TPG RE Finance Trust(TRTX) - 2025 Q3 - Quarterly Results

Financial Performance - Net income attributable to common stockholders for Q3 2025 is $18.4 million, translating to $0.23 per diluted share[9] - Distributable earnings for Q3 2025 amount to $19.9 million, or $0.25 per diluted share[9] - Net income for Q3 2025 was $21,993,000, an increase from $20,631,000 in Q2 2025, representing a growth of 6.6%[59] - Net income attributable to common stockholders for Q3 2025 was $18,449,000, up from $16,881,000 in Q2 2025, reflecting a 9.3% increase[59] - Net income attributable to common stockholders for the nine months ended September 30, 2025, was $45,290, a decrease of 14.2% from $52,757 in the same period of 2024[64] - Earnings per common share (basic) for Q3 2025 remained stable at $0.23, unchanged from Q3 2024[64] Loan Portfolio - Total loan investment portfolio stands at $3.7 billion with an average loan size of $79.7 million[7] - Total loan commitments reached $3.7 billion, with an outstanding principal balance of $3.6 billion[16] - In Q3 2025, total loan originations amounted to $279.2 million, with a weighted average interest rate of Term SOFR + 3.22% and an as-is LTV of 64.9%[28] - The company reported total loan repayments of $415.8 million in Q3 2025, including full repayments of $405.8 million[28] - Loans held for investment increased to $3,631,216,000 in Q3 2025 from $3,278,588,000 in December 2024, indicating a rise of 10.7%[62] - The company’s loan portfolio is concentrated, with 52.6% in the top 25 MSAs and 30.8% in the top 10 MSAs[16] Income and Expenses - Interest income for the quarter is reported at $77.1 million, while interest expense is $48.8 million, resulting in a net interest income of $28.3 million[9] - Net interest income for Q3 2025 was $28,288, a decrease of 3.4% from $29,282 in Q3 2024[63] - Total other revenue for Q3 2025 was $9,553, down 12.0% from $10,863 in Q3 2024[63] Dividends and Shareholder Returns - The company declared a common stock dividend of $0.24 for Q3 2025, with an annualized dividend yield of 8.5% based on the September 30, 2025 closing share price of $8.56[7] - Dividends declared per common share for the nine months ended September 30, 2025, were $0.72, consistent with the same period in 2024[64] Financial Ratios and Metrics - The debt-to-equity ratio is reported at 2.64x, indicating a stable leverage position[13] - The weighted average cost of funds is 3.36%, with a weighted average all-in yield of 7.75%[7] - The weighted average all-in yield on the loan portfolio is 7.75%, with a weighted average credit spread of 3.36%[16] - The CECL reserve at the end of Q3 2025 was $66.1 million, a decrease of $2.6 million from the previous quarter[39] - The allowance for credit losses was $64,544,000 as of September 30, 2025, compared to $61,558,000 at the end of 2024, showing a slight increase of 4.8%[62] - Total stockholders' equity as of September 30, 2025, was $1,082,530,000, down from $1,114,041,000 at the end of 2024, a decrease of 2.8%[62] Risk Management - The company evaluates loan risks quarterly, assigning ratings from 1 (Very Low Risk) to 5 (Default/Loss Likely) based on various factors including loan structure and market conditions[75] - The company focuses on maintaining or improving current operating cash flow through its loan structures[74] - The company’s loans are generally rated "3" (Medium Risk) upon origination or acquisition, unless specific circumstances warrant a different rating[75] Liquidity and Financing - The company has available liquidity of $216.4 million, which includes cash and undrawn capacity[13] - The total financing capacity is $4.6 billion, with 87% being non-mark-to-market financing[43] Real Estate Portfolio - The real estate owned portfolio has a total acquisition date fair value of $247.9 million and a current carrying value of $236.4 million[47] - The classification of mixed-use properties requires that no single use represents more than 60% of the property's total value[75]