TPG RE Finance Trust closed about $1.9 billion of new investments in 2025, delivered 25% year‑over‑year growth in earning assets and generated distributable earnings of $0.97 per share (covering the $0.96 annual dividend), with the loan portfolio ending the year 100% performing.
Management expects an active 2026 as improving “price discovery” and a robust pipeline support higher transaction volume; Q4 originations were $927 million (62% multifamily, 38% industrial) and the firm is targeting total leverage of 3.5x–3.75x after being at 3.02x at year‑end.
Funding and liquidity improved as cost of funds fell to 1.82% (helped by two 2025 CRE CLOs totaling $2.2 billion), with near‑term liquidity of $143 million, $1.6 billion of financing capacity and an 82% non‑mark‑to‑market liability mix.
TPG RE Finance Trust (NYSE:TRTX) executives highlighted a sharp increase in lending activity during 2025 and expressed optimism that improving “price discovery” in commercial real estate will support a busy environment for borrowers and lenders in 2026, according to the company’s fourth-quarter earnings call.
Chief Executive Officer Doug Bouquard said the broader economic backdrop “continues to provide a solid foundation for investment activity” in real estate, adding that dislocation in parts of corporate credit markets has led to “a marginal trend of capital allocation oriented towards real estate credit.” Bouquard pointed to increased “dry powder,” a 10-year Treasury “hovering just above 4%,” and what he described as favorable real estate fundamentals as drivers of continued investment activity.
He emphasized that rising transaction volume is critical for valuation resets to become clearer, calling it “the essential catalyst for true price discovery.” Bouquard said that, nearly four years after the Federal Reserve began hiking rates, improved price transparency is helping shape what he expects to be “an incredibly active year for both borrowers and lenders.”
Bouquard called 2025 “an important turning point” for TRTX. He said the company closed $1.9 billion of new investments, delivered 25% year-over-year growth in earning assets, and generated distributable earnings of $0.97 per share, which he said exceeded the dividend for the year. He added that TRTX maintained stable risk ratings, diversified its liability structure, and ended the year with a “100% performing loan portfolio.”
Fourth-quarter originations were a major contributor to the year’s activity. Bouquard said TRTX closed $927 million of new loans in Q4, backed by 62% multifamily and 38% industrial collateral—two sectors the company continues to target. He also noted that more than 90% of new originations were with repeat borrowers, which he said reflects the company’s relationships and the broader TPG real estate platform.
Management also described a significant shift in sector exposure over time. Bouquard said that at the beginning of 2022, 30% of the balance sheet was exposed to multifamily and industrial collateral combined, while today that combined exposure is over 72%.
Interim Chief Financial Officer and Chief Accounting Officer Brandon Fox reported that for Q4 2025, TRTX posted GAAP net income of $0.2 million. Distributable earnings were $18.5 million, or $0.24 per common share.
For the full year ended Dec. 31, 2025, Fox said TRTX reported GAAP net income of $45.5 million, or $0.57 per share, and distributable earnings of $76.8 million, or $0.97 per common share. Fox said this equated to a 1.01x coverage ratio of the annual dividend of $0.96 per share, and he noted the company has covered its common stock dividend for each of the last two years.
Book value per common share declined quarter-over-quarter to $11.07 from $11.25, Fox said.
On portfolio activity, Fox said TRTX originated 20 loans in 2025 with total commitments of $1.9 billion at a weighted average credit spread of 2.82%. The company received loan repayments of $987.9 million, including full repayments of $931.5 million on 15 loans. Fox broke down the collateral behind those repaid loans as 64% multifamily, 20% hotel, 14% office, and 2% industrial.
Fox said net assets rose year-over-year to $4.1 billion from $3.3 billion, reflecting 25% growth, and that the loan portfolio was 100% performing at year-end. The weighted average risk rating was unchanged at 3.0. During the quarter, the company upgraded two multifamily loans from a risk rating of 3 to 2 due to strong operating performance and downgraded one multifamily loan from 3 to 4 due to operational challenges; Fox said the downgraded loan represented about 1% of total loan commitments at year-end.
CECL reserves increased slightly to 180 basis points from 176 basis points at Sept. 30, Fox added.
Fox said TRTX ended the quarter with near-term liquidity of $143 million, comprised of $72.6 million of cash available for investment (net of $15 million held for liquidity covenants), $51.4 million of undrawn capacity under secured financing arrangements, and $4 million of CRE CLO reinvestment proceeds. He also said the company held $127.1 million of unencumbered loan investments eligible to pledge under existing financing arrangements.
On liabilities, Fox said the company’s liability structure was 82% non-mark-to-market, up from 77% at Dec. 31, 2024. He said cost of funds declined 18 basis points year-over-year to 1.82% from 2.0%, attributing the improvements primarily to two CRE CLOs issued in 2025—TRTX 2025-FL6 and 2025-FL7—totaling $2.2 billion.
Total leverage increased to 3.02x from 2.64x in the prior quarter due to origination volume, Fox said, adding that TRTX had $1.6 billion of financing capacity at year-end and remained in compliance with all financial covenants.
During the Q&A, Bouquard said the company is targeting leverage in the 3.5x to 3.75x range, which he described as “close to fully invested,” after which management would likely reassess.
Asked about a slower start to Q1 originations, Bouquard said funding and payoff timing can be uneven within a quarter and indicated that trend could continue. He described the pipeline as “incredibly robust” across property types and regions, supported in part by five-year loans from 2020–2022 coming due and borrowers seeking refinancing, sometimes with additional equity required. He also cited greater clarity on the “path of rates,” a 10-year Treasury around 4%, and “relatively accommodative” credit spreads as supportive factors for activity.
On loan spreads, Bouquard said tighter spreads were driven by a mix of factors, including concentration in multifamily and industrial and keeping loan-to-value levels below 65%. He added that while spreads tightened somewhat in Q4, TRTX’s cost of funds moved “in line,” supported by strong demand for providing the company with “back leverage.” He pointed to a Series C loan closed in Q4 with a weighted average cost of funds “about 1.67,” and said bank relationships across the broader TPG franchise have been “incredibly aggressive” in providing leverage, helping keep ROEs “generally static.”
Regarding returns, Bouquard responded to a question about ROE targets by saying the company has generally been able to achieve ROEs “in excess” of the referenced level and that “that 500 number isn’t too far off from what I would think these businesses…should look like,” while also discussing longer-term industry trends such as banks pulling back and non-bank lenders playing a larger role.
On industrial exposure, Bouquard said the company’s industrial allocation has grown from generally less than 5% a few years ago to just under 20% today. He indicated an “appropriate target level” for industrial may be in the 25% to 30% range, after which the company might “touch the brakes,” adding that management expects “marginally more growth within industrial over time.”
Finally, Bouquard said TRTX sold two office REO assets last year and has remaining REO. He called 2026 a “relatively attractive year” to continue selling down REO and said investors should expect further progress during the year.
TPG RE Finance Trust, Inc (NYSE: TRTX) is a growth-oriented real estate finance company that originates and invests in a diversified portfolio of commercial real estate debt. The company’s primary business activities include the origination and acquisition of senior mortgage loans, mezzanine loans and preferred equity investments. These investments predominantly finance multifamily, office, industrial, retail and hospitality properties across the United States.
TPG RE Finance Trust pursues a flexible capital strategy, structuring transactions that range from first-lien floating-rate loans to subordinated debt and preferred equity.
