TPG RE Finance Takes $13 Million Loss on Plano Multifamily Foreclosure

TPG RE Finance Trust took a $13.0 million loss in the third quarter after foreclosing on a multifamily property in Plano, Texas, the commercial mortgage REIT said Monday, Oct. 26. The write-off cut its distributable earnings to $5.1 million, or $0.07 a share, from $18.1 million, or $0.24 a share, before realized losses, according to its earnings release and quarterly report filed with the Securities and Exchange Commission after the market close.

GAAP net income attributable to common stockholders was $5.8 million, or $0.08 a share, down from $18.4 million a year earlier. Book value per share slipped to $10.85 from $10.95 on June 30.

What happened to the Plano loan?

TPG RE Finance (NYSE: TRTX) made a $46.2 million senior loan on a Plano multifamily property in 2022, its 10-Q says. By June 30 the loan was rated "4" on the company's five-point risk scale and was on nonaccrual. Before the foreclosure it had an amortized cost of $42.8 million and a carrying value of $29.8 million.

The company took the property through a non-judicial foreclosure on Sept. 1 and recorded it at a fair value of $30.1 million. It now owns seven foreclosed properties, five multifamily and two office, with a combined carrying value of $266.7 million. It had no loans on nonaccrual on Sept. 30.

The loss came out of reserves the company had already set aside. Its allowance for credit losses fell to $76.1 million, or 1.47% of loan commitments, from $80.7 million, or 1.79%, on June 30.

How fast is TPG RE Finance lending?

Measure	Q3 2026 or Sept. 30
New loan commitments, Q3	$772.7 million (nine loans)
Weighted average rate on new loans	Term SOFR + 3.02%
Weighted average as-is loan-to-value	70.2%
Total loan commitments	$5.17 billion (Dec. 31: $4.29 billion)
Multifamily share of commitments	52.6%
Office share of commitments	7.9% (Dec. 31: 10.6%)

Source: TPG RE Finance Trust Q3 2026 earnings release and Form 10-Q.

By our math, loan commitments are up about 20% since Dec. 31. The company also received $119.6 million of repayments in the quarter, mostly on multifamily loans. Chief Executive Doug Bouquard said in the release that the lender "grew net earning assets by $600 million." The board approved a new $50 million share buyback on Oct. 26.

How does a mortgage REIT like TRTX fund its loans?

Mostly with borrowed money from banks and bond investors. On Sept. 30, the company financed its loans with two commercial real estate CLOs totaling $1.9 billion and $1.5 billion drawn on secured credit agreements from four lenders, with $2.3 billion of total commitments, its 10-Q says. It had also drawn $265.0 million on a $375.0 million secured revolver. Those credit agreements charge Term SOFR plus a spread set by property type and advance rate, and they allow margin calls only in certain cases.

The structure works much like the facilities in our warehouse line of credit guide, including the advance rates and haircuts that set how much a lender can borrow against each loan. Non-mark-to-market borrowings were 78.8% of the total. On Oct. 2, the company closed a $1.0 billion CRE CLO and placed about $820.0 million of investment-grade bonds.

Because both its loans and its debt float over SOFR, benchmark moves pass through to borrowers. See hard money and private lending rates today for current SOFR, prime and Treasury levels. For another commercial mortgage REIT working through problem loans, see our report on the Seven Hills office loan payoff.

The company will hold its earnings call at 9 a.m. ET on Tuesday, Oct. 27.