Collateral Management Agreement (dollars in thousands): Three Months Ended June 30, 2018 2017 Post-IPO Management Agreement fees incurred $ 5,909 $ — Post-IPO Management Agreement fees paid 5,630 — Pre-IPO Management Agreement and Collateral Management fees incurred — 4,644 Pre-IPO Management Agreement and Collateral Management fees paid — 4,291 Six Months Ended June 30, 2018 2017 Post-IPO Management Agreement fees incurred $ 11,539 $ — Post-IPO Management Agreement fees paid 10,862 — Pre-IPO Management Agreement and Collateral Management fees incurred — 8,944 Pre-IPO Management Agreement and Collateral Management fees paid — 7,356 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Basic and Diluted Earnings per Common Share | The following table sets forth the calculation of basic and diluted earnings per common share (common stock and Class A common stock) based on the weighted-average number of shares of common stock and Class A common stock outstanding (in thousands, except share and per share data): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Net Income Attributable to Common Stockholders $ 26,438 $ 25,320 $ 51,549 $ 48,795 Weighted Average Common Shares Outstanding, Basic and Diluted 60,175,373 48,664,664 60,283,992 48,555,950 Per Common Share Amount, Basic and Diluted $ 0.44 $ 0.52 $ 0.86 $ 1.00 |
Concentration of Credit Risk (T
Concentration of Credit Risk (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Loans And Leases Receivable Disclosure [Line Items] | |
Summary of Loan Portfolio by Property/ Loan Category Type | Property Type A summary of the loan portfolio by property type as of June 30, 2018 and December 31, 2017 based on total loan commitment and current unpaid principal balance (“UPB”) is as follows (dollars in thousands): June 30, 2018 Property Type Loan Commitment Unfunded Commitment % of Loan Commitment Loan UPB % of Loan UPB Office $ 1,554,004 $ 242,617 36.2 % $ 1,311,388 34.2 % Multifamily 883,355 69,707 20.5 813,648 21.3 Hotel 677,069 17,933 15.7 659,136 17.2 Mixed Use 543,500 55,607 12.6 487,893 12.8 Condominium 391,206 51,858 9.1 339,348 8.9 Retail 182,918 45,123 4.2 137,795 3.6 Industrial 66,500 — 1.5 66,500 1.7 Other 10,096 — 0.2 10,096 0.3 Total $ 4,308,648 $ 482,845 100.0 % $ 3,825,804 100.0 % December 31, 2017 Property Type Loan Commitment Unfunded Commitment % of Loan Commitment Loan UPB % of Loan UPB Office $ 836,826 $ 160,450 22.5 % $ 676,376 21.1 % Multifamily 813,775 75,509 21.8 738,266 23.1 Hotel 693,569 27,980 18.6 665,589 20.8 Condominium 679,779 166,358 18.2 513,421 16.1 Mixed Use 431,500 57,243 11.6 374,257 11.7 Retail 195,012 41,500 5.2 153,512 4.8 Industrial 66,500 — 1.8 66,500 2.1 Other 10,195 — 0.3 10,195 0.3 Total $ 3,727,156 $ 529,040 100.0 % $ 3,198,116 100.0 % |
Summary of Geographic Composition of Loans Held for Investment Based on Current UPB and Loan Commitment | All of the Company’s loans held for investment are secured by properties within the United States. The geographic composition of loans held for investment based on total loan commitment and current UPB as of June 30, 2018 and December 31, 2017 is as follows (dollars in thousands): June 30, 2018 Geographic Region Loan Commitment Unfunded Commitment % Loan Commitment Loan UPB % Loan UPB East $ 2,076,177 $ 177,737 48.3 % $ 1,898,441 49.7 % South 1,099,298 202,386 25.5 896,912 23.4 West 794,154 93,324 18.4 700,830 18.3 Midwest 290,019 9,398 6.7 280,621 7.3 Various 49,000 — 1.1 49,000 1.3 Total $ 4,308,648 $ 482,845 100.0 % $ 3,825,804 100.0 % December 31, 2017 Geographic Region Loan Commitment Unfunded Commitment % Loan Commitment Loan UPB % Loan UPB East $ 1,600,619 $ 167,447 42.9 % $ 1,433,172 44.8 % South 1,147,510 278,890 30.8 868,620 27.2 West 674,123 67,746 18.1 606,377 19.0 Midwest 255,904 14,957 6.9 240,947 7.5 Various 49,000 — 1.3 49,000 1.5 Total $ 3,727,156 $ 529,040 100.0 % $ 3,198,116 100.0 % |
Loan Category | |
Loans And Leases Receivable Disclosure [Line Items] | |
Summary of Loan Portfolio by Property/ Loan Category Type | A summary of the loan portfolio by category as of June 30, 2018 and December 31, 2017 based on total loan commitment and current UPB is as follows (dollars in thousands): June 30, 2018 Loan Category Loan Commitment Unfunded Commitment % Loan Commitment Loan UPB % Loan UPB Bridge $ 2,510,532 $ 204,473 58.3 % $ 2,306,060 60.2 % Light Transitional 760,034 86,988 17.6 673,046 17.6 Moderate Transitional 732,197 140,233 17.0 591,964 15.5 Construction 305,885 51,151 7.1 254,734 6.7 Total $ 4,308,648 $ 482,845 100.0 % $ 3,825,804 100.0 % December 31, 2017 Loan Category Loan Commitment Unfunded Commitment % Loan Commitment Loan UPB % Loan UPB Bridge $ 1,927,488 $ 176,316 51.7 % $ 1,751,172 54.7 % Moderate Transitional 723,075 132,483 19.4 590,592 18.5 Construction 609,468 166,358 16.4 443,110 13.9 Light Transitional 467,125 53,883 12.5 413,242 12.9 Total $ 3,727,156 $ 529,040 100.0 % $ 3,198,116 100.0 % |
Summary of Significant Accoun34
Summary of Significant Accounting Policies - Additional Information (Details) | 6 Months Ended | |
Jun. 30, 2018USD ($)Loan | Dec. 31, 2017USD ($)Loan | |
Accounting Policies [Abstract] | ||
Threshold period of delinquency | 90 days | |
Number of loans on non-accrual status | Loan | 0 | 0 |
Percentage of senior mortgage loan transferred to third-party | 100.00% | |
Maximum insured amount of each cash account | $ | $ 250,000 | $ 250,000 |
Loans Held for Investment - Add
Loans Held for Investment - Additional Information (Details) | 6 Months Ended | |
Jun. 30, 2018USD ($)RatingLoan | Dec. 31, 2017USD ($)RatingLoan | |
Accounts Notes And Loans Receivable [Line Items] | ||
Total loan commitment amount | $ 4,308,648,000 | $ 3,727,156,000 |
Unfunded loan commitments | 482,845,000 | 529,040,000 |
Unaccreted discount | $ 300,000 | $ 2,000,000 |
Number of loans on non-accrual status | Loan | 0 | 0 |
Reserve | $ 0 | $ 0 |
Weighted average risk rating | Rating | 2.8 | 2.6 |
Moved from Three Risk Rating into Four Risk Rating | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Number of loans selected for risk rate changes | Loan | 1 | |
Moved from Two Risk Rating into Three Risk Rating | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Number of loans selected for risk rate changes | Loan | 1 | |
German American Capital Corporation | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Number of loans originated or acquired | Loan | 14 | |
Total loan commitment amount | $ 1,200,000,000 | |
Unpaid principal balance | 1,000,000,000 | |
Unfunded loan commitments | 141,000,000 | |
German American Capital Corporation | Non-recourse Senior Loan | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loan commitment amount | $ 44,000,000 |
Loans Held for Investment - Sch
Loans Held for Investment - Schedule of Loan Investment Portfolio (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Loans And Leases Receivable Disclosure [Line Items] | ||
Outstanding Principal, before allowance for loan losses | $ 3,825,804 | $ 3,198,116 |
Unamortized Premium (Discount), Loan Origination Fees net, before allowance for loan losses | (20,253) | (22,444) |
Carrying Amount, before allowance for loan losses | 3,805,551 | 3,175,672 |
Outstanding Principal, after allowance for loan losses | 3,825,804 | 3,198,116 |
Unamortized Premium (Discount), Loan Origination Fees net, after allowance for loan losses | (20,253) | (22,444) |
Carrying Amount, after allowance for loan losses | 3,805,551 | 3,175,672 |
Senior Loans | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Outstanding Principal, before allowance for loan losses | 3,806,804 | 3,122,670 |
Unamortized Premium (Discount), Loan Origination Fees net, before allowance for loan losses | (20,252) | (22,143) |
Carrying Amount, before allowance for loan losses | 3,786,552 | 3,100,527 |
Subordinated and Mezzanine Loans | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Outstanding Principal, before allowance for loan losses | 19,000 | 75,446 |
Unamortized Premium (Discount), Loan Origination Fees net, before allowance for loan losses | (1) | (301) |
Carrying Amount, before allowance for loan losses | $ 18,999 | $ 75,145 |
Loans Held for Investment - Sum
Loans Held for Investment - Summary of Loan Portfolio Activity (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Loans And Leases Receivable Disclosure [Abstract] | |
Balance at December 31, 2017 | $ 3,175,672 |
Loans originated | 1,040,793 |
Additional fundings | 150,769 |
Amortization of discount and origination fees | 9,112 |
Collection of principal | (570,795) |
Balance at June 30, 2018 | $ 3,805,551 |
Loans Held for Investment - S38
Loans Held for Investment - Summary of Carrying Values and Results of Internal Risk Rating Review Performed (Details) $ in Thousands | Jun. 30, 2018USD ($)Rating | Dec. 31, 2017USD ($)Rating |
Accounts Notes And Loans Receivable [Line Items] | ||
Carrying Value | $ 3,805,551 | $ 3,175,672 |
Weighted Average Risk Rating | Rating | 2.8 | 2.6 |
Rating 1 | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Carrying Value | $ 49,000 | |
Rating 2 | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Carrying Value | 1,065,644 | $ 1,318,816 |
Rating 3 | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Carrying Value | 2,470,666 | 1,680,913 |
Rating 4 | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Carrying Value | $ 220,241 | $ 175,943 |
Commercial Mortgage-Backed Se39
Commercial Mortgage-Backed Securities - Additional Information (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018USD ($)Investment | Jun. 30, 2018USD ($)Investment | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($)Investment | |
Schedule Of Available For Sale Securities [Line Items] | ||||
Payments to acquire investments | $ 143,643,000 | $ 96,610,000 | ||
Weighted average contractual maturity, Terms | 18 years 2 months 12 days | |||
Commercial Mortgage-Backed Securities | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Number of investments purchased | Investment | 7 | 17 | ||
Weighted average coupon rate | 2.90% | |||
Payments to acquire investments | $ 74,900,000 | $ 138,000,000 | ||
Number of Investments | Investment | 22 | 22 | 5 | |
Other than temporary impairments on available-for-sale | $ 0 | $ 0 | $ 0 |
Commercial Mortgage-Backed Se40
Commercial Mortgage-Backed Securities - Available-for-Sale Commercial Mortgage-Backed Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated Fair Value | $ 218,058 | $ 85,895 |
Commercial Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Face Amount | 218,979 | 85,661 |
Unamortized Premium (Discount), net | 751 | 268 |
Gross Unrealized Loss | (1,672) | (34) |
Estimated Fair Value | $ 218,058 | $ 85,895 |
Commercial Mortgage-Backed Se41
Commercial Mortgage-Backed Securities - Available-for-Sale Commercial Mortgage-Backed Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Estimated Fair Value | ||
Total investment in commercial mortgage-backed securities, at amortized cost and estimated fair value | $ 218,058 | $ 85,895 |
Commercial Mortgage-Backed Securities | ||
Amortized Cost | ||
After one, within five years | 36,700 | 36,700 |
After five years | 183,031 | 49,229 |
Total investment in commercial mortgage-backed securities, at amortized cost and estimated fair value | 219,731 | 85,929 |
Estimated Fair Value | ||
After one, within five years | 36,872 | 36,872 |
After five years | 181,186 | 49,023 |
Total investment in commercial mortgage-backed securities, at amortized cost and estimated fair value | $ 218,058 | $ 85,895 |
Variable Interest Entities an42
Variable Interest Entities and Collateralized Loan Obligation - Additional Information (Details) | Aug. 23, 2017USD ($) | Aug. 16, 2017USD ($)Loan | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Feb. 16, 2018USD ($) | Feb. 14, 2018USD ($)$ / shares | Dec. 31, 2017USD ($) | Aug. 18, 2017USD ($)Loan | Dec. 29, 2014USD ($) |
Variable Interest Entities and Collateralized Loan Obligation [Line Items] | |||||||||||
Loans held for investment, aggregate unpaid principal balance percentage | 23.40% | 23.40% | |||||||||
Amortization of deferred financing costs recorded to interest expense | $ 7,900,000 | $ 5,453,000 | |||||||||
German American Capital Corporation | |||||||||||
Variable Interest Entities and Collateralized Loan Obligation [Line Items] | |||||||||||
Percentage of interest in loans acquired | 75.00% | ||||||||||
Loans secured, face value | $ 2,400,000,000 | ||||||||||
Class A Senior Secured Note | |||||||||||
Variable Interest Entities and Collateralized Loan Obligation [Line Items] | |||||||||||
Unpaid principal balance of loan | $ 12,800,000 | ||||||||||
Loss on sale of first mortgage loan participation interests | (200,000) | ||||||||||
Class A Senior Secured Note | CLO Issuer | |||||||||||
Variable Interest Entities and Collateralized Loan Obligation [Line Items] | |||||||||||
Outstanding principal balance | $ 118,000,000 | ||||||||||
Number of first mortgage loan participation interests sold | Loan | 2 | 7 | |||||||||
Unpaid principal balance of loan | $ 138,500,000 | ||||||||||
Cash | $ 3,000,000 | ||||||||||
Repayment of Class A Note | $ 118,000,000 | ||||||||||
Securities | |||||||||||
Variable Interest Entities and Collateralized Loan Obligation [Line Items] | |||||||||||
Liquidation preference notional amount | $ 1,000,000 | ||||||||||
TPG Real Estate Finance 2018-FL1 Issuer, Ltd. and TPG RE Finance Trust 2018-FL1 Co-Issuer, LLC | |||||||||||
Variable Interest Entities and Collateralized Loan Obligation [Line Items] | |||||||||||
Preferred shares par value per share | $ / shares | $ 0.001 | ||||||||||
TPG Real Estate Finance 2018-FL1 Issuer, Ltd. and TPG RE Finance Trust 2018-FL1 Co-Issuer, LLC | Notes | |||||||||||
Variable Interest Entities and Collateralized Loan Obligation [Line Items] | |||||||||||
Principal amount of notes issued | $ 820,500,000 | ||||||||||
TPG Real Estate Finance 2018-FL1 Issuer, Ltd. and TPG RE Finance Trust 2018-FL1 Co-Issuer, LLC | Securities | |||||||||||
Variable Interest Entities and Collateralized Loan Obligation [Line Items] | |||||||||||
Variable interest entity retained ownership amount | $ 186,500,000 | ||||||||||
Co-Issuer | |||||||||||
Variable Interest Entities and Collateralized Loan Obligation [Line Items] | |||||||||||
Principal amount of notes issued | $ 745,900,000 | ||||||||||
Mortgage Asset | |||||||||||
Variable Interest Entities and Collateralized Loan Obligation [Line Items] | |||||||||||
Principal amount of notes issued | $ 896,500,000 | 896,500,000 | |||||||||
Collateralized Loan Obligation | |||||||||||
Variable Interest Entities and Collateralized Loan Obligation [Line Items] | |||||||||||
Principal amount of notes issued | 745,904,000 | 745,904,000 | |||||||||
Net cash proceeds utilizing replenishment feature | 13,900,000 | ||||||||||
Companion participation interests related to replenishment | 56,900,000 | ||||||||||
Repayment of existing borrowings including accrued interest | 43,000,000 | ||||||||||
Amortization of deferred financing costs recorded to interest expense | 5,600,000 | $ 4,000,000 | 8,300,000 | $ 8,700,000 | |||||||
Unamortized deferred financing costs | 6,900,000 | $ 6,900,000 | $ 0 | ||||||||
Collateralized Loan Obligation | Class A Senior Secured Note | |||||||||||
Variable Interest Entities and Collateralized Loan Obligation [Line Items] | |||||||||||
Payments to acquire variable interest entity as an investment (principal amount) | $ 5,000,000 |
Variable Interest Entities an43
Variable Interest Entities and Collateralized Loan Obligation - Summary of Variable Interest Entities Assets and Liabilities (Details) - Variable Interest Entity, Primary Beneficiary $ in Thousands | Jun. 30, 2018USD ($) |
ASSETS | |
Total Assets | $ 945,929 |
LIABILITIES | |
Total Liabilities | (740,077) |
Cash and Cash Equivalents | |
ASSETS | |
Total Assets | 10,704 |
Accounts Receivable from Servicer/Trustee | |
ASSETS | |
Total Assets | 35,902 |
Accrued Interest Receivable | |
ASSETS | |
Total Assets | 2,843 |
Loans Held for Investment | |
ASSETS | |
Total Assets | 896,480 |
Accrued Interest Payable | |
LIABILITIES | |
Total Liabilities | (1,047) |
Collateralized Loan Obligation | |
LIABILITIES | |
Total Liabilities | $ (739,030) |
Variable Interest Entities an44
Variable Interest Entities and Collateralized Loan Obligation - Schedule of Borrowings and Corresponding Collateral (Details) $ in Thousands | Jun. 30, 2018USD ($) | |
Debt Instrument [Line Items] | ||
Debt, Carrying Value | $ (734,030) | [1] |
Collateralized Loan Obligation | ||
Debt Instrument [Line Items] | ||
Collateral (loans), Outstanding Principal | 896,480 | |
Collateral (loans), Carrying Value | 896,480 | |
Debt, Face Value | (745,904) | |
Debt, Carrying Value | $ (739,030) | |
[1] | At December 31, 2017, there were no VIE assets or liabilities recorded in the Company’s Total Assets and Total Liabilities. The Company’s consolidated Total Assets and Total Liabilities at June 30, 2018 include VIE assets and liabilities of $945.9 million and $740.1 million, respectively. These assets can be used only to satisfy obligations of the VIE, and creditors of the VIE have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details |
Summary of Notes Payable, Secur
Summary of Notes Payable, Secured Revolving Repurchase Agreements, Senior Secured Credit Facility (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Index Rate | one-month LIBOR | |
Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Commitment Amount | $ 2,747,219 | $ 2,726,942 |
Maximum Current Availability | 1,174,663 | 891,141 |
Balance Outstanding | 1,572,556 | 1,835,801 |
Collateral (loans), Outstanding Principal | 2,172,876 | 2,762,214 |
Senior Secured Credit Facility | ||
Debt Instrument [Line Items] | ||
Commitment Amount | 3,490,020 | 3,376,158 |
Maximum Current Availability | 1,328,880 | 1,250,870 |
Balance Outstanding | 2,161,140 | 2,125,288 |
Collateral (loans), Outstanding Principal | 2,957,661 | 3,192,866 |
Notes Payable | ||
Debt Instrument [Line Items] | ||
Commitment Amount | 242,801 | 399,216 |
Maximum Current Availability | 41,657 | 109,729 |
Balance Outstanding | 201,144 | 289,487 |
Collateral (loans), Outstanding Principal | $ 299,735 | $ 430,652 |
Debt Instrument, Interest Rate at 3.6% | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Maturity Date | Dec. 9, 2019 | |
Index Rate | 1 Month Libor | |
Weighted Average Spread | 2.00% | |
Interest Rate | 3.60% | |
Commitment Amount | $ 150,000 | |
Maximum Current Availability | 78,600 | |
Balance Outstanding | 71,400 | |
Collateral (loans), Outstanding Principal | $ 93,000 | |
Bank of the Ozarks | Debt Instrument, Interest Rate at 6.5% | Notes Payable | ||
Debt Instrument [Line Items] | ||
Maturity Date | Aug. 23, 2019 | |
Index Rate | 1 Month Libor | |
Weighted Average Spread | 4.50% | |
Interest Rate | 6.50% | |
Commitment Amount | $ 92,400 | |
Maximum Current Availability | 17,927 | |
Balance Outstanding | 74,473 | |
Collateral (loans), Outstanding Principal | $ 106,391 | |
Bank of the Ozarks | Debt Instrument, Interest Rate at 6.0% | Notes Payable | ||
Debt Instrument [Line Items] | ||
Maturity Date | Aug. 31, 2018 | |
Index Rate | 1 Month Libor | |
Weighted Average Spread | 4.00% | |
Interest Rate | 6.00% | |
Commitment Amount | $ 68,257 | |
Maximum Current Availability | 8,792 | |
Balance Outstanding | 59,465 | |
Collateral (loans), Outstanding Principal | $ 94,950 | |
Bank of the Ozarks | Debt Instrument, Interest Rate at 5.9% | Notes Payable | ||
Debt Instrument [Line Items] | ||
Maturity Date | Aug. 23, 2019 | |
Index Rate | 1 Month Libor | |
Weighted Average Spread | 4.50% | |
Interest Rate | 5.90% | |
Commitment Amount | $ 92,400 | |
Maximum Current Availability | 43,979 | |
Balance Outstanding | 48,421 | |
Collateral (loans), Outstanding Principal | $ 69,172 | |
Bank of the Ozarks | Debt Instrument, Interest Rate at 5.4% | Notes Payable | ||
Debt Instrument [Line Items] | ||
Maturity Date | Aug. 31, 2018 | |
Index Rate | 1 Month Libor | |
Weighted Average Spread | 4.00% | |
Interest Rate | 5.40% | |
Commitment Amount | $ 68,600 | |
Maximum Current Availability | 14,151 | |
Balance Outstanding | 54,449 | |
Collateral (loans), Outstanding Principal | $ 77,784 | |
Bank of the Ozarks | Debt Instrument, Interest Rate at 6.1% | Notes Payable | ||
Debt Instrument [Line Items] | ||
Maturity Date | May 22, 2018 | |
Index Rate | 1 Month Libor | |
Weighted Average Spread | 4.80% | |
Interest Rate | 6.10% | |
Commitment Amount | $ 48,750 | |
Maximum Current Availability | 17,479 | |
Balance Outstanding | 31,271 | |
Collateral (loans), Outstanding Principal | $ 48,109 | |
Deutsche Bank | Debt Instrument, Interest Rate at 5.2% | Notes Payable | ||
Debt Instrument [Line Items] | ||
Maturity Date | Dec. 29, 2018 | |
Index Rate | 1 Month Libor | |
Weighted Average Spread | 3.30% | |
Interest Rate | 5.20% | |
Commitment Amount | $ 49,644 | |
Maximum Current Availability | 14,938 | |
Balance Outstanding | 34,706 | |
Collateral (loans), Outstanding Principal | $ 53,394 | |
Deutsche Bank | Debt Instrument, Interest Rate at 4.6% | Notes Payable | ||
Debt Instrument [Line Items] | ||
Maturity Date | Jun. 29, 2018 | |
Index Rate | 1 Month Libor | |
Weighted Average Spread | 3.30% | |
Interest Rate | 4.60% | |
Commitment Amount | $ 49,644 | |
Maximum Current Availability | 18,224 | |
Balance Outstanding | 31,420 | |
Collateral (loans), Outstanding Principal | $ 48,339 | |
Deutsche Bank | Debt Instrument, Interest Rate at 4.9% | Notes Payable | ||
Debt Instrument [Line Items] | ||
Maturity Date | Sep. 25, 2019 | |
Index Rate | 1 Month Libor | |
Weighted Average Spread | 3.50% | |
Interest Rate | 4.90% | |
Commitment Amount | $ 64,779 | |
Maximum Current Availability | 15,895 | |
Balance Outstanding | 48,884 | |
Collateral (loans), Outstanding Principal | $ 81,473 | |
Deutsche Bank | Debt Instrument, Interest Rate at 5.0% | Notes Payable | ||
Debt Instrument [Line Items] | ||
Maturity Date | Dec. 9, 2018 | |
Index Rate | 1 Month Libor | |
Weighted Average Spread | 3.70% | |
Interest Rate | 5.00% | |
Commitment Amount | $ 42,543 | |
Maximum Current Availability | 1 | |
Balance Outstanding | 42,542 | |
Collateral (loans), Outstanding Principal | $ 60,775 | |
BMO Harris Bank | Debt Instrument, Interest Rate at 4.6% | Notes Payable | ||
Debt Instrument [Line Items] | ||
Maturity Date | Apr. 9, 2020 | |
Index Rate | 1 Month Libor | |
Weighted Average Spread | 2.70% | |
Interest Rate | 4.60% | |
Commitment Amount | $ 32,500 | |
Balance Outstanding | 32,500 | |
Collateral (loans), Outstanding Principal | $ 45,000 | |
BMO Harris Bank | Debt Instrument, Interest Rate at 4.0% | Notes Payable | ||
Debt Instrument [Line Items] | ||
Maturity Date | Apr. 9, 2020 | |
Index Rate | 1 Month Libor | |
Weighted Average Spread | 2.70% | |
Interest Rate | 4.00% | |
Commitment Amount | $ 32,500 | |
Balance Outstanding | 32,500 | |
Collateral (loans), Outstanding Principal | $ 45,000 | |
Goldman Sachs | Debt Instrument, Interest Rate at 4.0% | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Maturity Date | Aug. 19, 2018 | |
Index Rate | 1 Month Libor | |
Weighted Average Spread | 2.10% | |
Interest Rate | 4.00% | |
Commitment Amount | $ 750,000 | |
Maximum Current Availability | 271,445 | |
Balance Outstanding | 478,555 | |
Collateral (loans), Outstanding Principal | $ 670,708 | |
Goldman Sachs | Debt Instrument, Interest Rate at 2.3% | CMBS | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Maturity Date | Sep. 4, 2018 | |
Index Rate | 3 Month Libor | |
Interest Rate | 2.30% | |
Commitment Amount | $ 100,000 | |
Maximum Current Availability | 66,557 | |
Balance Outstanding | 33,443 | |
Collateral (loans), Outstanding Principal | $ 38,920 | |
Goldman Sachs | Debt Instrument, Interest Rate at 3.6% | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Maturity Date | Aug. 19, 2018 | |
Index Rate | 1 Month Libor | |
Weighted Average Spread | 2.20% | |
Interest Rate | 3.60% | |
Commitment Amount | $ 750,000 | |
Maximum Current Availability | 183,253 | |
Balance Outstanding | 566,747 | |
Collateral (loans), Outstanding Principal | $ 890,736 | |
Goldman Sachs | Debt Instrument, Interest Rate at 1.6% | CMBS | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Maturity Date | Mar. 2, 2018 | |
Index Rate | 3 Month Libor | |
Weighted Average Spread | 0.10% | |
Interest Rate | 1.60% | |
Commitment Amount | $ 100,000 | |
Maximum Current Availability | 64,615 | |
Balance Outstanding | 35,385 | |
Collateral (loans), Outstanding Principal | $ 39,332 | |
Wells Fargo | Debt Instrument, Interest Rate at 4.2% | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Maturity Date | May 25, 2019 | |
Index Rate | 1 Month Libor | |
Weighted Average Spread | 2.10% | |
Interest Rate | 4.20% | |
Commitment Amount | $ 750,000 | |
Maximum Current Availability | 364,730 | |
Balance Outstanding | 385,270 | |
Collateral (loans), Outstanding Principal | $ 516,954 | |
Wells Fargo | Debt Instrument, Interest Rate at 3.6% | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Maturity Date | May 25, 2019 | |
Index Rate | 1 Month Libor | |
Weighted Average Spread | 2.10% | |
Interest Rate | 3.60% | |
Commitment Amount | $ 750,000 | |
Maximum Current Availability | 232,462 | |
Balance Outstanding | 517,538 | |
Collateral (loans), Outstanding Principal | $ 814,886 | |
JP Morgan | Debt Instrument, Interest Rate at 4.0% | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Maturity Date | Aug. 20, 2018 | |
Index Rate | 1 Month Libor | |
Weighted Average Spread | 2.50% | |
Interest Rate | 4.00% | |
Commitment Amount | $ 376,942 | |
Maximum Current Availability | 120,014 | |
Balance Outstanding | 256,928 | |
Collateral (loans), Outstanding Principal | $ 382,135 | |
JP Morgan | Debt Instrument, Interest Rate at 3.8% | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Maturity Date | Aug. 20, 2018 | |
Index Rate | 1 Month Libor | |
Weighted Average Spread | 2.30% | |
Interest Rate | 3.80% | |
Commitment Amount | $ 374,699 | |
Maximum Current Availability | 102,346 | |
Balance Outstanding | 272,353 | |
Collateral (loans), Outstanding Principal | $ 382,338 | |
Morgan Stanley | Debt Instrument, Interest Rate at 4.4% | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Maturity Date | May 4, 2019 | |
Index Rate | 1 Month Libor | |
Weighted Average Spread | 2.30% | |
Interest Rate | 4.40% | |
Commitment Amount | $ 500,000 | |
Maximum Current Availability | 270,454 | |
Balance Outstanding | 229,546 | |
Collateral (loans), Outstanding Principal | $ 344,638 | |
Morgan Stanley | Debt Instrument, Interest Rate at 3.9% | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Maturity Date | May 4, 2019 | |
Index Rate | 1 Month Libor | |
Weighted Average Spread | 2.40% | |
Interest Rate | 3.90% | |
Commitment Amount | $ 500,000 | |
Maximum Current Availability | 120,002 | |
Balance Outstanding | 379,998 | |
Collateral (loans), Outstanding Principal | $ 533,707 | |
US Bank | Debt Instrument, Interest Rate at 4.0% | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Maturity Date | Jul. 9, 2021 | |
Index Rate | 1 Month Libor | |
Weighted Average Spread | 1.80% | |
Interest Rate | 4.00% | |
Commitment Amount | $ 172,520 | |
Maximum Current Availability | 6,800 | |
Balance Outstanding | 165,720 | |
Collateral (loans), Outstanding Principal | $ 210,900 | |
Royal Bank of Canada | Debt Instrument, Interest Rate at 3.3% | CMBS | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Maturity Date | Sep. 20, 2018 | |
Index Rate | 3 Month Libor | |
Weighted Average Spread | 1.00% | |
Interest Rate | 3.30% | |
Commitment Amount | $ 100,000 | |
Maximum Current Availability | 92,331 | |
Balance Outstanding | 7,669 | |
Collateral (loans), Outstanding Principal | $ 8,418 | |
Royal Bank of Canada | Debt Instrument, Interest Rate at 2.6% | CMBS | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Maturity Date | Mar. 20, 2018 | |
Index Rate | 3 Month Libor | |
Weighted Average Spread | 1.00% | |
Interest Rate | 2.60% | |
Commitment Amount | $ 100,000 | |
Maximum Current Availability | 92,195 | |
Balance Outstanding | 7,805 | |
Collateral (loans), Outstanding Principal | $ 8,418 | |
Bank of America | Senior Secured Credit Facility | ||
Debt Instrument [Line Items] | ||
Maturity Date | Sep. 29, 2020 | Sep. 29, 2020 |
Index Rate | 1 Month Libor | 1 Month Libor |
Weighted Average Spread | 1.90% | |
Interest Rate | 3.90% | |
Commitment Amount | $ 500,000 | $ 250,000 |
Maximum Current Availability | 112,560 | 250,000 |
Balance Outstanding | 387,440 | $ 0 |
Collateral (loans), Outstanding Principal | $ 485,050 | |
Bank of America | Debt Instrument, Interest Rate at 3.9% | Senior Secured Credit Facility | ||
Debt Instrument [Line Items] | ||
Maturity Date | Sep. 29, 2020 | |
Index Rate | 1 Month Libor | |
Weighted Average Spread | 1.90% | |
Interest Rate | 3.90% | |
Commitment Amount | $ 500,000 | |
Maximum Current Availability | 112,560 | |
Balance Outstanding | $ 387,440 |
Summary of Notes Payable, Sec46
Summary of Notes Payable, Secured Revolving Repurchase Agreements, Senior Secured Credit Facility (Parenthetical) (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Repurchase Agreements, Senior Secured Credit Facility and Note Payable | ||
Debt Instrument [Line Items] | ||
Recourse guarantee percentage | 25.00% | 25.00% |
Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Recourse guarantee percentage | 100.00% | 100.00% |
Secured Revolving Repurchase 47
Secured Revolving Repurchase Agreements, Senior Secured Credit Facility and Notes Payable - Additional Information (Details) | Sep. 29, 2017USD ($) | Jun. 30, 2018USD ($)LoanAgreement | Dec. 31, 2017USD ($)LoanAgreement | Jun. 15, 2018USD ($) |
Senior Secured Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Balance Outstanding | $ 2,161,140,000 | $ 2,125,288,000 | ||
Repurchase Agreements | ||||
Debt Instrument [Line Items] | ||||
Recourse guarantee percentage | 100.00% | 100.00% | ||
Number of repurchase agreements | Agreement | 5 | 5 | ||
Balance Outstanding | $ 1,572,556,000 | $ 1,835,801,000 | ||
Repurchase Agreements | Commercial Mortgage Loans | ||||
Debt Instrument [Line Items] | ||||
Number of repurchase agreements | Agreement | 50 | 48 | ||
Repurchase Agreements | CMBS | ||||
Debt Instrument [Line Items] | ||||
Number of repurchase agreements | Agreement | 2 | 2 | ||
Repurchase Agreements | Mortgage-backed Securities | ||||
Debt Instrument [Line Items] | ||||
Number of repurchase agreements | Agreement | 3 | 3 | ||
Bank of America | Senior Secured Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Credit agreement initiation date | Sep. 29, 2017 | |||
Line of credit facility, maximum borrowing capacity | $ 250,000,000 | |||
Line of credit facility, maximum borrowing capacity subject to condition | $ 500,000,000 | |||
Line of credit facility, increased maximum borrowing capacity | $ 500,000 | |||
Line of credit facility, extended maturity | 2022-09 | |||
Balance Outstanding | $ 387,440,000 | $ 0 | ||
Holdco | Repurchase Agreements | ||||
Debt Instrument [Line Items] | ||||
Recourse guarantee percentage | 25.00% | |||
Holdco | Repurchase Agreements | CMBS | ||||
Debt Instrument [Line Items] | ||||
Recourse guarantee percentage | 100.00% | |||
Holdco | Bank of America | Senior Secured Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Recourse guarantee percentage | 25.00% | |||
Notes Payable | ||||
Debt Instrument [Line Items] | ||||
Number of financing agreements | Agreement | 4 | 7 | ||
Number of loans held for investment | Loan | 4 | 7 | ||
Balance Outstanding | $ 201,144,000 | $ 289,487,000 | ||
Notes Payable | Holdco | ||||
Debt Instrument [Line Items] | ||||
Number of recourse loans | Loan | 1 | |||
Percentage of recourse loans | 25.00% | |||
Notes Payable | Holdco | BMO Harris Bank | ||||
Debt Instrument [Line Items] | ||||
Guaranteed capped rate of outstanding obligations | 25.00% |
Summary of Repurchase Agreement
Summary of Repurchase Agreements Secured by Commercial Mortgage Loans, Long - term Borrowings, and Counterparty Concentration (Details) - Commercial Mortgage Loans - Long-term Borrowings - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Repurchase Agreement Counterparty [Line Items] | ||
Commitment Amount | $ 2,547,219 | $ 2,526,942 |
UPB of Collateral | 2,125,538 | 2,714,464 |
Carrying Value of Collateral | 2,119,979 | 2,705,661 |
Amounts Payable under Repurchase Agreements | 1,535,314 | 1,796,014 |
Net Counterparty Exposure | $ 584,665 | $ 909,647 |
Days to Extended Maturity | 864 days | 960 days |
Goldman Sachs Bank | ||
Repurchase Agreement Counterparty [Line Items] | ||
Commitment Amount | $ 750,000 | $ 750,000 |
UPB of Collateral | 670,708 | 890,736 |
Carrying Value of Collateral | 667,083 | 887,667 |
Amounts Payable under Repurchase Agreements | 479,758 | 568,012 |
Net Counterparty Exposure | $ 187,325 | $ 319,655 |
Percent of Stockholders' Equity | 15.70% | 26.60% |
Days to Extended Maturity | 415 days | 596 days |
Wells Fargo Bank | ||
Repurchase Agreement Counterparty [Line Items] | ||
Commitment Amount | $ 750,000 | $ 750,000 |
UPB of Collateral | 516,954 | 814,886 |
Carrying Value of Collateral | 515,026 | 811,257 |
Amounts Payable under Repurchase Agreements | 385,912 | 518,353 |
Net Counterparty Exposure | $ 129,114 | $ 292,904 |
Percent of Stockholders' Equity | 10.80% | 24.40% |
Days to Extended Maturity | 1060 days | 1241 days |
Morgan Stanley Bank | ||
Repurchase Agreement Counterparty [Line Items] | ||
Commitment Amount | $ 500,000 | $ 500,000 |
UPB of Collateral | 344,638 | 533,707 |
Carrying Value of Collateral | 345,034 | 531,747 |
Amounts Payable under Repurchase Agreements | 230,935 | 380,592 |
Net Counterparty Exposure | $ 114,099 | $ 151,155 |
Percent of Stockholders' Equity | 9.60% | 12.60% |
JP Morgan Chase Bank | ||
Repurchase Agreement Counterparty [Line Items] | ||
Commitment Amount | $ 374,699 | $ 376,942 |
UPB of Collateral | 382,338 | 382,135 |
Carrying Value of Collateral | 381,222 | 382,542 |
Amounts Payable under Repurchase Agreements | 271,962 | 257,484 |
Net Counterparty Exposure | $ 109,260 | $ 125,058 |
Percent of Stockholders' Equity | 9.20% | 10.40% |
Days to Extended Maturity | 782 days | 963 days |
US Bank | ||
Repurchase Agreement Counterparty [Line Items] | ||
Commitment Amount | $ 172,520 | $ 150,000 |
UPB of Collateral | 210,900 | 93,000 |
Carrying Value of Collateral | 211,614 | 92,448 |
Amounts Payable under Repurchase Agreements | 166,747 | 71,573 |
Net Counterparty Exposure | $ 44,867 | $ 20,875 |
Percent of Stockholders' Equity | 3.80% | 1.70% |
Days to Extended Maturity | 1835 days | 1804 days |
Summary of Repurchase Agreeme49
Summary of Repurchase Agreements Secured by Commercial Mortgage Loans, Long - term Borrowings, and Counterparty Concentration (Parenthetical) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | ||
Repurchase Agreement Counterparty [Line Items] | |||
Interest receivable | [1] | $ 18,163 | $ 16,861 |
Accrued Interest Payable | [1] | 5,462 | 5,385 |
Commercial Mortgage Loans | Long-term Borrowings | |||
Repurchase Agreement Counterparty [Line Items] | |||
Interest receivable | 11,800 | 11,600 | |
Premium, discount and origination fees | 17,300 | 20,400 | |
Accrued Interest Payable | 3,900 | 3,400 | |
Unamortized deferred financing fees | $ 5,100 | $ 8,700 | |
[1] | At December 31, 2017, there were no VIE assets or liabilities recorded in the Company’s Total Assets and Total Liabilities. The Company’s consolidated Total Assets and Total Liabilities at June 30, 2018 include VIE assets and liabilities of $945.9 million and $740.1 million, respectively. These assets can be used only to satisfy obligations of the VIE, and creditors of the VIE have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details |
Summary of Repurchase Agreeme50
Summary of Repurchase Agreements Secured by CMBS, Short-term Borrowings, and Counterparty Concentration (Details) - Short-term Debt - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Repurchase Agreement Counterparty [Line Items] | ||
Commitment Amount | $ 2,747,219 | $ 2,726,942 |
UPB of Collateral | 2,172,876 | 2,762,214 |
Carrying Value of Collateral | 2,165,776 | 2,753,549 |
Amounts Payable under Repurchase Agreements | 1,576,643 | 1,839,319 |
Net Counterparty Exposure | $ 589,133 | $ 914,230 |
Days to Extended Maturity | 839 days | 933 days |
CMBS | ||
Repurchase Agreement Counterparty [Line Items] | ||
Commitment Amount | $ 200,000 | $ 200,000 |
UPB of Collateral | 47,338 | 47,750 |
Carrying Value of Collateral | 45,797 | 47,888 |
Amounts Payable under Repurchase Agreements | 41,329 | 43,305 |
Net Counterparty Exposure | $ 4,468 | $ 4,583 |
Days to Extended Maturity | 69 days | 64 days |
Goldman Sachs | CMBS | ||
Repurchase Agreement Counterparty [Line Items] | ||
Commitment Amount | $ 100,000 | $ 100,000 |
UPB of Collateral | 38,920 | 39,332 |
Carrying Value of Collateral | 37,250 | 39,213 |
Amounts Payable under Repurchase Agreements | 33,619 | 35,426 |
Net Counterparty Exposure | $ 3,631 | $ 3,787 |
Percent of Stockholders' Equity | 0.30% | 0.30% |
Days to Extended Maturity | 66 days | 61 days |
Royal Bank of Canada | CMBS | ||
Repurchase Agreement Counterparty [Line Items] | ||
Commitment Amount | $ 100,000 | $ 100,000 |
UPB of Collateral | 8,418 | 8,418 |
Carrying Value of Collateral | 8,547 | 8,675 |
Amounts Payable under Repurchase Agreements | 7,710 | 7,879 |
Net Counterparty Exposure | $ 837 | $ 796 |
Percent of Stockholders' Equity | 0.10% | 0.10% |
Days to Extended Maturity | 82 days | 79 days |
Summary of Repurchase Agreeme51
Summary of Repurchase Agreements Secured by CMBS, Short-term Borrowings, and Counterparty Concentration (Parenthetical) (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2018 | Dec. 31, 2017 | ||
Repurchase Agreement Counterparty [Line Items] | |||
Accrued Interest Receivable | [1] | $ 18,163 | $ 16,861 |
Accrued Interest Payable | [1] | 5,462 | 5,385 |
Short-term Debt | |||
Repurchase Agreement Counterparty [Line Items] | |||
Accrued Interest Receivable | 100 | 100 | |
Premium, discount and origination fees | 1,700 | ||
Accrued Interest Payable | $ 200 | $ 100 | |
[1] | At December 31, 2017, there were no VIE assets or liabilities recorded in the Company’s Total Assets and Total Liabilities. The Company’s consolidated Total Assets and Total Liabilities at June 30, 2018 include VIE assets and liabilities of $945.9 million and $740.1 million, respectively. These assets can be used only to satisfy obligations of the VIE, and creditors of the VIE have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details |
Senior Secured Credit Facility
Senior Secured Credit Facility (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Index Rate | one-month LIBOR | |
Senior Secured Credit Facility | ||
Debt Instrument [Line Items] | ||
Commitment Amount | $ 3,490,020 | $ 3,376,158 |
Maximum Current Availability | 1,328,880 | 1,250,870 |
Balance Outstanding | $ 2,161,140 | $ 2,125,288 |
Bank of America | Senior Secured Credit Facility | ||
Debt Instrument [Line Items] | ||
Maturity Date | Sep. 29, 2020 | Sep. 29, 2020 |
Index Rate | 1 Month Libor | 1 Month Libor |
Weighted Average Spread | 1.90% | |
Interest Rate | 3.90% | |
Commitment Amount | $ 500,000 | $ 250,000 |
Maximum Current Availability | 112,560 | 250,000 |
Balance Outstanding | $ 387,440 | $ 0 |
Bank of America | Debt Instrument, Interest Rate at 3.9% | Senior Secured Credit Facility | ||
Debt Instrument [Line Items] | ||
Maturity Date | Sep. 29, 2020 | |
Index Rate | 1 Month Libor | |
Weighted Average Spread | 1.90% | |
Interest Rate | 3.90% | |
Commitment Amount | $ 500,000 | |
Maximum Current Availability | 112,560 | |
Balance Outstanding | $ 387,440 |
Schedule of Maturities - Schedu
Schedule of Maturities - Schedule of Future Principal Payments (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Collateralized Loan Obligation | |
Debt Instrument [Line Items] | |
2,018 | $ 36,117 |
2,019 | 435,869 |
2,020 | 214,153 |
2,021 | 54,765 |
Total | 740,904 |
Senior Secured Credit Facility | |
Debt Instrument [Line Items] | |
2,020 | 387,440 |
Total | 387,440 |
Repurchase Agreements | |
Debt Instrument [Line Items] | |
2,018 | 815,582 |
2,019 | 662,654 |
2,020 | 61,120 |
2,021 | 33,200 |
Total | 1,572,556 |
Notes Payable | |
Debt Instrument [Line Items] | |
2,018 | 94,171 |
2,019 | 74,473 |
2,020 | 32,500 |
Total | $ 201,144 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | ||
Money market funds | $ 33,900,000 | |
Threshold period of delinquency | 90 days | |
Market spread | one-month LIBOR | |
Transfers of financial assets or liabilities with in fair value hierarchy | $ 0 | |
Estimated fair value of loans held for investment | $ 3,800,000,000 | $ 3,200,000,000 |
Weighted average gross spread percentage | 4.30% | 4.80% |
Weighted average maturity period | 3 years 9 months 18 days | 3 years 7 months 6 days |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Assets and Liabilities Not Carried at Fair Value On Recurring Basis (Details) - Fair Value Measurements Nonrecurring - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Carrying Value | Loans Held for Investment | ||
Financial Assets | ||
Financial Assets, Nonrecurring | $ 3,805,551 | $ 3,175,672 |
Carrying Value | Collateralized Loan Obligation | ||
Financial Liabilities | ||
CLO (TRTX 2018-FL1) | 734,030 | |
Carrying Value | Secured Financing Arrangements | ||
Financial Liabilities | ||
CLO (TRTX 2018-FL1) | 2,152,641 | 2,114,990 |
Estimate of Fair Value Measurement | Level III | Loans Held for Investment | ||
Financial Assets | ||
Financial Assets, Nonrecurring | 3,831,838 | 3,202,150 |
Estimate of Fair Value Measurement | Level III | Collateralized Loan Obligation | ||
Financial Liabilities | ||
CLO (TRTX 2018-FL1) | 734,030 | |
Estimate of Fair Value Measurement | Level III | Secured Financing Arrangements | ||
Financial Liabilities | ||
CLO (TRTX 2018-FL1) | $ 2,152,641 | $ 2,114,990 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Income Tax [Line Items] | |||||
Reserve for uncertain income tax positions | $ 0 | $ 0 | $ 0 | ||
Interest for underpayment of income taxes | 0 | $ 0 | |||
Penalties for underpayment of income taxes | $ 0 | $ 0 | |||
Effective income tax rate | 0.40% | 0.29% | |||
Deferred tax asset | 0 | $ 0 | 0 | ||
Deferred tax liabilities | $ 0 | $ 0 | $ 0 | ||
TRS | |||||
Income Tax [Line Items] | |||||
Equity interest percentage by parent | 100.00% | 100.00% | 100.00% | ||
Current portion of income tax expense | $ 0 | $ 0 | $ 200,000 | $ 100,000 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) | Jul. 25, 2017 | Dec. 15, 2014 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | ||||||||
Management fees, incentive management fees, and collateral management fees payable | [1] | $ 6,187,000 | $ 6,187,000 | $ 5,227,000 | ||||
Termination fee, description | A termination fee will be payable to the Manager upon termination of the Management Agreement by the Company absent a cause event. The termination fee would also be payable to the Manager upon termination of the Management Agreement by the Manager if the Company materially breaches the Management Agreement. The termination fee is equal to three times the sum of (x) the average annual base management fee and (y) the average annual incentive compensation earned by the Manager, in each case during the 24-month period immediately preceding the most recently completed calendar quarter prior to the date of termination or, if such termination occurs prior to July 25, 2019, and such termination fee is payable, the base management fees and the incentive compensation will be annualized for the period from July 25, 2017 to July 25, 2019 based on such fees actually received by the Manager during such period | |||||||
Post-IPO Management Agreement | ||||||||
Related Party Transaction [Line Items] | ||||||||
Description of management and incentive management fee calculation | For the three and six months ended June 30, 2018, the management fee and incentive management fee were calculated under the Management Agreement. | |||||||
Incentive management fee, description | The Manager is entitled to incentive compensation which is calculated and payable in cash with respect to each calendar quarter following the completion of the Company’s initial public offering (or part thereof that the Management Agreement is in effect) in arrears in an amount, not less than zero, equal to the difference between: (1) the product of (a) 20% and (b) the difference between (i) the Company’s Core Earnings for the most recent 12-month period (or such lesser number of completed calendar quarters, if applicable), including the calendar quarter (or part thereof) for which the calculation of incentive compensation is being made (the “applicable period”), and (ii) the product of (A) the Company’s Equity in the most recent 12-month period (or such lesser number of completed calendar quarters, if applicable), including the applicable period, and (B) 7% per annum; and (2) the sum of any incentive compensation paid to the Manager with respect to the first three calendar quarters of the most recent 12-month period (or such lesser number of completed calendar quarters preceding the applicable period, if applicable). No incentive compensation is payable to the Manager with respect to any calendar quarter unless Core Earnings for the 12 most recently completed calendar quarters (or such lesser number of completed calendar quarters following the completion of the Company’s initial public offering) is greater than zero. For purposes of calculating the Manager’s incentive compensation, the Management Agreement, as amended, specifies that equity securities of the Company or any of the Company’s subsidiaries that are entitled to a specified periodic distribution or have other debt characteristics will not constitute equity securities and will not be included in “Equity” for the purpose of calculating incentive compensation. Instead, the aggregate distribution amount that accrues to such equity securities during the calendar quarter of such calculation will be subtracted from Core Earnings, before incentive compensation for purposes of calculating incentive compensation, unless such distribution is otherwise excluded from Core Earnings | |||||||
Incentive management fee percentage of Core Earnings less seven percent of stockholders equity | 20.00% | |||||||
Percentage multiplied by stockholders equity included in incentive management fee | 7.00% | |||||||
Percentage of annual base management fee | 1.50% | |||||||
Percentage of quarterly base management fee | 0.375% | |||||||
Amount incurred and reimbursable | 300,000 | $ 0 | $ 600,000 | $ 0 | ||||
Reimbursable expenses remained outstanding | 300,000 | $ 300,000 | ||||||
Post-IPO Management Agreement | Minimum | ||||||||
Related Party Transaction [Line Items] | ||||||||
Management fee payable per annum | $ 250,000 | |||||||
Management fee payable per quarter | $ 62,500 | |||||||
Pre-IPO Management Agreement | ||||||||
Related Party Transaction [Line Items] | ||||||||
Description of management and incentive management fee calculation | For the three and six months ended June 30, 2017, the management fee and incentive management fee were calculated under the pre-IPO Management Agreement. | |||||||
Incentive management fee, description | Manager was entitled to an incentive management fee each calendar quarter in arrears in an amount, not less than zero, equal to (I) the product of (i) 16% and (ii) the positive sum, if any, remaining after (A) Core Earnings of the Company for the previous 12 month period were reduced by (B) the product of (1) the average of the Company’s stockholders’ equity as of the end of each calendar quarter during such previous 12 month period, and (2) 7% per annum, minus (II) the sum of any incentive management fee paid to the Manager with respect to the first three calendar quarters of such previous 12 month period; provided, however, that no incentive management fee was payable with respect to any calendar quarter unless Core Earnings for the 12 most recently completed calendar quarters in the aggregate was greater than zero. | |||||||
Incentive management fee percentage of Core Earnings less seven percent of stockholders equity | 16.00% | |||||||
Percentage multiplied by stockholders equity included in incentive management fee | 7.00% | |||||||
Percentage of annual base management fee | 1.25% | |||||||
Pre-IPO Management Agreement | 2014 Collateralized Loan Obligation | ||||||||
Related Party Transaction [Line Items] | ||||||||
Percentage of collateral management fee | 0.075% | |||||||
Aggregate par amount of loans | $ 184,800,000 | $ 184,800,000 | ||||||
Pre-IPO and Post-IPO Management Agreement | ||||||||
Related Party Transaction [Line Items] | ||||||||
Management fees, incentive management fees, and collateral management fees payable | $ 5,900 | $ 5,900 | $ 5,200 | |||||
[1] | At December 31, 2017, there were no VIE assets or liabilities recorded in the Company’s Total Assets and Total Liabilities. The Company’s consolidated Total Assets and Total Liabilities at June 30, 2018 include VIE assets and liabilities of $945.9 million and $740.1 million, respectively. These assets can be used only to satisfy obligations of the VIE, and creditors of the VIE have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details |
Related Party Transactions - Su
Related Party Transactions - Summary of Management Agreement Fees Incurred and Paid Related to Pre-IPO and Post-IPO Management Agreements and Collateral Management Agreement (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Post-IPO Management Agreement | ||||
Related Party Transaction [Line Items] | ||||
Management Agreement and Collateral Management fees incurred | $ 5,909 | $ 11,539 | ||
Management Agreement and Collateral Management fees paid | $ 5,630 | $ 10,862 | ||
Pre-IPO Management Agreement | ||||
Related Party Transaction [Line Items] | ||||
Management Agreement and Collateral Management fees incurred | $ 4,644 | $ 8,944 | ||
Management Agreement and Collateral Management fees paid | $ 4,291 | $ 7,356 |
Earnings per Share - Additional
Earnings per Share - Additional Information (Details) - USD ($) | Jul. 03, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 |
Earnings Per Share [Abstract] | |||||
Dividends declared | $ 0 | $ 0 | $ 100,000 | $ 0 | |
Undistributed net income attributable to common stockholders | $ 0 | $ 0 | $ 100,000 | $ 0 | |
Dividend payable declared date | Jul. 3, 2017 | Jul. 25, 2017 | |||
Dividend payable date | Jul. 25, 2017 | Jul. 3, 2017 |
Earnings per Share - Schedule o
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, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Net Income Attributable to Common Stockholders | $ 26,438 | $ 25,320 | $ 51,549 | $ 48,795 |
Weighted Average Common Shares Outstanding, Basic and Diluted | 60,175,373 | 48,664,664 | 60,283,992 | 48,555,950 |
Per Common Share Amount, Basic and Diluted | $ 0.44 | $ 0.52 | $ 0.86 | $ 1 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) | Jun. 15, 2018 | Feb. 28, 2018 | Jul. 25, 2017 | Jul. 03, 2017 | Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | [1] | Aug. 21, 2017 | |||
Class Of Stock [Line Items] | ||||||||||||||||
Dividend payable declared date | Jul. 3, 2017 | Jul. 25, 2017 | ||||||||||||||
Dividend payable date | Jul. 25, 2017 | Jul. 3, 2017 | ||||||||||||||
Redemption of Preferred Stock | $ (125,000) | |||||||||||||||
Unpaid dividends | $ 25,900,000 | $ 25,911,000 | [1] | $ 25,911,000 | [1] | $ 20,520,000 | 25,911,000 | [1] | $ 20,520,000 | $ 23,068,000 | ||||||
Dividends | $ 20,500,000 | 51,200,000 | 41,800,000 | |||||||||||||
Other comprehensive (loss) income | $ (1,424,000) | $ 56,000 | $ (1,638,000) | 1,288,000 | ||||||||||||
Goldman Sachs & Co. LLC | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Number of common shares issued | 35,000,000 | |||||||||||||||
Description on purchase plan agreement | pursuant to which Goldman Sachs & Co. LLC, as our agent, will buy in the open market up to $35.0 million in shares of our common stock in the aggregate during the period beginning on or about August 21, 2017 and ending 12 months thereafter or, if sooner, the date on which all the capital committed to the 10b5-1 Purchase Plan has been exhausted. | |||||||||||||||
Stock repurchased during period, shares | 1.2 | 0 | 400,000 | |||||||||||||
Average price of repurchased shares | $ 19.28 | $ 18.83 | ||||||||||||||
Stock repurchased during period, value | $ 22,500 | $ 8,400 | ||||||||||||||
Stock repurchase program, remaining repurchase amount | $ 12,500 | $ 12,500 | $ 12,500 | |||||||||||||
Class A Common Stock | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Number of common shares issued | 230,815 | |||||||||||||||
Dividend declared per share | $ 0.43 | $ 0.41 | $ 0.41 | $ 0.41 | ||||||||||||
Dividends | $ 51,200,000 | $ 41,800,000 | ||||||||||||||
Series A Preferred Stock | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Dividend rate | 12.50% | |||||||||||||||
Preferred stock, liquidation preference per annum | $ 1,000 | $ 1,000 | $ 1,000 | |||||||||||||
Redemption of Preferred Stock | $ 100,000 | |||||||||||||||
Common Stock And Class A Common Stock | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Dividend payable declared date | Jun. 30, 2017 | |||||||||||||||
Dividend payable date | Jul. 25, 2018 | Jul. 25, 2017 | ||||||||||||||
Dividend record date | Jun. 25, 2018 | |||||||||||||||
Common Stock | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Number of common shares issued | 9,224,268 | 19,352 | 992,166 | |||||||||||||
Dividend declared per share | $ 0.43 | $ 0.41 | $ 0.41 | $ 0.41 | ||||||||||||
[1] | At December 31, 2017, there were no VIE assets or liabilities recorded in the Company’s Total Assets and Total Liabilities. The Company’s consolidated Total Assets and Total Liabilities at June 30, 2018 include VIE assets and liabilities of $945.9 million and $740.1 million, respectively. These assets can be used only to satisfy obligations of the VIE, and creditors of the VIE have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details |
Share-based Incentive Plan - Ad
Share-based Incentive Plan - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2018 | Jun. 29, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock Compensation Expense | $ 374 | ||
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 | |
Percentage of issued and outstanding ordinary shares authorized for issuance under plan | 7.50% | ||
Number of shares awarded for grant | 0 | ||
Share vesting installment period | 3 years | ||
Total unrecognized compensation cost relating to unvested share-based compensation arrangements | $ 1,300 | $ 1,300 | |
Closing price of common stock | $ 20.32 | ||
Unrecognized compensation cost, recognition period | 1 year 10 months 24 days | ||
Stock Compensation Expense | $ 200 | $ 400 | |
2017 Equity Incentive Plan | Common Stock | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares of common stock outstanding | 64,498 | 64,498 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Commitments And Contingencies Disclosure [Abstract] | ||
Unfunded commitments related to loans held for investment | $ 482.8 | $ 529 |
Concentration of Credit Risk -
Concentration of Credit Risk - Summary of Loan Portfolio by Property Type (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 4,308,648 | $ 3,727,156 |
Unfunded Commitment | $ 482,845 | $ 529,040 |
% of Loan Commitment | 100.00% | 100.00% |
Loan UPB | $ 3,825,804 | $ 3,198,116 |
% of Loan UPB | 100.00% | 100.00% |
Condominium | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 391,206 | $ 679,779 |
Unfunded Commitment | $ 51,858 | $ 166,358 |
% of Loan Commitment | 9.10% | 18.20% |
Loan UPB | $ 339,348 | $ 513,421 |
% of Loan UPB | 8.90% | 16.10% |
Multifamily | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 883,355 | $ 813,775 |
Unfunded Commitment | $ 69,707 | $ 75,509 |
% of Loan Commitment | 20.50% | 21.80% |
Loan UPB | $ 813,648 | $ 738,266 |
% of Loan UPB | 21.30% | 23.10% |
Office | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 1,554,004 | $ 836,826 |
Unfunded Commitment | $ 242,617 | $ 160,450 |
% of Loan Commitment | 36.20% | 22.50% |
Loan UPB | $ 1,311,388 | $ 676,376 |
% of Loan UPB | 34.20% | 21.10% |
Hotel | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 677,069 | $ 693,569 |
Unfunded Commitment | $ 17,933 | $ 27,980 |
% of Loan Commitment | 15.70% | 18.60% |
Loan UPB | $ 659,136 | $ 665,589 |
% of Loan UPB | 17.20% | 20.80% |
Mixed Use | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 543,500 | $ 431,500 |
Unfunded Commitment | $ 55,607 | $ 57,243 |
% of Loan Commitment | 12.60% | 11.60% |
Loan UPB | $ 487,893 | $ 374,257 |
% of Loan UPB | 12.80% | 11.70% |
Retail | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 182,918 | $ 195,012 |
Unfunded Commitment | $ 45,123 | $ 41,500 |
% of Loan Commitment | 4.20% | 5.20% |
Loan UPB | $ 137,795 | $ 153,512 |
% of Loan UPB | 3.60% | 4.80% |
Industrial | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 66,500 | $ 66,500 |
% of Loan Commitment | 1.50% | 1.80% |
Loan UPB | $ 66,500 | $ 66,500 |
% of Loan UPB | 1.70% | 2.10% |
Other | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 10,096 | $ 10,195 |
% of Loan Commitment | 0.20% | 0.30% |
Loan UPB | $ 10,096 | $ 10,195 |
% of Loan UPB | 0.30% | 0.30% |
Concentration of Credit Risk 65
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, 2018 | Dec. 31, 2017 |
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 4,308,648 | $ 3,727,156 |
Unfunded Commitment | $ 482,845 | $ 529,040 |
% Loan Commitment | 100.00% | 100.00% |
Loan UPB | $ 3,825,804 | $ 3,198,116 |
% Loan UPB | 100.00% | 100.00% |
East | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 2,076,177 | $ 1,600,619 |
Unfunded Commitment | $ 177,737 | $ 167,447 |
% Loan Commitment | 48.30% | 42.90% |
Loan UPB | $ 1,898,441 | $ 1,433,172 |
% Loan UPB | 49.70% | 44.80% |
South | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 1,099,298 | $ 1,147,510 |
Unfunded Commitment | $ 202,386 | $ 278,890 |
% Loan Commitment | 25.50% | 30.80% |
Loan UPB | $ 896,912 | $ 868,620 |
% Loan UPB | 23.40% | 27.20% |
West | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 794,154 | $ 674,123 |
Unfunded Commitment | $ 93,324 | $ 67,746 |
% Loan Commitment | 18.40% | 18.10% |
Loan UPB | $ 700,830 | $ 606,377 |
% Loan UPB | 18.30% | 19.00% |
Midwest | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 290,019 | $ 255,904 |
Unfunded Commitment | $ 9,398 | $ 14,957 |
% Loan Commitment | 6.70% | 6.90% |
Loan UPB | $ 280,621 | $ 240,947 |
% Loan UPB | 7.30% | 7.50% |
Various | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 49,000 | $ 49,000 |
% Loan Commitment | 1.10% | 1.30% |
Loan UPB | $ 49,000 | $ 49,000 |
% Loan UPB | 1.30% | 1.50% |
Concentration of Credit Risk 66
Concentration of Credit Risk - Summary of Loan Portfolio by Loan Category Type (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 4,308,648 | $ 3,727,156 |
Unfunded Commitment | $ 482,845 | $ 529,040 |
% Loan Commitment | 100.00% | 100.00% |
Loan UPB | $ 3,825,804 | $ 3,198,116 |
% Loan UPB | 100.00% | 100.00% |
Bridge | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 2,510,532 | $ 1,927,488 |
Unfunded Commitment | $ 204,473 | $ 176,316 |
% Loan Commitment | 58.30% | 51.70% |
Loan UPB | $ 2,306,060 | $ 1,751,172 |
% Loan UPB | 60.20% | 54.70% |
Moderate Transitional | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 732,197 | $ 723,075 |
Unfunded Commitment | $ 140,233 | $ 132,483 |
% Loan Commitment | 17.00% | 19.40% |
Loan UPB | $ 591,964 | $ 590,592 |
% Loan UPB | 15.50% | 18.50% |
Construction | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 305,885 | $ 609,468 |
Unfunded Commitment | $ 51,151 | $ 166,358 |
% Loan Commitment | 7.10% | 16.40% |
Loan UPB | $ 254,734 | $ 443,110 |
% Loan UPB | 6.70% | 13.90% |
Light Transitional | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 760,034 | $ 467,125 |
Unfunded Commitment | $ 86,988 | $ 53,883 |
% Loan Commitment | 17.60% | 12.50% |
Loan UPB | $ 673,046 | $ 413,242 |
% Loan UPB | 17.60% | 12.90% |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) | Aug. 06, 2018USD ($) | Jul. 25, 2018USD ($)Investment$ / shares | Jul. 25, 2018USD ($)$ / shares | Jul. 16, 2018USD ($) | Jul. 12, 2018USD ($) | Jul. 03, 2017 | Aug. 06, 2018USD ($)Loanshares | Jun. 30, 2018USD ($)$ / sharesshares | Jun. 30, 2018USD ($)$ / sharesshares | Jun. 30, 2018USD ($)$ / sharesshares | Jun. 30, 2017USD ($) | Jun. 15, 2018USD ($)$ / shares | Dec. 31, 2017USD ($) | [1] | |||
Subsequent Event [Line Items] | |||||||||||||||||
Index Rate | one-month LIBOR | ||||||||||||||||
Sale of participation interest in non-core, fixed rate performing loan, cash consideration | $ 52,443,000 | ||||||||||||||||
Dividend payable date | Jul. 25, 2017 | Jul. 3, 2017 | |||||||||||||||
Dividends Payable | $ 25,911,000 | [1] | $ 25,911,000 | [1] | $ 25,911,000 | [1] | $ 20,520,000 | $ 25,900,000 | $ 23,068,000 | ||||||||
Goldman Sachs & Co. LLC | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Common stock, shares repurchased | shares | 1.2 | 0 | 400,000 | ||||||||||||||
Purchase plan, expiration description | The repurchase period under the 10b5-1 Purchase Plan is set to expire on August 21, 2018 or, if sooner, the date on which all the capital committed to the 10b5-1 Purchase Plan has been exhausted. | ||||||||||||||||
Remaining capital committed to repurchases of outstanding shares of common stock | $ 12,500 | $ 12,500 | $ 12,500 | ||||||||||||||
Common Stock | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Dividend amount per share | $ / shares | $ 0.41 | $ 0.41 | $ 0.41 | $ 0.43 | |||||||||||||
Subsequent Events | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Number of first mortgage loans closed | Loan | 6 | ||||||||||||||||
Principal amount of notes issued | $ 569,100,000 | $ 569,100,000 | |||||||||||||||
Subsequent Events | Goldman Sachs & Co. LLC | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Common stock, shares repurchased | shares | 0 | ||||||||||||||||
Remaining capital committed to repurchases of outstanding shares of common stock | 12,500,000 | $ 12,500,000 | |||||||||||||||
Subsequent Events | Common Stock | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Dividend payable date | Jul. 25, 2018 | ||||||||||||||||
Dividend record date | Jun. 25, 2018 | ||||||||||||||||
Dividend amount per share | $ / shares | $ 0.43 | $ 0.43 | |||||||||||||||
Dividends Payable | $ 25,900,000 | $ 25,900,000 | |||||||||||||||
Subsequent Events | Commercial Mortgage-Backed Securities | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Number of short-term investments sold | Investment | 17 | ||||||||||||||||
Total cash consideration including sale costs and fees | $ 133,300,000 | ||||||||||||||||
Loss on sale of investments | $ 100,000 | ||||||||||||||||
Subsequent Events | Non-core | Fixed Rate Loan Investment | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Sale of participation interest in non-core, fixed rate performing loan, cash consideration | $ 2,700,000 | ||||||||||||||||
Loss on sale of investments | $ 400,000 | ||||||||||||||||
Subsequent Events | Citi Senior Revolving Credit Facility | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 160,000,000 | ||||||||||||||||
Line of credit facility, initial maturity date | Jul. 12, 2020 | ||||||||||||||||
Percentage of individual pledged assets | 70.00% | ||||||||||||||||
Individual pledged assets term | 90 days | ||||||||||||||||
Borrowings outstanding under Credit Agreement | $ 0 | ||||||||||||||||
Subsequent Events | LIBOR | Citi Senior Revolving Credit Facility | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Index Rate | one-month LIBOR | ||||||||||||||||
Line of credit, spread on variable rate | 2.25% | ||||||||||||||||
[1] | At December 31, 2017, there were no VIE assets or liabilities recorded in the Company’s Total Assets and Total Liabilities. The Company’s consolidated Total Assets and Total Liabilities at June 30, 2018 include VIE assets and liabilities of $945.9 million and $740.1 million, respectively. These assets can be used only to satisfy obligations of the VIE, and creditors of the VIE have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details |