TPG RE Finance Trust, Inc. Reports Operating Results for the Quarter and Full Year Ended December 31, 2025

Key Terms

term sofr financial

Term SOFR is a benchmark interest rate that reflects the cost of borrowing money over a specific period, based on actual transactions in the financial markets. It is used by lenders and borrowers to set the interest rates on loans and financial contracts, helping to ensure rates are fair and transparent. For investors, understanding term SOFR helps gauge borrowing costs and the overall direction of interest rates in the economy.

loan-to-value ratio financial

The loan-to-value ratio (LTV) measures how large a loan is compared with the worth of the asset used as collateral, expressed as a percentage — for example, a $80,000 loan on a $100,000 property equals an 80% LTV. It matters to investors because higher LTVs mean higher risk of loss if the asset falls in value, and they influence borrowing costs, loan approval, and the stability and pricing of securities backed by such loans; think of it like how deep your financial safety net is under a loan.

cre clo financial

A CRE CLO is a type of investment vehicle that pools many loans made to commercial real estate projects (like office buildings, shopping centers, or apartment complexes) and repackages them into slices that investors can buy. Think of it as a mortgage bundle for commercial property where each slice carries different levels of risk and return; it matters to investors because its performance depends on property values and loan repayments, affecting income and potential losses.

cecl reserve financial

CECL reserve is the amount a lender or financial firm sets aside under the Current Expected Credit Loss accounting rule to cover estimated lifetime losses on loans and other financial assets. It matters to investors because the size and changes of this reserve directly affect reported profits, capital strength and a lender’s cushion against bad loans — think of it as a rainy‑day fund that reflects how much future trouble the firm expects from its loans.

secured revolving credit facility financial

A secured revolving credit facility is a line of borrowing that a company can draw, repay and redraw up to an agreed limit, similar to a business credit card, with the loan backed by specific assets as collateral. It matters to investors because it provides flexible short-term cash when needed and affects a company’s financial strength and risk: having a secured revolver can lower borrowing costs but gives lenders claims on pledged assets if the company can’t repay.

gaap financial

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

NEW YORK--(BUSINESS WIRE)-- TPG RE Finance Trust, Inc. (NYSE: TRTX) (“TRTX” or the “Company”) reported its operating results for the quarter and full year ended December 31, 2025.

Regarding fourth quarter and year ended 2025 results, Doug Bouquard, Chief Executive Officer of TRTX, said: “During 2025, we originated $1.9 billion of total loan commitments, out-earned our common stock dividend, and maintained a 100% performing loan portfolio. Our fourth quarter loan originations of $927 million and loan repayments of $378 million continue to illustrate the velocity of our balance sheet and success of our investment and asset management strategy.”

FOURTH QUARTER 2025 ACTIVITY

• Recognized GAAP net income attributable to common stockholders of $0.2 million, or $0.00 per common share, based on a diluted weighted average share count of 78.4 million common shares. Book value per common share was $11.07 as of December 31, 2025, compared to $11.25 at September 30, 2025.
• Generated Distributable Earnings of $18.5 million, or $0.24 per common share based on a diluted weighted average share count of 78.4 million common shares.
• Declared on December 12, 2025 a cash dividend of $0.24 per share of common stock which was paid on January 23, 2026 to common stockholders of record as of December 26, 2025. The Company paid on December 30, 2025 to preferred stockholders of record as of December 19, 2025 a quarterly dividend on its 6.25% Series C Cumulative Redeemable Preferred Stock of $0.3906 per share.
• Repurchased 45,367 shares of common stock, at a weighted average price of $8.50 per share, for total consideration (including commissions and related fees) of $0.4 million.
• Originated nine first mortgage loans with aggregate total loan commitments of $927.0 million, an aggregate initial unpaid principal balance of $843.0 million, a weighted average interest rate of Term SOFR plus 2.66%, a weighted average interest rate floor of 2.74% and a weighted average as-is loan-to-value ratio of 64.2%.
• Funded $11.9 million of future funding obligations associated with previously originated and acquired loans.
• Received six full loan repayments of $378.3 million, involving the following property types: 56.5% multifamily; 34.5% office; and 9.0% hotel.
• Weighted average risk rating of the Company’s loan portfolio was 3.0 as of December 31, 2025, unchanged from September 30, 2025.
• Carried at quarter-end an allowance for credit losses of $77.4 million, an increase of $11.3 million from $66.1 million as of September 30, 2025. The quarter-end allowance of 180 basis points of total loan commitments as of December 31, 2025, increased 4 basis points from 176 basis points as of September 30, 2025.
• Ended the quarter with $143.0 million of near-term liquidity: $72.6 million of cash-on-hand available for investment, net of $15.0 million held to satisfy liquidity covenants under the Company’s secured financing agreements; undrawn capacity under secured financing arrangements of $21.4 million; undrawn capacity under asset-specific financing arrangements and secured revolving credit facility of $30.0 million; and collateralized loan obligation reinvestment proceeds of $4.0 million.
• Issued TRTX 2025-FL7, a $1.1 billion managed CRE CLO with $957.0 million of investment-grade bonds outstanding, a 30-month reinvestment period, an advance rate of 87.0%, and a weighted average interest rate at issuance of Term SOFR plus 1.67%, before transaction costs.
• Redeemed all $411.5 million of outstanding investment-grade bonds of TRTX 2021-FL4. Five of the FL4 collateral interests with an aggregate unpaid principal balance of $205.2 million were refinanced by the issuance of TRTX 2025-FL7.
• Non-mark-to-market borrowings represented 82.0% of total borrowings at December 31, 2025.

FULL YEAR 2025 ACTIVITY

• Recognized GAAP net income attributable to common stockholders of $45.5 million, or $0.57 per common share, based on a basic and diluted weighted average share count of 79.4 million common shares.
• Generated Distributable Earnings of $76.8 million, or $0.97 per common share per common share based on a diluted weighted average share count of 79.4 million common shares.
• Declared cash dividends of $77.9 million, or $0.96 per common share, representing a 11.1% annualized dividend yield based on the December 31, 2025 closing price of $8.61, and an 8.7% annualized dividend yield based on the December 31, 2025 book value per common share of $11.07.
• Repurchased an aggregate of 3,200,576 shares of common stock, at a weighted average price of $7.90 per share, for total consideration (including commissions and related fees) of $25.3 million. Total repurchases increased book value per common share by $0.13 per common share.
• Approved a new share repurchase program pursuant to which the Company is authorized to repurchase up to $25.0 million of the Company's common stock.
• Originated 20 first mortgage loans with total loan commitments of $1.9 billion, an aggregate initial unpaid principal balance of $1.8 billion, a weighted average interest rate of Term SOFR plus 2.82%, a weighted average interest rate floor of 2.95% and a weighted average loan-to-value ratio of 65.6%. Additionally, funded $42.6 million of future funding obligations associated with previously originated loans. Unfunded commitments at December 31, 2025 were $173.6 million, or 4.0% of total loan commitments.
• Received loan repayments of $987.9 million, including full loan repayments of $931.5 million on 15 loans, involving the following property types: 64.1% multifamily; 19.7% hotel; 14.0% office; and 2.2% industrial.
• Sold two office properties classified as real estate owned for net proceeds of $39.4 million, resulting in a gain on sale of real estate, net of $7.0 million.
• Carried a CECL reserve of $77.4 million as of December 31, 2025, compared to $64.0 million as of December 31, 2024. The year-end allowance equals 180 basis points of total loan commitments as of December 31, 2025 compared to 187 basis points as of December 31, 2024.
• Issued TRTX 2025-FL6, a $1.1 billion managed CRE CLO with $962.5 million of investment-grade bonds outstanding, a 30-month reinvestment period, an advance rate of 87.5%, and a weighted average interest rate at issuance of Term SOFR plus 1.83%, before transaction costs.
• Redeemed $114.6 million of outstanding investment-grade bonds associated with TRTX 2019-FL3. Three of the FL3 collateral interests with an aggregate unpaid principal balance of $143.0 million were refinanced by the issuance of TRTX 2025-FL6.
• Extended our secured revolving credit facility by three years to February 2028, increased capacity by $85.0 million to $375.0 million, and expanded the syndicate to seven lenders.

SUBSEQUENT EVENTS

• Closed one first mortgage loan with a total loan commitment of $81.0 million and initial funding of $78.5 million, an interest rate of Term SOFR + 2.65%, and an as-is loan-to-value ratio of 65.1%.
• Received the full repayment of one first mortgage loan with a total loan commitment and an unpaid principal balance of $52.1 million and $49.5 million, respectively. The loan carried a risk rating of 3.0 as of December 31, 2025.

The Company issued a supplemental presentation detailing its fourth quarter and full year 2025 operating results, which can be viewed at http://investors.tpgrefinance.com/.

CONFERENCE CALL AND WEBCAST INFORMATION

The Company will host a conference call and webcast to review its financial results with investors and other interested parties at 9:00 a.m. ET on Wednesday, February 18, 2026. To participate in the conference call, callers from the United States and Canada should dial +1 (877) 407-9716, and international callers should dial +1 (201) 493-6779, ten minutes prior to the scheduled call time. The webcast may also be accessed live by visiting the Company’s investor relations website at http://investors.tpgrefinance.com/event.

REPLAY INFORMATION

A replay of the conference call will be available after 12:00 p.m. ET on Wednesday, February 18, 2026 through 11:59 p.m. ET on Wednesday, March 4, 2026. To access the replay, listeners may use +1 (844) 512-2921 (domestic) or +1 (412) 317-6671 (international). The passcode for the replay is 13757563. The replay will be available on the Company’s website for one year after the call date.

ABOUT TRTX

TPG RE Finance Trust, Inc. is a commercial real estate finance company that originates, acquires, and manages primarily first mortgage loans secured by institutional properties located in primary and select secondary markets in the United States. The Company is externally managed by TPG RE Finance Trust Management, L.P., a part of TPG Real Estate, which is the real estate investment platform of global alternative asset management firm TPG Inc. (NASDAQ: TPG). For more information regarding TRTX, visit https://www.tpgrefinance.com/.

FORWARD-LOOKING STATEMENTS

This earnings release contains “forward‐looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward‐looking statements are subject to various risks and uncertainties, including, without limitation, statements relating to the performance of the investments of TPG RE Finance Trust, Inc. (the “Company” or “TRTX”); global economic trends and economic conditions, including heightened inflation, slower growth or recession, changes to fiscal and monetary policy, higher interest rates, tariffs and international trade policies, stress to the commercial banking systems of the U.S. and Western Europe, labor shortages, currency fluctuations and challenges in global supply chains; the Company's ability to originate loans that are in the pipeline and under evaluation by the Company; financing needs and arrangements; and the risks, uncertainties and factors set forth under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as such risk factors may be updated from time to time in the Company’s periodic filings with the Securities and Exchange Commission (the “SEC”), which are accessible on the SEC’s website at www.sec.gov. Forward‐looking statements are generally identifiable by use of forward‐looking terminology such as “may,” “will,” “should,” “potential,” “intend,” “expect,” “endeavor,” “seek,” “anticipate,” “estimate,” “believe,” “could,” “project,” “predict,” “continue” or other similar words or expressions. Forward‐looking statements are based on certain assumptions, discuss future expectations, describe existing or future plans and strategies, contain projections of results of operations, liquidity and/or financial condition or state other forward‐looking information. Statements, among others, relating to our loan originations and loan repayments continuing to illustrate the velocity of our balance sheet and success of our investment and asset management strategy are forward-looking statements, and the Company cannot assure you that it will achieve such results. The ability of TRTX to predict future events or conditions or their impact or the actual effect of existing or future plans or strategies is inherently uncertain. Although the Company believes that such forward‐looking statements are based on reasonable assumptions, actual results and performance in the future could differ materially from those set forth in or implied by such forward‐looking statements. You are cautioned not to place undue reliance on these forward‐looking statements, which reflect the Company’s views only as of the date of this earnings release. Except as required by law, neither the Company nor any other person assumes responsibility for the accuracy and completeness of the forward‐looking statements appearing in this earnings release. The Company does not undertake any obligation to update any forward-looking statements contained in this earnings release as a result of new information, future events or otherwise. Past performance is not indicative nor a guarantee of future returns. Yield data are shown for illustrative purposes only and have limitations when used for comparison or for other purposes due to, among other matters, volatility, credit or other factors.

Non-GAAP Financial Measures Reconciliation

Distributable Earnings

Distributable Earnings is a non-GAAP measure, which we define as GAAP net income (loss) attributable to our common stockholders, including realized gains and losses from loan write-offs, loan sales and other loan resolutions (including conversions to real estate owned (“REO”)), regardless of whether such items are included in other comprehensive income or loss, or in GAAP net income (loss), and excluding (i) non-cash stock compensation expense, (ii) depreciation and amortization expense (which only applies to debt investments related to real estate to the extent we foreclose upon the property or properties underlying such debt investments), (iii) unrealized gains (losses) (including credit loss expense (benefit), net), and (iv) certain non-cash or income and expense items.

We believe that Distributable Earnings provides meaningful information to consider in addition to our net income (loss) and cash flow from operating activities determined in accordance with GAAP. We generally must distribute at least 90% of our net taxable income annually, subject to certain adjustments and excluding any net capital gains, for us to continue to qualify as a real estate investment trust for U.S. federal income tax purposes. We believe that one of the primary reasons investors purchase our common stock is to receive our dividends. Because of our investors’ continued focus on our ability to pay dividends, Distributable Earnings is an important measure for us to consider when determining our distribution policy and dividends per common share. Further, Distributable Earnings helps us to evaluate our performance excluding the effects of certain transactions and GAAP adjustments that we believe are not necessarily indicative of our current loan investment and operating activities.

Distributable Earnings excludes the impact of our credit loss provision or reversals of our credit loss provision, but only to the extent that our credit loss provision exceeds any realized credit losses during the applicable reporting period. See Note 2 to our Consolidated Financial Statements included in our Form 10-K for additional details regarding our accounting policies and estimation of our allowance for credit losses.

Distributable Earnings does not represent net income (loss) or cash generated from operating activities and should not be considered as an alternative to GAAP net income (loss), an indication of our GAAP cash flows from operations, a measure of our liquidity, or an indication of funds available for our cash needs. In addition, our methodology for calculating Distributable Earnings may differ from the methodologies employed by other companies to calculate the same or similar supplemental performance measures, and accordingly, our reported Distributable Earnings may not be comparable to the Distributable Earnings reported by other companies.

Reconciliation of GAAP Net Income Attributable to Common Stockholders to Distributable Earnings

The table below reconciles GAAP net income attributable to common stockholders and related diluted per share amounts to Distributable Earnings and related diluted per share amounts ($ in thousands, except weighted average share and per share data):

	Three Months Ended,						Year Ended,
	December 31, 2025			Per Diluted Share(2)			December 31, 2025				Per Diluted Share(2)
Net income attributable to common stockholders	$	189		$	0.00		$	45,479			$	0.57
Depreciation and amortization		2,595			0.03			12,722				0.16
Non-cash stock compensation expense		4,402			0.06			9,807				0.12
Credit loss expense, net		11,277			0.14			13,871				0.17
GAAP Gain on sale of real estate owned, net(1)		—			—			(6,970	)			(0.09	)
Adjusted Gain on sale of real estate owned, net for purposes of Distributable Earnings(1)		—			—			1,869				0.02
Distributable earnings before realized losses from loan resolutions	$	18,463		$	0.24		$	76,778			$	0.97
Distributable earnings	$	18,463		$	0.24		$	76,778			$	0.97
Weighted average common shares outstanding, diluted		78,445,515						79,445,823
Dividends declared	$	19,350		$	0.24		$	77,868			$	0.96

____________________________
(1)		GAAP Gain on sale of real estate owned, net includes the impact of $5.1 million of depreciation and amortization expense recognized in previous quarters. For purposes of Distributable Earnings, depreciation and amortization expense on real estate owned is an add back in the quarter recognized. Accordingly, in the reporting period sold, the GAAP Gain on sale of real estate owned, net must be reduced by the accumulated depreciation and amortization expense previously recognized.
(2)		Numbers presented may not foot due to rounding.

 

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INVESTOR RELATIONS CONTACT

+1 (212) 405-8500

IR@tpgrefinance.com



MEDIA CONTACT

TPG RE Finance Trust, Inc.

Courtney Power

+1 (415) 743-1550

media@tpg.com

Source: TPG RE Finance Trust, Inc.