With cash suddenly dear, TPG Real Estate Finance Trust has been forced to sell off roughly $1bn in commercial real estate debt. The company faces margin calls, which has made it necessary to clean up its balance sheet to avoid margin calls. It admitted in a first quarter earnings telephone call that its tight liquidity situation was casting doubt on its ability to continue as a going concern. TPG was sued recently by the developer Somera Road that it was missing loan payments. TPG RE admitted it had sold off 49 commercial real estate securities investments, its entire portfolio in order to pay $722m in outstanding debt. The face value of the properties was $961m. The company also announced that it would be deferring dividend payments until July 14, following a first quarter in which it made a $233.1m compared to net income of $28.3m a year before.
