Thank you. Good morning, everyone, and welcome to the first quarter 2026 earnings call for TPG RE Finance Trust.

With me on the call today are TJ Durkin, our CEO and President; Nick Smith, our Chief Investment Officer; and Anthony Rossiello, our Chief Financial Officer. Before we begin, please note that the information discussed in today's call may contain forward-looking statements.

Any forward-looking statements made during today's call are subject to certain risks and uncertainties which are outlined in our SEC filings, including under the headings "Cautionary Statement Regarding Forward-Looking Statements," "Risk Factors," and "Management's Discussion and Analysis." The company's actual results may differ materially from these statements.

We encourage you to read the disclosure regarding forward-looking statements contained in our SEC filings, including our most recently filed Form 10-K for the year ended December 31st, 2025, and our subsequent reports filed from time to time with the SEC. Except as required by law, we are not obligated and do not intend to update or to review or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

During the call today, we will refer to certain non-GAAP financial measures. Please refer to our SEC filings for reconciliations to the most comparable GAAP measures.

We will also reference the earnings presentation that was posted to our website this morning. To view the slide presentation, turn to our website, www.mitt.tpg.com, and click on the link for the Q1 2026 earnings presentation on the homepage.

Again, welcome to the call, and thank you for joining us today. With that, I'd like to turn the call over to TJ.

Thank you, Jenny. Good morning, everyone.

During the first quarter, we experienced a familiar dynamic. In the beginning of the quarter, the company benefited from additional moderation of interest rate volatility, lower rates, and strong residential credit fundamentals, along with increased demand for risk across the entire non-agency capital stack from investors.

However, these favorable conditions abruptly unwound in March, following the escalation of the conflict in the Middle East, weighing on asset valuations broadly. Despite the challenging macro backdrop that put pressure on net book value for the first quarter, declining from $10.48 to $9.97, we maintained a disciplined leverage profile and remained focused on executing our core strategy of rotating capital into higher-returning residential credit strategies and scaling profitability at Archwest.

These efforts produced EAD of 26 cents for the first quarter, more than covering our most recently declared dividend of 24 cents. Further, we'd like to note that, although it's too early in our process to comment on April book value, we believe we have already recovered at least 50% of the previous quarter's unrealized book value decline.

Before turning the call to Nick to go into more details, I would reiterate that we have consistently executed on our previously stated objectives and believe we have clear line of sight into more powerful ROEs and EAD as we look ahead into 2026. We have been able to raise our dividend in four of the last six quarters as we continue executing on our stated objectives discussed on our last quarter's call.

Look forward to continuing to share our progress in the coming quarters. I'll now turn the call over to Nick.

Thanks, TJ, and thank you, everyone, for joining us today. We ended the first quarter with an investment portfolio of $8.1 billion.

Our activity remained focused on home equity and non-agency credit where we continue to see attractive risk-adjusted returns and strong structural demand. We securitized approximately $500 million of home equity loans, building on a partnership formed with a market-leading home equity originator a few years ago.

Home equity remains core to our strategy, and we believe this segment will provide the company compelling opportunities as this residential housing segment continues to grow. In addition to this transaction, we executed another securitization subsequent to quarter-end comprised of approximately $430 million non-agency residential mortgage loans.

Importantly, we maintained our disciplined leverage profile. The company's economic leverage stands at a conservative 1.7 turns.

While we have been able to grow earnings at these leverage ratios, we believe we can prudently move this up over time to drive additional earnings power. The credit performance of the company's residential portfolio continues to be a core strength.

Serious delinquencies in our non-agency portfolio stand at just 1.3%, while our home equity portfolio is even lower at .4%. The portfolio is comprised of high-quality borrowers with significant equity in their homes.

On average, the non-agency and home equity portfolios have a low 60% loan-to-value. On the commercial side, we are seeing positive momentum as we manage our legacy WMC commercial holdings toward exit.

We are focused on de-risking these positions, which will further free up equity for redeployment in our core strategies, higher-returning residentials. Moving on to Archwest.

Archwest is reaching a clear inflection point. Despite the macroeconomic headwinds this quarter, Archwest delivered a meaningful contribution to our EAD of approximately 4 cents per share.

We saw continued strength in lock volumes of $1.3 billion, a 25% increase year-over-year, driven by strong non-agency originations. Our decision to increase ownership stake to 66% is starting to pay off as the platform gains market share and improves gain-on-sale margins.

Before handing the call over to Anthony, I'd like to close with some thoughts around our strategy and the macro outlook. We entered the second quarter with significant momentum.

While market volatility impacted our book value this period, we see a path to recovery. Since quarter-end, we observed an improving, though admittedly fragile, macroeconomic environment.

If this continues, we expect a return to trends we saw in the earlier parts of this year and believe this environment is likely to lead the market to revisit the tights of the year, which could reverse much, if not all, of book value decline we saw in Q1. As TJ mentioned in his remarks, at this point, we believe we've already recovered at least 50%.

We are well-positioned to navigate this volatility and continue to grow earnings while delivering superior risk-adjusted returns. Anthony, over to you.

Thank you, Nick, and good morning, everyone. During the first quarter, we continued to focus on rotating capital into our home equity portfolio.

We successfully executed one home equity loan securitization and maintained our momentum in the securitization markets with an additional deal in April. Most importantly, we realized continued strength in our earnings available for distribution, or EAD.

This performance was supported by earnings growth at Archwest despite a volatile quarter, which resulted in our EAD once again exceeding our increased dividend level. Reflecting this ongoing improvement in earnings, we announced our fourth dividend increase since the beginning of 2025, raising our quarterly dividend to 24 cents per share.

Moving to our financial results, book value decreased 4.9% to $9.97 per share, resulting in a -2.6% economic return when considering our 24-cent dividend. We reported a GAAP net loss of approximately $8.7 million, or 27 cents per share, entirely driven by net unrealized losses on our investment portfolio, which were partially offset by gains on our hedge portfolio and investment in Archwest.

Overall, these unrealized losses reflect the March macroeconomic volatility, which drove rates higher and caused spreads to widen. Despite these unrealized losses, which have begun to retrace in April, the company's operating performance remained strong, delivering durable net interest income, earnings growth at Archwest, and a controlled expense load, all of which supported our increased dividend and demonstrate the embedded value of our strategy.

Specifically, EAD of 26 cents per share increased from the prior quarter and fully covered our 24-cent dividend. Net interest income, including hedge income, was 67 cents, which exceeded 45 cents of operating expenses and preferred dividends to generate net earnings of 22 cents per share.

Archwest contributed an additional 4 cents to EAD, driven by continued strength in origination volumes and improved gain-on-sale margins. While the performance of our investment portfolio and Archwest delivered a double-digit ROE on book value, we see meaningful upside as we optimize the balance sheet.

Specifically, the deployment of liquidity from unlevered home equity loans and the resolution of non-accrual commercial loans represent clear catalysts to deploy capital into higher-yielding residential investments, further enhancing shareholder returns. Lastly, we ended the quarter with approximately $100 million in total liquidity, consisting of $49 million in cash, $50 million of committed financing on unlevered home equity loans, and $1 million of uncovered agency RMBS.

This concludes our prepared remarks, and we'd now like to open the call for questions. Operator?

Thanks. Can you talk about your thoughts on continuing to increase the dividend versus some ability to retain some capital, just given your commentary that you expect further upside in earnings power?

Doug, it's TJ. Good to hear from you.

I think we're running fairly conservative economic leverage. In terms of having excess liquidity for margin call risk, I think we've done a good job of alleviating a cash drag, and then as we think about growing earnings power, it's continuing to rotate the equity out of the CRE loans, which I'm happy to talk about, and then other capital rotation from potentially calling seasoned deals, etc.

I think we see a pretty linear path of how to rotate capital without needing to reserve a ton for other purposes. All

right, and then, I guess, just as you think about that increased earnings power, how do you think about how much of that kind of gets passed through the dividend versus how much of that could be retained to support future growth?

I think we're looking to continue to pass that through to our shareholders in the form of the dividend and satisfy all the REIT tests, so.

Great. Appreciate that.

TJ, if I could take you up on your offer to kind of talk a little bit more about the CRE loans and kind of how we should think about the timing of resolution there and freeing up that capital.

I think big picture, we're making good progress on the remaining assets. It's taking longer than any of us would like.

I think the progress is evidenced we've been able to extend our facility with our lender out six months, we have clean financing through September of this year. From an asset perspective, I would really sort of break it up into three distinct situations.

The retail asset sale process is moving along nicely. We would hope to have much more detailed information to share with you on next quarter's call.

Then two of the four hotel assets have a signed LOI and we're progressing accordingly, albeit behind probably where the retail asset process is. Then I think the last two hotel assets are going to be behind that and take a bit longer, and we're working through those locations and hope to have them sort of wrapped up by the end of this year, but it may drift into '27 for the last two.

Great. Appreciate it.

Thank you.

Thank you. Good morning.

Could you give us some more information on MITT's ability to exercise call rights? How much of that remains to be executed?

How do you feel about the current [rate?] [unclear]?

Thanks for the question, Marissa. As we've stated in previous prepared remarks and Q&A historically, a lot of that had to do with outright levels of spreads and interest rates.

Obviously, over the last quarter, we saw retracement to higher rates, higher volatility, higher spreads. Into the beginning of this quarter, obviously, we've gotten a good amount of that back, maybe not completely in the front end of the curve.

All of these elements play into what the economics are on calling transactions. We're not going to hold out for every last penny, but we'll look for stabilization of the market, which is happening pretty quickly.

Hopefully, we have good news in the coming quarters on actually executing on them and then sort of the path forward from there. That answers your question?

It does, thank you. Now could you also expand on the opportunity in agency-eligible loans?

What is your outlook there for volume and as they age and returns?

On the agency-eligible side, we've done a decent amount of this issuance in previous years, previous quarters. A lot of our focus has really been more on higher-returning opportunities in the non-agency and home equity space.

There's still compelling opportunities, although less compelling in our view. There have been market participants that have entered that space with lower cost of capital, which maybe makes it a little bit less interesting to ourselves.

That being said, I do expect to see others continue to grow and participate in that marketplace.

Thank you, appreciate the color.

Thank you. Good morning.

I just want to follow up on earnings power and ROEs. You're generating I think roughly 10% core ROEs today.

I'm curious where you think that can trend, what ROE targets are attainable and over what time frame as Arch continues to be a larger contributor to EAD and as you rotate capital into higher-returning resi investments as the WMC investments mature?

Yeah. Thanks for the question and thanks for dialing in.

This is Nick. When you think about growing the ROE of the company, it's going to be derived from three primary sources, which we've said over previous quarters.

Really, the returning of equity capital in the commercial book, growing ROEs at Archwest, and then down the calls. All of that gives us line of sight into sort of achieving the ROEs that are being achieved across the broader business as we've just disclosed in the earnings presentation.

That's really the path forward is really just taking those pockets and redeploying capital. Obviously, on our Archwest side, that's less of a redeployment story, but we believe that there's strong momentum there, and we expect that to continue.

Great. Then just on Archwest, can you discuss a little bit what you've seen so far in the second quarter, just high-level trends, volumes?

Mortgage rates peaked around quarter-end, have improved a bit since then. Getting into a little bit of a seasonally more conducive environment for mortgage, but still a little bit of a challenging backdrop.

Just curious where you stand right now on Archwest and trends you're seeing.

Normalizing for the seasonality, maybe slightly below budget, but it's still early. We're still seeing gains, maybe that just speaks to the ambition of our budget there.

There has been a lot of healing, the gain-on-sales have been healthy, and the expectation is that the budgeted volumes will normalize and achieve what we originally penciled out. Early signs are good for Q2, and as you alluded to, obviously, seasonally, this is an important part of the year for them.

Great. Appreciate it.

Thanks for taking my questions.

Thank you. Good morning, this is Frank Filobello on for Bose.

I just want to start with a follow-up on the commercial discussion. Do you think we could expect an additional marks on some of the sales?

I know you said they're continuing to be ongoing, but any color there would be great.

I think as we continue to go through the sales process, get more information from the market, I think we're generally reflecting that in the current valuation. Barring surprises, I would say the answer is no.

Great. Then pivoting to the home equity, you've scaled it nicely over the past few quarters.

Kind of think about how large can that get as a percentage of the portfolio? Then you note 29% ROEs.

Are those returns still available on new production today, and where's the best risk-adjusted returns in that market? Thanks.

Yeah. Thanks, Frank.

This market is expanded with a good pace, call it 25% a year, really in earnest since, call it, '23. We expect that pace to continue or to accelerate.

We expect it to be the largest non-agency sort of or securitized product non-agency sector at some point this year, if not next. We still think there's a lot of runway for the opportunity.

From a return standpoint, while there is increased competition, it's not nearly as competitive as other segments of the non-agency market, and that's despite its performance having been a standout versus the broader non-agency market. We still continue to see a good amount of opportunity in this segment, and from a deployable capital standpoint, we don't have any concerns on being able to recycle capital into this segment from it.

Great. Thank you.

All right, thanks. There have been some reports about increasing delinquency levels in some of the recent vintage non-QM product.

Can you guys comment specifically on your non-QM segment to the portfolio, if you guys are seeing any sort of deterioration in performance or just general commentary there would be great. Thanks.

One, the sort of underperformance of non-QM is less relevant to MITT, given our transitioning over to other segments over two years ago, most notably really the agency-eligible segment and then the home equity segment. Our agency-eligible book is performing better than prime jumbo, which is shocking to say out loud, but that's a fact.

Then our home equity segment, the delinquencies are less than a quarter of the delinquencies of the broader non-QM market, which is where most of the concern is. MITT as a vehicle is insulated versus sort of that underperformance versus underwrite.

We still are constructive broadly in the non-QM space, but I think it's worth noting that generally our credit selection has been tighter than the broader universe, which is driving some of that outperformance. We don't view our book as a comp versus other folks.

Over the years, there's been some degradation in performance for various reasons. We don't see MITT as being exposed to that.

Great. Appreciate the comments.

Thank you.

Hi, guys. Good morning.

I was just curious about the 9.5 notes of '29. Those are obviously the most expensive part of the capital stack right now.

It's 3 years out, but I believe they become callable relatively shortly. With your EAD coverage, tell us how you're thinking about maybe doing a refinancing, tender, partial paydown?

Any thoughts there?

Jason, we're always evaluating the entire capital structure. To your point, they are coming callable.

There's two separate notes that were issued not too far away from each other, and they'll be coming up later this year. To the extent rates in the market move in the right direction, we'll certainly be looking to explore refinancing or delevering those.

Got it. Thanks.

Then just overall purchase activity, your volume this quarter was well below the fourth quarter I think $87 million versus $284 million or so. Is that more of a strategic or a timing issue over time?

Were you waiting for wider spreads to get involved, or can you talk about that a bit?

It's a little more complicated than that. While the portfolio decreased that basis, it's really because the structures of most recent transactions result in the company not consolidating these deals.

Had we consolidated those deals, we actually would have had modest growth. I think there's a little bit of form over substance, given those nuances.

All right, that makes sense. Thank you for that color.

Thank you to everyone for joining us this morning and for your questions. We appreciate it and look forward to speaking with you again next quarter.

Have a great day.