The sharp decline in distributable earnings and the large credit loss expense signal deteriorating credit quality and earnings power. Monitor the Q4 2026 earnings for further credit loss provisions and any impact from the new CLO on net interest margin. The elevated leverage ratio (4.03x) warrants attention to covenant headroom.
Price Chart
Executive Summary
TRTX reported Q3 2026 GAAP net income attributable to common stockholders of $5.8M ($0.08 per diluted share) and Distributable Earnings of $5.1M ($0.07 per diluted share), well below the consensus estimate of $0.26 per share. Net interest income fell to $26.7M from $28.3M a year earlier, and the company recorded an $8.6M credit loss expense. The loan portfolio grew to $5.2B in commitments, but leverage increased sharply with Total Leverage Ratio rising to 4.03x from 3.32x in the prior quarter. A new $50M share repurchase program was announced.
Key Financial Metrics
Key Facts
- GAAP net income attributable to common stockholders of $5.8M ($0.08 per diluted share) vs $18.4M ($0.23) in Q3 2025
- Distributable Earnings of $5.1M ($0.07 per diluted share) vs consensus estimate of $0.26
- Net interest income declined to $26.7M from $28.3M year-over-year
- Credit loss expense of $8.6M in Q3 2026 vs a benefit of $2.6M in Q3 2025
- Total Leverage Ratio increased to 4.03x from 3.32x at June 30, 2026
- Book value per share fell to $10.85 from $10.95 at June 30, 2026
- Loan portfolio grew to $5.2B in commitments, up from $4.3B at year-end 2025
- Board approved a new $50M share repurchase program
- Closed TRTX 2026-FL8, a $1.0B managed CRE CLO, on October 2, 2026
Financial Impact
Distributable Earnings of $0.07 per share missed consensus of $0.26 by 73%; net interest income down 5.7% YoY; credit loss expense swung from +$2.6M benefit to -$8.6M expense
Risk Factors
- Credit loss expense of $8.6M and a $13.0M realized loss on loan write-offs indicate credit stress in the portfolio
- Total Leverage Ratio of 4.03x is near the 4.25x debt-to-equity covenant limit
- Distributable earnings of $0.07 per share cover only 29% of the $0.24 quarterly dividend, raising sustainability questions
- Book value per share declined for the third consecutive quarter
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001630472-26-000031 |
| Document: trtx-20261026exhibit991.htm | 0001630472-26-000031 |
| Document: trtx-20261026.htm | 0001630472-26-000031 |
| Document: 0001630472-26-000031-index-headers.html | 0001630472-26-000031 |
| Document: 0001630472-26-000031-index.html | 0001630472-26-000031 |
| Document: 0001630472-26-000031.txt | 0001630472-26-000031 |
| 8-K Data (Synthetic) | 0001630472-26-000031 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 1d ago | 8-K | $6.08 | awaiting T+20 | — | $6.25 (−2.80%) |
Oct 6, 2026 21d ago | 8-K | $6.05 | awaiting T+20 | — | $6.25 (+3.31%) |
Jun 1, 2026 21w ago | 8-K | $19.29 $17.84 | ▼ −7.52% | ▼ −5.95% | $6.25 (−67.60%) |
Apr 8, 2026 28w ago | DEFA14A | $18.01 $18.68 | ▲ +3.70% | ▼ −3.87% | $6.25 (−65.30%) |
US Market Status
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