Granite Point Mortgage Trust Inc. · NYSE:GPMT
Granite Point Mortgage Trust — Q3 2023 Earnings Presentation
27 slides from Granite Point Mortgage Trust's earnings presentation, Nov 8, 2023
Slide 1: Third Quarter 2023 Earnings Supplemental
Third Quarter 2023 Earnings Supplemental November 8, 2023
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains, or incorporates by reference, not only historical information, but also forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve numerous risks and uncertainties. Our ac
Slide 3: Company Overview
Company Overview* An internally-managed commercial real estate finance company operating as a REIT, focused on originating and investing in floating-rate, first mortgage loans secured by institutional-quality transitional properties. Conservatively managed balance sheet with a granular investment po
Slide 4: Q3 2023 Summary Results & Subsequent Events
Q3 2023 Summary Results & Subsequent Events ▪ GAAP Net (Loss)* of $(24.5) million, or $(0.48) per basic share, inclusive of a $(31.0) million, or $(0.60) per basic share, provision for credit losses. FINANCIAL ▪ Pre-loss Distributable Earnings ** of $9.5 million, or $0.18 per basic share. Distributa
Slide 5: Q3 2023 Financial Summary
Q3 2023 Financial Summary SUMMARY INCOME STATEMENT SUMMARY BALANCE SHEET ($ IN MILLIONS, EXCEPT PER SHARE DATA) ($ IN MILLIONS, EXCEPT PER SHARE DATA, REFLECTS CARRYING VALUES) Net Interest Income $19.9 Cash $257.6 Fee Income $0.1 Restricted Cash $26.0 (Provision) for Credit Losses $(31.0) Loans Hel
Slide 6: Key Drivers of Q3 2023 Earnings and Book Value Per Share
Key Drivers of Q3 2023 Earnings and Book Value Per Share • GAAP Net (Loss)* of $(24.5) million, or $(0.48) per basic share, inclusive of a $(31.0) million, or $(0.60) per basic share, of provision for credit losses. • Distributable (Loss)** of $(7.3) million, or $(0.14) per basic share, inclusive of
Slide 7: Loan Portfolio Credit Overview
Loan Portfolio Credit Overview • Weighted average portfolio risk rating of 2.7 as of September 30, 2023. GENERAL AND SPECIFIC CECL RESERVE BY QTR.* CECL RESERVE AS % OF COMMITMENTS BY QTR. General Specific $148.9 $133.0 $134.6 4.9% $85.1 4.1% 3.8% $67.5 $62.3 $86.6 2.4% $39.3 $65.5 $72.3 $63.8 $47.3
Slide 8: Loan Portfolio Overview as of September 30, 2023
Loan Portfolio Overview as of September 30, 2023 Well-diversified and granular portfolio comprised of over 99% senior loans with a weighted average stabilized LTV at origination of 63.3%*. KEY PORTFOLIO STATISTICS PROPERTY TYPE(1) Industrial, 4.1% Other, 3.2% Outstanding Principal Balance $2.9 billi
Slide 9: Sensitivity to Short-term Interest Rates
Sensitivity to Short-term Interest Rates • Portfolio is over 98% floating rate. • Well-positioned for further increases in short-term benchmark interest rates. QTR. NET INTEREST INCOME PER SHARE SENSITIVITY TO WEIGHTED AVERAGE SOFR BY LOAN VINTAGE CHANGES IN 1-MO. U.S. SOFR AS OF SEPTEMBER 30, 2023(
Slide 10: Overview of Risk-Rated "5" Loans
Overview of Risk-Rated “5” Loans • During Q3 2023, the Company downgraded to a risk rating of “5” a $37.1 million senior loan collateralized by a mixed-use office and retail property located in Los Angeles, CA as the collateral property’s operating performance was adversely affected by the ongoing o
Slide 11: Funding Mix and Capitalization Highlights
Funding Mix and Capitalization Highlights WELL-DIVERSIFIED CAPITAL STRUCTURE WITH MODERATE LEVERAGE FINANCING SUMMARY AS OF SEPTEMBER 30, 2023 LEVERAGE* Total Outstanding Wtd. Avg Advance Non- 3.0x ($ IN MILLIONS) Capacity Balance(9) Coupon* Rate MTM* 2.2x 2.0x Repurchase Facilities(10) $1,750 $914
Slide 12: Endnotes
Endnotes
Slide 13: Endnotes
Endnotes 1) Mixed-use properties represented based on allocated loan amounts. 2) Max remaining term assumes all extension options are exercised and excludes four loans that have passed its maturity date and are not eligible for extension, if applicable. 3) Reflects changes to SOFR floors arising fro
Slide 14: Appendix
Appendix
Slide 15: Summary of Investment Portfolio
Summary of Investment Portfolio Maximum Original Loan Principal Carrying Cash All-in Yield at Term Stabilized ($ IN MILLIONS) Commitment Balance Value Coupon* Origination* (Years)* Initial LTV * LTV* Senior Loans* $3,046.2 $2,904.2 $2,750.4 S + 3.72% S + 3.98% 3.1 66.5% 63.5% Subordinated Loans $13.
Slide 16: Investment Portfolio
Investment Portfolio All-in Origination Maximum Loan Principal Carrying Cash Yield at Original Term Property ($ IN MILLIONS) Type* Date Commitment Balance Value Coupon* Origination* (Years)* State Type Initial LTV* Stabilized LTV* Asset 1 Senior 12/19 $111.1 $109.2 $109.1 S + 2.80% S + 3.23% 3.0 IL
Slide 17: Average Balances and Yields/Cost of Funds
Average Balances and Yields/Cost of Funds Quarter Ended September 30, 2023 ($ IN THOUSANDS) Average Balance ** Interest Income/Expense † Net Yield/Cost of Funds Interest-earning assets Loans held-for-investment Senior loans* $3,040,502 $63,570 8.4% Subordinated loans 13,597 278 8.2% Total loan inter
Slide 18: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets GRANITE POINT MORTGAGE TRUST INC. September 30, December 31, CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT SHARE DATA) 2023 2022 ASSETS (unaudited) Loans held-for-investment $ 2,908,855 $ 3,350,150 Allowance for credit losses (145,297) (82,335) Loa
Slide 19: Condensed Consolidated Statements of Comprehensive Income (Loss)
Condensed Consolidated Statements of Comprehensive Income (Loss) GRANITE POINT MORTGAGE TRUST INC. Three Months Ended Nine Months Ended CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) September 30, September 30, (in thousands, except share data) 2023 2022 2023 2022 In t erest income
Slide 20: Reconciliation of GAAP Net (Loss) Income to Distributable Earnings
Reconciliation of GAAP Net (Loss) Income to Distributable Earnings * ($ IN MILLIONS, EXCEPT PER SHARE DATA) (UNAUDITED) Q3 2023 Q2 2023 Q1 2023 Q4 2022 GAAP Net (Loss) Income* $(24.5) $1.4 $(37.5) $(9.9) Adjustments: Provision (Benefit from) for Credit Losses $31.0 $5.8 $46.4 $16.5 Loss (Gain) on Ex
Slide 21: Financial Statements Impact of CECL Reserves
Financial Statements Impact of CECL Reserves • Total allowance for credit losses of $148.9 million, of which $3.6 million is related to future funding obligations and recorded in other liabilities. • Loans reported on the balance sheet are net of the allowance for credit losses. ($ in thousands) Q3
Slide 22: Distributable Earnings
Distributable Earnings ▪ Beginning with our Annual Report on Form 10-K for the year ended December 31, 2022, and for all subsequent reporting periods ending on or after December 31, 2022, we have elected to present Distributable Earnings, a measure that is not prepared in accordance with GAAP, as a
Slide 23: Distributable Earnings (cont'd)
Distributable Earnings (cont’d) ▪ While Distributable Earnings excludes the impact of the unrealized non-cash current provision for credit losses, we expect to only recognize such potential credit losses in Distributable Earnings if and when such amounts are deemed non-recoverable. This is generally
Slide 24: Other Definitions
Other Definitions ▪ Provided for illustrative purposes only. Calculations of realized loan portfolio yield are based on a number of assumptions (some or all Realized Loan of which may not occur) and are expressed as monthly equivalent yields that include net origination fees and exit fees and exclud
Slide 25: Other Definitions (cont'd)
Other Definitions (cont’d) ▪ The fully funded loan amount (plus any financing that is pari passu with or senior to such loan), including all contractually provided for future fundings, divided by the as stabilized value (as determined in conformance with USPAP) set forth in the original appraisal. A
Slide 26: Company Information
Company Information Granite Point Mortgage Trust Inc. is an internally-managed real estate finance company that focuses primarily on directly originating, investing in and managing senior floating rate commercial mortgage loans and other debt and debt-like commercial real estate investments. Granite
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