Stock-based Compensation

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

The Company does not have any employees. As of June 30, 2023, certain individuals employed by an affiliate of the Manager and certain members of the Company’s Board of Directors were compensated, in part, through the issuance of stock-based instruments.

The Company’s Board of Directors has adopted, and the Company’s stockholders have approved, the TPG RE Finance Trust, Inc. 2017 Equity Incentive Plan (the “Incentive Plan”). The Incentive Plan provides for the grant of equity-based compensation awards to the Company’s, and its affiliates’, directors, officers, employees (if any) and consultants, and the members, officers, directors, employees and consultants of our Manager or its affiliates, as well as to our Manager and other entities that provide services to us and our affiliates and the employees of such entities. The total number of shares of common stock or long-term incentive plan (“LTIP”) units that may be awarded under the Incentive Plan is 4,600,463. The Incentive Plan will automatically expire on the tenth anniversary of its effective date, unless terminated earlier by the Company’s Board of Directors.

The following table details the outstanding common stock awards and includes the numbers of shares granted and weighted-average grant date fair value per share under the Incentive Plan:


	Common Stock	Weighted-Average Grant Date Fair Value per Share








Balance as of December 31, 2022	1,683,440	$	9.44
Granted	—	—
Vested	(527,831)	10.55
Forfeited	(6,545)	7.64
Balance as of June 30, 2023	1,149,064	$	8.94

Generally, common shares vest over a four-year period pursuant to the terms of the award and the Incentive Plan with the exception of deferred stock units granted to certain members of the Company's Board of Directors that are vested upon issuance.

The following table presents the number of shares associated with outstanding awards that will vest over the next four years:


Share Grant Vesting Year						Shares of Common Stock
2023						—
2024						474,548
2025						390,649
2026						283,867
Total						1,149,064

During the three and six months ended June 30, 2023, the Company accrued 3,678 and 7,402 shares of common stock for dividends that are paid-in kind to non-management members of its Board of Directors related to the dividend payable to holders of record of our common stock as of March 29, 2023 and June 28, 2023. Dividends payable to holders of such grants made on December 17, 2021 and thereafter are paid in cash.

As of June 30, 2023, total unrecognized compensation costs relating to unvested stock-based compensation arrangements was $10.3 million. These compensation costs are expected to be recognized over a weighted average period of 1.3 years from June 30, 2023. For the three months ended June 30, 2023 and 2022, the Company recognized $1.8 million and $1.3 million, respectively, of stock-based compensation expense. For the six months ended June 30, 2023 and 2022, the Company recognized $3.6 million and $2.6 million, respectively, of stock-based compensation expense.