Granite Point Mortgage Trust Inc. · NYSE:GPMT
Granite Point Mortgage Trust — Q1 2021 Earnings Presentation
24 slides from Granite Point Mortgage Trust's earnings presentation, May 6, 2021
Slide 1: First Quarter 2021 Earnings Presentation
May 7, 2021 First Quarter 2021 Earnings Presentation
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 Business Update
PORTFOLIO CREDIT QUALITY ▪ Defensively-positioned and broadly-diversified portfolio of 100% CRE loans (over 99% senior first mortgages) with weighted average initial LTV of 65.8%(2) implying sponsors generally have significant equity in their properties. ▪ Strong collections of interest through Apri
Slide 4: First Quarter 2021 Highlights
First Quarter 2021 Highlights 4 (1) Represents Net Income Attributable to Common Stockholders, see definition in the appendix. (2) See definition in the appendix. FINANCIAL SUMMARY ▪ GAAP net income(1) of $28.0 million, or $0.51 per basic share, inclusive of $0.17 per basic share release of prior CE
Slide 5: First Quarter 2021 Financial Summary
First Quarter 2021 Financial Summary 5 SUMMARY INCOME STATEMENT ($ IN MILLIONS, EXCEPT PER SHARE DATA) Net Interest Income $27.8 Benefit from (Provision) for Credit Losses $9.1 Operating Expenses $(8.9) GAAP Net Income(1) $28.0 Wtd. Avg. Basic Common Shares 55,137,608 Diluted Common Shares 71,834,39
Slide 6: Key Drivers of First Quarter 2021 Earnings and Book Value Per Share
$16.92 $17.22 $15.00 $15.50 $16.00 $16.50 $17.00 $17.50 $18.00 12/31/2020 Pre-Provision GAAP Earnings Benefit from (Provision for) Credit Losses Dividend Declaration Other 3/31/2021 $(0.25) $0.34 Key Drivers of First Quarter 2021 Earnings and Book Value Per Share • GAAP earnings and book value benef
Slide 7: Historical Portfolio Principal Balance
$3,932 $3,872 $- $1,000 $2,000 $3,000 $4,000 $5,000 12/31/2020 Portfolio 2021 Fundings & Deferrals 2021 Prepayments & Amortization 3/31/2021 $ I n M il li o n s Historical Portfolio Principal Balance 7 (1) Data based on principal balance of investments. (2) Includes fundings of prior loan commitment
Slide 8: Investment Portfolio as of March 31, 2021
31.5% 24.6% 21.5% 21.3% 1.1% 0% - 60% 60% - 65% 65% - 70% 70% - 75% 75% - 80% 4.7% 48.7% 25.7% 19.2% 1.7% 1 2 3 4 5 Investment Portfolio as of March 31, 2021 8 PROPERTY TYPE(2) GEOGRAPHY STABILIZED LTV(1) RISK RATINGS (1) See definition in the appendix. (2) Mixed-use properties represented based on
Slide 9: Investment Portfolio LIBOR Floors
5.2% 2.8% 17.0% 28.8% 42.7% 3.5% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 2015 2016 2017 2018 2019 2020 % o f P o rt fo li o 1 -M o n th U .S . L IB O R % of Floating Rate Loan Portfolio Wtd. Avg. LIBOR Floor by Loan Vintage Wtd. Avg. Portfolio LIBOR Fl
Slide 10: Q1 2021 Portfolio Developments
Q1 2021 Portfolio Developments 10 ASSET MANAGEMENT • We have been working closely with our borrowers to provide them with short-term relief to help manage through market dislocations and business interruptions at their properties. During the three months ended March 31, 2021, we modified 9 loans wit
Slide 11: Diversified Capital Sources
Diversified Capital Sources 11 (1) Outstanding principal balance, excludes deferred debt issuance costs. (2) Does not include fees and other transaction related expenses. (3) See definitions in the appendix. (4) Includes all repurchase facilities. Includes option to be exercised at the company’s dis
Slide 12: Appendix
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Slide 13: Summary of Investment Portfolio
Summary of Investment Portfolio 13 ($ IN MILLIONS) Maximum Loan Commitment Principal Balance Carrying Value Cash Coupon(1) All-in Yield at Origination(1) Original Term (Years)(1) Initial LTV(1) Stabilized LTV(1) Senior Loans(1) $4,310.0 $3,856.4 $3,789.6 L + 3.51% L + 4.17% 3.1 65.8% 63.4% Subordina
Slide 14: Investment Portfolio Detail
Investment Portfolio Detail 14 ($ IN MILLIONS) Type (1) Origination Date Maximum Loan Commitment Principal Balance Carrying Value Cash Coupon (1) All-in Yield at Origination (1) Original Term (Years) (1) State Property Type Initial LTV (1) Stabilized LTV (1) Asset 1 Senior 12/15 120.0 120.0 119.4 L
Slide 15: Average Balances and Yields/Cost of Funds
Average Balances and Yields/Cost of Funds 15 Quarter Ended March 31, 2021 ($ IN THOUSANDS) Average Balance(2) Interest Income/Expense(3) Net Yield/Cost of Funds Interest-earning assets Loans held-for-investment Senior loans(1) $3,857,274 $53,657 5.6% Subordinated loans 16,369 382 9.3% Other — 100 —%
Slide 16: Condensed Balance Sheets
Condensed Balance Sheets 16 GRANITE POINT MORTGAGE TRUST INC. CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT SHARE DATA) March 31, 2021 December 31, 2020 ASSETS (unaudited) Loans held-for-investment $ 3,859,269 $ 3,914,469 Allowance for credit losses (59,433) (66,666) Loans held-for-inv
Slide 17: Condensed Statements of Comprehensive Income
Condensed Statements of Comprehensive (Loss) Income 17 GRANITE POINT MORTGAGE TRUST INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (IN THOUSANDS, EXCEPT SHARE DATA) Three Months Ended March 31, 2021 2020 Interest income: (unaudited) Loans held-for-investment $ 54,039 $ 63,259 Availab
Slide 18: Reconciliation of GAAP Net Income to Distributable Earnings
Reconciliation of GAAP Net Income to Distributable Earnings(1) 18 ($ IN MILLIONS, EXCEPT PER SHARE DATA) Q1 2021 Q4 2020 GAAP Net Income(1) $28.0 $23.1 Adjustments: (Benefit from) Provision for Credit Losses $(9.1) $(8.5) Internalization-related Restructuring Charges $— $2.6 Non-Cash Equity Compensa
Slide 19: Financial Statements Impact of CECL Reserves
Financial Statements Impact of CECL Reserves 19 • Total allowance for credit losses of $63.1 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) A
Slide 20: ▪ Beginning with our Annual Report on Form 10-K for the year ended December
▪ Beginning with our Annual Report on Form 10-K for the year ended December 31, 2020, and for all subsequent reporting periods ending on or after December 31, 2020, we have elected to present Distributable Earnings, a measure that is not prepared in accordance with GAAP, as a supplemental method of
Slide 21: ▪ While Distributable Earnings excludes the impact of the unrealized non-cash current provision for
▪ 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 at the time a loan is repaid,
Slide 22: Other Definitions
Other Definitions 22 All-in Yield at Origination ▪ Provided for illustrative purposes only. Calculations of all-in yield at origination are based on a number of assumptions (some or all of which may not occur) and are expressed as monthly equivalent yields that include net origination fees and exit
Slide 23: Company Information
Company Information 23 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. Gran
Slide 24: Granite Point Mortgage Trust
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