TRTX 2026年第3四半期決算説明会：新規融資が牽引しNII 13%増

主なポイント

• TPG Real Estate Finance Trust（NYSE: TRTX）が発表した2026年第3四半期の普通株主に帰属するGAAP純利益は580万ドル、希薄化後1株当たり0.08ドルとなった。
• 1件の集合住宅ローンの所有不動産（REO）への移管に伴う1,300万ドルの実現損失計上後の分配可能利益は510万ドル（希薄化後1株当たり0.07ドル）であった。実現損失計上前の分配可能利益は1,810万ドル（希薄化後1株当たり0.24ドル）で、四半期普通株配当を賄う水準となった。
• 純利息収入は、純収益資産が前期比14%増の49億ドルに拡大したことにより、前期比300万ドル（13%）増加した。経営陣によると、四半期末近くの新規ローン実行は第3四半期の業績への貢献が限られていた。
• TRTXは、コミットメント総額7億7,270万ドル、加重平均クレジットスプレッド3.02%の第一順位抵当ローン9件を新規実行した。過去12か月間における同社のローン投資額は23億ドルに達した。
• 四半期末時点のローンポートフォリオの正常債権比率は100%で、加重平均リスク格付けは3.0であった。CECL（予想信用損失）引当金は7,610万ドルに減少し、コミットメント総額の147ベーシスポイントに相当する。
• 10億ドル規模の不動産ローン担保証券（CRE CLO）であるTRTX 2026-FL8の発行に伴い、非時価評価型の資金調達比率は約85%に上昇した。この取引により約4,300万ドルの純現金収入が得られ、経営陣は調達コストの改善を見込んでいる。

主要財務データ

事業および営業業績

TRTXの投資ポートフォリオは集合住宅と産業用物件に集中しており、投資全体の約75%を占めている。ポートフォリオの平均ローン規模は8,800万ドルで、150を超える担保物件によって裏付けられている。

2025年9月以降、同社は現在のローンポートフォリオの約45%に相当する23億ドルのローンを実行した。経営陣は、貸借対照表の大半が金利が高く物件価値が低い環境下にあった過去2年間に組成されたものであることを強調した。集合住宅向けエクスポージャーの約80%は2024年以降に実行されたものである。

第3四半期中、TRTXは既存ローンに対する将来の融資義務として7,180万ドルを実行し、1億1,960万ドルの返済を受け取った。さらに四半期末以降に7,220万ドルの返済があった。

また、同社は加重平均価格1株当たり8ドルで普通株式120万株を自社株買いし、取得総額は930万ドルとなった。この取得により、普通株式1株当たり純資産価値が0.04ドル増加した。従来の2,500万ドルの取得枠を使い切った後、取締役会は新たに5,000万ドルの自社株買いプログラムを承認した。

TRTX 2026-FL8は約10億ドルの担保を証券化したもので、その約95%が集合住宅および産業用物件であった。FL6およびFL7とともに、30か月の再投資期間により、TRTXは資本を回収して新たなローンへと再投資する追加的な余力を得ることになる。

リスクと注視すべき領域

経営陣は、インフレの長期化、高金利、金融引き締め、一部セクターにおける物件価値の下落、古い資本構造に対する借換圧力を指摘した。また、金利上昇により買い手と売り手の価格提示の乖離が拡大し、不動産取得の動きが低下している。

1,300万ドルの実現損失は、所有不動産（REO）へ移管された集合住宅ローンに起因するものである。経営陣は、地元の市場低迷、借り手の経営難、投資不足を挙げ、この状況を個別物件および借り手固有の問題と説明した。同資産には全額引当金が設定されていたため、この移管が純資産価値に影響を与えることはなかった。

サンベルト市場における別の集合住宅ローンについては、空室率の上昇を受けて条件変更が行われた。経営陣はこの問題を一時的なものと位置付け、条件変更によって物件を再び安定化させる計画が策定されたと述べた。

新規ローンのクロージング期間が長期化しており、四半期ごとの業績タイミングに対するプレッシャーが生じる可能性がある。また、TRTXは目標とするレバレッジおよび貸借対照表規模に近い水準で当四半期を終えたため、今後のポートフォリオ活動は新規実行と返済の整合性を図ることに依存する度合いが高まっている。

アナリスト質疑応答の要点

• 金利感応度と引受：経営陣は、最近の新規実行ローンが高金利環境に対応した構造になっており、概して金利キャップが含まれていると述べた。ローンの最低金利（フロア）は以前は2.5%から3%程度であったが、上昇傾向にある。
• ローンスプレッドの動向：TRTXがFL8を市場に投入して以来、CRE CLOの資金調達コストは約25ベーシスポイント拡大していた。経営陣は、これが新規ローンの値決めに影響を及ぼし始めているものの、TRTXはすでに自社の負債をよりタイトな水準で確定させていると述べた。
• 集合住宅の値決め：築浅のクラスAおよびA+の集合住宅ローンのスプレッドは約15〜30ベーシスポイント拡大していた。クラスBおよびCの集合住宅向けスプレッドは約25〜50ベーシスポイント拡大していた。
• 新規実行パイプライン：不動産借り手、特に集合住宅および産業用物件における資金ニーズが依然として高いため、経営陣はパイプラインを堅調と説明した。ただし、新規物件の取得自体は引き続き限られている。
• ポートフォリオの拡大：レバレッジが目標水準に近いため、経営陣はローンポートフォリオが1案件追加されれば1案件退出するという入れ替えベースでの運用が強まると予想しており、これにより分配可能利益のボラティリティが抑制されると考えている。
• REO戦略：TRTXのREOポートフォリオは引き続き分配可能利益にプラスの寄与をしている。集合住宅1物件が意向表明書（LOI）の締結を終え売却プロセスの最終段階にあり、同社は売却タイミングを厳選できる状況にある。
• 負債の保護：FL8の実施後、ローンファイナンスの約85%が非時価評価型となった。経営陣は、長期かつ期間がマッチした構造により、過去の満期案件やストレス資産を管理する上での柔軟性が得られると述べた。

決算説明会文字起こし全文

決算説明会の完全なトランスクリプト

経営陣による説明

Operator

Welcome to TPG Real Estate Finance Trust Third Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note that this call is being recorded. I'll now turn the conference over to Ashvin Rao. You may begin.

Ashvin Rao

Good morning, and welcome to the TPG Real Estate Finance Trust Earnings Call for the Third Quarter of 2026. Today, I'm joined by Doug Bouquard, our Chief Executive Officer; Brandon Fox, our Interim Chief Financial Officer; and Ryan Roberto, our Head of Portfolio Management and Capital Markets. Doug, Brandon and Ryan will provide commentary regarding the company, its performance and the general economy, and we'll answer questions from call participants.

Yesterday afternoon, we filed our Form 10-Q, issued a press release and shared an earnings supplemental, all of which are available on the company's website in the Investor Relations section. This morning's call and webcast are being recorded. Information regarding the replay of this call is available in our earnings release and on the TRTX website. Recordings are the property of TRTX and any unauthorized broadcast or reproduction in any form is strictly prohibited. This morning's call will include forward-looking statements, which are uncertain and outside of the company's control. Actual results may differ materially from those set forth in or implied by these forward-looking statements.

For a discussion of risks that could affect results, please see the Risk Factors section of the company's latest Form 10-K and Form 10-Q. The company does not undertake any duty to update our forward-looking statements unless required to do so by law. We will refer during today's call to certain non-GAAP financial measures, which are reconciled to GAAP amounts in our Form 10-Q, our earnings release and our earnings supplemental, all of which are available in the Investor Relations section of our website. Now I'll turn the call over to Doug.

Doug Bouquard

Thank you, Ashvin Rao. Over the past quarter, the U.S. economy continued to navigate a complex and evolving environment. While economic growth has remained relatively resilient and labor market conditions generally healthy, inflation has proven more persistent than many anticipated, contributing to a prolonged period of elevated interest rates and tighter financial conditions. As a result, businesses and investors continue to adapt to a higher cost of capital that differs meaningfully from the conditions that prevailed for much of the last decade.

Within real estate, these dynamics have created both challenges and opportunities. Elevated rates, declining property values across certain sectors and significant refinancing activity continue to pressure many real estate owners. With that backdrop, we continue to view the current market as an attractive investing environment, and we remain highly disciplined in our approach. We are not pursuing growth for growth's sake, but rather seeking to deploy capital into opportunities that offer compelling risk-adjusted returns.

Importantly, one of our greatest advantages in the current environment is the breadth and depth of TPG's integrated real estate debt and equity platform. The ability to evaluate markets through both the debt and equity lens provides valuable insight into property values, capital flows, refinancing risks and emerging trends across the market. This perspective helps us identify risks earlier, make better underwriting decisions and proactively position the portfolio for changing market conditions.

Against this backdrop, TRTX continues to execute on the business plan we outlined several years ago. During the third quarter, we closed $773 million of new investments and increased net earning assets by $600 million. Since September 2025, we've originated $2.3 billion of loan investments, representing nearly 45% of our current loan portfolio and contributing to a 36% year-over-year growth in net earning assets while maintaining a disciplined approach to underwriting, portfolio construction and risk management. Notably, that growth is beginning to translate into earnings.

Net interest income increased approximately 13% from the second quarter and a significant portion of our third quarter originations closed toward the end of the quarter and did not contribute meaningfully to third quarter earnings. As these loans begin contributing over a full reporting period, the earnings capacity of the platform will become increasingly evident. From a credit perspective, portfolio performance continues to validate the disciplined approach we have taken throughout the cycle. Despite an evolving real estate market, our earnings remain resilient without any meaningful volatility to our risk ratings or CECL reserves.

Throughout this period, we have sought to be proactive rather than reactive. We have maintained a transparent approach to risk ratings, established reserves that accurately reflect evolving market conditions and actively manage credit exposures as market fundamentals changed. While these decisions have not always been easy, we believe they have positioned the company favorably relative to competitors that continue to work through these credit issues for investments made prior to 2023. Our portfolio consists of 59 loan investments secured by over 150 underlying properties, representing $5.2 billion of total commitments.

The average loan size is $88 million and multifamily and industrial assets comprise approximately 75% of our investment portfolio. The diversification of the portfolio, combined with our continued focus on institutional sponsorship and high-quality assets positions us well to navigate a challenging market environment while delivering stable earnings. We have applied the same proactive philosophy to liability management. We have diversified our funding sources, extended liability duration, reduced mark-to-market exposures and improved liquidity. As a result, the balance sheet optimization we have discussed throughout this cycle is now largely complete.

Today, approximately 75% of our leverage is funded through CRE CLOs and our Term Loan B, providing stable long-duration capital that supports earning visibility, dividend stability and continued portfolio growth. An important example of this progress is the recent closing of FL8, our eighth CRE CLO. The transaction securitized approximately $1 billion of collateral that was approximately 95% multifamily and industrial and is expected to be accretive to our cost of funds and increased our percentage of non-mark-to-market liabilities to over 85%. We are particularly pleased with this execution given the subsequent widening of CRE CLO spreads and softer market conditions.

Beyond improving our financing profile, FL8 established a new 30-month reinvestment period that, when combined with the existing reinvestment in FL6 and FL7, provides significant flexibility to recycle capital and continue to grow earnings in the coming years. This embedded reinvestment capacity represents a meaningful competitive advantage and further differentiates TRTX within the real estate credit sector. Loan spreads widen from current levels. The reinvestment vehicles provide us with the ability to capitalize on those opportunities and potentially enhance future earnings power.

We remain focused on allocating capital where we can generate the greatest value for shareholders. During the quarter, we fully exhausted our existing $25 million share repurchase plan, repurchasing shares of what remains a meaningful discount to book value. Consistent with that belief, our Board subsequently approved a new $50 million share repurchase plan. We view these repurchases as a compelling use of capital and an effective way to create long-term shareholder value, while our shares continue to trade at levels that understate the quality of the platform and its earnings potential.

As we look ahead, TRTX is operating from a position of considerable strength. Throughout the cycle, we have proactively managed both sides of our balance sheet, strengthened our liability structure and created significant embedded reinvestment capacity. We continue to believe the market is not fully recognizing the earnings stability embedded within our platform or the quality of our investment portfolio. We acknowledge that this higher interest rate environment will continue to stress legacy capital structures. Fortunately, the majority of our balance sheet was originated over the past 2 years, and these investments were sized and structured in a higher rate environment.

We are well positioned to continue delivering resilient earnings given TRTX's granular diverse portfolio in tandem with a low-cost, stable liability structure. The significant increase in our Q3 NIM is beginning to show the impact of our 2026 investments and the quality of the company's earnings. The foundation we have built leaves TRTX exceptionally well positioned not only to navigate this cycle, but to further differentiate from our competitive set while creating long-term value for shareholders. With that, I will turn the call over to Brandon to discuss our financial results in greater detail.

Brandon Fox

Thank you, Doug, and good morning. For the third quarter of 2026, TRTX reported GAAP net income attributable to common stockholders of $5.8 million or $0.08 per diluted common share. Distributable earnings were $5.1 million or $0.07 per diluted common share after a $13 million realized loss associated with the conversion of one multifamily loan to real estate owned. Distributable earnings before realized losses were $18.1 million or $0.24 per diluted common share, covering our common stock dividend for the quarter. Net interest income increased $3 million or 13% from the second quarter, reflecting quarter-over-quarter growth in our loan portfolio.

As Doug mentioned, we fully utilized the remaining capacity under our share repurchase plan. During the quarter, we repurchased 1.2 million shares of common stock at a weighted average price of $8 per share for a total consideration of $9.3 million. These repurchases increased book value per common share by $0.04. Subsequent to quarter end, our Board approved a new $50 million share repurchase program, doubling the size of our prior authorization. Book value per common share was $10.85 at quarter end, a decline of $0.10 from June 30, primarily reflecting credit loss expense associated with the significant growth in our loan portfolio and macroeconomic conditions during the quarter.

For the 3 months ended September 30, we made 9 first mortgage loan investments, representing total commitments of $772.7 million at a weighted average credit spread of 3.02%, funded $71.8 million of future funding obligations on our existing loans and received $119.6 million of loan repayments, including full multifamily loan repayment of $106 million. Subsequent to quarter end, we received $72.2 million of additional loan repayments related to full multifamily repayment and industrial partial repayment.

Quarter-over-quarter, net earning assets increased by $599.5 million or 14% to $4.9 billion. Total loan commitments increased to $5.2 billion. Over the last 12 months, we made $2.3 billion of loan investments, contributing to the 36% year-over-year growth in our net earning assets through September 30. At quarter end, our loan portfolio was 100% performing and our weighted average risk rating remained unchanged at 3.0. Our CECL reserve declined by $4.5 million to $76.1 million or 147 basis points of total loan commitments compared with 179 basis points at June 30.

The decrease reflects the conversion of a multifamily loans to REO during the quarter. The conversion to REO did not have an impact to book value because it was fully reserved. This reduction in the CECL reserve was partially offset by growth from the loan portfolio. From a capital markets perspective, following quarter end, we closed TRTX 2026-FL8, a $1 billion managed CRE CLO and placed approximately $820 million of investment-grade securities with institutional investors. The issuance was leverage neutral to the company, generated nearly $43 million of net cash proceeds and is expected to further improve the company's cost of funds.

Following the issuance, non-mark-to-market financing for our loan portfolio increased to approximately 85%, further strengthening the durability of our liability structure and providing additional flexibility to support future investment activity. We ended the quarter with near-term liquidity of $291.6 million, consisting of $70.8 million of cash on hand, including amounts held to satisfy liquidity covenants, $109.3 million of undrawn capacity under secured financing arrangements, $100 million of undrawn capacity under our corporate revolver and $11.5 million of CRE CLO reinvestment proceeds held at the trustee.

We also held $187.2 million of unencumbered loan investments eligible to be pledged under existing financing arrangements. Our liability structure was 78.8% non-mark-to-market financing and our weighted average cost of funds was 1.81% compared to 1.95% a year ago. Total leverage increased to 4.03x from 3.32x at June 30, reflecting our investment activity during the quarter. At quarter end, we had approximately $1.2 billion of available financing capacity to support loan investment activity and remained in compliance with all financial covenants. With that, we welcome your questions. Operator?

Operator

[Operator Instructions] Our first question comes from the line of Richard Shane with JPMorgan.

質疑応答

Richard Shane

Look, you guys had pointed out the recency of your portfolio and transactions that are structured to reflect the new environment. I am curious, obviously, given how much rates even moved during the third quarter, how you think about that? And specifically, I'm curious how it impacts transaction structure and sort of meeting of the minds for buyers, sellers and lenders as hurdle rates change so quickly and that potentially impacts property values. Does that slow transactions? Or should we -- even though the portfolio has the advantage of being constructed more recently, does the latest rate shift create some incremental concern?

Doug Bouquard

Thanks, Rick. I think first, what we see within our portfolio, I'd say, kind of more locally across our integrated debt and equity business is that the first order here has just been, I think, a continued drop in acquisition activity, simply put buyer and seller on the multifamily side, that gap continues to widen. So, I think the sort of the first result of all this is just a drop in activity. I would say, secondly, as we think about sort of what the right kind of stabilized debt yield should be and sort of how we think about cap rate evolution, we've been pretty consistent, kind of trying to make loans that are reflective of an elevated rate environment.

And I know that you highlighted it, but just the way our book is positioned. And if you even kind of go into multifamily, 80% of our multifamily exposure is originated 2024 and later. And then actually, if you kind of look at some of our anticipated repayments we expect that, that can really increase closer to 90%. So, our current balance sheet is, again, very much reflective of, I would say, a market where rates were higher, values were lower within multi and industrials and really all other sectors. I think that really what's happening on the real estate credit side is we are really starting to see.

I think, borrowers think long and hard about how they think about capital allocation going forward, particularly for some of the sort of legacy exposures that I think people have, and we're seeing a lot of those loans. So, a lot of those loans are sitting on others' balance sheets. They're loans from 2021 and sometimes earlier. The loans are coming due. And when they come to us for a new loan, that likely is going to require some amount of cash in. We actually have a deal in our pipeline right now from a institutional sponsor Class A real estate where they're actually going to be paying off a loan from the agencies, but that's going to require a cash equity infusion from our capital base.

That's a pretty unique sort of flow of capital where you're seeing an agency loan need to get paid off and they're coming to a commercial mortgage REIT with the cash in to be able to effectuate the transaction. So, that's a little bit of what we're seeing. And I would say, lastly, local to our portfolio, kind of what we're seeing bottoms up is I think the cost of owning a home, the cost of borrowing if you're a first-time purchaser continues to be elevated, and that's really kind of kept a really strong amount of demand, I would say, across multifamily generally.

Just when you look at -- when you compare sort of your sort of mortgage payment to income relative to rent to income, it still is very favorable towards renting. And that seems to be a dynamic that again is really kind of buoying what I'll call the sort of demand side of the equation in terms of tenants.

Richard Shane

Got it. Okay. That's helpful. And if I may ask one follow-up. Look, as you're responding to my question, it occurs to me that when we're looking left, it's the punch from the right that really determines the outcome. And so we're all sitting here higher for longer. But presumably, eventually rates are going to move lower. I am curious in this environment, are you able to capture attractive floors on the loans that you're making, what sort of levels? And is there power there in this environment given how high rates are? Is that something that's a really contentious deal point?

Doug Bouquard

Yes. Look, I think I would say that the floors that we're able to get have been kind of slowly creeping up. I feel like most of what we were doing earlier, the sort of rate floor probably had somewhere sort of in like the 2.5% to 3% range, generally speaking, and we're starting to see that drift higher. I think in a kind of competitive process where we'll see the trade-off is there can be a debate around sort of loan spread relative to rate. And if I can get a wider loan spread and maybe a lower rate floor, in some cases, we'll pursue that. In other cases, maybe we want a slightly tighter loan spread and be able to kind of get a higher rate floor. But that definitely is value that we've been able to capture.

And then again, you think about like the risk within our current balance sheet, given it's all largely newly originated, those loans are all structured with interest rate caps and those assets generally tend to be in transition. So, really a sort of rate move like this locally and sort, of in the near term has less effect in terms of our current exposure. But on new business, the sort of last thing I'll add is we have seen back leverage spreads, if you just look at the CRE CLO market have come wider.

When we brought our CRE CLO to market the first week after Labor Day to now, those weighted average cost of funds are, give or take, about 25 basis points wider, and that tends to flow into loan spreads, not instantly, but probably over a couple of weeks, and we're starting to see that right now with the loans that we're pursuing. And again, our balance sheet is really well positioned to capture that widening loan spread because we've effectively locked in our liabilities at a tighter point in the market.

Richard Shane

Got it. Well, paradoxically, I can't believe it's almost November and at the same time, the week after Labor Day seems like a lifetime ago. So, appreciate both sides of that.

Operator

The next questions are from the line of Tom Catherwood with BTIG.

William Catherwood

Doug, maybe kind of going to the originations, obviously, strong this quarter, definitely better than feared. When -- as you look at your forward pipeline, has there been a slowdown in either the entire pipeline or in kind of specific asset classes given the higher rates? And then along with that, do you expect origination activity to more match repayments now that you're at the upper end of your leverage targets?

Doug Bouquard

Yes. And I'll cover the first. So, I would say that what we have seen in terms of just our pipeline is there remains still a tremendous need for capital within real estate lending broadly and then specifically within multi and industrial, which is where we focus. I think that perhaps the only challenge lately has been the sort of time from when we sign a deal up to when it closes is probably more what kind of keeps me awake because that, of course, can have -- can put pressure in terms of our earnings. But I'd say our pipeline still looks incredibly strong.

I'm not seeing really a big kind of drop-off at all with the only thing of note being new acquisitions are few and far between. I mean that's been consistent for, frankly, the last 2 or 3 years, but that seems to be a trend that is -- that doesn't really show kind of any sign of abating. And I'd add secondly, to your kind of part 2 of the question, we're at a point now where as we've sort of approached our target leverage and our sort of target balance sheet size that you're exactly right, where sort of our DE will sort of be less levered to sort of our minute-to-minute pipeline, and we're definitely at a point now where it's more of a kind of one in, one out in terms of our loan portfolio, which I think adds 2 things.

One, provides a little bit more kind of stability in terms of our DE. And then we look at the sort of size and scale and diversity of our portfolio, it just allows us to sort of, I think, manage some of the volatility quarter-to-quarter a little bit easier. I think as you guys have all been supporting us as we've been net growing our balance sheet, and that can be -- sometimes you feel like you make 2 loans and then 1 loan pays off and sort of getting that balance right as you're growing can be challenging, but we really kind of hit, I think, a pretty nice point in terms of the size of our balance sheet and our liability structure again, sort of allows us to be able to risk manage throughout any type of real estate cycle.

William Catherwood

Appreciate that, Doug. And just one follow-up to that for me. The other thought of or the ability besides loans in and out with repayments and originations is repatriating capital from the REO book. And that had been a plan earlier this year, obviously. But with higher rates, I assume that the transaction market is somewhat frozen. So, maybe in that higher interest rate environment, where do REO monetizations sit in your list of either priorities or expectations through the balance of '26?

Doug Bouquard

Yes. So, I would say that really no change to our strategy and pacing there. We are Well, first, I think just as a reminder, our REO portfolio is a positive contributor on a quarterly basis to our DE. So, I always like to remind everyone that it's not a drag. And frankly, it's a positive generator of earnings. So, the sort of rush for urgency that maybe others have where it's a negative drag, we're in a very different spot. Secondly, we are right now in the final stages of marketing one of our multifamily properties. We do have an LOI in place.

And as that transaction becomes more certain, we'll make sure to update the market accordingly. But again, from a timing perspective and its effect in terms of our business plan, I'd say no major change. And again, I think the fact that our portfolio is generating positive DE kind of allows us to be opportunistic in terms of when we sell and maximize value for shareholders.

Operator

Next question is from the line of Christopher Muller with Citizens JMP.

Christopher Muller

So, I wanted to ask on the foreclosure. I guess, first off, what kind of drove the quick turnaround from 4 rating to foreclosure, especially given that it was already modified? And looking at the 27% discount to par on multifamily seems a little high. Is that market specific or property specific? Or are you guys seeing multifamily valuations trend lower in general?

Doug Bouquard

Yes. I think this is actually very idiosyncratic. I mean we had moved the risk rating on this roughly about a year ago, one. And I think that really the challenge of this asset was really a combination of a weak market and a borrower that was under a certain amount of distress and sort of had begun to, I'd say, underinvest within that asset. So, we rated it as a 4.

And then as Brandon has shared, this conversion to REO was, again, very idiosyncratic specific to the property, less to do with kind of what we're seeing broadly. And our plan with the asset is simple in terms of our plan is to -- now that we own it, stabilize it and then sell it in the future. But again, it's a relatively small asset in the context of our balance sheet and again, was a little bit more idiosyncratic relative to both a market and a borrower that was in distress.

Christopher Muller

Got it. And I see there was also another multifamily loan that was modified in the quarter. Can you just provide some details on that? What was the prior rating? Where was the property located and kind of what drove the need for modification there?

Ryan Roberto

Thanks, Chris. This is Ryan. Yes, this was a property located in Sunbelt market and just saw given some of the migration trends that we've seen, just kind of a spike in vacancy at the property. So, again, more of a temporary, kind of onetime thing. So, again, we modified it to provide what I'll call solid footing and a clear plan, to kind of restabilize the property. So, again, I think things are heading in the right direction there. And again, I would say this is a regular way of risk management of what we do in the portfolio throughout each quarter.

Operator

[Operator Instructions] The next question is from the line of Gabriel Poggi with Raymond James.

Gabriel Poggi

Obviously, the world has changed a lot in the last 45 to 60 days. And I appreciate the fact that TRTX's book is very much newer vintage. Can you guys talk about just because of the focus of the market on legacy credit that you still have, I use the word legacy, it's a little bit older vintage, but some pending maturities that you have due in the fourth quarter, early next year. Just talk to how your plan of attack is on those assets -- on those loans.

Doug Bouquard

Yes. Yes, sure. So I'd say, first, we've built, I think, a lot of credibility and we provide a lot of transparency over the years from both the CECL and risk ratings perspective. So, I think when anyone asks about our current balance sheet, I always point them to how we risk rate and the reserves that we take, that really is the sort of guiding light in terms of our view around the risk. Now when you think about -- to your point, there's always sort of tactical side, but we've also been very consistent that when we look at a loan and as long as the borrower is committed to the asset and as long as our LTV, we feel like is at a substantial discount to today's value, we are more than willing to be working with that borrower if they need a little more time or relief on a certain item.

I think that when that tone changes is where if we have the opinion that our loan is out of balance or that the borrower's going to be less committed to the asset, then frankly, we would sort of change our posture. So, I think the sort of high-level answer, of course, would be, I think our CECL and our risk ratings, both historically how we've approached it and then also from a sort of resolution perspective in terms of where we sold assets relative to carrying value and I think just how little volatility we've had within CECL and risk ratings. I think that should really be the sort of guiding light I'd say lastly, I think a really important point of all of this really gets to our liability structure.

I think it is one of the most remarkable weapons that we have, and I give our team a lot of credit for what they've done over the years. And these things take years to really optimize. But when you look at our liability structure, 85% of that currently is non-mark-to-market. It's all matched term, long duration. So, look, in a downside scenario, which is what we as lenders are always focused on, I like the fact that our liability structure gives us a lot of flexibility to be able to risk manage through a different type of real estate market.

If things were to get better or to get worse, again, we've got a very stable long duration, non-mark-to-market heavy liability structure. And that's what allows you to, frankly, maximize NPV and be able to deliver for shareholders in terms of value.

Gabriel Poggi

Very helpful, thorough answer. One follow-up, if I can. And you guys were proactive in getting the last CRE CLO done when you did. But obviously, CRE CLO spreads have widened a bit even to the top of the stack. How has that translated to the lending environment, what you're seeing in spreads across kind of all subsectors, not only multi, but office, et cetera, where there may be relative value that you think is attractive in this higher rate environment?

Doug Bouquard

Yes. So, I think it's very much a moving target, I'd say, within multifamily and industrial. I'd say that spot in terms of what we're seeing within our pipeline. I'd say it's 2 things. One, for what I'll call Class A, A+ newly built multifamily, that -- I would say loan spreads are probably out about 15 to 30 basis points, very much kind of varies based on the deal. I think that where we've seen more spreads widening, and I'd say probably more in the tune of 25 to even 50 basis points wider is kind of more Class B, C real estate, particularly multifamily where there's been fewer assets trading. It's a slightly older asset, slightly lower quality. I think that's where we're seeing kind of spreads move wider.

But again, at the same time, just in the past week, there has been some healing in terms of both where the 10-year is and also where the front end is pricing. So, pretty quickly, those spreads can kind of move in that direction. But I'd say simply put, spreads are wider within multifamily. I think it really kind of varies largely, I'd say, on just the quality of the asset. Outside of multi, I would say industrial has been very resilient. I think that industrial fundamentals and if you look at the implied cap rates, a lot of the publicly traded industrial REITs, that continues to be a sector that has, I would say, performed well. We've seen a lot of positive leasing velocity across the exposure that we have.

So, we're seeing both, I would say, spreads remain somewhat firm for industrial and frankly, not seeing a ton of flow there as most of those assets have sort of termed out. I think we're seeing, again, just a lot more flow coming in on the multifamily side. And then as you zoom out sort of beyond multi and industrial where we have some smaller portfolios, I mean, that's really where we're a sharp shooter, right? We're looking at office, mixed-use, hotel, that's where we're probably passing on 99% of the deals that we see.

So, it's kind of hard to comment on sort of how much wider spreads have gone. I feel like office specifically, spreads have just been generally wide. So, I feel like this rate move has actually probably affected that sector less. And I think that more of the effect of the move in rates has been on what I'll call the sort of tighter cap rate asset classes like a multifamily and industrial.

Operator

At this time, I'll hand the call back to Doug for closing remarks.

Doug Bouquard

Thank you all for taking the time this morning for our quarterly earnings call, and we look forward to updating you on progress in coming quarters. Have a great week.

Operator

This will conclude today's conference. You may disconnect your lines at this time. We thank you for your participation. Have a wonderful day.