Financial Data and Key Metrics Changes - For Q4 2025, the company reported GAAP net income of $0.2 million and distributable earnings of $18.5 million, or $0.24 per common share [10] - For the full year 2025, GAAP net income was $45.5 million, or $0.57 per share, with distributable earnings of $76.8 million, or $0.97 per common share, achieving a coverage ratio of 1.01x on the annual dividend of $0.96 per share [10] - Book value per common share decreased to $11.07 from $11.25 quarter-over-quarter [10] Business Line Data and Key Metrics Changes - The company originated 20 loans with total commitments of $1.9 billion in 2025, with a weighted average credit spread of 2.82% [11] - The loan portfolio was 100% performing at year-end, with a weighted average risk rating unchanged at 3.0 [11] - The company upgraded 2 multifamily loans and downgraded 1 multifamily loan based on operational performance [12] Market Data and Key Metrics Changes - The company increased its exposure to multifamily and industrial collateral from 30% at the beginning of 2022 to over 72% of the current balance sheet [7] - The cost of funds declined by 18 basis points year-over-year, from 2.0% to 1.82% [13] - Total leverage increased to 3.02x from 2.64x quarter-over-quarter due to substantial loan origination volume [13] Company Strategy and Development Direction - The company aims to continue net asset growth through prudent investment and risk management, targeting a leverage ratio of 3.5-3.75x [8][25] - The focus remains on multifamily and industrial sectors, with plans to increase industrial exposure to 25%-30% [42] - The company is committed to maximizing shareholder value and exploring opportunities for growth, both organic and inorganic [36] Management's Comments on Operating Environment and Future Outlook - The broader economic backdrop is favorable for investment activity in the real estate sector, with increased capital allocation towards real estate credit [4] - The company anticipates a very active year for borrowers and lenders, driven by clarity around interest rates and favorable credit spreads [17] - Management expressed confidence in the ability to deliver strong performance in 2026, supported by a stable balance sheet and attractive investment opportunities [8] Other Important Information - The company ended the quarter with near-term liquidity of $143 million, including $72.6 million in cash available for investment [12] - The liability structure is 82% non-mark-to-market, an increase from 77% at the end of 2024 [13] Q&A Session Summary Question: Expectations for origination pace in Q1 2026 - Management indicated that the pipeline is robust, with significant activity across all property types and regions, suggesting a positive outlook for origination pace in 2026 [15] Question: Target leverage and REO assets - The target leverage is set at 3.5-3.75x, with plans to sell down REO assets throughout the year as market conditions improve [25][26] Question: Appropriate ROE target - Management believes that an ROE in excess of SOFR + 5% is achievable, reflecting the health of the back leverage market [30] Question: Closing the value gap in stock price - Management is focused on maximizing shareholder value and is actively seeking opportunities to close the valuation gap [35] Question: Industrial exposure growth - Industrial exposure has increased significantly, with a target level of 25%-30% anticipated as the company continues to assess market conditions [42]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported GAAP net income of $0.2 million and distributable earnings of $18.5 million, or $0.24 per common share [13] - For the full year 2025, GAAP net income was $45.5 million, or $0.57 per share, with distributable earnings of $76.8 million, or $0.97 per common share, achieving a coverage ratio of 1.01x for the annual dividend of $0.96 per share [13] - Book value per common share decreased from $11.25 to $11.07 quarter-over-quarter [13] Business Line Data and Key Metrics Changes - In Q4 2025, the company closed $927 million in new loans, with 62% in multifamily and 38% in industrial collateral [7] - The company originated 20 loans with total commitments of $1.9 billion at a weighted average credit spread of 2.82% for the full year [14] - The loan portfolio was 100% performing at year-end, with a weighted average risk rating unchanged at 3.0 [14][15] Market Data and Key Metrics Changes - The company observed a trend of capital allocation towards real estate credit due to dislocation in parts of the corporate credit market [5] - The company increased its exposure to multifamily and industrial collateral from 30% at the beginning of 2022 to over 72% of the current balance sheet [9] Company Strategy and Development Direction - The company plans to continue net asset growth through prudent investment and risk management, targeting a leverage ratio of 3.5-3.75x [10][29] - The company aims to maximize shareholder value and is focused on closing the value gap as indicated by the stock trading at a discount to book value [40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver strong performance in 2026, supported by a robust pipeline and favorable market conditions [11][21] - The company noted that clarity around the path of interest rates and competitive credit spreads create a favorable environment for active origination [21] Other Important Information - The company ended the quarter with near-term liquidity of $143 million, including $72.6 million in cash available for investment [15] - The liability structure is 82% non-mark-to-market, with a year-over-year cost of funds decline of 18 basis points to 1.82% [17] Q&A Session Summary Question: Expectations for origination in Q1 2026 - Management indicated that origination volumes in Q4 2025 are expected to continue into Q1 2026, with a robust pipeline across all property types [19] Question: Loan spreads and market competition - Management noted that while loan spreads were tighter in Q4, the cost of funds moved in line, maintaining static ROEs relative to prior quarters [22][24] Question: Target leverage and REO assets - Management targets a leverage ratio of 3.5-3.75x and plans to continue selling down REO assets throughout the year [29][30] Question: Appropriate ROE target - Management stated that an ROE in excess of SOFR + 5% is achievable, reflecting the health of the back leverage market [35] Question: Closing the value gap - Management emphasized a focus on maximizing shareholder value and evaluating opportunities to close the value gap indicated by the stock's discount to book value [40]

TPG RE Finance Trust (NYSE:TRTX) Q4 2025 Earnings call February 18, 2026 09:00 AM ET Speaker6As a reminder, this call is being recorded. It is now my pleasure to pass it off to our host, Dan Cassell. Thank you. You may begin.Speaker2Good morning, and welcome to the TPG RE Finance Trust earnings call for the fourth quarter of 2025. Today's speakers are Doug Bouquard, Chief Executive Officer, and Brandon Fox, Interim Chief Financial Officer and Chief Accounting Officer. Doug and Brandon are joined by Ryan Rob ...

TPG RE Finance Trust (TRTX) reported $35.04 million in revenue for the quarter ended December 2025, representing a year-over-year increase of 0.9%. EPS of $0.24 for the same period compares to $0.10 a year ago.The reported revenue represents a surprise of -8.42% over the Zacks Consensus Estimate of $38.27 million. With the consensus EPS estimate being $0.27, the EPS surprise was -10.01%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations ...

分组1 - TPG RE Finance Trust reported quarterly earnings of $0.24 per share, missing the Zacks Consensus Estimate of $0.27 per share, and showing an increase from $0.1 per share a year ago, resulting in an earnings surprise of -10.01% [1] - The company posted revenues of $35.04 million for the quarter, missing the Zacks Consensus Estimate by 8.42%, and showing a slight increase from $34.74 million year-over-year [2] - TPG RE Finance Trust has not surpassed consensus EPS estimates over the last four quarters, indicating a trend of underperformance [2] 分组2 - The stock has added about 2.8% since the beginning of the year, outperforming the S&P 500, which has declined by 0.1% [3] - The current consensus EPS estimate for the coming quarter is $0.29 on revenues of $39.34 million, and for the current fiscal year, it is $1.15 on revenues of $160.35 million [7] - The Zacks Industry Rank for Real Estate - Operations is in the bottom 36% of over 250 Zacks industries, suggesting that the industry outlook may negatively impact stock performance [8]

Core Insights - TPG RE Finance Trust, Inc. reported strong operating results for the fourth quarter and full year ended December 31, 2025, with total loan commitments of $1.9 billion and a 100% performing loan portfolio [1][2] Fourth Quarter 2025 Activity - The company originated $927 million in loans and received $378 million in loan repayments, demonstrating effective asset management [1] - Non-mark-to-market borrowings accounted for 82.0% of total borrowings as of December 31, 2025 [1] - The company redeemed all $411.5 million of outstanding investment-grade bonds from TRTX 2021-FL4 and refinanced $205.2 million of collateral interests [1] - Issued TRTX 2025-FL7, a $1.1 billion managed CRE CLO with $957.0 million of investment-grade bonds outstanding [1] - Ended the quarter with $143.0 million in near-term liquidity, including $72.6 million in cash available for investment [1] - The allowance for credit losses increased to $77.4 million, representing 180 basis points of total loan commitments [1] - The weighted average risk rating of the loan portfolio remained stable at 3.0 [1] - The company repurchased 45,367 shares of common stock at an average price of $8.50 per share [1] Full Year 2025 Activity - Extended the secured revolving credit facility by three years, increasing capacity to $375.0 million [1] - Redeemed $114.6 million of investment-grade bonds associated with TRTX 2019-FL3 and refinanced $143.0 million of collateral interests [1] - Issued TRTX 2025-FL6, a $1.1 billion managed CRE CLO with $962.5 million of investment-grade bonds outstanding [1] - The company sold two office properties for net proceeds of $39.4 million, resulting in a gain of $7.0 million [1] - Originated 20 first mortgage loans with total commitments of $1.9 billion and a weighted average interest rate of Term SOFR plus 2.82% [1] - Approved a new share repurchase program for up to $25.0 million of common stock [2] Financial Performance - Generated Distributable Earnings of $76.8 million, or $0.97 per common share, based on a diluted weighted average share count of 79.4 million [2] - Recognized GAAP net income attributable to common stockholders of $45.5 million, or $0.57 per common share [2] - Declared cash dividends totaling $77.9 million, representing an 11.1% annualized dividend yield based on the closing price of $8.61 [2]

Financial Performance - Net income attributable to common stockholders for Q4 2025 was $0.2 million or $0.00 per diluted share, while for the full year it was $45.5 million or $0.57 per diluted share[8] - Distributable earnings for Q4 2025 were $18.5 million or $0.24 per diluted share, and for the full year, they were $76.8 million or $0.97 per diluted share[8] - Total net income for the year ended December 31, 2025, was $60.3 million, with net income attributable to common stockholders at $45.5 million[63] - Comprehensive net income for the year ended December 31, 2025, was $60,319, down 18.9% from $74,335 in 2024[68] - Net interest income for Q4 2025 was $25,443, a 3.1% increase compared to $24,680 in Q4 2024[67] - The company experienced a net interest income of $25.4 million for Q4 2025, after accounting for interest expense of $49.0 million[13] Loan Portfolio - The total loan investment portfolio reached $4.3 billion with a weighted average all-in yield of 7.15%[8] - Originated nine first mortgage loans in Q4 2025 with total commitments of $927.0 million, and 20 loans for the full year with commitments of $1.9 billion[8] - Total loan repayments for the year ended December 31, 2025, amounted to $987.9 million, including $931.5 million of full repayments across 15 loans[8] - Total loan commitments reached $4.3 billion, with an outstanding principal balance of $4.1 billion and a weighted average all-in yield of 7.15%[18] - Total loan originations for Q4 2025 amounted to $927.0 million, with a weighted average interest rate of Term SOFR + 2.66%[29] - The loan portfolio composition included 55.4% bridge loans and 24.8% light transitional loans[19] Liquidity and Capital Structure - The company maintained $143.0 million of available near-term liquidity, including $87.6 million in cash[8] - Debt-to-equity ratio increased from 2.14x as of December 31, 2024, to 3.02x as of December 31, 2025[8] - The debt-to-equity ratio stood at 3.02x, while the total leverage ratio was 2.64x as of December 31, 2025[15] - The total financing capacity of the company is $4.9 billion, with an outstanding principal balance of $3.3 billion[44] - The company repurchased 3.2 million shares of common stock at an average price of $7.90 per share, totaling $25.3 million for the year[8] Credit and Risk Management - The company reported a quarter-end allowance for credit losses of $77.4 million, an increase of $11.3 million from $66.1 million as of September 30, 2025[40] - The company has a general reserve of $77.4 million, with no specifically identified loans[41] - The allowance for credit losses increased to $74,503, up 21.0% from $61,558 in 2024[66] - The company reported a credit loss expense of $11,277 for Q4 2025, compared to $4,629 in Q4 2024[67] - The weighted average loan risk rating remained unchanged at 3.0 year-over-year[8] - The company’s CECL reserve per share increased from $0.84 to $0.99 during the quarter[13] Asset Management - The real estate owned portfolio has a total acquisition date fair value of $247.9 million and a current carrying value of $237.7 million[48] - Total assets increased to $4,406,230, up 18.1% from $3,731,429 in 2024[65] - Loans held for investment rose to $4,103,022, a 25.0% increase from $3,278,588 in 2024[66] - Total liabilities increased to $3,338,207, reflecting a 27.5% rise from $2,617,388 in 2024[66] Company Overview - The company is externally managed by TPG RE Finance Trust Management, L.P., part of TPG Real Estate, a global alternative asset management firm[81] - TPG RE Finance Trust, Inc. focuses on originating, acquiring, and managing first mortgage loans secured by institutional properties in primary and select secondary markets in the U.S.[81] - The company emphasizes maintaining or improving current operating cash flow through its loan structures, including bridge and transitional loans[76] - The company classifies loans based on property types, including mixed-use and life science properties, with specific criteria for each classification[78] Shareholder Information - The weighted-average common shares outstanding for the quarter ended December 31, 2025, were 79,299,265, resulting in earnings per common share of $0.57[63] - Dividends declared per common share remained stable at $0.24 for both Q4 2025 and Q4 2024[68] - Total stockholders' equity as of December 31, 2025, was $1.068 billion[64] - Total stockholders' equity decreased to $1,068,023, down 4.1% from $1,114,041 in 2024[66]

Interest Rate Risk - As of December 31, 2025, the weighted average interest rate floor for the loan portfolio was 2.66%[497] - 99.8% of loans by unpaid principal balance earned a floating rate of interest, with less than 10.0% of floating rate liabilities containing an interest rate floor greater than zero[497] - An immediate increase of 25 basis points in the benchmark interest rate could result in a net interest income change of $1,950, while a 75 basis point increase could lead to a change of $6,073[498] Credit Risk - The company is exposed to credit risk, with performance depending on the sponsors' ability to generate adequate cash flows from properties serving as collateral[500] Liquidity Risk - Liquidity risk is associated with financing longer-maturity investments with shorter-term borrowings, which may lead to margin call risks[508] - The company is required to distribute a significant portion of taxable income annually, constraining the ability to accumulate operating cash flow[510] - The company may need to sell assets to maintain adequate liquidity, especially during market disruptions[509] Currency Risk - Currency risk may arise from holding assets denominated in foreign currencies, impacting asset valuation and income distributions[513] - The company intends to hedge currency exposures, but such strategies may not eliminate all currency risk[514] Market Volatility - The market values of commercial mortgage assets are subject to volatility due to various economic factors, which could adversely affect the company's performance[507]

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