v3.25.2
Investment Portfolio Financing
 6 Months Ended
Jun. 30, 2025
Debt Disclosure [Abstract]  
Investment Portfolio Financing Investment Portfolio Financing
The Company finances its portfolio of loans, or participation interests therein, and REO using secured financing agreements, including secured credit agreements, secured revolving credit facilities, asset-specific financing arrangements, collateralized loan obligations, and mortgages.
The following table summarizes the Company's investment portfolio financing (dollars in thousands):
Outstanding principal balance
June 30, 2025December 31, 2024
Collateralized loan obligations(1)
$2,452,377 $1,682,288 
Secured credit agreements156,711 585,042 
Asset-specific financing arrangements29,110 186,500 
Secured revolving credit facility367,841 86,625 
Mortgage loan payable31,200 31,200 
Total$3,037,239 $2,571,655 
________________________________
(1)See Note 5 for additional information regarding the Company's collateralized loan obligations.
Secured Credit Agreements
As of June 30, 2025 and December 31, 2024, the Company had secured credit agreements used to finance certain of the Company’s loan investments. These financing arrangements bear interest at rates equal to Term SOFR plus a credit spread negotiated between the Company and each lender, often a separate credit spread for each pledge of collateral, which is primarily based on property type and advance rate against the unpaid principal balance of the pledged loan. These borrowing arrangements contain defined mark-to-market provisions that permit our lenders to issue margin calls to the Company only in the event that the collateral properties underlying the Company’s loans pledged to the Company’s lenders experience a non-temporary decline in value (“credit marks”) due to reasons other than capital markets events that result in changing credit spreads for similar borrowing obligations.
The following table presents certain information regarding the Company’s secured credit agreements. Except as otherwise noted, all agreements are on a partial (25%) recourse basis (dollars in thousands):
June 30, 2025
Secured credit agreements(1)
Initial
maturity date		Extended
maturity date		Wtd. avg.
credit spread 		Wtd. avg. interest rate Commitment
amount		Maximum
current availability		Balance
outstanding		Principal balance
of collateral		Amortized cost
of collateral
Goldman Sachs08/19/2608/19/282.1 %6.4 %$500,000 $414,029 $85,971 $186,156 $186,156 
Wells Fargo12/06/2712/06/271.6 %6.0 %500,000 479,660 20,340 33,251 33,195 
Barclays08/13/2508/13/261.7 %6.0 %500,000 449,600 50,400 63,000 63,000 
Bank of America06/06/2606/06/26— %— %200,000 200,000 — — — 
Totals$1,700,000 $1,543,289 $156,711 $282,407 $282,351 
________________________________
(1)Borrowings under secured credit agreements with a 25% recourse guarantee from Holdco. Each secured credit agreement contains defined mark-to-market provisions that permit the lenders to issue margin calls based on credit marks.
As a result of contributing collateral into TRTX 2025-FL6 upon its issuance during the three months ended March 31, 2025, the Company repaid $332.6 million of borrowings under its secured credit agreements. Additionally, the Company accelerated $0.1 million of unamortized deferred financing costs related to these agreements within interest expense in its consolidated statements of income and comprehensive income. See Note 5 for details regarding the Company's issuance of TRTX 2025-FL6.
The following table presents certain information regarding the Company’s secured credit agreements. Except as otherwise noted, all agreements are on a partial (25%) recourse basis (dollars in thousands):
December 31, 2024
Secured credit agreements(1)
Initial
maturity date		Extended
maturity date		Wtd. avg.
credit spread 		Wtd. avg.
interest rate 		Commitment
amount		Maximum
current availability		Balance
outstanding		Principal balance
of collateral		Amortized cost
of collateral
Goldman Sachs(2)
08/19/2608/19/282.2 %6.6 %$500,000 $238,879 $261,121 $485,557 $485,207 
Wells Fargo(3)
12/06/2712/06/271.7 %6.0 %500,000 274,470 225,530 295,833 294,810 
Barclays08/13/2508/13/261.7 %6.0 %500,000 437,474 62,526 84,827 84,754 
Bank of America06/06/2606/06/261.8 %6.1 %200,000 164,135 35,865 50,824 50,824 
Totals$1,700,000 $1,114,958 $585,042 $917,041 $915,595 
________________________________
(1)Borrowings under secured credit agreements with a 25% recourse guarantee from Holdco. Each secured credit agreement contains defined mark-to-market provisions that permit the lenders to issue margin calls based on credit marks.
(2)On January 31, 2024, the Company executed a two-year extension of the secured credit agreement through August 19, 2026. Until such date, new and revolving borrowings are permitted. After such date, the secured credit agreement automatically enters a two-year term-out period through August 19, 2028.
(3)On December 6, 2024, the Company executed a three-year extension of the secured credit agreement through December 6, 2027.
Secured Credit Agreement Terms
As of June 30, 2025 and December 31, 2024, the Company had four secured credit agreements to finance its loan investing activities. Credit spreads vary depending upon the collateral type, advance rate and other factors. Assets pledged as of June 30, 2025 and December 31, 2024 consisted of 12 and 21 mortgage loans, or participation interests therein, respectively. Under three of the four secured credit agreements, the Company transfers all of its rights, title and interest in the loans to the secured credit agreement counterparty in exchange for cash, and simultaneously agrees to reacquire the asset at a future date for an amount equal to the cash exchanged plus an interest factor. The secured credit agreement lender collects all principal and interest on related loans and remits to the Company the net amount after the lender collects its interest and other fees. For the fourth secured credit agreement, which until June 6, 2023 was a mortgage warehouse facility, the lender received a security interest (pledge) in the loans financed under the arrangement. Effective June 6, 2023, this credit facility was extended for three years and converted from a mortgage warehouse facility to a secured credit facility similar to the Company's other secured credit facilities. The secured credit agreements used to finance loan investments are 25% recourse to Holdco.
Under each of the Company’s secured credit agreements, the Company is required to post margin for changes in conditions to specific loans that serve as collateral for those secured credit agreements. The lender’s margin amount is limited to collateral-specific credit marks based on non-temporary declines in the value of the properties securing the underlying loan collateral. Market value determinations and redeterminations may be made by the repurchase lender in its sole discretion subject to certain specified parameters. These considerations only include credit-based factors unrelated to the capital markets.
The following table summarizes certain characteristics of the Company’s secured credit agreements secured by mortgage loan investments, including counterparty concentration risks (dollars in thousands):
June 30, 2025
Secured credit agreementsCommitment
amount		UPB of
collateral
Amortized cost
of collateral(1)
Amount
payable(2)
Net counterparty exposure(3)
Percent of
stockholders' equity 		Days to
extended maturity
Goldman Sachs Bank$500,000 $186,156 $187,553 $86,106 $101,447 9.3 %1146
Wells Fargo500,000 33,251 33,315 20,384 12,931 1.2 %889
Barclays500,000 63,000 63,318 50,525 12,793 1.2 %409
Bank of America200,000 — — — — — %341
Total / weighted average$1,700,000 $282,407 $284,186 $157,015 $127,171 875
_______________________
(1)Loan amounts include interest receivable of $1.8 million and are net of premium, discount and origination fees of $0.1 million.
(2)Loan amounts include interest payable of $0.3 million and do not reflect unamortized deferred financing fees of $0.4 million.
(3)Loan amounts represent the net carrying value of the commercial real estate loans sold under agreements to repurchase, including accrued interest plus any cash or assets on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest.
The following table summarizes certain characteristics of the Company’s secured credit agreements secured by mortgage loan investments, including counterparty concentration risks (dollars in thousands):
 December 31, 2024
Secured credit agreementsCommitment
amount		UPB of
collateral
Amortized cost
of collateral(1)
Amount
payable(2)
Net counterparty exposure(3)
Percent of
stockholders' equity		Days to
extended maturity
Goldman Sachs Bank$500,000 $485,557 $489,121 $261,705 $227,416 20.4 %1327
Wells Fargo500,000 295,833 295,815 226,028 69,787 6.3 %1070
Barclays500,000 84,827 84,750 62,681 22,069 2.0 %590
Bank of America200,000 50,824 51,089 35,899 15,190 1.4 %522
Total / weighted average$1,700,000 $917,041 $920,775 $586,313 $334,462  1100
_______________________
(1)Loan amounts include interest receivable of $5.2 million and are net of premium, discount and origination fees of $1.4 million.
(2)Loan amounts include interest payable of $1.3 million and do not reflect unamortized deferred financing fees of $0.8 million.
(3)Loan amounts represent the net carrying value of the commercial real estate loans sold under agreements to repurchase, including accrued interest plus any cash or assets on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest.
Secured Revolving Credit Facility
On February 22, 2022, the Company closed a $250.0 million secured revolving credit facility with a syndicate of five lenders. During the fourth quarter of 2022, an additional lender was added to the facility, increasing the borrowing capacity to $290.0 million. During the first quarter of 2025, the Company amended the facility to extend the maturity by three years and increased the borrowing capacity to $375.0 million with a syndicate of seven lenders. In connection with the amendment, the Company incurred $3.4 million of deferred financing costs, including issuance and legal related costs. This facility has a maturity of February 13, 2028, an interest rate of Term SOFR plus 2.00% that is payable monthly in arrears, and an unused fee of 15 or 20 basis points, depending upon whether utilization exceeds 50.0%. During the three months ended June 30, 2025 and 2024, the weighted average unused fee was 20 and 20 basis points, respectively. During the six months ended June 30, 2025 and 2024, the weighted average unused fee was 20 and 20 basis points, respectively. The facility generally provides the Company with interim financing of eligible loans for up to 180 days at an initial advance rate of 75.0%, which declines to 65.0%, 45.0%, and 0.0% after 90, 135, and 180 days from initial borrowing, respectively, depending on the likely source of refinancing. This facility is 100% recourse to Holdco.
As of June 30, 2025, the Company pledged four loan investments with an aggregate collateral principal balance of $490.5 million and had outstanding Term SOFR-based borrowings of $367.8 million. As of December 31, 2024, the Company pledged one loan investment with a collateral principal balance of $115.5 million and had outstanding Term SOFR-based borrowings of $86.6 million.
Asset-Specific Financing Arrangements
On December 5, 2023, the Company closed a $90.6 million asset-specific financing facility with HSBC Bank USA, National Association ("HSBC Facility"). On September 26, 2024, the Company added an additional loan to the loan financing facility, increasing the total facility size by $72.0 million. The facility provides asset-specific financing on a non-mark-to-market, matched term basis. This facility is 20% recourse to Holdco. The advance rate and borrowing rate are determined separately for each loan financed under the facility.
On June 30, 2022, the Company closed a $200.0 million loan financing facility with BMO Harris Bank ("BMO Facility"). The facility provides asset-specific financing on a non-mark-to-market, matched term basis. This facility is 25% recourse to Holdco. The advance rate and borrowing rate are determined separately for each loan financed under the facility.
On November 17, 2022, the Company closed a $23.3 million asset-specific financing arrangement with Customers Bank. The arrangement is non-mark-to-market, matched term, and non-recourse.
The following table details the Company's asset-specific financing arrangements (dollars in thousands):
June 30, 2025
FinancingCollateral
Asset-specific financingCountCommitment amountOutstanding principal balance
Carrying
value(1)
Wtd. avg.
spread(2)
Wtd. avg.
term(3)
CountOutstanding principal balanceAmortized costWtd. avg.
term
BMO Facility1$200,000 $29,110 $29,097 2.0 %2.21$39,768 $39,739 2.2
Total / weighted average$200,000 $29,110 $29,097 2.0 %2.2 years$39,768 $39,739 2.2 years
_______________________
(1)Net of $0.01 million unamortized deferred financing costs.
(2)Collateral loan assets and related financings are indexed to Term SOFR.
(3)Borrowings are term-matched to the corresponding collateral loan asset. The weighted average term assumes all extension options of the collateral loan assets are exercised by the borrower.
As a result of contributing collateral into TRTX 2025-FL6 upon its issuance during the three months ended March 31, 2025, the Company repaid $157.4 million of borrowings under the HSBC Facility and Customers Bank asset-specific financing arrangements. Additionally, the Company accelerated $0.6 million of unamortized deferred financing costs related to these arrangements within interest expense in its consolidated statements of income and comprehensive income. See Note 5 for details regarding the Company's issuance of TRTX 2025-FL6.
The following table details the Company's asset-specific financing arrangements (dollars in thousands):
December 31, 2024
FinancingCollateral
Asset-specific financingCountCommitment amountOutstanding principal balance
Carrying
value(1)
Wtd. avg.
spread(2)
Wtd. avg.
term(3)
CountOutstanding principal balanceAmortized costWtd. avg.
term
HSBC Facility1$144,114 $136,011 $135,451 2.0 %3.63$188,995 $187,958 3.6
BMO Facility1200,000 29,110 29,046 2.0 %2.7138,468 38,365 2.7
Customers Bank123,250 21,379 21,244 2.5 %2.7129,417 29,346 2.7
Total / weighted average$367,364 $186,500 $185,741 2.1 %3.4 years$256,880 $255,669 3.4 years
_______________________
(1)Net of $0.8 million unamortized deferred financing costs.
(2)Collateral loan assets and related financings are indexed to Term SOFR.
(3)Borrowings are term-matched to the corresponding collateral loan asset. The weighted average term assumes all extension options of the collateral loan assets are exercised by the borrower.
Mortgage Loan Payable
The Company, through a wholly owned special purpose subsidiary, is the borrower under a $31.2 million, non-recourse mortgage loan secured by a deed of trust against an REO asset. The first mortgage loan was provided by an institutional lender, has an interest-only term of five years with a maturity of July 6, 2028 and bears interest at a rate of 7.7%. As of June 30, 2025 and December 31, 2024, the carrying value of the loan was $30.8 million and $30.7 million, respectively.
Financial Covenant Compliance
Our financial covenants and guarantees for outstanding borrowings related to our secured financing agreements require Holdco to maintain compliance with the following financial covenants (among others):
Financial CovenantCurrent
Cash Liquidity
Minimum cash liquidity of no less than the greater of: $15.0 million; and 5.0% of Holdco’s recourse indebtedness.
Tangible Net Worth
$1.0 billion, plus 75% of all subsequent equity issuances (net of discounts, commissions, expense), minus 75% of the redeemed or repurchased preferred or redeemable equity or stock. With respect to the Secured Revolving Credit Facility, $0.8 billion, plus 75% of all subsequent equity issuances (net of discounts, commissions, expense) after September 30, 2024, minus 75% of the redeemed or repurchased preferred or redeemable equity or stock after September 30, 2024.
Debt-to-Equity
Debt-to-Equity ratio not to exceed 4.25 to 1.0.
Interest Coverage
Minimum interest coverage ratio of no less than 1.4 to 1.0, effective June 30, 2023. Previously, 1.5 to 1.0.
The financial covenants and guarantees for outstanding borrowings related to the Company’s secured credit agreements and secured revolving credit facility require Holdco to maintain compliance with certain financial covenants. The uncertain long-term impact of global macroeconomic conditions, including heightened inflation, slower growth or recession, changes to fiscal and monetary policy, sustained higher interest rates, the potential impact of tariffs, currency fluctuations, labor shortages, structural shifts and regulatory changes in the banking sector, and political and geopolitical conflicts, on the commercial real estate markets and global capital markets may make it more difficult to meet or satisfy these covenants, and there can be no assurance that the Company will remain in compliance with these covenants in the future.
Investment Portfolio Financing Financial Covenant Compliance
The Company was in compliance with all financial covenants for its investment portfolio financing arrangements to the extent of outstanding balances as of June 30, 2025 and December 31, 2024, respectively.