Document And Entity Information
Document And Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 13, 2020 | Jun. 28, 2019 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Document Transition Report | false | ||
Document Annual Report | true | ||
Trading Symbol | TRTX | ||
Entity Incorporation State Country Code | MD | ||
Entity Registrant Name | TPG RE Finance Trust, Inc. | ||
Entity Central Index Key | 0001630472 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity File Number | 001-38156 | ||
Entity Tax Identification Number | 36-4796967 | ||
Entity Address, Address Line One | 888 Seventh Avenue | ||
Entity Address, Address Line Two | 35th Floor | ||
Entity Address City Or Town | New York | ||
Entity Address State Or Province | NY | ||
Entity Address Postal Zip Code | 10106 | ||
City Area Code | 212 | ||
Local Phone Number | 601-4700 | ||
Entity Public Float | $ 1.1 | ||
Title of 12(b) Security | Common Stock, par value $0.001 per share | ||
Security Exchange Name | NYSE | ||
Documents Incorporated by Reference | Part III of this annual report on Form 10-K incorporates information by reference from the Registrant’s definitive proxy statement with respect to its 2020 annual meeting of stockholders to be filed with the Securities and Exchange Commission within 120 days after the end of the Registrant’s fiscal year. | ||
Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 76,414,996 | ||
Class A Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
ASSETS | |||
Cash and Cash Equivalents | [1] | $ 79,182 | $ 39,720 |
Restricted Cash | [1] | 484 | 1,000 |
Accounts Receivable | [1] | 2,344 | 38 |
Accounts Receivable from Servicer/Trustee | [1] | 13,741 | 96,464 |
Accrued Interest Receivable | [1] | 28,107 | 20,731 |
Loans Held for Investment, net (includes $2,585,030 and $2,219,574 pledged as collateral under secured revolving repurchase and secured credit agreements) | 4,980,389 | 4,293,787 | |
Investment in Available-for-Sale CRE Debt Securities (includes $786,408 and $36,307 pledged as collateral under secured revolving repurchase agreements) | 787,552 | 74,381 | |
Other Assets, Net | [1] | 1,071 | 669 |
Total Assets | [1] | 5,892,870 | 4,526,790 |
Liabilities | |||
Accrued Interest Payable | [1] | 6,665 | 6,146 |
Accrued Expenses | [1] | 8,176 | 8,151 |
Secured Revolving Repurchase, Senior Secured, and Secured Credit Agreements (net of deferred financing costs of $11,632 and $10,448) | 2,448,422 | 1,494,078 | |
Collateralized Loan Obligations (net of deferred financing costs of $13,632 and $12,477) | [1] | 1,806,428 | 1,509,930 |
Asset-Specific Financings (net of deferred financing costs of $294 and $129) | [1] | 76,706 | 32,371 |
Term Loan Facility (net of deferred financing costs of $0 and $758) | [1] | 113,504 | |
Payable to Affiliates | [1] | 9,520 | 5,996 |
Deferred Revenue | [1] | 164 | 463 |
Dividends Payable | [1] | 32,835 | 28,981 |
Total Liabilities | [1] | 4,388,916 | 3,199,620 |
Commitments and Contingencies—See Note 14 | [1] | ||
Stockholders’ Equity: | |||
Preferred Stock ($0.001 par value; 100,000,000 shares authorized; 125 and 0 shares issued and outstanding, respectively) | [1] | ||
Additional Paid-in-Capital | [1] | 1,530,935 | 1,355,002 |
Accumulated Deficit | [1] | (28,108) | (25,915) |
Accumulated Other Comprehensive Income (Loss) | 1,051 | (1,985) | |
Total Stockholders' Equity | [1] | 1,503,954 | 1,327,170 |
Total Liabilities and Stockholders' Equity | [1] | 5,892,870 | 4,526,790 |
Common Stock, Undefined Class | |||
Stockholders’ Equity: | |||
Common Stock Value | [1] | 75 | 67 |
Class A Common Stock | |||
Stockholders’ Equity: | |||
Common Stock Value | [1] | 1 | 1 |
Total Stockholders' Equity | $ 1 | $ 1 | |
[1] | The Company’s consolidated Total Assets and Total Liabilities at December 31, 2019 include the assets and liabilities of variable interest entities (“VIEs”) of $2.2 billion and $1.8 billion, respectively. The Company’s Total Assets and Total Liabilities at December 31, 2018 include assets and liabilities of VIEs of $1.9 billion and $1.5 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to those assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Preferred stock, par value | $ 0.001 | $ 0.001 | |
Preferred stock, authorized shares | 100,000,000 | 100,000,000 | |
Preferred stock, shares issued | 125 | 0 | |
Preferred stock, shares outstanding | 125 | 0 | |
Common stock, par value | $ 0.001 | $ 0.001 | |
Common stock, authorized shares | 300,000,000 | 300,000,000 | |
Common stock, shares issued | 74,886,113 | 66,020,387 | |
Common stock, shares outstanding | 74,886,113 | 66,020,387 | |
Total assets | [1] | $ 5,892,870 | $ 4,526,790 |
Total liabilities | [1] | 4,388,916 | 3,199,620 |
Variable Interest Entity, Primary Beneficiary | |||
Total assets | 2,249,751 | 1,926,612 | |
Total liabilities | $ 1,828,992 | $ 1,518,095 | |
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 | 1,136,665 | 1,143,313 | |
Common stock, shares outstanding | 1,136,665 | 1,143,313 | |
Repurchase Agreements | |||
Loans pledged as collateral | $ 2,585,030 | $ 2,219,574 | |
Available-for-sale CRE debt securities pledged as collateral | 786,408 | 36,307 | |
Deferred financing costs | 11,632 | 10,448 | |
Term Loan Facility | |||
Deferred financing costs | 294 | 129 | |
Asset-specific Financing | |||
Deferred financing costs | 0 | 758 | |
Collateralized Loan Obligation | |||
Loans pledged as collateral | 2,229,034 | 1,824,281 | |
Deferred financing costs | $ 13,632 | $ 12,477 | |
[1] | The Company’s consolidated Total Assets and Total Liabilities at December 31, 2019 include the assets and liabilities of variable interest entities (“VIEs”) of $2.2 billion and $1.8 billion, respectively. The Company’s Total Assets and Total Liabilities at December 31, 2018 include assets and liabilities of VIEs of $1.9 billion and $1.5 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to those assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
INTEREST INCOME | ||||
Interest Income | $ 339,814 | $ 265,594 | $ 198,903 | |
Interest Expense | (174,841) | (126,025) | (78,268) | |
Net Interest Income | 164,973 | 139,569 | 120,635 | |
OTHER REVENUE | ||||
Other Income, net | 1,754 | 1,307 | 1,697 | |
Total Other Revenue | 1,754 | 1,307 | 1,697 | |
OTHER EXPENSES | ||||
Professional Fees | 3,719 | 3,162 | 3,132 | |
General and Administrative | 5,562 | 4,039 | 2,975 | |
Servicing and Asset Management Fees | 1,837 | 2,646 | 3,068 | |
Management Fee | 21,571 | 19,364 | 14,096 | |
Collateral Management Fee | 225 | |||
Incentive Management Fee | 7,146 | 4,384 | 4,338 | |
Total Other Expenses | 39,835 | 33,595 | 27,834 | |
Income Before Income Taxes | 126,892 | 107,281 | 94,498 | |
Tax (Expense), net | (579) | (340) | (146) | |
Net Income | 126,313 | 106,941 | 94,352 | |
Preferred Stock Dividends | (15) | (3) | (16) | |
Net Income Attributable to TPG RE Finance Trust, Inc. | $ 126,298 | $ 106,938 | $ 94,336 | |
Basic Earnings per Common Share | [1] | $ 1.73 | $ 1.70 | $ 1.74 |
Diluted Earnings per Common Share | [1] | $ 1.73 | $ 1.70 | $ 1.74 |
Weighted Average Number of Common Shares Outstanding | ||||
Basic: | [1] | 72,743,171 | 63,034,806 | 54,194,596 |
Diluted: | [1] | 72,743,171 | 63,034,806 | 54,194,596 |
OTHER COMPREHENSIVE INCOME | ||||
Net Income | $ 126,313 | $ 106,941 | $ 94,352 | |
Unrealized Gain (Loss) on CRE Debt Securities | 3,036 | (1,951) | (1,284) | |
Comprehensive Net Income | $ 129,349 | $ 104,990 | $ 93,068 | |
[1] | Share and per share data reflect the impact of the common stock and Class A common stock dividend 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 - 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 | 257,634 | $ 12 | 257,622 | |||||
Issuance of Common Stock, Shares | 12,642,166 | |||||||
Common Stock and Class A Common Stock Dividend | $ 9 | (9) | ||||||
Common Stock and Class A Common Stock Dividend, Shares | 230,815 | 9,224,268 | ||||||
Conversions of Class A Common Stock to Common Stock | (34,408) | 34,408 | ||||||
Repurchases and Retired of Common Stock | (14,090) | (14) | (14,076) | |||||
Repurchases and Retired of Common Stock, Shares | (720,783) | |||||||
Initial Public Offering Transaction Costs and Equity Issuance and Shelf Registration Statement Transaction Costs | (21,352) | (21,352) | ||||||
Amortization of Share Based Compensation | 33 | 33 | ||||||
Net Income | 94,352 | 94,352 | ||||||
Other Comprehensive Income (Loss) | (1,284) | (1,284) | ||||||
Dividends on Preferred Stock | (16) | (16) | ||||||
Dividends on Common Stock (Dividends Declared per Share) | (83,187) | (83,187) | ||||||
Dividends on Class A Common Stock (Dividends Declared per Share) | (1,813) | (1,813) | ||||||
Balance at Dec. 31, 2017 | 1,201,331 | $ 1 | $ 60 | 1,216,112 | (14,808) | (34) | ||
Balance, Shares at Dec. 31, 2017 | 1,178,618 | 125 | 59,440,112 | |||||
Issuance of Common Stock | 139,440 | $ 7 | 139,433 | |||||
Issuance of Common Stock, Shares | 7,019,352 | |||||||
Conversions of Class A Common Stock to Common Stock | (35,305) | 35,305 | ||||||
Repurchases and Retired of Common Stock | (8,937) | (9) | (8,928) | |||||
Repurchases and Retired of Common Stock, Shares | (474,382) | |||||||
Redemption of Series A Preferred Stock | (125) | (125) | ||||||
Redemption of Series A Preferred Stock, Shares | (125) | |||||||
Initial Public Offering Transaction Costs and Equity Issuance and Shelf Registration Statement Transaction Costs | (1,074) | (1,074) | ||||||
Amortization of Share Based Compensation | 665 | 665 | ||||||
Net Income | 106,941 | 106,941 | ||||||
Other Comprehensive Income (Loss) | (1,951) | (1,951) | ||||||
Dividends on Preferred Stock | (3) | (3) | ||||||
Dividends on Common Stock (Dividends Declared per Share) | (107,152) | (107,152) | ||||||
Dividends on Class A Common Stock (Dividends Declared per Share) | (1,965) | (1,965) | ||||||
Balance at Dec. 31, 2018 | 1,327,170 | [1] | $ 1 | $ 67 | 1,355,002 | (25,915) | (1,985) | |
Balance, Shares at Dec. 31, 2018 | 1,143,313 | 66,020,387 | ||||||
Issuance of Common Stock | 174,549 | $ 8 | 174,541 | |||||
Issuance of Common Stock, Shares | 8,875,760 | |||||||
Issuance of SubREIT Preferred Stock | 125 | 125 | ||||||
Issuance of SubREIT Preferred Stock, Shares | 125 | |||||||
Conversions of Class A Common Stock to Common Stock | (6,648) | 6,648 | ||||||
Repurchases and Retired of Common Stock | (327) | (285) | (42) | |||||
Repurchases and Retired of Common Stock, Shares | (16,682) | |||||||
Initial Public Offering Transaction Costs and Equity Issuance and Shelf Registration Statement Transaction Costs | (1,004) | (1,004) | ||||||
Amortization of Share Based Compensation | 2,556 | 2,556 | ||||||
Net Income | 126,313 | 126,313 | ||||||
Other Comprehensive Income (Loss) | 3,036 | 3,036 | ||||||
Dividends on Preferred Stock | (15) | (15) | ||||||
Dividends on Common Stock (Dividends Declared per Share) | (126,488) | (126,488) | ||||||
Dividends on Class A Common Stock (Dividends Declared per Share) | (1,961) | (1,961) | ||||||
Balance at Dec. 31, 2019 | $ 1,503,954 | [1] | $ 1 | $ 125 | $ 75 | $ 1,530,935 | $ (28,108) | $ 1,051 |
Balance, Shares at Dec. 31, 2019 | 1,136,665 | 74,886,113 | ||||||
[1] | The Company’s consolidated Total Assets and Total Liabilities at December 31, 2019 include the assets and liabilities of variable interest entities (“VIEs”) of $2.2 billion and $1.8 billion, respectively. The Company’s Total Assets and Total Liabilities at December 31, 2018 include assets and liabilities of VIEs of $1.9 billion and $1.5 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to those assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Common stock dividends declared per share | $ 1.72 | $ 1.71 | $ 1.56 |
Class A Common Stock | |||
Common stock dividends declared per share | $ 1.72 | $ 1.71 | $ 1.56 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Cash Flows from Operating Activities: | |||||
Net Income | $ 126,313 | $ 106,941 | $ 94,352 | ||
Adjustment to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||||
Amortization and Accretion of Premiums, Discounts and Loan Origination Fees, net | (16,331) | (15,915) | (19,477) | ||
Amortization of Deferred Financing Costs | 19,040 | 17,157 | 11,788 | ||
Capitalized Accrued Interest | 5,517 | ||||
Loss (Gain) on Sales of Loans Held for Investment and CRE Debt Securities Securities, net | 278 | 524 | (185) | ||
Stock Compensation Expense | 2,556 | 665 | 33 | ||
Cash Flows Due to Changes in Operating Assets and Liabilities: | |||||
Accounts Receivable | (2,306) | 103 | 503 | ||
Accrued Interest Receivable | (6,549) | (5,270) | (3,056) | ||
Accrued Expenses | (4,678) | 1,626 | (1,843) | ||
Accrued Interest Payable | 519 | 761 | 2,478 | ||
Payable to Affiliates | 3,524 | 769 | 1,272 | ||
Deferred Fee Income | (299) | 146 | (165) | ||
Other Assets | (402) | 190 | (44) | ||
Net Cash Provided by Operating Activities | 121,665 | 107,697 | 91,173 | ||
Cash Flows from Investing Activities: | |||||
Origination of Loans Held for Investment | (2,341,692) | (2,071,391) | (1,596,531) | ||
Advances on Loans Held for Investment | (268,356) | (258,308) | (313,160) | ||
Principal Advances Held by Servicer/Trustee | 496 | ||||
Principal Repayments of Loans Held for Investment | 1,961,906 | 1,131,294 | 1,164,052 | ||
Proceeds from Sales of Loans Held for Investment | 59,759 | 2,174 | 65,054 | ||
Purchase of Available-for-Sale CRE Debt Securities | (815,037) | (143,503) | (96,294) | ||
Sales and Principal Repayments of Available-for-Sale CRE Debt Securities | 94,790 | 146,869 | 73,912 | ||
Purchases and Disposals of Fixed Assets | (111) | ||||
Net Cash (Used in) Investing Activities | (1,308,630) | (1,192,865) | (702,582) | ||
Cash Flows from Financing Activities: | |||||
Payments on Collateralized Loan Obligations | (732,103) | (13,800) | (559,574) | ||
Proceeds from Collateralized Loan Obligations | 1,039,627 | 1,541,037 | 16,254 | ||
Payments on Secured Financing Agreements | (3,823,037) | (2,544,583) | (797,018) | ||
Proceeds from Secured Financing Agreements | 4,708,802 | 2,070,584 | 1,789,394 | ||
Payment of Deferred Financing Costs | (16,154) | (29,279) | (8,699) | ||
Payments to Repurchase Common Stock | (42) | (8,842) | (13,851) | ||
Proceeds from Issuance of Preferred Stock | 125 | ||||
Proceeds from Issuance of Common Stock | 174,549 | 139,440 | 243,654 | ||
Payment of Equity Issuance and Shelf Registration Statement Transaction Costs | (1,246) | (1,074) | |||
Net Cash Provided by Financing Activities | 1,225,911 | 1,050,151 | 583,171 | ||
Net Change in Cash, Cash Equivalents, and Restricted Cash | 38,946 | (35,017) | (28,238) | ||
Cash, Cash Equivalents and Restricted Cash at Beginning of Year | 40,720 | 75,737 | 103,975 | ||
Cash, Cash Equivalents and Restricted Cash at End of Year | 79,666 | 40,720 | 75,737 | ||
Supplemental Disclosure of Cash Flow Information: | |||||
Interest Paid | 155,282 | 108,106 | 64,003 | ||
Taxes Paid | 394 | 341 | 142 | ||
Supplemental Disclosure of Non-Cash Investing and Financing Activities: | |||||
Principal Repayments of Loans Held for Investment by Servicer/Trustee, net | 12,950 | 94,633 | 220 | ||
Principal Repayments of Available-for-Sale CRE Debt Securities Held by Servicer/Trustee, net | 213 | ||||
Dividends Declared, not paid | 32,835 | [1] | 28,981 | [1] | 23,068 |
Accrued Equity Offering and Shelf Registration Costs | 312 | ||||
Accrued Deferred Financing Costs | 5,411 | 2,926 | 1,054 | ||
Unrealized Gain (Loss) on Available-for-Sale CRE Debt Securities | 3,036 | (1,951) | (1,284) | ||
Accrued Common Stock Repurchase Costs | 95 | 239 | |||
Initial Public Offering | |||||
Cash Flows from Financing Activities: | |||||
Payment of Initial Public Offering Transaction Costs | (7,060) | ||||
Preferred Class A | |||||
Cash Flows from Financing Activities: | |||||
Payments to Redeem Series A Preferred Stock | (125) | ||||
Dividends paid | (15) | (3) | (16) | ||
Class A Common Stock | |||||
Cash Flows from Financing Activities: | |||||
Proceeds from Issuance of Common Stock | 365 | ||||
Dividends paid | (1,964) | (1,921) | (1,803) | ||
Common Stock, Undefined Class | |||||
Cash Flows from Financing Activities: | |||||
Dividends paid | $ (122,631) | $ (101,283) | $ (78,475) | ||
[1] | The Company’s consolidated Total Assets and Total Liabilities at December 31, 2019 include the assets and liabilities of variable interest entities (“VIEs”) of $2.2 billion and $1.8 billion, respectively. The Company’s Total Assets and Total Liabilities at December 31, 2018 include assets and liabilities of VIEs of $1.9 billion and $1.5 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to those 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 | 12 Months Ended |
Dec. 31, 2019 | |
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 TPG RE Finance Trust Holdco, LLC (“Holdco”), a Delaware limited liability company that is wholly owned by the Company, and Holdco’s direct and indirect subsidiaries. We conduct our operations as a real estate investment trust (“REIT”) for U.S. federal income tax purposes. We generally will not be subject to U.S. federal income taxes on our REIT taxable income to the extent that we annually distribute all of our REIT taxable income to stockholders and maintain our qualification as a REIT. We also operate our business in a manner that permits us to maintain an exclusion from registration under the Investment Company Act of 1940, as amended. The Company’s principal business activity is to directly originate and acquire a diversified portfolio of commercial real estate related assets, consisting primarily of first mortgage loans and senior participation interests in first mortgage loans secured by institutional-quality properties in primary and select secondary markets in the United States, and commercial real estate debt securities, including commercial mortgage-backed securities (“CMBS”) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (2) Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements include the Company’s accounts, consolidated variable interest entities for which the Company is the primary beneficiary, and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated. Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires estimates of assets, liabilities, revenues, expenses and disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Actual results could differ from management’s estimates, and such differences could be material. Significant estimates made in the consolidated financial statements include but are not limited to 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 (see Note 5 for details). Revenue Recognition Interest income on loans is accrued using the interest method based on the contractual terms of the loan, adjusted for credit impairment, if any. The objective of the interest method is to arrive at periodic interest income, including recognition of fees and costs, at a constant effective yield. Premiums, discounts, and origination fees are amortized or accreted into interest income over the lives of the loans using the interest method, or on a straight line basis when it approximates the interest method. Extension and modification fees are accreted into income on a straight line basis, when it approximates the interest method, over the related extension or modification period. Exit fees are accreted into income on a straight line basis, when it approximates the interest method, over the lives of the loans to which they relate unless they can be waived by the Company or a co-lender in connection with a loan refinancing. Prepayment penalties from borrowers are recognized as interest income when received. Certain of the Company’s loan investments have in the past and 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 the loan on non-accrual status when: (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. Based on the Company’s judgment as to the collectability of principal, a loan on non-accrual status is either accounted for on a cash basis, where interest income is recognized only upon receipt of cash for principal and interest payments, or on a cost-recovery basis, where all cash receipts reduce the loan’s carrying value, and interest income is only recorded when such carrying value has been fully recovered. During the fiscal years ended December 31, 2019 and December 31, 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 loan loss allowances, if any. 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, a loan loss 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 securing the impaired loan, less estimated costs to sell such collateral, if recovery of the Company’s investment is expected solely from the sale of such collateral. As part of the quarterly impairment review, the Company evaluates the risk of each loan and assigns a risk rating based on a variety of factors, grouped as follows to include, among other factors: (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, the Company’s loans are rated “1” through “5,” from least risk to greatest risk, respectively, which ratings are defined as follows: 1- Outperform—Exceeds performance metrics (for example, technical milestones, occupancy, rents, net operating income) included in original or current credit underwriting and business plan; 2- Meets or Exceeds Expectations—Collateral performance meets or exceeds substantially all performance metrics included in original or current underwriting / business plan; 3- Satisfactory—Collateral performance meets or is on track to meet underwriting; business plan is met or can reasonably be achieved; 4- Underperformance—Collateral performance falls short of original underwriting, material differences exist from business plan, or both; technical milestones have been missed; defaults may exist, or may soon occur absent material improvement; and 5- 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. The Company generally assigns a risk rating of “3” to all newly originated loan investments during the most recent quarter, except in the case of specific circumstances warranting an exception. Since Inception, the Company has not recognized any impairments on its loan portfolio and has not recorded any loan loss allowances against any of the loans in its portfolio. The Company’s 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 Real Estate-Related Debt Instruments The Company acquires CRE debt securities primarily for cash management and investment purposes. The Company designates CRE debt securities as available-for-sale on the acquisition date. CRE debt securities that are classified as available-for-sale are recorded at fair value through other comprehensive income or loss in the Company’s consolidated financial statements. The Company recognizes interest income on its CRE debt securities using the interest method, or on a straight line basis when it approximates the interest method, with any premium or discount amortized or accreted into interest income based on the respective outstanding principal balance and corresponding contractual term of the CRE debt security. The Company uses a specific identification method when determining the cost of a CRE debt security sold and the amount of unrealized gain or loss reclassified from accumulated other comprehensive income or loss into earnings. Unrealized losses on CRE debt 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 CRE debt securities using secured revolving repurchase agreements, asset-specific financing arrangements, senior secured and secured credit agreements, collateralized loan obligations, and a term loan facility. The related borrowings are recorded as separate liabilities on the Company’s consolidated balance sheets. Interest income earned on the investments and interest expense incurred on the related borrowings are reported separately on the Company’s consolidated statements of income and comprehensive income. In certain instances, the Company creates structural leverage through the co-origination or non-recourse syndication of a senior loan interest to a third party. For all such syndications the Company has completed through December 31, 2019, the Company 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. As of December 31, 2018, the Company revised its “Note Payable” naming convention in its consolidated balance sheet to “Asset-Specific Financings”. No amounts reported in prior periods were reclassified between financial statement line items and there was no impact to the Company’s financial statements resulting from this change in naming convention. 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, TPG RE Finance Trust Management, L.P., a Delaware limited partnership (the “Manager”), and certain individuals or entities affiliated with 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. See Note 17 to the Consolidated Financial Statements for details regarding the conversion of Class A common stock subsequent to December 31, 2019. 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. Deferred stock units granted to the Company’s Board of Directors fully vest on the grant date and accrue dividends that are paid-in kind on a quarterly basis. Compensation expense is recognized in net income on a straight-line basis over the applicable award vesting period. Forfeitures of share-based awards are recognized as they occur. Deferred Financing Costs Deferred financing costs are reflected net of the collateralized loan obligations and secured financing arrangements on the Company’s consolidated balance sheets. These costs are amortized in interest expense using the interest method or on a straight line basis when it approximates the interest method, over the shorter of the initial maturity of the obligations or financing arrangement. Cash and Cash Equivalents Cash and cash equivalents include cash held in banks or invested in money market funds with original maturities of less than 90 days. The Company deposits its cash and cash equivalents with high credit quality institutions to minimize credit risk exposure. The Company maintains cash accounts at several financial institutions, which are insured up to a maximum of $250,000 per account as of December 31, 2019 and December 31, 2018. 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 or if a transaction does not close. Accounts Receivable from Servicer/Trustee Accounts receivable from Servicer/Trustee represents cash proceeds from loan and CRE debt securities activities that have not been remitted to the Company based on servicing agreements in place. Amounts are generally held by the Servicer/Trustee for less than 30 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 existing “incurred loss” model with an “expected loss” model for instruments measured at amortized cost, and require entities to record allowances for available-for-sale (“AFS”) debt securities rather than reduce the carrying amount, as is required today under the other-than-temporary impairment model. It also simplifies the accounting model for purchased credit-impaired (“PCI”) debt securities and loans. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019 and will be adopted through a cumulative-effect adjustment to retained earnings as of January 1, 2020. The Company implemented its previously disclosed plan for Current Expected Credit Losses (“CECL”), including running parallel production of the existing expected loss approach with the CECL approach during the second half of 2019. Key project development activities for 2019 included determination of relevant historical data sets for use in estimating expected credit losses, selection of a credit loss model, development of a framework for compiling historical and projected loan-level information, completion and documentation of policies and procedures, additional disclosures, and controls. A control framework for governance, data, forecast, and model controls was designed to support the CECL process, which requires significant judgment by management regarding many factors, including but not limited to: the appropriate historical loan loss reference data; the timing of loan fundings and repayments; the current credit quality of loans and operating performance of loan collateral; our expectations of future loan and collateral performance; and macroeconomic conditions. The CECL reserve required under ASU 2016-13 is a valuation account that is deducted from the amortized cost basis of related loans and AFS debt securities on our consolidated balance sheets, and which will reduce our stockholders’ equity. The initial CECL reserve recorded on January 1, 2020 will be reflected as a direct charge against retained earnings; however, future net changes to the CECL reserve will be recognized in net income on our consolidated statement of operations. ASU 2016-13 does not require use of a particular method for determining the CECL reserve, but it does specifiy the allowance should be based on relevant information about past events, including historical loss experience, composition of the current loan and AFS debt securities portfolio, current conditions in the real estate and capital markets, and reasonable and supportable forecasts for the expected term of each loan. Additionally, but for a few narrow exceptions, ASU 2016-13 requires that all financial instruments subject to CECL incur some amount of valuation reserve to reflect the underlying principle of the CECL model that all loans, debt securities and similar financial assets bear some inherent risk of loss regardless of credit quality, amount of subordinate capital, or other risk mitigants. In the absence of any Company history of valuation reserves or realized loan losses since our inception in 2014, the Company elected to utilize a widely-used analytical model incorporating a loss-given-default methodology and loan performance data for over 100,000 commercial real estate loans dating back to 1998. The Company expects to utilize this loan data set, or variants of it, unless and until the Company develops its own history of realized losses. The Company selected for use in its CECL estimate a macroeconomic forecast that calls for stable economic activity during the reasonable forecast period. The Company determined that the key variables driving its CECL loss estimate are debt service coverage ratio and LTV ratio. Other notable variables include property type, property occupancy, and loan vintage. In certain instances, for loans with unique risk characteristics, we may elect to employ different methods of loss estimation that also conform with ASU 2016-13 and related guidance, although no such alternate method was used to determine our initial CECL estimate. Upon adoption of ASU 2016-13 on January 1, 2020, we expect to record an initial CECL reserve of approximately $18.5 million, or $0.24 per share, which is 0.33% of the aggregate commitment amount of the Company’s loan portfolio at December 31, 2019. The Company does not expect the impact of CECL on its portfolio of AFS debt securities to be material. At December 31, 2019, our portfolio of AFS debt securities had an aggregate estimated fair market value that exceeded its amortized cost basis by $1.1 million. Recently Adopted Accounting Pronouncements 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. On July 1, 2018, the Company adopted these updates for share-based compensation payments made to certain individuals employed by an affiliate of the Manager. The Company’s adoption of the share-based compensation ASU on July 1, 2018 did not have a material impact on the Company’s consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 is a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. In August 2015, the FASB issued an update (“ASU 2015-14”) to Topic 606, Deferral of the Effective Date, which deferred the adoption of ASU 2014-09 to interim and annual reporting periods in fiscal years that begin after December 15, 2017. In March 2016, the FASB issued an update (“ASU 2016-08”) to Topic 606, Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarifies the implementation guidance on principal versus agent considerations in the new revenue recognition standard pursuant to ASU 2014-09. In April 2016, the FASB issued an update (“ASU 2016-10”) to Topic 606, Identifying Performance Obligations and Licensing, which clarifies guidance related to identifying performance obligations and licensing implementation guidance contained in ASU 2014-09. In May 2016, the FASB issued an update (“ASU 2016-12”) to Topic 606, Narrow-Scope Improvements and Practical Expedients, which amends certain aspects of the new revenue recognition standard pursuant to ASU 2014-09. In adopting ASU 2014-09, companies may use either a full retrospective or a modified retrospective approach. Additionally, this guidance requires improved disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted the revenue recognition standard updates on January 1, 2018. The Company’s adoption of the revenue recognition standard updates on January 1, 2018 did not have a material impact on the Company’s consolidated financial statements. |
Loans Held for Investment
Loans Held for Investment | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Loans Held for Investment | (3) Loans Held for Investment The Company currently originates and acquires first mortgage and mezzanine loans secured by commercial properties. These loans can potentially subject the Company to concentrations of credit risk as measured by various metrics, including without limitation property type collateralizing the loan, loan size, loans to a single sponsor and loans in a single geographic area, among others. The Company’s loans held for investment are accounted for at amortized cost. During the year ended December 31, 2019, the Company’s subsidiaries originated 32 loans with a total commitment of approximately $2.9 billion, an initial unpaid principal balance of $2.4 billion, and unfunded commitments upon closing of $439.5 million, including a $132.0 million non-consolidated senior interest. During the year ended December 31, 2018, the Company originated 26 loans with a total commitment of approximately $2.52 billion, an initial unpaid principal balance of $2.1 billion, and unfunded commitments at closing of $436.2 million. To fund these loan originations, the Company employed various financing methods, including secured revolving repurchase agreements, senior secured and secured credit agreements, collateralized loan obligations, asset-specific financings, a term loan facility, and the syndication of non-consolidated senior interests which are non-recourse to the Company and are recognized as sales. Total commitments related to the syndication of non-consolidated senior interests for the year ended December 31, 2019 were $132.0 million. The Company had no non-consolidated senior interests outstanding as of December 31, 2018. The following tables present an overview of the mortgage loan investment portfolio as of December 31, 2019 and December 31, 2018 (dollars in thousands): December 31, 2019 Loans Receivable Outstanding Principal Unamortized Premium (Discount), Loan Origination Fees, net Carrying Amount Senior loans $ 4,978,176 $ (17,500 ) $ 4,960,676 Subordinated and mezzanine loans 20,000 (287 ) 19,713 Subtotal before allowance 4,998,176 (17,787 ) 4,980,389 Allowance for loan losses — — — Total $ 4,998,176 $ (17,787 ) $ 4,980,389 December 31, 2018 Loans Receivable Outstanding Principal Unamortized Premium (Discount), Loan Origination Fees, net Carrying Amount Senior loans $ 4,313,591 $ (19,804 ) $ 4,293,787 Subordinated and mezzanine loans — — — Subtotal before allowance 4,313,591 (19,804 ) 4,293,787 Allowance for loan losses — — — Total $ 4,313,591 $ (19,804 ) $ 4,293,787 For the year ended December 31, 2019, loan portfolio activity was as follows (dollars in thousands): Carrying Amount Balance at December 31, 2018 $ 4,293,787 Additions during the period: Loans originated 2,341,692 Additional fundings 268,356 Amortization of origination fees 16,345 Deductions during the period: Collection of principal (1) (1,939,791 ) Balance at December 31, 2019 $ 4,980,389 (1) Includes loan repayments and sales. At December 31, 2019 and December 31, 2018, respectively, there were no On December 17, 2019, the Company sold a performing floating rate first mortgage loan secured by a multifamily property with a commitment amount of $64.9 million and an unpaid principal balance of $59.6 million. Total cash consideration received was $59.8 million generating a gain on sale of $0.2 million which is included in Other Income, net in the Company’s consolidated statements of income and comprehensive income. 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 $2.6 million, including sale costs and fees, recognizing a loss on sale of $0.4 million which is recorded in Other Income, net in the Company’s consolidated statements of income and comprehensive income. The table below summarizes the carrying values and results of the Company’s internal risk rating review performed as of December 31, 2019 and December 31, 2018 (dollars in thousands): Carrying Value Rating December 31, 2019 December 31, 2018 1 $ — $ 29,923 2 903,393 959,314 3 3,868,696 3,099,401 4 208,300 205,149 5 — — Totals $ 4,980,389 $ 4,293,787 Weighted Average Risk Rating (1) 2.9 2.8 (1) Weighted Average Risk Rating calculated based on carrying value at year end The weighted average risk rating at December 31, 2019 and December 31, 2018 was 2.9 and 2.8, respectively. During the three months ended December 31, 2019, two loans were moved from the Company’s Category 3 risk rating into its Category 2 risk rating, resulting from recent improvements in the operating performance of the underlying collateral. Additionally, during the three months ended December 31, 2019, one loan with a Category 4 risk rating was sold at a gain. The Company generally assigns a risk rating of “3” to all loan investments originated during the most recent quarter, except in the case of specific circumstances warranting an exception. At December 31, 2019 and December 31, 2018, no loans were on non-accrual status or impaired; consequently, the Company did not record an allowance for loan losses. |
Available-for-Sale Debt Securit
Available-for-Sale Debt Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Available-for-Sale Debt Securities | (4) Available-for-Sale Debt Securities The Company designates its CRE debt securities as available-for-sale securities upon acquisition. During the year ended December 31, 2019, the Company purchased 37 CRE CLO investments for an aggregate purchase price of $785.4 million. The purchased CRE CLO investments primarily consist of floating rate investment-grade debt securities which, in the aggregate, had a weighted average coupon of LIBOR plus 2.0%. In September 2019, the Company sold two of its CMBS investments and a partial interest in one of its CMBS investments for total proceeds of $46.2 million, recognizing a loss on the sale of $0.5 million, which is recorded in Other Income, net in the Company’s consolidated statements of income and comprehensive income. At December 31, 2019 and December 31, 2018, the Company had 38 and four CRE debt securities investments, respectively, designated as available-for-sale securities. Details of the carrying and fair values of the Company’s CRE debt securities are as follows (dollars in thousands): December 31, 2019 Face Amount Unamortized Premium (Discount), net Amortized Cost Unrealized Gain Estimated Fair Value Investments, at Fair Value CRE CLO $ 750,187 $ 207 $ 750,394 $ 1,006 $ 751,400 Commercial Mortgage-Backed Securities 36,162 (55 ) $ 36,107 45 36,152 $ 786,349 $ 152 $ 786,501 $ 1,051 $ 787,552 December 31, 2018 Face Amount Unamortized Premium (Discount), net Amortized Cost Unrealized (Loss) Estimated Fair Value Investments, at Fair Value Commercial mortgage-backed securities $ 76,404 $ (38 ) $ 76,366 $ (1,985 ) $ 74,381 C RE debt securities investment fair values are Level II fair value measurements within the fair value hierarchy of ASC 820-10. The CRE debt securities investment fair values are based upon multiple market, broker, and counterparty or pricing services quotations, which provide valuation estimates based upon reasonable market order indications. The Company reviews the fair value quotations, which are subject to significant variability based on market conditions, such as interest rates, credit spreads and market liquidity, for reasonableness and consistency. The Company’s CRE debt securities have a weighted average expected life, based on estimated fair value, of 3.2 years. The amortized cost and estimated fair value of the Company’s CRE debt securities by contractual maturity as of December 31, 2019 and December 31, 2018, respectively, are shown in the following table (dollars in thousands): December 31, 2019 Amortized Cost Estimated Fair Value Contractual Maturity Date After one, within five years $ 1,126 $ 1,143 After five years 785,375 786,409 Total investment in commercial mortgage-backed securities, at amortized cost and estimated fair value $ 786,501 $ 787,552 December 31, 2018 Amortized Cost Estimated Fair Value Contractual Maturity Date After one, within five years $ 37,929 $ 38,076 After five years 38,436 36,305 Total investment in commercial mortgage-backed securities, at amortized cost and estimated fair value $ 76,365 $ 74,381 As of December 31, 2019, certain of the Company’s CRE debt securities were in an unrealized loss position. The Company held these positions less than twelve months. During the year ended December 31, 2019, these CRE debt securities traded at, or near, their carrying values, interest and principal payments were current, and all of the underlying mortgage loans were performing. Consequently, no other-than-temporary impairments were recognized through income during the years ended December 31, 2019 or December 31, 2018, respectively. |
Variable Interest Entities and
Variable Interest Entities and Collateralized Loan Obligations | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Variable Interest Entities and Collateralized Loan Obligations | (5) Variable Interest Entities and Collateralized Loan Obligations On October 25, 2019 (the “FL3 Closing Date”), TPG RE Finance Trust CLO Sub-REIT, a subsidiary of the Company (“Sub-REIT”), entered into a collateralized loan obligation (“TRTX 2019-FL3” or “FL3”) through its wholly-owned subsidiaries TRTX 2019-FL3 Issuer, Ltd., an exempted company incorporated in the Cayman Islands with limited liability, as issuer (the “FL3 Issuer”), and TRTX 2019-FL3 Co-Issuer, LLC, a Delaware limited liability company, as co-issuer (the “FL3 Co-Issuer” and together with the FL3 Issuer, the “FL3 Issuers”). On the FL3 Closing Date, FL3 Issuer issued $1,230.3 million principal amount of notes (the “FL3 Notes”). The FL3 Co-Issuer co-issued $1,039.6 million principal amount of investment grade-rated notes which were purchased by third party investors. Concurrently with the issuance of the FL3 Notes, the FL3 Issuers also issued preferred shares, par value $0.001 per share and with an aggregate liquidation preference and notional amount equal to $1,000 per share (the “FL3 Preferred Shares” and, together with the FL3 Notes, the “FL3 Securities”), to TRTX Master Retention Holder, LLC, a Delaware limited liability company and wholly-owned subsidiary of the Sub-REIT (“FL3 Retention Holder”). Through FL3 Retention Holder, the Sub-REIT retained ownership of $190.7 million of FL3 Notes issued and FL3 Preferred Shares. Proceeds from the issuance of the FL3 Securities were used by the FL3 Issuers to purchase two commercial real estate whole loans (the “FL3 Whole Loans”) and 20 fully-funded pari passu participations in mortgage loans (the “FL3 Pari Passu Participations,” and, together with the FL3 Whole Loans and the FL3 Additional Interests (as defined below), the “FL3 Mortgage Assets”) in certain commercial real estate mortgage loans. The FL3 Mortgage Assets were purchased by the FL3 Issuer from TRTX Master CLO Loan Seller, LLC, a Delaware limited liability company, a wholly-owned subsidiary of the Company and an affiliate of the FL3 Issuers. The TRTX 2019-FL3 indenture permits the FL3 Issuer to modify certain economic terms, including without limitation, the interest rate and maturity date of FL3 Mortgage Assets, and subject to certain limitations, to provide additional flexibility with respect to the underlying collateral where appropriate to do so. TRTX 2019-FL3 permits the Company , during the 24 months after closing of FL3 , to contribute eligible new loans or participation interests (the “FL3 Additional Interests”) in loans to TRTX 2019-FL3 in exchange for cash, which provides additional liquidity to the Company to originate new loan investments as underlying loans repay. FL3 Mortgage Assets represented 24.6 % of the aggregate unpaid principal balance of the Company’s loan investment portfolio and had an aggregate principal balance of approximately $ 1.2 billion , as of December 31, 2019. At December 31, 2019, TRTX 2019-FL3 held $1.3 million of cash available to acquire eligible assets. The Company incurred $7.8 million of issuance costs which are amortized on an effective yield basis over the shorter of the remaining life of the loans that collateralized the FL3 notes. As of December 31, 2019, the Company’s unamortized issuance costs were $7.4 million. Interest expense on the outstanding FL3 Notes is payable monthly. For the year ended December 31, 2019 interest expense (excluding amortization of deferred financing costs) of $5.8 million is included in the Company’s consolidated statements of income and comprehensive income. On November 29, 2018 (the “Closing Date”), Sub-REIT entered into a collateralized loan obligation (“TRTX 2018-FL2”). The TRTX 2018-FL2 indenture permits the Company to contribute eligible new loans or participation interests in loans to TRTX 2018-FL2 in exchange for cash, which provides additional liquidity to the Company to originate new loan investments as underlying loans repay. For the year ended December 31, 2019, the Company utilized the reinvestment feature eleven times, contributing $514.7 million of new loans or participation interests in loans, and receiving net cash proceeds of $159.8 million, after the repayment of $354.9 million of existing borrowings, including accrued interest. At December 31, 2019, TRTX 2018-FL2 had $0.1 million in cash available to acquire eligible assets. The Company incurred approximately $8.7 million of issuance costs which are amortized on an effective yield basis over the shorter of the remaining life of the loans that collateralized the TRTX 2018-FL2 Notes. As of December 31, 2019, the Company’s unamortized issuance costs were $6.1 million. Interest expense on the outstanding TRTX 2018-FL2 Notes is payable monthly. For the years ended December 31, 2019 and 2018, interest expense (excluding amortization of deferred financing costs) of $29.4 million and $2.8 million, respectively, is included in the Company’s consolidated statements of income and comprehensive income. On February 14, 2018, Sub-REIT entered into a collateralized loan obligation, TRTX 2018-FL1. On August 16, 2019, the Company utilized the contractual call option in TRTX 2018-FL1 to repurchase at par all the outstanding investment grade-rated notes held by third-party investors and retired all preference shares and non-investment grade notes held by the Company’s subsidiaries (collectively, the “TRTX 2018-FL1 Securities”), for total consideration of $509.5 million generating net cash proceeds of $32.2 million. For the year ended December 31, 2019, as a result of TRTX 2018-FL1 redemption, the Company expensed $0.04 million of unamortized issuance costs as interest expense in the consolidated statements of income and comprehensive income. For the years ended December 31, 2019 and December 31, 2018, the Company incurred interest expense (excluding amortization of deferred financing costs) on the TRTX 2018-FL1 investment grade-rated notes of $11.6 million and $20.7 million, respectively, which is included in the Company’s consolidated statements of income and comprehensive income. In accordance with ASC 810, the Company evaluated the key attributes of the TRTX 2019-FL3 Issuers, TRTX 2018-FL2 Issuers and TRTX 2018-FL1 Issuers to determine if they were VIEs and, if so, whether the Company was the primary beneficiary of their operating activities. This analysis caused the Company to conclude that the TRTX 2019-FL3 Issuers, the TRTX 2018-FL2 Issuers and TRTX 2018-FL1 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 to the extent of its equity investments, and the right to receive benefits, that could potentially be significant to these entities. As a result, the Company consolidates the TRTX 2019-FL3 Issuers, TRTX 2018-FL2 Issuers and the TRTX 2018-FL1 Issuers. The Company’s total assets and total liabilities at December 31, 2019 included the following VIE assets and liabilities of TRTX 2019-FL3 and TRTX 2018-FL2 (dollars in thousands): December 31, 2019 ASSETS Cash and Cash Equivalents $ 17,075 Accounts Receivable from Servicer/Trustee 1,464 Accrued Interest Receivable 2,178 Loans Held for Investment 2,229,034 Total Assets $ 2,249,751 LIABILITIES Accrued Interest Payable $ 2,512 Accrued Expenses 732 Collateralized Loan Obligations 1,821,128 Payable to Affiliates 4,620 Total Liabilities $ 1,828,992 The Company’s total assets and total liabilities at December 31, 2018 included the following VIE assets and liabilities of TRTX 2018-FL2 and TRTX 2018-FL1 (dollars in thousands): December 31, 2018 ASSETS Cash and Cash Equivalents $ 3,896 Accounts Receivable from Servicer/Trustee 94,763 Accrued Interest Receivable 3,672 Loans Held for Investment 1,824,281 Total Assets $ 1,926,612 LIABILITIES Accrued Interest Payable $ 2,637 Accrued Expenses 668 Collateralized Loan Obligations 1,514,790 Total Liabilities $ 1,518,095 The following table outlines TRTX 2019-FL3 and TRTX 2018-FL2 loan collateral and borrowings under the TRTX 2019-FL3 and TRTX 2018-FL2 collateralized loan obligations as of December 31, 2019 (dollars in thousands): As of December 31, 2019 Collateral (loan investments) Debt (notes issued) Outstanding Principal Carrying Value Face Value Carrying Value $ 2,229,034 $ 2,229,034 $ 1,834,761 $ 1,821,128 The following table outlines TRTX 2018-FL2 and TRTX 2018-FL1 loan collateral and borrowings under the TRTX 2018-FL2 and TRTX 2018-FL1 collateralized loan obligations as of December 31, 2018 (dollars in thousands): As of December 31, 2018 Collateral (loan investments) Debt (notes issued) Outstanding Principal Carrying Value Face Value Carrying Value $ 1,824,281 $ 1,824,281 $ 1,527,237 $ 1,514,790 Assets held by TRTX 2019-FL3 Issuer, TRTX 2018-FL2 Issuer, and TRTX 2018-FL1 Issuer are restricted and can only be used to settle obligations of the related VIE. The liabilities of TRTX 2019-FL-3 Issuer, TRTX 2018-FL2 Issuer and TRTX 2018-FL1 Issuer are non-recourse to the Company and can only be satisfied from the assets of the related VIE. |
Secured Revolving Repurchase Ag
Secured Revolving Repurchase Agreements, Senior Secured and Secured Credit Agreements, Term Loan Facility, and Asset-Specific Financings | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Secured Revolving Repurchase Agreements, Senior Secured and Secured Credit Agreements, Term Loan Facility, and Asset-Specific Financings | (6) Secured Revolving Repurchase Agreements, Senior Secured and Secured Credit Agreements, Term Loan Facility, and Asset-Specific Financings At December 31, 2019 and December 31, 2018, the Company had secured revolving repurchase agreements, senior secured and secured credit agreements, and asset-specific financings for certain of the Company’s originated loans. Additionally, the Company had a term loan facility outstanding at December 31, 2018. These financing arrangements bear interest at a rate equal to LIBOR plus a credit spread determined primarily by advance rate and property type. The financing arrangements 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 tables present certain information regarding the Company’s secured revolving repurchase agreements, senior secured and secured credit agreements, and asset-specific financings as of December 31, 2019 and December 31, 2018. Except as otherwise noted, all agreements are on a non-recourse basis (dollars in thousands): As of December 31, 2019 Financing Arrangement Maturity Date Index Rate Weighted Average Credit Spread Interest Rate Commitment Amount Maximum Current Availability Balance Outstanding Principal Balance of Collateral Secured Revolving Repurchase Agreements Goldman Sachs (1) 08/19/20 1 Month Libor 1.8 % 3.5 % $ 750,000 $ 704,563 $ 45,437 $ 288,032 Wells Fargo (1) 04/18/22 1 Month Libor 1.8 3.6 750,000 355,372 394,628 593,742 Barclays (1) 08/13/22 1 Month Libor 1.5 3.3 750,000 318,240 431,760 542,927 Morgan Stanley (1) 05/04/20 1 Month Libor 1.9 3.6 500,000 105,253 394,747 519,638 JP Morgan (1) 08/20/21 1 Month Libor 1.6 3.3 400,000 181,552 218,448 300,677 US Bank (1) 07/09/22 1 Month Libor 1.8 3.6 152,240 15,641 136,599 173,253 Subtotal - Loan Investments 3,302,240 1,680,621 1,621,619 2,418,269 Goldman Sachs (2) 01/12/20 1 Month Libor 0.9 % 2.7 % 81,143 - 81,143 94,629 JP Morgan (2) 01/17/20 1 Month Libor 0.9 2.6 475,881 - 475,881 544,105 Wells Fargo (2) 01/16/20 1 Month Libor 1.0 2.7 135,774 - 135,774 161,153 Royal Bank of Canada (2) N/A N/A N/A N/A - - — — Subtotal - CRE Debt Securities $ 692,798 $ - $ 692,798 $ 799,887 Subtotal $ 3,995,038 $ 1,680,621 $ 2,314,417 $ 3,218,156 Senior Secured and Secured Credit Agreements Bank of America (1) 09/29/20 1 Month Libor 1.8 % 3.8 % 500,000 354,363 145,637 182,882 Citibank (3) 07/12/20 1 Month Libor 2.3 4.1 160,000 160,000 — — Subtotal $ 660,000 $ 514,363 $ 145,637 $ 182,882 Asset-specific Financing Institutional Lender 10/09/20 1 Month Libor 4.2 % 5.9 % 77,000 — 77,000 112,000 Subtotal $ 77,000 — $ 77,000 $ 112,000 Total $ 4,732,038 $ 2,194,984 $ 2,537,054 $ 3,513,038 (1) Borrowings under secured revolving repurchase agreements and a senior secured credit agreement, 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 CRE debt securities, secured revolving repurchase agreement, or roll-over date for the applicable underlying trade confirmation subsequent to December 31, 2019. All of the financing arrangements were extended subsequent to period end. (3) As of December 31, 2018 Financing Arrangement Maturity Date Index Rate Weighted Average Credit Spread Interest Rate Commitment Amount Maximum Current Availability Balance Outstanding Principal Balance of Collateral Secured Revolving Repurchase Agreements Goldman Sachs (1) 08/19/19 1 Month Libor 2.2 % 4.6 % $ 750,000 $ 558,836 $ 191,164 $ 474,243 Wells Fargo (1) 05/25/19 1 Month Libor 1.8 4.3 750,000 503,792 246,208 339,012 Morgan Stanley (1) 05/04/19 1 Month Libor 2.2 4.7 500,000 317,493 182,507 244,936 JP Morgan (1) 08/20/21 1 Month Libor 2.2 4.6 400,000 214,471 185,529 254,026 US Bank (1) 10/09/21 1 Month Libor 1.8 4.3 212,840 6,800 206,040 262,929 Subtotal - Loan Investments 2,612,840 1,601,392 1,011,448 1,575,146 Goldman Sachs (2) 01/02/19 1 Month OIS 0.6 2.9 100,000 67,303 32,697 38,517 Royal Bank of Canada (2) N/A N/A N/A N/A 100,000 100,000 - - Subtotal - CRE Debt Securities $ 200,000 $ 167,303 $ 32,697 $ 38,517 Subtotal $ 2,812,840 $ 1,768,695 $ 1,044,145 $ 1,613,663 Senior Secured and Secured Credit Agreements Bank of America (1) 09/29/20 1 Month Libor 1.9 % 4.2 % $ 500,000 $ 112,560 387,440 494,247 Citibank (3) 07/12/20 1 Month Libor 2.3 4.8 $ 160,000 $ 87,059 72,941 169,134 Subtotal $ 660,000 $ 199,619 $ 460,381 $ 663,381 Asset-specific Financing Maturity Date Index Rate Credit Spread Interest Rate Commitment Amount Maximum Current Availability Balance Outstanding Principal Balance of Collateral BMO Harris Bank (1) 04/09/20 1 Month Libor 2.7 % 4.0 % 32,500 — 32,500 45,000 Subtotal $ 32,500 — $ 32,500 $ 45,000 Total $ 3,505,340 $ 1,968,314 $ 1,537,026 $ 2,322,044 ( 1) (2) Borrowings under one asset-specific financing arrangement, secured revolving repurchase agreements, and a senior secured credit agreement with a guarantee for 100% recourse. Maturity Date represents the sooner of the next maturity date of the CRE debt securities, secured revolving repurchase agreement or roll-over date for the applicable underlying trade confirmation subsequent to December 31, 2018. All of the financing arrangements were extended subsequent to period end. (3) Borrowings under secured revolving repurchase agreements with a guarantee for 100% recourse. Secured Revolving Repurchase Agreements The Company frequently utilizes secured revolving repurchase agreements to finance the direct origination or acquisition of commercial real estate mortgage loans and CRE debt securities. Under these secured revolving repurchase agreements, the Company transfers all of its rights, title and interest in the loans or CRE debt securities 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 CRE debt securities and remits to the Company only the net after collecting its interest and other fees. The loan and CRE debt securities related to secured revolving repurchase agreements are 25% and 100% recourse to Holdco, respectively. At December 31, 2019 and December 31, 2018, the Company had six and 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 December 31, 2019 and December 31, 2018 consisted of 60 and 51 mortgage loans, or participation interests therein, respectively. During the year ended December 31, 2019, the Company closed a $750 million secured revolving repurchase agreement with Barclays Bank PLC with a maturity date of August 13, 2022. During the year ended December 31, 2018, the Company amended its Goldman Sachs Bank USA and JPMorgan Chase Bank, National Association secured revolving repurchase agreements, extending the maturity dates to August 19, 2019 and August 20, 2021 , respectively. During the year ended December 31, 2019 , the Company amended these agreement s to extend the maturity dates to August 19, 2020 and August 19, 2022 , respectively. The Company’s secure d revolving repurchase agreements secured by commercial mortgage loans are considered long-term borrowings. At December 31, 2019 and December 31, 2018, the Company had four and two secured revolving repurchase agreements to finance its CRE debt securities, of which the commitment amounts are based on the assets pledged. Credit spreads also vary depending upon the collateral type and advance rate. CRE debt securities pledged consisted of 35 CRE CLO investments and two CMBS investments at December 31, 2019 and two The Company’s secured revolving repurchase agreements secured by CRE debt securities are considered short-term borrowings. The following table summarizes certain characteristics of the Company’s secured revolving repurchase agreements secured by commercial mortgage loans and CRE debt securities including counterparty concentration risks, at December 31, 2019 (dollars in thousands): December 31, 2019 Loan Financings Commitment Amount UPB of Collateral Carrying Value of Collateral (1) Amounts Payable (2) Net Counterparty Exposure (3) Percent of Stockholders' Equity Days to Extended Maturity Goldman Sachs Bank $ 750,000 $ 288,032 $ 289,674 $ 45,900 $ 243,774 16.6 % 962 Wells Fargo Bank 750,000 593,742 594,832 395,039 199,793 13.6 839 Barclays 750,000 542,927 542,191 432,399 109,792 7.5 956 Morgan Stanley Bank(4) 500,000 519,638 518,048 395,356 122,692 8.4 N/A JP Morgan Chase Bank 400,000 300,677 297,248 218,744 78,504 5.4 1,328 US Bank 152,240 173,741 173,045 136,734 36,311 2.5 1,652 Subtotal / Weighted Average $ 3,302,240 $ 2,418,757 $ 2,415,038 $ 1,624,172 $ 790,866 1,062 CRE Debt Securities Financings Goldman Sachs Bank $ 81,143 $ 94,629 $ 108,414 $ 81,362 $ 27,052 1.8 % 12 JP Morgan 475,881 544,105 546,260 476,307 69,953 4.8 17 Wells Fargo 135,774 161,153 148,738 136,021 12,717 0.9 16 Royal Bank of Canada - — — — — — — Subtotal / Weighted Average $ 692,798 $ 799,887 $ 803,412 $ 693,690 $ 109,722 16 Total / Weighted Average - Loans and CRE Debt Securities $ 3,995,038 $ 3,218,644 $ 3,218,450 $ 2,317,862 $ 900,588 685 (1) Loan amounts shown in the table include interest receivable of $13.0 million and are net of premium, discount and origination fees of $16.7 million. CRE debt securities shown in the table include interest receivable of $2.3 million and are net of premium, discount, and unrealized gains of $1.2 million (2) Loan amounts shown in the table include interest payable of $2.5 million and do not reflect unamortized deferred financing fees of $10.3 million. CRE debt securities investments shown in the table include interest payable of $0.9 million. (3) Loan amounts represent the net carrying value of the commercial real estate assets sold under agreements to repurchase, including accrued interest plus any cash or assets on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest. CRE debt securities represent the net carrying value of 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) The secured revolving repurchase agreement provided by Morgan Stanley Bank is excluded from the “Days to Extended Maturity” column because it has no limit on the maximum number of permitted extensions, subject to satisfaction of certain conditions and approvals. For borrowing secured by CRE debt securities investments the extended maturity represents the sooner of the next maturity date of the CRE debt securities investment, the secured revolving repurchase agreement, or the roll-over date for the applicable underlying trade confirmation subsequent to December 31, 2019. The following table summarizes certain characteristics of the Company’s secured revolving repurchase agreements secured by commercial mortgage loans and CRE debt securities, including counterparty concentration risks, at December 31, 2018 (dollars in thousands): December 31, 2018 Loan Financings Commitment Amount UPB of Collateral Carrying Value of Collateral (1) Amounts Payable (2) Net Counterparty Exposure (3) Percent of Stockholders' Equity Days to Extended Maturity (4) Goldman Sachs Bank $ 750,000 $ 474,243 $ 472,797 $ 191,705 $ 281,092 21.2 % 231 Wells Fargo Bank 750,000 339,012 338,531 246,635 91,896 6.9 876 Morgan Stanley Bank (4) 500,000 244,936 245,932 183,901 62,031 4.7 N/A JP Morgan Chase Bank 400,000 254,026 253,145 185,892 67,253 5.1 1,693 US Bank 212,840 262,929 261,916 206,422 55,494 4.2 1,743 Subtotal / Weighted Average $ 2,612,840 $ 1,575,146 $ 1,572,321 $ 1,014,555 $ 557,766 1,125 CRE Debt Securities Financings Goldman Sachs Bank $ 100,000 $ 38,517 $ 36,414 $ 32,984 $ 3,430 0.3 % 2 Royal Bank of Canada 100,000 — — — — — — Subtotal / Weighted Average $ 200,000 $ 38,517 $ 36,414 $ 32,984 $ 3,430 2 Total / Weighted Average – Loans and CRE Debt Securities $ 2,812,840 $ 1,613,663 $ 1,608,735 $ 1,047,539 $ 561,196 1,083 (1) Loan amounts shown in the table include interest receivable of $14.5 million and are net of premium, discount and origination fees of $17.3 million. Amounts for CRE debt securities shown in the table include interest receivable of $0.1 million and are net of premium, discount, and unrealized gains of $2.2 million. (2) Loan amounts shown in the table include interest payable of $3.1 million and do not reflect unamortized deferred financing fees of $6.7 million. Amounts for CRE debt securities shown in the table include interest payable of $0.3 million. (3) Loan amounts represent the net carrying value of the commercial real estate assets sold under agreements to repurchase, including accrued interest plus any cash or assets on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest. Investment amounts for CRE debt securities represent 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) The secured revolving repurchase agreement provided by Morgan Stanley Bank is excluded from the “Days to Extended Maturity” column because it has no limit on the maximum number of permitted extensions, subject to satisfaction of certain conditions and approvals. CRE debt securities extended maturity represents the sooner of the next maturity date of the CRE debt securities investment, the secured revolving repurchase agreement, or the roll-over date for the applicable underlying trade confirmation, subsequent to December 31, 2018. The agreements include various covenants covering net worth, liquidity, recourse limitations, and debt coverage. The Company was in compliance with all covenants to the extent balances were outstanding as of December 31, 2019 and December 31, 2018. Term Loan Facility During 2019 the Company was the borrower under a term loan facility with an institutional asset manager as the lender. The Company terminated this term loan facility in October 2019. Accordingly, the Company had no loan investments pledged to the term loan facility and no outstanding borrowings at December 31, 2019. The agreement included various covenants covering net worth, liquidity, recourse limitations, and debt coverage. The Company was in compliance with all covenants as of December 31, 2018. Senior Secured and Secured Credit Agreements The Company has a senior secured credit agreement with Bank of America N.A with a maximum commitment amount of $500 million. The senior secured agreement has an initial maturity of September 29, 2020 and borrowings bear interest at LIBOR plus 1.75%. At December 31, 2019, $145.6 million was outstanding under the secured credit agreement. The Company has a secured revolving credit agreement (the “Credit Agreement”), as borrower, with Citibank, N.A. with aggregate secured borrowing capacity of up to $160.0 million, subject to borrowing base availability and certain other conditions, which the Company occasionally uses to finance originations or acquisitions of eligible loans on an interim basis until permanent financing is arranged. The Credit Agreement has an initial maturity date of July 12, 2020, and borrowings bear interest at an interest rate per annum equal to one-month LIBOR or the applicable base rate plus a margin of 2.25%. The initial advance rate on borrowings under the Credit Agreement with respect to individual pledged assets is 70% and may decline over the borrowing term of up to a 90-day period, after which borrowings against that respective asset must be repaid. At December 31, 2019, no amounts were outstanding on the Credit Agreement. The agreements include various covenants covering net worth, liquidity, recourse limitations, and debt coverage. The Company was in compliance with all covenants to the extent balances were outstanding as of December 31, 2019 and December 31, 2018. Asset-Specific Financings As of December 31, 2019 and December 31, 2018, the Company had one asset-specific financing arrangement, to finance certain of its lending activities. On April 2, 2019, the Company entered into an asset-specific financing with an institutional lender that is secured by one loan held for investment. The asset-specific financing does not provide for additional advances. The current initial maturity of this agreement is October 9, 2020. As of December 31, 2019, the asset-specific financing principal balance is $77.0 million and bears interest at LIBOR plus 4.15%. During 2019, the Company retired the BMO Harris asset-specific financing when the loan securing the facility was repaid. The asset specific financing arrangements included various covenants covering net worth, liquidity, recourse limitations, and debt coverage. The Company was in compliance with all covenants to the extent that balances were outstanding as of December 31, 2019 and December 31, 2018. |
Schedule of Maturities
Schedule of Maturities | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities | (7) Schedule of Maturities The future principal payments for the five years subsequent to December 31, 2019 and thereafter are as follows (in thousands): Collateralized loan obligations Secured revolving repurchase agreements Senior secured and secured credit agreements Asset- specific financing 2019 $ — $ — $ — $ — 2020 632,585 1,325,373 145,637 77,000 2021 600,650 503,126 — — 2022 554,541 485,918 — — 2023 32,284 — — — Thereafter — — — — Total $ 1,820,060 $ 2,314,417 $ 145,637 $ 77,000 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
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 December 31, 2019, the Company had $75.9 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, the assets and liabilities of TRTX 2018-FL1 (as of December 31, 2018), TRTX 2018-FL2 ( as of December 31, 2019 and December 31, 2018) and TRTX 2019-FL3 (as of December 31, 2019), and secured financing arrangements that are considered Level III fair value measurements that are not measured at fair value on a recurring basis, but are subject to fair value adjustments utilizing the fair value of the underlying collateral when there is evidence of impairment. The Company had no non-recurring fair value items as of December 31, 2019 and December 31, 2018. The following tables provide information about financial assets and liabilities not carried at fair value on a recurring basis in our consolidated balance sheet (dollars in thousands): December 31, 2019 Fair Value Carrying Value Level I Level II Level III Financial Assets Loans Held for Investment $ 4,980,389 — — $ 5,004,379 Financial Liabilities Term Loan Facility — — — — Collateralized Loan Obligations 1,806,428 — — 1,806,428 Secured Financing Arrangements 2,525,128 — — 2,525,128 December 31, 2018 Fair Value Carrying Value Level I Level II Level III Financial Assets Loans Held for Investment $ 4,293,787 — — $ 4,317,844 Financial Liabilities Term Loan Facility 113,504 — — 113,504 Collateralized Loan Obligations 1,509,930 — — 1,509,930 Secured Financing Arrangements 1,526,449 — — 1,526,449 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 years ended December 31, 2019 and 2018, respectively. At December 31, 2019 and December 31, 2018, the estimated fair value of loans held for investment was $5.00 billion and $4.32 billion, respectively. The average gross spread at December 31, 2019 and December 31, 2018 was 3.48% and 3.90%, respectively. The weighted average years to maturity at December 31, 2019 and December 31, 2018 was 3.8 years and 3.9 years, respectively, assuming full extension of all loans. At December 31, 2019 and December 31, 2018, the carrying value of the secured financing agreements approximates fair value as current borrowing spreads reflect market terms. At December 31, 2019 and December 31, 2018, the carrying value of the assets and liabilities of TRTX 2018-FL1, TRTX 2018-FL2 and TRTX-FL3 approximates fair value as current borrowing spreads reflect market terms, to the extent balances were outstanding at each measurement date. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (9) Income Taxes The Company indirectly owns 100% of the equity of multiple taxable REIT subsidiaries (collectively “TRSs”), including certain of its TRTX 2018-FL1, TRTX 2018-FL2 and TRTX 2019-FL3 subsidiaries. Taxable REIT subsidiaries are subject to applicable U.S. federal, state, local and foreign income tax on their taxable income. In addition, as a REIT, the Company also may be subject to a 100% excise tax on certain transactions between it and its TRSs that are not conducted on an arm’s-length basis. The Company files income tax returns in the United States federal jurisdiction as well as various state and local jurisdictions. The filings are subject to normal reviews by regulatory agencies until the related statute of limitations expires, with open tax years for all years since the Company’s formation in 2014. The years open to examination generally range from 2016 to present. ASC 740 also prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company has analyzed its various federal and state filing positions and believes that its income tax filing positions and deductions are well documented and supported. As of December 31, 2019, and December 31, 2018, based on the Company’s evaluation, there is no reserve for any uncertain income tax positions. The Company’s policy is to classify interest and penalties associated with underpayment of U.S. federal and state income taxes, if any, as a component of general and administrative expense on its consolidated statements of income and comprehensive income. For the years ended December 31, 2019 and 2018, the Company did not have interest or penalties associated with the underpayment of any income taxes. The following table details the income tax treatment for the Company’s common stock and Class A common stock dividends declared as follows (dollars in thousands): Year Ended December 31, 2019 2018 2017 Ordinary income dividends $ 1.72 $ 1.70 $ 1.52 Capital gain dividends - 0.01 0.04 Total dividends (1) $ 1.72 $ 1.71 $ 1.56 (1) Dividend per share amounts reflect the impact of the common stock and Class A common stock dividend paid upon the completion of our initial public offering. At December 31, 2019, December 31, 2018, and December 31, 2017, the Company’s effective tax rate was 0.5%, 0.3%, and 0.2%, respectively. As of December 31, 2019 and December 31, 2018, no deferred income tax assets or liabilities were recorded for the Company’s taxable REIT subsidiaries operating activities. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (10) Related Party Transactions Management Agreement periodic distribution or have other debt characteristics will not constitute equity securities and will not be included in “Equity” for the purpose of calculating incentive compensation. Instead, the aggregate distribution amount that accrues to such equity securities during the calendar quarter of such calculation will be subtracted from Core Earnings, before incentive compensation for purposes of calculating incentive compensation, unless such distribution is otherwise excluded from Core Earnings. “Core Earnings” means the net income (loss) attributable to the holders of the Company’s common stock and Class A common stock and, without duplication, the holders of the Company’s subsidiaries’ equity securities (other than the Company or any of the Company’s subsidiaries), computed in accordance with GAAP, including realized gains and losses not otherwise included in net income (loss), and excluding (i) non-cash equity compensation expense, (ii) the Incentive Compensation, (iii) depreciation and amortization, (iv) any unrealized gains or losses 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. 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 year ended December 31, 2017, the management fee and incentive management fee were calculated under both the pre-IPO and post-IPO Management Agreements. 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. The 2014-CLO was terminated in August 2018. As of December 31, 2018 and December 31, 2017, there were no loans outstanding in the 2014-CLO. Management Fees Incurred and Paid for the years ended December 31, 2019, 2018 and 2017 For the fiscal years ended December 31, 2019, December 31, 2018, and December 31, 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): Year Ended December 31, 2019 2018 2017 Post-IPO Management Agreement fees incurred $ 28,717 $ 23,748 $ 8,636 Post-IPO Management Agreement fees paid 27,565 22,818 1,079 Pre-IPO Management Agreement and Collateral Management fees incurred — — $ 10,023 Pre-IPO Management Agreement and Collateral Management fees paid — — 15,311 Management fees, incentive management fees, and collateral management fees included in “Payable to Affiliates” on the consolidated balance sheets at December 31, 2019 and December 31, 2018 are $7.3 million and $6.1 million, respectively. Termination Fee A termination fee would be due to the Manager upon termination of the Management Agreement by the Company absent a cause event. The termination fee would also be payable to the Manager upon termination of the Management Agreement by the Manager if the Company materially breaches the Management Agreement. The termination fee is equal to three times the sum of (x) the average annual base management fee and (y) the average annual incentive compensation earned by the Manager, in each case during the 24-month period immediately preceding the most recently completed calendar quarter prior to the date of termination. Other Related Party Transactions The Manager or its affiliates is responsible for the expenses related to the personnel of the Manager and its affiliates who provide services to the Company. However, the Company does reimburse the Manager for agreed-upon amounts based upon the Company’s allocable share of the compensation (including, without limitation, annual base salary, bonus, any related withholding taxes and employee benefits) paid to (1) the Manager’s personnel serving as the Company’s chief financial officer based on the percentage of his or her time spent managing the Company’s affairs and (2) other corporate finance, tax, accounting, internal audit, legal risk management, operations, compliance and other non-investment personnel of the Manager or its affiliates who spend all or a portion of their time managing the Company’s affairs, based on the percentage of time devoted by such personnel to the Company’s and the Company’s subsidiaries’ affairs. For the fiscal years ended December 31, 2019, December 31, 2018, and December 31, 2017, the Manager and Company determined that $1.0 million, $1.2 million, and $1.0 million, respectively, of expenses were subject to reimbursement by the Company for services rendered on its behalf by the Manager and its affiliates. The Company is required to pay the Manager or its affiliates for documented costs and expenses incurred with third parties by the Manager or its affiliates on behalf of the Company, subject to the Company’s review and approval of such costs and expenses. The Company’s obligation to pay for costs and expenses incurred on its behalf is not subject to a dollar limitation. As of December 31, 2019, $2.3 million remained outstanding and payable to the Manager or its affiliates for third party expenses that were incurred on behalf of the Company. As of December 31, 2018 there were no amounts outstanding and payable to the Manager. All expenses due and payable to the Manager are reflected in the respective expense category of the consolidated statements of income and comprehensive income or consolidated balance sheets based on the nature of the item. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2019 | |
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 the Manager, qualify as participating securities. These restricted shares have the same rights as the Company’s other shares of common stock and Class A common stock, including participating in any dividends, and therefore have been included in the Company’s basic and diluted earnings per share calculation. For the fiscal years ended December 31, 2019 and December 31, 2018, $0.3 million and $0.2 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 December 31, 2019, 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): Year Ended December 31, 2019 2018 2017 Net Income Attributable to TPG RE Finance Trust, Inc. $ 126,298 $ 106,938 $ 94,336 Participating Securities' Share in Earnings (676 ) (194 ) — Net Income Attributable to Common Stockholders $ 125,622 $ 106,744 $ 94,336 Weighted Average Common Shares Outstanding, Basic and Diluted 72,743,171 63,034,806 54,194,596 Per Common Share Amount, Basic and Diluted $ 1.73 $ 1.70 $ 1.74 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders Equity Note [Abstract] | |
Stockholders' Equity | (12) Stockholders’ Equity Common Stock Issuance On March 7, 2019, the Company and the Manager entered into an equity distribution agreement with each of Citigroup Global Markets Inc., J.P. Morgan Securities LLC, JMP Securities LLC, Wells Fargo Securities, LLC and the Company’s affiliate, TPG Capital BD, LLC (each a “Sales Agent” and, collectively, the “Sales Agents”) relating to the issuance and sale by the Company of shares of its common stock, $0.001 par value per share, pursuant to a continuous offering program. In accordance with the terms of the equity distribution agreement, the Company may, at its discretion and from time to time, offer and sell shares of its common stock having an aggregate gross sales price of up to $125.0 million through the Sales Agents, each acting as the Company’s agent. The offering of shares of the Company’s common stock pursuant to the equity distribution agreement will terminate upon the earlier of (1) the sale of shares of the Company’s common stock subject to the equity distribution agreement having an aggregate gross sales price of $125.0 million and (2) the termination of the equity distribution agreement by the Sales Agents or the Company at any time as set forth in the equity distribution agreement. Each Sales Agent will be entitled to commissions in an amount not to exceed 1.75% of the gross sales prices of shares of the Company’s agent. For year ended December 31, 2019, the Company sold 1.9 million shares of common stock at a weighted average price per share of $20.42 and gross proceeds of $38.0 million. The Company paid commissions totaling $0.5 million. The Company used the proceeds from the offering to originate commercial real estate loans and acquire CRE debt securities. In March and April 2019, the Company completed a common stock offering of 6.9 million shares at a price to the Company of $19.80 per share, generating net proceeds of $136.5 million, after underwriting discounts and offering costs. The Manager reimbursed offering costs of $0.3 million. The Company used net proceeds from the offering to originate commercial real estate loans and acquire CRE debt securities. On August 10, 2018, the Company completed a common stock offering of 7.0 million shares at a net price to the Company of $19.82 per share generating net proceeds, of $138.7 million, after underwriting discounts. Proceeds were used repay certain borrowings under its secured revolving repurchase agreements, and to originate or acquire commercial mortgage loans consistent with its investment strategy and investment guidelines. The Manager reimbursed offering costs of $0.7 million. Initial Public Offering On July 25, 2017, the Company completed an initial public offering of 11.0 million shares of common stock at a price of $20.00 per share for net proceeds of $199.4 million, after deducting underwriting discounts of $13.2 million and offering expenses payable by us of approximately $7.4 million. On August 17, 2017, the underwriters of the Company’s initial public offering partially exercised their option to purchase up to an additional 1,650,000 shares of common stock. On August 22, 2017, the Company issued and sold, and the underwriters purchased, 650,000 shares of common stock for net proceeds of $12.2 million, after deducting underwriting discounts of $0.8 million. The Company used the net proceeds from the offering to originate commercial mortgage loans consistent with its investment strategy and investment guidelines. S 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, as the Company’s agent, to buy in the open market up to $35.0 million in shares of the Company’s common stock in the aggregate during the period beginning on or about August 21, 2017. On August 1, 2018, the Company’s Board of Directors authorized the Company to extend the repurchase period for the remaining capital committed to the 10b5-1 Purchase Plan to February 28, 2019. No other changes to the terms of the 10b5-1 Purchase Plan were authorized. The 10b5-1 Purchase Plan required Goldman Sachs & Co. LLC to purchase for the Company shares of the Company’s common stock when the market price per share is below the threshold price specified in the 10b5-1 Purchase Plan which is based on the Company’s book value per common share. During the three months ended March 31, 2019, the Company repurchased 2,324 shares of common stock, at a weighted average price of $18.27 per share, for total consideration (including commissions and related fees) of $0.4 million. The 10b5-1 Purchase Plan expired by its terms on February 28, 2019. Issuance of Sub-REIT Preferred Stock In January 2019, a subsidiary of the Company issued 625 shares of Series A preferred stock of which 500 shares were retained by the Company and 125 shares were sold to third party investors for proceeds of $0.1 million. The 500 preferred shares of Series A preferred stock retained by the Company are eliminated in the Company’s consolidated statements of changes in equity. Redemption of Series A Preferred Stock In February 2018, the Company’s previously issued shares of Series A preferred stock were redeemed for $0.1 million. Dividends The Company accrues dividends upon the approval by the Company’s Board of Directors. Upon the approval of the Company’s Board of Directors, 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. On December 17, 2019, the Company’s Board of Directors declared a dividend for the fourth quarter of 2019 in the amount of $0.43 per share of common stock and Class A Common stock, or $32.8 million in the aggregate, which dividend was payable on January 24, 2020 to holders of record of our common stock as of December 27, 2019. For the years ended December 31, 2019 and December 31, 2018, common and Class A common stock dividends in the amount of $128.4 million and $109.1 million, respectively, were approved. As of December 31, 2019, and December 31, 2018, $32.8 million and $29.0 million, respectively, remain unpaid and are reflected in dividends payable on the Company’s consolidated balance sheets. |
Share-based Incentive Plan
Share-based Incentive Plan | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-based Incentive Plan | ( 13) Share-Based Incentive Plan The Company does not have any employees as it is externally managed by its Manager. However, as of December 31, 2019, certain individuals employed by an affiliate of the Manager and certain members of the Company’s Board of Directors were compensated in part through the issuance of share-based instruments. The Company’s Board of Directors has adopted, and the Company’s stockholders have approved, the TPG RE Finance Trust, Inc. 2017 Equity Incentive Plan (the “Incentive Plan”). The Incentive Plan provides for the grant of equity-based awards to directors, officers, employees (if any) and consultants of the Company and its affiliates, and the members, officers, directors, employees and consultants of our Manager or its affiliates, as well as to our Manager and other entities that provide services to us and our affiliates and the employees of such entities. The total number of shares of common stock or long term incentive plan (“LTIP”) units that may be awarded under the Incentive Plan is 4,600,463. The Incentive Plan will automatically expire on the tenth anniversary of its effective date, unless terminated earlier by the Company’s Board of Directors. No equity grants were awarded in conjunction with the Company’s initial public offering. The following table details the outstanding shares of common stock and the weighted-average grant date fair value per share for shares granted under the Incentive Plan, as of December 31, 2019: Common Stock Weighted- Average Grant Date Fair Value Per Share Balance as of December 31, 2016 — $ — Granted 75,360 19.44 Vested — — Forfeited — — Balance as of December 31, 2017 75,360 $ 19.44 Granted 278,540 18.84 Vested (19,352 ) 19.44 Forfeited (579 ) 19.44 Balance as of December 31, 2018 333,969 $ 18.94 Granted 396,410 20.52 Vested (100,305 ) 19.02 Forfeited (6,068 ) 18.78 Balance as of December 31, 2019 624,006 $ 19.93 Generally, the shares vest in installments over a four-year Vesting Year Shares of Common Stock 2020 229,521 2021 229,522 2022 102,389 2023 62,574 624,006 As of December 31, 2019, total unrecognized compensation cost relating to unvested share-based compensation arrangements was $11.7 million. This cost is expected to be recognized over a weighted average period of 1.7 years from December 31, 2019. For the fiscal years ended December 31, 2019, December 31, 2018 and December 31, 2017, the Company recognized $2.6 million, $0.7 million and $0.3 thousand, respectively, of share-based compensation expense as general and administrative expense in the consolidated statements of income and comprehensive income. During the year ended December 31, 2019, the Company issued deferred stock units to the non-management members of the Company’s Board of Directors. The deferred stock units were fully vested on the grant date and accrue dividends that are paid-in-kind on a quarterly basis. On May 14, 2019, the Company issued, and the non-management members of the Company’s Board of Directors received, deferred stock units with an aggregate fair value of $0.3 million, which is included in share-based compensation expense as general and administrative expense in the consolidated statements of income and comprehensive income. During the year ended December 31, 2019, the Company accrued 420 shares of common stock for dividends that are paid-in kind to non-management members of its Board of Directors related to the dividend payable to holders of record of our common stock and Class A common stock as of December 27, 2019. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (14) Commitments and Contingencies Unfunded Commitments As of December 31, 2019, and December 31, 2018, the Company had $630.6 million and $634.2 million, respectively, of unfunded commitments related to loans held for investment. These commitments are not reflected on the consolidated balance sheets. Litigation From time to time, the Company may be involved in various claims and legal actions arising in the ordinary course of business. The Company establishes an accrued liability for loss contingencies when a settlement arising from a legal proceeding is both probable and reasonably estimable. If a legal matter is not probable and reasonably estimable, no such liability is recorded. Examples of this include (i) early stages of a legal proceeding, (ii) damages that are unspecified or cannot be determined, (iii) discovery has not started or is incomplete or (iv) there is uncertainty as to the outcome of pending appeals or motions. If these items exist, an estimated range of potential loss cannot be determined and as such the Company does not record an accrued liability. As of December 31, 2019, and December 31, 2018, 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 | 12 Months Ended |
Dec. 31, 2019 | |
Risks And Uncertainties [Abstract] | |
Concentration of Credit Risk | (15) Concentration of Credit Risk Property Type A summary of the loan portfolio by property type as of December 31, 2019 and December 31, 2018 based on total loan commitment and current unpaid principal balance (“UPB”) is as follows (dollars in thousands): As of December 31, 2019 Property Type Loan Commitment Unfunded Commitment % of Loan Commitment Loan UPB % of Loan UPB Office $ 2,925,749 $ 438,800 52.0 % $ 2,486,949 49.9 % Multifamily 1,104,946 69,061 19.6 1,035,885 20.7 Hotel 752,293 40,088 13.4 712,205 14.2 Mixed-Use 604,993 78,835 10.7 526,158 10.5 Condominium 95,784 1,524 1.7 94,260 1.9 Retail 33,000 2,281 0.6 30,719 0.6 Other 112,000 — 2.0 112,000 2.2 Total $ 5,628,765 $ 630,589 100.0 % $ 4,998,176 100.0 % As of December 31, 2018 Property Type Loan Commitment Unfunded Commitment % of Loan Commitment Loan UPB % of Loan UPB Office $ 1,898,511 $ 316,510 38.5 % $ 1,582,001 36.8 % Multifamily 1,247,860 131,177 25.2 1,116,683 25.9 Mixed Use 838,200 114,748 16.9 723,452 16.8 Hotel 508,450 10,896 10.3 497,554 11.5 Retail 233,555 50,247 4.7 183,308 4.2 Condominium 154,673 10,580 3.1 144,093 3.3 Industrial 66,500 — 1.3 66,500 1.5 Total $ 4,947,749 $ 634,158 100.0 % $ 4,313,591 100.0 % 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 unpaid principal balance is as follows (dollars in thousands): December 31, 2019 Geographic Region Loan Commitment Unfunded Commitment % of Loan Commitment Loan UPB % of Loan UPB East $ 2,182,659 $ 214,938 38.7 % $ 1,967,721 39.4 % South 1,342,794 124,939 23.9 1,217,855 24.4 West 1,397,431 201,690 24.8 1,195,741 23.9 Midwest 482,804 83,178 8.6 399,626 8.0 Various 223,077 5,844 4.0 217,233 4.3 Total $ 5,628,765 $ 630,589 100.0 % $ 4,998,176 100.0 % December 31, 2018 Geographic Region Loan Commitment Unfunded Commitment % of Loan Commitment Loan UPB % of Loan UPB East $ 2,084,807 $ 170,131 42.1 % $ 1,914,676 44.4 % South 1,525,173 270,933 30.8 1,254,240 29.1 West 760,416 100,422 15.4 659,994 15.3 Midwest 577,353 92,672 11.7 484,681 11.2 Total $ 4,947,749 $ 634,158 100.0 % $ 4,313,591 100.0 % Category A summary of the loan portfolio by category as of December 31, 2019 and December 31, 2018 based on total loan commitment and current unpaid principal balance is as follows (dollars in thousands): December 31, 2019 Loan Category Loan Commitment Unfunded Commitment % of Loan Commitment Loan UPB % of Loan UPB Bridge $ 2,001,962 $ 49,057 35.6 % $ 1,952,905 39.1 % Light Transitional 1,890,762 219,138 33.6 1,671,624 33.4 Moderate Transitional 1,701,041 347,394 30.2 1,353,647 27.1 Construction 35,000 15,000 0.6 20,000 0.4 Total $ 5,628,765 $ 630,589 100.0 % $ 4,998,176 100.0 % December 31, 2018 Loan Category Loan Commitment Unfunded Commitment % of Loan Commitment Loan UPB % of Loan UPB Bridge $ 2,414,456 $ 199,397 48.8 % $ 2,215,059 51.3 % Light Transitional 1,513,227 212,290 30.6 1,300,937 30.2 Moderate Transitional 1,020,066 222,471 20.6 797,595 18.5 Total $ 4,947,749 $ 634,158 100.0 % $ 4,313,591 100.0 % Loan commitments represent principal commitments made by the Company at December 31, 2019 and December 31, 2018, respectively. |
Summary of Quarterly Results of
Summary of Quarterly Results of Operations (unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Results of Operations (unaudited) | (16) Summary of Quarterly Results of Operations (unaudited) The following is a summary of the unaudited quarterly results of operations for the years ended December 31, 2019 and December 31, 2018 (dollars in thousands except per share data): March 31 June 30 September 30 December 31 2019 Net interest income and total other revenue $ 37,656 $ 42,240 $ 44,648 $ 42,183 Net income attributable to TPG RE Finance Trust, Inc. $ 28,409 $ 31,965 $ 33,022 $ 32,902 Basic and diluted $ 0.42 $ 0.43 $ 0.44 $ 0.44 2018 Net interest income and total other revenue $ 33,733 $ 35,048 $ 35,511 $ 36,584 Net income attributable to TPG RE Finance Trust, Inc. $ 25,111 $ 26,438 $ 26,824 $ 28,565 Basic and diluted $ 0.42 $ 0.44 $ 0.42 $ 0.43 Basic and diluted earnings per share are computed independently based on the weighted-average shares of Class A common stock and common stock outstanding for each period. Accordingly, the sum of the quarterly earnings per share amounts may not agree to the total for the year. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | (17) Subsequent Events The following events occurred subsequent to December 31, 2019: Senior Mortgage Loan Originations From January 1, 2020 through February 18, 2020, the Company closed, or is in the process of closing, eight first mortgage loans, totaling $857.7 million of loan commitments, with an expected initial funding amount of $737.1 million. These loans were funded, or will be funded at closing, with a combination of cash-on-hand and borrowings. Investments in CRE Debt Securities From January 1, 2020 through February 18, 2020, the Company acquired or committed to acquire 10 separate CRE debt securities investments with an aggregate face value of $169.0 million. These investments were funded, or will be funded at settlement, with a combination of cash-on-hand and borrowings. Cash Dividend On January 24, 2020, the Company paid a cash dividend on its common stock and Class A common stock, to stockholders of record as of December 27, 2019, of $0.43 per share, or $32.8 million. Conversion of Class A Shares As of December 31, 2019, there were an aggregate of 1,136,665 shares of the Company’s Class A common stock, $0.001 par value per share (the “Class A Shares”), outstanding. The preferences, rights, voting powers, restrictions, limitations as to dividends and other distributions, qualifications and terms and conditions of redemption of the Company’s Class A common stock are identical to the Company’s 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 Class A Share is convertible at any time or from time to time, at the option of the holder, for one fully paid and nonassessable share of the Company’s common stock. The Company’s Class A common stock votes together with the Company’s common stock as a single class. Between January 22, 2020 and January 24, 2020, the Company received requests to convert all of the Class A Shares into shares of the Company’s common stock. Accordingly, the Class A Shares were retired and returned to the authorized but unissued shares of Class A common stock of the Company, and the holders of the Class A Shares were issued an aggregate of 1,136,665 shares of the Company’s common stock. As of the date of this Form 10-K, there are no shares of the Company’s Class A common stock outstanding. |
Schedule IV - Mortgage Loans on
Schedule IV - Mortgage Loans on Real Estate | 12 Months Ended |
Dec. 31, 2019 | |
Mortgage Loans On Real Estate [Abstract] | |
Schedule IV - Mortgage Loans on Real Estate | Schedule IV - Mortgage Loans on Real Estate As of December 31, 2019 (Dollars in Thousands) Type of Loan/Borrower Senior Mortgage Loans (1) Description / Location Interest Payment Rates Extended Maturity Date (2) Periodic Payment Terms (3) Prior Liens (4) Unpaid Principal Balance Carrying Amount of Loans (5) Senior Loans in excess of 3% of the carrying amount of total loans Borrower A Office / NY L+2.9% 2024 I/O $ — $ 316,127 $ 315,046 Borrower B Office / GA L+3.4% 2024 I/O — 167,791 166,324 Borrower C Office / MI L+3.6% 2024 I/O — 151,912 150,866 Borrower D Multifamily / FL L+2.9% 2024 I/O — 198,383 198,383 Borrower E Office / NY L+2.9% 2024 I/O — 165,702 164,153 Borrower F Office / CA L+3.0% 2024 I/O — 168,800 167,986 Borrower G Office / PA L+2.7% 2023 I/O — 182,882 182,882 Borrower H Hotel / NC L+3.8% 2022 I/O — 180,000 180,000 Borrower I Office / PA L+4.3% 2022 I/O — 165,148 164,706 Borrower J Multifamily / NJ L+3.8% 2023 I/O — 160,018 159,698 Senior Loans less than 3% of the carrying amount of total loans Senior Loan Office / Diversified Floating L+2.5% - 5.1% 2022 - 2025 IO — $ 1,168,587 $ 1,164,216 Senior Loan Multifamily / Diversified Floating L+2.7% - 4.9% 2020 - 2025 IO — 677,484 673,997 Senior Loan Mixed-Use / Diversified Floating L+2.6% - 3.9% 2021 - 2024 IO — 526,158 525,366 Senior Loan Hotel / Diversified Floating L+3.0% - 4.7% 2022 - 2024 IO — 512,205 511,030 Senior Loan Land / NV Floating L+6.8% - 6.8% 2021 IO — 112,000 111,436 Senior Loan Condominium / Diversified Floating L+4.1% - 4.7% 2020 - 2021 IO — 94,260 94,025 Senior Loan Retail / CA Floating L+3.7% - 3.7% 2023 IO — 30,719 30,563 Total senior loans $ — $ 4,978,176 $ 4,960,677 Subordinate loans (6) Subordinate loans less than 3% of the carrying amount of total loans Senior Loan Hotel / CA Floating L+10.3% 2025 IO — 20,000 19,712 Total subordinate loans $ — $ 20,000 $ 19,712 Total Loans $ — $ 4,998,176 $ 4,980,389 (1) Includes senior mortgage loans, related contiguous subordinate loans, and pari passu (2) Extended maturity date assumes all extension options are exercised. (3) I/O = interest only, P/I = principal and interest. (4) Represents only third party liens. (5) The aggregate tax basis of the loans is $5.0 billion as of December 31, 2019. (6) Includes subordinate interests in mortgages and mezzanine loans. 1. Reconciliation of Mortgage Loans on Real Estate: The following table reconciles activity regarding mortgage loans on real estate for the years ended: 2019 2018 2017 Balance at January 1, $ 4,293,787 $ 3,175,672 $ 2,449,990 Additions during period: Loans originated 2,341,692 2,071,391 1,596,531 Additional fundings 268,356 258,308 315,409 Amortization of deferred fees and expenses 16,345 16,907 19,381 Deductions during period: Collection of principal (1) (1,939,791 ) (1,228,491 ) (1,202,776 ) Amortization of premium — — (2,863 ) Balance at December 31, $ 4,980,389 $ 4,293,787 $ 3,175,672 (1) Includes loan repayments and sales |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements include the Company’s accounts, consolidated variable interest entities for which the Company is the primary beneficiary, and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated. |
Use of Estimates | 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 (see Note 5 for details). |
Revenue Recognition | Revenue Recognition Interest income on loans is accrued using the interest method based on the contractual terms of the loan, adjusted for 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 the loan on non-accrual status when: (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. Based on the Company’s judgment as to the collectability of principal, a loan on non-accrual status is either accounted for on a cash basis, where interest income is recognized only upon receipt of cash for principal and interest payments, or on a cost-recovery basis, where all cash receipts reduce the loan’s carrying value, and interest income is only recorded when such carrying value has been fully recovered. During the fiscal years ended December 31, 2019 and December 31, 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 loan loss allowances, if any. 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, a loan loss 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 securing the impaired loan, less estimated costs to sell such collateral, if recovery of the Company’s investment is expected solely from the sale of such collateral. As part of the quarterly impairment review, the Company evaluates the risk of each loan and assigns a risk rating based on a variety of factors, grouped as follows to include, among other factors: (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, the Company’s loans are rated “1” through “5,” from least risk to greatest risk, respectively, which ratings are defined as follows: 1- Outperform—Exceeds performance metrics (for example, technical milestones, occupancy, rents, net operating income) included in original or current credit underwriting and business plan; 2- Meets or Exceeds Expectations—Collateral performance meets or exceeds substantially all performance metrics included in original or current underwriting / business plan; 3- Satisfactory—Collateral performance meets or is on track to meet underwriting; business plan is met or can reasonably be achieved; 4- Underperformance—Collateral performance falls short of original underwriting, material differences exist from business plan, or both; technical milestones have been missed; defaults may exist, or may soon occur absent material improvement; and 5- 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. The Company generally assigns a risk rating of “3” to all newly originated loan investments during the most recent quarter, except in the case of specific circumstances warranting an exception. Since Inception, the Company has not recognized any impairments on its loan portfolio and has not recorded any loan loss allowances against any of the loans in its portfolio. The Company’s 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 Real Estate-Related Debt Instruments | Commercial Real Estate-Related Debt Instruments The Company acquires CRE debt securities primarily for cash management and investment purposes. The Company designates CRE debt securities as available-for-sale on the acquisition date. CRE debt securities that are classified as available-for-sale are recorded at fair value through other comprehensive income or loss in the Company’s consolidated financial statements. The Company recognizes interest income on its CRE debt securities using the interest method, or on a straight line basis when it approximates the interest method, with any premium or discount amortized or accreted into interest income based on the respective outstanding principal balance and corresponding contractual term of the CRE debt security. The Company uses a specific identification method when determining the cost of a CRE debt security sold and the amount of unrealized gain or loss reclassified from accumulated other comprehensive income or loss into earnings. Unrealized losses on CRE debt 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 CRE debt securities using secured revolving repurchase agreements, asset-specific financing arrangements, senior secured and secured credit agreements, collateralized loan obligations, and a term loan facility. The related borrowings are recorded as separate liabilities on the Company’s consolidated balance sheets. Interest income earned on the investments and interest expense incurred on the related borrowings are reported separately on the Company’s consolidated statements of income and comprehensive income. In certain instances, the Company creates structural leverage through the co-origination or non-recourse syndication of a senior loan interest to a third party. For all such syndications the Company has completed through December 31, 2019, the Company 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. As of December 31, 2018, the Company revised its “Note Payable” naming convention in its consolidated balance sheet to “Asset-Specific Financings”. No amounts reported in prior periods were reclassified between financial statement line items and there was no impact to the Company’s financial statements resulting from this change in naming convention. |
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, TPG RE Finance Trust Management, L.P., a Delaware limited partnership (the “Manager”), and certain individuals or entities affiliated with 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. See Note 17 to the Consolidated Financial Statements for details regarding the conversion of Class A common stock subsequent to December 31, 2019. 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. Deferred stock units granted to the Company’s Board of Directors fully vest on the grant date and accrue dividends that are paid-in kind on a quarterly basis. Compensation expense is recognized in net income on a straight-line basis over the applicable award vesting period. 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 obligations and secured financing arrangements on the Company’s consolidated balance sheets. These costs are amortized in interest expense using the interest method or on a straight line basis when it approximates the interest method, over the shorter of the initial maturity of the obligations or financing arrangement. |
Cash and Cash Equivalents | Cash and Cash Equivalents |
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 or if a transaction does not close. |
Accounts Receivable from Servicer/Trustee | Accounts Receivable from Servicer/Trustee Accounts receivable from Servicer/Trustee represents cash proceeds from loan and CRE debt securities activities that have not been remitted to the Company based on servicing agreements in place. Amounts are generally held by the Servicer/Trustee for less than 30 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 existing “incurred loss” model with an “expected loss” model for instruments measured at amortized cost, and require entities to record allowances for available-for-sale (“AFS”) debt securities rather than reduce the carrying amount, as is required today under the other-than-temporary impairment model. It also simplifies the accounting model for purchased credit-impaired (“PCI”) debt securities and loans. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019 and will be adopted through a cumulative-effect adjustment to retained earnings as of January 1, 2020. The Company implemented its previously disclosed plan for Current Expected Credit Losses (“CECL”), including running parallel production of the existing expected loss approach with the CECL approach during the second half of 2019. Key project development activities for 2019 included determination of relevant historical data sets for use in estimating expected credit losses, selection of a credit loss model, development of a framework for compiling historical and projected loan-level information, completion and documentation of policies and procedures, additional disclosures, and controls. A control framework for governance, data, forecast, and model controls was designed to support the CECL process, which requires significant judgment by management regarding many factors, including but not limited to: the appropriate historical loan loss reference data; the timing of loan fundings and repayments; the current credit quality of loans and operating performance of loan collateral; our expectations of future loan and collateral performance; and macroeconomic conditions. The CECL reserve required under ASU 2016-13 is a valuation account that is deducted from the amortized cost basis of related loans and AFS debt securities on our consolidated balance sheets, and which will reduce our stockholders’ equity. The initial CECL reserve recorded on January 1, 2020 will be reflected as a direct charge against retained earnings; however, future net changes to the CECL reserve will be recognized in net income on our consolidated statement of operations. ASU 2016-13 does not require use of a particular method for determining the CECL reserve, but it does specifiy the allowance should be based on relevant information about past events, including historical loss experience, composition of the current loan and AFS debt securities portfolio, current conditions in the real estate and capital markets, and reasonable and supportable forecasts for the expected term of each loan. Additionally, but for a few narrow exceptions, ASU 2016-13 requires that all financial instruments subject to CECL incur some amount of valuation reserve to reflect the underlying principle of the CECL model that all loans, debt securities and similar financial assets bear some inherent risk of loss regardless of credit quality, amount of subordinate capital, or other risk mitigants. In the absence of any Company history of valuation reserves or realized loan losses since our inception in 2014, the Company elected to utilize a widely-used analytical model incorporating a loss-given-default methodology and loan performance data for over 100,000 commercial real estate loans dating back to 1998. The Company expects to utilize this loan data set, or variants of it, unless and until the Company develops its own history of realized losses. The Company selected for use in its CECL estimate a macroeconomic forecast that calls for stable economic activity during the reasonable forecast period. The Company determined that the key variables driving its CECL loss estimate are debt service coverage ratio and LTV ratio. Other notable variables include property type, property occupancy, and loan vintage. In certain instances, for loans with unique risk characteristics, we may elect to employ different methods of loss estimation that also conform with ASU 2016-13 and related guidance, although no such alternate method was used to determine our initial CECL estimate. Upon adoption of ASU 2016-13 on January 1, 2020, we expect to record an initial CECL reserve of approximately $18.5 million, or $0.24 per share, which is 0.33% of the aggregate commitment amount of the Company’s loan portfolio at December 31, 2019. The Company does not expect the impact of CECL on its portfolio of AFS debt securities to be material. At December 31, 2019, our portfolio of AFS debt securities had an aggregate estimated fair market value that exceeded its amortized cost basis by $1.1 million. Recently Adopted Accounting Pronouncements 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. On July 1, 2018, the Company adopted these updates for share-based compensation payments made to certain individuals employed by an affiliate of the Manager. The Company’s adoption of the share-based compensation ASU on July 1, 2018 did not have a material impact on the Company’s consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 is a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. In August 2015, the FASB issued an update (“ASU 2015-14”) to Topic 606, Deferral of the Effective Date, which deferred the adoption of ASU 2014-09 to interim and annual reporting periods in fiscal years that begin after December 15, 2017. In March 2016, the FASB issued an update (“ASU 2016-08”) to Topic 606, Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarifies the implementation guidance on principal versus agent considerations in the new revenue recognition standard pursuant to ASU 2014-09. In April 2016, the FASB issued an update (“ASU 2016-10”) to Topic 606, Identifying Performance Obligations and Licensing, which clarifies guidance related to identifying performance obligations and licensing implementation guidance contained in ASU 2014-09. In May 2016, the FASB issued an update (“ASU 2016-12”) to Topic 606, Narrow-Scope Improvements and Practical Expedients, which amends certain aspects of the new revenue recognition standard pursuant to ASU 2014-09. In adopting ASU 2014-09, companies may use either a full retrospective or a modified retrospective approach. Additionally, this guidance requires improved disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted the revenue recognition standard updates on January 1, 2018. The Company’s adoption of the revenue recognition standard updates on January 1, 2018 did not have a material impact on the Company’s consolidated financial statements. |
Loans Held for Investment (Tabl
Loans Held for Investment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Mortgage Loan Investment Portfolio | The following tables present an overview of the mortgage loan investment portfolio as of December 31, 2019 and December 31, 2018 (dollars in thousands): December 31, 2019 Loans Receivable Outstanding Principal Unamortized Premium (Discount), Loan Origination Fees, net Carrying Amount Senior loans $ 4,978,176 $ (17,500 ) $ 4,960,676 Subordinated and mezzanine loans 20,000 (287 ) 19,713 Subtotal before allowance 4,998,176 (17,787 ) 4,980,389 Allowance for loan losses — — — Total $ 4,998,176 $ (17,787 ) $ 4,980,389 December 31, 2018 Loans Receivable Outstanding Principal Unamortized Premium (Discount), Loan Origination Fees, net Carrying Amount Senior loans $ 4,313,591 $ (19,804 ) $ 4,293,787 Subordinated and mezzanine loans — — — Subtotal before allowance 4,313,591 (19,804 ) 4,293,787 Allowance for loan losses — — — Total $ 4,313,591 $ (19,804 ) $ 4,293,787 |
Summary of Loan Portfolio Activity | For the year ended December 31, 2019, loan portfolio activity was as follows (dollars in thousands): Carrying Amount Balance at December 31, 2018 $ 4,293,787 Additions during the period: Loans originated 2,341,692 Additional fundings 268,356 Amortization of origination fees 16,345 Deductions during the period: Collection of principal (1) (1,939,791 ) Balance at December 31, 2019 $ 4,980,389 (1) Includes loan repayments and sales. |
Summary of Carrying Values and Results of Internal Risk Rating Review | The table below summarizes the carrying values and results of the Company’s internal risk rating review performed as of December 31, 2019 and December 31, 2018 (dollars in thousands): Carrying Value Rating December 31, 2019 December 31, 2018 1 $ — $ 29,923 2 903,393 959,314 3 3,868,696 3,099,401 4 208,300 205,149 5 — — Totals $ 4,980,389 $ 4,293,787 Weighted Average Risk Rating (1) 2.9 2.8 |
Available-for-Sale Debt Secur_2
Available-for-Sale Debt Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Details of Carrying and Fair Values of CRE Debt Securities | Details of the carrying and fair values of the Company’s CRE debt securities are as follows (dollars in thousands): December 31, 2019 Face Amount Unamortized Premium (Discount), net Amortized Cost Unrealized Gain Estimated Fair Value Investments, at Fair Value CRE CLO $ 750,187 $ 207 $ 750,394 $ 1,006 $ 751,400 Commercial Mortgage-Backed Securities 36,162 (55 ) $ 36,107 45 36,152 $ 786,349 $ 152 $ 786,501 $ 1,051 $ 787,552 December 31, 2018 Face Amount Unamortized Premium (Discount), net Amortized Cost Unrealized (Loss) Estimated Fair Value Investments, at Fair Value Commercial mortgage-backed securities $ 76,404 $ (38 ) $ 76,366 $ (1,985 ) $ 74,381 |
CRE Debt Securities by Contractual Maturity | The Company’s CRE debt securities have a weighted average expected life, based on estimated fair value, of 3.2 years. The amortized cost and estimated fair value of the Company’s CRE debt securities by contractual maturity as of December 31, 2019 and December 31, 2018, respectively, are shown in the following table (dollars in thousands): December 31, 2019 Amortized Cost Estimated Fair Value Contractual Maturity Date After one, within five years $ 1,126 $ 1,143 After five years 785,375 786,409 Total investment in commercial mortgage-backed securities, at amortized cost and estimated fair value $ 786,501 $ 787,552 December 31, 2018 Amortized Cost Estimated Fair Value Contractual Maturity Date After one, within five years $ 37,929 $ 38,076 After five years 38,436 36,305 Total investment in commercial mortgage-backed securities, at amortized cost and estimated fair value $ 76,365 $ 74,381 |
Variable Interest Entities an_2
Variable Interest Entities and Collateralized Loan Obligations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Variable Interest Entities Assets and Liabilities | The Company’s total assets and total liabilities at December 31, 2019 included the following VIE assets and liabilities of TRTX 2019-FL3 and TRTX 2018-FL2 (dollars in thousands): December 31, 2019 ASSETS Cash and Cash Equivalents $ 17,075 Accounts Receivable from Servicer/Trustee 1,464 Accrued Interest Receivable 2,178 Loans Held for Investment 2,229,034 Total Assets $ 2,249,751 LIABILITIES Accrued Interest Payable $ 2,512 Accrued Expenses 732 Collateralized Loan Obligations 1,821,128 Payable to Affiliates 4,620 Total Liabilities $ 1,828,992 The Company’s total assets and total liabilities at December 31, 2018 included the following VIE assets and liabilities of TRTX 2018-FL2 and TRTX 2018-FL1 (dollars in thousands): December 31, 2018 ASSETS Cash and Cash Equivalents $ 3,896 Accounts Receivable from Servicer/Trustee 94,763 Accrued Interest Receivable 3,672 Loans Held for Investment 1,824,281 Total Assets $ 1,926,612 LIABILITIES Accrued Interest Payable $ 2,637 Accrued Expenses 668 Collateralized Loan Obligations 1,514,790 Total Liabilities $ 1,518,095 |
Collateralized Loan Obligation | |
Schedule of Borrowings and Corresponding Collateral | The following table outlines TRTX 2019-FL3 and TRTX 2018-FL2 loan collateral and borrowings under the TRTX 2019-FL3 and TRTX 2018-FL2 collateralized loan obligations as of December 31, 2019 (dollars in thousands): As of December 31, 2019 Collateral (loan investments) Debt (notes issued) Outstanding Principal Carrying Value Face Value Carrying Value $ 2,229,034 $ 2,229,034 $ 1,834,761 $ 1,821,128 The following table outlines TRTX 2018-FL2 and TRTX 2018-FL1 loan collateral and borrowings under the TRTX 2018-FL2 and TRTX 2018-FL1 collateralized loan obligations as of December 31, 2018 (dollars in thousands): As of December 31, 2018 Collateral (loan investments) Debt (notes issued) Outstanding Principal Carrying Value Face Value Carrying Value $ 1,824,281 $ 1,824,281 $ 1,527,237 $ 1,514,790 |
Secured Revolving Repurchase _2
Secured Revolving Repurchase Agreements, Senior Secured and Secured Credit Agreements, Term Loan Facility, and Asset-Specific Financings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Instrument [Line Items] | |
Schedule of Information Related to Secured Revolving Repurchase Agreements, Senior Secured and Secured Credit Agreements, and Asset-Specific Financings | The following tables present certain information regarding the Company’s secured revolving repurchase agreements, senior secured and secured credit agreements, and asset-specific financings as of December 31, 2019 and December 31, 2018. Except as otherwise noted, all agreements are on a non-recourse basis (dollars in thousands): As of December 31, 2019 Financing Arrangement Maturity Date Index Rate Weighted Average Credit Spread Interest Rate Commitment Amount Maximum Current Availability Balance Outstanding Principal Balance of Collateral Secured Revolving Repurchase Agreements Goldman Sachs (1) 08/19/20 1 Month Libor 1.8 % 3.5 % $ 750,000 $ 704,563 $ 45,437 $ 288,032 Wells Fargo (1) 04/18/22 1 Month Libor 1.8 3.6 750,000 355,372 394,628 593,742 Barclays (1) 08/13/22 1 Month Libor 1.5 3.3 750,000 318,240 431,760 542,927 Morgan Stanley (1) 05/04/20 1 Month Libor 1.9 3.6 500,000 105,253 394,747 519,638 JP Morgan (1) 08/20/21 1 Month Libor 1.6 3.3 400,000 181,552 218,448 300,677 US Bank (1) 07/09/22 1 Month Libor 1.8 3.6 152,240 15,641 136,599 173,253 Subtotal - Loan Investments 3,302,240 1,680,621 1,621,619 2,418,269 Goldman Sachs (2) 01/12/20 1 Month Libor 0.9 % 2.7 % 81,143 - 81,143 94,629 JP Morgan (2) 01/17/20 1 Month Libor 0.9 2.6 475,881 - 475,881 544,105 Wells Fargo (2) 01/16/20 1 Month Libor 1.0 2.7 135,774 - 135,774 161,153 Royal Bank of Canada (2) N/A N/A N/A N/A - - — — Subtotal - CRE Debt Securities $ 692,798 $ - $ 692,798 $ 799,887 Subtotal $ 3,995,038 $ 1,680,621 $ 2,314,417 $ 3,218,156 Senior Secured and Secured Credit Agreements Bank of America (1) 09/29/20 1 Month Libor 1.8 % 3.8 % 500,000 354,363 145,637 182,882 Citibank (3) 07/12/20 1 Month Libor 2.3 4.1 160,000 160,000 — — Subtotal $ 660,000 $ 514,363 $ 145,637 $ 182,882 Asset-specific Financing Institutional Lender 10/09/20 1 Month Libor 4.2 % 5.9 % 77,000 — 77,000 112,000 Subtotal $ 77,000 — $ 77,000 $ 112,000 Total $ 4,732,038 $ 2,194,984 $ 2,537,054 $ 3,513,038 (1) Borrowings under secured revolving repurchase agreements and a senior secured credit agreement, 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 CRE debt securities, secured revolving repurchase agreement, or roll-over date for the applicable underlying trade confirmation subsequent to December 31, 2019. All of the financing arrangements were extended subsequent to period end. (3) As of December 31, 2018 Financing Arrangement Maturity Date Index Rate Weighted Average Credit Spread Interest Rate Commitment Amount Maximum Current Availability Balance Outstanding Principal Balance of Collateral Secured Revolving Repurchase Agreements Goldman Sachs (1) 08/19/19 1 Month Libor 2.2 % 4.6 % $ 750,000 $ 558,836 $ 191,164 $ 474,243 Wells Fargo (1) 05/25/19 1 Month Libor 1.8 4.3 750,000 503,792 246,208 339,012 Morgan Stanley (1) 05/04/19 1 Month Libor 2.2 4.7 500,000 317,493 182,507 244,936 JP Morgan (1) 08/20/21 1 Month Libor 2.2 4.6 400,000 214,471 185,529 254,026 US Bank (1) 10/09/21 1 Month Libor 1.8 4.3 212,840 6,800 206,040 262,929 Subtotal - Loan Investments 2,612,840 1,601,392 1,011,448 1,575,146 Goldman Sachs (2) 01/02/19 1 Month OIS 0.6 2.9 100,000 67,303 32,697 38,517 Royal Bank of Canada (2) N/A N/A N/A N/A 100,000 100,000 - - Subtotal - CRE Debt Securities $ 200,000 $ 167,303 $ 32,697 $ 38,517 Subtotal $ 2,812,840 $ 1,768,695 $ 1,044,145 $ 1,613,663 Senior Secured and Secured Credit Agreements Bank of America (1) 09/29/20 1 Month Libor 1.9 % 4.2 % $ 500,000 $ 112,560 387,440 494,247 Citibank (3) 07/12/20 1 Month Libor 2.3 4.8 $ 160,000 $ 87,059 72,941 169,134 Subtotal $ 660,000 $ 199,619 $ 460,381 $ 663,381 Asset-specific Financing Maturity Date Index Rate Credit Spread Interest Rate Commitment Amount Maximum Current Availability Balance Outstanding Principal Balance of Collateral BMO Harris Bank (1) 04/09/20 1 Month Libor 2.7 % 4.0 % 32,500 — 32,500 45,000 Subtotal $ 32,500 — $ 32,500 $ 45,000 Total $ 3,505,340 $ 1,968,314 $ 1,537,026 $ 2,322,044 ( 1) (2) Borrowings under one asset-specific financing arrangement, secured revolving repurchase agreements, and a senior secured credit agreement with a guarantee for 100% recourse. Maturity Date represents the sooner of the next maturity date of the CRE debt securities, secured revolving repurchase agreement or roll-over date for the applicable underlying trade confirmation subsequent to December 31, 2018. All of the financing arrangements were extended subsequent to period end. (3) Borrowings under secured revolving repurchase agreements with a guarantee for 100% recourse. |
Commercial Mortgage Loans | |
Debt Instrument [Line Items] | |
Summary of Repurchase Agreements Secured by Commercial Mortgage Loans, CRE Debt Securities and Counterparty Concentration | The following table summarizes certain characteristics of the Company’s secured revolving repurchase agreements secured by commercial mortgage loans and CRE debt securities including counterparty concentration risks, at December 31, 2019 (dollars in thousands): December 31, 2019 Loan Financings Commitment Amount UPB of Collateral Carrying Value of Collateral (1) Amounts Payable (2) Net Counterparty Exposure (3) Percent of Stockholders' Equity Days to Extended Maturity Goldman Sachs Bank $ 750,000 $ 288,032 $ 289,674 $ 45,900 $ 243,774 16.6 % 962 Wells Fargo Bank 750,000 593,742 594,832 395,039 199,793 13.6 839 Barclays 750,000 542,927 542,191 432,399 109,792 7.5 956 Morgan Stanley Bank(4) 500,000 519,638 518,048 395,356 122,692 8.4 N/A JP Morgan Chase Bank 400,000 300,677 297,248 218,744 78,504 5.4 1,328 US Bank 152,240 173,741 173,045 136,734 36,311 2.5 1,652 Subtotal / Weighted Average $ 3,302,240 $ 2,418,757 $ 2,415,038 $ 1,624,172 $ 790,866 1,062 CRE Debt Securities Financings Goldman Sachs Bank $ 81,143 $ 94,629 $ 108,414 $ 81,362 $ 27,052 1.8 % 12 JP Morgan 475,881 544,105 546,260 476,307 69,953 4.8 17 Wells Fargo 135,774 161,153 148,738 136,021 12,717 0.9 16 Royal Bank of Canada - — — — — — — Subtotal / Weighted Average $ 692,798 $ 799,887 $ 803,412 $ 693,690 $ 109,722 16 Total / Weighted Average - Loans and CRE Debt Securities $ 3,995,038 $ 3,218,644 $ 3,218,450 $ 2,317,862 $ 900,588 685 (1) Loan amounts shown in the table include interest receivable of $13.0 million and are net of premium, discount and origination fees of $16.7 million. CRE debt securities shown in the table include interest receivable of $2.3 million and are net of premium, discount, and unrealized gains of $1.2 million (2) Loan amounts shown in the table include interest payable of $2.5 million and do not reflect unamortized deferred financing fees of $10.3 million. CRE debt securities investments shown in the table include interest payable of $0.9 million. (3) Loan amounts represent the net carrying value of the commercial real estate assets sold under agreements to repurchase, including accrued interest plus any cash or assets on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest. CRE debt securities represent the net carrying value of 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) The secured revolving repurchase agreement provided by Morgan Stanley Bank is excluded from the “Days to Extended Maturity” column because it has no limit on the maximum number of permitted extensions, subject to satisfaction of certain conditions and approvals. For borrowing secured by CRE debt securities investments the extended maturity represents the sooner of the next maturity date of the CRE debt securities investment, the secured revolving repurchase agreement, or the roll-over date for the applicable underlying trade confirmation subsequent to December 31, 2019. The following table summarizes certain characteristics of the Company’s secured revolving repurchase agreements secured by commercial mortgage loans and CRE debt securities, including counterparty concentration risks, at December 31, 2018 (dollars in thousands): December 31, 2018 Loan Financings Commitment Amount UPB of Collateral Carrying Value of Collateral (1) Amounts Payable (2) Net Counterparty Exposure (3) Percent of Stockholders' Equity Days to Extended Maturity (4) Goldman Sachs Bank $ 750,000 $ 474,243 $ 472,797 $ 191,705 $ 281,092 21.2 % 231 Wells Fargo Bank 750,000 339,012 338,531 246,635 91,896 6.9 876 Morgan Stanley Bank (4) 500,000 244,936 245,932 183,901 62,031 4.7 N/A JP Morgan Chase Bank 400,000 254,026 253,145 185,892 67,253 5.1 1,693 US Bank 212,840 262,929 261,916 206,422 55,494 4.2 1,743 Subtotal / Weighted Average $ 2,612,840 $ 1,575,146 $ 1,572,321 $ 1,014,555 $ 557,766 1,125 CRE Debt Securities Financings Goldman Sachs Bank $ 100,000 $ 38,517 $ 36,414 $ 32,984 $ 3,430 0.3 % 2 Royal Bank of Canada 100,000 — — — — — — Subtotal / Weighted Average $ 200,000 $ 38,517 $ 36,414 $ 32,984 $ 3,430 2 Total / Weighted Average – Loans and CRE Debt Securities $ 2,812,840 $ 1,613,663 $ 1,608,735 $ 1,047,539 $ 561,196 1,083 (1) Loan amounts shown in the table include interest receivable of $14.5 million and are net of premium, discount and origination fees of $17.3 million. Amounts for CRE debt securities shown in the table include interest receivable of $0.1 million and are net of premium, discount, and unrealized gains of $2.2 million. (2) Loan amounts shown in the table include interest payable of $3.1 million and do not reflect unamortized deferred financing fees of $6.7 million. Amounts for CRE debt securities shown in the table include interest payable of $0.3 million. (3) Loan amounts represent the net carrying value of the commercial real estate assets sold under agreements to repurchase, including accrued interest plus any cash or assets on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest. Investment amounts for CRE debt securities represent 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) The secured revolving repurchase agreement provided by Morgan Stanley Bank is excluded from the “Days to Extended Maturity” column because it has no limit on the maximum number of permitted extensions, subject to satisfaction of certain conditions and approvals. CRE debt securities extended maturity represents the sooner of the next maturity date of the CRE debt securities investment, the secured revolving repurchase agreement, or the roll-over date for the applicable underlying trade confirmation, subsequent to December 31, 2018. |
Schedule of Maturities (Tables)
Schedule of Maturities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Future Principal Payments | The future principal payments for the five years subsequent to December 31, 2019 and thereafter are as follows (in thousands): Collateralized loan obligations Secured revolving repurchase agreements Senior secured and secured credit agreements Asset- specific financing 2019 $ — $ — $ — $ — 2020 632,585 1,325,373 145,637 77,000 2021 600,650 503,126 — — 2022 554,541 485,918 — — 2023 32,284 — — — Thereafter — — — — Total $ 1,820,060 $ 2,314,417 $ 145,637 $ 77,000 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets and Liabilities Not Carried at Fair Value On Recurring Basis | The following tables provide information about financial assets and liabilities not carried at fair value on a recurring basis in our consolidated balance sheet (dollars in thousands): December 31, 2019 Fair Value Carrying Value Level I Level II Level III Financial Assets Loans Held for Investment $ 4,980,389 — — $ 5,004,379 Financial Liabilities Term Loan Facility — — — — Collateralized Loan Obligations 1,806,428 — — 1,806,428 Secured Financing Arrangements 2,525,128 — — 2,525,128 December 31, 2018 Fair Value Carrying Value Level I Level II Level III Financial Assets Loans Held for Investment $ 4,293,787 — — $ 4,317,844 Financial Liabilities Term Loan Facility 113,504 — — 113,504 Collateralized Loan Obligations 1,509,930 — — 1,509,930 Secured Financing Arrangements 1,526,449 — — 1,526,449 |
Income Taxes (Table)
Income Taxes (Table) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Treatment for Common Stock Dividend Declared Per Share | The following table details the income tax treatment for the Company’s common stock and Class A common stock dividends declared as follows (dollars in thousands): Year Ended December 31, 2019 2018 2017 Ordinary income dividends $ 1.72 $ 1.70 $ 1.52 Capital gain dividends - 0.01 0.04 Total dividends (1) $ 1.72 $ 1.71 $ 1.56 (1) Dividend per share amounts reflect the impact of the common stock and Class A common stock dividend paid upon the completion of our initial public offering. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 fiscal years ended December 31, 2019, December 31, 2018, and December 31, 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): Year Ended December 31, 2019 2018 2017 Post-IPO Management Agreement fees incurred $ 28,717 $ 23,748 $ 8,636 Post-IPO Management Agreement fees paid 27,565 22,818 1,079 Pre-IPO Management Agreement and Collateral Management fees incurred — — $ 10,023 Pre-IPO Management Agreement and Collateral Management fees paid — — 15,311 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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): Year Ended December 31, 2019 2018 2017 Net Income Attributable to TPG RE Finance Trust, Inc. $ 126,298 $ 106,938 $ 94,336 Participating Securities' Share in Earnings (676 ) (194 ) — Net Income Attributable to Common Stockholders $ 125,622 $ 106,744 $ 94,336 Weighted Average Common Shares Outstanding, Basic and Diluted 72,743,171 63,034,806 54,194,596 Per Common Share Amount, Basic and Diluted $ 1.73 $ 1.70 $ 1.74 |
Share-based Incentive Plan (Tab
Share-based Incentive Plan (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Outstanding Shares of Common Stock and Weighted-average Grant Date Fair Value Per Share | The following table details the outstanding shares of common stock and the weighted-average grant date fair value per share for shares granted under the Incentive Plan, as of December 31, 2019: Common Stock Weighted- Average Grant Date Fair Value Per Share Balance as of December 31, 2016 — $ — Granted 75,360 19.44 Vested — — Forfeited — — Balance as of December 31, 2017 75,360 $ 19.44 Granted 278,540 18.84 Vested (19,352 ) 19.44 Forfeited (579 ) 19.44 Balance as of December 31, 2018 333,969 $ 18.94 Granted 396,410 20.52 Vested (100,305 ) 19.02 Forfeited (6,068 ) 18.78 Balance as of December 31, 2019 624,006 $ 19.93 |
Schedule of Awarded Shares Vesting Period | Generally, the shares vest in installments over a four-year Vesting Year Shares of Common Stock 2020 229,521 2021 229,522 2022 102,389 2023 62,574 624,006 |
Concentration of Credit Risk (T
Concentration of Credit Risk (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Loans And Leases Receivable Disclosure [Line Items] | |
Summary of Loan Portfolio by Property/ Loan Category Type | A summary of the loan portfolio by property type as of December 31, 2019 and December 31, 2018 based on total loan commitment and current unpaid principal balance (“UPB”) is as follows (dollars in thousands): As of December 31, 2019 Property Type Loan Commitment Unfunded Commitment % of Loan Commitment Loan UPB % of Loan UPB Office $ 2,925,749 $ 438,800 52.0 % $ 2,486,949 49.9 % Multifamily 1,104,946 69,061 19.6 1,035,885 20.7 Hotel 752,293 40,088 13.4 712,205 14.2 Mixed-Use 604,993 78,835 10.7 526,158 10.5 Condominium 95,784 1,524 1.7 94,260 1.9 Retail 33,000 2,281 0.6 30,719 0.6 Other 112,000 — 2.0 112,000 2.2 Total $ 5,628,765 $ 630,589 100.0 % $ 4,998,176 100.0 % As of December 31, 2018 Property Type Loan Commitment Unfunded Commitment % of Loan Commitment Loan UPB % of Loan UPB Office $ 1,898,511 $ 316,510 38.5 % $ 1,582,001 36.8 % Multifamily 1,247,860 131,177 25.2 1,116,683 25.9 Mixed Use 838,200 114,748 16.9 723,452 16.8 Hotel 508,450 10,896 10.3 497,554 11.5 Retail 233,555 50,247 4.7 183,308 4.2 Condominium 154,673 10,580 3.1 144,093 3.3 Industrial 66,500 — 1.3 66,500 1.5 Total $ 4,947,749 $ 634,158 100.0 % $ 4,313,591 100.0 % |
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 unpaid principal balance is as follows (dollars in thousands): December 31, 2019 Geographic Region Loan Commitment Unfunded Commitment % of Loan Commitment Loan UPB % of Loan UPB East $ 2,182,659 $ 214,938 38.7 % $ 1,967,721 39.4 % South 1,342,794 124,939 23.9 1,217,855 24.4 West 1,397,431 201,690 24.8 1,195,741 23.9 Midwest 482,804 83,178 8.6 399,626 8.0 Various 223,077 5,844 4.0 217,233 4.3 Total $ 5,628,765 $ 630,589 100.0 % $ 4,998,176 100.0 % December 31, 2018 Geographic Region Loan Commitment Unfunded Commitment % of Loan Commitment Loan UPB % of Loan UPB East $ 2,084,807 $ 170,131 42.1 % $ 1,914,676 44.4 % South 1,525,173 270,933 30.8 1,254,240 29.1 West 760,416 100,422 15.4 659,994 15.3 Midwest 577,353 92,672 11.7 484,681 11.2 Total $ 4,947,749 $ 634,158 100.0 % $ 4,313,591 100.0 % |
Loan Category | |
Loans And Leases Receivable Disclosure [Line Items] | |
Summary of Loan Portfolio by Property/ Loan Category Type | A summary of the loan portfolio by category as of December 31, 2019 and December 31, 2018 based on total loan commitment and current unpaid principal balance is as follows (dollars in thousands): December 31, 2019 Loan Category Loan Commitment Unfunded Commitment % of Loan Commitment Loan UPB % of Loan UPB Bridge $ 2,001,962 $ 49,057 35.6 % $ 1,952,905 39.1 % Light Transitional 1,890,762 219,138 33.6 1,671,624 33.4 Moderate Transitional 1,701,041 347,394 30.2 1,353,647 27.1 Construction 35,000 15,000 0.6 20,000 0.4 Total $ 5,628,765 $ 630,589 100.0 % $ 4,998,176 100.0 % December 31, 2018 Loan Category Loan Commitment Unfunded Commitment % of Loan Commitment Loan UPB % of Loan UPB Bridge $ 2,414,456 $ 199,397 48.8 % $ 2,215,059 51.3 % Light Transitional 1,513,227 212,290 30.6 1,300,937 30.2 Moderate Transitional 1,020,066 222,471 20.6 797,595 18.5 Total $ 4,947,749 $ 634,158 100.0 % $ 4,313,591 100.0 % Loan commitments represent principal commitments made by the Company at December 31, 2019 and December 31, 2018, respectively. |
Summary of Quarterly Results _2
Summary of Quarterly Results of Operations (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The following is a summary of the unaudited quarterly results of operations for the years ended December 31, 2019 and December 31, 2018 (dollars in thousands except per share data): March 31 June 30 September 30 December 31 2019 Net interest income and total other revenue $ 37,656 $ 42,240 $ 44,648 $ 42,183 Net income attributable to TPG RE Finance Trust, Inc. $ 28,409 $ 31,965 $ 33,022 $ 32,902 Basic and diluted $ 0.42 $ 0.43 $ 0.44 $ 0.44 2018 Net interest income and total other revenue $ 33,733 $ 35,048 $ 35,511 $ 36,584 Net income attributable to TPG RE Finance Trust, Inc. $ 25,111 $ 26,438 $ 26,824 $ 28,565 Basic and diluted $ 0.42 $ 0.44 $ 0.42 $ 0.43 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)Loan | Jan. 01, 2020USD ($)Loan$ / shares | Dec. 31, 2018USD ($)Loan | |
Significant Accounting Policies [Line Items] | |||
Threshold period of delinquency | 90 days | ||
Number of loans on non-accrual status | Loan | 0 | 0 | |
Percentage of senior mortgage loan transferred to third-party | 100.00% | ||
Deferred tax assets | $ 0 | ||
Maximum insured amount of each cash account | 250,000 | $ 250,000 | |
Excess of AFS debt securities aggregate estimated fair market value than amortized cost | $ 1,100,000 | ||
ASU 2016-13 | Subsequent Event | |||
Significant Accounting Policies [Line Items] | |||
Number of commercial real estate loan | Loan | 100,000 | ||
Current expected credit losses reserve | $ 18,500,000 | ||
Current expected credit losses reserve per share | $ / shares | $ 0.24 | ||
Percentage of commitment amount of loan portfolio | 0.33% |
Loans Held for Investment - Add
Loans Held for Investment - Additional Information (Details) | Dec. 17, 2019USD ($) | Jul. 16, 2018USD ($) | Dec. 31, 2019USD ($)RatingLoan | Dec. 31, 2019USD ($)RatingLoan | Dec. 31, 2018USD ($)RatingLoan | Dec. 31, 2017USD ($) |
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total loan commitment amount | $ 5,628,765,000 | $ 5,628,765,000 | $ 4,947,749,000 | |||
Unfunded loan commitments | 630,589,000 | 630,589,000 | 634,158,000 | |||
Unamortized loan discount and premium | $ 0 | 0 | 0 | |||
Cash consideration | $ 59,759,000 | $ 2,174,000 | $ 65,054,000 | |||
Gain (loss) on sale of investments | $ 200,000 | |||||
Weighted Average Risk Rating | Rating | 2.9 | 2.9 | 2.8 | |||
Number of loans on non-accrual status | Loan | 0 | 0 | 0 | |||
Reserve | $ 0 | $ 0 | $ 0 | |||
Moved from Three Risk Rating into Two Risk Rating | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Number of loans selected for risk rate changes | Loan | 2 | |||||
Four Risk Rating | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Number of loans sold | Loan | 1 | |||||
Floating Rate Performing Mortgage Loan | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total loan commitment amount | 64,900 | |||||
Unpaid principal balance | 59,600 | |||||
Cash consideration | $ 59,800,000 | |||||
Non-core | Fixed Rate Loan Investment | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Cash consideration | $ 2,600,000 | |||||
Gain (loss) on sale of investments | $ 400,000 | |||||
Non Consolidated Senior Interests | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total loan commitment amount | $ 132,000,000 | 132,000,000 | $ 0 | |||
Non Consolidated Senior Interests | Originated or Acquired 32 Mortgage Loans | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total loan commitment amount | 132,000,000 | $ 132,000,000 | ||||
German American Capital Corporation | Originated or Acquired 32 Mortgage Loans | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Number of loans originated | Loan | 32 | |||||
Total loan commitment amount | 2,900,000,000 | $ 2,900,000,000 | ||||
Unpaid principal balance | 2,400,000,000 | 2,400,000,000 | ||||
Unfunded loan commitments | $ 439,500,000 | $ 439,500,000 | ||||
German American Capital Corporation | Originated or Acquired 26 Mortgage Loans | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Number of loans originated | Loan | 26 | |||||
Total loan commitment amount | $ 2,520,000,000 | |||||
Unpaid principal balance | 2,100,000,000 | |||||
Unfunded loan commitments | $ 436,200,000 |
Loans Held for Investment - Sch
Loans Held for Investment - Schedule of Mortgage Loan Investment Portfolio (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Loans And Leases Receivable Disclosure [Line Items] | ||
Outstanding Principal, before allowance for loan losses | $ 4,998,176 | $ 4,313,591 |
Unamortized Premium (Discount), Loan Origination Fees net, before allowance for loan losses | (17,787) | (19,804) |
Carrying Amount, before allowance for loan losses | 4,980,389 | 4,293,787 |
Senior Loans | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Outstanding Principal, before allowance for loan losses | 4,978,176 | 4,313,591 |
Unamortized Premium (Discount), Loan Origination Fees net, before allowance for loan losses | (17,500) | (19,804) |
Carrying Amount, before allowance for loan losses | 4,960,676 | $ 4,293,787 |
Subordinated and Mezzanine Loans | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Outstanding Principal, before allowance for loan losses | 20,000 | |
Unamortized Premium (Discount), Loan Origination Fees net, before allowance for loan losses | (287) | |
Carrying Amount, before allowance for loan losses | $ 19,713 |
Loans Held for Investment - Sum
Loans Held for Investment - Summary of Loan Portfolio Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loans And Leases Receivable Disclosure [Abstract] | |||
Balance at December 31, 2018 | $ 4,293,787 | $ 3,175,672 | $ 2,449,990 |
Loans originated | 2,341,692 | 2,071,391 | 1,596,531 |
Additional fundings | 268,356 | 258,308 | 315,409 |
Amortization of origination fees | 16,345 | ||
Collection of principal | (1,939,791) | (1,228,491) | (1,202,776) |
Balance at December 31, 2019 | $ 4,980,389 | $ 4,293,787 | $ 3,175,672 |
Loans Held for Investment - S_2
Loans Held for Investment - Summary of Carrying Values and Results of Internal Risk Rating Review Performed (Details) $ in Thousands | Dec. 31, 2019USD ($)Rating | Dec. 31, 2018USD ($)Rating | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Accounts Notes And Loans Receivable [Line Items] | ||||
Carrying Value | $ 4,980,389 | $ 4,293,787 | $ 3,175,672 | $ 2,449,990 |
Weighted Average Risk Rating | Rating | 2.9 | 2.8 | ||
Rating 1 | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Carrying Value | $ 29,923 | |||
Rating 2 | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Carrying Value | $ 903,393 | 959,314 | ||
Rating 3 | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Carrying Value | 3,868,696 | 3,099,401 | ||
Rating 4 | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Carrying Value | $ 208,300 | $ 205,149 |
Available-for-Sale Debt Secur_3
Available-for-Sale Debt Securities - Additional Information (Details) | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2019USD ($)Investment | Dec. 31, 2019USD ($)Investment | Dec. 31, 2018USD ($)Investment | Dec. 31, 2017USD ($) | |
Schedule Of Available For Sale Securities [Line Items] | ||||
Aggregate purchase price of investments | $ 815,037,000 | $ 143,503,000 | $ 96,294,000 | |
Weighted average contractual maturity, Terms | 3 years 2 months 12 days | |||
CRE CLO Investments | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Number of investments purchased | Investment | 37 | |||
Weighted average coupon rate | 2.00% | |||
Aggregate purchase price of investments | $ 785,400,000 | |||
Commercial Mortgage-Backed Securities | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Number of investments sold | Investment | 2 | |||
Total cash consideration including selling costs and fees | $ 46,200,000 | |||
Loss on sale of investments | $ 500,000 | |||
CRE CLO and CMBS Investments | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Number of Investments | Investment | 38 | 4 | ||
Commercial Mortgage-Backed Securities | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Other than temporary impairments on available-for-sale | $ 0 | $ 0 |
Available-for-Sale Debt Secur_4
Available-for-Sale Debt Securities - Details of Carrying and Fair Values of CRE Debt Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule Of Available For Sale Securities [Line Items] | ||
Face Amount | $ 786,349 | |
Unamortized Premium (Discount), net | 152 | |
Amortized Cost | 786,501 | |
Unrealized Gain | 1,051 | |
Estimated Fair Value | 787,552 | $ 74,381 |
CRE CLO Investments | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Face Amount | 750,187 | |
Unamortized Premium (Discount), net | 207 | |
Amortized Cost | 750,394 | |
Unrealized Gain | 1,006 | |
Estimated Fair Value | 751,400 | |
Commercial Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Face Amount | 36,162 | 76,404 |
Unamortized Premium (Discount), net | (55) | (38) |
Amortized Cost | 36,107 | 76,366 |
Unrealized (Loss) | (1,985) | |
Unrealized Gain | 45 | |
Estimated Fair Value | $ 36,152 | $ 74,381 |
Available-for-Sale Debt Secur_5
Available-for-Sale Debt Securities - CRE Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Estimated Fair Value | ||
Total investment in commercial mortgage-backed securities, at amortized cost and estimated fair value | $ 787,552 | $ 74,381 |
CRE CLO and CMBS Investments | ||
Amortized Cost | ||
After one, within five years | 1,126 | 37,929 |
After five years | 785,375 | 38,436 |
Total investment in commercial mortgage-backed securities, at amortized cost and estimated fair value | 786,501 | 76,365 |
Estimated Fair Value | ||
After one, within five years | 1,143 | 38,076 |
After five years | 786,409 | 36,305 |
Total investment in commercial mortgage-backed securities, at amortized cost and estimated fair value | $ 787,552 | $ 74,381 |
Variable Interest Entities an_3
Variable Interest Entities and Collateralized Loan Obligations - Additional Information (Details) - USD ($) | Aug. 16, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Oct. 25, 2019 |
Variable Interest Entities And Collateralized Loan Obligation [Line Items] | ||||
Principal amount of notes issued | $ 660,000,000 | $ 660,000,000 | ||
Collateralized Loan Obligation | ||||
Variable Interest Entities And Collateralized Loan Obligation [Line Items] | ||||
Principal amount of notes issued | 1,834,761,000 | 1,527,237,000 | ||
Unamortized issuance costs | 13,632,000 | 12,477,000 | ||
Interest expense excluding amortization of deferred financing costs | 5,800,000 | |||
FL3-Notes | ||||
Variable Interest Entities And Collateralized Loan Obligation [Line Items] | ||||
Cash available to acquire eligible assets | 1,300,000 | |||
FL3-Notes | Collateralized Loan Obligation | ||||
Variable Interest Entities And Collateralized Loan Obligation [Line Items] | ||||
Debt issuance costs, gross | 7,800,000 | |||
Unamortized issuance costs | 7,400,000 | |||
FL3-Securities | ||||
Variable Interest Entities And Collateralized Loan Obligation [Line Items] | ||||
Liquidation preference notional amount | $ 1,000 | |||
FL2-Notes | Collateralized Loan Obligation | ||||
Variable Interest Entities And Collateralized Loan Obligation [Line Items] | ||||
Debt issuance costs, gross | 8,700,000 | |||
Unamortized issuance costs | 6,100,000 | |||
Interest expense excluding amortization of deferred financing costs | 29,400,000 | 2,800,000 | ||
FL1-Securities | ||||
Variable Interest Entities And Collateralized Loan Obligation [Line Items] | ||||
Unamortized issuance costs | 40,000 | |||
Repurchase of securities consideration amount | $ 509,500,000 | |||
Net proceeds of securities repurchased | $ 32,200,000 | |||
FL1-Notes | Collateralized Loan Obligation | ||||
Variable Interest Entities And Collateralized Loan Obligation [Line Items] | ||||
Interest expense excluding amortization of deferred financing costs | 11,600,000 | $ 20,700,000 | ||
TPG Real Estate Finance 2019-FL3 Issuer, Ltd. and TPG RE Finance Trust 2019-FL3 Co-Issuer, LLC | ||||
Variable Interest Entities And Collateralized Loan Obligation [Line Items] | ||||
Preferred shares par value per share | $ 0.001 | |||
TPG Real Estate Finance 2019-FL3 Issuer, Ltd. and TPG RE Finance Trust 2019-FL3 Co-Issuer, LLC | FL3-Notes | ||||
Variable Interest Entities And Collateralized Loan Obligation [Line Items] | ||||
Principal amount of notes issued | $ 1,230,300,000 | |||
FL3-Co-Issuer | ||||
Variable Interest Entities And Collateralized Loan Obligation [Line Items] | ||||
Principal amount of notes issued | 1,039,600,000 | |||
FL3-Retention Holder | FL3-Securities | ||||
Variable Interest Entities And Collateralized Loan Obligation [Line Items] | ||||
Variable interest entity retained ownership amount | $ 190,700,000 | |||
FL3 Mortgage Assets | ||||
Variable Interest Entities And Collateralized Loan Obligation [Line Items] | ||||
Principal amount of notes issued | $ 1,200,000,000 | |||
Loans held for investment, aggregate unpaid principal balance percentage | 24.60% | |||
FL2-Notes | Collateralized Loan Obligation | ||||
Variable Interest Entities And Collateralized Loan Obligation [Line Items] | ||||
Principal amount of notes issued | $ 514,700,000 | |||
Cash available to acquire eligible assets | 100,000 | |||
Net cash proceeds utilizing replenishment feature | 159,800,000 | |||
Repayment of existing borrowings including accrued interest | $ 354,900,000 |
Variable Interest Entities an_4
Variable Interest Entities and Collateralized Loan Obligations - Summary of Variable Interest Entities Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
ASSETS | |||
Cash and Cash Equivalents | [1] | $ 79,182 | $ 39,720 |
Accounts Receivable from Servicer/Trustee | [1] | 13,741 | 96,464 |
Accrued Interest Receivable | [1] | 28,107 | 20,731 |
Loans Held for Investment | 4,980,389 | 4,293,787 | |
Total Assets | [1] | 5,892,870 | 4,526,790 |
Liabilities | |||
Accrued Interest Payable | [1] | 6,665 | 6,146 |
Accrued Expenses | [1] | 8,176 | 8,151 |
Collateralized Loan Obligations | [1] | 1,806,428 | 1,509,930 |
Payable to Affiliates | [1] | 9,520 | 5,996 |
Total Liabilities | [1] | 4,388,916 | 3,199,620 |
Variable Interest Entity, Primary Beneficiary | |||
ASSETS | |||
Cash and Cash Equivalents | 17,075 | 3,896 | |
Accounts Receivable from Servicer/Trustee | 1,464 | 94,763 | |
Accrued Interest Receivable | 2,178 | 3,672 | |
Loans Held for Investment | 2,229,034 | 1,824,281 | |
Total Assets | 2,249,751 | 1,926,612 | |
Liabilities | |||
Accrued Interest Payable | 2,512 | 2,637 | |
Accrued Expenses | 732 | 668 | |
Collateralized Loan Obligations | 1,821,128 | 1,514,790 | |
Payable to Affiliates | 4,620 | ||
Total Liabilities | $ 1,828,992 | $ 1,518,095 | |
[1] | The Company’s consolidated Total Assets and Total Liabilities at December 31, 2019 include the assets and liabilities of variable interest entities (“VIEs”) of $2.2 billion and $1.8 billion, respectively. The Company’s Total Assets and Total Liabilities at December 31, 2018 include assets and liabilities of VIEs of $1.9 billion and $1.5 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to those assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details |
Variable Interest Entities an_5
Variable Interest Entities and Collateralized Loan Obligations - Schedule of Borrowings and Corresponding Collateral (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Collateral (loans), Outstanding Principal | $ 182,882 | $ 663,381 | |
Debt, Face Value | 660,000 | 660,000 | |
Debt, Carrying Value | [1] | 1,806,428 | 1,509,930 |
Collateralized Loan Obligation | |||
Debt Instrument [Line Items] | |||
Collateral (loans), Outstanding Principal | 2,229,034 | 1,824,281 | |
Collateral (loans), Carrying Value | 2,229,034 | 1,824,281 | |
Debt, Face Value | 1,834,761 | 1,527,237 | |
Debt, Carrying Value | $ 1,821,128 | $ 1,514,790 | |
[1] | The Company’s consolidated Total Assets and Total Liabilities at December 31, 2019 include the assets and liabilities of variable interest entities (“VIEs”) of $2.2 billion and $1.8 billion, respectively. The Company’s Total Assets and Total Liabilities at December 31, 2018 include assets and liabilities of VIEs of $1.9 billion and $1.5 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to those assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details |
Summary of Secured Revolving Re
Summary of Secured Revolving Repurchase Agreements, Senior Secured and Secured Credit Agreements, and Asset-Specific Financings (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Index Rate | one-month LIBOR | |
Commitment Amount | $ 660,000,000 | $ 660,000,000 |
Maximum Current Availability | 514,363,000 | 199,619,000 |
Balance Outstanding | 145,637,000 | 460,381,000 |
Principal Balance of Collateral | 182,882,000 | 663,381,000 |
Asset-specific Financing | ||
Debt Instrument [Line Items] | ||
Commitment Amount | 77,000,000 | 32,500,000 |
Balance Outstanding | 77,000,000 | 32,500,000 |
Principal Balance of Collateral | 112,000,000 | 45,000,000 |
Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Commitment Amount | 3,995,038,000 | 2,812,840,000 |
Maximum Current Availability | 1,680,621,000 | 1,768,695,000 |
Balance Outstanding | 2,314,417,000 | 1,044,145,000 |
Principal Balance of Collateral | 3,218,156,000 | 1,613,663,000 |
Asset-specific Financing, Secured Revolving Repurchase Agreements and Senior Secured and Secured Credit Agreements | ||
Debt Instrument [Line Items] | ||
Commitment Amount | 4,732,038,000 | 3,505,340,000 |
Maximum Current Availability | 2,194,984,000 | 1,968,314,000 |
Balance Outstanding | 2,537,054,000 | 1,537,026,000 |
Principal Balance of Collateral | 3,513,038,000 | 2,322,044,000 |
Loans Investment | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Commitment Amount | 3,302,240,000 | 2,612,840,000 |
Maximum Current Availability | 1,680,621,000 | 1,601,392,000 |
Balance Outstanding | 1,621,619,000 | 1,011,448,000 |
Principal Balance of Collateral | 2,418,269,000 | 1,575,146,000 |
Commercial Real Estate Debt Securities | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Commitment Amount | 692,798,000 | 200,000,000 |
Maximum Current Availability | 167,303,000 | |
Balance Outstanding | 692,798,000 | 32,697,000 |
Principal Balance of Collateral | $ 799,887,000 | $ 38,517,000 |
Goldman Sachs | Debt Instrument, Interest Rate at 3.5% | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Maturity Date | Aug. 19, 2020 | |
Index Rate | 1 Month Libor | |
Weighted Average Credit Spread | 1.80% | |
Interest Rate | 3.50% | |
Commitment Amount | $ 750,000,000 | |
Maximum Current Availability | 704,563,000 | |
Balance Outstanding | 45,437,000 | |
Principal Balance of Collateral | $ 288,032,000 | |
Goldman Sachs | Debt Instrument, Interest Rate at 4.6% | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Maturity Date | Aug. 19, 2020 | Aug. 19, 2019 |
Index Rate | 1 Month Libor | |
Weighted Average Credit Spread | 2.20% | |
Interest Rate | 4.60% | |
Commitment Amount | $ 750,000,000 | |
Maximum Current Availability | 558,836,000 | |
Balance Outstanding | 191,164,000 | |
Principal Balance of Collateral | $ 474,243,000 | |
Goldman Sachs | Commercial Real Estate Debt Securities | Debt Instrument, Interest Rate at 2.7% | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Maturity Date | Jan. 12, 2020 | |
Index Rate | 1 Month Libor | |
Weighted Average Credit Spread | 0.90% | |
Interest Rate | 2.70% | |
Commitment Amount | $ 81,143,000 | |
Balance Outstanding | 81,143,000 | |
Principal Balance of Collateral | $ 94,629,000 | |
Goldman Sachs | Commercial Real Estate Debt Securities | Debt Instrument, Interest Rate at 2.9% | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Maturity Date | Jan. 2, 2019 | |
Index Rate | 1 Month OIS | |
Weighted Average Credit Spread | 0.60% | |
Interest Rate | 2.90% | |
Commitment Amount | $ 100,000,000 | |
Maximum Current Availability | 67,303,000 | |
Balance Outstanding | 32,697,000 | |
Principal Balance of Collateral | $ 38,517,000 | |
Wells Fargo | Debt Instrument, Interest Rate at 3.6% | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Maturity Date | Apr. 18, 2022 | |
Index Rate | 1 Month Libor | |
Weighted Average Credit Spread | 1.80% | |
Interest Rate | 3.60% | |
Commitment Amount | $ 750,000,000 | |
Maximum Current Availability | 355,372,000 | |
Balance Outstanding | 394,628,000 | |
Principal Balance of Collateral | $ 593,742,000 | |
Wells Fargo | Debt Instrument, Interest Rate at 4.3% | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Maturity Date | May 25, 2019 | |
Index Rate | 1 Month Libor | |
Weighted Average Credit Spread | 1.80% | |
Interest Rate | 4.30% | |
Commitment Amount | $ 750,000,000 | |
Maximum Current Availability | 503,792,000 | |
Balance Outstanding | 246,208,000 | |
Principal Balance of Collateral | $ 339,012,000 | |
Wells Fargo | Commercial Real Estate Debt Securities | Debt Instrument, Interest Rate at 2.8% | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Maturity Date | Jan. 16, 2020 | |
Index Rate | 1 Month Libor | |
Weighted Average Credit Spread | 1.00% | |
Interest Rate | 2.70% | |
Commitment Amount | $ 135,774,000 | |
Balance Outstanding | 135,774,000 | |
Principal Balance of Collateral | $ 161,153,000 | |
Barclays | Debt Instrument, Interest Rate at 3.3% | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Maturity Date | Aug. 13, 2022 | |
Index Rate | 1 Month Libor | |
Weighted Average Credit Spread | 1.50% | |
Interest Rate | 3.30% | |
Commitment Amount | $ 750,000,000 | |
Maximum Current Availability | 318,240,000 | |
Balance Outstanding | 431,760,000 | |
Principal Balance of Collateral | $ 542,927,000 | |
Morgan Stanley | Debt Instrument, Interest Rate at 3.6% | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Maturity Date | May 4, 2020 | |
Index Rate | 1 Month Libor | |
Weighted Average Credit Spread | 1.90% | |
Interest Rate | 3.60% | |
Commitment Amount | $ 500,000,000 | |
Maximum Current Availability | 105,253,000 | |
Balance Outstanding | 394,747,000 | |
Principal Balance of Collateral | $ 519,638,000 | |
Morgan Stanley | Debt Instrument, Interest Rate at 4.7% | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Maturity Date | May 4, 2019 | |
Index Rate | 1 Month Libor | |
Weighted Average Credit Spread | 2.20% | |
Interest Rate | 4.70% | |
Commitment Amount | $ 500,000,000 | |
Maximum Current Availability | 317,493,000 | |
Balance Outstanding | 182,507,000 | |
Principal Balance of Collateral | $ 244,936,000 | |
JP Morgan | Debt Instrument, Interest Rate at 3.3% | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Maturity Date | Aug. 20, 2021 | |
Index Rate | 1 Month Libor | |
Weighted Average Credit Spread | 1.60% | |
Interest Rate | 3.30% | |
Commitment Amount | $ 400,000,000 | |
Maximum Current Availability | 181,552,000 | |
Balance Outstanding | 218,448,000 | |
Principal Balance of Collateral | $ 300,677,000 | |
JP Morgan | Debt Instrument, Interest Rate at 4.6% | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Maturity Date | Aug. 19, 2022 | Aug. 20, 2021 |
Index Rate | 1 Month Libor | |
Weighted Average Credit Spread | 2.20% | |
Interest Rate | 4.60% | |
Commitment Amount | $ 400,000,000 | |
Maximum Current Availability | 214,471,000 | |
Balance Outstanding | 185,529,000 | |
Principal Balance of Collateral | $ 254,026,000 | |
JP Morgan | Commercial Real Estate Debt Securities | Debt Instrument, Interest Rate at 2.7% | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Maturity Date | Jan. 17, 2020 | |
Index Rate | 1 Month Libor | |
Weighted Average Credit Spread | 0.90% | |
Interest Rate | 2.60% | |
Commitment Amount | $ 475,881,000 | |
Balance Outstanding | 475,881,000 | |
Principal Balance of Collateral | $ 544,105,000 | |
US Bank | Debt Instrument, Interest Rate at 3.6% | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Maturity Date | Jul. 9, 2022 | |
Index Rate | 1 Month Libor | |
Weighted Average Credit Spread | 1.80% | |
Interest Rate | 3.60% | |
Commitment Amount | $ 152,240,000 | |
Maximum Current Availability | 15,641,000 | |
Balance Outstanding | 136,599,000 | |
Principal Balance of Collateral | $ 173,253,000 | |
US Bank | Debt Instrument, Interest Rate at 4.3% | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Maturity Date | Oct. 9, 2021 | |
Index Rate | 1 Month Libor | |
Weighted Average Credit Spread | 1.80% | |
Interest Rate | 4.30% | |
Commitment Amount | $ 212,840,000 | |
Maximum Current Availability | 6,800,000 | |
Balance Outstanding | 206,040,000 | |
Principal Balance of Collateral | 262,929,000 | |
Royal Bank of Canada | Commercial Real Estate Debt Securities | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Commitment Amount | 100,000,000 | |
Maximum Current Availability | $ 100,000,000 | |
Bank of America | Debt Instrument, Interest Rate at 3.8% | Senior Secured and Secured Credit Agreements | ||
Debt Instrument [Line Items] | ||
Maturity Date | Sep. 29, 2020 | |
Index Rate | 1 Month Libor | |
Weighted Average Credit Spread | 1.80% | |
Interest Rate | 3.80% | |
Commitment Amount | $ 500,000,000 | |
Maximum Current Availability | 354,363,000 | |
Balance Outstanding | 145,637,000 | |
Principal Balance of Collateral | $ 182,882,000 | |
Bank of America | Debt Instrument, Interest Rate at 4.2% | Senior Secured and Secured Credit Agreements | ||
Debt Instrument [Line Items] | ||
Maturity Date | Sep. 29, 2020 | |
Index Rate | 1 Month Libor | |
Weighted Average Credit Spread | 1.90% | |
Interest Rate | 4.20% | |
Commitment Amount | $ 500,000,000 | |
Maximum Current Availability | 112,560,000 | |
Balance Outstanding | 387,440,000 | |
Principal Balance of Collateral | $ 494,247,000 | |
Citibank | Debt Instrument, Interest Rate at 4.1% | Senior Secured and Secured Credit Agreements | ||
Debt Instrument [Line Items] | ||
Maturity Date | Jul. 12, 2020 | |
Index Rate | 1 Month Libor | |
Weighted Average Credit Spread | 2.30% | |
Interest Rate | 4.10% | |
Commitment Amount | $ 160,000,000 | |
Maximum Current Availability | $ 160,000,000 | |
Citibank | Debt Instrument, Interest Rate at 4.8% | Senior Secured and Secured Credit Agreements | ||
Debt Instrument [Line Items] | ||
Maturity Date | Jul. 12, 2020 | |
Index Rate | 1 Month Libor | |
Weighted Average Credit Spread | 2.30% | |
Interest Rate | 4.80% | |
Commitment Amount | $ 160,000,000 | |
Maximum Current Availability | 87,059,000 | |
Balance Outstanding | 72,941,000 | |
Principal Balance of Collateral | $ 169,134,000 | |
Institutional Lender | Asset-specific Financing | ||
Debt Instrument [Line Items] | ||
Maturity Date | Oct. 9, 2020 | |
Commitment Amount | $ 77,000 | |
Institutional Lender | Debt Instrument, Interest Rate at 5.9% | Asset-specific Financing | ||
Debt Instrument [Line Items] | ||
Maturity Date | Oct. 9, 2020 | |
Index Rate | 1 Month Libor | |
Weighted Average Credit Spread | 4.20% | |
Interest Rate | 5.90% | |
Commitment Amount | $ 77,000,000 | |
Balance Outstanding | 77,000,000 | |
Principal Balance of Collateral | $ 112,000,000 | |
BMO Harris Bank | Debt Instrument, Interest Rate at 4.0% | Asset-specific Financing | ||
Debt Instrument [Line Items] | ||
Maturity Date | Apr. 9, 2020 | |
Index Rate | 1 Month Libor | |
Weighted Average Credit Spread | 2.70% | |
Interest Rate | 4.00% | |
Commitment Amount | $ 32,500,000 | |
Balance Outstanding | 32,500,000 | |
Principal Balance of Collateral | $ 45,000,000 |
Summary of Secured Revolving _2
Summary of Secured Revolving Repurchase Agreements, Senior Secured and Secured Credit Agreements, and Asset-Specific Financings (Parenthetical) (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Asset-specific Financing, Secured Revolving Repurchase Agreements and Senior Secured and Secured Credit Agreements | ||
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 Credit Agreement | ||
Debt Instrument [Line Items] | ||
Recourse guarantee percentage | 100.00% | 100.00% |
Secured Revolving Repurchase _3
Secured Revolving Repurchase Agreements, Senior Secured and Secured Credit Agreements, Term Loan Facility, and Asset-Specific Financings - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2019USD ($)Agreement | Dec. 31, 2018USD ($)Agreement | |
Debt Instrument [Line Items] | ||
Debt Instrument, outstanding borrowing | $ 145,637,000 | $ 460,381,000 |
Index Rate | one-month LIBOR | |
Asset-specific financing principal amount | $ 660,000,000 | 660,000,000 |
Asset-specific Financing | ||
Debt Instrument [Line Items] | ||
Debt Instrument, outstanding borrowing | 77,000,000 | 32,500,000 |
Asset-specific financing principal amount | 77,000,000 | 32,500,000 |
Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Debt Instrument, outstanding borrowing | 0 | |
Bank of America | Senior Secured Credit Agreement | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 500,000,000 | |
Line of credit facility, initial maturity date | Sep. 29, 2020 | |
Credit agreement initiation date | Dec. 31, 2019 | |
Line of credit facility, outstanding amount | $ 145,600,000 | |
Bank of America | Senior Secured Credit Agreement | LIBOR | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.75% | |
Citibank | Secured Credit Agreement | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 160,000,000 | |
Line of credit facility, initial maturity date | Jul. 12, 2020 | |
Line of credit facility, outstanding amount | $ 0 | |
Percentage of individual pledged assets | 70.00% | |
Individual pledged assets term | 90 days | |
Citibank | Secured Credit Agreement | LIBOR | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 2.25% | |
Index Rate | one-month LIBOR | |
Institutional Lender | Asset-specific Financing | ||
Debt Instrument [Line Items] | ||
Maturity Date | Oct. 9, 2020 | |
Asset-specific financing principal amount | $ 77,000 | |
Institutional Lender | LIBOR | Asset-specific Financing | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 4.15% | |
Commercial Mortgage Loans | ||
Debt Instrument [Line Items] | ||
Asset-specific financing principal amount | $ 3,302,240,000 | $ 2,612,840,000 |
Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Recourse guarantee percentage | 100.00% | 100.00% |
Number of repurchase agreements | Agreement | 6 | 5 |
Debt Instrument, outstanding borrowing | $ 2,314,417,000 | $ 1,044,145,000 |
Asset-specific financing principal amount | $ 3,995,038,000 | $ 2,812,840,000 |
Repurchase Agreements | Goldman Sachs | Debt Instrument, Interest Rate at 4.6% | ||
Debt Instrument [Line Items] | ||
Maturity Date | Aug. 19, 2020 | Aug. 19, 2019 |
Debt Instrument, outstanding borrowing | $ 191,164,000 | |
Index Rate | 1 Month Libor | |
Asset-specific financing principal amount | $ 750,000,000 | |
Repurchase Agreements | Barclays | Debt Instrument, Interest Rate at 3.3% | ||
Debt Instrument [Line Items] | ||
Maturity Date | Aug. 13, 2022 | |
Line of credit facility, maximum borrowing capacity | $ 750,000,000 | |
Line of credit facility, initial maturity date | Aug. 13, 2022 | |
Debt Instrument, outstanding borrowing | $ 431,760,000 | |
Index Rate | 1 Month Libor | |
Asset-specific financing principal amount | $ 750,000,000 | |
Repurchase Agreements | JP Morgan | Debt Instrument, Interest Rate at 4.6% | ||
Debt Instrument [Line Items] | ||
Maturity Date | Aug. 19, 2022 | Aug. 20, 2021 |
Debt Instrument, outstanding borrowing | $ 185,529,000 | |
Index Rate | 1 Month Libor | |
Asset-specific financing principal amount | $ 400,000,000 | |
Repurchase Agreements | JP Morgan | Debt Instrument, Interest Rate at 3.3% | ||
Debt Instrument [Line Items] | ||
Maturity Date | Aug. 20, 2021 | |
Debt Instrument, outstanding borrowing | $ 218,448,000 | |
Index Rate | 1 Month Libor | |
Asset-specific financing principal amount | $ 400,000,000 | |
Repurchase Agreements | Commercial Real Estate Debt Securities | ||
Debt Instrument [Line Items] | ||
Debt Instrument, outstanding borrowing | 692,798,000 | 32,697,000 |
Asset-specific financing principal amount | $ 692,798,000 | $ 200,000,000 |
Repurchase Agreements | Commercial Mortgage Loans | ||
Debt Instrument [Line Items] | ||
Number of repurchase agreements | Agreement | 60 | 51 |
Repurchase Agreements | Holdco | ||
Debt Instrument [Line Items] | ||
Recourse guarantee percentage | 25.00% | |
Repurchase Agreements | Holdco | Commercial Real Estate Debt Securities | ||
Debt Instrument [Line Items] | ||
Recourse guarantee percentage | 100.00% | |
Asset-specific Financing, Secured Revolving Repurchase Agreements and Senior Secured and Secured Credit Agreements | ||
Debt Instrument [Line Items] | ||
Recourse guarantee percentage | 25.00% | 25.00% |
Number of repurchase agreements | Agreement | 4 | 2 |
Asset-specific Financing, Secured Revolving Repurchase Agreements and Senior Secured and Secured Credit Agreements | CRE CLO Investments | ||
Debt Instrument [Line Items] | ||
Number of repurchase agreements | Agreement | 35 | |
Asset-specific Financing, Secured Revolving Repurchase Agreements and Senior Secured and Secured Credit Agreements | Commercial Mortgage-Backed Securities | ||
Debt Instrument [Line Items] | ||
Number of repurchase agreements | Agreement | 2 | 2 |
Summary of Repurchase Agreement
Summary of Repurchase Agreements Secured by Commercial Mortgage Loans, CRE Debt Securities and Counterparty Concentration (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Repurchase Agreement Counterparty [Line Items] | ||
Commitment Amount | $ 660,000 | $ 660,000 |
Commercial Mortgage Loans | ||
Repurchase Agreement Counterparty [Line Items] | ||
Commitment Amount | 3,302,240 | 2,612,840 |
UPB of Collateral | 2,418,757 | 1,575,146 |
Carrying Value of Collateral | 2,415,038 | 1,572,321 |
Amounts Payable under Secured Revolving Repurchase Agreements | 1,624,172 | 1,014,555 |
Net Counterparty Exposure | $ 790,866 | $ 557,766 |
Days to Extended Maturity | 1062 days | 1125 days |
CRE Debt Securities | ||
Repurchase Agreement Counterparty [Line Items] | ||
Commitment Amount | $ 692,798 | $ 200,000 |
UPB of Collateral | 799,887 | 38,517 |
Carrying Value of Collateral | 803,412 | 36,414 |
Amounts Payable under Secured Revolving Repurchase Agreements | 693,690 | 32,984 |
Net Counterparty Exposure | $ 109,722 | $ 3,430 |
Days to Extended Maturity | 16 days | 2 days |
Commercial Mortgage Loans and CRE Debt Securities | ||
Repurchase Agreement Counterparty [Line Items] | ||
Commitment Amount | $ 3,995,038 | $ 2,812,840 |
UPB of Collateral | 3,218,644 | 1,613,663 |
Carrying Value of Collateral | 3,218,450 | 1,608,735 |
Amounts Payable under Secured Revolving Repurchase Agreements | 2,317,862 | 1,047,539 |
Net Counterparty Exposure | $ 900,588 | $ 561,196 |
Days to Extended Maturity | 685 days | 1083 days |
Barclays | Commercial Mortgage Loans | ||
Repurchase Agreement Counterparty [Line Items] | ||
Commitment Amount | $ 750,000 | |
UPB of Collateral | 542,927 | |
Carrying Value of Collateral | 542,191 | |
Amounts Payable under Secured Revolving Repurchase Agreements | 432,399 | |
Net Counterparty Exposure | $ 109,792 | |
Percent of Stockholders' Equity | 7.50% | |
Days to Extended Maturity | 956 days | |
Morgan Stanley Bank | Commercial Mortgage Loans | ||
Repurchase Agreement Counterparty [Line Items] | ||
Commitment Amount | $ 500,000 | $ 500,000 |
UPB of Collateral | 519,638 | 244,936 |
Carrying Value of Collateral | 518,048 | 245,932 |
Amounts Payable under Secured Revolving Repurchase Agreements | 395,356 | 183,901 |
Net Counterparty Exposure | $ 122,692 | $ 62,031 |
Percent of Stockholders' Equity | 8.40% | 4.70% |
US Bank | Commercial Mortgage Loans | ||
Repurchase Agreement Counterparty [Line Items] | ||
Commitment Amount | $ 152,240 | $ 212,840 |
UPB of Collateral | 173,741 | 262,929 |
Carrying Value of Collateral | 173,045 | 261,916 |
Amounts Payable under Secured Revolving Repurchase Agreements | 136,734 | 206,422 |
Net Counterparty Exposure | $ 36,311 | $ 55,494 |
Percent of Stockholders' Equity | 2.50% | 4.20% |
Days to Extended Maturity | 1652 days | 1743 days |
Goldman Sachs | Commercial Mortgage Loans | ||
Repurchase Agreement Counterparty [Line Items] | ||
Commitment Amount | $ 750,000 | $ 750,000 |
UPB of Collateral | 288,032 | 474,243 |
Carrying Value of Collateral | 289,674 | 472,797 |
Amounts Payable under Secured Revolving Repurchase Agreements | 45,900 | 191,705 |
Net Counterparty Exposure | $ 243,774 | $ 281,092 |
Percent of Stockholders' Equity | 16.60% | 21.20% |
Days to Extended Maturity | 962 days | 231 days |
Goldman Sachs | CRE Debt Securities | ||
Repurchase Agreement Counterparty [Line Items] | ||
Commitment Amount | $ 81,143 | $ 100,000 |
UPB of Collateral | 94,629 | 38,517 |
Carrying Value of Collateral | 108,414 | 36,414 |
Amounts Payable under Secured Revolving Repurchase Agreements | 81,362 | 32,984 |
Net Counterparty Exposure | $ 27,052 | $ 3,430 |
Percent of Stockholders' Equity | 1.80% | 0.30% |
Days to Extended Maturity | 12 days | 2 days |
JP Morgan | Commercial Mortgage Loans | ||
Repurchase Agreement Counterparty [Line Items] | ||
Commitment Amount | $ 400,000 | $ 400,000 |
UPB of Collateral | 300,677 | 254,026 |
Carrying Value of Collateral | 297,248 | 253,145 |
Amounts Payable under Secured Revolving Repurchase Agreements | 218,744 | 185,892 |
Net Counterparty Exposure | $ 78,504 | $ 67,253 |
Percent of Stockholders' Equity | 5.40% | 5.10% |
Days to Extended Maturity | 1328 days | 1693 days |
JP Morgan | CRE Debt Securities | ||
Repurchase Agreement Counterparty [Line Items] | ||
Commitment Amount | $ 475,881 | |
UPB of Collateral | 544,105 | |
Carrying Value of Collateral | 546,260 | |
Amounts Payable under Secured Revolving Repurchase Agreements | 476,307 | |
Net Counterparty Exposure | $ 69,953 | |
Percent of Stockholders' Equity | 4.80% | |
Days to Extended Maturity | 17 days | |
Wells Fargo | Commercial Mortgage Loans | ||
Repurchase Agreement Counterparty [Line Items] | ||
Commitment Amount | $ 750,000 | $ 750,000 |
UPB of Collateral | 593,742 | 339,012 |
Carrying Value of Collateral | 594,832 | 338,531 |
Amounts Payable under Secured Revolving Repurchase Agreements | 395,039 | 246,635 |
Net Counterparty Exposure | $ 199,793 | $ 91,896 |
Percent of Stockholders' Equity | 13.60% | 6.90% |
Days to Extended Maturity | 839 days | 876 days |
Wells Fargo | CRE Debt Securities | ||
Repurchase Agreement Counterparty [Line Items] | ||
Commitment Amount | $ 135,774 | |
UPB of Collateral | 161,153 | |
Carrying Value of Collateral | 148,738 | |
Amounts Payable under Secured Revolving Repurchase Agreements | 136,021 | |
Net Counterparty Exposure | $ 12,717 | |
Percent of Stockholders' Equity | 0.90% | |
Days to Extended Maturity | 16 days | |
Royal Bank of Canada | CRE Debt Securities | ||
Repurchase Agreement Counterparty [Line Items] | ||
Commitment Amount | $ 100,000 |
Summary of Repurchase Agreeme_2
Summary of Repurchase Agreements Secured by Commercial Mortgage Loans, CRE Debt Securities and Counterparty Concentration (Parenthetical) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Repurchase Agreement Counterparty [Line Items] | |||
Interest receivable | [1] | $ 28,107 | $ 20,731 |
Accrued Interest Payable | [1] | 6,665 | 6,146 |
Unamortized deferred financing fees | 6,700 | ||
Commercial Mortgage Loans | |||
Repurchase Agreement Counterparty [Line Items] | |||
Interest receivable | 13,000 | 14,500 | |
Premium, discount and origination fees | 16,700 | 17,300 | |
Accrued Interest Payable | 2,500 | 3,100 | |
Unamortized deferred financing fees | 10,300 | ||
CRE Debt Securities | |||
Repurchase Agreement Counterparty [Line Items] | |||
Interest receivable | 2,300 | 100 | |
Premium, discount and origination fees | 1,200 | 2,200 | |
Accrued Interest Payable | $ 900 | $ 300 | |
[1] | The Company’s consolidated Total Assets and Total Liabilities at December 31, 2019 include the assets and liabilities of variable interest entities (“VIEs”) of $2.2 billion and $1.8 billion, respectively. The Company’s Total Assets and Total Liabilities at December 31, 2018 include assets and liabilities of VIEs of $1.9 billion and $1.5 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to those assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details |
Schedule of Maturities - Schedu
Schedule of Maturities - Schedule of Future Principal Payments (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Collateralized Loan Obligation | |
Debt Instrument [Line Items] | |
2020 | $ 632,585 |
2021 | 600,650 |
2022 | 554,541 |
2023 | 32,284 |
Total | 1,820,060 |
Asset-specific Financing | |
Debt Instrument [Line Items] | |
2020 | 77,000 |
Total | 77,000 |
Senior Secured and Secured Credit Agreements | |
Debt Instrument [Line Items] | |
2020 | 145,637 |
Total | 145,637 |
Secured Revolving Repurchase Agreements | |
Debt Instrument [Line Items] | |
2020 | 1,325,373 |
2021 | 503,126 |
2022 | 485,918 |
Total | $ 2,314,417 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | ||
Money market funds | $ 75,900,000 | |
Threshold period of delinquency | 90 days | |
Market spread | one-month LIBOR | |
Transfers of financial assets or liabilities with in fair value hierarchy | $ 0 | $ 0 |
Estimated fair value of loans held for investment | $ 5,000,000,000 | $ 4,320,000,000 |
Weighted average gross spread percentage | 3.48% | 3.90% |
Weighted average maturity period | 3 years 9 months 18 days | 3 years 10 months 24 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 | Dec. 31, 2019 | Dec. 31, 2018 |
Carrying Value | Loans Held for Investment | ||
Financial Assets | ||
Financial Assets, Nonrecurring | $ 4,980,389 | $ 4,293,787 |
Carrying Value | Term Loan Facility | ||
Financial Liabilities | ||
Financial Liabilities, Nonrecurring | 113,504 | |
Carrying Value | Collateralized Loan Obligation | ||
Financial Liabilities | ||
Financial Liabilities, Nonrecurring | 1,806,428 | 1,509,930 |
Carrying Value | Secured Financing Arrangements | ||
Financial Liabilities | ||
Financial Liabilities, Nonrecurring | 2,525,128 | 1,526,449 |
Estimate of Fair Value Measurement | Level III | Loans Held for Investment | ||
Financial Assets | ||
Financial Assets, Nonrecurring | 5,004,379 | 4,317,844 |
Estimate of Fair Value Measurement | Level III | Term Loan Facility | ||
Financial Liabilities | ||
Financial Liabilities, Nonrecurring | 113,504 | |
Estimate of Fair Value Measurement | Level III | Collateralized Loan Obligation | ||
Financial Liabilities | ||
Financial Liabilities, Nonrecurring | 1,806,428 | 1,509,930 |
Estimate of Fair Value Measurement | Level III | Secured Financing Arrangements | ||
Financial Liabilities | ||
Financial Liabilities, Nonrecurring | $ 2,525,128 | $ 1,526,449 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax [Line Items] | |||
Reserve for uncertain income tax positions | $ 0 | $ 0 | |
Interest for underpayment of income taxes | 0 | 0 | |
Penalties for underpayment of income taxes | $ 0 | $ 0 | |
Effective income tax rate | 0.50% | 0.30% | 0.20% |
Deferred tax assets | $ 0 | ||
TRSs | |||
Income Tax [Line Items] | |||
Deferred tax assets | 0 | $ 0 | |
Deferred tax liabilities | $ 0 | $ 0 | |
REIT Subsidiaries | |||
Income Tax [Line Items] | |||
Equity interest percentage by parent | 100.00% |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Treatment for Common Stock Dividend Declared Per Share (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax [Line Items] | |||
Total dividends | $ 1.72 | $ 1.71 | $ 1.56 |
Class A Common Stock | |||
Income Tax [Line Items] | |||
Ordinary income dividends | 1.72 | 1.70 | 1.52 |
Capital gain dividends | 0.01 | 0.04 | |
Total dividends | $ 1.72 | $ 1.71 | $ 1.56 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) | Jul. 25, 2017 | Dec. 15, 2014 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | ||||||
Incentive management fee percentage of Core Earnings less seven percent of stockholders equity | 20.00% | |||||
Collateral (loans), Outstanding Principal | $ 182,882,000 | $ 663,381,000 | ||||
Management fees, incentive management fees, and collateral management fees payable | [1] | $ 9,520,000 | 5,996,000 | |||
Termination fee, description | A termination fee would be due to the Manager upon termination of the Management Agreement by the Company absent a cause event. The termination fee would also be payable to the Manager upon termination of the Management Agreement by the Manager if the Company materially breaches the Management Agreement. The termination fee is equal to three times the sum of (x) the average annual base management fee and (y) the average annual incentive compensation earned by the Manager, in each case during the 24-month period immediately preceding the most recently completed calendar quarter prior to the date of termination | |||||
Management Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Percentage of annual base management fee | 1.50% | |||||
Percentage of quarterly base management fee | 0.375% | |||||
Incentive management fee, description | The Manager is also entitled to incentive compensation which is calculated and payable in cash with respect to each calendar quarter in arrears in an amount, not less than zero, equal to the difference between: (1) the product of (a) 20% and (b) the difference between (i) the Company’s Core Earnings for the most recent 12-month period, including the calendar quarter (or part thereof) for which the calculation of incentive compensation is being made (the “applicable period”), and (ii) the product of (A) the Company’s Equity in the most recent 12-month, including the applicable period, and (B) 7% per annum; and (2) the sum of any incentive compensation paid to the Manager with respect to the first three calendar quarters of the most recent 12-month period. No incentive compensation is payable to the Manager with respect to any calendar quarter unless Core Earnings for the 12 most recently completed calendar quarters (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 specifies that equity securities of the Company or any of the Company’s subsidiaries that are entitled to a specified periodic distribution or have other debt characteristics will not constitute equity securities and will not be included in “Equity” for the purpose of calculating incentive compensation. Instead, the aggregate distribution amount that accrues to such equity securities during the calendar quarter of such calculation will be subtracted from Core Earnings, before incentive compensation for purposes of calculating incentive compensation, unless such distribution is otherwise excluded from Core Earnings. | |||||
Percentage multiplied by stockholders equity included in incentive management fee | 7.00% | |||||
Management 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] | ||||||
Percentage of annual base management fee | 1.25% | |||||
Incentive management fee, description | Manager was entitled to an incentive management fee each calendar quarter in arrears in an amount, not less than zero, equal to (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% | |||||
Description of management and incentive management fee calculation | For the year ended December 31, 2017, the management fee and incentive management fee were calculated under both the pre-IPO and post-IPO Management Agreements. | |||||
Pre-IPO Management Agreement | 2014 Collateralized Loan Obligation | ||||||
Related Party Transaction [Line Items] | ||||||
Percentage of collateral management fee | 0.075% | |||||
Collateral (loans), Outstanding Principal | $ 0 | 0 | ||||
Pre-IPO and Post-IPO Management Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Management fees, incentive management fees, and collateral management fees payable | 7,300,000 | 6,100,000 | ||||
Post-IPO Management Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Amount incurred and reimbursable | 1,000,000 | 1,200,000 | $ 1,000,000 | |||
Reimbursable expenses remained outstanding | $ 2,300,000 | $ 0 | ||||
[1] | The Company’s consolidated Total Assets and Total Liabilities at December 31, 2019 include the assets and liabilities of variable interest entities (“VIEs”) of $2.2 billion and $1.8 billion, respectively. The Company’s Total Assets and Total Liabilities at December 31, 2018 include assets and liabilities of VIEs of $1.9 billion and $1.5 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to those assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details |
Related Party Transactions - Su
Related Party Transactions - Summary of Management Agreement Fees Incurred and Paid Related to Pre-IPO and Post-IPO Management Agreements and Collateral Management Agreement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Post-IPO Management Agreement | |||
Related Party Transaction [Line Items] | |||
Management Agreement and Collateral Management fees incurred | $ 28,717 | $ 23,748 | $ 8,636 |
Management Agreement and Collateral Management fees paid | $ 27,565 | $ 22,818 | 1,079 |
Pre-IPO Management Agreement | |||
Related Party Transaction [Line Items] | |||
Management Agreement and Collateral Management fees incurred | 10,023 | ||
Management Agreement and Collateral Management fees paid | $ 15,311 |
Earnings per Share - Additional
Earnings per Share - Additional Information (Details) - USD ($) $ in Millions | Jul. 03, 2017 | Dec. 31, 2019 | Dec. 31, 2018 |
Earnings Per Share [Abstract] | |||
Dividends declared | $ 0.3 | $ 0.2 | |
Undistributed net income attributable to common stockholders | $ 0.3 | $ 0.2 | |
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 | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Net Income Attributable to TPG RE Finance Trust, Inc. | $ 32,902 | $ 33,022 | $ 31,965 | $ 28,409 | $ 28,565 | $ 26,824 | $ 26,438 | $ 25,111 | $ 126,298 | $ 106,938 | $ 94,336 |
Participating Securities' Share in Earnings | (676) | (194) | |||||||||
Net Income Attributable to Common Stockholders | $ 125,622 | $ 106,744 | $ 94,336 | ||||||||
Weighted Average Common Shares Outstanding, Basic and Diluted | 72,743,171 | 63,034,806 | 54,194,596 | ||||||||
Per Common Share Amount, Basic and Diluted | $ 0.44 | $ 0.44 | $ 0.43 | $ 0.42 | $ 0.43 | $ 0.42 | $ 0.44 | $ 0.42 | $ 1.73 | $ 1.70 | $ 1.74 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) | Dec. 17, 2019 | Mar. 07, 2019 | Aug. 10, 2018 | Feb. 28, 2018 | Aug. 22, 2017 | Jul. 25, 2017 | Jul. 03, 2017 | Jan. 31, 2019 | Feb. 28, 2018 | Apr. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Aug. 21, 2017 | Aug. 17, 2017 | ||
Class Of Stock [Line Items] | ||||||||||||||||||
Common stock, par value | $ 0.001 | $ 0.001 | ||||||||||||||||
Proceeds from issuance of common stock | $ 174,549,000 | $ 139,440,000 | $ 243,654,000 | |||||||||||||||
Proceeds from initial public offering | $ 199,400,000 | |||||||||||||||||
Payment of underwriting discounts | 13,200,000 | |||||||||||||||||
Estimated offering expenses payable | $ 7,400,000 | |||||||||||||||||
Dividend payable declared date | Jul. 3, 2017 | Jul. 25, 2017 | ||||||||||||||||
Dividend payable date | Jul. 25, 2017 | Jul. 3, 2017 | ||||||||||||||||
Preferred stock, shares issued | 125 | 0 | ||||||||||||||||
Preferred stock shares, retained | 125 | 0 | ||||||||||||||||
Proceeds from issuance of preferred stock | $ 125,000 | |||||||||||||||||
Redemption of preferred stock | $ (125,000) | |||||||||||||||||
Unpaid dividends | $ 32,800,000 | $ 32,835,000 | [1] | $ 28,981,000 | [1] | 23,068,000 | ||||||||||||
Goldman Sachs & Co. LLC | ||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||
Number of common shares issued | 35,000,000 | |||||||||||||||||
Description on purchase plan agreement | as the Company’s agent, to buy in the open market up to $35.0 million in shares of the Company’s common stock in the aggregate during the period beginning on or about August 21, 2017. On August 1, 2018, the Company’s Board of Directors authorized the Company to extend the repurchase period for the remaining capital committed to the 10b5-1 Purchase Plan to February 28, 2019. No other changes to the terms of the 10b5-1 Purchase Plan were authorized. | |||||||||||||||||
Stock repurchased during period, shares | 2,324 | |||||||||||||||||
Average price of repurchased shares | $ 18.27 | |||||||||||||||||
Stock repurchased during period, value | $ 400,000 | |||||||||||||||||
Purchase plan, expiration date | Feb. 28, 2019 | |||||||||||||||||
Class A Common Stock | ||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||
Common stock, par value | $ 0.001 | $ 0.001 | ||||||||||||||||
Number of common shares issued | 230,815 | |||||||||||||||||
Proceeds from issuance of common stock | $ 365,000 | |||||||||||||||||
Dividend declared per share | $ 0.43 | |||||||||||||||||
Dividends | $ 128,400,000 | $ 109,100,000 | ||||||||||||||||
Series A Preferred Stock | ||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||
Preferred stock, shares issued | 625 | |||||||||||||||||
Preferred stock shares, retained | 500 | |||||||||||||||||
Issuance of SubREIT Preferred Stock, Shares | 125 | |||||||||||||||||
Proceeds from issuance of preferred stock | $ 100,000 | |||||||||||||||||
Redemption of preferred stock | $ 100,000 | $ 100,000 | ||||||||||||||||
Dividend rate | 12.50% | |||||||||||||||||
Preferred stock, liquidation preference per annum | $ 1,000 | |||||||||||||||||
Common Stock and Class A Common Stock | ||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||
Dividend payable date | Jan. 24, 2020 | |||||||||||||||||
Dividend record date | Dec. 27, 2019 | Dec. 27, 2019 | ||||||||||||||||
Initial Public Offering | ||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||
Proceeds from issuance of common stock | $ 12,200,000 | |||||||||||||||||
Payment of underwriting discounts | $ 800,000 | |||||||||||||||||
Exercise of stock option to purchase additional shares | 1,650,000 | |||||||||||||||||
Shares of common stock purchased by underwriters | 650,000 | |||||||||||||||||
Common Stock | ||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||
Number of common shares issued | 7,000,000 | 9,224,268 | 6,900,000 | 8,875,760 | 7,019,352 | 12,642,166 | ||||||||||||
Proceeds from issuance of common stock | $ 138,700,000 | $ 136,500,000 | ||||||||||||||||
Shares issued, price per share | $ 19.82 | $ 19.80 | ||||||||||||||||
Offering costs reimbursed by manager | $ 700,000 | $ 300,000 | ||||||||||||||||
Dividend declared per share | $ 0.43 | |||||||||||||||||
Common Stock | Initial Public Offering | ||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||
Number of common shares issued | 11,000,000 | |||||||||||||||||
Shares issued, price per share | $ 20 | |||||||||||||||||
Equity Distribution Agreement | ||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||
Common stock, par value | $ 0.001 | |||||||||||||||||
Equity Distribution Agreement | Common Stock | ||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||
Number of common shares issued | 1,900,000 | |||||||||||||||||
Weighted average price per share | $ 20.42 | |||||||||||||||||
Proceeds from issuance of common stock | $ 38,000,000 | |||||||||||||||||
Payments for commissions | 500,000 | |||||||||||||||||
Equity Distribution Agreement | Common Stock | Maximum | ||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||
Aggregate gross sales price of common stock | $ 125,000,000 | |||||||||||||||||
Percentage of commission to each sales agent, on gross sales price of shares sold | 1.75% | |||||||||||||||||
[1] | The Company’s consolidated Total Assets and Total Liabilities at December 31, 2019 include the assets and liabilities of variable interest entities (“VIEs”) of $2.2 billion and $1.8 billion, respectively. The Company’s Total Assets and Total Liabilities at December 31, 2018 include assets and liabilities of VIEs of $1.9 billion and $1.5 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to those assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details |
Share-based Incentive Plan - Ad
Share-based Incentive Plan - Additional Information (Details) - USD ($) | Dec. 17, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | May 14, 2019 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock Compensation Expense | $ 2,556,000 | $ 665,000 | $ 33,000 | ||
Accrued shares of common stock for dividends | 420 | ||||
Common Stock And Class A Common Stock | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Dividend record date | Dec. 27, 2019 | Dec. 27, 2019 | |||
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 | ||||
Number of shares awarded for grant | 0 | ||||
Share vesting installment period | 4 years | ||||
Total unrecognized compensation cost relating to unvested share-based compensation arrangements | $ 11,700,000 | ||||
Unrecognized compensation cost, recognition period | 1 year 8 months 12 days | ||||
Stock Compensation Expense | $ 2,600,000 | $ 700,000 | $ 300 | ||
Deferred Stock Units | Board of Directors | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Deferred stock units, value | $ 300,000 |
Share-based Incentive Plan - Sc
Share-based Incentive Plan - Schedule of Outstanding Shares of Common Stock and Weighted-average Grant Date Fair Value Per Share (Details) - 2017 Equity Incentive Plan - Common Stock - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common Stock, Beginning Balance | 333,969 | 75,360 | |
Common Stock, Granted | 396,410 | 278,540 | 75,360 |
Common Stock, Vested | (100,305) | (19,352) | |
Common Stock, Forfeited | (6,068) | (579) | |
Common Stock, Ending Balance | 624,006 | 333,969 | 75,360 |
Weighted-Average Grant Date Fair Value Per Share, Beginning Balance | $ 18.94 | $ 19.44 | |
Weighted-Average Grant Date Fair Value Per Share, Granted | 20.52 | 18.84 | $ 19.44 |
Weighted-Average Grant Date Fair Value Per Share, Vested | 19.02 | 19.44 | |
Weighted-Average Grant Date Fair Value Per Share, Forfeited | 18.78 | 19.44 | |
Weighted-Average Grant Date Fair Value Per Share, Ending Balance | $ 19.93 | $ 18.94 | $ 19.44 |
Share-based Incentive Plan - _2
Share-based Incentive Plan - Schedule of Awarded Shares Vesting Period (Details) - 2017 Equity Incentive Plan - Common Stock | 12 Months Ended |
Dec. 31, 2019shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Shares of common stock expected to vest | 624,006 |
2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Shares of common stock expected to vest | 229,521 |
2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Shares of common stock expected to vest | 229,522 |
2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Shares of common stock expected to vest | 102,389 |
2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Shares of common stock expected to vest | 62,574 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Commitments And Contingencies Disclosure [Abstract] | ||
Unfunded commitments related to loans held for investment | $ 630.6 | $ 634.2 |
Concentration of Credit Risk -
Concentration of Credit Risk - Summary of Loan Portfolio by Property Type (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 5,628,765 | $ 4,947,749 |
Unfunded Commitment | $ 630,589 | $ 634,158 |
% of Loan Commitment | 100.00% | 100.00% |
Loan UPB | $ 4,998,176 | $ 4,313,591 |
% of Loan UPB | 100.00% | 100.00% |
Office | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 2,925,749 | $ 1,898,511 |
Unfunded Commitment | $ 438,800 | $ 316,510 |
% of Loan Commitment | 52.00% | 38.50% |
Loan UPB | $ 2,486,949 | $ 1,582,001 |
% of Loan UPB | 49.90% | 36.80% |
Multifamily | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 1,104,946 | $ 1,247,860 |
Unfunded Commitment | $ 69,061 | $ 131,177 |
% of Loan Commitment | 19.60% | 25.20% |
Loan UPB | $ 1,035,885 | $ 1,116,683 |
% of Loan UPB | 20.70% | 25.90% |
Mixed Use | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 604,993 | $ 838,200 |
Unfunded Commitment | $ 78,835 | $ 114,748 |
% of Loan Commitment | 10.70% | 16.90% |
Loan UPB | $ 526,158 | $ 723,452 |
% of Loan UPB | 10.50% | 16.80% |
Hotel | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 752,293 | $ 508,450 |
Unfunded Commitment | $ 40,088 | $ 10,896 |
% of Loan Commitment | 13.40% | 10.30% |
Loan UPB | $ 712,205 | $ 497,554 |
% of Loan UPB | 14.20% | 11.50% |
Retail | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 33,000 | $ 233,555 |
Unfunded Commitment | $ 2,281 | $ 50,247 |
% of Loan Commitment | 0.60% | 4.70% |
Loan UPB | $ 30,719 | $ 183,308 |
% of Loan UPB | 0.60% | 4.20% |
Condominium | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 95,784 | $ 154,673 |
Unfunded Commitment | $ 1,524 | $ 10,580 |
% of Loan Commitment | 1.70% | 3.10% |
Loan UPB | $ 94,260 | $ 144,093 |
% of Loan UPB | 1.90% | 3.30% |
Industrial Property | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 66,500 | |
% of Loan Commitment | 1.30% | |
Loan UPB | $ 66,500 | |
% of Loan UPB | 1.50% | |
Other | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 112,000 | |
% of Loan Commitment | 2.00% | |
Loan UPB | $ 112,000 | |
% of Loan UPB | 2.20% |
Concentration of Credit Risk _2
Concentration of Credit Risk - Summary of Geographic Composition of Loans Held for Investment Based on Current UPB and Loan Commitment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 5,628,765 | $ 4,947,749 |
Unfunded Commitment | $ 630,589 | $ 634,158 |
% Loan Commitment | 100.00% | 100.00% |
Loan UPB | $ 4,998,176 | $ 4,313,591 |
% Loan UPB | 100.00% | 100.00% |
East | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 2,182,659 | $ 2,084,807 |
Unfunded Commitment | $ 214,938 | $ 170,131 |
% Loan Commitment | 38.70% | 42.10% |
Loan UPB | $ 1,967,721 | $ 1,914,676 |
% Loan UPB | 39.40% | 44.40% |
South | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 1,342,794 | $ 1,525,173 |
Unfunded Commitment | $ 124,939 | $ 270,933 |
% Loan Commitment | 23.90% | 30.80% |
Loan UPB | $ 1,217,855 | $ 1,254,240 |
% Loan UPB | 24.40% | 29.10% |
West | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 1,397,431 | $ 760,416 |
Unfunded Commitment | $ 201,690 | $ 100,422 |
% Loan Commitment | 24.80% | 15.40% |
Loan UPB | $ 1,195,741 | $ 659,994 |
% Loan UPB | 23.90% | 15.30% |
Midwest | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 482,804 | $ 577,353 |
Unfunded Commitment | $ 83,178 | $ 92,672 |
% Loan Commitment | 8.60% | 11.70% |
Loan UPB | $ 399,626 | $ 484,681 |
% Loan UPB | 8.00% | 11.20% |
Various | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 223,077 | |
Unfunded Commitment | $ 5,844 | |
% Loan Commitment | 4.00% | |
Loan UPB | $ 217,233 | |
% Loan UPB | 4.30% |
Concentration of Credit Risk _3
Concentration of Credit Risk - Summary of Loan Portfolio by Loan Category Type (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 5,628,765 | $ 4,947,749 |
Unfunded Commitment | $ 630,589 | $ 634,158 |
% Loan Commitment | 100.00% | 100.00% |
Loan UPB | $ 4,998,176 | $ 4,313,591 |
% Loan UPB | 100.00% | 100.00% |
Bridge | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 2,001,962 | $ 2,414,456 |
Unfunded Commitment | $ 49,057 | $ 199,397 |
% Loan Commitment | 35.60% | 48.80% |
Loan UPB | $ 1,952,905 | $ 2,215,059 |
% Loan UPB | 39.10% | 51.30% |
Light Transitional | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 1,890,762 | $ 1,513,227 |
Unfunded Commitment | $ 219,138 | $ 212,290 |
% Loan Commitment | 33.60% | 30.60% |
Loan UPB | $ 1,671,624 | $ 1,300,937 |
% Loan UPB | 33.40% | 30.20% |
Moderate Transitional | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 1,701,041 | $ 1,020,066 |
Unfunded Commitment | $ 347,394 | $ 222,471 |
% Loan Commitment | 30.20% | 20.60% |
Loan UPB | $ 1,353,647 | $ 797,595 |
% Loan UPB | 27.10% | 18.50% |
Construction | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 35,000 | |
Unfunded Commitment | $ 15,000 | |
% Loan Commitment | 0.60% | |
Loan UPB | $ 20,000 | |
% Loan UPB | 0.40% |
Summary of Quarterly Results _3
Summary of Quarterly Results of Operations (unaudited) - Schedule of Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net interest income and total other revenue | $ 42,183 | $ 44,648 | $ 42,240 | $ 37,656 | $ 36,584 | $ 35,511 | $ 35,048 | $ 33,733 | |||
Net income attributable to TPG RE Finance Trust, Inc. | $ 32,902 | $ 33,022 | $ 31,965 | $ 28,409 | $ 28,565 | $ 26,824 | $ 26,438 | $ 25,111 | $ 126,298 | $ 106,938 | $ 94,336 |
Basic and diluted | $ 0.44 | $ 0.44 | $ 0.43 | $ 0.42 | $ 0.43 | $ 0.42 | $ 0.44 | $ 0.42 | $ 1.73 | $ 1.70 | $ 1.74 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) $ / shares in Units, $ in Thousands | Jan. 24, 2020USD ($)$ / sharesshares | Jul. 03, 2017 | Feb. 18, 2020USD ($)LoanInvestment | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 17, 2019USD ($)$ / shares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($) | ||
Subsequent Event [Line Items] | |||||||||
Loan commitments | $ 5,628,765 | $ 4,947,749 | |||||||
Aggregate face value of debt securities | $ 4,998,176 | ||||||||
Dividend payable date | Jul. 25, 2017 | Jul. 3, 2017 | |||||||
Dividends Payable | $ 32,835 | [1] | $ 32,800 | $ 28,981 | [1] | $ 23,068 | |||
Common stock, shares outstanding | shares | 74,886,113 | 66,020,387 | |||||||
Common stock, par value | $ / shares | $ 0.001 | $ 0.001 | |||||||
Class A Common Stock | |||||||||
Subsequent Event [Line Items] | |||||||||
Dividend amount per share | $ / shares | $ 0.43 | ||||||||
Common stock, shares outstanding | shares | 1,136,665 | 1,143,313 | |||||||
Common stock, par value | $ / shares | $ 0.001 | $ 0.001 | |||||||
Common Stock | |||||||||
Subsequent Event [Line Items] | |||||||||
Dividend amount per share | $ / shares | $ 0.43 | ||||||||
Subsequent Event | Class A Shares Converted in to Common Stock | |||||||||
Subsequent Event [Line Items] | |||||||||
Common stock, shares issued | shares | 1,136,665 | ||||||||
Subsequent Event | Class A Common Stock | |||||||||
Subsequent Event [Line Items] | |||||||||
Common stock, shares outstanding | shares | 0 | ||||||||
Subsequent Event | Common Stock | |||||||||
Subsequent Event [Line Items] | |||||||||
Dividend payable date | Jan. 24, 2020 | ||||||||
Dividend record date | Dec. 27, 2019 | ||||||||
Dividend amount per share | $ / shares | $ 0.43 | ||||||||
Dividends Payable | $ 32,800 | ||||||||
Subsequent Event | Commercial Real Estate Debt Securities | |||||||||
Subsequent Event [Line Items] | |||||||||
Number of debt securities acquired | Investment | 10 | ||||||||
Aggregate face value of debt securities | $ 169,000 | ||||||||
Subsequent Event | Senior Mortgage Loan | |||||||||
Subsequent Event [Line Items] | |||||||||
Number of first mortgage loans originated | Loan | 8 | ||||||||
Loan commitments | $ 857,700 | ||||||||
Expected initial unpaid principal balance | $ 737,100 | ||||||||
[1] | The Company’s consolidated Total Assets and Total Liabilities at December 31, 2019 include the assets and liabilities of variable interest entities (“VIEs”) of $2.2 billion and $1.8 billion, respectively. The Company’s Total Assets and Total Liabilities at December 31, 2018 include assets and liabilities of VIEs of $1.9 billion and $1.5 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to those assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details |
Schedule IV - Mortgage Loans _2
Schedule IV - Mortgage Loans on Real Estate (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Mortgage Loans on Real Estate [Line Items] | ||||
Market spread | one-month LIBOR | |||
Unpaid Principal Balance | $ 4,998,176 | |||
Carrying Amount of Loans | $ 4,980,389 | $ 4,293,787 | $ 3,175,672 | $ 2,449,990 |
Senior Loans in Excess of 3% of the Carrying Amount of Total Loans | NY | Borrower A | Office | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Interest Payment Rates | 2.90% | |||
Extended Maturity Date | 2024 | |||
Periodic Payment Terms | I/O | |||
Unpaid Principal Balance | $ 316,127 | |||
Carrying Amount of Loans | $ 315,046 | |||
Senior Loans in Excess of 3% of the Carrying Amount of Total Loans | NY | Borrower E | Office | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Interest Payment Rates | 2.90% | |||
Extended Maturity Date | 2024 | |||
Periodic Payment Terms | I/O | |||
Unpaid Principal Balance | $ 165,702 | |||
Carrying Amount of Loans | $ 164,153 | |||
Senior Loans in Excess of 3% of the Carrying Amount of Total Loans | GA | Borrower B | Office | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Interest Payment Rates | 3.40% | |||
Extended Maturity Date | 2024 | |||
Periodic Payment Terms | I/O | |||
Unpaid Principal Balance | $ 167,791 | |||
Carrying Amount of Loans | $ 166,324 | |||
Senior Loans in Excess of 3% of the Carrying Amount of Total Loans | MI | Borrower C | Office | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Interest Payment Rates | 3.60% | |||
Extended Maturity Date | 2024 | |||
Periodic Payment Terms | I/O | |||
Unpaid Principal Balance | $ 151,912 | |||
Carrying Amount of Loans | $ 150,866 | |||
Senior Loans in Excess of 3% of the Carrying Amount of Total Loans | FL | Borrower D | Multifamily | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Interest Payment Rates | 2.90% | |||
Extended Maturity Date | 2024 | |||
Periodic Payment Terms | I/O | |||
Unpaid Principal Balance | $ 198,383 | |||
Carrying Amount of Loans | $ 198,383 | |||
Senior Loans in Excess of 3% of the Carrying Amount of Total Loans | CA | Borrower F | Office | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Interest Payment Rates | 3.00% | |||
Extended Maturity Date | 2024 | |||
Periodic Payment Terms | I/O | |||
Unpaid Principal Balance | $ 168,800 | |||
Carrying Amount of Loans | $ 167,986 | |||
Senior Loans in Excess of 3% of the Carrying Amount of Total Loans | PA | Borrower G | Office | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Interest Payment Rates | 2.70% | |||
Extended Maturity Date | 2023 | |||
Periodic Payment Terms | I/O | |||
Unpaid Principal Balance | $ 182,882 | |||
Carrying Amount of Loans | $ 182,882 | |||
Senior Loans in Excess of 3% of the Carrying Amount of Total Loans | PA | Borrower I | Office | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Interest Payment Rates | 4.30% | |||
Extended Maturity Date | 2022 | |||
Periodic Payment Terms | I/O | |||
Unpaid Principal Balance | $ 165,148 | |||
Carrying Amount of Loans | $ 164,706 | |||
Senior Loans in Excess of 3% of the Carrying Amount of Total Loans | NC | Borrower H | Hotel | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Interest Payment Rates | 3.80% | |||
Extended Maturity Date | 2022 | |||
Periodic Payment Terms | I/O | |||
Unpaid Principal Balance | $ 180,000 | |||
Carrying Amount of Loans | $ 180,000 | |||
Senior Loans in Excess of 3% of the Carrying Amount of Total Loans | NJ | Borrower J | Multifamily | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Interest Payment Rates | 3.80% | |||
Extended Maturity Date | 2023 | |||
Periodic Payment Terms | I/O | |||
Unpaid Principal Balance | $ 160,018 | |||
Carrying Amount of Loans | 159,698 | |||
Senior Loans Less than 3% of the Carrying Amount of Total Loans | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Unpaid Principal Balance | 4,978,176 | |||
Carrying Amount of Loans | $ 4,960,677 | |||
Senior Loans Less than 3% of the Carrying Amount of Total Loans | Senior Loans | Office | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Market spread | Floating:LIBOR | |||
Periodic Payment Terms | IO | |||
Unpaid Principal Balance | $ 1,168,587 | |||
Carrying Amount of Loans | $ 1,164,216 | |||
Senior Loans Less than 3% of the Carrying Amount of Total Loans | Senior Loans | Multifamily | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Market spread | Floating:LIBOR | |||
Periodic Payment Terms | IO | |||
Unpaid Principal Balance | $ 677,484 | |||
Carrying Amount of Loans | $ 673,997 | |||
Senior Loans Less than 3% of the Carrying Amount of Total Loans | Senior Loans | Hotel | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Market spread | Floating:LIBOR | |||
Periodic Payment Terms | IO | |||
Unpaid Principal Balance | $ 512,205 | |||
Carrying Amount of Loans | $ 511,030 | |||
Senior Loans Less than 3% of the Carrying Amount of Total Loans | Senior Loans | Mixed Use | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Market spread | Floating:LIBOR | |||
Periodic Payment Terms | IO | |||
Unpaid Principal Balance | $ 526,158 | |||
Carrying Amount of Loans | $ 525,366 | |||
Senior Loans Less than 3% of the Carrying Amount of Total Loans | Senior Loans | Condominium | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Market spread | Floating:LIBOR | |||
Periodic Payment Terms | IO | |||
Unpaid Principal Balance | $ 94,260 | |||
Carrying Amount of Loans | $ 94,025 | |||
Senior Loans Less than 3% of the Carrying Amount of Total Loans | Minimum | Senior Loans | Office | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Interest Payment Rates | 2.50% | |||
Extended Maturity Date | 2022 | |||
Senior Loans Less than 3% of the Carrying Amount of Total Loans | Minimum | Senior Loans | Multifamily | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Interest Payment Rates | 2.70% | |||
Extended Maturity Date | 2020 | |||
Senior Loans Less than 3% of the Carrying Amount of Total Loans | Minimum | Senior Loans | Hotel | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Interest Payment Rates | 3.00% | |||
Extended Maturity Date | 2022 | |||
Senior Loans Less than 3% of the Carrying Amount of Total Loans | Minimum | Senior Loans | Mixed Use | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Interest Payment Rates | 2.60% | |||
Extended Maturity Date | 2021 | |||
Senior Loans Less than 3% of the Carrying Amount of Total Loans | Minimum | Senior Loans | Condominium | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Interest Payment Rates | 4.10% | |||
Extended Maturity Date | 2020 | |||
Senior Loans Less than 3% of the Carrying Amount of Total Loans | Maximum | Senior Loans | Office | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Interest Payment Rates | 5.10% | |||
Extended Maturity Date | 2025 | |||
Senior Loans Less than 3% of the Carrying Amount of Total Loans | Maximum | Senior Loans | Multifamily | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Interest Payment Rates | 4.90% | |||
Extended Maturity Date | 2025 | |||
Senior Loans Less than 3% of the Carrying Amount of Total Loans | Maximum | Senior Loans | Hotel | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Interest Payment Rates | 4.70% | |||
Extended Maturity Date | 2024 | |||
Senior Loans Less than 3% of the Carrying Amount of Total Loans | Maximum | Senior Loans | Mixed Use | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Interest Payment Rates | 3.90% | |||
Extended Maturity Date | 2024 | |||
Senior Loans Less than 3% of the Carrying Amount of Total Loans | Maximum | Senior Loans | Condominium | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Interest Payment Rates | 4.70% | |||
Extended Maturity Date | 2021 | |||
Senior Loans Less than 3% of the Carrying Amount of Total Loans | NV | Senior Loans | Land | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Market spread | Floating:LIBOR | |||
Extended Maturity Date | 2021 | |||
Periodic Payment Terms | IO | |||
Unpaid Principal Balance | $ 112,000 | |||
Carrying Amount of Loans | $ 111,436 | |||
Senior Loans Less than 3% of the Carrying Amount of Total Loans | NV | Minimum | Senior Loans | Land | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Interest Payment Rates | 6.80% | |||
Senior Loans Less than 3% of the Carrying Amount of Total Loans | NV | Maximum | Senior Loans | Land | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Interest Payment Rates | 6.80% | |||
Senior Loans Less than 3% of the Carrying Amount of Total Loans | CA | Senior Loans | Retail | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Market spread | Floating:LIBOR | |||
Periodic Payment Terms | IO | |||
Unpaid Principal Balance | $ 30,719 | |||
Carrying Amount of Loans | $ 30,563 | |||
Senior Loans Less than 3% of the Carrying Amount of Total Loans | CA | Minimum | Senior Loans | Retail | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Interest Payment Rates | 3.70% | |||
Senior Loans Less than 3% of the Carrying Amount of Total Loans | CA | Maximum | Senior Loans | Retail | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Interest Payment Rates | 3.70% | |||
Extended Maturity Date | 2023 | |||
Subordinate Loans Less than 3% of the Carrying Amount of Total Loans | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Market spread | Floating:LIBOR | |||
Unpaid Principal Balance | $ 20,000 | |||
Carrying Amount of Loans | $ 19,712 | |||
Subordinate Loans Less than 3% of the Carrying Amount of Total Loans | CA | Senior Loans | Hotel | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Interest Payment Rates | 10.30% | |||
Extended Maturity Date | 2025 | |||
Periodic Payment Terms | IO | |||
Unpaid Principal Balance | $ 20,000 | |||
Carrying Amount of Loans | $ 19,712 |
Schedule IV - Mortgage Loans _3
Schedule IV - Mortgage Loans on Real Estate (Parenthetical) (Details) $ in Billions | Dec. 31, 2019USD ($) |
Mortgage Loans On Real Estate [Abstract] | |
Aggregate tax basis of loans | $ 5 |
Schedule IV - Reconciliation of
Schedule IV - Reconciliation of Activity Regarding Mortgage Loans on Real Estate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Mortgage Loans On Real Estate [Abstract] | |||
Balance at December 31, 2018 | $ 4,293,787 | $ 3,175,672 | $ 2,449,990 |
Additions during period: | |||
Loans originated | 2,341,692 | 2,071,391 | 1,596,531 |
Additional fundings | 268,356 | 258,308 | 315,409 |
Amortization of deferred fees and expenses | 16,345 | 16,907 | 19,381 |
Deductions during period: | |||
Collection of principal | (1,939,791) | (1,228,491) | (1,202,776) |
Amortization of premium | (2,863) | ||
Balance at December 31, 2019 | $ 4,980,389 | $ 4,293,787 | $ 3,175,672 |