Granite Point Mortgage Trust Inc. · NYSE:GPMT
Granite Point Mortgage Trust — Q4 2023 Earnings Presentation
30 slides from Granite Point Mortgage Trust's earnings presentation, Feb 14, 2024
Slide 1: Fourth Quarter and Full Year 2023 Earnings Supplemental
Fourth Quarter and Full Year 2023 Earnings Supplemental February 15, 2024
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: Company Business Update
Company Business Update ▪ Defensively-positioned and broadly-diversified portfolio of 100% CRE loans (over 99% senior first mortgages) with a weighted average stabilized LTV of 63.6%*. PORTFOLIO ▪ Weighted average portfolio risk rating of 2.8 as of December 31, 2023. CREDIT QUALITY ▪ Well-positioned
Slide 5: Q4 and Full Year 2023 Summary Results
Q4 and Full Year 2023 Summary Results ▪ Q4 GAAP Net (Loss)* of $(17.1) million, or $(0.33) per ▪ FY 2023 GAAP Net (Loss)* of $(77.6) million, or $(1.50) basic share, inclusive of a $(21.6) million, or $(0.42) per per basic share, inclusive of a $(104.8) million, or basic share, provision for credit
Slide 6: Q4 2023 Financial Summary
Q4 2023 Financial Summary SUMMARY INCOME STATEMENT SUMMARY BALANCE SHEET ($ IN MILLIONS, EXCEPT PER SHARE DATA) ($ IN MILLIONS, EXCEPT PER SHARE DATA, REFLECTS CARRYING VALUES) (UNAUDITED) (UNAUDITED) Net Interest Income $17.3 Cash $188.4 Fee Income $0.1 Restricted Cash $10.8 (Provision) for Credit
Slide 7: Key Drivers of Q4 2023 Earnings and Book Value Per Share
Key Drivers of Q4 2023 Earnings and Book Value Per Share • GAAP Net (Loss)* of $(17.1) million, or $(0.33) per basic share, inclusive of a $(21.6) million, or $(0.42) per basic share, of provision for credit losses. • Distributable (Loss)** of $(26.4) million, or $(0.52) per basic share, inclusive o
Slide 8: Loan Portfolio Credit Overview
Loan Portfolio Credit Overview • Weighted average portfolio risk rating of 2.8 as of December 31, 2023. GENERAL AND SPECIFIC CECL RESERVE BY QTR.* CECL RESERVE AS % OF COMMITMENTS BY QTR. General Specific $148.9 $133.0 $134.6 $137.1 4.9% 4.7% $85.1 4.1% $67.5 $62.3 $91.4 3.8% $65.5 $72.3 $63.8 $45.7
Slide 9: Loan Portfolio Overview as of December 31, 2023
Loan Portfolio Overview as of December 31, 2023 Well-diversified and granular portfolio comprised of over 99% senior loans with a weighted average stabilized LTV at origination of 63.6%*. KEY PORTFOLIO STATISTICS PROPERTY TYPE(2) Industrial, 4.4% Other, 3.4% Outstanding Principal Balance $2.7 billio
Slide 10: Sensitivity to Short-term Interest Rates
Sensitivity to Short-term Interest Rates • Over 98% floating-rate senior loan portfolio indexed to Term SOFR. QTR. NET INTEREST INCOME PER SHARE SENSITIVITY TO WEIGHTED AVERAGE SOFR BY LOAN VINTAGE CHANGES IN 1-MO. U.S. SOFR AS OF DECEMBER 31, 2023(5) 4.0% 45.0% Change in 1-Month U.S. SOFR (%) 3.5%
Slide 11: Overview of Risk-Rated "5" Loans
Overview of Risk-Rated “5” Loans • In Q4’23, the Company resolved a $92.6 million senior loan that had been on nonaccrual status resulting in a realized loss of approx. $(33.3) million. The resolution involved a coordinated sale of the collateral property located in San Diego, CA, and the Company pr
Slide 12: Office Loan Portfolio Overview
Office Loan Portfolio Overview • Since 2021, reduced the office exposure by over REDUCTION IN OFFICE EXPOSURE* ($ IN MILLIONS) $525 million, or over 30%, primarily through $2,000 repayments and paydowns, and also through other proactive loan resolutions. $1,723 $1,750 • Granular office portfolio acr
Slide 13: Funding Mix and Capitalization Highlights
Funding Mix and Capitalization Highlights WELL-BALANCED CAPITAL STRUCTURE WITH MODERATE LEVERAGE FINANCING SUMMARY AS OF DECEMBER 31, 2023 LEVERAGE* Total Outstanding Wtd. Avg Advance Non- 4.0x ($ IN MILLIONS) Capacity Balance(10) Coupon* Rate MTM* 3.0x 2.1x Repurchase Facilities(11) $1,850 $869 S +
Slide 14: Endnotes
Endnotes
Slide 15: Endnotes
Endnotes 1) As of December 31, 2023, real estate owned, net included $3.6 million in other assets and liabilities related to acquired leases. 2) Mixed-use properties represented based on allocated loan amounts. Percentages are based off of carrying value. 3) Max remaining term assumes all extension
Slide 16: Appendix
Appendix
Slide 17: Summary of Investment Portfolio
Summary of Investment Portfolio Maximum Original Loan Principal Carrying Cash All-in Yield at Term Stabilized ($ IN MILLIONS) Commitment Balance Value Coupon* Origination* (Years)* Initial LTV * LTV* Senior Loans* $2,874.4 $2,713.7 $2,570.7 S + 3.75% S + 4.03% 3.1 66.8% 63.7% Subordinated Loans $13.
Slide 18: Investment Portfolio
Investment Portfolio All-in Origination Maximum Loan Principal Carrying Cash Yield at Original Term Property ($ 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 $108.9 S + 2.80% S + 3.23% 3.0 IL
Slide 19: Average Balances and Yields/Cost of Funds
Average Balances and Yields/Cost of Funds Quarter Ended December 31, 2023 ($ IN THOUSANDS) Average Balance ** Interest Income/Expense † Net Yield/Cost of Funds Interest-earning assets Loans held-for-investment Senior loans* $2,840,239 $59,101 8.3% Subordinated loans 13,529 276 8.2% Total loan intere
Slide 20: Consolidated Balance Sheets
Consolidated Balance Sheets GRANITE POINT MORTGAGE TRUST INC. December 31, December 31, CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT SHARE DATA) 2023 2022 ASSETS (unaudited) Loans held-for-investment $ 2,718,486 $ 3,350,150 Allowance for credit losses (134,661) (82,335) Loans held-for-investmen
Slide 21: Consolidated Statements of Comprehensive Income (Loss)
Consolidated Statements of Comprehensive Income (Loss) GRANITE POINT MORTGAGE TRUST INC. Three Months Ended Twelve Months Ended CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) December 31, December 31, (in thousands, except share data) 2023 2022 2023 2022 In t erest income: (unaudited) (unaud
Slide 22: Reconciliation of GAAP Net (Loss) Income to Distributable Earnings (Loss)
Reconciliation of GAAP Net (Loss) Income to Distributable Earnings (Loss) * ($ IN MILLIONS, EXCEPT PER SHARE DATA) (UNAUDITED) Q1 2023 Q2 2023 Q3 2023 Q4 2023 GAAP Net (Loss) Income* $(37.5) $1.4 $(24.5) $(17.1) Adjustments: Provision (Benefit from) for Credit Losses $46.4 $5.8 $31.0 $21.6 Loss (Gai
Slide 23: Financial Statements Impact of CECL Reserves
Financial Statements Impact of CECL Reserves • Total allowance for credit losses of $137.1 million, of which $2.5 million is related to future funding obligations and recorded in other liabilities. • Loans reported on the balance sheet are net of the allowance for credit losses. ($ in thousands) Q4
Slide 24: 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 25: 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 26: Distributable Earnings (cont'd)
Distributable Earnings (cont’d) ▪ Distributable Earnings does not represent net income or cash flow from operating activities and should not be considered as an alternative to GAAP net income, or an indication of our GAAP cash flows from operations, a measure of our liquidity, or an indication of fu
Slide 27: 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 28: Other Definitions (cont'd)
Other Definitions (cont’d) REO ▪ Real estate owned. ▪ “Senior” means a loan primarily secured by a first priority lien on commercial real property and related personal property and also Senior Loans includes, when applicable, any companion subordinate loans. ▪ Borrowings outstanding on repurchase fa
Slide 29: 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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