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1. Company Snapshot

1.a. Company Description

TPG RE Finance Trust, Inc., a commercial real estate finance company, originates, acquires, and manages commercial mortgage loans and other commercial real estate-related debt instruments in the United States.It invests in commercial mortgage loans; subordinate mortgage interests, mezzanine loans, secured real estate securities, note financing, preferred equity, and miscellaneous debt instruments; and commercial real estate collateralized loan obligations and commercial mortgage-backed securities secured by properties primarily in the office, multifamily, life science, mixed-use, hospitality, industrial, and retail real estate sectors.The company qualifies as a real estate investment trust for federal income tax purposes.


It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders.TPG RE Finance Trust, Inc.was incorporated in 2014 and is based in New York, New York.

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1.b. Last Insights on TRTX

TPG RE Finance Trust, Inc.'s recent performance was driven by a strong second quarter, with $695.6 million of total loan commitments originated, resulting in 15% portfolio loan growth. The company's Q2 earnings met estimates, with a quarterly earnings of $0.24 per share. A new share repurchase program of up to $25.0 million of common stock was also announced, indicating a commitment to returning value to shareholders. Additionally, the company's dividend yield of 10.5% was covered by second-quarter distributable earnings.

1.c. Company Highlights

2. TRTX Posts Solid Q3 Earnings, Demonstrates Investment Activity Acceleration

TPG Real Estate Finance Trust (TRTX) reported GAAP net income of $18.4 million or $0.23 per common share and distributable earnings of $19.9 million or $0.25 per common share for the third quarter of 2025, covering the quarterly dividend of $0.24 per common share. The actual EPS came in slightly below estimates of $0.26. Book value per common share increased quarter-over-quarter to $11.25 from $11.20. The company's investment activity accelerated in Q3, with $279 million of new investments closed during the quarter and another $197 million subsequent to quarter end.

Publication Date: Nov -29

📋 Highlights
  • Investment Growth Acceleration:: Closed $279M in Q3, $197M post-quarter, with $670M expected in Q4, totaling $1.1B in investments for Q3-Q4 2025.
  • Portfolio Credit Quality:: 65% LTV ratio and 3.22% credit spread on Q3 loans, with 91% of investments in multifamily and industrial assets.
  • Financial Performance:: Q3 GAAP net income of $18.4M ($0.23/share) and distributable earnings of $19.9M ($0.25/share), covering the $0.24/share dividend.
  • Balance Sheet Strength:: 87% non-MTM liabilities, 2.6x leverage, and $1.6B in financing capacity, with $11.25 book value/share (up from $11.20).

Investment Activity and Portfolio Composition

TRTX continues to lend primarily on multifamily and industrial assets, representing approximately 91% of the $1.1 billion of closed and in-process investments. For loans closed in the third quarter, the company averaged a 65% loan-to-value ratio and a credit spread of 3.22%, indicating an attractive credit risk profile. The steady growth in activity is expected to drive TRTX earnings growth, demonstrating the offensive posture of the investment platform.

Liability Structure and Leverage

The company's liability structure is 87% non-mark-to-market, reflecting a preference for stable, long-dated, and low-cost liabilities. Total leverage was flat quarter-over-quarter at 2.6x. At quarter end, TRTX had $1.6 billion of financing capacity available to support loan investment activity and was in compliance with all financial covenants.

Growth Prospects and Valuation

Analysts estimate next year's revenue growth at 6.2%. With a current P/E Ratio of 10.71 and a P/B Ratio of 0.66, the market appears to be pricing in moderate growth expectations. The Dividend Yield stands at 10.56%, indicating an attractive return for income-focused investors. Given the company's growth prospects and current valuation, TRTX appears to be reasonably priced, with potential for further growth driven by its investment activity acceleration.

Management's Outlook and Strategy

As Doug Bouquard mentioned, "We're kind of starting to see some of that acceleration" in investment activity, with $1.1 billion of loans closed or signed up in Q3 and Q4. The company is poised to benefit from growing its balance sheet and increasing the debt-to-equity ratio, with the recent Series CLO providing incremental leverage and lowering the cost of capital. This strategic move is expected to drive future growth and enhance return on equity.

3. NewsRoom

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TRTX or FSV: Which Is the Better Value Stock Right Now?

Dec -01

Source: zacks.com

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TPG RE Finance Trust, Inc. (NYSE:TRTX) Given Average Rating of “Moderate Buy” by Brokerages

Dec -01

Source: defenseworld.net

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TPG RE Finance Trust, Inc. Closes $1.1 Billion Commercial Real Estate CLO

Nov -17

Source: businesswire.com

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Top Stocks With Solid Shareholder Yield to Safeguard Your Portfolio

Nov -17

Source: zacks.com

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Best Income Stocks to Buy for Nov. 17th

Nov -17

Source: zacks.com

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TRTX or FSV: Which Is the Better Value Stock Right Now?

Nov -13

Source: zacks.com

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TPG RE Finance Trust: The Fed Will Drive The Preferreds Higher

Nov -02

Source: seekingalpha.com

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Best Income Stocks to Buy for Oct. 31st

Oct -31

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.30%)

6. Segments

Real Estate Investment Trust

Expected Growth: 7.3%

TPG RE Finance Trust, Inc.'s 7.3% growth is driven by increasing demand for commercial real estate, diversification of loan portfolio, and strategic expansion into new markets. Additionally, the company's strong relationships with borrowers, efficient capital management, and disciplined underwriting practices contribute to its growth momentum.

7. Detailed Products

Commercial Mortgage Loans

TPG RE Finance Trust, Inc. originates and acquires commercial mortgage loans secured by income-producing properties, such as office buildings, apartments, and retail centers.

Mezzanine Loans

TPG RE Finance Trust, Inc. provides mezzanine loans, which are a type of subordinate financing that bridges the gap between the senior mortgage and the borrower's equity.

Preferred Equity

TPG RE Finance Trust, Inc. invests in preferred equity, which is a type of hybrid security that combines features of debt and equity.

Bridge Loans

TPG RE Finance Trust, Inc. originates bridge loans, which are short-term, interim financing solutions for properties that are in transition or undergoing renovation.

8. TPG RE Finance Trust, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for TPG RE Finance Trust, Inc. is medium due to the availability of alternative investment options for investors.

Bargaining Power Of Customers

The bargaining power of customers for TPG RE Finance Trust, Inc. is low due to the company's diversified investor base and lack of concentration of ownership.

Bargaining Power Of Suppliers

The bargaining power of suppliers for TPG RE Finance Trust, Inc. is medium due to the company's dependence on a few large borrowers and the availability of alternative lenders.

Threat Of New Entrants

The threat of new entrants for TPG RE Finance Trust, Inc. is high due to the relatively low barriers to entry in the commercial real estate lending industry.

Intensity Of Rivalry

The intensity of rivalry for TPG RE Finance Trust, Inc. is high due to the competitive nature of the commercial real estate lending industry and the presence of several established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 79.06%
Debt Cost 8.99%
Equity Weight 20.94%
Equity Cost 14.41%
WACC 10.12%
Leverage 377.62%

11. Quality Control: TPG RE Finance Trust, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
TPG RE Finance Trust

A-Score: 6.7/10

Value: 6.0

Growth: 5.2

Quality: 5.8

Yield: 10.0

Momentum: 5.5

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
KKR Real Estate Finance Trust

A-Score: 6.3/10

Value: 8.1

Growth: 3.9

Quality: 6.2

Yield: 10.0

Momentum: 2.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
NexPoint Real Estate Finance

A-Score: 6.0/10

Value: 6.0

Growth: 2.2

Quality: 6.5

Yield: 10.0

Momentum: 4.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Invesco Mortgage Capital

A-Score: 5.9/10

Value: 5.6

Growth: 3.2

Quality: 5.1

Yield: 10.0

Momentum: 3.5

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Granite Point Mortgage Trust

A-Score: 5.9/10

Value: 8.8

Growth: 1.9

Quality: 5.8

Yield: 10.0

Momentum: 5.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Ares Commercial Real Estate

A-Score: 4.6/10

Value: 5.2

Growth: 1.4

Quality: 3.8

Yield: 10.0

Momentum: 1.5

Volatility: 5.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

8.98$

Current Price

8.98$

Potential

-0.00%

Expected Cash-Flows