Earnings call transcript Q3 2022

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Operator

Greetings, and welcome to the TPG Real Estate Financial Trust Third Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder this conference is being recorded.

It is now my pleasure to introduce your host, Ms. Counsel. General Ginsberg, Deborah you Deborah, may you, begin. Thank

Deborah Ginsberg

questions. Matt and conference then turn call morning, joined Officer. by Executive Doug for welcome Chief will the Bob of about to Trust Finance today the Officer; Chief Bouquard, some Estate and Real Doug President; for Financial we'll I'm and Foley, TPG XXXX. Good Coleman, share the comments Bob quarter third and quarter call

supplemental with Yesterday available filed earnings press Form release results, and operating XX-Q on in the are a presentation evening, Investor issued a all Relations we our website which our of section. and of our

I'd remind to of include and call may outside forward-looking materially. statements, the Company's like results that are Actual uncertain everyone which control. today's differ may

of please certain refer the affect update duty press of the And for some could these XX-K. reconciliations our section Factors any and of see also on release Form Risk Form do we that results should our to XX-Q to our and refer to non-GAAP you and call. statements We measures Form XX-Q. risks discussion this a undertake the not For will

With that Bouquard, Real Executive Doug Finance over I call TPG of the Trust. to Estate Officer Chief turn

Doug Bouquard

morning good Thank you, for call. joining the Thank Deborah, and everyone. you

investing positioned platform, current take see the flow believe real-time attractive As an advantage for the of time about quarter to TRTX. And estate TPG well I landscape. and complete Estate we a our the as ahead liquidity information of part to real my macroeconomic I position be the Real excited TRTX the We in opportunity second CEO, I'm is as midst find given ourselves investing lender. of

reduced conditions, activity, further quarter Tightening real the estate same nearly capital property across and widened types. market reduced markets the slowed the all loan lines. along spreads liquidity, past values Over continued trend available financial

muted year, to of due acceleration Furthermore transaction we head anticipate appetite remains continues of activity and we widening our sellers gap weaken. as between trends the transact. risk into buyers an to end a As these will

of and as year, tightening deliberately continued and quarters In real activity effects the TRTX our our liquidity, two on conditions markets. investment debt reduced first estate financial the equity we anticipated of the bolstered

have capital terms conclude sufficient effects opportunistically the of third on to to market risk current begun attractive mitigate deploy liquidity while manage quarter, portfolio. As we further maintaining deterioration and our we the

and pressure continued the real the same The office risk values, the very reserve. environment do CECL an on within challenges lending that existing adjusted conditions Given for loans our investments. sector, attractive particularly increased estate rating create on we've our certain foster

platform drive economic Fortunately, investing position us has that management environment. experience our well real estate to that into investing resolutions positioned is and an to shareholder maximize value multiple both in capital will asset opportunity-rich and redeploy cycles spans

total the ended perspective, we $XXX million From a of liquidity liquidity. with quarter

to approach continue in same broader maintaining the measured of while take We economic ample liquidity in the the balancing backdrop. capital deployment of context

funds of basis about CRE cost our As our the an we while I'll from spread evidenced the which diversify advance at points moment, QX of to continue Company XX%. a market, attractive for maintaining speak in funding and rate XXX CLO in a of originations, away blended

these of exceeded noting investments that multifamily these is XXX% at also XX%. and new a ROE investments average of over credit our with continue XX% financing. worth of XX% past weighted were bias and of loans a blended XX% million knowing portfolio investments multifamily we Over the of with loans grow of financed closing via worth spot loans, an structures investments We QP exposure. the LTV that XX acquisition were investment non-mark-to-market the and It quarter towards the across made spread to X.XX%, were of $XXX

is quarter ability to the financing of last the the and TPG's contraction relationships depth liquidity, Given community. the to in with newly non-mark-to-market bank a recent testament execute breadth funded

received in addition, office loans. which XX% million, $XXX were the of we repayments totaling past quarter, In

as months, we as reducing portfolio. nearly the So a current exposure have approximately office of our doubled our the to portfolio, over multifamily of to XX one-third result, past you XX% our we the XX% down portfolio -- think while exposure total about

Similar long-term to continue industrial. few expect such on should to fundamentals, the and with lending sectors quarters, that focus multifamily last you TRTX will in as attractive

more spread reset basis to As debt lower liquidity and debt TRTX can lower values real across compared prior at estate markets, vintages. contracts a command

liquidity this take lender-friendly investing to platform, combined environment, for the TPG quarters. advantage breadth the TRTX conservative over a the our profile, the Given coming of opportunity full of expect we with depth shareholders and

turn With more over our detail to that, results. to provide on I'll it Bob

Robert Foley

good and morning, joining. Thank Doug, you for everyone. Thanks,

our a quarter. points. at reserve. Diluted distributable earnings $X.XX per increase $X.XX X.Xx. three the We in ended quarterly the share share quick by common for $X.XX due earned Book covered quarters data million for CECL declined Three ratio from value $XX.XX $XXX.X to quarter $XX.XX dividend per to just per in quarter-over-quarter the of share share our the per

dividend book to common stock closing price yesterday's generates and of an of $X.XX. value of share yield $X.XX XX.X% Our current quarterly annualized per X.X% to

I'll cover topics morning. this five

quarter and sheet, reserve, First, rate leverage sensitive strategy, of changes sides our both liquidity. to and our balance our capital to our our interest return being our XXX% CECL during margin on third net the interest

the regarding reserve. CECL First,

distributable CECL loans, five. office $XX.X does reduce to assessed risk compared $XX.X increase million. is noncash our and related was expense increase basis net not individually preceding four points $XXX.X with CECL ratings the This the XXX general as We points of for or a reserve of and all comprised $XXX.X unrealized of to million quarter. recorded The earnings. to to basis million reserve XXX relating in million

of is of during quarter this properties, first months. judgment, In at we past the accelerated of loans and for observed debt increase we rapid that management's and have the the four by this year, was since pace downgraded investment significant eight markets end capital markets and office warranted which material the the office the weakening especially

cognizant message of this but morning's some ignore market positive are reality, trends. should not We

XX% portfolio billion, is and commitments year multifamily in For investments example, new from of profits. our XX% full XX% due targeting a loan management a declined and loan our total year-to-date loan of repayments office office Of Office share $X asset one to industrial of of repayments, has our ago total were loans.

and our office funded the $XXX Midtown property loan borrower XX million borrowers million a In have payments, principal their Included and leasing is repayment partial partial past our via reserves office capital $XX infused commissions. months, interest office on repayments, principal in of Manhattan. loans this largest and replenishments in amount interest improvements here into

to and have increase, all reserve contributed of performing risk four rating that better. are loans office the the most general a For or

increase risk-weighted loans. are currently of non-mark-to-market financed observe believe XX% and and Approximately a four what our economy, of current based and know, expect reserve the CECL five on capital on CECL basis. reserve our risks to from markets we of our the We much accurately our which relates our reflects loans performance

the XXX% $X.X net the loan September we balance net sensitive last margin, of became of occurred interest again Regarding until floor decline million to because growth that quarter, rate August investments related interest repaid. money sides high quarter due a became expense or didn't loan our the on that become in repayments growth floors rate in Quarter-over-quarter out date. did late sheet high interest in and interest loans loan that rate new money both of XXXX, the early out the lagged the of in few in was our the margin as income occurred reset

was weighted end, X.XX% LIBOR surged X.XX%. to the rate our X.X%. the and X.XX%, quarter highest from During floor average our At floor was quarter, rate on

to we beginning with syndications. capital non-mark-to-market prior quarter financing, We've Turning financing target. from quarters our policy financing arranged low-cost our remains a of four the XX% non-mark-to-market of comprised pre-CLO-era of since strategy. and At our consistent And year, revived to new senior old-school the diversity of financing approach have strategy, counterparties loan foundation our financing counterparties. with the long-standing end,

The quarter sort and feature funding of one diversify a our third to limited basis. our is which continued mark-to-market of funded on result, liabilities with was credit-based XXX% of financed We've investment marks. non-mark-to-market any debt have to activity XX% only base, exception our

of and fall remaining of the one we credit our the facility. XXXX maturities extended During maturities quarter, in beyond. The majority

are Our us. is to tighter estimate average than new comparable which reinvestment CLO periods by XXX with basis extremely two spread basis our The valuable CRE current today. weighted points, open issuance is points CLOs roughly XXX

maturities CLOs extension those are maturities which the against The hedge loans, underlying of tied of helpful is to risk. the loan a

debt-to-equity compared Our fashion to remains ratio of September X.XX:X leaves at investment target of in by actual our prudent as X.X team. XX. room sourced opportunities are leverage and our increase to suitable This leverage as

already we non-mark-to-market is from $XXX.X and additional existing capacity proven the We comfortably We That Plus the of with in ability credit reinvestment have leverage of CLOs. market capacity ratio financing financial in an $X.X under counterparties. in X.X:X. secured billion source to remain existing million of covenants. compliance current our debt-to-equity our our financing agreements, new in have reflected

at was or investments. defense, to The equity capably liquidity new CLOs no quarter. debt offense positioned in $XXX.X in play million. requires simultaneously demonstrated cash was $XXX.X which our fund quarter reinvestment Regarding capacity our on team and million, and end, We're third paired hand latter the to well

that, And we'll Operator. questions. the open with floor to

Operator

you. Thank

proceed with question. question your first Steve Delaney Our from JMP with Please Securities. is

Steve Delaney

there the generally specific curious Thanks fourth rated now the that months in This on I Good it. the the with what it question. on in quarter own say. at and deed the I'm lieu, At everyone. or five changed, with you property guess, Hi. foreclosure just XX morning -- conditions three conditions Dallas conditions property? four and in for the borrower. four actual the I XX, the the comment subsequent over loan last to you taking kind its Can was specific rated case, of on, with should that June the September here obviously, or reserve in

Robert Foley

was the had sought one It formal that large institutional did investment its for morning deed thanks reach changed the through unable for of Steve, take to identified very negotiated with property. borrower, office agreement best to question. Hi, in near And title good Dallas. in your and the located former a and and the of via is which marketing We borrower, that had which life what funds sponsor in North your lieu is a bidders process. thanks was property, late broad it is of a -- it the sell

of So it It at end be It's borrower disclosed. property To September. shortly capital. in quarter. the operations quarter the took clear, more during property. that as with of purchaser, property end solid much the close to infuse the I opted capital couldn't prior the and say deal to was back capital. not had And end infuse prospective a we the changed it not it day, after not we the a substantial more was to assessment to a really borrowers' deal prepared the infused would

purchaser it We are would with property, that to of a year. before discussions in end close expect the we the for advanced and

Steve Delaney

Wow.

Okay.

going was but question it not hope follow-up you roll to well be sounds to don't my it this year, operating property the like flow, you So at sounds into like be cash the next current what's -- point, and like. rent

Doug Bouquard

That's correct. any haven't it's it, year. we but unforeseen buyer, to It's end a in-place by have barring flow got the we property. I of cash of solid the expect solid interim out and we and basis, identified property mean would manager, a an changes our be to

Steve Delaney

Excellent. for you. Bob, follow-up quick it. And That's just helpful. one Got

up the have that half million point, financed in million. to in if level not it but I'm of Your tied pretty It's like sounds you It off you today. It sounds if of it's the of market. liquidity but expect over money take line. a you to $XXX-some at may that grow the where that of to good there but because are like uncertainty just Dallas, is what is spend have can it solid, have $XXX lot money, there, some your situations the you curious that Thanks. guess in financing like that I just CLOs. happened something

Robert Foley

Yes.

Steve. I good follow-on a question, think

sheet and that instances and I CLOs think take have first. do sources in years. had been out, be loans of we've elected me two financing other that to on cash part instances two We've balance have used and we've There the been for there we past to where buy the sub-questions, that. doing or let may

amended those they're loans sometimes into paid and are sometimes And back CLOs. sometimes put sold, off, they're

move and in directly banks cash put what think the a negotiated ability originate first five migrate in existing with I our recently of understand CLOs, group see loans because or had a will to available The of of for loans facility or your is eligibility then The we do days, And putting you arrangements financing or credit loans elsewhere steadily to to CLOs acquire utility XX warehouse you what part criteria new of question into those panoply our up we reinvestment and for into or have those them have very into financed and them. among can the CLOs. we closed CLOs to clearly we for new six CLOs. where loans into them seen

useful So cash that immediately and available. actually is available pretty immediately virtually

Steve Delaney

Got it.

the So like the to couple to put of it the here going money months. in next sounds is over definitely CLOs be work

Robert Foley

quarter, that you if on cash And it's of look historically, at And deployed quickly. end have and you'll the typically very Yes. sheet the see the we'll balance cash CLOs.

Steve Delaney

All you right, thank comments. for the both

Robert Foley

Steve. you, Thank

Operator

you. Thank

question. with Don Please Wells from proceed your with is question next Our Fargo. Fandetti

Don Fandetti

talk were financed? a they little loans. where are or How NPLs you new nonperforming the about think bit financed? -- are two I those there Hi. And Can

Doug Bouquard

Sure. Good for morning, joining. and Don, thanks

risk-rated Actually, non-mark-to-market They and in financings About single of we have counterparties. a I be our nonrecourse likely, or in non-mark-to-market with may XX% are node-on-node more may back a So single pool CLOs asset four, financed five loans. on basis. that for small loans step they're are minute. risk

currently in three instances, And the Steve is that inquired the earlier so instance, case held property fourth the actually that's of about unlevered. four the

Don Fandetti

this So right? Is you NPLs had new two quarter? that

Doug Bouquard

That's that on We are have two loans nonaccrual. right

Don Fandetti

Or kind on there I some could Okay. next what four quickly a captured you everything? about loans bit your seeing. you've and talk like you for Do guess, expectation based of nonperforming into move that are of office moved loans And feel can five to rating quarter? we're little kind

Doug Bouquard

of extension that would highlighted all really we one. I've up would loan, reflects that Yes, life do past we or quarter quarters City. all, the that of portion losses example in have of sure. two, It's a a CECL what I either illustrative of great our next do near-term how one can the maturity And year. question. a I office the use view reserve potential that during that I play exposures our loans first to York over our over one I really say, of Bob out would coming mentioned, potential in have say, think that largest is the prior final say, office saw of New

received going That of million a extension. that $XX had the satisfy in a excess was into down a pay balance that to of loan million $XXX quarter. We

on So to but that's committed not you infuse to had remain who asset, that. where resolve North the to an again a seeing side, in the Dallas we're looking we're again, about example of Bob borrowers and not other think where too quickly repetitive, more ultimately capital. borrower the decided be mentioned And to then asset I

Don Fandetti

it. Got

Operator

Thank you.

Eric Hagen Our proceed is from next with question your question. Please BTIG. with

Eric Hagen

maturities And office term the portfolio. -- portfolio? any Hope Hi, remaining near-term its about you in in is on thanks. CECL say in the more how average where any there the thinking generally? mitigants the to a connectivity what more that up lease -- And the cases morning. concentrated well. you're and just Good to lease Can portfolio? guys is are Follow term near risk reserve you maybe

Robert Foley

a influence talk to but good is the quickly environment Eric our portfolio good. now and increase and thanks then But that, is very I is morning, see can't cash what that's properties. and heavy exact reserve. how say from I that's that generally as decision right our And joining. valuation net CECL can it office saying general about been Sure, to speaking, whole the an we the performance some has a level offer applied really to our indications for would market for in markets informs Walts that can provide CECL What's before the pretty I today, XX. in reserve in multiples changed at flow changing September briefly

suburban to years to walls terms seven In typically five are Walt, of CBD and typically three are walls office five.

across space We're for leasing impending demand more from see don't broader standpoint particular look we actual the a in and near-term on portfolio, we holes risk As absorption. or holes. trends our management focused

Doug Bouquard

types sector Yes. move now. rates. say higher Look, the degrees. office to a varying that is liquidity again, macro to I micro both would bit that the think also, hit drying about little and And about really less probably right property up all the mean we're I I across add Bob's and double just a trends it's been then seeing just point, hardest the has I'd also whammy sort of of in as secular more

from lending that what reserve about hearing then our -- that that's of really office tapered to sorry, into and the around CECL for our capital And fact has for reflect think appetite is I think exposure. particularly, seeing trying the office of really the our think I uncertainty off just of current And the through real us year. more really activity, we end driving markets views as you're of more terms it's in estate appetite the and CECL some

Eric Hagen

structure, ahead trigger That's like Thank to Got second. to loans the a just helpful any would which the detail. drive conditions you. control than the a or themselves, for there Maybe to loans out desire delinquency, the related other of some this CLO deal going being buy you. there for could drive actual Are their delinquency? to need other back which is capital an you

Doug Bouquard

Bob, go ahead.

Robert Foley

there impending is or credit-related not be the us a that, of with the can which And Typically a event answer remove triggering an credit to event. really. alone. collateral is triggering no, way needs the manager, are written, The indentures either expectation the

Doug Bouquard

capacity for FLX, mean, three bear these we I in are have that series And on And CLOs, also I'd liquidity front, really tools would mind outstanding of say I CLO us. the have valuable FLX the first and beginning end through both the X. FLX's lasts beginning outstanding quarter FLX then capacity. XXXX. X into the reinvestment of and X the of and

So blended those in have liquidity a really, cost vehicles and is on available of is the spread. within and means that is options a at increasing XXX XXX FLX then at have advance of that amount XX% what an is what spread we basis, to company. of plus and FLX advance XX% we But funds really

CLO sort bit So we've our note-on-note investments, both quarter those with of second, with exploiting A-note then first structures, for pocket finance financing in and over holding billion capacity of CLOs what that first all of the our -- non-mark-to-market at back been a past really nearly investments and the for the be $X market potentially but options. reinvestment looking or

So again, those remain in liquidity through think us valuable we for the term. financing CLOs valve near a really as

Eric Hagen

detail. great much. That's guys Thank you very

Robert Foley

you, Thank Eric

Operator

Thank you.

Our next Please with Rick with JPMorgan. proceed question Shane from is your question.

Rick Shane

XX, thanks the all assume draw, looking are your designated originations for about we marketing by think Bridge what Bridge I'm those sponsors. and that curious, you One questions are this definition, and really reliant interestingly in third price value business the morning. where more for and more absorption appreciation. when in more bridge curious given I'm taking might means guys, less think loans. all loans, to as the my about milestones. as three enhancements thing added at I your quarter, top in opposed plans enough, by that immediate how be upon to market, Hi

Doug Bouquard

I'm Sure. cover that. happy to Yes.

loans had we quarter, LTV purchased, loans past direct say would roughly those all pooled XX%. -- of highlighted, approximately and roughly performing that secondary a as the purchases again, you of I at we were the over XXX% XX-XX. loan originations So

the relative of tended liquidity of in loans discount to we at loans. advanced where say, terms direct be, our were certain of origination. needed those would loans their those able I that plan to amount those a were business typical And to on marginally they seller more in given a buy And

refinancing And market potential I frankly just think closer or exit. to a capital

finance that again, we which able basically were of view those leverage about where when nonrecourse a DM XXX, had term to the with that So we portfolio and your blended we we performing an buy at a of acquisition as discount low were to bought for account financing. loans opportunity them non-mark-to-market able

point heart of are relative the question at originating, the what these like is were cycle. in I loans definitely, at stabilized again, really say, your more this But we typically to which would we

Rick Shane

at And to Francisco It Got I you OID look, a with year. my was No. healthy it. question. actually maturity looks pretty San dovetail to that like second the multifamily going there's specifically, next noticed that got

there extended next So -- fully maturity some obviously, a is year. with

look, now given So for there's a little a some different relatively -- Jose, market? books I'm differentiate and what's to on and San on that? I'm where high that again, that going really bit appears versus Bridge, XX directly which LTV, San example, multifamily doesn't for a like curious, that in absorption what given San the what's execution going loan in largest looks a there probably loan Francisco, I challenging risk July more be is San of Francisco. driven -- on execution hard How to about but your in originated loan. just Jose, aware marketing in think it's a But to

Doug Bouquard

Sure.

just So and newly an deal Jose, mentioning Oaktree asset is into was burning really about And like that, fresh say, the on. properties. would within acquisition moment where and too, cash we asset a that up fact leasing And was by it that the off you're that I that's MG acquired San concessions.

it's So I its say plan. in later again, business would

a were likely to frankly, would I And come that XXX if have on loan been points I a tighter ago, borrowing of I gone into XXX basis not to stabilized is It would even say would traditional months financing. likely someone market have think, the type frankly, like lender. XX that -- would nearly the TRTX to probably cost and to gone think, have more have

to a And a full exposure that of business with asset. the built in later frankly, plan was have again, lease-up cycle than again, its to, opportunity an newly as that view we So vacant multifamily. rather

Rick Shane

It's helpful actually good context. and really

Doug Bouquard

close been I a would picture of loans -- deal the going would has there point to into a a very otherwise sort that theme like, changed, is conduit or is SASB as This of this as deal. have liquidity as again, we've that that, stabilization are describe again, highlighting, been

take and effectively bridging towards And a it's say, with right a bridge basically it of -- describe be more business in CMBS would plan lenders succinct of, going TRTX that's heavy to that's you and to to in probably And capital be towards to that think three four of continues terms have would now, where the really than you'll it bridge us. more I And of to my so response, really years. kind execute. to market I a more see like they're QX from saw can as until market what coming I think, continue from saying loans stabilization choppy like I and expensive us

Rick Shane

rent as long-term helpful, we are of a How renters trend is who Great. last for heard to the risk lot of really were and very more based who to in if see that terms finance quarter industry the increases. homeowners And creating much persistent faced resilient persistent do inflation? sort asking a coverage is universe, have thing pretty it a that you you we such some towards one consumer reversal of borrowers consumer in know, And But start multifamily, how between rental shift is of cover of is apologize risky who thematically. during inflation broad That's divergence names. upon terms we're performance question. and going think have we one I there

Doug Bouquard

driven rent XX% couple is primarily portfolio. very like by the that really do really it's the One would given say -- positive we I is a that across we're think that growth our Yes, frequently. of continuing things. portfolio, our multifamily And fact we And continue think are long-term there still sure. space fundamentals. seeing obviously, there we It's that to about And of a question. great

we're growth not residential closing space. really again, X%, borrowing rates demand that, that, more seeing to the any really into And we rental more fact to that expect rental the with see your in and I driven point, think So to slowing. been has by

the financing again, equity, to that orienting say, debt, as remains generally available the given we're feel -- we're multifamily multifamily, the want terms really that we're LTV, would be we about to discount in at still the at where in the -- given values space and are time, confident fact I can approximately not with roughly of we rates that, in see XX% X% coming are financing our sector I think and seeing rising But transactions still really investments. same our a exit think cap a benchmark apartment without we as rate, it rates looking are are valuation, trading we -- rates. are widening you you the mean, spot. are about as about out where for REITs that we question, reflecting secondly, the we cap implied as those approximately cap at live and

points being markets. shouldn't rates see seeing wider activity acquisition where Actually, the And is about generally we're of cap modeled rates I or cap wider private say to in being basis cap starting XXX that's X.XX% closer to perhaps if we're bps private rates speaking, XXX were modeled -- market in X.X% to model. terms approximately range, seeing we're

about wider. underwriting just just when we're to rates that, at taken cap how I I we're on to we're But buy again, then higher be think financing our for really exit again, think going public again, demand So again, reflect valuation markets structural within the the come But just it's that feel down by think -- -- And housing. out fact feel we multifamily. get long-term we the I tolerate all is channels asset out. the loans available we're have simply looking clearly

Rick Shane

take for Thanks thank for your And taking morning. time this me of helpful. that's a letting great, Okay, you some lot.

Doug Bouquard

Thank you, Rick.

Operator

Thank you.

with Our your question. next Please Citi. question from with is Seganovic proceed Aaron

Aaron Seganovic

liquidity it's is those the just of weak that used a a do level a everybody just so this up that of the just in to me seems is that on generally has follow of to? cash to tighten rate or to wanted rate is office rising this office. function just the liquidity that the cap cap I are get properties the performance kind And issue Or It talk of for new good. like feel kind Thanks. fact bit? kind of flows driven pretty and for more a you

Doug Bouquard

in I Well, to -- can in think imagine, space, major post-COVID of just circular, contributor broader office given demand been with kind of just in a world. I it's has you mean, cap it's a that as I that the somewhat say trends conjunction lack also widening we're financing the drop that's seeing for But all really been would rates. the

think I mix both. really of it's So a

getting for in think loans specific I asset they office just I thinking say, think is looking how do each would kind definitely of of that general our in think increasingly think stories market. I these hard, perhaps they're And because it, as specific. I borrowers what and speak are idiosyncratic at about each it's each demand is to long-term picture these of about very about loan that in the

would could But the capital around back activity period issue that to being to industrial, structural a of again, as multifamily, financing side, for is the a it sciences very markets on that's fact demand to likely like harder life see say I seems pressure and exacerbated longer-term harder quicker available by of longer office I will feels time. sectors relative have just office also kind identify. that bouncing the getting there And be in other

Aaron Seganovic

a property, it's rated. that fifth get this, next a There's due. office I that largest then due rated already I in And the risk coming another there's property $XX And of one New five mentioned due extended. comes It's also maybe that's York, million past it's Did February. is, Houston some then in York guess, it's but you a terms that's about -- your specifics, your the New in three What's in property mean an I of Okay. March there. guess loan year.

Given -- bit little maybe a between likely to issues, could these and some you these the them? talk are just nuances become all liquidity REO about of

Robert Foley

Sure.

So can if let's I in and see order. remember those those take

quarter. the So our maturity New year, in here in which loans. office first of nearest rated five is that's is term building an And York, one of actually next January

of sell borrower loan resolution there there property the be So that either property, has won't to a and sale working a and be. been our will or

the There quarter. later very that's the extend will New matures strong to actually strong to credit in York the is has tenancy to that an That anything, Don't The some in in requirements next predict extend is want option first loan. satisfy but the fully it. an -- going there is office to institutional likelihood that that, borrower property borrower. the building

borrower that And and from in you earlier, likelihood that that is office very good in all on building be got sell. the amended undertook. market the third process to mentioned that the Houston loan extended will And based the intelligence where then we an loan borrower marketed property marketing I that the that mentioned

Aaron Seganovic

you. Thank right. All Okay.

Operator

Thank you. for back at no floor like over turn I'd closing this questions are to time. to There further the comments. any Doug Bouquard

Doug Bouquard

TRTX. morning look the here Yes. thank on progress into want to Thank this forward to guys continuing Again everyone call the for and update dialing just to you. you

Operator

This concludes today's conference.

lines your at disconnect can You you this for participation. Thank your time.

TPG RE Finance Trust (TRTX) 2 Nov 222022 Q3 Earnings call transcript