Variable Interest Entities and Collateralized Loan Obligations (Tables)

6 Months Ended

Jun. 30, 2025

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Variable Interest Entities Assets and Liabilities

The following table outlines the total assets and liabilities within the Sub-REIT (dollars in thousands):


	June 30, 2025		December 31, 2024
Assets
Cash and cash equivalents	$	9,086	$	71,541
Collateralized loan obligation proceeds held at trustee(1)	1,778		—
Accounts receivable from servicer/trustee	449		299
Accrued interest and fees receivable	22,975		10,866
Loans held for investment, net	2,800,033		1,917,210
Real estate owned, net	82,079		117,090
Other assets	1,019		3,947
Total assets	$	2,917,419	$	2,120,953
Liabilities
Accrued interest payable	$	5,730	$	4,436
Accrued expenses	3,029		4,738
Collateralized loan obligations, net(2)	2,442,868		1,681,660
Payable to affiliates	3,909		3,052
Deferred revenue	1,563		2,583
Total liabilities	$	2,457,099	$	1,696,469

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(1)Includes $1.8 million of cash available to acquire eligible assets related to TRTX 2025-FL6 as of June 30, 2025.

(2)Net of $2.2 million of unamortized discount related to TRTX 2025-FL6 as of June 30, 2025 and $7.3 million and $0.6 million of unamortized deferred financing costs as of June 30, 2025 and December 31, 2024, respectively.

Schedule of Borrowings and Corresponding Collateral

The following tables detail the loan collateral and borrowings under the Company's CRE CLOs (dollars in thousands):


	June 30, 2025
CRE CLOs	Count	Benchmark interest rate	Outstanding principal balance		Carrying value(1)		Wtd. avg. spread(2)		Wtd. avg. maturity(3)
TRTX 2021-FL4
Collateral loan and REO investments	20	Term SOFR	$	861,275	$	811,738	3.81	%	1.8
Financing provided	1	Term SOFR	648,775		648,721		1.96	%	12.7
TRTX 2022-FL5
Collateral loan investments	25	Term SOFR	1,009,071		986,611		3.67	%	1.8
Financing provided	1	Term SOFR	841,102		841,102		2.04	%	13.6
TRTX 2025-FL6
Collateral loan investments	20	Term SOFR	1,100,000		1,085,541		3.34	%	3.3
Financing provided	1	Term SOFR	962,500		953,045		1.83	%	17.2
Total
Collateral loan and REO investments(4)	65	Term SOFR	$	2,970,346	$	2,883,890	3.58	%	2.4 years
Financing provided(5)	3	Term SOFR	$	2,452,377	$	2,442,868	1.94	%	14.8 years

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(1)Includes REO investments held in the Company's CRE CLOs.

(2)Weighted average spread excludes the amortization of loan fees, deferred financing costs, and debt issuance discounts.

(3)Loan term represents weighted average final maturity, assuming extension options are exercised by the borrower. Repayments of CRE CLO notes are dependent on timing of underlying loan repayments post-reinvestment period. The term of the CRE CLO notes represents the rated final distribution date.

(4)Collateral loan investment assets of FL4, FL5 and FL6 represent 19.6%, 26.7% and 29.0%, respectively, of the aggregate unpaid principal balance of the Company's loans held for investment portfolio as of June 30, 2025.

(5)During the three months ended June 30, 2025, the Company recognized interest expense of $39.9 million, which includes $0.7 million of discount and deferred financing cost amortization and is reflected within the Company's consolidated statements of income and comprehensive income. During the six months ended June 30, 2025, the Company recognized interest expense of $67.5 million, which includes $1.3 million of discount and deferred financing cost amortization and is reflected within the Company's consolidated statements of income and comprehensive income.


	December 31, 2024
CRE CLOs	Count	Benchmark interest rate	Outstanding principal balance		Carrying value		Wtd. avg. spread(1)		Wtd. avg. maturity(2)
TRTX 2019-FL3
Collateral loan and REO investments	5	Term SOFR	$	311,381	$	203,427	3.68	%	1.0
Financing provided	1	Term SOFR	119,526		119,526		2.46	%	9.8
TRTX 2021-FL4
Collateral loan and REO investments	19	Term SOFR	886,409		796,552		3.84	%	2.0
Financing provided	1	Term SOFR	673,909		673,909		1.93	%	13.2
TRTX 2022-FL5
Collateral loan investments	26	Term SOFR	1,056,822		1,033,775		3.70	%	2.1
Financing provided	1	Term SOFR	888,853		888,225		2.02	%	14.1
Total
Collateral loan and REO investments(3)	50	Term SOFR	$	2,254,612	$	2,033,754	3.75	%	2.0 years
Financing provided(4)	3	Term SOFR	$	1,682,288	$	1,681,660	2.02	%	13.4 years

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(1)Weighted average spread excludes the amortization of loan fees and deferred financing costs.

(2)Loan term represents weighted average final maturity, assuming extension options are exercised by the borrower. Repayments of CRE CLO notes are dependent on timing of related loan repayments post-reinvestment period. The term of the CRE CLO notes represents the rated final distribution date.

(3)Collateral loan investment assets of FL3, FL4, and FL5 represent 9.5%, 27.0%, and 32.2%, respectively, of the aggregate unpaid principal balance of the Company's loans held for investment portfolio as of December 31, 2024.

(4)During the three months ended June 30, 2024, the Company recognized interest expense of $35.7 million, which includes $1.5 million of deferred financing cost amortization and is reflected within the Company's consolidated statements of income and comprehensive income. During the six months ended June 30, 2024, the Company recognized interest expense of $71.9 million, which includes $2.9 million of deferred financing cost amortization and is reflected within the Company's consolidated statements of income and comprehensive income.

The following table summarizes the Company's investment portfolio financing (dollars in thousands):


	Outstanding principal balance
	June 30, 2025		December 31, 2024
Collateralized loan obligations(1)	$	2,452,377	$	1,682,288
Secured credit agreements	156,711		585,042
Asset-specific financing arrangements	29,110		186,500
Secured revolving credit facility	367,841		86,625
Mortgage loan payable	31,200		31,200
Total	$	3,037,239	$	2,571,655

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(1)See Note 5 for additional information regarding the Company's collateralized loan obligations.

The following table details the Company's asset-specific financing arrangements (dollars in thousands):


	June 30, 2025
	Financing										Collateral
Asset-specific financing	Count	Commitment amount		Outstanding principal balance		Carrying value(1)		Wtd. avg. spread(2)		Wtd. avg. term(3)	Count	Outstanding principal balance		Amortized cost		Wtd. avg. term

BMO Facility	1	$	200,000	$	29,110	$	29,097	2.0	%	2.2	1	$	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

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(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.

The following table details the Company's asset-specific financing arrangements (dollars in thousands):


	December 31, 2024
	Financing										Collateral
Asset-specific financing	Count	Commitment amount		Outstanding principal balance		Carrying value(1)		Wtd. avg. spread(2)		Wtd. avg. term(3)	Count	Outstanding principal balance		Amortized cost		Wtd. avg. term
HSBC Facility	1	$	144,114	$	136,011	$	135,451	2.0	%	3.6	3	$	188,995	$	187,958	3.6
BMO Facility	1	200,000		29,110		29,046		2.0	%	2.7	1	38,468		38,365		2.7
Customers Bank	1	23,250		21,379		21,244		2.5	%	2.7	1	29,417		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.

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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