Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 27, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | TRTX | |
Security Exchange Name | NYSE | |
Entity Registrant Name | TPG RE Finance Trust, Inc. | |
Entity Central Index Key | 0001630472 | |
Current Fiscal Year End Date | --12-31 | |
Entity Incorporation, State or Country Code | MD | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-38156 | |
Entity Tax Identification Number | 36-4796967 | |
Entity Address, Address Line One | 888 Seventh Avenue | |
Entity Address, Address Line Two | 35th Floor | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10106 | |
City Area Code | 212 | |
Local Phone Number | 601-4700 | |
Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 76,756,317 | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 0 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | |
ASSETS | |||
Cash and Cash Equivalents | [1] | $ 196,237 | $ 79,182 |
Restricted Cash | [1] | 180 | 484 |
Accounts Receivable | [1] | 36 | 2,344 |
Accounts Receivable from Servicer/Trustee | [1] | 80,219 | 13,741 |
Accrued Interest and Fees Receivable | [1] | 29,962 | 28,107 |
Loans Held for Investment | [1] | 5,042,125 | 4,980,389 |
Allowance for Credit Losses | [1] | (53,557) | |
Loans Held for Investment, Net (includes $2,738,774 and $2,585,030, respectively, pledged as collateral under secured revolving repurchase and secured credit agreements) | [1] | 4,988,568 | 4,980,389 |
Investment in Available-for-Sale CRE Debt Securities, net (includes $0 and $786,408, respectively, pledged as collateral under secured revolving repurchase agreements) | [1] | 787,552 | |
Other Assets, Net | [1] | 1,102 | 1,071 |
Total Assets | [1] | 5,296,304 | 5,892,870 |
Liabilities | |||
Accrued Interest Payable | [1] | 3,453 | 6,665 |
Accrued Expenses and Other Liabilities | [1] | 18,679 | 8,176 |
Secured Revolving Repurchase, Senior Secured, and Secured Credit Agreements (net of deferred financing costs of $10,313 and $11,632, respectively) | [1] | 1,845,926 | 2,448,422 |
Collateralized Loan Obligations (net of deferred financing costs of $11,305 and $13,632, respectively) | [1] | 1,823,456 | 1,806,428 |
Asset-Specific Financings (net of deferred financing costs of $106 and $294, respectively) | [1] | 76,894 | 76,706 |
Payable to Affiliates | [1] | 11,025 | 9,520 |
Deferred Revenue | [1] | 149 | 164 |
Dividends Payable | [1] | 48,669 | 32,835 |
Total Liabilities | [1] | 3,828,251 | 4,388,916 |
Commitments and Contingencies—See Note 14 | [1] | ||
Permanent Equity | |||
Additional Paid-in-Capital | [1] | 1,559,684 | 1,530,935 |
Accumulated Deficit | [1] | (288,540) | (28,108) |
Accumulated Other Comprehensive Income | [1] | 1,051 | |
Total Stockholders' Equity | [1] | 1,271,221 | 1,503,954 |
Total Permanent Equity | [1] | 1,271,221 | 1,503,954 |
Total Liabilities and Equity | [1] | 5,296,304 | 5,892,870 |
Series B Cumulative Redeemable Preferred Stock | |||
Temporary Equity | |||
Series B Cumulative Redeemable Preferred Stock ($0.001 par value per share; 13,000,000 and 0 shares authorized, respectively; 9,000,000 and 0 shares issued and outstanding, respectively), Net | [1] | 196,832 | |
Common Stock, Undefined Class | |||
Permanent Equity | |||
Common Stock Value | [1] | 77 | 75 |
Series A Preferred Stock | |||
Permanent Equity | |||
Series A Preferred Stock ($0.001 par value per share; 100,000,000 shares authorized; 125 and 125 shares issued and outstanding, respectively) | [1] | ||
Class A Common Stock | |||
Liabilities | |||
Dividends Payable | $ 48,700 | ||
Permanent Equity | |||
Common Stock Value | [1] | 1 | |
Total Stockholders' Equity | $ 1 | ||
[1] | The Company’s consolidated Total Assets and Total Liabilities at June 30, 2020 include assets and liabilities of variable interest entities (“VIEs”) of $2.3 billion and $1.8 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities at December 31, 2019 include assets and liabilities of VIEs of $2.2 billion and $1.8 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (unaudited) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | |
Common stock, par value | $ 0.001 | $ 0.001 | |
Common stock, authorized shares | 302,500,000 | 300,000,000 | |
Common stock, shares issued | 76,792,432 | 74,886,113 | |
Common stock, shares outstanding | 76,792,432 | 74,886,113 | |
Total assets | [1] | $ 5,296,304 | $ 5,892,870 |
Total liabilities | [1] | 3,828,251 | 4,388,916 |
Variable Interest Entity, Primary Beneficiary | |||
Total assets | 2,282,492 | 2,249,751 | |
Total liabilities | $ 1,829,996 | $ 1,828,992 | |
Series B Cumulative Redeemable Preferred Stock | |||
Temporary equity, par value | $ 0.001 | $ 0.001 | |
Temporary equity, shares authorized | 13,000,000 | 0 | |
Temporary equity, shares issued | 9,000,000 | 0 | |
Temporary equity, shares outstanding | 9,000,000 | 0 | |
Series A Preferred Stock | |||
Preferred stock, par value | $ 0.001 | $ 0.001 | |
Preferred stock, authorized shares | 100,000,000 | 100,000,000 | |
Preferred stock, shares issued | 125 | 125 | |
Preferred stock, shares outstanding | 125 | 125 | |
Class A Common Stock | |||
Common stock, par value | $ 0.001 | $ 0.001 | |
Common stock, authorized shares | 0 | 2,500,000 | |
Common stock, shares issued | 0 | 1,136,665 | |
Common stock, shares outstanding | 0 | 1,136,665 | |
Repurchase Agreements | |||
Loans pledged as collateral | $ 2,738,774 | $ 2,585,030 | |
Available-for-sale CRE debt securities pledged as collateral | 0 | 786,408 | |
Deferred financing costs | 10,313 | 11,632 | |
Term Loan Facility | |||
Deferred financing costs | 106 | 294 | |
Collateralized Loan Obligation | |||
Loans pledged as collateral | 2,150,472 | 2,229,034 | |
Deferred financing costs | $ 11,305 | $ 13,632 | |
[1] | The Company’s consolidated Total Assets and Total Liabilities at June 30, 2020 include assets and liabilities of variable interest entities (“VIEs”) of $2.3 billion and $1.8 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities at December 31, 2019 include assets and liabilities of VIEs of $2.2 billion and $1.8 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
INTEREST INCOME | ||||
Interest Income | $ 70,051 | $ 88,254 | $ 151,800 | $ 164,855 |
Interest Expense | (25,865) | (46,426) | (64,322) | (85,793) |
Net Interest Income | 44,186 | 41,828 | 87,478 | 79,062 |
OTHER REVENUE | ||||
Other Income, net | 119 | 412 | 447 | 834 |
Total Other Revenue | 119 | 412 | 447 | 834 |
OTHER EXPENSES | ||||
Professional Fees | 4,036 | 593 | 5,855 | 1,272 |
General and Administrative | 860 | 1,041 | 1,840 | 1,485 |
Stock Compensation Expense | 1,686 | 633 | 3,087 | 1,514 |
Servicing and Asset Management Fees | 261 | 431 | 537 | 944 |
Management Fee | 5,115 | 5,323 | 10,115 | 10,466 |
Incentive Management Fee | 2,048 | 3,413 | ||
Total Other Expenses | 11,958 | 10,069 | 21,434 | 19,094 |
Securities Gains (Impairments) | 96 | (203,397) | ||
Credit Loss Benefit (Expense) | 10,546 | (52,802) | ||
Income (Loss) Before Income Taxes | 42,989 | 32,171 | (189,708) | 60,802 |
Income Tax Expense, net | (61) | (202) | (154) | (421) |
Net Income (Loss) | 42,928 | 31,969 | (189,862) | 60,381 |
Series A Preferred Stock Dividends | (5) | (4) | (8) | (7) |
Series B Cumulative Redeemable Preferred Stock Dividends | (2,250) | (2,250) | ||
Net Income (Loss) Attributable to TPG RE Finance Trust, Inc. | $ 40,673 | $ 31,965 | $ (192,120) | $ 60,374 |
Basic Earnings (Loss) per Common Share | $ 0.52 | $ 0.43 | $ (2.53) | $ 0.85 |
Diluted Earnings (Loss) per Common Share | $ 0.52 | $ 0.43 | $ (2.53) | $ 0.85 |
Weighted Average Number of Common Shares Outstanding | ||||
Basic: | 76,644,038 | 73,963,337 | 76,554,680 | 71,144,696 |
Diluted: | 76,644,038 | 73,963,337 | 76,554,680 | 71,144,696 |
OTHER COMPREHENSIVE INCOME (LOSS) | ||||
Net Income (Loss) | $ 42,928 | $ 31,969 | $ (189,862) | $ 60,381 |
Unrealized Gain (Loss) on Available-for-Sale Debt Securities | (77) | 3,112 | (1,051) | 3,218 |
Comprehensive Net Income (Loss) | $ 42,851 | $ 35,081 | $ (190,913) | $ 63,599 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity (Unaudited) - USD ($) $ in Thousands | Total | Series A Preferred Stock | Class A Common Stock | Series B Preferred Stock | Common Stock | Additional Paid-in-Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | |
Balance at Dec. 31, 2018 | $ 1,327,170 | $ 1 | $ 67 | $ 1,355,002 | $ (25,915) | $ (1,985) | |||
Balance, Shares at Dec. 31, 2018 | 1,143,313 | 66,020,387 | |||||||
Issuance of Common Stock | 119,100 | $ 6 | 119,094 | ||||||
Issuance of Common Stock, Shares | 6,000,000 | ||||||||
Repurchases and retirement of Common Stock | (42) | (42) | |||||||
Repurchases and retirement of Common Stock, Shares | (2,324) | ||||||||
Issuance of Series A Preferred Stock | 125 | 125 | |||||||
Issuance of Series A Preferred Stock, Shares | 125 | ||||||||
Equity Issuance, Shelf Registration, and Equity Distribution Agreement Transaction Costs | (300) | (300) | |||||||
Amortization of Share-Based Compensation | 633 | 633 | |||||||
Net Income (Loss) | 28,412 | 28,412 | |||||||
Other Comprehensive Income (Loss) | 106 | 106 | |||||||
Dividends on Preferred Stock | (3) | (3) | |||||||
Dividends on Common Stock (Dividends Declared per Share) | (31,160) | (31,160) | |||||||
Dividends on Class A Common Stock (Dividends Declared per Share) | (492) | (492) | |||||||
Balance at Mar. 31, 2019 | 1,443,549 | $ 1 | $ 73 | 1,474,554 | (29,200) | (1,879) | |||
Balance, Shares at Mar. 31, 2019 | 125 | 1,143,313 | 72,018,063 | ||||||
Balance at Dec. 31, 2018 | 1,327,170 | $ 1 | $ 67 | 1,355,002 | (25,915) | (1,985) | |||
Balance, Shares at Dec. 31, 2018 | 1,143,313 | 66,020,387 | |||||||
Net Income (Loss) | 60,381 | ||||||||
Balance at Jun. 30, 2019 | 1,464,757 | $ 1 | $ 73 | 1,492,670 | (29,220) | 1,233 | |||
Balance, Shares at Jun. 30, 2019 | 125 | 1,143,313 | 72,996,096 | ||||||
Balance at Mar. 31, 2019 | 1,443,549 | $ 1 | $ 73 | 1,474,554 | (29,200) | (1,879) | |||
Balance, Shares at Mar. 31, 2019 | 125 | 1,143,313 | 72,018,063 | ||||||
Issuance of Common Stock | 17,432 | 17,432 | |||||||
Issuance of Common Stock, Shares | 978,033 | ||||||||
Equity Issuance, Shelf Registration, and Equity Distribution Agreement Transaction Costs | (197) | (197) | |||||||
Amortization of Share-Based Compensation | 881 | 881 | |||||||
Net Income (Loss) | 31,969 | 31,969 | |||||||
Other Comprehensive Income (Loss) | 3,112 | 3,112 | |||||||
Dividends on Preferred Stock | (4) | (4) | |||||||
Dividends on Common Stock (Dividends Declared per Share) | (31,494) | (31,494) | |||||||
Dividends on Class A Common Stock (Dividends Declared per Share) | (491) | (491) | |||||||
Balance at Jun. 30, 2019 | 1,464,757 | $ 1 | $ 73 | 1,492,670 | (29,220) | 1,233 | |||
Balance, Shares at Jun. 30, 2019 | 125 | 1,143,313 | 72,996,096 | ||||||
Balance at Dec. 31, 2019 | 1,503,954 | [1] | $ 1 | $ 75 | 1,530,935 | (28,108) | 1,051 | ||
Balance, Shares at Dec. 31, 2019 | 125 | 1,136,665 | 74,886,113 | ||||||
Issuance of Common Stock | 12,895 | $ 1 | 12,894 | ||||||
Issuance of Common Stock, Shares | 628,218 | ||||||||
Conversions of Class A Common Stock to Common Stock | $ (1) | $ 1 | |||||||
Conversions of Class A Common Stock to Common Stock, Shares | (1,136,665) | 1,136,665 | |||||||
Equity Issuance, Shelf Registration, and Equity Distribution Agreement Transaction Costs | (206) | (206) | |||||||
Amortization of Share-Based Compensation | 1,401 | 1,401 | |||||||
Cumulative Effect of Adoption of ASU 2016-13 (See Note 2) | (19,645) | (19,645) | |||||||
Net Income (Loss) | (232,790) | (232,790) | |||||||
Other Comprehensive Income (Loss) | (974) | (974) | |||||||
Dividends on Preferred Stock | (3) | (3) | |||||||
Dividends on Common Stock (Dividends Declared per Share) | (33,219) | (33,219) | |||||||
Balance at Mar. 31, 2020 | 1,231,413 | $ 77 | 1,545,024 | (313,765) | 77 | ||||
Balance, Shares at Mar. 31, 2020 | 125 | 76,650,996 | |||||||
Balance at Dec. 31, 2019 | 1,503,954 | [1] | $ 1 | $ 75 | 1,530,935 | (28,108) | 1,051 | ||
Balance, Shares at Dec. 31, 2019 | 125 | 1,136,665 | 74,886,113 | ||||||
Net Income (Loss) | (189,862) | ||||||||
Accretion of Discount on Series B Cumulative Redeemable Preferred Stock | (443) | ||||||||
Balance at Jun. 30, 2020 | 1,271,221 | [1] | $ 77 | 1,559,684 | (288,540) | ||||
Balance, Shares at Jun. 30, 2020 | 125 | 76,792,432 | |||||||
Temporary Equity, Balance at Jun. 30, 2020 | $ 196,832 | ||||||||
Balance at Mar. 31, 2020 | 1,231,413 | $ 77 | 1,545,024 | (313,765) | 77 | ||||
Balance, Shares at Mar. 31, 2020 | 125 | 76,650,996 | |||||||
Issuance of Series B Cumulative RedeemablePreferred Stock | 210,598 | ||||||||
Issuance of Warrants to Purchase Common Stock | 14,402 | 14,402 | |||||||
Issuance of Common Stock, Shares | 160,278 | ||||||||
Repurchases and retirement of Common Stock, Shares | (18,842) | ||||||||
Equity Issuance, Shelf Registration, and Equity Distribution Agreement Transaction Costs | (985) | (985) | |||||||
Temporary Equity, Equity Issuance, Shelf Registration, and Equity Distribution Agreement Transaction Costs | (14,209) | ||||||||
Amortization of Share-Based Compensation | 1,686 | 1,686 | |||||||
Net Income (Loss) | 42,928 | 42,928 | |||||||
Other Comprehensive Income (Loss) | (77) | $ (77) | |||||||
Dividends on Preferred Stock | (2,255) | (2,255) | |||||||
Accretion of Discount on Series B Cumulative Redeemable Preferred Stock | (443) | (443) | |||||||
Temporary Equity, Accretion of Discount on Series B Cumulative Redeemable Preferred Stock | 443 | ||||||||
Dividends on Common Stock (Dividends Declared per Share) | (15,448) | (15,448) | |||||||
Balance at Jun. 30, 2020 | $ 1,271,221 | [1] | $ 77 | $ 1,559,684 | $ (288,540) | ||||
Balance, Shares at Jun. 30, 2020 | 125 | 76,792,432 | |||||||
Temporary Equity, Balance at Jun. 30, 2020 | $ 196,832 | ||||||||
[1] | The Company’s consolidated Total Assets and Total Liabilities at June 30, 2020 include assets and liabilities of variable interest entities (“VIEs”) of $2.3 billion and $1.8 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities at December 31, 2019 include assets and liabilities of VIEs of $2.2 billion and $1.8 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | |
Common stock dividends declared per share | $ 0.20 | $ 0.43 | $ 0.43 | $ 0.43 |
Class A Common Stock | ||||
Common stock dividends declared per share | $ 0.43 | $ 0.43 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | ||
Cash Flows from Operating Activities: | |||
Net Income (Loss) | $ (189,862) | $ 60,381 | |
Adjustment to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities: | |||
Amortization and Accretion of Premiums, Discounts and Loan Origination Fees, Net | (5,627) | (7,898) | |
Amortization of Deferred Financing Costs | 6,539 | 9,393 | |
Increase in Capitalized Accrued Interest | (550) | ||
Loss on Sales of Loans Held for Investment and CRE Debt Securities, Net | 217,170 | ||
Stock Compensation Expense | 3,087 | 1,514 | |
Allowance for Credit Loss Expense | 39,029 | ||
Cash Flows Due to Changes in Operating Assets and Liabilities: | |||
Accounts Receivable | 2,308 | (4) | |
Accrued Interest Receivable | (1,078) | (12,224) | |
Accrued Expenses and Other Liabilities | 1,414 | (3,525) | |
Accrued Interest Payable | (3,212) | 3,458 | |
Payable to Affiliates | 1,505 | 1,653 | |
Deferred Fee Income | (15) | (72) | |
Other Assets | (31) | 315 | |
Net Cash Provided by Operating Activities | 70,677 | 52,991 | |
Cash Flows from Investing Activities: | |||
Origination of Loans Held for Investment | (351,650) | (1,133,817) | |
Advances on Loans Held for Investment | (123,692) | (117,131) | |
Principal Repayments of Loans Held for Investment | 333,715 | 608,338 | |
Sales of Loans Held for Investment | 5,295 | ||
Purchase of Available-for-Sale CRE Debt Securities | (168,888) | (632,267) | |
Sales and Principal Repayments of Available-for-Sale CRE Debt Securities | 766,437 | 6,641 | |
Net Cash Provided by (Used in) Investing Activities | 461,217 | (1,268,236) | |
Cash Flows from Financing Activities: | |||
Payments on Collateralized Loan Obligations | (311,672) | ||
Payment of Deferred Financing Costs | (1,769) | (3,817) | |
Payments to Repurchase Common Stock | (42) | ||
Proceeds from Issuance of Warrants to Purchase Common Stock | 14,402 | ||
Proceeds from Issuance of Common Stock | 12,895 | 136,532 | |
Payment of Equity Issuance and Equity Distribution Agreement Transaction Costs | (12,365) | (188) | |
Net Cash Provided by (Used in) Financing Activities | (415,143) | 1,245,017 | |
Net Change in Cash, Cash Equivalents, and Restricted Cash | 116,751 | 29,772 | |
Cash, Cash Equivalents and Restricted Cash at Beginning of Period | 79,666 | 40,720 | |
Cash, Cash Equivalents and Restricted Cash at End of Period | 196,417 | 70,492 | |
Supplemental Disclosure of Cash Flow Information: | |||
Interest Paid | 60,995 | 72,942 | |
Taxes Paid | 5 | 368 | |
Supplemental Disclosure of Non-Cash Investing and Financing Activities: | |||
Principal Repayments of Loans Held for Investment Held by Servicer/Trustee, Net | 80,205 | 208,697 | |
Sales and Principal Repayments of Available-for-Sale CRE Debt Securities Held by Servicer/Trustee, Net | 960 | ||
Proceeds from Secured Financing Agreements Held by Trustee | 103 | ||
Dividends Payable | 48,669 | [1] | 31,985 |
Accrued Equity Issuance and Transaction Costs | 3,035 | 309 | |
Change in Accrued Deferred Financing Costs | 937 | 1,148 | |
Unrealized Gain (Loss) on Available-for-Sale Debt Securities | (1,051) | 3,218 | |
Loans Investment | |||
Cash Flows from Financing Activities: | |||
Payments on Secured Financing Agreements - Loan Investments | (606,265) | (807,471) | |
Proceeds from Secured Financing Agreements - Loan Investments | 695,250 | 1,746,297 | |
CRE Debt Securities | |||
Cash Flows from Financing Activities: | |||
Payments on Secured Financing Agreements - Loan Investments | (824,920) | (4,958) | |
Proceeds from Secured Financing Agreements - Loan Investments | 132,122 | 550,850 | |
Series A Preferred Stock | |||
Cash Flows from Financing Activities: | |||
Proceeds from Issuance of Preferred Stock | 125 | ||
Dividends paid | (6) | (7) | |
Series B Cumulative Redeemable Preferred Stock | |||
Cash Flows from Financing Activities: | |||
Proceeds from Issuance of Preferred Stock | 210,598 | ||
Dividends paid | (2,250) | ||
Common Stock, Undefined Class | |||
Cash Flows from Financing Activities: | |||
Dividends paid | (32,551) | (59,649) | |
Class A Common Stock | |||
Cash Flows from Financing Activities: | |||
Dividends paid | (284) | (983) | |
Supplemental Disclosure of Non-Cash Investing and Financing Activities: | |||
Dividends Payable | $ 48,700 | $ 63,600 | |
[1] | The Company’s consolidated Total Assets and Total Liabilities at June 30, 2020 include assets and liabilities of variable interest entities (“VIEs”) of $2.3 billion and $1.8 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities at December 31, 2019 include assets and liabilities of VIEs of $2.2 billion and $1.8 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details |
Business and Organization
Business and Organization | 6 Months Ended |
Jun. 30, 2020 | |
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. The Company has in the past invested in commercial real estate debt securities (“CRE debt securities”) including commercial mortgage-backed securities (“CMBS”) and commercial real estate collateralized loan obligation securities (“CRE CLOs”). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (2) Summary of Significant Accounting Policies Basis of Presentation The interim consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The interim consolidated financial statements include the Company’s accounts, consolidated variable interest entities for which the Company is the primary beneficiary, and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated. These interim consolidated financial statements should be read in conjunction with the Company’s Form 10-K filed with the SEC on February 19, 2020. Risks and Uncertainties The recent outbreak of the coronavirus pandemic (“COVID-19”) around the globe continues to adversely impact global commercial activity and has contributed to significant volatility in financial markets. The impact of the outbreak has evolved rapidly around the globe, with many countries taking drastic measures to limit the spread of the virus by instituting quarantines or lockdowns and imposing travel restrictions. Such actions have created significant disruptions to global supply chains, and adversely impacted several industries, including but not limited to, airlines, hospitality, retail and the broader real estate industry. The major disruptions caused by COVID-19 brought to a halt most economic activity in most of the United States resulting in a significant increase in unemployment claims and material fiscal stimulus expenditures by the federal government. COVID-19 will also likely result in a significant decline in the U.S. Gross Domestic Product. COVID-19 could have a continued and prolonged adverse impact on economic and market conditions and trigger a period of global economic slowdown which has and could continue to have a material adverse effect on the Company’s results and financial condition. Many jurisdictions have begun to “reopen” by reducing measures that were previously taken to limit the spread of COVID-19, but the Company cannot predict the length of time that it will take for a meaningful economic recovery to take place. The full impact of COVID-19 on the real estate industry, the credit markets and consequently on the Company’s financial condition and results of operations is uncertain and cannot be predicted currently since it depends on several factors beyond the control of the Company including, but not limited to (i) the uncertainty surrounding the severity and duration of the outbreak, including possible recurrences Reclassifications Certain amounts in the Company’s prior period consolidated financial statements have been reclassified to conform to the presentation of the Company’s current period consolidated financial statements. These reclassifications had no effect on the Company’s previously reported net income. These reclassifications include the separate presentation of stock compensation on the consolidated statements of income and comprehensive income, and the disaggregation of proceeds and payments from secured financing agreements secured by loans and secured financing agreements secured by CRE debt securities on the consolidated statements of cash flows. Use of Estimates The preparation of the interim consolidated financial statements in conformity with GAAP requires estimates of assets, liabilities, revenues, expenses and disclosure of contingent assets and liabilities at the date of the interim consolidated financial statements. Actual results could differ from management’s estimates, and such differences could be material. Significant estimates made in the interim consolidated financial statements include, but are not limited to: the adequacy of provisions for credit losses and the valuation inputs related thereto; and the valuation of financial instruments. Actual amounts and values as of the balance sheet dates may be materially different than the amounts and values reported due to the inherent uncertainty in the estimation process and the limited availability of observable pricing inputs due to market dislocation resulting from the COVID-19 pandemic. Also, future amounts and values could differ materially from those estimates due to changes in values and circumstances after the balance sheet date and the limited availability of observable prices. Principles of Consolidation Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810— Consolidation (“ASC 810”) 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 expected or realized credit losses, if any. The objective of the interest method is to arrive at periodic interest income including recognition of fees and costs at a constant effective yield. Premiums, discounts, and origination fees are amortized or accreted into interest income over the lives of the loans using the interest method, or on a straight-line basis when it approximates the interest method. Extension and modification fees are accreted into 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. Certain of the Company’s loan investments have in the past, and may in the future, provide for the accrual of interest (in part, or in whole) instead of its current payment in cash, with the accrued interest (“PIK interest”) added to the unpaid principal balance of the loan. Such PIK interest is recognized currently as interest income unless the Company concludes eventual collection is unlikely, in which case a collection reserve is recorded or the PIK interest is written off. Loans Held for Investment Loans that the Company has the intent and ability to hold for the foreseeable future, or until maturity or repayment, are reported at their outstanding principal balances net of any cumulative charge-offs, interest applied to principal (for loans accounted for using the cost recovery method), unamortized premiums, discounts, unamortized net loan origination fees and costs. Loan origination fees and direct loan origination costs are deferred and recognized in interest income over the estimated life of the loans using the interest method, or on a straight-line basis when it approximates the interest method, adjusted for actual prepayments. When loans are designated as held for investment, the Company’s intent is to hold the loans for the foreseeable future or until maturity or repayment. If subsequent changes in real estate or capital markets occur, the Company may change its intent or its assessment of its ability to hold these loans. Once a determination has been made to sell such loans, they are immediately transferred to loans held for sale and carried at the lower of cost or fair value. Non-Accrual Loans Loans are placed on non-accrual status when the full and timely collection of principal and interest is doubtful, generally when the loan becomes 90 days or more past due for principal and interest. The Company considers an account past due when an obligor fails to pay substantially all (defined as 90%) of the scheduled payment by the due date. In each case, the period of delinquency is based on the number of days payments are contractually past due. All interest accrued but not received for loans placed on non-accrual status is subtracted from interest income at the time the loan is placed on non-accrual. Payments received on non-accrual loans are accounted for using either the cash method, or the cost recovery method which applies any cash collected to first reduce the principal balance. A loan may be returned to accrual status if all delinquent principal and interest payments are brought current, and collectability of the remaining principal and interest payments in accordance with the loan agreement is reasonably assured. Loans that in the judgment of the Company’s external manager, TPG RE Finance Trust Management, L.P., a Delaware limited partnership (the “Manager”), are adequately secured and in the process of collection are maintained on accrual status, even if they are 90 days or more past due. Troubled Debt Restructurings A loan is accounted for and reported as a troubled debt restructuring (“TDR”) when, for economic or legal reasons, the Company grants a concession to a borrower experiencing financial difficulty that we would not otherwise consider. The Company does not consider as a concession a restructuring that includes an insignificant delay in payment. A delay may be considered insignificant if the payments subject to the delay are insignificant relative to the unpaid principal balance of the loan or collateral value, and the contractual amount due, or the delay in timing of the restructured payment period, is insignificant relative to the frequency of payments, the debt’s original contractual maturity or original expected duration. TDRs that are performing and on accrual status as of the date of the modification remain on accrual status. TDRs that are nonperforming as of the date of modification usually remain on non-accrual status until the prospect of future payments in accordance with the modified loan agreement is reasonably assured, which is generally demonstrated when the borrower maintains compliance with the restructured terms for a predetermined period, normally at least six months. TDRs with temporary below-market concessions remain designated as a TDR regardless of the accrual or performance status until the loan is paid off. However, if the TDR loan has been modified in a subsequent restructure with market terms and the borrower is not currently experiencing financial difficulty, then the loan may be de-designated as a TDR. Allowance for Credit Losses for Loans Held for Investment The allowance for credit losses is measured under the Current Expected Credit Loss (“CECL”) accounting framework, represents an estimate of current expected losses for the Company’s existing portfolio of loans held for investment, and is presented as a valuation reserve on the Company’s consolidated balance sheets. Expected credit losses inherent in non-cancelable unfunded loan commitments are accounted for as separate liabilities included in accrued expenses and other liabilities on the consolidated balance sheets. The allowance for credit losses for loans held for investment, as reported in the Company’s consolidated balance sheets, is adjusted by a credit loss expense, which is reported in earnings in the consolidated statements of income and comprehensive income and reduced by the charge-off of loan amounts, net of recoveries and additions related to purchased credit-deteriorated (“PCD”) assets, if relevant. The allowance for credit losses includes a modeled component and an individually-assessed component. The Company has elected to not measure an allowance for credit losses on accrued interest receivables related to all of its loans held for investment because it writes off uncollectable accrued interest receivable in a timely manner pursuant to its non-accrual policy, described above. The Company considers key credit quality indicators in underwriting loans and estimating credit losses, including but not limited to: the capitalization of borrowers and sponsors; the expertise of the borrowers and sponsors in a particular real estate sector and geographic market; collateral type; geographic region; use and occupancy of the property; property market value; loan-to-value (“LTV”) ratio; loan amount and lien position; debt service and coverage ratio; the Company’s risk rating for the same and similar loans; and prior experience with the borrower and sponsor. This information is used to assess the financial and operating capability, experience and profitability of the sponsor/borrower. Ultimate repayment of the Company’s loans is sensitive to interest rate changes, general economic conditions, liquidity, LTV ratio, and availability of replacement short-term or long-term financing. The loans in the Company’s commercial mortgage loan portfolio are secured by collateral in the following property types: office ; multifamily ; hotel ; mixed-use ; condominium ; retail ; and land . Quarterly, the Company evaluates the risk of all loans and assigns a risk rating based on a variety of factors, grouped as follows: (i) loan and credit structure, including the as-is LTV and structural features; (ii) quality and stability of real estate value and operating cash flow, including debt yield, property type, dynamics of the geography, property type and local market, physical condition, stability of cash flow, leasing velocity and quality and diversity of tenancy; (iii) performance against underwritten business plan; and (iv) quality, experience and financial condition of sponsor, borrower and guarantor(s). Based on a 5-point scale, the Company’s loans are rated “1” through “5,” from least risk to greatest risk, respectively, which ratings are defined as follows: 1- Outperform—Exceeds performance metrics (for example, technical milestones, occupancy, rents, net operating income) included in original or current credit underwriting and business plan; 2- Meets or Exceeds Expectations—Collateral performance meets or exceeds substantially all performance metrics included in original or current underwriting / business plan; 3- Satisfactory—Collateral performance meets or is on track to meet underwriting; business plan is met or can reasonably be achieved; 4- Underperformance—Collateral performance falls short of original underwriting, material differences exist from business plan, or both; technical milestones have been missed; defaults may exist, or may soon occur absent material improvement; and 5- Default/Possibility of Loss—Collateral performance is significantly worse than underwriting; major variance from business plan; loan covenants or technical milestones have been breached; timely exit from loan via sale or refinancing is questionable; significant risk of principal loss. The Company generally assigns a risk rating of “3” to all newly originated loan investments during the most recent quarter, except in the case of specific circumstances warranting an exception. The Company’s loans are typically collateralized by real estate, or in the case of mezzanine loans, by a partnership interest or similar equity interest in an entity that owns real estate. As a result, the Company regularly evaluates on a loan-by-loan basis the extent and impact of any credit deterioration associated with the performance and/or value of the underlying collateral property, and the financial and operating capability of the borrower and its sponsor. The Company also evaluates the financial strength of loan guarantors, if any, and the borrower’s competency in managing and operating the property or properties. In addition, the Company considers the overall economic environment, real estate sector, and geographic sub-market in which the borrower operates. Such analyses are completed and reviewed by asset management personnel and evaluated by senior management, who utilize various data sources, including, to the extent available (i) periodic financial data such as property occupancy, tenant profile, rental rates, operating expenses, the borrower’s exit plan, and capitalization and discount rates, (ii) site inspections, (iii) sales and financing comparables, (iv) current credit spreads for refinancing and (v) other market data. Due to the COVID-19 pandemic and the dislocation it has caused to the national economy, the commercial real estate markets, and the capital markets, the Company’s ability to estimate key inputs for estimating the allowance for credit losses has been materially and adversely impacted. Key inputs to the estimate include, but are not limited to, LTV, debt service coverage ratio, future operating cash flow and performance of collateral properties, the financial strength and liquidity of borrowers and sponsors, capitalization rates and discount rates used to value commercial real estate properties, and observable transactions involving the sale or financing of commercial properties. Estimates made by management are necessarily subject to change due to the lack of observable inputs and uncertainty regarding the duration of the COVID-19 pandemic and its aftereffects. The Company’s CECL reserve reflects its estimation of the current and future economic conditions that impact the performance of the commercial real estate assets securing the Company’s loans. These estimations include unemployment rates, interest rates, price indices for commercial property, and other macroeconomic factors impacting the likelihood and magnitude of potential credit losses for the Company’s loans during their anticipated term. The Company license s certain macroeconomic financial forecasts to inform its view of the potential future impact that broader economic conditions may have on its loan portfolio’s performance. The forecasts are embedded in the licensed model that the Company use s to estimate its CECL reserve. Selection of these economic forecasts requires significant judgment about future events that, while based on the information available to the Company as of the balance sheet date, are ultimately unknowable with certainty, and the actual economic condition s impacting the Company’s portfolio could vary significantly from the estimates the Company made for the periods presented . Credit Loss Measurement The amount of allowance for credit losses is influenced by the size of the Company’s loan portfolio, loan asset quality, risk rating, delinquency status, historic loss experience and other conditions influencing loss expectations, such as reasonable and supportable forecasts of economic conditions. The Company employs two methods to estimate credit losses in its loan portfolio: a model-based approach utilized for substantially all of its loans; and an individually-assessed approach for loans that the Company concludes are ill-suited for use in the model-based approach, or are individually-assessed based on accounting guidance contained in the CECL framework. Once the expected credit loss amount is determined, an allowance for credit losses equal to the calculated expected credit loss is established. If the calculated expected credit loss is determined to be permanent or not recoverable, the amount of expected credit loss will be charged-off through the allowance for credit losses. Factors considered by management in determining if the expected credit loss is permanent or not recoverable include whether management judges the loan to be uncollectible; that is, repayment is deemed to be delayed beyond reasonable time frames, or the loss becomes evident due to the borrower’s lack of assets and liquidity, or the borrower’s sponsor is unwilling or unable to support the loan. Allowance for Credit Losses for Loans Held for Investment – Model-Based Approach The model-based approach to measure the allowance for credit losses relates to loans which are not individually-assessed. The Company licenses from Trepp, LLC historical loss information, incorporating loan performance data for over 100,000 commercial real estate loans dating back to 1998, in an analytical model to compute statistical credit loss factors (i.e., probability-of-default and loss-given-default). These statistical credit loss factors are utilized together with individual loan information to generate future expected cash flows which are used to estimate the allowance for credit losses. This methodology appropriately considers the unique characteristics of the Company’s commercial mortgage loan portfolio and individual assets within the portfolio by considering individual loan risk ratings, delinquency statuses and other credit trends and risk characteristics. Further, the Company incorporates its expectations about the impact of current conditions and reasonable and supportable forecasts on expected future credit losses in deriving its estimate. For the period beyond which the Company is able to make reasonable and supportable forecasts, the Company will revert to unadjusted historical loan loss information based on systematic methodology determined at the input level. Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. In future periods, evaluations of the overall loan portfolio, in light of the factors and forecasts then prevailing, may result in significant changes in the allowance and credit loss expense. Allowance for Credit Losses for Loans Held for Investment – Individually-Assessed Approach In instances where the unique attributes of a loan investment render it ill-suited for the model-based approach because it no longer shares risk characteristics with other loans, or because the Company concludes repayment of the loan is entirely collateral-dependent, the Company separately evaluates the amount of expected credit loss using widely accepted real estate valuation techniques, considering substantially the same credit factors as utilized in the model-dependent method. In these cases, expected credit loss is measured as the difference between the amortized cost basis of the loan and the fair value of the collateral as determined by management using valuation techniques, frequently discounted cash flow. The fair value of the collateral is adjusted for the estimated cost to sell if repayment or satisfaction of a loan is dependent on the sale (rather than the operation) of the collateral. Unfunded Loan Commitments The Company’s first mortgage loans often contain provisions for future funding conditioned upon the borrower’s execution of its business plan with respect to the underlying collateral property securing the loan. These deferred fundings are typically for base building work, tenant improvement costs and leasing commissions, and occasionally to fund forecasted operating deficits during lease-up, or for interest reserves. These deferred funding commitments may be for specific periods, often require satisfaction by the borrower of conditions precedent, and may contain termination clauses at the option of the borrower or, more rarely, at the Company’s option. The total amount of un funded commitments do es not necessarily represent actual amounts that may be funded in cash in the future, since commitments may expire without being drawn , may be cancelled if certain conditions are not satisfied by the borrower, or borrowers may elect not to borrow some or all of the unused commitment . The Company does not recognize these unfunded loan commitments in its consolidated financial statements. The Company applies its expected credit loss estimates to all future funding commitments that cannot be contractually terminated at the Company’s option. The Company maintains a separate allowance for credit losses from unfunded loan commitments, which is included in accrued expenses and other liabilities on the consolidated balance sheets. The Company estimates the amount of expected losses by calculating a commitment usage factor over the contractual period for exposures that are not unconditionally cancellable by the Company and applies the loss factors used in the allowance for credit loss methodology described above to the results of the usage calculation to estimate the liability for credit losses related to unfunded commitments for each loan. No credit loss estimate is reported for unfunded loan commitments that are unconditionally cancellable by the Company. CRE Debt Securities In the past, the Company acquired CRE debt securities for investment purposes. The Company designates CRE debt securities as available-for-sale (“AFS”) on the acquisition date. CRE debt securities that are classified as AFS are recorded at fair value through other comprehensive income or loss in the Company’s consolidated financial statements. The Company recognizes interest income on its CRE debt securities using the interest method, or on a straight-line basis when it approximates the effective interest method, with any premium or discount amortized or accreted into interest income based on the respective outstanding principal balance and corresponding contractual term of the CRE debt security. Accrued but not yet collected interest is separately reported as accrued interest receivable on the Company’s consolidated balance sheets. The Company uses a specific identification method when determining the cost of a CRE debt security sold and the amount of unrealized gain or loss reclassified from accumulated other comprehensive income or loss into earnings on the trade date. AFS debt securities in unrealized loss positions are evaluated for impairment related to credit losses at least quarterly. For the purpose of identifying and measuring impairment, any applicable accrued interest is excluded from both the fair value and the amortized cost basis. The Company has elected to write off accrued interest by reversing interest income in the event the accrued interest is deemed uncollectible, generally when the security becomes 90 days or more past due for principal and interest. The Company first assesses whether it intends to sell the debt security or more likely than not will be required to sell the debt security before recovery of its amortized cost basis. If either criterion regarding intent or requirement to sell is met, the debt security’s amortized cost basis is written down to its fair value and the write down is charged against the allowance for credit losses, with any incremental impairment reported in earnings as a loss in the consolidated statements of income and comprehensive income. Any AFS debt security in an unrealized loss position which the Company does not intend to sell or is not more likely than not required to sell before recovery of the amortized cost basis is assessed for expected credit losses. The performance indicators considered for CRE debt securities relate to the underlying assets and include default rates, delinquency rates, percentage of nonperforming assets, debt-to-collateral ratios, third-party guarantees, current levels of subordination, vintage, geographic concentration, analyst reports and forecasts, credit ratings and other market data. In assessing whether a credit loss exists, the Company compares the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a credit loss exists and an allowance for credit losses is recorded, limited by the amount the fair value is less than amortized cost basis. Declines in fair value of AFS debt securities in an unrealized loss position that are not due to credit losses, such as declines due to changes in market interest rates, are recorded through other comprehensive income. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Unrealized gains and losses on AFS debt securities presented in the consolidated statement of income and comprehensive income includes the reversal of unrealized gains and losses at the time gains or losses are realized. Portfolio Financing Arrangements The Company finances certain of its loans, or participation interests therein, using secured revolving repurchase agreements, senior secured and secured credit agreements, asset-specific financing arrangements, and collateralized loan obligations. The related borrowings are recorded as separate liabilities on the Company’s consolidated balance sheets. Interest income earned on the investments and interest expense incurred on the related borrowings are reported separately on the Company’s consolidated statements of income and comprehensive income. In certain instances, the Company creates structural leverage through the co-origination or non-recourse syndication of a senior loan interest to a third party. For all such syndications the Company has completed through June 30 , 2020, the Company transferred on a non-recourse basis 100 % of the senior mortgage loan that the Company originated or co-originated to a third-party lender and retained as a loan investment a separate mezzanine loan investment secured by a pledge of the equity in the mortgage borrower. With respect to the senior mortgage loan so transferred, the Company retains: no control over the mortgage loan; no economic interest in the mortgage loan; and no recourse to the purchaser or the borrower. Consequently, based on these circumstances and because the Company does not have any continuing involvement with the transferred senior mortgage loan, these syndications are accounted for as sales under GAAP and are removed from the Company’s consolidated financial statements at the time of transfer. The Company’s consolidated balance sheets only include the separate mezzanine loan remaining after the transfer. The Company financed its CRE debt securities using secured revolving repurchase agreements with daily mark-to-market features and contract maturities of typically 30 days. The related borrowings are recorded as liabilities on the Company’s consolidated balance sheets. Interest income earned on the CRE debt securities and interest expense incurred on the related borrowings are reported in interest income and interest expense, respectively, on the Company’s consolidated statements of income and comprehensive income. For more information regarding the Company’s portfolio financing arrangements, see Note 6. Fair Value Measurements The Company follows ASC 820-10, Fair Value Measurements and Disclosures “ASC 820-10” 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. The following methods and assumptions are used by our Manager to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: • Cash and cash equivalents: the carrying amount of cash and cash equivalents approximates fair value. • Loans held for investment, net: using a discounted cash flow methodology employing a discount rate for loans of comparable credit quality, structure, and LTV based upon appraisal information and current estimates of the value of collateral property performed by the Manager, and credit spreads for loans of comparable risk (as determined by the Manager based on |
Loans Held for Investment and t
Loans Held for Investment and the Allowance for Credit Losses | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Loans Held for Investment and the Allowance for Credit Losses | (3) Loans Held for Investment and the Allowance for Credit Losses The Company originates and acquires first mortgage and mezzanine loans secured by commercial properties. The Company considers these loans to belong to a single portfolio segment, Mortgage Loans, because this is the level at which the Company has developed its systematic methodology to determine the Allowance for Credit Losses. For purposes of certain disclosures herein, the Company disaggregates this portfolio segment into the following classes of finance receivables: Senior loans; and Subordinated and Mezzanine loans. These loans can potentially subject the Company to concentrations of credit risk as measured by various metrics, including, without limitation, property type collateralizing the loan, loan size, loans to a single sponsor and loans in a single geographic area. The Company’s loans held for investment are accounted for at amortized cost. Accrued but not yet collected interest is separately reported as accrued interest receivable on the Company’s consolidated balance sheets. Amounts within that caption relating to Loans Held for Investment were $17.9 million as of June 30, 2020. During the three months ended June 30, 2020, the Company did not originate any mortgage loans. The following table details overall statistics for the Company’s loan portfolio as of June 30, 2020 (dollars in thousands): Balance Sheet Portfolio Total Loan Portfolio Number of loans 65 66 Floating rate loans (by unpaid principal balance) 100.0 % 100.0 % Total loan commitments (1) $ 5,635,279 $ 5,767,279 Unpaid principal balance $ 5,055,913 $ 5,055,913 Unfunded loan commitments (2) $ 579,917 $ 579,917 Amortized cost $ 5,042,125 $ 5,042,125 Weighted average credit spread (3) 3.4 % 3.4 % Weighted average all-in yield (3) 5.4 % 5.4 % Weighted average term to extended maturity (in years) (4) 3.5 3.5 Weighted average LTV (5) 65.8 % 65.8 % (1) In certain instances, we create structural leverage through the co-origination or non-recourse syndication of a senior loan interest to a third-party. In either case, the senior mortgage loan (i.e., the non-consolidated senior interest) is not included on our balance sheet. When we create structural leverage through the co-origination or non-recourse syndication of a senior loan interest to a third-party, we retain on our balance sheet a mezzanine loan. Total loan commitment encompasses the entire loan portfolio we originated, acquired and financed. At June 30, 2020, we had one non-consolidated senior interest outstanding of $132.0 million. (2) Unfunded loan commitments may be funded over the term of each loan, subject in certain cases to an expiration date or a force-funding date, primarily to finance property improvements or lease-related expenditures by our borrowers, to finance operating deficits during renovation and lease-up, and in limited instances to finance construction. (3) As of June 30, 2020, all of the Company’s loans were floating rate and were indexed to LIBOR. In addition to credit spread, all-in yield includes the amortization of deferred origination fees, purchase price premium and discount if any, loan origination costs and accrual of both extension and exit fees. Credit spread and all-in yield for the total portfolio assumes the applicable floating benchmark rate as of June 30, 2020 for weighted average calculations. (4) Extended maturity assumes all extension options are exercised by the borrower; provided, however, that our loans may be repaid prior to such date. As of June 30, 2020, based on the unpaid principal balance of our total loan exposure, 57.8% of our loans were subject to yield maintenance or other prepayment restrictions and 42.2% were open to repayment by the borrower without penalty. (5) Except for construction loans, LTV is calculated for loan originations and existing loans as the total outstanding principal balance of the loan or participation interest in a loan (plus any financing that is pari passu with or senior to such loan or participation interest) as of June 30, 2020, divided by the as-is appraised value of our collateral at the time of origination or acquisition of such loan or participation interest. For construction loans only, LTV is calculated as the total commitment amount of the loan divided by the as-stabilized value of the real estate securing the loan. The as-is or as-stabilized (as applicable) value reflects our Manager’s estimates, at the time of origination or acquisition of the loan or participation interest in a loan, of the real estate value underlying such loan or participation interest determined in accordance with our Manager’s underwriting standards and consistent with third-party appraisals obtained by our Manager. The following tables present an overview of the mortgage loan investment portfolio by loan seniority as of June 30, 2020 and December 31, 2019 (dollars in thousands): June 30, 2020 Loans Held for Investment, Net Outstanding Principal Unamortized Premium (Discount), Loan Origination Fees, net Amortized Cost Senior loans $ 5,035,913 $ (13,563 ) $ 5,022,350 Subordinated and mezzanine loans 20,000 (225 ) 19,775 Total $ 5,055,913 $ (13,788 ) $ 5,042,125 Allowance for credit losses (53,557 ) Loans Held for Investment, Net $ 4,988,568 December 31, 2019 Loans Held for Investment, Net Outstanding Principal Unamortized Premium (Discount), Loan Origination Fees, net Amortized Cost Senior loans $ 4,978,176 $ (17,500 ) $ 4,960,676 Subordinated and mezzanine loans 20,000 (287 ) 19,713 Total $ 4,998,176 $ (17,787 ) $ 4,980,389 Allowance for credit losses — Loans Held for Investment, Net $ 4,980,389 For the six months ended June 30, 2020, loan portfolio activity was as follows (dollars in thousands): Carrying Value Balance at December 31, 2019 $ 4,980,389 Additions during the period: Loans originated and acquired 351,650 Additional fundings 124,242 Amortization of origination fees 5,882 Deductions during the period: Collection of principal (1) (420,038 ) Change in allowance for credit losses (53,557 ) Balance at June 30, 2020 $ 4,988,568 (1) Includes the sale of one loan with an unpaid principal balance of $99.3 million sold during the six months ended June 30, 2020 for $85.5 million resulting in a realized loss of $13.8 million. At June 30, 2020 and December 31, 2019, there were no unamortized loan purchase discounts or premiums included in loans held for investment at amortized cost on the consolidated balance sheets. At June 30, 2020 and December 31, 2019, there was $13.8 million and $17.8 million, respectively, of unamortized loan fees and discounts included in Loans Held for Investment, net in the consolidated balance sheets. The Company recognized the accelerated fee component of prepayment fees (yield maintenance payments) of $0.0 million and $0.0 million, respectively, during the three months ended June 30, 2020 and 2019, and $0.3 million and $0.6 million, respectively, during the six months ended June 30, 2020 and 2019. Credit Quality Indicators The Company’s primary credit quality indicator is its risk rating. The Manager assigns each loan to a risk category based on relevant information about the ability of the borrowers to service their debt (including repayment upon loan maturity) such as current operating performance for the property or properties securing the Company’s loans, borrower and guarantor financial information, historical payment experience, credit documentation, public information and current economic trends, market data for the property types and geographic markets applicable to the Company’s loans, among other factors. On a quarterly basis, the Company evaluates all of its loans to assign risk ratings. Based on a 5-point scale, the Company’s loans are rated “1” through “5,” from least risk to greatest risk, respectively, which ratings are defined as follows: 1 Outperform—Exceeds performance metrics (for example, technical milestones, occupancy, rents, net operating income) included in original or current credit underwriting and business plan; 2 Meets or Exceeds Expectations—Collateral performance meets or exceeds substantially all performance metrics included in original or current underwriting / business plan; 3 Satisfactory—Collateral performance meets or is on track to meet underwriting; business plan is met or can reasonably be achieved; 4 Underperformance—Collateral performance falls short of original underwriting, material differences exist from business plan, or both; technical milestones have been missed; defaults may exist, or may soon occur absent material improvement; and 5 Default/Possibility of Loss—Collateral performance is significantly worse than underwriting; major variance from business plan; loan covenants or technical milestones have been breached; timely exit from loan via sale or refinancing is questionable; significant risk of principal loss. The Company generally assigns a risk rating of “3” to all newly originated loan investments during the most recent quarter, except in the case of specific circumstances warranting an exception. The following table presents amortized cost basis by origination year, grouped by risk rating, as of June 30, 2020 (dollars in thousands): June 30, 2020 Amortized Cost by Origination Year 2020 2019 2018 2017 2016 Total Senior loans by internal risk ratings: 1 $ — $ — $ — $ — $ — $ — 2 192,972 — 340,867 87,320 — 621,159 3 163,209 1,801,836 1,134,749 278,944 — 3,378,738 4 — 449,072 158,661 301,199 28,057 936,989 5 — 85,464 — — — 85,464 Total mortgage loans 356,181 2,336,372 1,634,277 667,463 28,057 5,022,350 Subordinated and mezzanine loans by internal risk ratings: 1 $ — $ — $ — $ — $ — $ — 2 — — — — — — 3 — 19,775 — — — 19,775 4 — — — — — — 5 — — — — — — Total subordinated and mezzanine loans — 19,775 — — — 19,775 Total $ 356,181 $ 2,356,147 $ 1,634,277 $ 667,463 $ 28,057 $ 5,042,125 Loans acquired rather than originated are presented in the table above in the column corresponding to the year of origination, not acquisition. The table below summarizes the amortized cost, and results of the Company’s internal risk rating review performed as of June 30, 2020 and December 31, 2019 (dollars in thousands): Rating June 30, 2020 December 31, 2019 1 $ — $ — 2 621,159 903,393 3 3,398,513 3,868,696 4 936,989 208,300 5 85,464 — Total $ 5,042,125 $ 4,980,389 Allowance for Credit Losses (53,557 ) — Carrying Value $ 4,988,568 $ 4,980,389 Weighted Average Risk Rating (1) 3.1 2.9 (1) Weighted Average Risk Rating calculated based on amortized cost balance at period end. The weighted average risk rating calculated as of June 30, 2020 was 3.1, an increase from the 2.9 weighted average risk rating at December 31, 2019. During the three months ended June 30, 2020: • The Company moved one loan from its Category “3” risk rating to its Category “2” risk rating because the collateral has increased rents on renewal leases and new leases while maintaining occupancy, both exceeding the underwritten business plan. • The Company moved one loan from its Category “4” risk rating to its Category “5” risk rating because the borrower was delivered a notice of default and notice of acceleration, and the loan was more than 60 days but fewer than 90 days past due. Allowance for Credit Losses The Company’s reserve developed pursuant to ASC 326 reflects its current estimate of potential credit losses related to its loan portfolio as of June 30, 2020. In addition to the allowance for credit losses, the Company maintains a separate allowance for credit losses related to unfunded loan commitments, and this amount is included in accrued expenses and other liabilities on the consolidated balance sheets. For further information on the policies that govern the estimation of the allowances for credit loss levels, see Note 2, Summary of Significant Accounting Policies The following table presents activity in the allowance for credit losses for the mortgage loan investment portfolio by class of finance receivable for the three and six month periods ended June 30, 2020 (dollars in thousands): For the Three Months Ended June 30, 2020 Senior Loans Subordinated and Mezzanine Loans Total Allowance for credit losses for loans held for investment: Beginning balance at April 1, 2020 $ 73,620 $ 2,038 $ 75,658 Credit loss benefit (22,063 ) (38 ) (22,101 ) Subtotal 51,557 2,000 53,557 Allowance for credit losses on unfunded loan commitments: Beginning balance at April 1, 2020 5,807 1,528 7,335 Credit loss benefit (2,189 ) (28 ) (2,217 ) Subtotal 3,618 1,500 5,118 Total allowance for credit losses $ 55,175 $ 3,500 $ 58,675 For the Six Months Ended June 30, 2020 Senior Loans Subordinated and Mezzanine Loans Total Allowance for credit losses for loans held for investment: Beginning balance (prior to adoption of ASC 326) at January 1, 2020 $ — $ — $ — Impact of adopting ASC 326 16,903 880 17,783 Credit loss expense 34,654 1,120 35,774 Subtotal 51,557 2,000 53,557 Allowance for credit losses on unfunded loan commitments: Beginning balance (prior to adoption of ASC 326) at January 1, 2020 — — — Impact of adopting ASC 326 1,862 — 1,862 Credit loss expense 1,756 1,500 3,256 Subtotal 3,618 1,500 5,118 Total allowance for credit losses $ 55,175 $ 3,500 $ 58,675 During the three months ended June 30, 2020, the allowance for credit losses decreased to $58.7 million primarily due to a decline of $24.8 million in the CECL reserve associated with a loan sold during the quarter ended June 30, 2020, offset by an increase in the general reserve of $0.5 million. Upon the adoption of ASC 326, the allowance for credit losses increased by $19.6 million due to the application of the Current Expected Credit Loss methodology (as described in Note 2) over performing loans on which the Company had previously not carried an allowance for credit losses. For the three months ended March 31, 2020, the Company’s estimate of expected credit losses further increased primarily due to changes in economic outlook stemming from the impact of the COVID-19 pandemic. This increase was caused primarily by the significant adverse change in the macroeconomic forecast utilized in the Company’s loss estimation model due to the COVID-19 pandemic. Additionally, the average risk ratings of the Company’s loans increased from 2.9 as of December 31, 2019 to 3.1 as of June 30, 2020, due primarily to downgrades of nine loans during the first quarter, and one loan during the second quarter, in response to the COVID-19 pandemic. For the three months ended June 30, 2020, the Company’s estimate of expected credit losses was impacted by the sale of a loan at a realized loss less than the amount of CECL reserve attributable to the loan at March 31, sharply recessionary macroeconomic assumptions employed in determining the Company’s model-based CECL reserve, and a decline in total loan commitments and unpaid principal balance. The impact of reduced economic activity due to the COVID-19 pandemic will likely result in reduced activity in capital markets, which may slow the pace of loan repayments, and will likely impact commercial property values and valuation inputs. While the ultimate impact is uncertain, the Company has made certain forward looking adjustments to the inputs of its calculation of the allowance for credit losses to reflect the change in its expectations. No loan was placed on non-accrual status during the quarters ended June 30, 2020 and March 31, 2020, and at December 31, 2019. As of June 30, 2020, four loans were over 90 days past due but were not placed on non-accrual status due to the Company’s understanding that the loans would soon be made current, and because the Company concluded the accrued interest was adequately secured by collateral value. Full past due payment on these four loans was received by the Company in July 2020. Subsequent to June 30, 2020, one loan was placed on non-accrual status as the borrower failed to make the required debt service payments. With the passage of time and continuation of the COVID-19 pandemic, certain borrowers may fail to pay interest which may result in additional loans being placed on non-accrual status during the third quarter of 2020 and later periods. On June 30, 2020, the Company determined that one first mortgage loan secured by multiple hotel properties met the CECL framework’s criteria for individual assessment. At June 30, 2020, the loan was not on non-accrual status. The amortized cost of the loan was $85.5 million and $81.9 million as of June 30, 2020, and December 31, 2019, respectively. Subsequent to June 30, 2020, the borrower failed to make the required debt service payments and thus the loan was placed on non-accrual status. The Company concluded the borrower is unwilling or unable to support the properties, and foreclosure is probable. Accordingly, it utilized the estimated fair value of the collateral on June 30, 2020 to estimate a loan loss reserve as of that date, which is included in the general CECL reserve. The Company’s estimate of the collateral’s fair market value was determined using a discounted cash flow model and Level 3 inputs, which include estimates of property-specific cash flows over a specific holding period, a discount rate of 11.5%, and a terminal capitalization rate of 8.75%. These inputs are based on the location, type and nature of each property, current and anticipated market conditions, and management’s knowledge, experience and judgment. During the quarter ended June 30, 2020, the Company executed six loan modifications with borrowers. As of June 30, 2020, these loans had an aggregate commitment amount of $484.2 million and an aggregate unpaid principal balance of $457.7 million. None of these loan modifications trigger the requirements for accounting as troubled debt restructurings (TDRs), because they meet the safe-harbor conditions of the “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus” issued by banking regulators in consultation with FASB. The agencies encourage financial institutions and other lenders to work prudently with borrowers who are, or may be, unable to meet their contractual payment obligations because of the effects of COVID-19. The agencies view loan modification programs to borrowers who were current prior to the outbreak as positive actions that can mitigate adverse effects due to COVID-19. This includes short-term modifications such as payment deferrals, fee waivers, extensions of repayment terms, or delays in payment that are insignificant. The Company’s loan modifications temporarily reduce the amount of cash interest collected on certain loans, permit the accrual of a portion of the interest due during the modification period to be repaid at a later date by the borrower, and/or permit the use of existing cash loan reserves to pay interest expense and other property-level expenses. All of the modified loans are performing, and none are on non-accrual status. The following table presents the aging analysis on an amortized cost basis of mortgage loans by class of loans as of June 30, 2020 (dollars in thousands): Days Outstanding 30-59 Days 60-89 Days 90 Days or More Total Loans Past Due Current Total Loans 90 Days or More Past Due and Accruing Loans Receivable: Senior loans $ 87,637 $ 145,385 $ 28,057 $ 261,079 $ 4,761,271 $ 5,022,350 $ 28,057 Subordinated and mezzanine loans — — — — 19,775 19,775 — Total $ 87,637 $ 145,385 $ 28,057 $ 261,079 $ 4,781,046 $ 5,042,125 $ 28,057 At December 31, 2019, all loans were current. |
Available-for-Sale Debt Securit
Available-for-Sale Debt Securities | 6 Months Ended |
Jun. 30, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Available-for-Sale Debt Securities | (4) Available-for-Sale Debt Securities As of June 30, 2020, the Company did not own any CRE debt securities. As of December 31, 2019, the Company had 38 CRE debt securities designated as AFS debt securities. The Company designates its CRE debt securities as AFS upon acquisition. The Company did not acquire any CRE debt securities during the three months ended June 30, 2020. During the six months ended June 30, 2020, all but one of the Company’s CRE debt securities portfolio was pledged as collateral under daily mark-to-market secured revolving repurchase facilities. During the three months ended March 31, 2020, the Company sold 11 of its CRE CLO investments for total net proceeds of $151.6 million, recognizing a loss on sale of $36.2 million included in Securities Gains (Impairments) on the consolidated statement of income and comprehensive income. Fluctuations in the value of the Company’s CRE debt securities portfolio resulted in the Company being required to post cash collateral with the Company’s lenders under these facilities. To mitigate the impact to the Company’s business from these developments, the Company decided in late March 2020 to sell all its CRE debt securities portfolio. Accordingly, at March 31, 2020, the Company wrote down the entire portfolio to its estimated fair value (on securities where amortized cost basis exceeded fair value), and recorded an impairment charge of $167.3 million, which was recognized as expense in Securities Gains (Impairments) on the consolidated statement of income and comprehensive income. In April 2020, the Company sold the remainder of its CRE debt securities portfolio with an aggregate face value of $782.0 million generating gross sales proceeds of $614.8 million. After retiring $581.7 million of repurchase financing and generating net cash proceeds of $33.1 million, the Company recorded aggregate losses from these sales of $167.3 million approximately equal to the impairment charge recorded during the three months ended March 31, 2020. For the six months ended June 30, 2020, the Company recorded total impairment charges of $203.4 million recognized as expense in Securities Gains (Impairments) on the consolidated statement of income and comprehensive income, offset by a small realized gain. As of June 30, 2020, the Company did not have any CRE debt securities. The following tables summarize the amortized cost, fair value, and unrealized gain of the Company’s CRE debt securities at December 31, 2019 (dollars in thousands): December 31, 2019 Face Amount Unamortized Premium (Discount), net Amortized Cost Gross Unrealized Gain Estimated Fair Value Investments, at Fair Value CRE CLO $ 750,187 $ 207 $ 750,394 $ 1,006 $ 751,400 Commercial Mortgage-Backed Securities 36,162 (55 ) 36,107 45 36,152 $ 786,349 $ 152 $ 786,501 $ 1,051 $ 787,552 The amortized cost and estimated fair value of the Company’s CRE debt securities by contractual maturity, not expected life, as of December 31, 2019, are shown in the following table (dollars in thousands): December 31, 2019 Amortized Cost Estimated Fair Value Maturity Date After one, within five years $ 1,126 $ 1,143 After five years 785,375 786,409 Total investment in CRE debt securities, at amortized cost and estimated fair value $ 786,501 $ 787,552 |
Variable Interest Entities and
Variable Interest Entities and Collateralized Loan Obligations | 6 Months Ended |
Jun. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Variable Interest Entities and Collateralized Loan Obligations | (5) Variable Interest Entities and Collateralized Loan Obligations Subsidiaries of the Company have issued two collateralized loan obligations to finance approximately $2.2 billion or 42.5% of its loan investment portfolio, measured by unpaid principal balance. 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”). TRTX 2019-FL3 permits the Company, during the 24 months after closing of FL3, to contribute eligible new loans or participation interests (the “FL3 Additional Interests”) in loans to TRTX 2019-FL3 in exchange for cash, which provides additional liquidity to the Company to originate new loan investments as underlying loans repay. For the three months ended June 30, 2020, the Company utilized the reinvestment feature two times, contributing $5.8 million of new loans or participating interests in loans, and receiving $2.0 million of cash, after the repayment of $3.8 million of existing borrowings, including accrued interest. For the six months ended June 30, 2020, the Company utilized the reinvestment feature six times, contributing $163.1 million of new loans or participating interests in loans, and receiving $49.3 million of cash, after the repayment of $113.8 million of existing borrowings, including accrued interest. FL3 Mortgage Assets represented 24.3% 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 June 30, 2020. At June 30, 2020, TRTX 2019-FL3 had $0.1 million of cash available to acquire eligible assets. In connection with TRTX 2019-FL3, the Company incurred $7.8 million of issuance costs which are amortized on an effective yield basis over the expected life of the investment-grade notes issued based upon the expected repayment behavior of the loans collateralizing the notes after giving effect to the reinvestment period, both as of the FL3 Closing Date. As of June 30, 2020, the Company’s unamortized issuance costs related to TRTX 2019-FL3 were $6.2 million. Interest expense on the outstanding FL3 Notes is payable monthly. For the three and six months ended June 30, 2020, interest expense on the outstanding FL3 Notes (excluding amortization of deferred financing costs) of $4.8 million and $12.1 million, respectively, is included in the Company’s consolidated statements of income and comprehensive income. On November 29, 2018 (the “FL2 Closing Date”), Sub-REIT entered into a collateralized loan obligation (“TRTX 2018-FL2” or “FL2”). The TRTX 2018-FL2 indenture permits the Company, during the 24 months after closing of FL2, 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 three months ended June 30, 2020, the Company utilized the reinvestment feature twice, contributing $58.8 million of new loans or participation interests in loans, and receiving net cash proceeds of $20.5 million, after the repayment of $38.3 million of existing borrowings, including accrued interest. For the six months ended June 30, 2020, the Company utilized the reinvestment feature five times, contributing $133.0 million of new loans or participation interests in loans, and receiving net cash proceeds of $65.6 million, after the repayment of $67.4 million of existing borrowings, including accrued interest. At June 30, 2020, TRTX 2018-FL2 had approximately $81.2 million in cash available to acquire eligible assets. In connection with TRTX 2018-FL2, the Company incurred $8.7 million of issuance costs which are amortized on an effective yield basis over the expected life of the investment-grade notes (the “FL2 Notes”) issued based upon the expected repayment behavior of the loans collateralizing the notes and the reinvestment period, both as of the FL2 Closing Date. As of June 30, 2020, the Company’s unamortized issuance costs were $5.0 million. Interest expense on the outstanding FL2 Notes is payable monthly. For the three and six months ended June 30, 2020, interest expense on the outstanding FL2 Notes (excluding amortization of deferred financing costs) of $4.0 million and $10.0 million, respectively, 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 issuers of the FL3 Notes (the “FL3 Issuers”) and the issuers of the FL2 Notes (the “FL2 Issuers”) to determine if they were VIEs and, if so, whether the Company was the primary beneficiary of their operating activities. This analysis caused the Company to conclude that the FL3 Issuers and the FL2 Issuers were VIEs and that the Company was the primary beneficiary. The Company is the primary beneficiary because it has the ability to control the most significant activities of the FL3 Issuers and the FL2 Issuers, the obligation to absorb losses to the extent of its equity investments, and the right to receive benefits, that could potentially be significant to these entities. Accordingly, the Company consolidates the FL3 Issuers and the FL2 Issuers. The Company’s total assets and total liabilities as of June 30, 2020 and December 31, 2019 included the following VIE assets and liabilities of TRTX 2019-FL3 and TRTX 2018-FL2 (dollars in thousands): June 30, 2020 December 31, 2019 ASSETS Cash and Cash Equivalents $ 38,556 $ 17,075 Accounts Receivable from Servicer/Trustee 80,206 1,464 Accrued Interest Receivable 1,434 2,178 Loans Held for Investment 2,162,296 2,229,034 Total Assets $ 2,282,492 $ 2,249,751 LIABILITIES Accrued Interest Payable $ 1,412 $ 2,512 Accrued Expenses 375 732 Collateralized Loan Obligations 1,823,456 1,821,128 Payable to Affiliates 4,620 4,620 Deferred Revenue 133 — Total Liabilities $ 1,829,996 $ 1,828,992 The following tables outline TRTX 2019-FL3 and TRTX 2018-FL2 loan collateral and borrowings under the TRTX 2019-FL3 and TRTX 2018-FL2 collateralized loan obligations as of June 30, 2020 and December 31, 2019 (dollars in thousands): June 30, 2020 Collateral (loan investments) Debt (notes issued) Outstanding Principal Carrying Value Face Value Carrying Value $ 2,150,472 $ 2,150,472 $ 1,834,761 $ 1,823,456 December 31, 2019 Collateral (loan investments) Debt (notes issued) Outstanding Principal Carrying Value Face Value Carrying Value $ 2,229,034 $ 2,229,034 $ 1,834,761 $ 1,821,128 Assets held by the FL3 Issuers and the FL2 Issuers are restricted and can only be used to settle obligations of the related VIE. The liabilities of the FL3 Issuers and the FL2 Issuers are non-recourse to the Company and can only be satisfied from the assets of the related VIE. The following table outlines the weighted average spreads and maturities for TRTX 2019-FL3 and TRTX 2018-FL2 loan collateral and borrowings under the TRTX 2019-FL3 and TRTX 2018-FL2 collateralized loan obligations as of June 30, 2020 and December 31, 2019 (dollars in thousands): June 30, 2020 December 31, 2019 Weighted Average Spread (%) Weighted Average Maturity (Years) Weighted Average Spread (%) Weighted Average Maturity (Years) Collateral (loan investments) TRTX 2018-FL2 3.69 % 4.5 3.82 % 4.2 TRTX 2019-FL3 3.18 % 4.2 3.33 % 4.1 Debt (notes issued) TRTX 2018-FL2 1.45 % 17.4 1.45 % 17.9 TRTX 2019-FL3 1.44 % 14.3 1.44 % 14.8 (1) Yield on collateral is based on cash coupon. (2) Loan term represents weighted-average final maturity, assuming extension options are exercised by the borrower. Repayments of CLO notes are dependent on timing of related collateral loan asset repayments post-reinvestment period. The term of the CLO notes represents the rated final distribution date. |
Secured Revolving Repurchase Ag
Secured Revolving Repurchase Agreements, Senior Secured and Secured Credit Agreements, and Asset-Specific Financing | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Secured Revolving Repurchase Agreements, Senior Secured and Secured Credit Agreements, and Asset-Specific Financing | (6) Secured Revolving Repurchase Agreements, Senior Secured and Secured Credit Agreements, and Asset-Specific Financing At June 30, 2020 and December 31, 2019, the Company had secured revolving repurchase agreements, senior secured and secured credit agreements and an asset-specific financing, all of which were used to finance certain of the Company’s loan investments. These financing arrangements bear interest at rates equal to LIBOR plus a credit spread negotiated between the Company and each lender, often a separate credit spread for each pledge of collateral, which is primarily based on property type and advance rate against the unpaid principal balance of the pledged loan. Except for the asset-specific financing, these borrowing arrangements contain mark-to-market provisions that permit the lenders to issue margin calls to the Company in the event that the collateral properties underlying the Company’s loans pledged to the Company’s lenders experience a non-temporary decline in value due to reasons other than changing credit spreads for similar borrowing obligations. In connection with one of these borrowing arrangements, the lender is also permitted to issue margin calls to the Company in the event the lender determines credit spreads have changed for similar borrowing obligations. At June 30, 2020 and December 2019, the Company had none and four, respectively, secured revolving repurchase agreements which were used to finance its CRE CLO debt investments. These financing arrangements bore interest at a rate equal to LIBOR plus a credit spread negotiated between the Company and its lenders, which was determined primarily by the haircut amount (which is equal to one minus the advance rate percentage against collateral for our secured revolving repurchase agreements taken as a whole) and the rating of the bonds so financed. These borrowing arrangements contained daily mark-to-market provisions that permitted the lenders to issue margin calls to the Company in response to changing interest rates and credit spreads on the CRE debt securities so financed. Additionally, these borrowing arrangements typically had maturities of 30 days subject to renewal at the lenders’ option. On May 4, 2020, the Company exercised an existing option to extend through May 4, 2021 its secured revolving repurchase agreement with Morgan Stanley Bank N.A. On June 29, 2020, the Company exercised an existing option to extend its Goldman Sachs Bank USA secured revolving repurchase facility through August 19, 2021, reduced the commitment amount from $750.0 million to $250.0 million, and obtained an accordion option to increase the commitment amount up to $500.0 million. Additionally, on June 26, 2020, the Company extended the maturity date of its Bank of America senior secured facility to September 29, 2021, reduced the commitment amount from $500.0 million to $200.0 million, and retained an accordion option to increase the total commitment up to $500.0 million. The following table presents certain information regarding the Company’s secured revolving repurchase agreements, senior secured and secured credit agreements, and asset-specific financings as of June 30, 2020 and December 31, 2019. Except as otherwise noted, all agreements are on a full or partial recourse basis (dollars in thousands): June 30, 2020 Financing Arrangement Secured Revolving Repurchase Agreements Initial Maturity Date Extended Maturity Date Index Rate Weighted Average Credit Spread Interest Rate Commitment Amount Maximum Current Availability Balance Outstanding Principal Balance of Collateral (1) Amortized Cost of Collateral Goldman Sachs (1) 08/19/21 08/19/22 1 Month LIBOR 2.7 % 2.9 % $ 250,000 $ 119,145 $ 130,855 $ 253,285 $ 252,201 Wells Fargo (1) 04/18/22 04/18/22 1 Month LIBOR 1.8 % 1.9 % 750,000 396,129 353,871 535,619 533,092 Barclays (1) 08/13/22 08/13/22 1 Month LIBOR 1.5 % 1.7 % 750,000 199,826 550,174 750,619 748,743 Morgan Stanley (1) 05/04/21 N/A 1 Month LIBOR 1.8 % 2.0 % 500,000 91,083 408,917 596,590 593,951 JP Morgan (1) 08/20/21 08/20/23 1 Month LIBOR 1.6 % 1.7 % 400,000 194,720 205,280 354,286 349,402 US Bank (1) 07/09/22 07/09/24 1 Month LIBOR 1.5 % 1.7 % 140,930 71,346 69,584 99,405 99,054 Subtotal - Loan Investments $ 2,790,930 $ 1,072,249 $ 1,718,681 $ 2,589,804 $ 2,576,443 Senior Secured and Secured Credit Agreements Bank of America (1) 09/29/21 09/29/22 1 Month LIBOR 1.8 % 1.9 % 200,000 62,442 137,558 183,411 183,411 Citibank (2)(3) 07/12/20 07/12/20 1 Month LIBOR 2.3 % N/A 160,000 160,000 — — — Subtotal $ 360,000 $ 222,442 $ 137,558 $ 183,411 $ 183,411 Asset-specific Financing Institutional Lender 10/09/20 10/09/20 1 Month LIBOR 4.2 % 4.3 % 77,000 — 77,000 112,000 111,799 Subtotal $ 77,000 — $ 77,000 $ 112,000 $ 111,799 Total $ 3,227,930 $ 1,294,691 $ 1,933,239 $ 2,885,215 $ 2,871,653 (1) Borrowings under secured revolving repurchase agreements and a senior secured credit agreement with a guarantee for 25% recourse from Holdco. (2) Borrowings under the secured credit agreement with a guarantee for 100% recourse. (3) Subsequent to June 30, 2020, the Citibank credit facility expired by its terms. December 31, 2019 Financing Arrangement Secured Revolving Repurchase Agreements Initial Maturity Date Extended Maturity Date Index Rate Weighted Average Credit Spread Interest Rate Commitment Amount Maximum Current Availability Balance Outstanding Principal Balance of Collateral Amortized Cost of Collateral Goldman Sachs (1) 08/19/20 08/19/22 1 Month LIBOR 1.8 % 3.5 % $ 750,000 $ 704,563 $ 45,437 $ 288,032 $ 285,962 Wells Fargo (1) 04/18/22 04/18/22 1 Month LIBOR 1.8 % 3.6 % 750,000 355,372 394,628 593,742 591,238 Barclays (1) 08/13/22 08/13/22 1 Month LIBOR 1.5 % 3.3 % 750,000 318,240 431,760 542,927 540,725 Morgan Stanley (1) 05/04/20 N/A 1 Month LIBOR 1.9 % 3.6 % 500,000 105,253 394,747 519,638 515,984 JP Morgan (1) 08/20/21 08/20/23 1 Month LIBOR 1.6 % 3.3 % 400,000 181,552 218,448 300,677 295,341 US Bank (1) 07/09/22 07/09/24 1 Month LIBOR 1.8 % 3.6 % 152,240 15,641 136,599 173,253 172,898 Subtotal - Loan Investments 1 Month LIBOR 3,302,240 1,680,621 1,621,619 2,418,269 2,402,148 Goldman Sachs (2) 01/12/20 01/12/20 1 Month LIBOR 0.9 % 2.7 % 81,143 — 81,143 94,629 94,644 JP Morgan (2) 01/17/20 01/17/20 1 Month LIBOR 0.9 % 2.6 % 475,881 — 475,881 544,105 545,080 Wells Fargo (2) 01/16/20 01/16/20 1 Month LIBOR 1.0 % 2.7 % 135,774 — 135,774 161,153 161,384 Royal Bank of Canada (2) N/A N/A N/A N/A N/A — — — — — Subtotal - CRE Debt Securities 692,798 — 692,798 799,887 801,108 Subtotal $ 3,995,038 $ 1,680,621 $ 2,314,417 $ 3,218,156 $ 3,203,256 Senior Secured and Secured Credit Agreements Bank of America (1) 09/29/20 09/29/20 1 Month LIBOR 1.8 3.8 500,000 354,363 145,637 182,882 182,882 Citibank (3) 07/12/20 07/12/20 1 Month LIBOR 2.3 4.1 160,000 160,000 — — — Subtotal $ 660,000 $ 514,363 $ 145,637 $ 182,882 $ 182,882 Asset-specific Financing Institutional Lender 10/09/20 10/09/20 1 Month LIBOR 4.2 % 5.9 % 77,000 — 77,000 112,000 111,436 Subtotal $ 77,000 — $ 77,000 $ 112,000 $ 111,436 Total $ 4,732,038 $ 2,194,984 $ 2,537,054 $ 3,513,038 $ 3,497,574 (1) Borrowings under secured revolving repurchase agreements and a senior secured credit agreement with a guarantee for 25% recourse from Holdco. (2) Borrowings under secured revolving repurchase agreements with a guarantee for 100% recourse from Holdco. Maturity Date represents the sooner of the next maturity date of the CRE debt securities secured revolving repurchase agreement, or roll-over date for the applicable underlying trade confirmation, subsequent to December 31, 2019. All of the financing arrangements were extended subsequent to period end. (3) Borrowings under the secured credit agreement include a guarantee for 100% recourse. The following table presents the recourse and mark-to-market provisions for the Company’s secured financing arrangements as of June 30, 2020: June 30, 2020 Financing Arrangement Secured Revolving Repurchase Agreements Initial Maturity Date Extended Maturity Date Recourse Percentage Basis of Margin Calls Loan Investments Goldman Sachs 08/19/21 08/19/22 25 % Credit Wells Fargo 04/18/22 04/18/22 25 % Credit Barclays 08/13/22 08/13/22 25 % Credit Morgan Stanley 05/04/21 N/A 25 % Credit JP Morgan 08/20/21 08/20/23 25 % Credit and Spread US Bank 07/09/22 07/09/24 25 % Credit Senior Secured and Secured Credit Agreements Bank of America 09/29/21 09/29/22 25 % Credit Citibank 07/12/20 07/12/20 100 % N/A Asset-specific Financing Institutional Lender 10/09/20 10/09/20 N/A N/A The following table presents the recourse and mark-to-market provisions for the Company’s secured financing arrangements as of December 31, 2019: December 31, 2019 Financing Arrangement Secured Revolving Repurchase Agreements Initial Maturity Date Extended Maturity Date Recourse Percentage Basis of Margin Calls Loan Investments Goldman Sachs 08/19/20 08/19/22 25 % Credit Wells Fargo 04/18/22 04/18/22 25 % Credit Barclays 08/13/22 08/13/22 25 % Credit Morgan Stanley 05/04/20 N/A 25 % Credit JP Morgan 08/20/21 08/20/23 25 % Credit and Spread US Bank 07/09/22 07/09/24 25 % Credit CRE Debt Securities Goldman Sachs 01/12/20 01/12/20 100 % Spread JP Morgan 01/17/20 01/17/20 100 % Spread Wells Fargo 01/16/20 01/16/20 100 % Spread Royal Bank of Canada N/A N/A 100 % Spread Senior Secured and Secured Credit Agreements Bank of America 09/29/20 09/29/20 25 % Credit Citibank 07/12/20 07/12/20 100 % N/A Asset-specific Financing Institutional Lender 10/09/20 10/09/20 N/A N/A Secured Revolving Repurchase Agreements At June 30, 2020 and December 31, 2019, the Company had six secured revolving repurchase agreements to finance its loan investing activities. Credit spreads vary depending upon the collateral type and advance rate. Assets pledged at June 30, 2020 and December 31, 2019 consisted of 62 and 60 mortgage loans, or participation interests therein, respectively. Under these secured revolving repurchase agreements, the Company transfers all of its rights, title and interest in the loans to the repurchase counterparty in exchange for cash, and simultaneously agrees to reacquire the asset at a future date for an amount equal to the cash exchanged plus an interest factor. The repurchase counterparty (lender) collects all principal and interest on related loans and remits to the Company the net amount after the lender collects its interest and other fees. The secured revolving repurchase agreements used to finance loan investments are 25% recourse to Holdco. At June 30, 2020, the Company had no secured revolving repurchase agreements to finance its CRE debt securities as each agreement was terminated during the quarter ended June 30, 2020. At December 31, 2019, the Company had four secured revolving repurchase agreements to finance its CRE debt securities. The facility commitment amounts were based on the carrying value of the assets pledged. Credit spreads varied depending upon the collateral type and advance rate. At December 31, 2019, CRE debt securities pledged consisted of 35 CRE CLO investments and two CMBS investments. The secured revolving repurchase agreements used to finance CRE debt securities were 100% recourse to Holdco and were considered short-term borrowings. Each of the Company’s secured revolving repurchase agreements has “margin maintenance” provisions, which are designed to allow the repurchase lender to maintain a certain margin of credit enhancement against the assets which serve as collateral. The lender’s margin amount is typically based on a percentage of the market value of the asset and/or mortgaged property collateral; however, certain secured revolving repurchase agreements may also involve margin maintenance based on maintenance of a minimum debt yield with respect to the cash flow from the underlying real estate collateral. Market value determinations and redeterminations may be made by the repurchase lender in its sole discretion subject to certain specified parameters, which may involve the limitation or enumeration of factors which the repurchase lender may consider when determining market value. In the case of assets that serve as collateral under the Company’s secured revolving repurchase agreements secured by loans, these considerations may include credit-based factors (which are generally based on factors other than those related to the capital markets) and spread-based factors (which are generally based on changes in observable credit spreads in the market for these assets) as described more specifically in the preceding table. The market value of the assets that served as collateral under the Company’s secured revolving repurchase agreements secured by CRE debt securities was redetermined on a daily basis. As a result, during the six months ended June 30, 2020, extreme short-term volatility and negative pressure in the financial markets resulted in the Company being required to post cash collateral with the Company’s lenders under these agreements. During the period from March 1, 2020 to March 31, 2020, the Company received margin call notices with respect to borrowings against its CRE CLO investment portfolio aggregating $170.9 million, which were satisfied with a combination of $89.8 million of cash, cash proceeds from bond sales, and increases in market values prior to quarter-end. At March 31, 2020, unpaid margin calls totaled $19.0 million, which were satisfied in April though cash proceeds from bond sales and increases in market values prior to the Company’s final disposition of its CRE debt securities investments, which occurred on April 29, 2020. At June 30, 2020, the Company did not own any CRE debt securities and therefore had no associated borrowings and no unsatisfied margin calls. The following table summarizes certain characteristics of the Company’s secured revolving repurchase agreements secured by commercial mortgage loans, including counterparty concentration risks, at June 30, 2020 (dollars in thousands): June 30, 2020 Loan Financings Commitment Amount UPB of Collateral Amortized Cost of Collateral (1) Amounts Payable (2) Net Counterparty Exposure (3) Percent of Stockholders' Equity Days to Extended Maturity (4) Goldman Sachs Bank $ 250,000 $ 253,285 $ 254,757 $ 130,945 $ 123,812 8.4 % 780 Wells Fargo 750,000 535,619 537,394 354,301 183,093 12.5 % 657 Barclays 750,000 750,619 749,432 550,535 198,897 13.5 % 774 Morgan Stanley Bank (4) 500,000 596,590 595,513 409,004 186,509 12.7 % N/A JP Morgan Chase Bank 400,000 354,286 351,802 205,335 146,467 10.0 % 1,146 US Bank 140,930 99,405 99,012 69,652 29,360 2.0 % 1,470 Total / Weighted Average $ 2,790,930 $ 2,589,804 $ 2,587,910 $ 1,719,772 $ 868,138 838 (1) Loan amounts shown in the table include interest receivable of $11.5 million and are net of premium, discount and origination fees of $13.4 million. (2) Loan amounts shown in the table include interest payable of $1.1 million and do not reflect unamortized deferred financing fees of $9.7 million. (3) Loan amounts r epresent the net carrying value of the commercial real estate assets sold under agreements to repurchase, including accrued interest plus any cash or assets on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest. (4) The 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 approval. 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 Amortized Cost of Collateral (1) Amounts Payable (2) Net Counterparty Exposure (3) Percent of Stockholders' Equity Days to Extended Maturity (4) Goldman Sachs Bank $ 750,000 $ 288,032 $ 289,674 $ 45,900 $ 243,774 16.6 % 962 Wells Fargo 750,000 593,742 594,832 395,039 199,793 13.6 % 839 Barclays 750,000 542,927 542,191 432,399 109,792 7.5 % 956 Morgan Stanley Bank (4) 500,000 519,638 518,048 395,356 122,692 8.4 % N/A JP Morgan Chase Bank 400,000 300,677 297,248 218,744 78,504 5.4 % 1,328 US Bank 152,240 173,741 173,045 136,734 36,311 2.5 % 1,652 Subtotal / Weighted Average $ 3,302,240 $ 2,418,757 $ 2,415,038 $ 1,624,172 $ 790,866 1,062 CRE Debt Securities Financings Commitment Amount UPB of Collateral Amortized Cost of Collateral (1) Amounts Payable (2) Net Counterparty Exposure (3) Percent of Stockholders' Equity Days to Extended Maturity (4) Goldman Sachs Bank $ 81,143 $ 94,629 $ 108,414 $ 81,362 $ 27,052 1.8 % 12 JP Morgan 475,881 $ 544,105 $ 546,260 $ 476,307 $ 69,953 4.8 % 17 Wells Fargo 135,774 $ 161,153 $ 148,738 $ 136,021 $ 12,717 0.9 % 16 Royal Bank of Canada — — — — — — — Subtotal / Weighted Average $ 692,798 $ 799,887 $ 803,412 $ 693,690 $ 109,722 16 Total / Weighted Average - Loans and CRE Debt Securities $ 3,995,038 $ 3,218,644 $ 3,218,450 $ 2,317,862 $ 900,588 685 (1) Loan amounts shown in the table include interest receivable of $13.0 million and are net of premium, discount and origination fees of $16.7 million. CRE debt securities shown in the table include interest receivable of $2.3 million and are net of premium, discount, and unrealized gains of $1.2 million. (2) Loan amounts shown in the table include interest payable of $2.5 million and do not reflect unamortized deferred financing fees of $10.3 million. CRE debt securities shown in the table include interest payable of $0.9 million. (3) Loan amounts represent the net carrying value of the commercial real estate assets sold under agreements to repurchase, including accrued interest plus any cash or assets on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest. CRE debt securities represent the net carrying value of AFS securities sold under agreements to repurchase, including accrued interest plus any cash or assets on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest. (4) The secured revolving repurchase agreement provided by Morgan Stanley Bank is excluded from the “Days to Extended Maturity” column because it has no limit on the maximum number of permitted extensions, subject to satisfaction of certain conditions and approvals. For borrowings secured by CRE debt securities, the extended maturity represents the sooner of the next maturity date of the CRE debt securities, the secured revolving repurchase agreement, or the roll-over date for the applicable underlying trade confirmation, subsequent to December 31, 2019. These contracts typically have initial terms of 30 days. 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 $200.0 million, which was reduced from $500.0 million at the Company’s election as part of an as-of-right extension executed in June 2020. The senior secured agreement has an accordion feature that permits the Company to increase the commitment amount in increments of $50.0 million up to a maximum of $500.0 million. The senior secured agreement has a current maturity of September 29, 2021 and borrowings bear interest at LIBOR plus 1.75%. At June 30, 2020, $137.6 million was outstanding under the secured credit agreement. This agreement is 25% recourse to Holdco. At June 30, 2020, the Company had a secured revolving credit agreement (the “Citi Agreement”), with Citibank, N.A. with aggregate secured borrowing capacity of up to $160.0 million, subject to borrowing base availability and certain other conditions, which the Company occasionally used to finance originations or acquisitions of eligible loans on an interim basis until permanent financing was arranged. The Citi Agreement had an initial maturity date of July 12, 2020, and borrowings bore 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 Citi Agreement with respect to individual pledged assets was 70% and declined over the borrowing term of up to 90 days, after which borrowings against an asset must be repaid. At June 30, 2020, the Company did not have any amounts outstanding, and no assets were pledged, under the Citi Agreement. This agreement was 100% recourse to Holdco. See Note 16 to the Consolidated Financial Statements for information regarding the Company’s decision to allow the Credit Agreement to expire by its terms. Financial Covenants The Company’s financial covenants and guarantees for outstanding borrowings related to our secured revolving repurchase agreements, senior secured and secured credit agreements require Holdco to maintain compliance with the following financial covenants (among others), which were revised on May 28, 2020 as follows: Financial Covenant Current Maintenance Maintenance Prior to May 28, 2020 Cash Liquidity Minimum cash liquidity of no less than the greater of: $10.0 million; and 5.0% of Holdco’s recourse indebtedness Minimum cash liquidity of no less than the greater of: $10.0 million; and 5.0% of Holdco’s recourse indebtedness Tangible Net Worth $1.1 billion as of April 1, 2020, plus 75% of future equity issuances thereafter Minimum tangible net worth of at least 75% of the net cash proceeds of all prior equity issuances made by Holdco or the Company, plus 75% of the net cash proceeds of all subsequent equity issuances made by Holdco or the Company Debt to Equity Debt to Equity ratio not to exceed 3.5 to 1.0 with "equity" and "equity adjustment" as defined below. Debt to Equity ratio not to exceed 3.5 to 1.0 Interest Coverage Minimum interest coverage ratio of no less than 1.4 to 1.0 until December 2, 2020, and no less than 1.5 to 1.0 thereafter. Minimum interest coverage ratio of no less than 1.5 to 1.0. With respect to the tangible net worth covenant, the amendments as of May 28, 2020 revise the definition of tangible net worth such that the baseline amount for testing is reset as of April 1, 2020 to $1.1 billion plus 75% of future equity issuances after April 1, 2020. With respect to the debt to equity covenant, the amendments revise the definition of equity to include: preferred equity; and an adjustment equal to the sum of the all then-current Current Expected Credit Loss reserves and any loan loss reserves, write-downs, impairments or realized losses taken against the value of any assets of Holdco or its subsidiaries from and after April 1, 2020; provided, however, that the equity adjustment may not exceed the amount of (a) Holdco’s total equity less (b) the product of Holdco’s total indebtedness multiplied by 25%. Financial Covenant relating to the Series B Preferred Stock For long as the Series B Preferred Stock is outstanding, the Company is required to maintain a debt to equity ratio not greater than 3.0 to 1.0. For the purpose of determining this ratio, the aggregate liquidation preference of the outstanding shares of Series B Preferred Stock is excluded from the calculation of total indebtedness of the Company and its subsidiaries. Covenant Compliance The Company was in compliance with all financial covenants to the extent that balances were outstanding as of June 30, 2020 and December 31, 2019. However, as previously disclosed in the Company’s Quarterly Report on Form 10-Q filed with the SEC on May 11, 2020, as of March 31, 2020, the Company was not in compliance with respect to certain covenants included in certain of these agreements. During the three months ended June 30, 2020, this non-compliance was cured and the Company received waivers from the lender under each of the applicable agreements. Negative impacts on the Company’s business caused by COVID-19 have and will likely continue to make it more difficult to meet or satisfy these covenants, and there can be no assurance that the Company will remain in compliance with these covenants in the future. Asset-Specific Financings As of June 30, 2020 and December 31, 2019, the Company had one asset-specific financing arrangement to finance one of its loan investments. On April 2, 2019, the Company entered into an asset-specific financing with an institutional lender that is secured by one loan held for investment. The asset-specific financing does not provide for additional advances. The current initial maturity of this agreement is October 9, 2020, with an extension of 12 months subject to satisfaction of certain requirements by the borrower on the underlying mortgage loan. As of June 30, 2020, the asset-specific financing principal balance is $77.0 million and bears interest at LIBOR plus 4.2%. |
Schedule of Maturities
Schedule of Maturities | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities | (7) Schedule of Maturities The future principal payments for the five years subsequent to June 30, 2020 and thereafter are as follows (in thousands): Collateralized loan obligations Secured revolving repurchase agreements Senior secured and secured credit agreements Asset-specific financing 2020 $ 265,852 $ 176,464 $ 137,558 $ 77,000 2021 878,971 918,326 — — 2022 581,129 623,891 — — 2023 108,809 — — — 2024 — — — — Thereafter — — — — Total $ 1,834,761 $ 1,718,681 $ 137,558 $ 77,000 The scheduled maturities for the investment grade bonds issued by TRTX 2018-FL2 and TRTX-2019 FL3 are based upon the initial maturity dates of the underlying loans currently held by each trust with no future reinvestment assumed. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (8) Fair Value Measurements The Company’s consolidated balance sheet includes Level I fair value measurements related to cash equivalents, restricted cash, accounts receivable, and accrued liabilities. At June 30, 2020, the Company had $173.2 million invested in money market funds with original maturities of less than 90 days. The consolidated balance sheet also includes Loans Held for Investment, the assets and liabilities of TRTX 2018-FL2 and TRTX 2019-FL3 (as of June 30, 2020 and December 31, 2019), and secured financing arrangements that are considered Level III fair value measurements that are not measured at fair value on a recurring basis but are subject to fair value adjustments utilizing the fair value of the underlying collateral when there is evidence of impairment and when the loan is dependent solely on the collateral for payment of principal and interest. The Company had no non-recurring fair value items as of December 31, 2019. The following tables provide information about the fair value of the Company’s financial assets and liabilities on the Company’s consolidated balance sheets as of June 30, 2020 and December 31, 2019 (dollars in thousands): June 30, 2020 Fair Value Carrying Value Level I Level II Level III Financial Assets Loans Held for Investment $ 4,988,568 $ — $ — $ 4,941,451 Financial Liabilities Collateralized Loan Obligations 1,823,456 — — 1,870,231 Secured Financing Arrangements 1,922,820 — — 1,985,307 December 31, 2019 Fair Value Carrying Value Level I Level II Level III Financial Assets Available for sale CRE Debt Securities $ 787,552 $ — $ 787,552 $ — Loans Held for Investment 4,980,389 — — 5,004,379 Financial Liabilities Collateralized Loan Obligations 1,806,428 — — 1,806,428 Secured Financing Arrangements 2,525,128 — — 2,525,128 At June 30, 2020, the estimated fair value of Loans Held for Investment was $4.9 billion, or $47.1 million less than carrying value, due to an increase since February 2020 in credit spreads on transitional first mortgage loans due primarily to the COVID-19 pandemic. At December 31, 2019, the estimated fair value of Loans Held for Investment was $5.0 billion, which approximated carrying value, because contractual loan credit spreads reflected then-current market terms. The weighted average gross spread at June 30, 2020 and December 31, 2019 was 3.39% and 3.48%, respectively. The weighted average years to maturity at June 30, 2020 and December 31, 2019 was 3.5 years and 3.8 years, respectively, assuming full extension of all loans. At June 30, 2020, the estimated fair value of the secured financing agreements was $2.0 billion, or $62.5 million more than carrying value, due to an increase since February 2020 in credit spreads on similar financing arrangements due to the COVID-19 pandemic. At December 31, 2019, the carrying value of the secured financing agreements approximated fair value as the then-current borrowing spreads reflected market terms. At June 30, 2020, the estimated fair value of the Collateralized Loan Obligation liabilities was $1.9 billion, or $46.8 million more than carrying value, due to an increase since February 2020 in credit spreads on these and similar bonds observed in secondary trading activity due to the COVID-19 pandemic. At December 31, 2019, the carrying value of the assets and liabilities of TRTX 2019-FL3 and TRTX 2018-FL2 approximated fair value as then-current lending and borrowing spreads reflected market terms. Changes in assets and liabilities with Level III fair values for the six months ended June 30, 2020 are as follows: Loans Held for Investment Collateralized Loan Obligations Secured Financing Arrangements Total Balance at December 31, 2019 $ 5,004,379 $ 1,806,428 $ 2,525,128 $ 9,335,935 Additions — — — — Change in fair value (62,928 ) 63,803 (539,821 ) (538,946 ) Transfers into Level III — — — — Transfers out of Level III — — — — Disposals — — — — Balance at June 30, 2020 $ 4,941,451 $ 1,870,231 $ 1,985,307 $ 8,796,989 There were no transfers of financial assets or liabilities within the levels of the fair value hierarchy during the six months ended June 30, 2020. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (9) Income Taxes The Company indirectly owns 100% of the equity of multiple taxable REIT subsidiaries (collectively “TRSs”), including certain of its TRTX 2018-FL2 and TRTX 2019-FL3 subsidiaries. TRSs are subject to applicable U.S. federal, state, local and foreign income tax on their taxable income. In addition, as a REIT, the Company also may be subject to a 100% excise tax on certain transactions between it and its TRSs that are not conducted on an arm’s-length basis. The Company files income tax returns in the United States federal jurisdiction as well as various state and local jurisdictions. The filings are subject to normal reviews by tax authorities until the related statute of limitations expires. The years open to examination generally range from 2016 to present. ASC 740 also prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company has analyzed its various federal and state filing positions and believes that its income tax filing positions and deductions are well documented and supported. As of June 30, 2020 and December 31, 2019, based on the Company’s evaluation, there is no reserve for any uncertain income tax positions. The Company’s policy is to classify interest and penalties associated with underpayment of U.S. federal and state income taxes, if any, as a component of general and administrative expense on its consolidated statements of income and comprehensive income. For the three and six months ended June 30, 2020, the Company did not have interest or penalties associated with the underpayment of any income taxes. For the three and six months ended June 30, 2020 and 2019, the Company incurred no federal, state or local tax relating to its TRSs. For the three months ended June 30, 2020 and 2019, the Company recognized $0.2 million and $0.2 million, respectively, of federal, state and local tax expense. For the six months ended June 30, 2020 and 2019, the Company recognized $0.2 million and $0.4 million, respectively, of federal, state and local tax expense. At June 30, 2020 and 2019, the Company’s effective tax rate was 0.2% and 0.7%, respectively. As of June 30, 2020 and December 31, 2019, no deferred income tax assets or liabilities were recorded for the operating activities of the Company’s TRSs. From March 23, 2020 to March 31, 2020, the Company sold ten separate CRE debt securities with an aggregate face value of $179.3 million, generating gross sales proceeds of $143.1 million. After retiring $141.0 million of repurchase financing and generating net cash proceeds of $2.2 million, the Company recorded aggregate losses from these sales of $36.2 million. In April 2020, the Company sold 39 separate CRE debt securities with an aggregate face value of $781.7 million, generating gross sales proceeds of $614.8 million. After retiring $581.7 million of repurchase financing and generating net cash proceeds of $33.1 million, the Company recorded aggregate losses from these sales of $167.3 million, offset by a small gain on one bond sale. These losses, which total $203.4 million, are expected to be available to offset any capital gains of the Company in 2020 and, to the extent those capital losses exceed the Company’s capital gains for 2020, such losses would be available to be carried forward to offset capital gains in future years. The Company does not expect these losses to reduce the amount that the Company will be required to distribute under the requirement that the Company distribute to the Company’s stockholders at least 90% of the Company’s REIT taxable income (computed without regard to the deduction for dividends paid and excluding net capital gain) each year in order to continue to qualify as a REIT. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (10) Related Party Transactions Management Agreement The Company is externally managed and advised by the Manager pursuant to the terms of a management agreement between the Company and the Manager (as amended, the “Management Agreement”). Pursuant to the Management Agreement, the Company pays the Manager a base management fee equal to the greater of $250,000 per annum ($62,500 per quarter) or 1.50% per annum (0.375% per quarter) of the Company’s “Equity” as defined in the Management Agreement. Proceeds from the issuance of Series B Preferred Stock is included in the Company’s Equity for purposes of determining the base management fee. The base management fee is payable in cash, quarterly in arrears. The Manager is also entitled to incentive compensation which is calculated and payable in cash with respect to each calendar quarter in arrears in an amount, not less than zero, equal to the difference between: (1) the product of (a) 20% and (b) the difference between (i) the Company’s Core Earnings for the most recent 12-month period, including the calendar quarter (or part thereof) for which the calculation of incentive compensation is being made (the “applicable period”), and (ii) the product of (A) the Company’s Equity in the most recent 12-month period, including the applicable period, and (B) 7% per annum; and (2) the sum of any incentive compensation paid to the Manager with respect to the first three calendar quarters of the most recent 12-month period. No incentive compensation is payable to the Manager with respect to any calendar quarter unless Core Earnings for the 12 most recently completed calendar quarters is greater than zero. For purposes of calculating the Manager’s incentive compensation, the Management Agreement, as amended, specifies that equity securities of the Company or any of the Company’s subsidiaries that are entitled to a specified periodic distribution or have other debt characteristics will not constitute equity securities and will not be included in “Equity” for the purpose of calculating incentive compensation. Instead, the aggregate distribution amount that accrues to such equity securities during the calendar quarter of such calculation will be subtracted from Core Earnings, before incentive compensation for purposes of calculating incentive compensation, unless such distribution is otherwise excluded from Core Earnings. “Core Earnings” means the net income (loss) attributable to the holders of the Company’s common stock and Class A common stock and, without duplication, the holders of the Company’s subsidiaries’ equity securities (other than the Company or any of the Company’s subsidiaries), computed in accordance with GAAP, including realized gains and losses not otherwise included in net income (loss), and excluding (i) non-cash equity compensation expense, (ii) the incentive compensation, (iii) depreciation and amortization, (iv) any unrealized gains or losses, including an allowance for credit losses, or other similar non-cash items that are included in net income for the applicable period, regardless of whether such items are included in other comprehensive income or loss or in net income and (v) one-time events pursuant to changes in GAAP and certain material non-cash income or expense items, in each case after discussions between the Manager and the Company’s independent directors and approved by a majority of the Company’s independent directors. For long as any shares of Series B Preferred Stock remain issued and outstanding, the Manager has agreed to reduce by 50% the base management fee attributable to the inclusion of the Series B Preferred Stock in the Company’s Equity, such that the base management fee rate applicable to the Series B Preferred Stock included in the equity base will equal 0.75% per annum, instead of 1.50% per annum as provided in the Management Agreement. Management Fees Incurred and Paid for the T hree and Six M onths ended June 30 , 2020 and 2019 For the three and six months ended June 30, 2020 and 2019, the Company incurred and paid the following management fees and incentive management fees pursuant to the Management Agreement (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Management Agreement fees incurred $ 5,115 $ 7,371 $ 10,115 $ 13,879 Management Agreement fees paid — 6,508 7,252 12,608 Management fees and incentive management fees included in payable to affiliates on the consolidated balance sheets at June 30, 2020 and December 31, 2019 are $10.1 million and $7.3 million, respectively. The Manager agreed to allow the Company to defer until July 6, 2020 payment of the base management fee due as of March 31, 2020 of $5.0 million, which was paid on July 6, 2020. No such deferral was granted for the quarter ended June 30, 2020, nor are similar deferrals expected in the future. No incentive management fee was earned during the quarter ended June 30, 2020. Termination Fee A termination fee would be due to the Manager upon termination of the Management Agreement by the Company absent a cause event. The termination fee would also be payable to the Manager upon termination of the Management Agreement by the Manager if the Company materially breaches the Management Agreement. The termination fee is equal to three times the sum of (x) the average annual base management fee and (y) the average annual incentive compensation earned by the Manager, in each case during the 24-month period immediately preceding the most recently completed calendar quarter prior to the date of termination. Other Related Party Transactions The Manager or its affiliates is responsible for the expenses related to the personnel of the Manager and its affiliates who provide services to the Company. However, the Company does reimburse the Manager for agreed-upon amounts based upon the Company’s allocable share of the compensation (including, without limitation, annual base salary, bonus, any related withholding taxes and employee benefits) paid to (1) the Manager’s personnel serving as the Company’s chief financial officer based on the percentage of his or her time spent managing the Company’s affairs and (2) other corporate finance, tax, accounting, internal audit, legal risk management, operations, compliance and other non-investment personnel of the Manager or its affiliates who spend all or a portion of their time managing the Company’s affairs, based on the percentage of time devoted by such personnel to the Company’s and the Company’s subsidiaries’ affairs. For the three and six months ended June 30, 2020, the Manager incurred $0.3 million and $0.5 million, respectively, of expenses that were subject to reimbursement by the Company for services rendered on its behalf by the Manager and its affiliates. For as long as any shares of Series B Preferred Stock remain issued and outstanding, the Manager will not seek reimbursement for reimbursable expenses in excess of the greater of (x) USD $1.0 million per fiscal year and (y) twenty percent (20%) of the Company’s allocable share of such reimbursable expenses pursuant to the Management Agreement per fiscal year. For each of the quarters ended March 31 and June 30, 2020, the Company reimbursed to the Manager $250,000 of reimbursable expenses, and the Manager elected not to seek reimbursement for reimbursable amounts in excess thereof, which at June 30, 2020 were not material. There can be no assurance that the Manager will not seek reimbursement of such expenses in future quarters. If the product of 20% multiplied by eligible reimbursable expenses is expected to exceed $1.0 million annually, the Manager is obligated to inform and review with the Company’s board of directors the methodology and rationale for such an increase in advance of the delivery to the Company of a written request for reimbursement reflecting such increase. The Company is required to pay the Manager or its affiliates for documented costs and expenses incurred with third parties by the Manager or its affiliates on behalf of the Company, subject to the Company’s review and approval of such costs and expenses. The Company’s obligation to pay for costs and expenses incurred on its behalf is not subject to a dollar limitation. As of June 30, 2020, $0.9 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 June 30, 2019, there were no amounts outstanding that were reimbursable by the Company to the Manager. All expenses due and payable to the Manager are reflected in the respective expense category of the consolidated statements of income and comprehensive income or consolidated balance sheets based on the nature of the item. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per Share | (11) Earnings per Share The Company calculates its basic and diluted earnings per share using the two-class method for all periods presented, since the unvested restricted shares of its common stock granted to certain current and former employees and affiliates of the Manager qualify as participating securities. These restricted shares have the same rights as the Company’s other shares of common stock and Class A common stock, including participating in any dividends, and therefore are included in the Company’s basic and diluted earnings per share calculation. For the three months ended June 30, 2020 and 2019, $0.1 million and $0.1 million, respectively, of common stock dividends declared and undistributed net income attributable to common stockholders were allocated to unvested shares of our common stock pursuant to stock grants made under the Company’s Incentive Plan (see Note 13 for details). For the six months ended June 30, 2020 and 2019, $0.4 million and $0.3 million, respectively, of common stock dividends declared and undistributed net income attributable to common stockholders were allocated to unvested shares of our common stock pursuant to stock grants made under the Company’s Incentive Plan. In connection with the issuance of Series B Preferred Stock and the Warrants described in Note 12, the Company elected the accreted redemption value method whereby the discount created based on the relative fair value of the Warrants to the fair value of the Series B Preferred Stock and the related issuance costs will be accreted over four years using the effective interest method. Such adjustments are included in Accretion of Discount on Series B Cumulative Redeemable Preferred Stock on our Consolidated Statements of Changes in Equity and treated similar to a dividend on preferred stock for GAAP purposes. For the three and six months ended June 30, 2020, these adjustments totaled $0.4 million. The computation of diluted earnings per share is based on the weighted average number of participating securities outstanding plus the incremental shares that would be outstanding assuming exercise of warrants issued pursuant to the Company’s issuance of Series B Preferred Stock. The number of incremental shares is calculated by applying the treasury stock method. For the six months ended June 30, 2020, the Warrants were not included in the computation of diluted earnings per share as their impact would have been anti-dilutive. 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 outstanding for the three and six months ended June 30, 2020, and the weighted-average number of shares of common stock and Class A common stock outstanding for the three and six months ended June 30, 2019 (in thousands, except share and per share data): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Net Income (Loss) Attributable to TPG RE Finance Trust, Inc. $ 40,673 $ 31,965 $ (192,120 ) $ 60,374 Participating Securities' Share in Earnings (Loss) (125 ) (138 ) (393 ) (279 ) Accretion of Discount on Series B Preferred Stock (443 ) — (443 ) — Net Income (Loss) Attributable to Common Stockholders $ 40,105 $ 31,827 $ (192,956 ) $ 60,095 Weighted Average Common Shares Outstanding, Basic and Diluted 76,644,038 73,963,337 76,554,680 71,144,696 Per Common Share Amount, Basic and Diluted $ 0.52 $ 0.43 $ (2.53 ) $ 0.85 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2020 | |
Stockholders Equity Note [Abstract] | |
Stockholders' Equity | (12) Stockholders’ Equity Series B Preferred Stock and Warrants to Purchase Shares of Common Stock On May 28, 2020, the Company entered into an Investment Agreement (the “Investment Agreement”) with PE Holder L.L.C., a Delaware limited liability company (the “Purchaser”), an affiliate of Starwood Capital Group Global II, L.P., under which the Company agreed to issue and sell to the Purchaser up to 13,000,000 shares of the Company’s 11.0% Series B Preferred Stock, par value $0.001 per share (plus any additional such shares paid as dividends pursuant to the Articles Supplementary, the “Series B Preferred Stock”), and Warrants to purchase, in the aggregate, up to 15,000,000 shares (subject to adjustment) of the Company’s Common Stock, for an aggregate cash purchase price of up to $325,000,000. Such purchases may occur in up to three tranches. The Investment Agreement contains market standard provisions regarding board representation, voting agreements, rights to information, and a standstill agreement and registration rights agreement regarding common stock acquired via exercise of Warrants. On May 28, 2020, the Purchaser acquired the first tranche of the Investment Agreement, consisting of 9,000,000 shares of Series B Preferred Stock and Warrants to purchase up to 12,000,000 shares of Common Stock, for an aggregate price of $225.0 million. The Company, at its option, may sell to the Purchaser the second and third tranches on or prior to December 31, 2020. Each of the second and third tranches consists of 2,000,000 shares of Series B Preferred Stock and Warrants to purchase up to 1,500,000 shares of Common Stock, for an aggregate purchase price of $50.0 million per tranche. Series B Preferred Stock The Company’s Series B Preferred Stock has a liquidation preference over all other classes of the Company’s equity other than Series A Preferred Stock, which has liquidation preference over the Series B Preferred Stock. Series B Preferred Stock bears a dividend at 11% per annum, accrued daily and compounded semi-annually, which is payable quarterly in cash; provided that up to 2.0% per annum of the liquidation preference may be paid, at the option of the Company, in the form of additional shares of Series B Preferred Stock. The Company, at its option, may redeem for cash, any or all outstanding shares of Series B Preferred Stock at a price (the “Optional Redemption Price”) equal to (i) at any time on or before the two-year anniversary of the Original Issuance Date (as defined in the Articles Supplementary), at a price equal to the greater of (a) 105.0% of the sum of the liquidation preference of $25.00 per share of Series B Preferred Stock (the “Preference Amount”) (including all dividends (including any Accrued Dividends)) and (b) the Preference Amount (including all dividends (including Accrued Dividends)) plus the Make-Whole Amount (equal to the dividends that would have been earned from the redemption date through and including the second anniversary date of the Original Issuance Date, and as further defined in the Articles Supplementary) per share of Series B Preferred Stock to be redeemed; (ii) at any time after the two-year anniversary of the Original Issuance Date but on or prior to the three-year anniversary of the Original Issuance Date, at a price equal to 105.0% of the Preference Amount (including all dividends (including Accrued Dividends)) as of the redemption date; (iii) at any time after the three-year anniversary of the Original Issuance Date but on or prior to the four-year anniversary of the Original Issuance Date, at a price equal to 102.5% of the Preference Amount (including all dividends (including Accrued Dividends)) as of the redemption date; or (iv) at any time after the four-year anniversary of the Original Issuance Date, at a price equal to 100.0% of the Preference Amount (including all dividends (including Accrued Dividends)) as of the redemption date, subject to certain limitations. If the Company or the Company’s Manager undergoes a Change in Control (as defined in the Articles Supplementary), holders of shares of Series B Preferred Stock may require the Company to repurchase any or all of such shares of Series B Preferred Stock for a cash purchase price equal to the then-applicable Optional Redemption Price (the “Change of Control Redemption Price”). In addition, upon any such Change of Control, the Company shall have the right, but not the obligation, to redeem any or all of the outstanding shares of Series B Preferred Stock at the Change of Control Redemption Price, subject to certain limitations. Holders of shares of Series B Preferred Stock may also require the Company to redeem all or any portion of their shares of Series B Preferred Stock, for a cash purchase price equal to 100.0% of the Preference Amount (including all dividends (including any Accrued Dividends) with respect to such shares of Series B Preferred Stock accrued but unpaid to, but not including the then-applicable redemption date), at any time: (i) after May 28, 2024; or (ii) following the occurrence of an Approval Right Default (as defined below). Each holder of Series B Preferred Stock will have one vote per share on any matter on which holders of Series B Preferred Stock are entitled to vote and will vote separately as a class (as described below), whether at a meeting or by written consent. The holders of Series B Preferred Stock will have exclusive voting rights on an amendment to the Company’s charter (the “Charter”) that would alter only the contract rights of the Series B Preferred Stock. The vote or consent of the holders of at least a majority of the shares of Series B Preferred Stock outstanding at such time, voting together as a separate class, is required in order for the Company to (i) amend or waive any provision of the Charter or the Second Amended and Restated Bylaws of the Company in a manner that would materially and adversely affect the rights, preferences, or privileges of the Series B Preferred Stock; (ii) issue any capital stock ranking senior or pari passu to the Series B Preferred Stock (or securities or rights convertible or exchangeable into, or exercisable for, any capital stock ranking senior or pari passu to the Series B Preferred Stock); (iii) issue any equity securities of any subsidiary of the Company (or any securities or rights convertible or exchangeable into, or exercisable for, such equity securities) to any third party other than the Company and or the Company’s wholly-owned subsidiary; (iv) permit any Non-Target Asset Event (as defined in the Articles Supplementary); (v) pay any dividend or distribution in cash, capital stock or other assets of the Company on or in respect of, or the repurchase or redemption of, capital stock ranking pari passu or junior to the Series B Preferred Stock, subject to certain exceptions; (vi) incur Indebtedness, subject to certain exceptions, (vii) take any Restricted Indebtedness Action (as defined in the Articles Supplementary); (viii) liquidate, dissolve, or wind up the Company; or (ix) agree to undertake any of the actions described in clauses (i) through (viii) above, in each case subject to the terms and conditions set forth in the Articles Supplementary. The taking of any of the actions described in the prior paragraph (subject to certain exceptions and the Company’s ability to cure such action, in each case as specified in the Articles Supplementary) without the vote or consent of the holders of at least a majority of the shares of Series B Preferred Stock outstanding at such time shall be deemed to be an “Approval Right Default”. On the issuance date, the Company retained third party valuation experts to assist with estimating the fair value of the Series B Preferred Stock and the Warrants using the binomial lattice model. Based on the Warrants’ relative fair value to the fair value of the Series B Preferred Stock, approximately $14.4 million of the $225.0 million proceeds was allocated to the Warrants, creating a corresponding preferred stock discount in the same amount. The Company elected the accreted redemption value method whereby this discount will be accreted over four years using the effective interest method, resulting in an increase in the carrying value of the Series B Preferred Stock. Additionally, $14.2 million of costs directly related to the issuance will be accreted using the effective interest method. Such adjustments are included in Accretion of Discount on Series B Cumulative Redeemable Preferred Stock on our Consolidated Statements of Changes in Equity and treated similar to a dividend on preferred stock for GAAP purposes. Warrants to Purchase Common Stock The Warrants have an initial exercise price of $7.50 per share. The exercise price of the Warrants and shares of Common Stock issuable upon exercise of the Warrants are subject to customary adjustments. The Warrants are exercisable on a net settlement basis and expire on May 28, 2025. The Warrants are classified as equity and were initially recorded at their estimated fair value of $14.4 million with no subsequent remeasurement. Subject to certain limitations, no shares of Common Stock will be issued or delivered upon any proposed exercise of any Warrant, and no Warrant will be exercised, in each case, to the extent that such exercise or issuance of Common Stock would result in a Registered Holder (as defined in the Warrant Agreement) beneficially owning in excess of 19.9% of the Stockholder Voting Power (as defined in the Warrant Agreement) as of May 28, 2020 (appropriately adjusted to reflect any stock splits, stock dividends or other similar events). The foregoing descriptions of the Investment Agreement, the terms of the Series B Preferred Stock and the Warrants, the Articles Supplementary, the Warrant Agreement, the Registration Rights Agreement, the Amendments and the transactions contemplated thereby are not complete and are qualified in their entirety by reference to the full text of the Investment Agreement, the Articles Supplementary, the Warrant Agreement, the Registration Rights Agreement and the Amendments, which are attached as exhibits to the Company’s Current Report on Form 8-K filed with the SEC on May 29, 2020, and incorporated herein by reference. Conversion of Class A Shares Between January 22, 2020 and January 24, 2020, the Company received requests to convert all of the outstanding shares of the Company’s Class A common stock into shares of the Company’s common stock. Accordingly, all of the outstanding shares of the Company’s Class A common stock were retired and returned to the authorized but unissued shares of Class A common stock of the Company, and the holders of shares of the Class A common stock were issued an aggregate of 1,136,665 shares of the Company’s common stock. On February 14, 2020, the Company filed Articles Supplementary with the State Department of Assessments and Taxation of Maryland to reclassify and designate all 2,500,000 authorized but unissued shares of the Company’s Class A common stock as additional shares of undesignated common stock of the Company. The Articles Supplementary became effective upon filing on February 14, 2020. As a result, as of June 30, 2020, there are no shares of the Company’s Class A common stock authorized or outstanding. Equity Distribution Agreement On March 7, 2019, the Company and the Manager entered into an equity distribution agreement with each of Citigroup Global Markets Inc., J.P. Morgan Securities LLC, JMP Securities LLC, Wells Fargo Securities, LLC and TPG Capital BD, LLC (each a “Sales Agent” and, collectively, the “Sales Agents”) relating to the issuance and sale by the Company of shares of its common stock pursuant to a continuous offering program. In accordance with the terms of the equity distribution agreement, the Company may, at its discretion and from time to time, offer and sell shares of its common stock having an aggregate gross sales price of up to $125.0 million through the Sales Agents, each acting as the Company’s agent. The offering of shares of the Company’s common stock pursuant to the equity distribution agreement will terminate upon the earlier of (1) the sale of shares of the Company’s common stock subject to the equity distribution agreement having an aggregate gross sales price of $125.0 million and (2) the termination of the equity distribution agreement by the Sales Agents or the Company at any time as set forth in the equity distribution agreement. At June 30, 2020, cumulative gross proceeds issued under the equity distribution agreement totaled $50.9 million, leaving $74.1 million available for future issuance subject to the direction of management, and market conditions. Each Sales Agent will be entitled to commissions in an amount not to exceed 1.75% of the gross sales prices of shares of the Company’s common stock sold through it, as the Company’s agent. For the three months ended June 30, 2020, the Company sold no shares of common stock under this arrangement. For the six months ended June 30, 2020, the Company sold $0.6 million shares of common stock at a weighted average price per share of $20.53 and gross proceeds of $12.9 million. For the three and six months ended June 30, 2020, the Company paid commissions totaling $0.2 million and $0.2 million, respectively. 2019 Underwritten Offering In March 2019, the Company completed a common stock offering of 6.0 million shares at a price to the underwriters of $19.80 per share, generating net proceeds of $118.8 million, after underwriting discounts. Pursuant to the terms of the underwriting agreement that the Company entered into with Morgan Stanley & Co. LLC, as representative of the underwriters, on April 12, 2019, the underwriters exercised in full their option to purchase 900,000 additional shares of common stock (the “Option Shares”). As a result, the Company issued and sold 900,000 Option Shares to the underwriters on April 16, 2019 and generated additional net proceeds, before transaction expenses, of approximately $17.4 million. The Manager reimbursed offering costs of $0.3 million. The Company used net proceeds from the offering to originate commercial real estate loans and acquire CRE debt securities. 10b5-1 Purchase Plan The Company entered into an agreement and related amendments (the “10b5-1 Purchase Plan”) with Goldman Sachs & Co. LLC, as the Company’s agent, to buy in the open market up to $35.0 million in shares of the Company’s common stock in the aggregate during the period beginning on or about August 21, 2017. On August 1, 2018, the Company’s Board of Directors authorized the Company to extend the repurchase period for the remaining capital committed to the 10b5-1 Purchase Plan to February 28, 2019. No other changes to the terms of the 10b5-1 Purchase Plan were authorized. The 10b5-1 Purchase Plan required Goldman Sachs & Co. LLC to purchase for the Company shares of the Company’s common stock when the market price per share is below the threshold price specified in the 10b5-1 Purchase Plan which is based on the Company’s book value per common share. During the three months ended March 31, 2019, the Company repurchased 2,324 shares of common stock, at a weighted average price of $18.27 per share, for total consideration (including commissions and related fees) of $0.4 million. The 10b5-1 Purchase Plan expired by its terms on February 28, 2019. Issuance of Sub-REIT Preferred Stock In January 2019, a subsidiary of the Company issued 625 shares of Series A preferred stock of which 500 shares were retained by the Company and 125 shares were sold to third party investors for proceeds of $0.1 million. The 500 preferred shares of Series A preferred stock retained by the Company are eliminated in the Company’s consolidated statements of changes in equity. Dividends Upon the approval of the Company’s Board of Directors, the Company accrues dividends. Dividends are paid first to the holders of the Company’s Series A preferred stock at the rate of 12.5% of the total $0.001 million liquidation preference per annum plus all accumulated and unpaid dividends thereon, then to holders of the Company’s Series B Preferred Stock at the rate of 11.0% per annum of the $25.00 per share liquidation preference, and then to the holders of the Company’s common stock. The Company intends to distribute each year substantially all of its taxable income to its stockholders to comply with the REIT provisions of the Internal Revenue Code of 1986, as amended. The Board of Directors will determine whether to pay future dividends, entirely in cash, or in a combination of stock and cash based on facts and circumstances at the time such decisions are made. On June 16, 2020 the Company’s Board of Directors declared and approved a cash dividend for the second quarter of 2020 in the amount of $0.20 per share of common stock, or $15.4 million in the aggregate, which was paid on July 24, 2020 to holders of record of the Company’s common stock as of June 26, 2020. On March 23, 2020, the Company announced the deferral until July 14, 2020 of the payment of its declared first quarter cash dividend to stockholders of record as of June 15, 2020. This dividend was paid on July 14, 2020. On June 16, 2020, the Company’s Board of Directors declared a cash dividend for the second quarter of 2020 in the amount of $0.25 per share of Series B Preferred Stock, or $2.25 million in the aggregate, which dividend was paid on June 30, 2020 to the holder of record of our Series B Preferred Stock as of June 15, 2020. On June 18, 2019 , the Company’s Board of Directors declared a dividend for the second quarter of 2019 in the amount of $0.43 per share of common stock and Class A common stock, or $32.0 million in the aggregate, which was paid on July 25, 2019 to holders of record of our common stock and Class A common stock as of June 28, 2019 . For the six months ended June 30, 2020 and 2019, common stock and Class A common stock dividends in the amount of $48.7 $63.6 As of June 30, 2020 and December 31, 2019, $48.7 million and $32.8 million, respectively, remain unpaid and are reflected in dividends payable on the Company’s consolidated balance sheets. |
Share-Based Incentive Plan
Share-Based Incentive Plan | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-based Incentive Plan | (13) Share-Based Incentive Plan The Company does not have any employees as it is externally managed by the Manager. However, as of June 30, 2020, certain individuals employed by an affiliate of the Manager and certain members of the Company’s Board of Directors were compensated, in part, through the issuance of share-based instruments. The Company’s Board of Directors has adopted, and the Company’s stockholders have approved, the TPG RE Finance Trust, Inc. 2017 Equity Incentive Plan (the “Incentive Plan”). The Incentive Plan provides for the grant of equity-based awards to the Company’s, and its affiliates’, directors, officers, employees (if any) and consultants, and the members, officers, directors, employees and consultants of our Manager or its affiliates, as well as to our Manager and other entities that provide services to us and our affiliates and the employees of such entities. The total number of shares of common stock or long-term incentive plan (“LTIP”) units that may be awarded under the Incentive Plan is 4,600,463. The Incentive Plan will automatically expire on the tenth anniversary of its effective date, unless terminated earlier by the Company’s Board of Directors. Generally, the shares vest in installments over a four-year Vesting Year Shares of Common Stock 2020 229,521 2021 229,522 2022 102,389 2023 62,574 624,006 As of June 30, 2020, total unrecognized compensation cost relating to unvested share-based compensation arrangements was $9.1 million. This cost is expected to be recognized over a weighted average period of |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (14) Commitments and Contingencies Impact of COVID-19 Due to the current COVID-19 pandemic in the United States and globally, the Company’s borrowers and their tenants, the properties securing the Company’s investments, and the economy as a whole have been, and will continue to be, adversely impacted. The magnitude and duration of COVID-19 and its impact on the Company’s borrowers and their tenants, cash flows and future results of operations could be significant and will largely depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of COVID-19, the success of actions taken to contain or treat the pandemic, and reactions by consumers, companies, governmental entities and capital markets. The prolonged duration and impact of COVID-19 has and could further materially disrupt the Company’s business operations and impact its financial performance. Unfunded Commitments As part of its lending activities, the Company commits to certain funding obligations which are not advanced at closing and that have not been recognized in the Company’s financial statements. These commitments to extend credit are made as part of the Company’s lending activities on loans the Company intends to hold in its portfolio of loans held for investment. The aggregate amount of these unrecognized unfunded loan commitments existing at June 30, 2020 and December 31, 2019 was $579.9 million and $630.6 million, respectively. The Company recorded an allowance for credit losses on loan commitments that are not unconditionally cancellable by the Company of $5.1 million which is included in accrued expenses and other liabilities on the Company’s consolidated balance sheets at June 30, 2020. Litigation From time to time, the Company may be involved in various claims and legal actions arising in the ordinary course of business. The Company establishes an accrued liability for loss contingencies when a settlement arising from a legal proceeding is both probable and reasonably estimable. If a legal matter is not probable and reasonably estimable, no such liability is recorded. Examples of this include (i) early stages of a legal proceeding, (ii) damages that are unspecified or cannot be determined, (iii) discovery has not started or is incomplete or (iv) there is uncertainty as to the outcome of pending appeals or motions. If these items exist, an estimated range of potential loss cannot be determined and as such the Company does not record an accrued liability. As of June 30, 2020 and December 31, 2019, the Company was not involved in any material legal proceedings and has not recorded an accrued liability for loss contingencies. |
Concentration of Credit Risk
Concentration of Credit Risk | 6 Months Ended |
Jun. 30, 2020 | |
Risks And Uncertainties [Abstract] | |
Concentration of Credit Risk | (15) Concentration of Credit Risk Property Type A summary of the loan portfolio by property type as of June 30, 2020 and December 31, 2019 based on total loan commitment and current unpaid principal balance (“UPB”) is as follows (dollars in thousands): June 30, 2020 Property Type Loan Commitment Unfunded Commitment % of Loan Commitment Loan UPB % of Loan UPB Office $ 2,807,923 $ 414,240 49.9 % $ 2,393,683 47.3 % Multifamily 1,253,132 76,395 22.2 % 1,176,737 23.3 % Hotel 737,293 29,460 13.1 % 708,384 14.0 % Mixed Use 604,993 56,016 10.7 % 548,977 10.9 % Condominium 86,938 1,525 1.5 % 85,413 1.7 % Retail 33,000 2,281 0.6 % 30,719 0.6 % Other 112,000 — 2.0 % 112,000 2.2 % Total $ 5,635,279 $ 579,917 100.0 % $ 5,055,913 100.0 % December 31, 2019 Property Type Loan Commitment Unfunded Commitment % of Loan Commitment Loan UPB % of Loan UPB Office $ 2,925,749 $ 438,800 52.0 % $ 2,486,949 49.9 % Multifamily 1,104,946 69,061 19.6 1,035,885 20.7 Hotel 752,293 40,088 13.4 712,205 14.2 Mixed-Use 604,993 78,835 10.7 526,158 10.5 Condominium 95,784 1,524 1.7 94,260 1.9 Retail 33,000 2,281 0.6 30,719 0.6 Other 112,000 — 2.0 112,000 2.2 Total $ 5,628,765 $ 630,589 100.0 % $ 4,998,176 100.0 % Loan commitments represent principal commitments made by the Company, and do not include capitalized interest of $0.6 million and $0.0 million at June 30, 2020 and December 31, 2019, respectively. Geography All of the Company’s loans held for investment are secured by properties within the United States. The geographic composition of loans held for investment based on total loan commitment and current UPB as of June 30, 2020 and December 31, 2019 is as follows (dollars in thousands): June 30, 2020 Geographic Region Loan Commitment Unfunded Commitment % of Loan Commitment Loan UPB % of Loan UPB East $ 2,450,224 $ 225,591 43.5 % $ 2,224,633 44.1 % South 1,348,021 123,230 23.9 % 1,225,342 24.2 % West 1,320,583 170,766 23.4 % 1,149,817 22.7 % Midwest 428,351 57,951 7.6 % 370,400 7.3 % Various 88,100 2,379 1.6 % 85,721 1.7 % Total $ 5,635,279 $ 579,917 100.0 % $ 5,055,913 100.0 % December 31, 2019 Geographic Region Loan Commitment Unfunded Commitment % of Loan Commitment Loan UPB % of Loan UPB East $ 2,182,659 $ 214,938 38.7 % $ 1,967,721 39.4 % South 1,342,794 124,939 23.9 1,217,855 24.4 West 1,397,431 201,690 24.8 1,195,741 23.9 Midwest 482,804 83,178 8.6 399,626 8.0 Various 223,077 5,844 4.0 217,233 4.3 Total $ 5,628,765 $ 630,589 100.0 % $ 4,998,176 100.0 % Loan commitments represent principal commitments made by the Company, and do not include capitalized interest of $0.6 million and $0.0 million at June 30, 2020 and December 31, 2019, respectively. Category A summary of the loan portfolio by category as of June 30, 2020 and December 31, 2019 based on total loan commitment and current UPB is as follows (dollars in thousands): June 30, 2020 Loan Category Loan Commitment Unfunded Commitment % of Loan Commitment Loan UPB % of Loan UPB Bridge $ 1,859,465 $ 55,614 33.0 % $ 1,804,402 35.7 % Light Transitional 1,957,935 201,804 34.8 % 1,756,131 34.7 % Moderate Transitional 1,782,879 307,499 31.6 % 1,475,380 29.2 % Construction 35,000 15,000 0.6 % 20,000 0.4 % Total $ 5,635,279 $ 579,917 100.0 % $ 5,055,913 100.0 % December 31, 2019 Loan Category Loan Commitment Unfunded Commitment % of Loan Commitment Loan UPB % of Loan UPB Bridge $ 2,001,962 $ 49,057 35.6 % $ 1,952,905 39.1 % Light Transitional 1,890,762 219,138 33.6 1,671,624 33.4 Moderate Transitional 1,701,041 347,394 30.2 1,353,647 27.1 Construction 35,000 15,000 0.6 20,000 0.4 Total $ 5,628,765 $ 630,589 100.0 % $ 4,998,176 100.0 % Loan commitments represent principal commitments made by the Company, and do not include capitalized interest of $0.6 million and $0.0 million at June 30, 2020 and December 31, 2019, respectively. Impact of COVID-19 on Concentration of Credit Risk The potential negative impacts on the Company’s business caused by COVID-19 may be heightened by the fact that the Company is not required to observe specific diversification criteria, which means that the Company’s investments may be concentrated in certain property types, geographical areas or loan categories that are more adversely affected by COVID-19 than other property types, geographical areas or loan categories. For example, certain of the loans in the Company’s loan portfolio are secured by office buildings, hotels and retail properties. Federal and state mandates implemented to control the spread of COVID-19, including restrictions on freedom of movement and business operations such as travel bans, border closings, business closures, quarantines and shelter-in-place orders, have and are likely to continue to negatively impact the hotel and retail industries, which could adversely affect the Company’s investments in assets secured by properties that operate in these industries. Also, changes in how certain types of commercial properties are used while maintaining social distancing and other techniques intended to control the impact of COVID-19 (for example, office buildings may be adversely impacted by a possible reversal in the recent trend toward increased densification of office space, or a preference by office users for suburban properties less reliant on public transportation to safely deliver their employees to and from the workplace) have and are likely to impact our investments secured by these properties. Additionally, 47.3% of the Company’s loan portfolio measured by commitment amount is secured by properties located in the southern and western regions of the United States, which have recently experienced a surge in infection rates prompting certain states and municipalities to slow or reverse reopening of the local economies. Delayed re-openings could adversely affect the Company’s loan investments secured by properties in these regions. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | (16) Subsequent Events The following events occurred subsequent to June 30, 2020: Senior Mortgage Loan Activity Subsequent to June 30, 2020, the Company did not originate any new loans and did not receive any loan repayments in full. In connection with that certain first mortgage loan in our portfolio with an original commitment amount of $90.0 million and an unpaid principal balance of $81.4 million, we entered into a non-binding letter of intent to modify this loan, and permit the purchaser of the property to assume such loan. Following the modification and assumption, the financing is expected to have an unpaid principal amount of $79.4 million, a LIBOR floor of 0.75% and an interest rate of LIBOR plus 3.0%. There can be no assurance that this transaction will close on these terms, or close at all. Expiration of Secured Credit Facility On July 12, 2020, the Company’s $160.0 million secured credit facility with Citibank., N.A. expired by its terms. There were no assets pledged or borrowings outstanding under the arrangement at expiration. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The interim consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The interim consolidated financial statements include the Company’s accounts, consolidated variable interest entities for which the Company is the primary beneficiary, and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated. These interim consolidated financial statements should be read in conjunction with the Company’s Form 10-K filed with the SEC on February 19, 2020. |
Risks and Uncertainties | Risks and Uncertainties The recent outbreak of the coronavirus pandemic (“COVID-19”) around the globe continues to adversely impact global commercial activity and has contributed to significant volatility in financial markets. The impact of the outbreak has evolved rapidly around the globe, with many countries taking drastic measures to limit the spread of the virus by instituting quarantines or lockdowns and imposing travel restrictions. Such actions have created significant disruptions to global supply chains, and adversely impacted several industries, including but not limited to, airlines, hospitality, retail and the broader real estate industry. The major disruptions caused by COVID-19 brought to a halt most economic activity in most of the United States resulting in a significant increase in unemployment claims and material fiscal stimulus expenditures by the federal government. COVID-19 will also likely result in a significant decline in the U.S. Gross Domestic Product. COVID-19 could have a continued and prolonged adverse impact on economic and market conditions and trigger a period of global economic slowdown which has and could continue to have a material adverse effect on the Company’s results and financial condition. Many jurisdictions have begun to “reopen” by reducing measures that were previously taken to limit the spread of COVID-19, but the Company cannot predict the length of time that it will take for a meaningful economic recovery to take place. The full impact of COVID-19 on the real estate industry, the credit markets and consequently on the Company’s financial condition and results of operations is uncertain and cannot be predicted currently since it depends on several factors beyond the control of the Company including, but not limited to (i) the uncertainty surrounding the severity and duration of the outbreak, including possible recurrences |
Reclassification | Reclassifications Certain amounts in the Company’s prior period consolidated financial statements have been reclassified to conform to the presentation of the Company’s current period consolidated financial statements. These reclassifications had no effect on the Company’s previously reported net income. These reclassifications include the separate presentation of stock compensation on the consolidated statements of income and comprehensive income, and the disaggregation of proceeds and payments from secured financing agreements secured by loans and secured financing agreements secured by CRE debt securities on the consolidated statements of cash flows. |
Use of Estimates | Use of Estimates The preparation of the interim consolidated financial statements in conformity with GAAP requires estimates of assets, liabilities, revenues, expenses and disclosure of contingent assets and liabilities at the date of the interim consolidated financial statements. Actual results could differ from management’s estimates, and such differences could be material. Significant estimates made in the interim consolidated financial statements include, but are not limited to: the adequacy of provisions for credit losses and the valuation inputs related thereto; and the valuation of financial instruments. Actual amounts and values as of the balance sheet dates may be materially different than the amounts and values reported due to the inherent uncertainty in the estimation process and the limited availability of observable pricing inputs due to market dislocation resulting from the COVID-19 pandemic. Also, future amounts and values could differ materially from those estimates due to changes in values and circumstances after the balance sheet date and the limited availability of observable prices. |
Principles of Consolidation | Principles of Consolidation Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810— Consolidation (“ASC 810”) 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 expected or realized credit losses, if any. The objective of the interest method is to arrive at periodic interest income including recognition of fees and costs at a constant effective yield. Premiums, discounts, and origination fees are amortized or accreted into interest income over the lives of the loans using the interest method, or on a straight-line basis when it approximates the interest method. Extension and modification fees are accreted into 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. Certain of the Company’s loan investments have in the past, and may in the future, provide for the accrual of interest (in part, or in whole) instead of its current payment in cash, with the accrued interest (“PIK interest”) added to the unpaid principal balance of the loan. Such PIK interest is recognized currently as interest income unless the Company concludes eventual collection is unlikely, in which case a collection reserve is recorded or the PIK interest is written off. |
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 cumulative charge-offs, interest applied to principal (for loans accounted for using the cost recovery method), unamortized premiums, discounts, unamortized net loan origination fees and costs. Loan origination fees and direct loan origination costs are deferred and recognized in interest income over the estimated life of the loans using the interest method, or on a straight-line basis when it approximates the interest method, adjusted for actual prepayments. When loans are designated as held for investment, the Company’s intent is to hold the loans for the foreseeable future or until maturity or repayment. If subsequent changes in real estate or capital markets occur, the Company may change its intent or its assessment of its ability to hold these loans. Once a determination has been made to sell such loans, they are immediately transferred to loans held for sale and carried at the lower of cost or fair value. |
Non-Accrual Loans | Non-Accrual Loans Loans are placed on non-accrual status when the full and timely collection of principal and interest is doubtful, generally when the loan becomes 90 days or more past due for principal and interest. The Company considers an account past due when an obligor fails to pay substantially all (defined as 90%) of the scheduled payment by the due date. In each case, the period of delinquency is based on the number of days payments are contractually past due. All interest accrued but not received for loans placed on non-accrual status is subtracted from interest income at the time the loan is placed on non-accrual. Payments received on non-accrual loans are accounted for using either the cash method, or the cost recovery method which applies any cash collected to first reduce the principal balance. A loan may be returned to accrual status if all delinquent principal and interest payments are brought current, and collectability of the remaining principal and interest payments in accordance with the loan agreement is reasonably assured. Loans that in the judgment of the Company’s external manager, TPG RE Finance Trust Management, L.P., a Delaware limited partnership (the “Manager”), are adequately secured and in the process of collection are maintained on accrual status, even if they are 90 days or more past due. |
Troubled Debt Restructurings | Troubled Debt Restructurings A loan is accounted for and reported as a troubled debt restructuring (“TDR”) when, for economic or legal reasons, the Company grants a concession to a borrower experiencing financial difficulty that we would not otherwise consider. The Company does not consider as a concession a restructuring that includes an insignificant delay in payment. A delay may be considered insignificant if the payments subject to the delay are insignificant relative to the unpaid principal balance of the loan or collateral value, and the contractual amount due, or the delay in timing of the restructured payment period, is insignificant relative to the frequency of payments, the debt’s original contractual maturity or original expected duration. TDRs that are performing and on accrual status as of the date of the modification remain on accrual status. TDRs that are nonperforming as of the date of modification usually remain on non-accrual status until the prospect of future payments in accordance with the modified loan agreement is reasonably assured, which is generally demonstrated when the borrower maintains compliance with the restructured terms for a predetermined period, normally at least six months. TDRs with temporary below-market concessions remain designated as a TDR regardless of the accrual or performance status until the loan is paid off. However, if the TDR loan has been modified in a subsequent restructure with market terms and the borrower is not currently experiencing financial difficulty, then the loan may be de-designated as a TDR. |
Allowance for Credit Losses for Loans Held for Investment | Allowance for Credit Losses for Loans Held for Investment The allowance for credit losses is measured under the Current Expected Credit Loss (“CECL”) accounting framework, represents an estimate of current expected losses for the Company’s existing portfolio of loans held for investment, and is presented as a valuation reserve on the Company’s consolidated balance sheets. Expected credit losses inherent in non-cancelable unfunded loan commitments are accounted for as separate liabilities included in accrued expenses and other liabilities on the consolidated balance sheets. The allowance for credit losses for loans held for investment, as reported in the Company’s consolidated balance sheets, is adjusted by a credit loss expense, which is reported in earnings in the consolidated statements of income and comprehensive income and reduced by the charge-off of loan amounts, net of recoveries and additions related to purchased credit-deteriorated (“PCD”) assets, if relevant. The allowance for credit losses includes a modeled component and an individually-assessed component. The Company has elected to not measure an allowance for credit losses on accrued interest receivables related to all of its loans held for investment because it writes off uncollectable accrued interest receivable in a timely manner pursuant to its non-accrual policy, described above. The Company considers key credit quality indicators in underwriting loans and estimating credit losses, including but not limited to: the capitalization of borrowers and sponsors; the expertise of the borrowers and sponsors in a particular real estate sector and geographic market; collateral type; geographic region; use and occupancy of the property; property market value; loan-to-value (“LTV”) ratio; loan amount and lien position; debt service and coverage ratio; the Company’s risk rating for the same and similar loans; and prior experience with the borrower and sponsor. This information is used to assess the financial and operating capability, experience and profitability of the sponsor/borrower. Ultimate repayment of the Company’s loans is sensitive to interest rate changes, general economic conditions, liquidity, LTV ratio, and availability of replacement short-term or long-term financing. The loans in the Company’s commercial mortgage loan portfolio are secured by collateral in the following property types: office ; multifamily ; hotel ; mixed-use ; condominium ; retail ; and land . Quarterly, the Company evaluates the risk of all loans and assigns a risk rating based on a variety of factors, grouped as follows: (i) loan and credit structure, including the as-is LTV and structural features; (ii) quality and stability of real estate value and operating cash flow, including debt yield, property type, dynamics of the geography, property type and local market, physical condition, stability of cash flow, leasing velocity and quality and diversity of tenancy; (iii) performance against underwritten business plan; and (iv) quality, experience and financial condition of sponsor, borrower and guarantor(s). Based on a 5-point scale, the Company’s loans are rated “1” through “5,” from least risk to greatest risk, respectively, which ratings are defined as follows: 1- Outperform—Exceeds performance metrics (for example, technical milestones, occupancy, rents, net operating income) included in original or current credit underwriting and business plan; 2- Meets or Exceeds Expectations—Collateral performance meets or exceeds substantially all performance metrics included in original or current underwriting / business plan; 3- Satisfactory—Collateral performance meets or is on track to meet underwriting; business plan is met or can reasonably be achieved; 4- Underperformance—Collateral performance falls short of original underwriting, material differences exist from business plan, or both; technical milestones have been missed; defaults may exist, or may soon occur absent material improvement; and 5- Default/Possibility of Loss—Collateral performance is significantly worse than underwriting; major variance from business plan; loan covenants or technical milestones have been breached; timely exit from loan via sale or refinancing is questionable; significant risk of principal loss. The Company generally assigns a risk rating of “3” to all newly originated loan investments during the most recent quarter, except in the case of specific circumstances warranting an exception. The Company’s loans are typically collateralized by real estate, or in the case of mezzanine loans, by a partnership interest or similar equity interest in an entity that owns real estate. As a result, the Company regularly evaluates on a loan-by-loan basis the extent and impact of any credit deterioration associated with the performance and/or value of the underlying collateral property, and the financial and operating capability of the borrower and its sponsor. The Company also evaluates the financial strength of loan guarantors, if any, and the borrower’s competency in managing and operating the property or properties. In addition, the Company considers the overall economic environment, real estate sector, and geographic sub-market in which the borrower operates. Such analyses are completed and reviewed by asset management personnel and evaluated by senior management, who utilize various data sources, including, to the extent available (i) periodic financial data such as property occupancy, tenant profile, rental rates, operating expenses, the borrower’s exit plan, and capitalization and discount rates, (ii) site inspections, (iii) sales and financing comparables, (iv) current credit spreads for refinancing and (v) other market data. Due to the COVID-19 pandemic and the dislocation it has caused to the national economy, the commercial real estate markets, and the capital markets, the Company’s ability to estimate key inputs for estimating the allowance for credit losses has been materially and adversely impacted. Key inputs to the estimate include, but are not limited to, LTV, debt service coverage ratio, future operating cash flow and performance of collateral properties, the financial strength and liquidity of borrowers and sponsors, capitalization rates and discount rates used to value commercial real estate properties, and observable transactions involving the sale or financing of commercial properties. Estimates made by management are necessarily subject to change due to the lack of observable inputs and uncertainty regarding the duration of the COVID-19 pandemic and its aftereffects. The Company’s CECL reserve reflects its estimation of the current and future economic conditions that impact the performance of the commercial real estate assets securing the Company’s loans. These estimations include unemployment rates, interest rates, price indices for commercial property, and other macroeconomic factors impacting the likelihood and magnitude of potential credit losses for the Company’s loans during their anticipated term. The Company license s certain macroeconomic financial forecasts to inform its view of the potential future impact that broader economic conditions may have on its loan portfolio’s performance. The forecasts are embedded in the licensed model that the Company use s to estimate its CECL reserve. Selection of these economic forecasts requires significant judgment about future events that, while based on the information available to the Company as of the balance sheet date, are ultimately unknowable with certainty, and the actual economic condition s impacting the Company’s portfolio could vary significantly from the estimates the Company made for the periods presented . |
Credit Loss Measurement | Credit Loss Measurement The amount of allowance for credit losses is influenced by the size of the Company’s loan portfolio, loan asset quality, risk rating, delinquency status, historic loss experience and other conditions influencing loss expectations, such as reasonable and supportable forecasts of economic conditions. The Company employs two methods to estimate credit losses in its loan portfolio: a model-based approach utilized for substantially all of its loans; and an individually-assessed approach for loans that the Company concludes are ill-suited for use in the model-based approach, or are individually-assessed based on accounting guidance contained in the CECL framework. Once the expected credit loss amount is determined, an allowance for credit losses equal to the calculated expected credit loss is established. If the calculated expected credit loss is determined to be permanent or not recoverable, the amount of expected credit loss will be charged-off through the allowance for credit losses. Factors considered by management in determining if the expected credit loss is permanent or not recoverable include whether management judges the loan to be uncollectible; that is, repayment is deemed to be delayed beyond reasonable time frames, or the loss becomes evident due to the borrower’s lack of assets and liquidity, or the borrower’s sponsor is unwilling or unable to support the loan. Allowance for Credit Losses for Loans Held for Investment – Model-Based Approach The model-based approach to measure the allowance for credit losses relates to loans which are not individually-assessed. The Company licenses from Trepp, LLC historical loss information, incorporating loan performance data for over 100,000 commercial real estate loans dating back to 1998, in an analytical model to compute statistical credit loss factors (i.e., probability-of-default and loss-given-default). These statistical credit loss factors are utilized together with individual loan information to generate future expected cash flows which are used to estimate the allowance for credit losses. This methodology appropriately considers the unique characteristics of the Company’s commercial mortgage loan portfolio and individual assets within the portfolio by considering individual loan risk ratings, delinquency statuses and other credit trends and risk characteristics. Further, the Company incorporates its expectations about the impact of current conditions and reasonable and supportable forecasts on expected future credit losses in deriving its estimate. For the period beyond which the Company is able to make reasonable and supportable forecasts, the Company will revert to unadjusted historical loan loss information based on systematic methodology determined at the input level. Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. In future periods, evaluations of the overall loan portfolio, in light of the factors and forecasts then prevailing, may result in significant changes in the allowance and credit loss expense. Allowance for Credit Losses for Loans Held for Investment – Individually-Assessed Approach In instances where the unique attributes of a loan investment render it ill-suited for the model-based approach because it no longer shares risk characteristics with other loans, or because the Company concludes repayment of the loan is entirely collateral-dependent, the Company separately evaluates the amount of expected credit loss using widely accepted real estate valuation techniques, considering substantially the same credit factors as utilized in the model-dependent method. In these cases, expected credit loss is measured as the difference between the amortized cost basis of the loan and the fair value of the collateral as determined by management using valuation techniques, frequently discounted cash flow. The fair value of the collateral is adjusted for the estimated cost to sell if repayment or satisfaction of a loan is dependent on the sale (rather than the operation) of the collateral. |
Unfunded Loan Commitments | Unfunded Loan Commitments The Company’s first mortgage loans often contain provisions for future funding conditioned upon the borrower’s execution of its business plan with respect to the underlying collateral property securing the loan. These deferred fundings are typically for base building work, tenant improvement costs and leasing commissions, and occasionally to fund forecasted operating deficits during lease-up, or for interest reserves. These deferred funding commitments may be for specific periods, often require satisfaction by the borrower of conditions precedent, and may contain termination clauses at the option of the borrower or, more rarely, at the Company’s option. The total amount of un funded commitments do es not necessarily represent actual amounts that may be funded in cash in the future, since commitments may expire without being drawn , may be cancelled if certain conditions are not satisfied by the borrower, or borrowers may elect not to borrow some or all of the unused commitment . The Company does not recognize these unfunded loan commitments in its consolidated financial statements. The Company applies its expected credit loss estimates to all future funding commitments that cannot be contractually terminated at the Company’s option. The Company maintains a separate allowance for credit losses from unfunded loan commitments, which is included in accrued expenses and other liabilities on the consolidated balance sheets. The Company estimates the amount of expected losses by calculating a commitment usage factor over the contractual period for exposures that are not unconditionally cancellable by the Company and applies the loss factors used in the allowance for credit loss methodology described above to the results of the usage calculation to estimate the liability for credit losses related to unfunded commitments for each loan. No credit loss estimate is reported for unfunded loan commitments that are unconditionally cancellable by the Company. |
CRE Debt Securities | CRE Debt Securities In the past, the Company acquired CRE debt securities for investment purposes. The Company designates CRE debt securities as available-for-sale (“AFS”) on the acquisition date. CRE debt securities that are classified as AFS are recorded at fair value through other comprehensive income or loss in the Company’s consolidated financial statements. The Company recognizes interest income on its CRE debt securities using the interest method, or on a straight-line basis when it approximates the effective interest method, with any premium or discount amortized or accreted into interest income based on the respective outstanding principal balance and corresponding contractual term of the CRE debt security. Accrued but not yet collected interest is separately reported as accrued interest receivable on the Company’s consolidated balance sheets. The Company uses a specific identification method when determining the cost of a CRE debt security sold and the amount of unrealized gain or loss reclassified from accumulated other comprehensive income or loss into earnings on the trade date. AFS debt securities in unrealized loss positions are evaluated for impairment related to credit losses at least quarterly. For the purpose of identifying and measuring impairment, any applicable accrued interest is excluded from both the fair value and the amortized cost basis. The Company has elected to write off accrued interest by reversing interest income in the event the accrued interest is deemed uncollectible, generally when the security becomes 90 days or more past due for principal and interest. The Company first assesses whether it intends to sell the debt security or more likely than not will be required to sell the debt security before recovery of its amortized cost basis. If either criterion regarding intent or requirement to sell is met, the debt security’s amortized cost basis is written down to its fair value and the write down is charged against the allowance for credit losses, with any incremental impairment reported in earnings as a loss in the consolidated statements of income and comprehensive income. Any AFS debt security in an unrealized loss position which the Company does not intend to sell or is not more likely than not required to sell before recovery of the amortized cost basis is assessed for expected credit losses. The performance indicators considered for CRE debt securities relate to the underlying assets and include default rates, delinquency rates, percentage of nonperforming assets, debt-to-collateral ratios, third-party guarantees, current levels of subordination, vintage, geographic concentration, analyst reports and forecasts, credit ratings and other market data. In assessing whether a credit loss exists, the Company compares the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a credit loss exists and an allowance for credit losses is recorded, limited by the amount the fair value is less than amortized cost basis. Declines in fair value of AFS debt securities in an unrealized loss position that are not due to credit losses, such as declines due to changes in market interest rates, are recorded through other comprehensive income. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Unrealized gains and losses on AFS debt securities presented in the consolidated statement of income and comprehensive income includes the reversal of unrealized gains and losses at the time gains or losses are realized. |
Portfolio Financing Arrangements | Portfolio Financing Arrangements The Company finances certain of its loans, or participation interests therein, using secured revolving repurchase agreements, senior secured and secured credit agreements, asset-specific financing arrangements, and collateralized loan obligations. The related borrowings are recorded as separate liabilities on the Company’s consolidated balance sheets. Interest income earned on the investments and interest expense incurred on the related borrowings are reported separately on the Company’s consolidated statements of income and comprehensive income. In certain instances, the Company creates structural leverage through the co-origination or non-recourse syndication of a senior loan interest to a third party. For all such syndications the Company has completed through June 30 , 2020, the Company transferred on a non-recourse basis 100 % of the senior mortgage loan that the Company originated or co-originated to a third-party lender and retained as a loan investment a separate mezzanine loan investment secured by a pledge of the equity in the mortgage borrower. With respect to the senior mortgage loan so transferred, the Company retains: no control over the mortgage loan; no economic interest in the mortgage loan; and no recourse to the purchaser or the borrower. Consequently, based on these circumstances and because the Company does not have any continuing involvement with the transferred senior mortgage loan, these syndications are accounted for as sales under GAAP and are removed from the Company’s consolidated financial statements at the time of transfer. The Company’s consolidated balance sheets only include the separate mezzanine loan remaining after the transfer. The Company financed its CRE debt securities using secured revolving repurchase agreements with daily mark-to-market features and contract maturities of typically 30 days. The related borrowings are recorded as liabilities on the Company’s consolidated balance sheets. Interest income earned on the CRE debt securities and interest expense incurred on the related borrowings are reported in interest income and interest expense, respectively, on the Company’s consolidated statements of income and comprehensive income. For more information regarding the Company’s portfolio financing arrangements, see Note 6. |
Fair Value Measurements | 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. The following methods and assumptions are used by our Manager to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: • Cash and cash equivalents: the carrying amount of cash and cash equivalents approximates fair value. • Loans held for investment, net: using a discounted cash flow methodology employing a discount rate for loans of comparable credit quality, structure, and LTV based upon appraisal information and current estimates of the value of collateral property performed by the Manager, and credit spreads for loans of comparable risk (as determined by the Manager based on the factors previously described) as corroborated by inquiry of other market participants. • CRE Debt Securities, available for sale: using indications of value from at least two dealers active in trading similar or substantially similar securities; these dealers may use reported trades or valuation estimates from their internal pricing models to determine the reported price. • Secured repurchase agreements, senior secured and secured credit facilities, net: based on the rate at which a similar credit facility would currently be priced, as corroborated by inquiry of other market participants. • CRE Collateralized Loan Obligations, net: utilizing indications of value from dealers active in trading similar or substantially similar securities, observable quotes from market data services, reported prices and spreads for recent new issues, and Manager estimates of the credit spread on which similar bonds would be issued, or traded, in the new issue and secondary markets. • Other assets and liabilities subject to fair value measurement, including receivables, payables and accrued liabilities have carrying values that approximate fair value due to their short term nature. As discussed above, market-based or observable inputs are generally the preferred source of values for purposes of measuring the fair value of the Company’s assets under GAAP. The commercial property investment sales market, and the commercial mortgage loan and CRE debt securities markets, have and continue to experience extreme volatility, sharply reduced transaction volume, reduced liquidity, and disruption as a result of COVID-19, which has made it more difficult to rely on market-based inputs in connection with the valuation of the Company’s assets under GAAP. Key valuation inputs include, but are not limited to, future operating cash flow and performance of collateral properties, the financial strength and liquidity of borrowers and sponsors, capitalization rates and discount rates used to value commercial real estate properties, and observable transactions involving the sale or financing of commercial properties. In the absence of market inputs, GAAP permits the use of management assumptions to measure fair value. However, the considerable market volatility and disruption caused by COVID-19 and the considerable uncertainty regarding the ultimate impact and duration of the pandemic have made it more difficult for the Company’s management to formulate assumptions to measure the fair value of the Company’s assets. |
Income Taxes | Income Taxes The Company qualifies and has elected to be taxed as a REIT for U.S. federal income tax purposes under the Internal Revenue Code of 1986, as amended, commencing with its initial taxable year ended December 31, 2014. To the extent that it annually distributes at least 90% of its REIT taxable income to stockholders and complies with various other requirements as a REIT, the Company generally will not be subject to U.S. federal income taxes on its distributed REIT taxable income. In 2017, the Internal Revenue Service issued a revenue procedure permitting “publicly offered” REITs to make elective stock dividends (i.e. dividends paid in a mixture of stock and cash), with at least 20% of the total distribution being paid in cash, to satisfy their REIT distribution requirements. On May 4, 2020, the Internal Revenue Service issued a revenue procedure that temporarily reduces (through the end of 2020) the minimum amount of the total distribution that must be paid in cash to 10%. Pursuant to these revenue procedures, the Company may elect to make future distributions of its taxable income in a mixture of stock and cash. If the Company fails to continue to qualify as a REIT in any taxable year and does not qualify for certain statutory relief provisions, the Company will be subject to U.S. federal and state income taxes at regular corporate rates beginning with the year in which it fails to qualify and may be precluded from being able to elect to be treated as a REIT for the Company’s four subsequent taxable years. Even though the Company currently qualifies for taxation as a REIT, the Company may be subject to certain U.S. federal, state, local and foreign taxes on the Company’s income and property and to U.S. federal income and excise taxes on the Company’s undistributed REIT taxable income. Deferred tax assets and liabilities are recognized for future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the periods in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period in which the enactment date occurs. Under ASC Topic 740, Income Taxes (“ASC 740”), a valuation allowance is established when management believes it is more likely than not that a deferred tax asset will not be realized. The Company intends to continue to operate in a manner consistent with, and to continue to meet the requirements to be treated as, a REIT for tax purposes and to distribute all of its REIT taxable income. Accordingly, the Company does not expect to pay corporate level federal taxes. |
Earnings per Common Share | 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, when it was outstanding, 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 we re identical to the common stock, except (1) the Class A common stock was 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 could not be listed on a national securities exchange or a national market system and (2) each share of Class A common stock wa s convertible at any time or from time to time, at the option of the holder, for one fully paid and non-assessable share of common stock. Between January 22, 2020 and January 24, 2020, the Company received requests to convert all outstanding shares of its Class A common stock into shares of the Company’s common stock. Accordingly, all of the outstanding shares of the Company’s Class A common stock were retired and returned to the authorized but unissued shares of Class A common stock of the Company, and the holders of the shares of Class A common stock were issued an aggregate of 1,136,665 shares of the Company’s common stock. On February 14, 2020, the Company filed the Articles Supplementary with the State Department of Assessments and Taxation of Maryland to reclassify and designate all 2,500,000 authorized but unissued shares of the Company’s Class A common stock as additional shares of undesignated common stock of the Company. The Articles Supplementary became effective upon filing on February 14, 2020. As a result, as of March 31 and June 30, 2020, there were no shares of the Company’s Class A common stock authorized or outstanding. Diluted earnings per common share is calculated by including the effect of dilutive securities, including the warrants (the “Warrants”, see Note 12) issued in connection with the Company’s Series B Cumulative Redeemable Preferred Stock (“Series B Preferred”). 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. The computation of diluted earnings per share is based on the weighted average number of participating securities outstanding plus the incremental shares that would be outstanding assuming exercise of warrants, which are exercisable only on a net-settlement basis. The number of incremental shares is calculated by applying the treasury stock method. We exclude participating securities and warrants from the calculation of basic earnings (loss) per share in periods of net losses since their effect would be anti-dilutive. |
Share-Based Compensation | Share-Based Compensation Share-based compensation consists of awards issued by the Company to certain employees of affiliates of the Manager and certain members of our Board of Directors. These share-based awards generally vest in installments over a fixed period. Deferred stock units granted to the Company’s Board of Directors fully vest on the grant date and accrue dividends that are paid-in kind through additional deferred stock units on a quarterly basis. Compensation expense is recognized in net income on a straight-line basis over the applicable award’s vesting period. Forfeitures of share-based awards are recognized as they occur. |
Deferred Financing Costs | Deferred Financing Costs Deferred financing costs are reflected net of the collateralized loan obligations and secured financing arrangements on the Company’s consolidated balance sheets. These costs are amortized in interest expense using the interest method, or on a straight-line basis when it approximates the interest method, as follows: (a) for secured financing arrangements other than our CRE CLOs, the initial term of the financing arrangement; (b) for deferred financing costs related to asset specific borrowings under secured financing arrangements other than CRE CLOs, the initial maturities of the underlying loan(s) pledged to support the specific borrowing; and (c) for CRE CLOs issued by Company subsidiaries, over the estimated life of the liabilities issued based on the expected repayment timing of the underlying loans in each CRE CLO, taking into account the two-year reinvestment periods (measured from the issuance date) of each CRE CLO. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash held in banks or invested in money market funds with original maturities of less than 90 days. The Company deposits its cash and cash equivalents with high credit quality institutions to minimize credit risk exposure. The Company maintains cash accounts at several financial institutions, which are insured up to a maximum of $250,000 per account as of June 30, 2020 and December 31, 2019. The balances in these accounts may exceed the insured limits. Pursuant to financial covenants applicable to Holdco, which is the guarantor of the Company’s recourse indebtedness, the Company is required to maintain minimum cash equal to the greater of (i) $10 million or (ii) the product of 5% and the aggregate recourse indebtedness of the Company. To comply with this covenant, the Company held as part of its total cash balances $23.2 million and $56.9 million, respectively, at June 30, 2020 and December 31, 2019. |
Restricted Cash | Restricted Cash Restricted cash primarily represents deposit proceeds from potential borrowers which may be returned to borrowers, after deducting transaction costs paid by the Company for the benefit of the borrowers, upon the closing of a loan transaction. |
Accounts Receivable from Servicer/Trustee | Accounts Receivable from Servicer/Trustee Accounts receivable from Servicer/Trustee represents cash proceeds from loan and CRE debt securities activities that have not been remitted to the Company based on established servicing and borrowing procedures. Such amounts are generally held by the Servicer/Trustee for less than 30 days before being remitted to the Company. Also included is cash held by the Company’s CRE CLOs pending reinvestment in eligible collateral. |
Temporary Equity | Temporary Equity Equity instruments that are redeemable for cash or other assets are classified as temporary equity if the instrument is redeemable, at the option of the holder, at a fixed or determinable price on a fixed or determinable date or upon the occurrence of an event that is not solely within the control of the issuer. Redeemable equity instruments are initially carried at the fair value of the equity instrument at the issuance date, which is subsequently adjusted at each balance sheet date if the instrument is currently redeemable or probable of becoming redeemable. The Company elected the accreted redemption value method in which it accretes changes in the redemption value over the period from the date of issuance of the Series B Preferred Stock to the earliest costless redemption date (the fourth anniversary) using the effective interest method, as defined in Note 12. Such adjustments are included in Accretion of Discount on Series B Cumulative Redeemable Preferred Stock on our Consolidated Statements of Changes in Equity and treated similar to a dividend on preferred stock for GAAP purposes. |
Going Concern | Going Concern The accompanying consolidated financial statements are prepared in accordance with generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As of June 30, 2020, management concluded that the indicators of substantial doubt about the Company’s ability to continue as a going concern that existed at March 31, 2020 no longer exist. During the three months ended June 30, 2020, the Company undertook several steps to improve its ability to meet its obligations as they become due, and to sustain operations through at least one year following the date the consolidated financial statements are issued, thus alleviating prior substantial doubt about the Company’s ability to continue as a going concern. The Company took the following actions to strengthen its liquidity, capital position and maturity profile of its liabilities: • Between April 1, 2020 and April 29, 2020, sold 39 separate CRE debt securities investments with an aggregate face value of $782.0 million, repaid related secured indebtedness of $581.7 million, and generated net cash proceeds of $33.1 million. • On May 4, 2020, exercised an existing option to extend the maturity date by one year to May 4, 2021 of its secured revolving repurchase agreement with Morgan Stanley Bank, N.A. • On May 28, 2020, issued $225.0 million of Series B Preferred Stock with the option to issue an additional $100.0 million in two tranches of $50.0 million prior to December 31, 2020. • On May 29, 2020, made voluntary deleveraging payments totaling $157.7 million to seven lenders in connection with its secured revolving repurchase agreements and senior secured credit facilities in exchange for agreements to toll any margin calls for defined periods, subject to certain conditions. • On June 26, 2020, exercised an existing option to extend the maturity date to September 29, 2021 of its senior secured credit agreement with Bank of America, N.A. • On June 30, 2020, exercised an existing option to extend the maturity date to August 19, 2021 of its secured revolving repurchase agreement with Goldman Sachs Bank USA. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Guidance In March 2020, the FASB issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("ASU 2020-04") expedients and exceptions to GAAP requirements for modifications to debt agreements, leases, derivatives and other contracts, related to the expected market transition from LIBOR, and certain other floating rate benchmark indices, or collectively, IBORs, to alternative reference rates. ASU 2020-04 generally considers contract modifications related to reference rate reform to be an event that does not require contract remeasurement at the modification date nor a reassessment of a previous accounting determination. The amendments in this Update are effective for all entities as of March 12, 2020 through December 31, 2022. Once ASU 2020-04 is elected, the guidance must be applied prospectively for all eligible contract modifications. The Company is currently evaluating the impact of ASU 2020-04 on its consolidated financial statements. Recently Adopted Accounting Guidance On January 1, 2020, the Company adopted Accounting Standards Update (“ASU”) 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments • ASU 2018-19, Codification Improvements to Topic 326 – Credit Losses • ASU 2019-04, Codification Improvements to Topic 326 – Credit Losses, Topic 815 – Derivatives and Hedging, and Topic 825 – Financial Instruments • ASU 2019-05, Financial Instruments – Credit Losses (Topic 326): Targeted Transition Relief • ASU 2019-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates • ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments – Credit Losses The Company adopted ASU 2016-13 and other related ASUs listed above using the modified retrospective method for all mortgage loans measured at amortized cost and unfunded noncancelable loan commitments. Results for reporting periods beginning after January 1, 2020 are presented under ASU 2016-13 and other related ASUs while prior period amounts continue to be reported in accordance with previously applicable GAAP. The following table presents the January 1, 2020 cumulative impact of the adoption of ASU 2016-13 on the indicated line items of the Company’s consolidated balance sheet as of January 1, 2020: Pre-Adoption Cumulative Effect of Adopting ASU 2016-13 Post-Adoption Assets: Loans Held for Investment $ 4,980,389 $ — $ 4,980,389 Allowance for Credit Losses — (17,783 ) (17,783 ) Loan Held for Investment, net $ 4,980,389 $ (17,783 ) $ 4,962,606 Liabilities: Accrued Expenses and Other Liabilities $ 8,176 $ 1,862 $ 10,038 Equity: Accumulated Deficit $ (28,108 ) $ (19,645 ) $ (47,753 ) The adoption of ASU 2016-13 did not have a material impact on the Company’s portfolio of AFS Debt Securities at January 1, 2020. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
ASU 2016-13 | |
Schedule of Cumulative Impact of Adoption of ASU 2016-13 on Indicated Line Items of Consolidated Balance Sheet | The following table presents the January 1, 2020 cumulative impact of the adoption of ASU 2016-13 on the indicated line items of the Company’s consolidated balance sheet as of January 1, 2020: Pre-Adoption Cumulative Effect of Adopting ASU 2016-13 Post-Adoption Assets: Loans Held for Investment $ 4,980,389 $ — $ 4,980,389 Allowance for Credit Losses — (17,783 ) (17,783 ) Loan Held for Investment, net $ 4,980,389 $ (17,783 ) $ 4,962,606 Liabilities: Accrued Expenses and Other Liabilities $ 8,176 $ 1,862 $ 10,038 Equity: Accumulated Deficit $ (28,108 ) $ (19,645 ) $ (47,753 ) |
Loans Held for Investment and_2
Loans Held for Investment and the Allowance for Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Schedule of Overall Statistics for Loan Portfolio | The following table details overall statistics for the Company’s loan portfolio as of June 30, 2020 (dollars in thousands): Balance Sheet Portfolio Total Loan Portfolio Number of loans 65 66 Floating rate loans (by unpaid principal balance) 100.0 % 100.0 % Total loan commitments (1) $ 5,635,279 $ 5,767,279 Unpaid principal balance $ 5,055,913 $ 5,055,913 Unfunded loan commitments (2) $ 579,917 $ 579,917 Amortized cost $ 5,042,125 $ 5,042,125 Weighted average credit spread (3) 3.4 % 3.4 % Weighted average all-in yield (3) 5.4 % 5.4 % Weighted average term to extended maturity (in years) (4) 3.5 3.5 Weighted average LTV (5) 65.8 % 65.8 % (1) In certain instances, we create structural leverage through the co-origination or non-recourse syndication of a senior loan interest to a third-party. In either case, the senior mortgage loan (i.e., the non-consolidated senior interest) is not included on our balance sheet. When we create structural leverage through the co-origination or non-recourse syndication of a senior loan interest to a third-party, we retain on our balance sheet a mezzanine loan. Total loan commitment encompasses the entire loan portfolio we originated, acquired and financed. At June 30, 2020, we had one non-consolidated senior interest outstanding of $132.0 million. (2) Unfunded loan commitments may be funded over the term of each loan, subject in certain cases to an expiration date or a force-funding date, primarily to finance property improvements or lease-related expenditures by our borrowers, to finance operating deficits during renovation and lease-up, and in limited instances to finance construction. (3) As of June 30, 2020, all of the Company’s loans were floating rate and were indexed to LIBOR. In addition to credit spread, all-in yield includes the amortization of deferred origination fees, purchase price premium and discount if any, loan origination costs and accrual of both extension and exit fees. Credit spread and all-in yield for the total portfolio assumes the applicable floating benchmark rate as of June 30, 2020 for weighted average calculations. (4) Extended maturity assumes all extension options are exercised by the borrower; provided, however, that our loans may be repaid prior to such date. As of June 30, 2020, based on the unpaid principal balance of our total loan exposure, 57.8% of our loans were subject to yield maintenance or other prepayment restrictions and 42.2% were open to repayment by the borrower without penalty. (5) Except for construction loans, LTV is calculated for loan originations and existing loans as the total outstanding principal balance of the loan or participation interest in a loan (plus any financing that is pari passu with or senior to such loan or participation interest) as of June 30, 2020, divided by the as-is appraised value of our collateral at the time of origination or acquisition of such loan or participation interest. For construction loans only, LTV is calculated as the total commitment amount of the loan divided by the as-stabilized value of the real estate securing the loan. The as-is or as-stabilized (as applicable) value reflects our Manager’s estimates, at the time of origination or acquisition of the loan or participation interest in a loan, of the real estate value underlying such loan or participation interest determined in accordance with our Manager’s underwriting standards and consistent with third-party appraisals obtained by our Manager. |
Schedule of Mortgage Loan Investment Portfolio by Loan Seniority | The following tables present an overview of the mortgage loan investment portfolio by loan seniority as of June 30, 2020 and December 31, 2019 (dollars in thousands): June 30, 2020 Loans Held for Investment, Net Outstanding Principal Unamortized Premium (Discount), Loan Origination Fees, net Amortized Cost Senior loans $ 5,035,913 $ (13,563 ) $ 5,022,350 Subordinated and mezzanine loans 20,000 (225 ) 19,775 Total $ 5,055,913 $ (13,788 ) $ 5,042,125 Allowance for credit losses (53,557 ) Loans Held for Investment, Net $ 4,988,568 December 31, 2019 Loans Held for Investment, Net Outstanding Principal Unamortized Premium (Discount), Loan Origination Fees, net Amortized Cost Senior loans $ 4,978,176 $ (17,500 ) $ 4,960,676 Subordinated and mezzanine loans 20,000 (287 ) 19,713 Total $ 4,998,176 $ (17,787 ) $ 4,980,389 Allowance for credit losses — Loans Held for Investment, Net $ 4,980,389 |
Summary of Loan Portfolio Activity | For the six months ended June 30, 2020, loan portfolio activity was as follows (dollars in thousands): Carrying Value Balance at December 31, 2019 $ 4,980,389 Additions during the period: Loans originated and acquired 351,650 Additional fundings 124,242 Amortization of origination fees 5,882 Deductions during the period: Collection of principal (1) (420,038 ) Change in allowance for credit losses (53,557 ) Balance at June 30, 2020 $ 4,988,568 |
Summary of Amortized Cost by Origination Year Grouped by Risk Rating | The following table presents amortized cost basis by origination year, grouped by risk rating, as of June 30, 2020 (dollars in thousands): June 30, 2020 Amortized Cost by Origination Year 2020 2019 2018 2017 2016 Total Senior loans by internal risk ratings: 1 $ — $ — $ — $ — $ — $ — 2 192,972 — 340,867 87,320 — 621,159 3 163,209 1,801,836 1,134,749 278,944 — 3,378,738 4 — 449,072 158,661 301,199 28,057 936,989 5 — 85,464 — — — 85,464 Total mortgage loans 356,181 2,336,372 1,634,277 667,463 28,057 5,022,350 Subordinated and mezzanine loans by internal risk ratings: 1 $ — $ — $ — $ — $ — $ — 2 — — — — — — 3 — 19,775 — — — 19,775 4 — — — — — — 5 — — — — — — Total subordinated and mezzanine loans — 19,775 — — — 19,775 Total $ 356,181 $ 2,356,147 $ 1,634,277 $ 667,463 $ 28,057 $ 5,042,125 |
Summary of Amortized Cost and Results of Internal Risk Rating Review Performed | The table below summarizes the amortized cost, and results of the Company’s internal risk rating review performed as of June 30, 2020 and December 31, 2019 (dollars in thousands): Rating June 30, 2020 December 31, 2019 1 $ — $ — 2 621,159 903,393 3 3,398,513 3,868,696 4 936,989 208,300 5 85,464 — Total $ 5,042,125 $ 4,980,389 Allowance for Credit Losses (53,557 ) — Carrying Value $ 4,988,568 $ 4,980,389 Weighted Average Risk Rating (1) 3.1 2.9 (1) Weighted Average Risk Rating calculated based on amortized cost balance at period end. |
Summary of Activity in Allowance for Credit Losses for Mortgage Loan Investment Portfolio by Class of Financing Receivable | The following table presents activity in the allowance for credit losses for the mortgage loan investment portfolio by class of finance receivable for the three and six month periods ended June 30, 2020 (dollars in thousands): For the Three Months Ended June 30, 2020 Senior Loans Subordinated and Mezzanine Loans Total Allowance for credit losses for loans held for investment: Beginning balance at April 1, 2020 $ 73,620 $ 2,038 $ 75,658 Credit loss benefit (22,063 ) (38 ) (22,101 ) Subtotal 51,557 2,000 53,557 Allowance for credit losses on unfunded loan commitments: Beginning balance at April 1, 2020 5,807 1,528 7,335 Credit loss benefit (2,189 ) (28 ) (2,217 ) Subtotal 3,618 1,500 5,118 Total allowance for credit losses $ 55,175 $ 3,500 $ 58,675 For the Six Months Ended June 30, 2020 Senior Loans Subordinated and Mezzanine Loans Total Allowance for credit losses for loans held for investment: Beginning balance (prior to adoption of ASC 326) at January 1, 2020 $ — $ — $ — Impact of adopting ASC 326 16,903 880 17,783 Credit loss expense 34,654 1,120 35,774 Subtotal 51,557 2,000 53,557 Allowance for credit losses on unfunded loan commitments: Beginning balance (prior to adoption of ASC 326) at January 1, 2020 — — — Impact of adopting ASC 326 1,862 — 1,862 Credit loss expense 1,756 1,500 3,256 Subtotal 3,618 1,500 5,118 Total allowance for credit losses $ 55,175 $ 3,500 $ 58,675 |
Summary of Aging Analysis on Amortized Cost Basis of Mortgage Loans by Class of Loans | The following table presents the aging analysis on an amortized cost basis of mortgage loans by class of loans as of June 30, 2020 (dollars in thousands): Days Outstanding 30-59 Days 60-89 Days 90 Days or More Total Loans Past Due Current Total Loans 90 Days or More Past Due and Accruing Loans Receivable: Senior loans $ 87,637 $ 145,385 $ 28,057 $ 261,079 $ 4,761,271 $ 5,022,350 $ 28,057 Subordinated and mezzanine loans — — — — 19,775 19,775 — Total $ 87,637 $ 145,385 $ 28,057 $ 261,079 $ 4,781,046 $ 5,042,125 $ 28,057 |
Available-for-Sale Debt Secur_2
Available-for-Sale Debt Securities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Details of Amortized Cost, Fair Value and Allowance for Credit Losses of CRE Debt Securities | The following tables summarize the amortized cost, fair value, and unrealized gain of the Company’s CRE debt securities at December 31, 2019 (dollars in thousands): December 31, 2019 Face Amount Unamortized Premium (Discount), net Amortized Cost Gross Unrealized Gain Estimated Fair Value Investments, at Fair Value CRE CLO $ 750,187 $ 207 $ 750,394 $ 1,006 $ 751,400 Commercial Mortgage-Backed Securities 36,162 (55 ) 36,107 45 36,152 $ 786,349 $ 152 $ 786,501 $ 1,051 $ 787,552 |
CRE Debt Securities by Contractual Maturity | The amortized cost and estimated fair value of the Company’s CRE debt securities by contractual maturity, not expected life, as of December 31, 2019, are shown in the following table (dollars in thousands): December 31, 2019 Amortized Cost Estimated Fair Value Maturity Date After one, within five years $ 1,126 $ 1,143 After five years 785,375 786,409 Total investment in CRE debt securities, at amortized cost and estimated fair value $ 786,501 $ 787,552 |
Variable Interest Entities an_2
Variable Interest Entities and Collateralized Loan Obligations (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Summary of Variable Interest Entities Assets and Liabilities | The Company’s total assets and total liabilities as of June 30, 2020 and December 31, 2019 included the following VIE assets and liabilities of TRTX 2019-FL3 and TRTX 2018-FL2 (dollars in thousands): June 30, 2020 December 31, 2019 ASSETS Cash and Cash Equivalents $ 38,556 $ 17,075 Accounts Receivable from Servicer/Trustee 80,206 1,464 Accrued Interest Receivable 1,434 2,178 Loans Held for Investment 2,162,296 2,229,034 Total Assets $ 2,282,492 $ 2,249,751 LIABILITIES Accrued Interest Payable $ 1,412 $ 2,512 Accrued Expenses 375 732 Collateralized Loan Obligations 1,823,456 1,821,128 Payable to Affiliates 4,620 4,620 Deferred Revenue 133 — Total Liabilities $ 1,829,996 $ 1,828,992 |
Collateralized Loan Obligation | |
Schedule of Borrowings and Corresponding Collateral | The following tables outline TRTX 2019-FL3 and TRTX 2018-FL2 loan collateral and borrowings under the TRTX 2019-FL3 and TRTX 2018-FL2 collateralized loan obligations as of June 30, 2020 and December 31, 2019 (dollars in thousands): June 30, 2020 Collateral (loan investments) Debt (notes issued) Outstanding Principal Carrying Value Face Value Carrying Value $ 2,150,472 $ 2,150,472 $ 1,834,761 $ 1,823,456 December 31, 2019 Collateral (loan investments) Debt (notes issued) Outstanding Principal Carrying Value Face Value Carrying Value $ 2,229,034 $ 2,229,034 $ 1,834,761 $ 1,821,128 |
Schedule of Weighted Average Spreads and Maturities for Loan Collateral and Borrowings | The following table outlines the weighted average spreads and maturities for TRTX 2019-FL3 and TRTX 2018-FL2 loan collateral and borrowings under the TRTX 2019-FL3 and TRTX 2018-FL2 collateralized loan obligations as of June 30, 2020 and December 31, 2019 (dollars in thousands): June 30, 2020 December 31, 2019 Weighted Average Spread (%) Weighted Average Maturity (Years) Weighted Average Spread (%) Weighted Average Maturity (Years) Collateral (loan investments) TRTX 2018-FL2 3.69 % 4.5 3.82 % 4.2 TRTX 2019-FL3 3.18 % 4.2 3.33 % 4.1 Debt (notes issued) TRTX 2018-FL2 1.45 % 17.4 1.45 % 17.9 TRTX 2019-FL3 1.44 % 14.3 1.44 % 14.8 (1) Yield on collateral is based on cash coupon. (2) Loan term represents weighted-average final maturity, assuming extension options are exercised by the borrower. Repayments of CLO notes are dependent on timing of related collateral loan asset repayments post-reinvestment period. The term of the CLO notes represents the rated final distribution date. |
Secured Revolving Repurchase _2
Secured Revolving Repurchase Agreements, Senior Secured and Secured Credit Agreements, and Asset-Specific Financing (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 table presents certain information regarding the Company’s secured revolving repurchase agreements, senior secured and secured credit agreements, and asset-specific financings as of June 30, 2020 and December 31, 2019. Except as otherwise noted, all agreements are on a full or partial recourse basis (dollars in thousands): June 30, 2020 Financing Arrangement Secured Revolving Repurchase Agreements Initial Maturity Date Extended Maturity Date Index Rate Weighted Average Credit Spread Interest Rate Commitment Amount Maximum Current Availability Balance Outstanding Principal Balance of Collateral (1) Amortized Cost of Collateral Goldman Sachs (1) 08/19/21 08/19/22 1 Month LIBOR 2.7 % 2.9 % $ 250,000 $ 119,145 $ 130,855 $ 253,285 $ 252,201 Wells Fargo (1) 04/18/22 04/18/22 1 Month LIBOR 1.8 % 1.9 % 750,000 396,129 353,871 535,619 533,092 Barclays (1) 08/13/22 08/13/22 1 Month LIBOR 1.5 % 1.7 % 750,000 199,826 550,174 750,619 748,743 Morgan Stanley (1) 05/04/21 N/A 1 Month LIBOR 1.8 % 2.0 % 500,000 91,083 408,917 596,590 593,951 JP Morgan (1) 08/20/21 08/20/23 1 Month LIBOR 1.6 % 1.7 % 400,000 194,720 205,280 354,286 349,402 US Bank (1) 07/09/22 07/09/24 1 Month LIBOR 1.5 % 1.7 % 140,930 71,346 69,584 99,405 99,054 Subtotal - Loan Investments $ 2,790,930 $ 1,072,249 $ 1,718,681 $ 2,589,804 $ 2,576,443 Senior Secured and Secured Credit Agreements Bank of America (1) 09/29/21 09/29/22 1 Month LIBOR 1.8 % 1.9 % 200,000 62,442 137,558 183,411 183,411 Citibank (2)(3) 07/12/20 07/12/20 1 Month LIBOR 2.3 % N/A 160,000 160,000 — — — Subtotal $ 360,000 $ 222,442 $ 137,558 $ 183,411 $ 183,411 Asset-specific Financing Institutional Lender 10/09/20 10/09/20 1 Month LIBOR 4.2 % 4.3 % 77,000 — 77,000 112,000 111,799 Subtotal $ 77,000 — $ 77,000 $ 112,000 $ 111,799 Total $ 3,227,930 $ 1,294,691 $ 1,933,239 $ 2,885,215 $ 2,871,653 (1) Borrowings under secured revolving repurchase agreements and a senior secured credit agreement with a guarantee for 25% recourse from Holdco. (2) Borrowings under the secured credit agreement with a guarantee for 100% recourse. (3) Subsequent to June 30, 2020, the Citibank credit facility expired by its terms. December 31, 2019 Financing Arrangement Secured Revolving Repurchase Agreements Initial Maturity Date Extended Maturity Date Index Rate Weighted Average Credit Spread Interest Rate Commitment Amount Maximum Current Availability Balance Outstanding Principal Balance of Collateral Amortized Cost of Collateral Goldman Sachs (1) 08/19/20 08/19/22 1 Month LIBOR 1.8 % 3.5 % $ 750,000 $ 704,563 $ 45,437 $ 288,032 $ 285,962 Wells Fargo (1) 04/18/22 04/18/22 1 Month LIBOR 1.8 % 3.6 % 750,000 355,372 394,628 593,742 591,238 Barclays (1) 08/13/22 08/13/22 1 Month LIBOR 1.5 % 3.3 % 750,000 318,240 431,760 542,927 540,725 Morgan Stanley (1) 05/04/20 N/A 1 Month LIBOR 1.9 % 3.6 % 500,000 105,253 394,747 519,638 515,984 JP Morgan (1) 08/20/21 08/20/23 1 Month LIBOR 1.6 % 3.3 % 400,000 181,552 218,448 300,677 295,341 US Bank (1) 07/09/22 07/09/24 1 Month LIBOR 1.8 % 3.6 % 152,240 15,641 136,599 173,253 172,898 Subtotal - Loan Investments 1 Month LIBOR 3,302,240 1,680,621 1,621,619 2,418,269 2,402,148 Goldman Sachs (2) 01/12/20 01/12/20 1 Month LIBOR 0.9 % 2.7 % 81,143 — 81,143 94,629 94,644 JP Morgan (2) 01/17/20 01/17/20 1 Month LIBOR 0.9 % 2.6 % 475,881 — 475,881 544,105 545,080 Wells Fargo (2) 01/16/20 01/16/20 1 Month LIBOR 1.0 % 2.7 % 135,774 — 135,774 161,153 161,384 Royal Bank of Canada (2) N/A N/A N/A N/A N/A — — — — — Subtotal - CRE Debt Securities 692,798 — 692,798 799,887 801,108 Subtotal $ 3,995,038 $ 1,680,621 $ 2,314,417 $ 3,218,156 $ 3,203,256 Senior Secured and Secured Credit Agreements Bank of America (1) 09/29/20 09/29/20 1 Month LIBOR 1.8 3.8 500,000 354,363 145,637 182,882 182,882 Citibank (3) 07/12/20 07/12/20 1 Month LIBOR 2.3 4.1 160,000 160,000 — — — Subtotal $ 660,000 $ 514,363 $ 145,637 $ 182,882 $ 182,882 Asset-specific Financing Institutional Lender 10/09/20 10/09/20 1 Month LIBOR 4.2 % 5.9 % 77,000 — 77,000 112,000 111,436 Subtotal $ 77,000 — $ 77,000 $ 112,000 $ 111,436 Total $ 4,732,038 $ 2,194,984 $ 2,537,054 $ 3,513,038 $ 3,497,574 (1) Borrowings under secured revolving repurchase agreements and a senior secured credit agreement with a guarantee for 25% recourse from Holdco. (2) Borrowings under secured revolving repurchase agreements with a guarantee for 100% recourse from Holdco. Maturity Date represents the sooner of the next maturity date of the CRE debt securities secured revolving repurchase agreement, or roll-over date for the applicable underlying trade confirmation, subsequent to December 31, 2019. All of the financing arrangements were extended subsequent to period end. (3) Borrowings under the secured credit agreement include a guarantee for 100% recourse. |
Summary of Recourse and Market-to-Market Provisions | The following table presents the recourse and mark-to-market provisions for the Company’s secured financing arrangements as of June 30, 2020: June 30, 2020 Financing Arrangement Secured Revolving Repurchase Agreements Initial Maturity Date Extended Maturity Date Recourse Percentage Basis of Margin Calls Loan Investments Goldman Sachs 08/19/21 08/19/22 25 % Credit Wells Fargo 04/18/22 04/18/22 25 % Credit Barclays 08/13/22 08/13/22 25 % Credit Morgan Stanley 05/04/21 N/A 25 % Credit JP Morgan 08/20/21 08/20/23 25 % Credit and Spread US Bank 07/09/22 07/09/24 25 % Credit Senior Secured and Secured Credit Agreements Bank of America 09/29/21 09/29/22 25 % Credit Citibank 07/12/20 07/12/20 100 % N/A Asset-specific Financing Institutional Lender 10/09/20 10/09/20 N/A N/A The following table presents the recourse and mark-to-market provisions for the Company’s secured financing arrangements as of December 31, 2019: December 31, 2019 Financing Arrangement Secured Revolving Repurchase Agreements Initial Maturity Date Extended Maturity Date Recourse Percentage Basis of Margin Calls Loan Investments Goldman Sachs 08/19/20 08/19/22 25 % Credit Wells Fargo 04/18/22 04/18/22 25 % Credit Barclays 08/13/22 08/13/22 25 % Credit Morgan Stanley 05/04/20 N/A 25 % Credit JP Morgan 08/20/21 08/20/23 25 % Credit and Spread US Bank 07/09/22 07/09/24 25 % Credit CRE Debt Securities Goldman Sachs 01/12/20 01/12/20 100 % Spread JP Morgan 01/17/20 01/17/20 100 % Spread Wells Fargo 01/16/20 01/16/20 100 % Spread Royal Bank of Canada N/A N/A 100 % Spread Senior Secured and Secured Credit Agreements Bank of America 09/29/20 09/29/20 25 % Credit Citibank 07/12/20 07/12/20 100 % N/A Asset-specific Financing Institutional Lender 10/09/20 10/09/20 N/A N/A |
Schedule of Key Terms of Financial Covenants Before and After Modification | The Company’s financial covenants and guarantees for outstanding borrowings related to our secured revolving repurchase agreements, senior secured and secured credit agreements require Holdco to maintain compliance with the following financial covenants (among others), which were revised on May 28, 2020 as follows: Financial Covenant Current Maintenance Maintenance Prior to May 28, 2020 Cash Liquidity Minimum cash liquidity of no less than the greater of: $10.0 million; and 5.0% of Holdco’s recourse indebtedness Minimum cash liquidity of no less than the greater of: $10.0 million; and 5.0% of Holdco’s recourse indebtedness Tangible Net Worth $1.1 billion as of April 1, 2020, plus 75% of future equity issuances thereafter Minimum tangible net worth of at least 75% of the net cash proceeds of all prior equity issuances made by Holdco or the Company, plus 75% of the net cash proceeds of all subsequent equity issuances made by Holdco or the Company Debt to Equity Debt to Equity ratio not to exceed 3.5 to 1.0 with "equity" and "equity adjustment" as defined below. Debt to Equity ratio not to exceed 3.5 to 1.0 Interest Coverage Minimum interest coverage ratio of no less than 1.4 to 1.0 until December 2, 2020, and no less than 1.5 to 1.0 thereafter. Minimum interest coverage ratio of no less than 1.5 to 1.0. |
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, including counterparty concentration risks, at June 30, 2020 (dollars in thousands): June 30, 2020 Loan Financings Commitment Amount UPB of Collateral Amortized Cost of Collateral (1) Amounts Payable (2) Net Counterparty Exposure (3) Percent of Stockholders' Equity Days to Extended Maturity (4) Goldman Sachs Bank $ 250,000 $ 253,285 $ 254,757 $ 130,945 $ 123,812 8.4 % 780 Wells Fargo 750,000 535,619 537,394 354,301 183,093 12.5 % 657 Barclays 750,000 750,619 749,432 550,535 198,897 13.5 % 774 Morgan Stanley Bank (4) 500,000 596,590 595,513 409,004 186,509 12.7 % N/A JP Morgan Chase Bank 400,000 354,286 351,802 205,335 146,467 10.0 % 1,146 US Bank 140,930 99,405 99,012 69,652 29,360 2.0 % 1,470 Total / Weighted Average $ 2,790,930 $ 2,589,804 $ 2,587,910 $ 1,719,772 $ 868,138 838 (1) Loan amounts shown in the table include interest receivable of $11.5 million and are net of premium, discount and origination fees of $13.4 million. (2) Loan amounts shown in the table include interest payable of $1.1 million and do not reflect unamortized deferred financing fees of $9.7 million. (3) Loan amounts r epresent the net carrying value of the commercial real estate assets sold under agreements to repurchase, including accrued interest plus any cash or assets on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest. (4) The 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 approval. 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 Amortized Cost of Collateral (1) Amounts Payable (2) Net Counterparty Exposure (3) Percent of Stockholders' Equity Days to Extended Maturity (4) Goldman Sachs Bank $ 750,000 $ 288,032 $ 289,674 $ 45,900 $ 243,774 16.6 % 962 Wells Fargo 750,000 593,742 594,832 395,039 199,793 13.6 % 839 Barclays 750,000 542,927 542,191 432,399 109,792 7.5 % 956 Morgan Stanley Bank (4) 500,000 519,638 518,048 395,356 122,692 8.4 % N/A JP Morgan Chase Bank 400,000 300,677 297,248 218,744 78,504 5.4 % 1,328 US Bank 152,240 173,741 173,045 136,734 36,311 2.5 % 1,652 Subtotal / Weighted Average $ 3,302,240 $ 2,418,757 $ 2,415,038 $ 1,624,172 $ 790,866 1,062 CRE Debt Securities Financings Commitment Amount UPB of Collateral Amortized Cost of Collateral (1) Amounts Payable (2) Net Counterparty Exposure (3) Percent of Stockholders' Equity Days to Extended Maturity (4) Goldman Sachs Bank $ 81,143 $ 94,629 $ 108,414 $ 81,362 $ 27,052 1.8 % 12 JP Morgan 475,881 $ 544,105 $ 546,260 $ 476,307 $ 69,953 4.8 % 17 Wells Fargo 135,774 $ 161,153 $ 148,738 $ 136,021 $ 12,717 0.9 % 16 Royal Bank of Canada — — — — — — — Subtotal / Weighted Average $ 692,798 $ 799,887 $ 803,412 $ 693,690 $ 109,722 16 Total / Weighted Average - Loans and CRE Debt Securities $ 3,995,038 $ 3,218,644 $ 3,218,450 $ 2,317,862 $ 900,588 685 (1) Loan amounts shown in the table include interest receivable of $13.0 million and are net of premium, discount and origination fees of $16.7 million. CRE debt securities shown in the table include interest receivable of $2.3 million and are net of premium, discount, and unrealized gains of $1.2 million. (2) Loan amounts shown in the table include interest payable of $2.5 million and do not reflect unamortized deferred financing fees of $10.3 million. CRE debt securities shown in the table include interest payable of $0.9 million. (3) Loan amounts represent the net carrying value of the commercial real estate assets sold under agreements to repurchase, including accrued interest plus any cash or assets on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest. CRE debt securities represent the net carrying value of AFS securities sold under agreements to repurchase, including accrued interest plus any cash or assets on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest. (4) The secured revolving repurchase agreement provided by Morgan Stanley Bank is excluded from the “Days to Extended Maturity” column because it has no limit on the maximum number of permitted extensions, subject to satisfaction of certain conditions and approvals. For borrowings secured by CRE debt securities, the extended maturity represents the sooner of the next maturity date of the CRE debt securities, the secured revolving repurchase agreement, or the roll-over date for the applicable underlying trade confirmation, subsequent to December 31, 2019. These contracts typically have initial terms of 30 days. |
Schedule of Maturities (Tables)
Schedule of Maturities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Future Principal Payments | The future principal payments for the five years subsequent to June 30, 2020 and thereafter are as follows (in thousands): Collateralized loan obligations Secured revolving repurchase agreements Senior secured and secured credit agreements Asset-specific financing 2020 $ 265,852 $ 176,464 $ 137,558 $ 77,000 2021 878,971 918,326 — — 2022 581,129 623,891 — — 2023 108,809 — — — 2024 — — — — Thereafter — — — — Total $ 1,834,761 $ 1,718,681 $ 137,558 $ 77,000 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value of Financial Assets and Liabilities | The following tables provide information about the fair value of the Company’s financial assets and liabilities on the Company’s consolidated balance sheets as of June 30, 2020 and December 31, 2019 (dollars in thousands): June 30, 2020 Fair Value Carrying Value Level I Level II Level III Financial Assets Loans Held for Investment $ 4,988,568 $ — $ — $ 4,941,451 Financial Liabilities Collateralized Loan Obligations 1,823,456 — — 1,870,231 Secured Financing Arrangements 1,922,820 — — 1,985,307 December 31, 2019 Fair Value Carrying Value Level I Level II Level III Financial Assets Available for sale CRE Debt Securities $ 787,552 $ — $ 787,552 $ — Loans Held for Investment 4,980,389 — — 5,004,379 Financial Liabilities Collateralized Loan Obligations 1,806,428 — — 1,806,428 Secured Financing Arrangements 2,525,128 — — 2,525,128 |
Summary of Changes in Assets and Liabilities With Level III Fair Values | Changes in assets and liabilities with Level III fair values for the six months ended June 30, 2020 are as follows: Loans Held for Investment Collateralized Loan Obligations Secured Financing Arrangements Total Balance at December 31, 2019 $ 5,004,379 $ 1,806,428 $ 2,525,128 $ 9,335,935 Additions — — — — Change in fair value (62,928 ) 63,803 (539,821 ) (538,946 ) Transfers into Level III — — — — Transfers out of Level III — — — — Disposals — — — — Balance at June 30, 2020 $ 4,941,451 $ 1,870,231 $ 1,985,307 $ 8,796,989 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Summary of Management Fees and Incentive Management Fees Incurred and Paid Pursuant to Management Agreement | For the three and six months ended June 30, 2020 and 2019, the Company incurred and paid the following management fees and incentive management fees pursuant to the Management Agreement (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Management Agreement fees incurred $ 5,115 $ 7,371 $ 10,115 $ 13,879 Management Agreement fees paid — 6,508 7,252 12,608 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Basic and Diluted Earnings per Common Share | The following table sets forth the calculation of basic and diluted earnings per common share (common stock and Class A common stock) based on the weighted-average number of shares of common stock outstanding for the three and six months ended June 30, 2020, and the weighted-average number of shares of common stock and Class A common stock outstanding for the three and six months ended June 30, 2019 (in thousands, except share and per share data): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Net Income (Loss) Attributable to TPG RE Finance Trust, Inc. $ 40,673 $ 31,965 $ (192,120 ) $ 60,374 Participating Securities' Share in Earnings (Loss) (125 ) (138 ) (393 ) (279 ) Accretion of Discount on Series B Preferred Stock (443 ) — (443 ) — Net Income (Loss) Attributable to Common Stockholders $ 40,105 $ 31,827 $ (192,956 ) $ 60,095 Weighted Average Common Shares Outstanding, Basic and Diluted 76,644,038 73,963,337 76,554,680 71,144,696 Per Common Share Amount, Basic and Diluted $ 0.52 $ 0.43 $ (2.53 ) $ 0.85 |
Share-Based Incentive Plan (Tab
Share-Based Incentive Plan (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Awarded Shares Vesting Period | Generally, the shares vest in installments over a four-year 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) | 6 Months Ended |
Jun. 30, 2020 | |
Loans And Leases Receivable Disclosure [Line Items] | |
Summary of Loan Portfolio by Property/ Loan Category Type | A summary of the loan portfolio by property type as of June 30, 2020 and December 31, 2019 based on total loan commitment and current unpaid principal balance (“UPB”) is as follows (dollars in thousands): June 30, 2020 Property Type Loan Commitment Unfunded Commitment % of Loan Commitment Loan UPB % of Loan UPB Office $ 2,807,923 $ 414,240 49.9 % $ 2,393,683 47.3 % Multifamily 1,253,132 76,395 22.2 % 1,176,737 23.3 % Hotel 737,293 29,460 13.1 % 708,384 14.0 % Mixed Use 604,993 56,016 10.7 % 548,977 10.9 % Condominium 86,938 1,525 1.5 % 85,413 1.7 % Retail 33,000 2,281 0.6 % 30,719 0.6 % Other 112,000 — 2.0 % 112,000 2.2 % Total $ 5,635,279 $ 579,917 100.0 % $ 5,055,913 100.0 % December 31, 2019 Property Type Loan Commitment Unfunded Commitment % of Loan Commitment Loan UPB % of Loan UPB Office $ 2,925,749 $ 438,800 52.0 % $ 2,486,949 49.9 % Multifamily 1,104,946 69,061 19.6 1,035,885 20.7 Hotel 752,293 40,088 13.4 712,205 14.2 Mixed-Use 604,993 78,835 10.7 526,158 10.5 Condominium 95,784 1,524 1.7 94,260 1.9 Retail 33,000 2,281 0.6 30,719 0.6 Other 112,000 — 2.0 112,000 2.2 Total $ 5,628,765 $ 630,589 100.0 % $ 4,998,176 100.0 % |
Summary of Geographic Composition of Loans Held for Investment Based on Current UPB and Loan Commitment | All of the Company’s loans held for investment are secured by properties within the United States. The geographic composition of loans held for investment based on total loan commitment and current UPB as of June 30, 2020 and December 31, 2019 is as follows (dollars in thousands): June 30, 2020 Geographic Region Loan Commitment Unfunded Commitment % of Loan Commitment Loan UPB % of Loan UPB East $ 2,450,224 $ 225,591 43.5 % $ 2,224,633 44.1 % South 1,348,021 123,230 23.9 % 1,225,342 24.2 % West 1,320,583 170,766 23.4 % 1,149,817 22.7 % Midwest 428,351 57,951 7.6 % 370,400 7.3 % Various 88,100 2,379 1.6 % 85,721 1.7 % Total $ 5,635,279 $ 579,917 100.0 % $ 5,055,913 100.0 % December 31, 2019 Geographic Region Loan Commitment Unfunded Commitment % of Loan Commitment Loan UPB % of Loan UPB East $ 2,182,659 $ 214,938 38.7 % $ 1,967,721 39.4 % South 1,342,794 124,939 23.9 1,217,855 24.4 West 1,397,431 201,690 24.8 1,195,741 23.9 Midwest 482,804 83,178 8.6 399,626 8.0 Various 223,077 5,844 4.0 217,233 4.3 Total $ 5,628,765 $ 630,589 100.0 % $ 4,998,176 100.0 % |
Loan Category | |
Loans And Leases Receivable Disclosure [Line Items] | |
Summary of Loan Portfolio by Property/ Loan Category Type | A summary of the loan portfolio by category as of June 30, 2020 and December 31, 2019 based on total loan commitment and current UPB is as follows (dollars in thousands): June 30, 2020 Loan Category Loan Commitment Unfunded Commitment % of Loan Commitment Loan UPB % of Loan UPB Bridge $ 1,859,465 $ 55,614 33.0 % $ 1,804,402 35.7 % Light Transitional 1,957,935 201,804 34.8 % 1,756,131 34.7 % Moderate Transitional 1,782,879 307,499 31.6 % 1,475,380 29.2 % Construction 35,000 15,000 0.6 % 20,000 0.4 % Total $ 5,635,279 $ 579,917 100.0 % $ 5,055,913 100.0 % December 31, 2019 Loan Category Loan Commitment Unfunded Commitment % of Loan Commitment Loan UPB % of Loan UPB Bridge $ 2,001,962 $ 49,057 35.6 % $ 1,952,905 39.1 % Light Transitional 1,890,762 219,138 33.6 1,671,624 33.4 Moderate Transitional 1,701,041 347,394 30.2 1,353,647 27.1 Construction 35,000 15,000 0.6 20,000 0.4 Total $ 5,628,765 $ 630,589 100.0 % $ 4,998,176 100.0 % |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | Jun. 29, 2020 | Jun. 26, 2020 | May 29, 2020USD ($) | May 04, 2020 | Jan. 24, 2020shares | Apr. 29, 2020USD ($)Investment | Jun. 30, 2020USD ($)Loanshares | May 28, 2020USD ($) | Mar. 31, 2020shares | Feb. 14, 2020shares | Dec. 31, 2019USD ($)shares |
Significant Accounting Policies [Line Items] | |||||||||||
Percentage of senior mortgage loan transferred to third-party | 100.00% | ||||||||||
Common stock, shares outstanding | shares | 76,792,432 | 74,886,113 | |||||||||
Common stock, authorized shares | shares | 302,500,000 | 300,000,000 | |||||||||
Maximum insured amount of each cash account | $ 250,000 | $ 250,000 | |||||||||
Cash | $ 23,200,000 | $ 56,900,000 | |||||||||
Voluntary deleveraging payments | $ 157,700,000 | ||||||||||
ASU 2016-13 | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Change in accounting principle, accounting standards update, adopted | true | ||||||||||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2020 | ||||||||||
Change in accounting principle accounting standards update immaterial effect | true | ||||||||||
ASU 2018-19 | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Change in accounting principle, accounting standards update, adopted | true | ||||||||||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2020 | ||||||||||
ASU 2019-04 | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Change in accounting principle, accounting standards update, adopted | true | ||||||||||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2020 | ||||||||||
ASU 2019-05 | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Change in accounting principle, accounting standards update, adopted | true | ||||||||||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2020 | ||||||||||
ASU 2019-10 | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Change in accounting principle, accounting standards update, adopted | true | ||||||||||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2020 | ||||||||||
ASU 2019-11 | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Change in accounting principle, accounting standards update, adopted | true | ||||||||||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2020 | ||||||||||
Senior Secured Credit Agreement | Bank of America | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Option to extend maturity date | Sep. 29, 2021 | ||||||||||
Repurchase Agreements | Goldman Sachs | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Option to extend maturity date | Aug. 19, 2021 | ||||||||||
Morgan Stanley | Repurchase Agreements | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Option to extend maturity date | May 4, 2021 | ||||||||||
CRE Debt Securities | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Number of investments sold | Investment | 39 | ||||||||||
Aggregate face value of debt securities | $ 782,000,000 | ||||||||||
Repayment of secured indebtedness | 581,700,000 | ||||||||||
Proceeds from sale of debt securities | $ 33,100,000 | ||||||||||
Class A Common Stock | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Common stock, shares outstanding | shares | 0 | 0 | 1,136,665 | ||||||||
Common stock, authorized shares | shares | 0 | 0 | 2,500,000 | ||||||||
Series B Preferred Stock | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Preferred stock, value issued | $ 225,000,000 | ||||||||||
Option to issue additional preferred stock | 100,000,000 | ||||||||||
Series B Preferred Stock | Tranche One | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Option to issue additional preferred stock | 50,000,000 | ||||||||||
Series B Preferred Stock | Tranche Two | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Option to issue additional preferred stock | $ 50,000,000 | ||||||||||
Class A Shares Converted in to Common Stock | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Common stock, shares issued | shares | 1,136,665 | ||||||||||
Common stock, authorized shares | shares | 2,500,000 | ||||||||||
Commercial Real Estate Loans | Minimum | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Number of performance loan | Loan | 100,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Cumulative Impact of Adoption of ASU 2016-13 on Indicated Line Items of Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | |
Assets: | ||||
Loans Held for Investment | $ 5,042,125 | $ 4,980,389 | ||
Allowance for Credit Losses | (53,557) | |||
Loan Held for Investment, net | 4,988,568 | 4,980,389 | ||
Liabilities: | ||||
Accrued Expenses and Other Liabilities | [1] | 18,679 | 8,176 | |
Equity: | ||||
Accumulated Deficit | [1] | $ (288,540) | $ (28,108) | |
ASU 2016-13 | ||||
Assets: | ||||
Loans Held for Investment | $ 4,980,389 | |||
Allowance for Credit Losses | (17,783) | |||
Loan Held for Investment, net | 4,962,606 | |||
Liabilities: | ||||
Accrued Expenses and Other Liabilities | 10,038 | |||
Equity: | ||||
Accumulated Deficit | (47,753) | |||
ASU 2016-13 | Cumulative Effect of Adopting ASU 2016-13 | ||||
Assets: | ||||
Allowance for Credit Losses | (17,783) | |||
Loan Held for Investment, net | (17,783) | |||
Liabilities: | ||||
Accrued Expenses and Other Liabilities | 1,862 | |||
Equity: | ||||
Accumulated Deficit | $ (19,645) | |||
[1] | The Company’s consolidated Total Assets and Total Liabilities at June 30, 2020 include assets and liabilities of variable interest entities (“VIEs”) of $2.3 billion and $1.8 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities at December 31, 2019 include assets and liabilities of VIEs of $2.2 billion and $1.8 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details |
Loans Held for Investment and_3
Loans Held for Investment and the Allowance for Credit Losses - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2020USD ($)RatingLoan | Mar. 31, 2020Loan | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)RatingLoan | Jun. 30, 2019USD ($) | Jan. 01, 2020USD ($) | Dec. 31, 2019USD ($)RatingLoan | |
Accounts Notes And Loans Receivable [Line Items] | |||||||
Accrued interest receivable relating to loans held for investment | $ 4,988,568 | $ 4,988,568 | $ 4,980,389 | ||||
Number of mortgage loans originated or acquired | Loan | 0 | ||||||
Unamortized loan fees and discounts included in Loans Held for Investment | $ 13,800 | 13,800 | $ 17,800 | ||||
Accelerated fee component of prepayment fees | $ 0 | $ 0 | $ 300 | $ 600 | |||
Weighted Average Risk Rating | Rating | 3.1 | 3.1 | 2.9 | ||||
Allowance for credit loss increase (decrease) | $ (58,700) | ||||||
Allowance for credit loss reversal of reserve | (10,546) | $ 52,802 | |||||
Allowance for credit loss offset by increase in general reserve | $ 500 | ||||||
Number of loans on non-accrual status | Loan | 0 | 0 | 0 | 0 | |||
Number of loans on over 90 days past due | Loan | 4 | 4 | |||||
Amortized cost of loan | $ 85,500 | $ 85,500 | $ 81,900 | ||||
Fair market value, discount rate | 11.50% | 11.50% | |||||
Fair market value, terminal capitalization rate | 8.75% | 8.75% | |||||
Aggregate loan commitments | $ 5,635,279 | $ 5,635,279 | 5,628,765 | ||||
Loans and leases, unpaid principal balance | $ 5,042,125 | 5,042,125 | $ 4,980,389 | ||||
ASU 2016-13 | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Accrued interest receivable relating to loans held for investment | $ 4,962,606 | ||||||
Allowance for credit loss increase (decrease) | $ 19,600 | ||||||
Loans and leases, unpaid principal balance | $ 4,980,389 | ||||||
COVID-19 | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Weighted Average Risk Rating | Rating | 3.1 | 3.1 | 2.9 | ||||
Number of loans downgraded | Loan | 1 | 9 | |||||
Aggregate loan commitments | $ 484,200 | $ 484,200 | |||||
Loans and leases, unpaid principal balance | 457,700 | $ 457,700 | |||||
Current Expected Credit Loss | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Allowance for credit loss reversal of reserve | (24,800) | ||||||
Moved from Category 3 Risk Rating to Category 2 Risk Rating | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Number of loans selected for risk rate changes | Loan | 1 | ||||||
Moved from Category 4 Risk Rating to Category 5 Risk Rating | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Number of loans selected for risk rate changes | Loan | 1 | ||||||
Accrued Interest Receivable | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Accrued interest receivable relating to loans held for investment | $ 17,900 | $ 17,900 |
Loans Held for Investment and_4
Loans Held for Investment and the Allowance for Credit Losses - Schedule of Overall Statistics for Loan Portfolio (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020USD ($)Loan | Dec. 31, 2019USD ($) | |
Loans And Leases Receivable Disclosure [Line Items] | ||
Floating rate loans (by unpaid principal balance) | 100.00% | 100.00% |
Total loan commitments | $ 5,635,279 | $ 5,628,765 |
Unpaid principal balance | 5,055,913 | 4,998,176 |
Unfunded loan commitments | 579,917 | 630,589 |
Loans Held for Investment | $ 5,042,125 | $ 4,980,389 |
Balance Sheet Portfolio | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Number of loans | Loan | 65 | |
Floating rate loans (by unpaid principal balance) | 100.00% | |
Total loan commitments | $ 5,635,279 | |
Unpaid principal balance | 5,055,913 | |
Unfunded loan commitments | 579,917 | |
Loans Held for Investment | $ 5,042,125 | |
Weighted average credit spread | 3.40% | |
Weighted average all-in yield | 5.40% | |
Weighted average term to extended maturity (in years) | 3 years 6 months | |
Weighted average LTV | 65.80% | |
Total Loan Portfolio | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Number of loans | Loan | 66 | |
Floating rate loans (by unpaid principal balance) | 100.00% | |
Total loan commitments | $ 5,767,279 | |
Unpaid principal balance | 5,055,913 | |
Unfunded loan commitments | 579,917 | |
Loans Held for Investment | $ 5,042,125 | |
Weighted average credit spread | 3.40% | |
Weighted average all-in yield | 5.40% | |
Weighted average term to extended maturity (in years) | 3 years 6 months | |
Weighted average LTV | 65.80% |
Loans Held for Investment and_5
Loans Held for Investment and the Allowance for Credit Losses - Schedule of Overall Statistics for Loan Portfolio (Parenthetical) (Details) $ in Millions | Jun. 30, 2020USD ($) |
Loans And Leases Receivable Disclosure [Abstract] | |
Non-consolidated senior interest outstanding | $ 132 |
Percentage of loans subject to yield maintenance or other prepayment restrictions | 57.80% |
Percentage of loans open to repayment by borrower without penalty | 42.20% |
Loans Held for Investment and_6
Loans Held for Investment and the Allowance for Credit Losses - Schedule of Mortgage Loan Investment Portfolio by Loan Seniority (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | |
Loans And Leases Receivable Disclosure [Line Items] | |||
Outstanding Principal | $ 5,055,913 | $ 4,998,176 | |
Unamortized Premium (Discount), Loan Origination Fees, net | (13,788) | (17,787) | |
Amortized Cost | [1] | 5,042,125 | 4,980,389 |
Allowance for Credit Losses | [1] | (53,557) | |
Loans Held for Investment, Net | [1] | 4,988,568 | 4,980,389 |
Senior Loans | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Outstanding Principal | 5,035,913 | 4,978,176 | |
Unamortized Premium (Discount), Loan Origination Fees, net | (13,563) | (17,500) | |
Amortized Cost | 5,022,350 | 4,960,676 | |
Subordinated and Mezzanine Loans | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Outstanding Principal | 20,000 | 20,000 | |
Unamortized Premium (Discount), Loan Origination Fees, net | (225) | (287) | |
Amortized Cost | $ 19,775 | $ 19,713 | |
[1] | The Company’s consolidated Total Assets and Total Liabilities at June 30, 2020 include assets and liabilities of variable interest entities (“VIEs”) of $2.3 billion and $1.8 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities at December 31, 2019 include assets and liabilities of VIEs of $2.2 billion and $1.8 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details |
Loans Held for Investment and_7
Loans Held for Investment and the Allowance for Credit Losses - Summary of Loan Portfolio Activity (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Loans And Leases Receivable Disclosure [Abstract] | |
Balance at December 31, 2019 | $ 4,980,389 |
Loans originated and acquired | 351,650 |
Additional fundings | 124,242 |
Amortization of origination fees | 5,882 |
Collection of principal(1) | (420,038) |
Change in allowance for credit losses | (53,557) |
Balance at June 30, 2020 | $ 4,988,568 |
Loans Held for Investment and_8
Loans Held for Investment and the Allowance for Credit Losses - Summary of Loan Portfolio Activity (Parenthetical) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Loans And Leases Receivable Disclosure [Line Items] | |
Loans And Leases Receivable Loans Sold | $ 85.5 |
One Loan | |
Loans And Leases Receivable Disclosure [Line Items] | |
Unpaid principal balance | 99.3 |
Principal balance sales, realized loss | $ 13.8 |
Loans Held for Investment and_9
Loans Held for Investment and the Allowance for Credit Losses - Summary of Amortized Cost by Origination Year Grouped by Risk Rating (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Accounts Notes And Loans Receivable [Line Items] | ||
Amortized cost basis of loans by origination year, 2020 | $ 356,181 | |
Amortized cost basis of loans by origination year, 2019 | 2,356,147 | |
Amortized cost basis of loans by origination year, 2018 | 1,634,277 | |
Amortized cost basis of loans by origination year, 2017 | 667,463 | |
Amortized cost basis of loans by origination year, 2016 | 28,057 | |
Amortized cost basis of loans by origination year, Total | 5,042,125 | $ 4,980,389 |
Rating 2 | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Amortized cost basis of loans by origination year, Total | 621,159 | 903,393 |
Rating 3 | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Amortized cost basis of loans by origination year, Total | 3,398,513 | 3,868,696 |
Rating 4 | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Amortized cost basis of loans by origination year, Total | 936,989 | $ 208,300 |
Rating 5 | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Amortized cost basis of loans by origination year, Total | 85,464 | |
Senior Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Amortized cost basis of loans by origination year, 2020 | 356,181 | |
Amortized cost basis of loans by origination year, 2019 | 2,336,372 | |
Amortized cost basis of loans by origination year, 2018 | 1,634,277 | |
Amortized cost basis of loans by origination year, 2017 | 667,463 | |
Amortized cost basis of loans by origination year, 2016 | 28,057 | |
Amortized cost basis of loans by origination year, Total | 5,022,350 | |
Senior Loans | Rating 2 | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Amortized cost basis of loans by origination year, 2020 | 192,972 | |
Amortized cost basis of loans by origination year, 2018 | 340,867 | |
Amortized cost basis of loans by origination year, 2017 | 87,320 | |
Amortized cost basis of loans by origination year, Total | 621,159 | |
Senior Loans | Rating 3 | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Amortized cost basis of loans by origination year, 2020 | 163,209 | |
Amortized cost basis of loans by origination year, 2019 | 1,801,836 | |
Amortized cost basis of loans by origination year, 2018 | 1,134,749 | |
Amortized cost basis of loans by origination year, 2017 | 278,944 | |
Amortized cost basis of loans by origination year, Total | 3,378,738 | |
Senior Loans | Rating 4 | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Amortized cost basis of loans by origination year, 2019 | 449,072 | |
Amortized cost basis of loans by origination year, 2018 | 158,661 | |
Amortized cost basis of loans by origination year, 2017 | 301,199 | |
Amortized cost basis of loans by origination year, 2016 | 28,057 | |
Amortized cost basis of loans by origination year, Total | 936,989 | |
Senior Loans | Rating 5 | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Amortized cost basis of loans by origination year, 2019 | 85,464 | |
Amortized cost basis of loans by origination year, Total | 85,464 | |
Subordinated and Mezzanine Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Amortized cost basis of loans by origination year, 2019 | 19,775 | |
Amortized cost basis of loans by origination year, Total | 19,775 | |
Subordinated and Mezzanine Loans | Rating 3 | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Amortized cost basis of loans by origination year, 2019 | 19,775 | |
Amortized cost basis of loans by origination year, Total | $ 19,775 |
Loans Held for Investment an_10
Loans Held for Investment and the Allowance for Credit Losses - Summary of Amortized Cost and Results of Internal Risk Rating Review Performed (Details) $ in Thousands | Jun. 30, 2020USD ($)Rating | Dec. 31, 2019USD ($)Rating |
Accounts Notes And Loans Receivable [Line Items] | ||
Carrying Value, Gross | $ 5,042,125 | $ 4,980,389 |
Allowance for Credit Losses | (53,557) | |
Loan Held for Investment, net | $ 4,988,568 | $ 4,980,389 |
Weighted Average Risk Rating | Rating | 3.1 | 2.9 |
Rating 2 | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Carrying Value, Gross | $ 621,159 | $ 903,393 |
Rating 3 | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Carrying Value, Gross | 3,398,513 | 3,868,696 |
Rating 4 | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Carrying Value, Gross | 936,989 | $ 208,300 |
Rating 5 | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Carrying Value, Gross | $ 85,464 |
Loans Held for Investment an_11
Loans Held for Investment and the Allowance for Credit Losses - Summary of Activity in Allowance for Credit Losses for Mortgage Loan Investment Portfolio by Class of Financing Receivable (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020USD ($) | Jun. 30, 2020USD ($) | |
Accounts Notes And Loans Receivable [Line Items] | ||
Allowance for credit losses for loans held for investment | $ 53,557 | $ 53,557 |
Allowance for credit losses on unfunded loan commitments | 5,118 | 5,118 |
Total allowance for credit losses | 58,675 | 58,675 |
Loans Held for Investment | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Beginning balance | 75,658 | |
Credit loss expense (benefit) | (22,101) | 35,774 |
Loans Held for Investment | ASU 2016-13 | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Impact of adopting | 17,783 | |
Unfunded Loan Commitment | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Beginning balance | 7,335 | |
Credit loss expense (benefit) | (2,217) | 3,256 |
Unfunded Loan Commitment | ASU 2016-13 | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Impact of adopting | 1,862 | |
Senior Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Allowance for credit losses for loans held for investment | 51,557 | 51,557 |
Allowance for credit losses on unfunded loan commitments | 3,618 | 3,618 |
Total allowance for credit losses | 55,175 | 55,175 |
Senior Loans | Loans Held for Investment | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Beginning balance | 73,620 | |
Credit loss expense (benefit) | (22,063) | 34,654 |
Senior Loans | Loans Held for Investment | ASU 2016-13 | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Impact of adopting | 16,903 | |
Senior Loans | Unfunded Loan Commitment | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Beginning balance | 5,807 | |
Credit loss expense (benefit) | (2,189) | 1,756 |
Senior Loans | Unfunded Loan Commitment | ASU 2016-13 | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Impact of adopting | 1,862 | |
Subordinated and Mezzanine Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Allowance for credit losses for loans held for investment | 2,000 | 2,000 |
Allowance for credit losses on unfunded loan commitments | 1,500 | 1,500 |
Total allowance for credit losses | 3,500 | 3,500 |
Subordinated and Mezzanine Loans | Loans Held for Investment | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Beginning balance | 2,038 | |
Credit loss expense (benefit) | (38) | 1,120 |
Subordinated and Mezzanine Loans | Loans Held for Investment | ASU 2016-13 | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Impact of adopting | 880 | |
Subordinated and Mezzanine Loans | Unfunded Loan Commitment | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Beginning balance | 1,528 | |
Credit loss expense (benefit) | $ (28) | $ 1,500 |
Loans Held for Investment an_12
Loans Held for Investment and the Allowance for Credit Losses - Summary of Aging Analysis on Amortized Cost Basis of Mortgage Loans by Class of Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Accounts Notes And Loans Receivable [Line Items] | ||
Total Loans Past Due | $ 261,079 | |
Current | 4,781,046 | |
Amortized cost basis of loans by origination year, Total | 5,042,125 | $ 4,980,389 |
90 Days or More Past Due and Accruing | 28,057 | |
30-59 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Loans Past Due | 87,637 | |
60-89 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Loans Past Due | 145,385 | |
90 Days or More | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Loans Past Due | 28,057 | |
Senior Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Loans Past Due | 261,079 | |
Current | 4,761,271 | |
Amortized cost basis of loans by origination year, Total | 5,022,350 | |
90 Days or More Past Due and Accruing | 28,057 | |
Senior Loans | 30-59 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Loans Past Due | 87,637 | |
Senior Loans | 60-89 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Loans Past Due | 145,385 | |
Senior Loans | 90 Days or More | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Loans Past Due | 28,057 | |
Subordinated and Mezzanine Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Current | 19,775 | |
Amortized cost basis of loans by origination year, Total | $ 19,775 |
Available-for-Sale Debt Secur_3
Available-for-Sale Debt Securities - Additional Information (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Apr. 30, 2020USD ($) | Jun. 30, 2020USD ($)Investment | Mar. 31, 2020USD ($)Investment | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)Investment | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($)Investment | ||
Schedule Of Available For Sale Securities [Line Items] | ||||||||
Aggregate losses from the sales | $ 77,000 | $ (3,112,000) | $ 1,051,000 | $ (3,218,000) | ||||
Available For Sale Securities | [1] | $ 787,552,000 | ||||||
CMBS and CRE CLO Investments | ||||||||
Schedule Of Available For Sale Securities [Line Items] | ||||||||
Number of Investments | Investment | 0 | 0 | 38 | |||||
Number of investments purchased | Investment | 0 | |||||||
CRE CLO Investments | ||||||||
Schedule Of Available For Sale Securities [Line Items] | ||||||||
Total cash consideration including selling costs and fees | $ 151,600,000 | |||||||
Number of investments sold | Investment | 11 | |||||||
Loss on sale of investments | $ (36,200,000) | |||||||
Available For Sale Securities | $ 751,400,000 | |||||||
CRE Debt Securities | ||||||||
Schedule Of Available For Sale Securities [Line Items] | ||||||||
Impairment of investment | $ 167,300,000 | $ 203,400,000 | ||||||
Aggregate face value of debt securities | $ 782,000,000 | |||||||
Proceeds from sale of debt securities, gross | 614,800,000 | |||||||
Payments on secured financing | 581,700,000 | 824,920,000 | $ 4,958,000 | |||||
Proceeds from sale of debt securities | 33,100,000 | |||||||
Aggregate losses from the sales | $ 167,300,000 | |||||||
Available For Sale Securities | $ 0 | $ 0 | $ 787,552,000 | |||||
[1] | The Company’s consolidated Total Assets and Total Liabilities at June 30, 2020 include assets and liabilities of variable interest entities (“VIEs”) of $2.3 billion and $1.8 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities at December 31, 2019 include assets and liabilities of VIEs of $2.2 billion and $1.8 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details |
Available-for-Sale Debt Secur_4
Available-for-Sale Debt Securities - Details of Amortized Cost, Fair Value and Impairment Charge of CRE Debt Securities (Details) $ in Thousands | Dec. 31, 2019USD ($) | |
Schedule Of Available For Sale Securities [Line Items] | ||
Face Amount | $ 786,349 | |
Unamortized Premium (Discount), net | 152 | |
Amortized Cost | 786,501 | |
Gross Unrealized Gain | 1,051 | |
Estimated Fair Value | 787,552 | [1] |
CRE CLO Investments | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Face Amount | 750,187 | |
Unamortized Premium (Discount), net | 207 | |
Amortized Cost | 750,394 | |
Gross 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 | |
Unamortized Premium (Discount), net | (55) | |
Amortized Cost | 36,107 | |
Gross Unrealized Gain | 45 | |
Estimated Fair Value | $ 36,152 | |
[1] | The Company’s consolidated Total Assets and Total Liabilities at June 30, 2020 include assets and liabilities of variable interest entities (“VIEs”) of $2.3 billion and $1.8 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities at December 31, 2019 include assets and liabilities of VIEs of $2.2 billion and $1.8 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details |
Available-for-Sale Debt Secur_5
Available-for-Sale Debt Securities - CRE Debt Securities by Contractual Maturity (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 | |
Estimated Fair Value | |||
Total investment in CRE debt securities, at amortized cost and estimated fair value | [1] | $ 787,552,000 | |
CRE Debt Securities | |||
Amortized Cost | |||
After one, within five years | 1,126,000 | ||
After five years | 785,375,000 | ||
Total investment in CRE debt securities, at amortized cost and estimated fair value | 786,501,000 | ||
Estimated Fair Value | |||
After one, within five years | 1,143,000 | ||
After five years | 786,409,000 | ||
Total investment in CRE debt securities, at amortized cost and estimated fair value | $ 0 | $ 787,552,000 | |
[1] | The Company’s consolidated Total Assets and Total Liabilities at June 30, 2020 include assets and liabilities of variable interest entities (“VIEs”) of $2.3 billion and $1.8 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities at December 31, 2019 include assets and liabilities of VIEs of $2.2 billion and $1.8 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details |
Variable Interest Entities an_3
Variable Interest Entities and Collateralized Loan Obligations - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020USD ($)Loan | Jun. 30, 2020USD ($)Loan | Dec. 31, 2019USD ($) | |
Variable Interest Entities And Collateralized Loan Obligation [Line Items] | |||
Number of mortgage loans originated or acquired | Loan | 0 | ||
FL3-Notes | |||
Variable Interest Entities And Collateralized Loan Obligation [Line Items] | |||
Cash available to acquire eligible assets | $ 100 | ||
FL3 Mortgage Assets | |||
Variable Interest Entities And Collateralized Loan Obligation [Line Items] | |||
Principal amount of mortgage assets issued | $ 5,800 | 163,100 | |
Net cash proceeds utilizing replenishment feature | 2,000 | 49,300 | |
Repayment of existing borrowings including accrued interest | 3,800 | 113,800 | |
Aggregate principal balance | $ 1,200,000 | $ 1,200,000 | |
Loans held for investment, aggregate unpaid principal balance percentage | 24.30% | 24.30% | |
Collateralized Loan Obligation | |||
Variable Interest Entities And Collateralized Loan Obligation [Line Items] | |||
Number of mortgage loans originated or acquired | Loan | 2 | ||
Principal amount of mortgage assets issued | $ 2,200,000 | ||
Percentage of loan investment portfolio collateralized | 42.50% | 42.50% | |
Unamortized issuance costs | $ 11,305 | $ 11,305 | $ 13,632 |
Collateralized Loan Obligation | FL3-Notes | |||
Variable Interest Entities And Collateralized Loan Obligation [Line Items] | |||
Debt issuance costs, gross | 7,800 | 7,800 | |
Unamortized issuance costs | 6,200 | 6,200 | |
Interest expense excluding amortization of deferred financing costs | 4,800 | 12,100 | |
Collateralized Loan Obligation | FL2-Notes | |||
Variable Interest Entities And Collateralized Loan Obligation [Line Items] | |||
Debt issuance costs, gross | 8,700 | 8,700 | |
Unamortized issuance costs | 5,000 | 5,000 | |
Interest expense excluding amortization of deferred financing costs | 4,000 | 10,000 | |
Collateralized Loan Obligation | FL2-Notes | |||
Variable Interest Entities And Collateralized Loan Obligation [Line Items] | |||
Principal amount of mortgage assets issued | 58,800 | 133,000 | |
Net cash proceeds utilizing replenishment feature | 20,500 | 65,600 | |
Repayment of existing borrowings including accrued interest | $ 38,300 | 67,400 | |
Cash available to acquire eligible assets | $ 81,200 |
Variable Interest Entities an_4
Variable Interest Entities and Collateralized Loan Obligations - Summary of Variable Interest Entities Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | |
ASSETS | |||
Cash and Cash Equivalents | [1] | $ 196,237 | $ 79,182 |
Accounts Receivable from Servicer/Trustee | [1] | 80,219 | 13,741 |
Loans Held for Investment | 4,988,568 | 4,980,389 | |
Total Assets | [1] | 5,296,304 | 5,892,870 |
Liabilities | |||
Accrued Interest Payable | [1] | 3,453 | 6,665 |
Collateralized Loan Obligations | [1] | 1,823,456 | 1,806,428 |
Payable to Affiliates | [1] | 11,025 | 9,520 |
Deferred Revenue | [1] | 149 | 164 |
Total Liabilities | [1] | 3,828,251 | 4,388,916 |
Variable Interest Entity, Primary Beneficiary | |||
ASSETS | |||
Cash and Cash Equivalents | 38,556 | 17,075 | |
Accounts Receivable from Servicer/Trustee | 80,206 | 1,464 | |
Accrued Interest Receivable | 1,434 | 2,178 | |
Loans Held for Investment | 2,162,296 | 2,229,034 | |
Total Assets | 2,282,492 | 2,249,751 | |
Liabilities | |||
Accrued Interest Payable | 1,412 | 2,512 | |
Accrued Expenses | 375 | 732 | |
Collateralized Loan Obligations | 1,823,456 | 1,821,128 | |
Payable to Affiliates | 4,620 | 4,620 | |
Deferred Revenue | 133 | ||
Total Liabilities | $ 1,829,996 | $ 1,828,992 | |
[1] | The Company’s consolidated Total Assets and Total Liabilities at June 30, 2020 include assets and liabilities of variable interest entities (“VIEs”) of $2.3 billion and $1.8 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities at December 31, 2019 include assets and liabilities of VIEs of $2.2 billion and $1.8 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details |
Variable Interest Entities an_5
Variable Interest Entities and Collateralized Loan Obligations - Schedule of Borrowings and Corresponding Collateral (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Debt, Carrying Value | [1] | $ 1,823,456 | $ 1,806,428 |
Collateralized Loan Obligation | |||
Debt Instrument [Line Items] | |||
Collateral (loans), Outstanding Principal | 2,150,472 | 2,229,034 | |
Collateral (loans), Carrying Value | 2,150,472 | 2,229,034 | |
Debt, Face Value | 1,834,761 | 1,834,761 | |
Debt, Carrying Value | $ 1,823,456 | $ 1,821,128 | |
[1] | The Company’s consolidated Total Assets and Total Liabilities at June 30, 2020 include assets and liabilities of variable interest entities (“VIEs”) of $2.3 billion and $1.8 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities at December 31, 2019 include assets and liabilities of VIEs of $2.2 billion and $1.8 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details |
Variable Interest Entities an_6
Variable Interest Entities and Collateralized Loan Obligations - Schedule of Weighted Average Spreads and Maturities for Loan Collateral and Borrowings (Details) - Collateralized Loan Obligation | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
TRTX 2018-FL2 | Collateral (Loan Investments) | ||
Debt Instrument [Line Items] | ||
Weighted Average Spread (%) | 3.69% | 3.82% |
Weighted Average Maturity (Years) | 4 years 6 months | 4 years 2 months 12 days |
TRTX 2018-FL2 | Debt (Notes Issued) | ||
Debt Instrument [Line Items] | ||
Weighted Average Spread (%) | 1.45% | 1.45% |
Weighted Average Maturity (Years) | 17 years 4 months 24 days | 17 years 10 months 24 days |
TRTX 2019-FL3 | Collateral (Loan Investments) | ||
Debt Instrument [Line Items] | ||
Weighted Average Spread (%) | 3.18% | 3.33% |
Weighted Average Maturity (Years) | 4 years 2 months 12 days | 4 years 1 month 6 days |
TRTX 2019-FL3 | Debt (Notes Issued) | ||
Debt Instrument [Line Items] | ||
Weighted Average Spread (%) | 1.44% | 1.44% |
Weighted Average Maturity (Years) | 14 years 3 months 18 days | 14 years 9 months 18 days |
Secured Revolving Repurchase _3
Secured Revolving Repurchase Agreements, Senior Secured and Secured Credit Agreements, and Asset-Specific Financing - Additional Information (Details) | Jun. 29, 2020USD ($) | Jun. 26, 2020USD ($) | May 28, 2020 | May 27, 2020 | May 04, 2020 | Apr. 02, 2020 | Apr. 01, 2020USD ($) | Mar. 31, 2020USD ($) | Jun. 30, 2020USD ($)Agreement | Dec. 31, 2019USD ($)Agreement | Jun. 28, 2020USD ($) | Jun. 25, 2020USD ($) | May 31, 2020USD ($) |
Debt Instrument [Line Items] | |||||||||||||
Aggregate of borrowings against investment portfolio | $ 170,900,000 | $ 0 | |||||||||||
Cash proceeds from bond sales | 89,800,000 | ||||||||||||
Unpaid margin calls | $ 19,000,000 | 0 | |||||||||||
Covenant tangible net worth | $ 1,100,000,000 | ||||||||||||
Covenants percentage of tangible assets on cash proceeds from equity issuances | 75.00% | ||||||||||||
Debt to equity covenant equity adjustment product of total indebtedness multiplication percentage | 25.00% | ||||||||||||
Covenant maximum debt equity ratio | 3.5 | 3.5 | |||||||||||
Asset-specific Financing | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Commitment amount/Asset-specific financing principal amount | $ 77,000,000 | $ 77,000,000 | |||||||||||
Series B Preferred Stock | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Covenant maximum debt equity ratio | 3 | ||||||||||||
Holdco | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Covenants percentage of tangible assets on cash proceeds from equity issuances | 75.00% | 75.00% | 75.00% | ||||||||||
Commercial Mortgage Loans | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Commitment amount/Asset-specific financing principal amount | $ 2,790,930,000 | 3,302,240,000 | |||||||||||
CRE Debt Securities | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Commitment amount/Asset-specific financing principal amount | 692,798,000 | ||||||||||||
Senior Secured and Secured Credit Agreements | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Commitment amount/Asset-specific financing principal amount | 360,000,000 | 660,000,000 | |||||||||||
Morgan Stanley | Commercial Mortgage Loans | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Commitment amount/Asset-specific financing principal amount | 500,000,000 | 500,000,000 | |||||||||||
Goldman Sachs | Commercial Mortgage Loans | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Commitment amount/Asset-specific financing principal amount | $ 250,000,000 | 750,000,000 | |||||||||||
Goldman Sachs | CRE Debt Securities | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Commitment amount/Asset-specific financing principal amount | $ 81,143,000 | ||||||||||||
Bank of America | Senior Secured and Secured Credit Agreements | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Option to extend maturity date | Sep. 29, 2021 | Sep. 29, 2021 | Sep. 29, 2020 | ||||||||||
Commitment amount/Asset-specific financing principal amount | $ 200,000,000 | $ 500,000,000 | |||||||||||
Recourse guarantee percentage | 25.00% | 25.00% | |||||||||||
Bank of America | Senior Secured and Secured Credit Agreements | Maximum [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Accordion option to increase the commitment amount | $ 500,000,000 | ||||||||||||
Bank of America | Senior Secured Credit Agreement | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Option to extend maturity date | Sep. 29, 2021 | ||||||||||||
Line of credit facility, maximum borrowing capacity | $ 200,000,000 | $ 500,000,000 | |||||||||||
Line of credit facility, increments in commitment amount | 50,000,000 | ||||||||||||
Line of credit facility commitment incremental facility limit | 500,000,000 | ||||||||||||
Line of credit facility, outstanding amount | $ 137,600,000 | ||||||||||||
Line of credit, spread on variable rate | 1.75% | ||||||||||||
Line of credit facility, initial maturity date | Sep. 29, 2021 | ||||||||||||
Bank of America | Senior Secured Credit Agreement | Holdco | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Recourse guarantee percentage | 25.00% | ||||||||||||
Citibank | Senior Secured and Secured Credit Agreements | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Option to extend maturity date | Jul. 12, 2020 | Jul. 12, 2020 | |||||||||||
Commitment amount/Asset-specific financing principal amount | $ 160,000,000 | ||||||||||||
Recourse guarantee percentage | 100.00% | 100.00% | |||||||||||
Index Rate | 1 Month LIBOR | ||||||||||||
Citibank | Secured Credit Agreement | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Line of credit facility, maximum borrowing capacity | $ 160,000,000 | ||||||||||||
Line of credit facility, outstanding amount | $ 0 | ||||||||||||
Line of credit facility, initial maturity date | Jul. 12, 2020 | ||||||||||||
Percentage of individual pledged assets | 70.00% | ||||||||||||
Individual pledged assets term | 90 days | ||||||||||||
Citibank | Secured Credit Agreement | LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Line of credit, spread on variable rate | 2.25% | ||||||||||||
Index Rate | one-month LIBOR | ||||||||||||
Citibank | Secured Credit Agreement | Holdco | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Recourse guarantee percentage | 100.00% | ||||||||||||
Institutional Lender | Asset-specific Financing | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Option to extend maturity date | Oct. 9, 2020 | Oct. 9, 2020 | |||||||||||
Commitment amount/Asset-specific financing principal amount | $ 77,000,000 | ||||||||||||
Institutional Lender | LIBOR | Asset-specific Financing | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Line of credit, spread on variable rate | 4.20% | ||||||||||||
Asset-specific Financing, Secured Revolving Repurchase Agreements and Senior Secured and Secured Credit Agreements | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Number of repurchase agreements | Agreement | 0 | 4 | |||||||||||
Asset-specific Financing, Secured Revolving Repurchase Agreements and Senior Secured and Secured Credit Agreements | Holdco | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Recourse guarantee percentage | 25.00% | 25.00% | |||||||||||
Asset-specific Financing, Secured Revolving Repurchase Agreements and Senior Secured and Secured Credit Agreements | CRE CLO Investments | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Number of repurchase agreements | Agreement | 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 | ||||||||||||
Repurchase Agreements | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Number of repurchase agreements | Agreement | 6 | 6 | |||||||||||
Commitment amount/Asset-specific financing principal amount | $ 3,995,038,000 | ||||||||||||
Repurchase Agreements | Holdco | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Recourse guarantee percentage | 25.00% | 100.00% | |||||||||||
Repurchase Agreements | Commercial Mortgage Loans | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Number of repurchase agreements | Agreement | 62 | 60 | |||||||||||
Repurchase Agreements | CRE Debt Securities | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Commitment amount/Asset-specific financing principal amount | $ 692,798,000 | ||||||||||||
Repurchase Agreements | CRE Debt Securities | Holdco | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Recourse guarantee percentage | 100.00% | ||||||||||||
Repurchase Agreements | Morgan Stanley | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Option to extend maturity date | May 4, 2021 | ||||||||||||
Repurchase Agreements | Goldman Sachs | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Option to extend maturity date | Aug. 19, 2021 | ||||||||||||
Commitment amount/Asset-specific financing principal amount | $ 250,000,000 | $ 750,000,000 | |||||||||||
Repurchase Agreements | Goldman Sachs | CRE Debt Securities | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Option to extend maturity date | Jan. 12, 2020 | ||||||||||||
Recourse guarantee percentage | 100.00% | ||||||||||||
Repurchase Agreements | Goldman Sachs | Maximum [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Accordion option to increase the commitment amount | $ 500,000,000 |
Summary of Secured Revolving Re
Summary of Secured Revolving Repurchase Agreements, Senior Secured and Secured Credit Agreements, and Asset-Specific Financings (Details) - USD ($) $ in Thousands | Jun. 29, 2020 | Jun. 26, 2020 | May 04, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 28, 2020 | Jun. 25, 2020 |
Asset-specific Financing | |||||||
Debt Instrument [Line Items] | |||||||
Commitment Amount | $ 77,000 | $ 77,000 | |||||
Balance Outstanding | 77,000 | 77,000 | |||||
Principal Balance of Collateral | 112,000 | 112,000 | |||||
Amortized Cost of Collateral | 111,799 | 111,436 | |||||
Senior Secured and Secured Credit Agreements | |||||||
Debt Instrument [Line Items] | |||||||
Commitment Amount | 360,000 | 660,000 | |||||
Maximum Current Availability | 222,442 | 514,363 | |||||
Balance Outstanding | 137,558 | 145,637 | |||||
Principal Balance of Collateral | 183,411 | 182,882 | |||||
Amortized Cost of Collateral | 183,411 | 182,882 | |||||
Repurchase Agreements | |||||||
Debt Instrument [Line Items] | |||||||
Commitment Amount | 3,995,038 | ||||||
Maximum Current Availability | 1,680,621 | ||||||
Balance Outstanding | 2,314,417 | ||||||
Principal Balance of Collateral | 3,218,156 | ||||||
Amortized Cost of Collateral | 3,203,256 | ||||||
Asset-specific Financing, Secured Revolving Repurchase Agreements and Senior Secured and Secured Credit Agreements | |||||||
Debt Instrument [Line Items] | |||||||
Commitment Amount | 3,227,930 | 4,732,038 | |||||
Maximum Current Availability | 1,294,691 | 2,194,984 | |||||
Balance Outstanding | 1,933,239 | 2,537,054 | |||||
Principal Balance of Collateral | 2,885,215 | 3,513,038 | |||||
Amortized Cost of Collateral | 2,871,653 | $ 3,497,574 | |||||
Loans Investment | Repurchase Agreements | |||||||
Debt Instrument [Line Items] | |||||||
Index Rate | 1 Month LIBOR | ||||||
Commitment Amount | 2,790,930 | $ 3,302,240 | |||||
Maximum Current Availability | 1,072,249 | 1,680,621 | |||||
Balance Outstanding | 1,718,681 | 1,621,619 | |||||
Principal Balance of Collateral | 2,589,804 | 2,418,269 | |||||
Amortized Cost of Collateral | $ 2,576,443 | 2,402,148 | |||||
CRE Debt Securities | |||||||
Debt Instrument [Line Items] | |||||||
Commitment Amount | 692,798 | ||||||
CRE Debt Securities | Repurchase Agreements | |||||||
Debt Instrument [Line Items] | |||||||
Commitment Amount | 692,798 | ||||||
Balance Outstanding | 692,798 | ||||||
Principal Balance of Collateral | 799,887 | ||||||
Amortized Cost of Collateral | $ 801,108 | ||||||
Institutional Lender | Asset-specific Financing | |||||||
Debt Instrument [Line Items] | |||||||
Initial Maturity Date | Oct. 9, 2020 | Oct. 9, 2020 | |||||
Extended Maturity Date | Oct. 9, 2020 | Oct. 9, 2020 | |||||
Commitment Amount | $ 77,000 | ||||||
Institutional Lender | Debt Instrument, Interest Rate at 4.3% | Asset-specific Financing | |||||||
Debt Instrument [Line Items] | |||||||
Initial Maturity Date | Oct. 9, 2020 | ||||||
Extended Maturity Date | Oct. 9, 2020 | ||||||
Index Rate | 1 Month LIBOR | ||||||
Weighted Average Credit Spread | 4.20% | ||||||
Interest Rate | 4.30% | ||||||
Commitment Amount | $ 77,000 | ||||||
Balance Outstanding | 77,000 | ||||||
Principal Balance of Collateral | 112,000 | ||||||
Amortized Cost of Collateral | $ 111,799 | ||||||
Institutional Lender | Debt Instrument, Interest Rate at 5.9% | Asset-specific Financing | |||||||
Debt Instrument [Line Items] | |||||||
Initial Maturity Date | Oct. 9, 2020 | ||||||
Extended Maturity Date | Oct. 9, 2020 | ||||||
Index Rate | 1 Month LIBOR | ||||||
Weighted Average Credit Spread | 4.20% | ||||||
Interest Rate | 5.90% | ||||||
Commitment Amount | $ 77,000 | ||||||
Balance Outstanding | 77,000 | ||||||
Principal Balance of Collateral | 112,000 | ||||||
Amortized Cost of Collateral | $ 111,436 | ||||||
Goldman Sachs | Repurchase Agreements | |||||||
Debt Instrument [Line Items] | |||||||
Initial Maturity Date | Aug. 19, 2021 | ||||||
Commitment Amount | $ 250,000 | $ 750,000 | |||||
Goldman Sachs | Debt Instrument, Interest Rate at 2.9% | Repurchase Agreements | |||||||
Debt Instrument [Line Items] | |||||||
Initial Maturity Date | Aug. 19, 2021 | ||||||
Extended Maturity Date | Aug. 19, 2022 | ||||||
Index Rate | 1 Month LIBOR | ||||||
Weighted Average Credit Spread | 2.70% | ||||||
Interest Rate | 2.90% | ||||||
Commitment Amount | $ 250,000 | ||||||
Maximum Current Availability | 119,145 | ||||||
Balance Outstanding | 130,855 | ||||||
Principal Balance of Collateral | 253,285 | ||||||
Amortized Cost of Collateral | $ 252,201 | ||||||
Goldman Sachs | Debt Instrument, Interest Rate at 3.5% | Repurchase Agreements | |||||||
Debt Instrument [Line Items] | |||||||
Initial Maturity Date | Aug. 19, 2020 | ||||||
Extended Maturity Date | Aug. 19, 2022 | ||||||
Index Rate | 1 Month LIBOR | ||||||
Weighted Average Credit Spread | 1.80% | ||||||
Interest Rate | 3.50% | ||||||
Commitment Amount | $ 750,000 | ||||||
Maximum Current Availability | 704,563 | ||||||
Balance Outstanding | 45,437 | ||||||
Principal Balance of Collateral | 288,032 | ||||||
Amortized Cost of Collateral | $ 285,962 | ||||||
Goldman Sachs | Loans Investment | Repurchase Agreements | |||||||
Debt Instrument [Line Items] | |||||||
Initial Maturity Date | Aug. 19, 2021 | Aug. 19, 2020 | |||||
Extended Maturity Date | Aug. 19, 2022 | Aug. 19, 2022 | |||||
Goldman Sachs | CRE Debt Securities | |||||||
Debt Instrument [Line Items] | |||||||
Commitment Amount | $ 81,143 | ||||||
Goldman Sachs | CRE Debt Securities | Repurchase Agreements | |||||||
Debt Instrument [Line Items] | |||||||
Initial Maturity Date | Jan. 12, 2020 | ||||||
Extended Maturity Date | Jan. 12, 2020 | ||||||
Goldman Sachs | CRE Debt Securities | Debt Instrument, Interest Rate at 2.7% | Repurchase Agreements | |||||||
Debt Instrument [Line Items] | |||||||
Initial Maturity Date | Jan. 12, 2020 | ||||||
Extended Maturity Date | Jan. 12, 2020 | ||||||
Index Rate | 1 Month LIBOR | ||||||
Weighted Average Credit Spread | 0.90% | ||||||
Interest Rate | 2.70% | ||||||
Commitment Amount | $ 81,143 | ||||||
Balance Outstanding | 81,143 | ||||||
Principal Balance of Collateral | 94,629 | ||||||
Amortized Cost of Collateral | $ 94,644 | ||||||
Barclays | Debt Instrument, Interest Rate at 1.7% | Repurchase Agreements | |||||||
Debt Instrument [Line Items] | |||||||
Initial Maturity Date | Aug. 13, 2022 | ||||||
Extended Maturity Date | Aug. 13, 2022 | ||||||
Index Rate | 1 Month LIBOR | ||||||
Weighted Average Credit Spread | 1.50% | ||||||
Interest Rate | 1.70% | ||||||
Commitment Amount | $ 750,000 | ||||||
Maximum Current Availability | 199,826 | ||||||
Balance Outstanding | 550,174 | ||||||
Principal Balance of Collateral | 750,619 | ||||||
Amortized Cost of Collateral | $ 748,743 | ||||||
Barclays | Debt Instrument, Interest Rate at 3.3% | Repurchase Agreements | |||||||
Debt Instrument [Line Items] | |||||||
Initial Maturity Date | Aug. 13, 2022 | ||||||
Extended Maturity Date | Aug. 13, 2022 | ||||||
Index Rate | 1 Month LIBOR | ||||||
Weighted Average Credit Spread | 1.50% | ||||||
Interest Rate | 3.30% | ||||||
Commitment Amount | $ 750,000 | ||||||
Maximum Current Availability | 318,240 | ||||||
Balance Outstanding | 431,760 | ||||||
Principal Balance of Collateral | 542,927 | ||||||
Amortized Cost of Collateral | $ 540,725 | ||||||
Barclays | Loans Investment | Repurchase Agreements | |||||||
Debt Instrument [Line Items] | |||||||
Initial Maturity Date | Aug. 13, 2022 | Aug. 13, 2022 | |||||
Extended Maturity Date | Aug. 13, 2022 | Aug. 13, 2022 | |||||
Wells Fargo | Debt Instrument, Interest Rate at 1.9% | Repurchase Agreements | |||||||
Debt Instrument [Line Items] | |||||||
Initial Maturity Date | Apr. 18, 2022 | ||||||
Extended Maturity Date | Apr. 18, 2022 | ||||||
Index Rate | 1 Month LIBOR | ||||||
Weighted Average Credit Spread | 1.80% | ||||||
Interest Rate | 1.90% | ||||||
Commitment Amount | $ 750,000 | ||||||
Maximum Current Availability | 396,129 | ||||||
Balance Outstanding | 353,871 | ||||||
Principal Balance of Collateral | 535,619 | ||||||
Amortized Cost of Collateral | $ 533,092 | ||||||
Wells Fargo | Debt Instrument, Interest Rate at 3.6% | Repurchase Agreements | |||||||
Debt Instrument [Line Items] | |||||||
Initial Maturity Date | Apr. 18, 2022 | ||||||
Extended Maturity Date | Apr. 18, 2022 | ||||||
Index Rate | 1 Month LIBOR | ||||||
Weighted Average Credit Spread | 1.80% | ||||||
Interest Rate | 3.60% | ||||||
Commitment Amount | $ 750,000 | ||||||
Maximum Current Availability | 355,372 | ||||||
Balance Outstanding | 394,628 | ||||||
Principal Balance of Collateral | 593,742 | ||||||
Amortized Cost of Collateral | $ 591,238 | ||||||
Wells Fargo | Loans Investment | Repurchase Agreements | |||||||
Debt Instrument [Line Items] | |||||||
Initial Maturity Date | Apr. 18, 2022 | Apr. 18, 2022 | |||||
Extended Maturity Date | Apr. 18, 2022 | Apr. 18, 2022 | |||||
Wells Fargo | CRE Debt Securities | |||||||
Debt Instrument [Line Items] | |||||||
Commitment Amount | $ 135,774 | ||||||
Wells Fargo | CRE Debt Securities | Repurchase Agreements | |||||||
Debt Instrument [Line Items] | |||||||
Initial Maturity Date | Jan. 16, 2020 | ||||||
Extended Maturity Date | Jan. 16, 2020 | ||||||
Wells Fargo | CRE Debt Securities | Debt Instrument, Interest Rate at 2.7% | Repurchase Agreements | |||||||
Debt Instrument [Line Items] | |||||||
Initial Maturity Date | Jan. 16, 2020 | ||||||
Extended Maturity Date | Jan. 16, 2020 | ||||||
Index Rate | 1 Month LIBOR | ||||||
Weighted Average Credit Spread | 1.00% | ||||||
Interest Rate | 2.70% | ||||||
Commitment Amount | $ 135,774 | ||||||
Balance Outstanding | 135,774 | ||||||
Principal Balance of Collateral | 161,153 | ||||||
Amortized Cost of Collateral | $ 161,384 | ||||||
Morgan Stanley | Repurchase Agreements | |||||||
Debt Instrument [Line Items] | |||||||
Initial Maturity Date | May 4, 2021 | ||||||
Morgan Stanley | Debt Instrument, Interest Rate at 2.0% | Repurchase Agreements | |||||||
Debt Instrument [Line Items] | |||||||
Initial Maturity Date | May 4, 2021 | ||||||
Index Rate | 1 Month LIBOR | ||||||
Weighted Average Credit Spread | 1.80% | ||||||
Interest Rate | 2.00% | ||||||
Commitment Amount | $ 500,000 | ||||||
Maximum Current Availability | 91,083 | ||||||
Balance Outstanding | 408,917 | ||||||
Principal Balance of Collateral | 596,590 | ||||||
Amortized Cost of Collateral | $ 593,951 | ||||||
Morgan Stanley | Debt Instrument, Interest Rate at 3.6% | Repurchase Agreements | |||||||
Debt Instrument [Line Items] | |||||||
Initial Maturity Date | May 4, 2020 | ||||||
Index Rate | 1 Month LIBOR | ||||||
Weighted Average Credit Spread | 1.90% | ||||||
Interest Rate | 3.60% | ||||||
Commitment Amount | $ 500,000 | ||||||
Maximum Current Availability | 105,253 | ||||||
Balance Outstanding | 394,747 | ||||||
Principal Balance of Collateral | 519,638 | ||||||
Amortized Cost of Collateral | $ 515,984 | ||||||
Morgan Stanley | Loans Investment | Repurchase Agreements | |||||||
Debt Instrument [Line Items] | |||||||
Initial Maturity Date | May 4, 2021 | May 4, 2020 | |||||
JP Morgan | Debt Instrument, Interest Rate at 1.7% | Repurchase Agreements | |||||||
Debt Instrument [Line Items] | |||||||
Initial Maturity Date | Aug. 20, 2021 | ||||||
Extended Maturity Date | Aug. 20, 2023 | ||||||
Index Rate | 1 Month LIBOR | ||||||
Weighted Average Credit Spread | 1.60% | ||||||
Interest Rate | 1.70% | ||||||
Commitment Amount | $ 400,000 | ||||||
Maximum Current Availability | 194,720 | ||||||
Balance Outstanding | 205,280 | ||||||
Principal Balance of Collateral | 354,286 | ||||||
Amortized Cost of Collateral | $ 349,402 | ||||||
JP Morgan | Debt Instrument, Interest Rate at 3.3% | Repurchase Agreements | |||||||
Debt Instrument [Line Items] | |||||||
Initial Maturity Date | Aug. 20, 2021 | ||||||
Extended Maturity Date | Aug. 20, 2023 | ||||||
Index Rate | 1 Month LIBOR | ||||||
Weighted Average Credit Spread | 1.60% | ||||||
Interest Rate | 3.30% | ||||||
Commitment Amount | $ 400,000 | ||||||
Maximum Current Availability | 181,552 | ||||||
Balance Outstanding | 218,448 | ||||||
Principal Balance of Collateral | 300,677 | ||||||
Amortized Cost of Collateral | $ 295,341 | ||||||
JP Morgan | Loans Investment | Repurchase Agreements | |||||||
Debt Instrument [Line Items] | |||||||
Initial Maturity Date | Aug. 20, 2021 | Aug. 20, 2021 | |||||
Extended Maturity Date | Aug. 20, 2023 | Aug. 20, 2023 | |||||
JP Morgan | CRE Debt Securities | |||||||
Debt Instrument [Line Items] | |||||||
Commitment Amount | $ 475,881 | ||||||
JP Morgan | CRE Debt Securities | Repurchase Agreements | |||||||
Debt Instrument [Line Items] | |||||||
Initial Maturity Date | Jan. 17, 2020 | ||||||
Extended Maturity Date | Jan. 17, 2020 | ||||||
JP Morgan | CRE Debt Securities | Debt Instrument, Interest Rate at 2.6% | Repurchase Agreements | |||||||
Debt Instrument [Line Items] | |||||||
Initial Maturity Date | Jan. 17, 2020 | ||||||
Extended Maturity Date | Jan. 17, 2020 | ||||||
Index Rate | 1 Month LIBOR | ||||||
Weighted Average Credit Spread | 0.90% | ||||||
Interest Rate | 2.60% | ||||||
Commitment Amount | $ 475,881 | ||||||
Balance Outstanding | 475,881 | ||||||
Principal Balance of Collateral | 544,105 | ||||||
Amortized Cost of Collateral | $ 545,080 | ||||||
US Bank | Debt Instrument, Interest Rate at 1.7% | Repurchase Agreements | |||||||
Debt Instrument [Line Items] | |||||||
Initial Maturity Date | Jul. 9, 2022 | ||||||
Extended Maturity Date | Jul. 9, 2024 | ||||||
Index Rate | 1 Month LIBOR | ||||||
Weighted Average Credit Spread | 1.50% | ||||||
Interest Rate | 1.70% | ||||||
Commitment Amount | $ 140,930 | ||||||
Maximum Current Availability | 71,346 | ||||||
Balance Outstanding | 69,584 | ||||||
Principal Balance of Collateral | 99,405 | ||||||
Amortized Cost of Collateral | $ 99,054 | ||||||
US Bank | Debt Instrument, Interest Rate at 3.6% | Repurchase Agreements | |||||||
Debt Instrument [Line Items] | |||||||
Initial Maturity Date | Jul. 9, 2022 | ||||||
Extended Maturity Date | Jul. 9, 2024 | ||||||
Index Rate | 1 Month LIBOR | ||||||
Weighted Average Credit Spread | 1.80% | ||||||
Interest Rate | 3.60% | ||||||
Commitment Amount | $ 152,240 | ||||||
Maximum Current Availability | 15,641 | ||||||
Balance Outstanding | 136,599 | ||||||
Principal Balance of Collateral | 173,253 | ||||||
Amortized Cost of Collateral | $ 172,898 | ||||||
US Bank | Loans Investment | Repurchase Agreements | |||||||
Debt Instrument [Line Items] | |||||||
Initial Maturity Date | Jul. 9, 2022 | Jul. 9, 2022 | |||||
Extended Maturity Date | Jul. 9, 2024 | Jul. 9, 2024 | |||||
Bank of America | Senior Secured and Secured Credit Agreements | |||||||
Debt Instrument [Line Items] | |||||||
Initial Maturity Date | Sep. 29, 2021 | Sep. 29, 2021 | Sep. 29, 2020 | ||||
Extended Maturity Date | Sep. 29, 2022 | Sep. 29, 2020 | |||||
Commitment Amount | $ 200,000 | $ 500,000 | |||||
Bank of America | Debt Instrument, Interest Rate at 1.9% | Senior Secured and Secured Credit Agreements | |||||||
Debt Instrument [Line Items] | |||||||
Initial Maturity Date | Sep. 29, 2021 | ||||||
Extended Maturity Date | Sep. 29, 2022 | ||||||
Index Rate | 1 Month LIBOR | ||||||
Weighted Average Credit Spread | 1.80% | ||||||
Interest Rate | 1.90% | ||||||
Commitment Amount | $ 200,000 | ||||||
Maximum Current Availability | 62,442 | ||||||
Balance Outstanding | 137,558 | ||||||
Principal Balance of Collateral | 183,411 | ||||||
Amortized Cost of Collateral | $ 183,411 | ||||||
Bank of America | Debt Instrument, Interest Rate at 3.8% | Senior Secured and Secured Credit Agreements | |||||||
Debt Instrument [Line Items] | |||||||
Initial Maturity Date | Sep. 29, 2020 | ||||||
Extended Maturity Date | Sep. 29, 2020 | ||||||
Index Rate | 1 Month LIBOR | ||||||
Weighted Average Credit Spread | 1.80% | ||||||
Interest Rate | 3.80% | ||||||
Commitment Amount | $ 500,000 | ||||||
Maximum Current Availability | 354,363 | ||||||
Balance Outstanding | 145,637 | ||||||
Principal Balance of Collateral | 182,882 | ||||||
Amortized Cost of Collateral | $ 182,882 | ||||||
Citibank | Senior Secured and Secured Credit Agreements | |||||||
Debt Instrument [Line Items] | |||||||
Initial Maturity Date | Jul. 12, 2020 | Jul. 12, 2020 | |||||
Extended Maturity Date | Jul. 12, 2020 | Jul. 12, 2020 | |||||
Index Rate | 1 Month LIBOR | ||||||
Weighted Average Credit Spread | 2.30% | ||||||
Commitment Amount | $ 160,000 | ||||||
Maximum Current Availability | $ 160,000 | ||||||
Citibank | Debt Instrument, Interest Rate at 4.1% | Senior Secured and Secured Credit Agreements | |||||||
Debt Instrument [Line Items] | |||||||
Initial Maturity Date | Jul. 12, 2020 | ||||||
Extended Maturity Date | Jul. 12, 2020 | ||||||
Index Rate | 1 Month LIBOR | ||||||
Weighted Average Credit Spread | 2.30% | ||||||
Interest Rate | 4.10% | ||||||
Commitment Amount | $ 160,000 | ||||||
Maximum Current Availability | $ 160,000 |
Summary of Secured Revolving _2
Summary of Secured Revolving Repurchase Agreements, Senior Secured and Secured Credit Agreements, and Asset-Specific Financings (Parenthetical) (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Asset-specific Financing, Secured Revolving Repurchase Agreements and Senior Secured and Secured Credit Agreements | Holdco | ||
Debt Instrument [Line Items] | ||
Recourse guarantee percentage | 25.00% | 25.00% |
Secured Credit Agreement | ||
Debt Instrument [Line Items] | ||
Recourse guarantee percentage | 100.00% | |
Secured Credit Agreement | CRE Debt Securities | ||
Debt Instrument [Line Items] | ||
Recourse guarantee percentage | 100.00% | |
Repurchase Agreements | Holdco | ||
Debt Instrument [Line Items] | ||
Recourse guarantee percentage | 25.00% | 100.00% |
Repurchase Agreements | Holdco | CRE Debt Securities | ||
Debt Instrument [Line Items] | ||
Recourse guarantee percentage | 100.00% |
Summary of Recourse and Market-
Summary of Recourse and Market-to-Market Provisions (Details) | Jun. 29, 2020 | Jun. 26, 2020 | May 04, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Goldman Sachs | Repurchase Agreements | |||||
Debt Instrument [Line Items] | |||||
Initial Maturity Date | Aug. 19, 2021 | ||||
Goldman Sachs | Repurchase Agreements | Loans Investment | |||||
Debt Instrument [Line Items] | |||||
Initial Maturity Date | Aug. 19, 2021 | Aug. 19, 2020 | |||
Extended Maturity Date | Aug. 19, 2022 | Aug. 19, 2022 | |||
Recourse Percentage | 25.00% | 25.00% | |||
Goldman Sachs | Repurchase Agreements | CRE Debt Securities | |||||
Debt Instrument [Line Items] | |||||
Initial Maturity Date | Jan. 12, 2020 | ||||
Extended Maturity Date | Jan. 12, 2020 | ||||
Recourse Percentage | 100.00% | ||||
Wells Fargo | Repurchase Agreements | Loans Investment | |||||
Debt Instrument [Line Items] | |||||
Initial Maturity Date | Apr. 18, 2022 | Apr. 18, 2022 | |||
Extended Maturity Date | Apr. 18, 2022 | Apr. 18, 2022 | |||
Recourse Percentage | 25.00% | 25.00% | |||
Wells Fargo | Repurchase Agreements | CRE Debt Securities | |||||
Debt Instrument [Line Items] | |||||
Initial Maturity Date | Jan. 16, 2020 | ||||
Extended Maturity Date | Jan. 16, 2020 | ||||
Recourse Percentage | 100.00% | ||||
Barclays | Repurchase Agreements | Loans Investment | |||||
Debt Instrument [Line Items] | |||||
Initial Maturity Date | Aug. 13, 2022 | Aug. 13, 2022 | |||
Extended Maturity Date | Aug. 13, 2022 | Aug. 13, 2022 | |||
Recourse Percentage | 25.00% | 25.00% | |||
Morgan Stanley | Repurchase Agreements | |||||
Debt Instrument [Line Items] | |||||
Initial Maturity Date | May 4, 2021 | ||||
Morgan Stanley | Repurchase Agreements | Loans Investment | |||||
Debt Instrument [Line Items] | |||||
Initial Maturity Date | May 4, 2021 | May 4, 2020 | |||
Recourse Percentage | 25.00% | 25.00% | |||
JP Morgan | Repurchase Agreements | Loans Investment | |||||
Debt Instrument [Line Items] | |||||
Initial Maturity Date | Aug. 20, 2021 | Aug. 20, 2021 | |||
Extended Maturity Date | Aug. 20, 2023 | Aug. 20, 2023 | |||
Recourse Percentage | 25.00% | 25.00% | |||
JP Morgan | Repurchase Agreements | CRE Debt Securities | |||||
Debt Instrument [Line Items] | |||||
Initial Maturity Date | Jan. 17, 2020 | ||||
Extended Maturity Date | Jan. 17, 2020 | ||||
Recourse Percentage | 100.00% | ||||
US Bank | Repurchase Agreements | Loans Investment | |||||
Debt Instrument [Line Items] | |||||
Initial Maturity Date | Jul. 9, 2022 | Jul. 9, 2022 | |||
Extended Maturity Date | Jul. 9, 2024 | Jul. 9, 2024 | |||
Recourse Percentage | 25.00% | 25.00% | |||
Bank of America | Senior Secured and Secured Credit Agreements | |||||
Debt Instrument [Line Items] | |||||
Initial Maturity Date | Sep. 29, 2021 | Sep. 29, 2021 | Sep. 29, 2020 | ||
Extended Maturity Date | Sep. 29, 2022 | Sep. 29, 2020 | |||
Recourse Percentage | 25.00% | 25.00% | |||
Citibank | Senior Secured and Secured Credit Agreements | |||||
Debt Instrument [Line Items] | |||||
Initial Maturity Date | Jul. 12, 2020 | Jul. 12, 2020 | |||
Extended Maturity Date | Jul. 12, 2020 | Jul. 12, 2020 | |||
Recourse Percentage | 100.00% | 100.00% | |||
Institutional Lender | Asset-specific Financing | |||||
Debt Instrument [Line Items] | |||||
Initial Maturity Date | Oct. 9, 2020 | Oct. 9, 2020 | |||
Extended Maturity Date | Oct. 9, 2020 | Oct. 9, 2020 | |||
Royal Bank Of Canada | Repurchase Agreements | CRE Debt Securities | |||||
Debt Instrument [Line Items] | |||||
Recourse Percentage | 100.00% |
Summary of Repurchase Agreement
Summary of Repurchase Agreements Secured by Commercial Mortgage Loans, CRE Debt Securities and Counterparty Concentration (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Commercial Mortgage Loans | ||
Repurchase Agreement Counterparty [Line Items] | ||
Commitment Amount | $ 2,790,930 | $ 3,302,240 |
UPB of Collateral | 2,589,804 | 2,418,757 |
Amortized Cost of Collateral | 2,587,910 | 2,415,038 |
Amounts Payable under Secured Revolving Repurchase Agreements | 1,719,772 | 1,624,172 |
Net Counterparty Exposure | $ 868,138 | $ 790,866 |
Days to Extended Maturity | 838 days | 1062 days |
CRE Debt Securities | ||
Repurchase Agreement Counterparty [Line Items] | ||
Commitment Amount | $ 692,798 | |
UPB of Collateral | 799,887 | |
Amortized Cost of Collateral | 803,412 | |
Amounts Payable under Secured Revolving Repurchase Agreements | 693,690 | |
Net Counterparty Exposure | $ 109,722 | |
Days to Extended Maturity | 16 days | |
Commercial Mortgage Loans and CRE Debt Securities | ||
Repurchase Agreement Counterparty [Line Items] | ||
Commitment Amount | $ 3,995,038 | |
UPB of Collateral | 3,218,644 | |
Amortized Cost of Collateral | 3,218,450 | |
Amounts Payable under Secured Revolving Repurchase Agreements | 2,317,862 | |
Net Counterparty Exposure | $ 900,588 | |
Days to Extended Maturity | 685 days | |
Wells Fargo | Commercial Mortgage Loans | ||
Repurchase Agreement Counterparty [Line Items] | ||
Commitment Amount | $ 750,000 | $ 750,000 |
UPB of Collateral | 535,619 | 593,742 |
Amortized Cost of Collateral | 537,394 | 594,832 |
Amounts Payable under Secured Revolving Repurchase Agreements | 354,301 | 395,039 |
Net Counterparty Exposure | $ 183,093 | $ 199,793 |
Percent of Stockholders' Equity | 12.50% | 13.60% |
Days to Extended Maturity | 657 days | 839 days |
Wells Fargo | CRE Debt Securities | ||
Repurchase Agreement Counterparty [Line Items] | ||
Commitment Amount | $ 135,774 | |
UPB of Collateral | 161,153 | |
Amortized Cost 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 | |
Barclays | Commercial Mortgage Loans | ||
Repurchase Agreement Counterparty [Line Items] | ||
Commitment Amount | $ 750,000 | $ 750,000 |
UPB of Collateral | 750,619 | 542,927 |
Amortized Cost of Collateral | 749,432 | 542,191 |
Amounts Payable under Secured Revolving Repurchase Agreements | 550,535 | 432,399 |
Net Counterparty Exposure | $ 198,897 | $ 109,792 |
Percent of Stockholders' Equity | 13.50% | 7.50% |
Days to Extended Maturity | 774 days | 956 days |
Morgan Stanley Bank | Commercial Mortgage Loans | ||
Repurchase Agreement Counterparty [Line Items] | ||
Commitment Amount | $ 500,000 | $ 500,000 |
UPB of Collateral | 596,590 | 519,638 |
Amortized Cost of Collateral | 595,513 | 518,048 |
Amounts Payable under Secured Revolving Repurchase Agreements | 409,004 | 395,356 |
Net Counterparty Exposure | $ 186,509 | $ 122,692 |
Percent of Stockholders' Equity | 12.70% | 8.40% |
US Bank | Commercial Mortgage Loans | ||
Repurchase Agreement Counterparty [Line Items] | ||
Commitment Amount | $ 140,930 | $ 152,240 |
UPB of Collateral | 99,405 | 173,741 |
Amortized Cost of Collateral | 99,012 | 173,045 |
Amounts Payable under Secured Revolving Repurchase Agreements | 69,652 | 136,734 |
Net Counterparty Exposure | $ 29,360 | $ 36,311 |
Percent of Stockholders' Equity | 2.00% | 2.50% |
Days to Extended Maturity | 1470 days | 1652 days |
Goldman Sachs | Commercial Mortgage Loans | ||
Repurchase Agreement Counterparty [Line Items] | ||
Commitment Amount | $ 250,000 | $ 750,000 |
UPB of Collateral | 253,285 | 288,032 |
Amortized Cost of Collateral | 254,757 | 289,674 |
Amounts Payable under Secured Revolving Repurchase Agreements | 130,945 | 45,900 |
Net Counterparty Exposure | $ 123,812 | $ 243,774 |
Percent of Stockholders' Equity | 8.40% | 16.60% |
Days to Extended Maturity | 780 days | 962 days |
Goldman Sachs | CRE Debt Securities | ||
Repurchase Agreement Counterparty [Line Items] | ||
Commitment Amount | $ 81,143 | |
UPB of Collateral | 94,629 | |
Amortized Cost of Collateral | 108,414 | |
Amounts Payable under Secured Revolving Repurchase Agreements | 81,362 | |
Net Counterparty Exposure | $ 27,052 | |
Percent of Stockholders' Equity | 1.80% | |
Days to Extended Maturity | 12 days | |
JP Morgan | Commercial Mortgage Loans | ||
Repurchase Agreement Counterparty [Line Items] | ||
Commitment Amount | $ 400,000 | $ 400,000 |
UPB of Collateral | 354,286 | 300,677 |
Amortized Cost of Collateral | 351,802 | 297,248 |
Amounts Payable under Secured Revolving Repurchase Agreements | 205,335 | 218,744 |
Net Counterparty Exposure | $ 146,467 | $ 78,504 |
Percent of Stockholders' Equity | 10.00% | 5.40% |
Days to Extended Maturity | 1146 days | 1328 days |
JP Morgan | CRE Debt Securities | ||
Repurchase Agreement Counterparty [Line Items] | ||
Commitment Amount | $ 475,881 | |
UPB of Collateral | 544,105 | |
Amortized Cost 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 |
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 | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | ||
Repurchase Agreement Counterparty [Line Items] | |||
Accrued Interest Payable | [1] | $ 3,453 | $ 6,665 |
Commercial Mortgage Loans | |||
Repurchase Agreement Counterparty [Line Items] | |||
Interest receivable | 11,500 | 13,000 | |
Premium, discount and origination fees | 13,400 | 16,700 | |
Accrued Interest Payable | 1,100 | 2,500 | |
Unamortized deferred financing fees | $ 9,700 | 10,300 | |
CRE Debt Securities | |||
Repurchase Agreement Counterparty [Line Items] | |||
Interest receivable | 2,300 | ||
Premium, discount and origination fees | 1,200 | ||
Accrued Interest Payable | $ 900 | ||
[1] | The Company’s consolidated Total Assets and Total Liabilities at June 30, 2020 include assets and liabilities of variable interest entities (“VIEs”) of $2.3 billion and $1.8 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities at December 31, 2019 include assets and liabilities of VIEs of $2.2 billion and $1.8 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details |
Schedule of Key Terms of Financ
Schedule of Key Terms of Financial Covenants Before and After Modification (Details) | May 28, 2020 | May 27, 2020 |
Cash Liquidity | ||
Debt Instrument [Line Items] | ||
Financial Covenant description | Minimum cash liquidity of no less than the greater of: $10.0 million; and 5.0% of Holdco’s recourse indebtedness | Minimum cash liquidity of no less than the greater of: $10.0 million; and 5.0% of Holdco’s recourse indebtedness |
Tangible Net Worth | ||
Debt Instrument [Line Items] | ||
Financial Covenant description | $1.1 billion as of April 1, 2020, plus 75% of future equity issuances thereafter | Minimum tangible net worth of at least 75% of the net cash proceeds of all prior equity issuances made by Holdco or the Company, plus 75% of the net cash proceeds of all subsequent equity issuances made by Holdco or the Company |
Debt to Equity | ||
Debt Instrument [Line Items] | ||
Financial Covenant description | Debt to Equity ratio not to exceed 3.5 to 1.0 with "equity" and "equity adjustment" as defined below. | Debt to Equity ratio not to exceed 3.5 to 1.0 |
Interest Coverage | ||
Debt Instrument [Line Items] | ||
Financial Covenant description | Minimum interest coverage ratio of no less than 1.4 to 1.0 until December 2, 2020, and no less than 1.5 to 1.0 thereafter. | Minimum interest coverage ratio of no less than 1.5 to 1.0. |
Schedule of Key Terms of Fina_2
Schedule of Key Terms of Financial Covenants Before and After Modification (Parenthetical) (Details) | Dec. 03, 2020 | Dec. 02, 2020 | May 28, 2020USD ($) | May 27, 2020USD ($) | Apr. 02, 2020 | Apr. 01, 2020USD ($) |
Debt Instrument [Line Items] | ||||||
Covenant minimum cash liquidity | $ 10,000,000 | $ 10,000,000 | ||||
Covenant tangible net worth | $ 1,100,000,000 | |||||
Covenants percentage of tangible assets on cash proceeds from equity issuances | 75.00% | |||||
Covenant maximum debt equity ratio | 3.5 | 3.5 | ||||
Covenant minimum interest coverage ratio | 1.5 | |||||
Holdco | ||||||
Debt Instrument [Line Items] | ||||||
Covenant minimum percentage of cash liquidity on recourse indebtedness | 5.00% | 5.00% | ||||
Covenants percentage of tangible assets on cash proceeds from equity issuances | 75.00% | 75.00% | 75.00% | |||
Forecast | ||||||
Debt Instrument [Line Items] | ||||||
Covenant minimum interest coverage ratio | 1.5 | 1.4 |
Schedule of Maturities - Schedu
Schedule of Maturities - Schedule of Future Principal Payments (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Secured Revolving Repurchase Agreements | |
Debt Instrument [Line Items] | |
2020 | $ 176,464 |
2021 | 918,326 |
2022 | 623,891 |
Total | 1,718,681 |
Senior Secured and Secured Credit Agreements | |
Debt Instrument [Line Items] | |
2020 | 137,558 |
Total | 137,558 |
Collateralized Loan Obligation | |
Debt Instrument [Line Items] | |
2020 | 265,852 |
2021 | 878,971 |
2022 | 581,129 |
2023 | 108,809 |
Total | 1,834,761 |
Asset-specific Financing | |
Debt Instrument [Line Items] | |
2020 | 77,000 |
Total | $ 77,000 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Fair Value Measurements [Line Items] | ||
Money market funds | $ 173,200,000 | |
Threshold period of delinquency | 90 days | |
Estimated fair value of loans held for investment | $ 4,900,000,000 | $ 5,000,000,000 |
Weighted average gross spread percentage | 3.39% | 3.48% |
Weighted average maturity period | 3 years 6 months | 3 years 9 months 18 days |
Estimated fair value of secured financing agreements disclosure | $ 2,000,000,000 | |
Estimated fair value of collateralized loan obligation | 1,900,000,000 | |
Transfers of financial assets or liabilities with in fair value hierarchy | 0 | |
COVID-19 | ||
Fair Value Measurements [Line Items] | ||
Increase in carrying value of loans held for investments | 47,100,000 | |
Increase in carrying value of secured financing agreements | 62,500,000 | |
Decrease in carrying value of collateralized loan obligation | $ 46,800,000 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Fair Value of Financial Assets and Liabilities (Details) - Fair Value Measurements Nonrecurring - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Carrying Value | CRE Debt Securities | ||
Financial Assets | ||
Financial Assets, Nonrecurring | $ 787,552 | |
Carrying Value | Loans Held for Investment | ||
Financial Assets | ||
Financial Assets, Nonrecurring | $ 4,988,568 | 4,980,389 |
Carrying Value | Collateralized Loan Obligation | ||
Financial Liabilities | ||
Financial Liabilities, Nonrecurring | 1,823,456 | 1,806,428 |
Carrying Value | Secured Financing Arrangements | ||
Financial Liabilities | ||
Financial Liabilities, Nonrecurring | 1,922,820 | 2,525,128 |
Estimate of Fair Value Measurement | Level II | CRE Debt Securities | ||
Financial Assets | ||
Financial Assets, Nonrecurring | 787,552 | |
Estimate of Fair Value Measurement | Level III | Loans Held for Investment | ||
Financial Assets | ||
Financial Assets, Nonrecurring | 4,941,451 | 5,004,379 |
Estimate of Fair Value Measurement | Level III | Collateralized Loan Obligation | ||
Financial Liabilities | ||
Financial Liabilities, Nonrecurring | 1,870,231 | 1,806,428 |
Estimate of Fair Value Measurement | Level III | Secured Financing Arrangements | ||
Financial Liabilities | ||
Financial Liabilities, Nonrecurring | $ 1,985,307 | $ 2,525,128 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Changes in Assets and Liabilities With Level III Fair Values (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Balance at December 31, 2019 | $ 9,335,935 |
Change in fair value | (538,946) |
Balance at June 30, 2020 | 8,796,989 |
Loans Held for Investment | |
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Balance at December 31, 2019 | 5,004,379 |
Change in fair value | (62,928) |
Balance at June 30, 2020 | 4,941,451 |
Collateralized Loan Obligation | |
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Balance at December 31, 2019 | 1,806,428 |
Change in fair value | 63,803 |
Balance at June 30, 2020 | 1,870,231 |
Secured Financing Arrangements | |
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Balance at December 31, 2019 | 2,525,128 |
Change in fair value | (539,821) |
Balance at June 30, 2020 | $ 1,985,307 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | Mar. 31, 2020USD ($)Investment | Apr. 30, 2020USD ($)Investment | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) |
Income Tax [Line Items] | |||||||
Reserve for uncertain income tax positions | $ 0 | $ 0 | $ 0 | ||||
Interest for underpayment of income taxes | 0 | 0 | |||||
Penalties for underpayment of income taxes | 0 | 0 | |||||
Current portion of income tax expense | 200,000 | $ 200,000 | $ 200,000 | $ 400,000 | |||
Effective income tax rate | 0.20% | 0.70% | |||||
Aggregate losses from the sales | 77,000 | (3,112,000) | $ 1,051,000 | $ (3,218,000) | |||
Ten Separate CRE Debt Securities | |||||||
Income Tax [Line Items] | |||||||
Number of investments sold | Investment | 10 | ||||||
Aggregate face value of debt securities | $ 179,300,000 | ||||||
Proceeds from sale of debt securities, gross | 143,100,000 | ||||||
Repayment of secured indebtedness | 141,000,000 | ||||||
Proceeds from sale of debt securities | 2,200,000 | ||||||
Aggregate losses from the sales | $ 36,200,000 | ||||||
39 Separate CRE Debt Securities | |||||||
Income Tax [Line Items] | |||||||
Number of investments sold | Investment | 39 | ||||||
Aggregate face value of debt securities | $ 781,700,000 | ||||||
Proceeds from sale of debt securities, gross | 614,800,000 | ||||||
Repayment of secured indebtedness | 581,700,000 | ||||||
Proceeds from sale of debt securities | 33,100,000 | ||||||
Aggregate losses from the sales | $ 167,300,000 | ||||||
Separate CRE Debt Securities | |||||||
Income Tax [Line Items] | |||||||
Aggregate losses from the sales | 203,400,000 | ||||||
TRSs | |||||||
Income Tax [Line Items] | |||||||
Current portion of income tax expense | 0 | $ 0 | 0 | $ 0 | |||
Deferred tax assets | 0 | 0 | 0 | ||||
Deferred tax liabilities | $ 0 | $ 0 | $ 0 | ||||
REIT Subsidiaries | |||||||
Income Tax [Line Items] | |||||||
Equity interest percentage by parent | 100.00% | 100.00% |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) | Jul. 25, 2017 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | |
Related Party Transaction [Line Items] | |||||||
Incentive management fee percentage of Core Earnings less seven percent of stockholders equity | 20.00% | ||||||
Management fees and incentive management fees payable | [1] | $ 11,025,000 | $ 11,025,000 | $ 9,520,000 | |||
Termination fee, description | A termination fee would be due to the Manager upon termination of the Management Agreement by the Company absent a cause event. The termination fee would also be payable to the Manager upon termination of the Management Agreement by the Manager if the Company materially breaches the Management Agreement. The termination fee is equal to three times the sum of (x) the average annual base management fee and (y) the average annual incentive compensation earned by the Manager, in each case during the 24-month period immediately preceding the most recently completed calendar quarter prior to the date of termination | ||||||
Manager | |||||||
Related Party Transaction [Line Items] | |||||||
Maximum reimbursable expense per annum | $ 1,000,000 | ||||||
Percentage of allocated reimbursable expense of management agreement | 20.00% | ||||||
Payment of reimbursement expense | 250,000 | $ 250,000 | |||||
Series B Preferred Stock | |||||||
Related Party Transaction [Line Items] | |||||||
Percentage of annual base management fee | 0.75% | ||||||
Decrease in annual base management fee percentage | 50.00% | ||||||
Management Agreement | |||||||
Related Party Transaction [Line Items] | |||||||
Percentage of annual base management fee | 1.50% | 1.50% | |||||
Percentage of quarterly base management fee | 0.375% | ||||||
Incentive management fee, description | The Manager is also entitled to incentive compensation which is calculated and payable in cash with respect to each calendar quarter in arrears in an amount, not less than zero, equal to the difference between: (1) the product of (a) 20% and (b) the difference between (i) the Company’s Core Earnings for the most recent 12-month period, including the calendar quarter (or part thereof) for which the calculation of incentive compensation is being made (the “applicable period”), and (ii) the product of (A) the Company’s Equity in the most recent 12-month period, including the applicable period, and (B) 7% per annum; and (2) the sum of any incentive compensation paid to the Manager with respect to the first three calendar quarters of the most recent 12-month period. No incentive compensation is payable to the Manager with respect to any calendar quarter unless Core Earnings for the 12 most recently completed calendar quarters is greater than zero. For purposes of calculating the Manager’s incentive compensation, the Management Agreement, as amended, specifies that equity securities of the Company or any of the Company’s subsidiaries that are entitled to a specified periodic distribution or have other debt characteristics will not constitute equity securities and will not be included in “Equity” for the purpose of calculating incentive compensation. Instead, the aggregate distribution amount that accrues to such equity securities during the calendar quarter of such calculation will be subtracted from Core Earnings, before incentive compensation for purposes of calculating incentive compensation, unless such distribution is otherwise excluded from Core Earnings. | ||||||
Percentage multiplied by stockholders equity included in incentive management fee | 7.00% | ||||||
Management fees and incentive management fees payable | 10,100,000 | $ 10,100,000 | $ 7,300,000 | ||||
Management fees and incentive management fees paid | $ 5,000,000 | ||||||
Incentive management fee | 0 | ||||||
Management Agreement | Minimum | |||||||
Related Party Transaction [Line Items] | |||||||
Management fee payable per annum | $ 250,000 | ||||||
Management fee payable per quarter | $ 62,500 | ||||||
Post-IPO Management Agreement | |||||||
Related Party Transaction [Line Items] | |||||||
Amount incurred and reimbursable | 300,000 | 500,000 | |||||
Reimbursable expenses remained outstanding | $ 900,000 | $ 900,000 | $ 0 | ||||
[1] | The Company’s consolidated Total Assets and Total Liabilities at June 30, 2020 include assets and liabilities of variable interest entities (“VIEs”) of $2.3 billion and $1.8 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities at December 31, 2019 include assets and liabilities of VIEs of $2.2 billion and $1.8 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details |
Related Party Transactions - Su
Related Party Transactions - Summary of Management Fees and Incentive Management Fees Incurred and Paid Pursuant to Management Agreement (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Related Party Transactions [Abstract] | ||||
Management Agreement fees incurred | $ 5,115 | $ 7,371 | $ 10,115 | $ 13,879 |
Management Agreement fees paid | $ 6,508 | $ 7,252 | $ 12,608 |
Earnings per Share - Additional
Earnings per Share - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share Basic [Line Items] | ||||
Dividends declared | $ 0.1 | $ 0.1 | $ 0.4 | $ 0.3 |
Undistributed net income attributable to common stockholders | 0.1 | $ 0.1 | $ 0.4 | $ 0.3 |
Warrants | ||||
Earnings Per Share Basic [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 0 | |||
Series B Preferred Stock | ||||
Earnings Per Share Basic [Line Items] | ||||
Adjustments to accretion of discount on preferred stock | $ 0.4 | $ 0.4 |
Earnings per Share - Schedule o
Earnings per Share - Schedule of Calculation of Basic and Diluted Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Net Income (Loss) Attributable to TPG RE Finance Trust, Inc. | $ 40,673 | $ 31,965 | $ (192,120) | $ 60,374 |
Participating Securities' Share in Earnings (Loss) | (125) | (138) | (393) | (279) |
Accretion of Discount on Series B Cumulative Redeemable Preferred Stock | (443) | (443) | ||
Net Income (Loss) Attributable to Common Stockholders | $ 40,105 | $ 31,827 | $ (192,956) | $ 60,095 |
Weighted Average Common Shares Outstanding, Basic and Diluted | 76,644,038 | 73,963,337 | 76,554,680 | 71,144,696 |
Per Common Share Amount, Basic and Diluted | $ 0.52 | $ 0.43 | $ (2.53) | $ 0.85 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) | Jun. 30, 2020USD ($)$ / sharesshares | Jun. 18, 2020USD ($)$ / shares | Jun. 16, 2020USD ($)$ / shares | May 28, 2020USD ($)Vote$ / sharesshares | Mar. 23, 2020 | Jan. 24, 2020shares | Apr. 16, 2019USD ($)shares | Mar. 07, 2019USD ($) | Mar. 31, 2019USD ($)$ / sharesshares | Jan. 31, 2019USD ($)shares | Jun. 30, 2020USD ($)$ / sharesshares | Mar. 31, 2020shares | Jun. 30, 2019USD ($)shares | Mar. 31, 2019USD ($)$ / sharesshares | Jun. 30, 2020USD ($)$ / sharesshares | Jun. 30, 2019USD ($)shares | Feb. 14, 2020shares | Dec. 31, 2019USD ($)shares | Apr. 12, 2019shares | Aug. 21, 2017shares | ||||
Class Of Stock [Line Items] | ||||||||||||||||||||||||
Common stock, shares issued | 76,792,432 | 76,792,432 | 76,792,432 | 74,886,113 | ||||||||||||||||||||
Common stock, shares authorized | 302,500,000 | 302,500,000 | 302,500,000 | 300,000,000 | ||||||||||||||||||||
Common stock, shares outstanding | 76,792,432 | 76,792,432 | 76,792,432 | 74,886,113 | ||||||||||||||||||||
Proceeds from Issuance of Common Stock | $ | $ 12,895,000 | $ 136,532,000 | ||||||||||||||||||||||
Dividends paid in cash | $ | $ 15,400 | |||||||||||||||||||||||
Unpaid dividends | $ | $ 48,669,000 | [1] | $ 48,669,000 | [1] | $ 31,985,000 | $ 48,669,000 | [1] | 31,985,000 | $ 32,835,000 | [1] | ||||||||||||||
Dividends | $ | $ 32,000,000 | |||||||||||||||||||||||
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 | $ / shares | $ 18.27 | |||||||||||||||||||||||
Stock repurchased during period, value | $ | $ 400,000 | |||||||||||||||||||||||
Purchase plan, expiration date | Feb. 28, 2019 | |||||||||||||||||||||||
2019 Underwritten Offering | ||||||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||||||
Proceeds from Issuance of Common Stock | $ | $ 118,800,000 | |||||||||||||||||||||||
Number of common shares issued | 6,000,000 | |||||||||||||||||||||||
Shares issued, price per share | $ / shares | $ 19.80 | $ 19.80 | ||||||||||||||||||||||
Morgan Stanley And Co LLC | 2019 Underwritten Offering | ||||||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||||||
Proceeds from Issuance of Common Stock | $ | $ 17,400,000 | |||||||||||||||||||||||
Number of common shares issued | 900,000 | |||||||||||||||||||||||
Exercise of underwriters stock option to purchase additional shares | 900,000 | |||||||||||||||||||||||
Offering costs reimbursed by manager | $ | $ 300,000 | |||||||||||||||||||||||
Class A Shares Converted in to Common Stock | ||||||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||||||
Common stock, shares issued | 1,136,665 | |||||||||||||||||||||||
Common stock, shares authorized | 2,500,000 | |||||||||||||||||||||||
Warrants | ||||||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||||||
Warrants to purchase common stock, value | $ | $ 225,000,000 | |||||||||||||||||||||||
Fair value of warrants | $ | $ 14,400,000 | |||||||||||||||||||||||
Initial exercise price | $ / shares | $ 7.50 | |||||||||||||||||||||||
Warrants expiration date | May 28, 2025 | |||||||||||||||||||||||
Common stock, shares issued | 0 | |||||||||||||||||||||||
Number of warrants will be exercised | 0 | |||||||||||||||||||||||
Percentage of common stock beneficial owning in excess of stockholder voting power | 19.90% | |||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||||||
Number of common shares issued | 160,278 | 628,218 | 978,033 | 6,000,000 | ||||||||||||||||||||
Dividend declared per share | $ / shares | $ 0.43 | $ 0.20 | ||||||||||||||||||||||
Unpaid dividends | $ | 48,700,000 | $ 48,700,000 | $ 63,600,000 | $ 48,700,000 | $ 63,600,000 | |||||||||||||||||||
Dividend declared date | Jun. 16, 2020 | |||||||||||||||||||||||
Dividend payable date | Jul. 24, 2020 | |||||||||||||||||||||||
Dividend record date | Jun. 26, 2020 | |||||||||||||||||||||||
Dividend deferral payable date | Jul. 14, 2020 | |||||||||||||||||||||||
Dividend deferral record date | Jun. 15, 2020 | |||||||||||||||||||||||
Common Stock | Equity Distribution Agreement | ||||||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||||||
Aggregate gross sales price of common stock | $ | 74,100,000 | $ 74,100,000 | 74,100,000 | |||||||||||||||||||||
Proceeds from Issuance of Common Stock | $ | $ 50,900,000 | $ 12,900,000 | ||||||||||||||||||||||
Number of common shares issued | 0 | 0 | 600,000 | 0 | ||||||||||||||||||||
Weighted average price per share | $ / shares | $ 20.53 | |||||||||||||||||||||||
Payments for commissions | $ | $ 200,000 | $ 200,000 | ||||||||||||||||||||||
Maximum [Member] | Common Stock | Equity Distribution Agreement | ||||||||||||||||||||||||
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% | |||||||||||||||||||||||
Series B Preferred Stock | ||||||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||||||
Temporary equity, dividend percentage | 11.00% | 11.00% | ||||||||||||||||||||||
Temporary equity, liquidation preference per share | $ / shares | $ 25 | $ 25 | $ 25 | |||||||||||||||||||||
Voting rights per share, Description | Each holder of Series B Preferred Stock will have one vote per share on any matter on which holders of Series B Preferred Stock are entitled to vote and will vote separately as a class (as described below), whether at a meeting or by written consent. The holders of Series B Preferred Stock will have exclusive voting rights on an amendment to the Company’s charter (the “Charter”) that would alter only the contract rights of the Series B Preferred Stock. | |||||||||||||||||||||||
Voting rights per share | Vote | 1 | |||||||||||||||||||||||
Issuance costs | $ | $ 14,209,000 | |||||||||||||||||||||||
Dividend declared per share | $ / shares | $ 0.25 | |||||||||||||||||||||||
Dividend declared date | Jun. 16, 2020 | |||||||||||||||||||||||
Dividend payable date | Jun. 30, 2020 | |||||||||||||||||||||||
Dividend record date | Jun. 15, 2020 | |||||||||||||||||||||||
Dividends paid | $ | $ 2,250,000 | |||||||||||||||||||||||
Series B Preferred Stock | Warrants | ||||||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||||||
Fair value of warrants | $ | $ 14,400,000 | |||||||||||||||||||||||
Issuance costs | $ | $ 14,200,000 | |||||||||||||||||||||||
Series B Preferred Stock | Tranche One | ||||||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||||||
Temporary equity, liquidation preference rate on optional redemption price | 105.00% | |||||||||||||||||||||||
Temporary equity, liquidation preference per share | $ / shares | $ 25 | |||||||||||||||||||||||
Series B Preferred Stock | Tranche Two | ||||||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||||||
Temporary equity, liquidation preference rate on optional redemption price | 105.00% | |||||||||||||||||||||||
Series B Preferred Stock | Tranche Three | ||||||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||||||
Temporary equity, liquidation preference rate on optional redemption price | 102.50% | |||||||||||||||||||||||
Series B Preferred Stock | Tranche Four | ||||||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||||||
Temporary equity, liquidation preference rate on optional redemption price | 100.00% | |||||||||||||||||||||||
Series B Preferred Stock | Maximum [Member] | ||||||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||||||
Temporary equity liquidation preference percentage | 2.00% | |||||||||||||||||||||||
Class A Common Stock | ||||||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||||||
Common stock, shares issued | 0 | 0 | 0 | 1,136,665 | ||||||||||||||||||||
Common stock, shares authorized | 0 | 0 | 0 | 0 | 2,500,000 | |||||||||||||||||||
Common stock, shares outstanding | 0 | 0 | 0 | 0 | 1,136,665 | |||||||||||||||||||
Dividend declared per share | $ / shares | $ 0.43 | |||||||||||||||||||||||
Unpaid dividends | $ | $ 48,700,000 | $ 48,700,000 | $ 63,600,000 | $ 48,700,000 | $ 63,600,000 | |||||||||||||||||||
Series A Preferred Stock | ||||||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||||||
Preferred stock, shares issued | 125 | 625 | 125 | 125 | 125 | |||||||||||||||||||
Preferred stock, shares outstanding | 125 | 500 | 125 | 125 | 125 | |||||||||||||||||||
Issuance of SubREIT Preferred Stock, Shares | 125 | |||||||||||||||||||||||
Proceeds from issuance of preferred stock | $ | $ 100,000 | $ 125,000 | ||||||||||||||||||||||
Dividend rate | 12.50% | |||||||||||||||||||||||
Preferred stock, liquidation preference per annum | $ | $ 1,000 | $ 1,000 | $ 1,000 | |||||||||||||||||||||
Common Stock And Class A Common Stock | ||||||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||||||
Dividend declared date | Jun. 18, 2019 | |||||||||||||||||||||||
Dividend payable date | Jul. 25, 2019 | |||||||||||||||||||||||
Dividend record date | Jun. 28, 2019 | |||||||||||||||||||||||
PE Holder L.L.C | Investment Agreement | Tranche One | ||||||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||||||
Warrants to purchase common stock, value | $ | $ 225,000,000 | |||||||||||||||||||||||
PE Holder L.L.C | Investment Agreement | Tranche Two | ||||||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||||||
Warrants to purchase common stock, value | $ | 50,000,000 | |||||||||||||||||||||||
PE Holder L.L.C | Investment Agreement | Tranche Three | ||||||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||||||
Warrants to purchase common stock, value | $ | $ 50,000,000 | |||||||||||||||||||||||
PE Holder L.L.C | Investment Agreement | Maximum [Member] | ||||||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||||||
Warrants to purchase common stock, authorized | 15,000,000 | |||||||||||||||||||||||
Aggregate cash purchase price | $ | $ 325,000,000 | |||||||||||||||||||||||
PE Holder L.L.C | Investment Agreement | Maximum [Member] | Tranche One | ||||||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||||||
Warrants to purchase common stock, shares | 12,000,000 | |||||||||||||||||||||||
PE Holder L.L.C | Investment Agreement | Maximum [Member] | Tranche Two | ||||||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||||||
Warrants to purchase common stock, shares | 1,500,000 | |||||||||||||||||||||||
PE Holder L.L.C | Investment Agreement | Maximum [Member] | Tranche Three | ||||||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||||||
Warrants to purchase common stock, shares | 1,500,000 | |||||||||||||||||||||||
PE Holder L.L.C | Investment Agreement | Series B Preferred Stock | ||||||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||||||
Temporary equity, shares authorized | 13,000,000 | |||||||||||||||||||||||
Temporary equity, dividend percentage | 11.00% | |||||||||||||||||||||||
Temporary equity, par value | $ / shares | $ 0.001 | |||||||||||||||||||||||
PE Holder L.L.C | Investment Agreement | Series B Preferred Stock | Tranche One | ||||||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||||||
Temporary equity, shares issued | 9,000,000 | |||||||||||||||||||||||
PE Holder L.L.C | Investment Agreement | Series B Preferred Stock | Tranche Two | ||||||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||||||
Temporary equity, shares issued | 2,000,000 | |||||||||||||||||||||||
PE Holder L.L.C | Investment Agreement | Series B Preferred Stock | Tranche Three | ||||||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||||||
Temporary equity, shares issued | 2,000,000 | |||||||||||||||||||||||
[1] | The Company’s consolidated Total Assets and Total Liabilities at June 30, 2020 include assets and liabilities of variable interest entities (“VIEs”) of $2.3 billion and $1.8 billion, respectively. The Company’s consolidated Total Assets and Total Liabilities at December 31, 2019 include assets and liabilities of VIEs of $2.2 billion and $1.8 billion, respectively. These assets can be used only to satisfy obligations of the VIEs, and creditors of the VIEs have recourse only to these assets, and not to TPG RE Finance Trust, Inc. See Note 5 to the Consolidated Financial Statements for details |
Share-Based Incentive Plan - Ad
Share-Based Incentive Plan - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
Number of shares, vested | 121,018 | |||
Stock Compensation Expense | $ 1,686 | $ 633 | $ 3,087 | $ 1,514 |
2017 Equity Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares authorized under the plan | 4,600,463 | 4,600,463 | ||
Total unrecognized compensation cost relating to unvested share-based compensation arrangements | $ 9,100 | $ 9,100 | ||
Unrecognized compensation cost, recognition period | 1 year 2 months 12 days | |||
Stock Compensation Expense | $ 1,700 | $ 600 | $ 3,100 | $ 1,500 |
Share-Based Incentive Plan - Sc
Share-Based Incentive Plan - Schedule of Awarded Shares Vesting Period (Details) - 2017 Equity Incentive Plan - Common Stock | 6 Months Ended |
Jun. 30, 2020shares | |
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 | Jun. 30, 2020 | Dec. 31, 2019 |
Long Term Purchase Commitment [Line Items] | ||
Unfunded commitments related to loans held for investment | $ 579.9 | $ 630.6 |
Accrued Expenses and Other Liabilities | ||
Long Term Purchase Commitment [Line Items] | ||
Allowance for credit losses on loan commitments | $ 5.1 |
Concentration of Credit Risk -
Concentration of Credit Risk - Summary of Loan Portfolio by Property Type (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 5,635,279 | $ 5,628,765 |
Unfunded Commitment | $ 579,917 | $ 630,589 |
% of Loan Commitment | 100.00% | 100.00% |
Loan UPB | $ 5,055,913 | $ 4,998,176 |
% of Loan UPB | 100.00% | 100.00% |
Office | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 2,807,923 | $ 2,925,749 |
Unfunded Commitment | $ 414,240 | $ 438,800 |
% of Loan Commitment | 49.90% | 52.00% |
Loan UPB | $ 2,393,683 | $ 2,486,949 |
% of Loan UPB | 47.30% | 49.90% |
Multifamily | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 1,253,132 | $ 1,104,946 |
Unfunded Commitment | $ 76,395 | $ 69,061 |
% of Loan Commitment | 22.20% | 19.60% |
Loan UPB | $ 1,176,737 | $ 1,035,885 |
% of Loan UPB | 23.30% | 20.70% |
Hotel | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 737,293 | $ 752,293 |
Unfunded Commitment | $ 29,460 | $ 40,088 |
% of Loan Commitment | 13.10% | 13.40% |
Loan UPB | $ 708,384 | $ 712,205 |
% of Loan UPB | 14.00% | 14.20% |
Mixed Use | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 604,993 | $ 604,993 |
Unfunded Commitment | $ 56,016 | $ 78,835 |
% of Loan Commitment | 10.70% | 10.70% |
Loan UPB | $ 548,977 | $ 526,158 |
% of Loan UPB | 10.90% | 10.50% |
Condominium | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 86,938 | $ 95,784 |
Unfunded Commitment | $ 1,525 | $ 1,524 |
% of Loan Commitment | 1.50% | 1.70% |
Loan UPB | $ 85,413 | $ 94,260 |
% of Loan UPB | 1.70% | 1.90% |
Retail | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 33,000 | $ 33,000 |
Unfunded Commitment | $ 2,281 | $ 2,281 |
% of Loan Commitment | 0.60% | 0.60% |
Loan UPB | $ 30,719 | $ 30,719 |
% of Loan UPB | 0.60% | 0.60% |
Other | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 112,000 | $ 112,000 |
% of Loan Commitment | 2.00% | 2.00% |
Loan UPB | $ 112,000 | $ 112,000 |
% of Loan UPB | 2.20% | 2.20% |
Concentration of Credit Risk _2
Concentration of Credit Risk - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Unusual Risk Or Uncertainty [Line Items] | ||
Loan commitment capitalized interest | $ 0.6 | $ 0 |
South and West [Member] | COVID-19 | ||
Unusual Risk Or Uncertainty [Line Items] | ||
Percentage of loan portfolio measured by commitment amount | 47.30% |
Concentration of Credit Risk _3
Concentration of Credit Risk - Summary of Geographic Composition of Loans Held for Investment Based on Current UPB and Loan Commitment (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 5,635,279 | $ 5,628,765 |
Unfunded Commitment | $ 579,917 | $ 630,589 |
% Loan Commitment | 100.00% | 100.00% |
Loan UPB | $ 5,055,913 | $ 4,998,176 |
% of Loan UPB | 100.00% | 100.00% |
East | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 2,450,224 | $ 2,182,659 |
Unfunded Commitment | $ 225,591 | $ 214,938 |
% Loan Commitment | 43.50% | 38.70% |
Loan UPB | $ 2,224,633 | $ 1,967,721 |
% of Loan UPB | 44.10% | 39.40% |
South | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 1,348,021 | $ 1,342,794 |
Unfunded Commitment | $ 123,230 | $ 124,939 |
% Loan Commitment | 23.90% | 23.90% |
Loan UPB | $ 1,225,342 | $ 1,217,855 |
% of Loan UPB | 24.20% | 24.40% |
West | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 1,320,583 | $ 1,397,431 |
Unfunded Commitment | $ 170,766 | $ 201,690 |
% Loan Commitment | 23.40% | 24.80% |
Loan UPB | $ 1,149,817 | $ 1,195,741 |
% of Loan UPB | 22.70% | 23.90% |
Midwest | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 428,351 | $ 482,804 |
Unfunded Commitment | $ 57,951 | $ 83,178 |
% Loan Commitment | 7.60% | 8.60% |
Loan UPB | $ 370,400 | $ 399,626 |
% of Loan UPB | 7.30% | 8.00% |
Various | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 88,100 | $ 223,077 |
Unfunded Commitment | $ 2,379 | $ 5,844 |
% Loan Commitment | 1.60% | 4.00% |
Loan UPB | $ 85,721 | $ 217,233 |
% of Loan UPB | 1.70% | 4.30% |
Concentration of Credit Risk _4
Concentration of Credit Risk - Summary of Loan Portfolio by Loan Category Type (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 5,635,279 | $ 5,628,765 |
Unfunded Commitment | $ 579,917 | $ 630,589 |
% Loan Commitment | 100.00% | 100.00% |
Loan UPB | $ 5,055,913 | $ 4,998,176 |
% of Loan UPB | 100.00% | 100.00% |
Bridge | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 1,859,465 | $ 2,001,962 |
Unfunded Commitment | $ 55,614 | $ 49,057 |
% Loan Commitment | 33.00% | 35.60% |
Loan UPB | $ 1,804,402 | $ 1,952,905 |
% of Loan UPB | 35.70% | 39.10% |
Light Transitional | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 1,957,935 | $ 1,890,762 |
Unfunded Commitment | $ 201,804 | $ 219,138 |
% Loan Commitment | 34.80% | 33.60% |
Loan UPB | $ 1,756,131 | $ 1,671,624 |
% of Loan UPB | 34.70% | 33.40% |
Moderate Transitional | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 1,782,879 | $ 1,701,041 |
Unfunded Commitment | $ 307,499 | $ 347,394 |
% Loan Commitment | 31.60% | 30.20% |
Loan UPB | $ 1,475,380 | $ 1,353,647 |
% of Loan UPB | 29.20% | 27.10% |
Construction | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loan Commitment | $ 35,000 | $ 35,000 |
Unfunded Commitment | $ 15,000 | $ 15,000 |
% Loan Commitment | 0.60% | 0.60% |
Loan UPB | $ 20,000 | $ 20,000 |
% of Loan UPB | 0.40% | 0.40% |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) | Aug. 03, 2020USD ($) | Jun. 30, 2020USD ($)Loan | Jun. 30, 2020USD ($) | Jul. 12, 2020USD ($) | Dec. 31, 2019USD ($) |
Subsequent Event [Line Items] | |||||
Number of mortgage loans originated or acquired | Loan | 0 | ||||
Total loan commitments | $ 5,635,279,000 | $ 5,635,279,000 | $ 5,628,765,000 | ||
Citibank | Secured Credit Agreement | |||||
Subsequent Event [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | 160,000,000 | 160,000,000 | |||
Line of credit facility, outstanding amount | $ 0 | $ 0 | |||
LIBOR | Citibank | Secured Credit Agreement | |||||
Subsequent Event [Line Items] | |||||
Index Rate | one-month LIBOR | ||||
Line of credit, spread on variable rate | 2.25% | ||||
Subsequent Events | Citibank | Secured Credit Agreement | |||||
Subsequent Event [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 160,000,000 | ||||
Line of credit facility, outstanding amount | $ 0 | ||||
Subsequent Events | First Mortgage Loan | |||||
Subsequent Event [Line Items] | |||||
Total loan commitments | $ 90,000,000 | ||||
Unpaid principal balance | 81,400,000 | ||||
Subsequent Events | Senior Mortgage Loan | |||||
Subsequent Event [Line Items] | |||||
Proceeds from Secured Financing Agreements - Loan Investments | $ 0 | ||||
Number of mortgage loans originated or acquired | 0 | ||||
Unpaid principal balance | $ 79,400,000 | ||||
Subsequent Events | Senior Mortgage Loan | LIBOR | |||||
Subsequent Event [Line Items] | |||||
Debt instrument, interest rate floor | 0.75% | ||||
Index Rate | LIBOR plus 3.0% | ||||
Line of credit, spread on variable rate | 3.00% |