Granite Point Mortgage Trust Inc. · NYSE:GPMT
Granite Point Mortgage Trust — Q2 2024 Earnings Presentation
28 slides from Granite Point Mortgage Trust's earnings presentation, Aug 6, 2024
Slide 1: Second Quarter 2024 Earnings Supplemental
Second Quarter 2024 Earnings Supplemental August 6, 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 p
Slide 4: Q2 2024 Summary Results
Q2 2024 Summary Results ▪ GAAP Net (Loss)* of $(66.7) million, or $(1.31) per basic share, inclusive of a $(60.8) million, or $(1.19) per basic share, provision for credit losses. FINANCIAL ▪ Distributable (Loss)** of $(9.1) million, or $(0.18) per basic share, inclusive of loan write-offs of $(6.6)
Slide 5: Q2 2024 Summary Results (cont'd)
Q2 2024 Summary Results (cont’d) ▪ Repurchased 0.5 million shares of its common stock at an average price of $3.10 per share for a total of approx. $1.6 million, resulting in book value accretion of approx. $0.05 per share. CAPITALIZATION ▪ Extended the maturity of the Morgan Stanley financing facil
Slide 6: Q2 2024 Financial Summary
Q2 2024 Financial Summary SUMMARY INCOME STATEMENT SUMMARY BALANCE SHEET ($ IN MILLIONS, EXCEPT PER SHARE DATA) ($ IN MILLIONS, EXCEPT PER SHARE DATA, REFLECTS CARRYING VALUES) (UNAUDITED) (UNAUDITED) Net Interest Income $8.1 Cash $85.9 (Provision) for Credit Losses $(60.8) Restricted Cash $12.9 (Lo
Slide 7: Key Drivers of Q2 2024 Earnings and Book Value Per Share
Key Drivers of Q2 2024 Earnings and Book Value Per Share • GAAP Net (Loss)* of $(66.7) million, or $(1.31) per basic share, inclusive of a $(60.8) million, or $(1.19) per basic share, provision for credit losses. • Distributable (Loss)** of $(9.1) million, or $(0.18) per basic share, inclusive of lo
Slide 8: Loan Portfolio Credit Overview
Loan Portfolio Credit Overview • Weighted average portfolio risk rating of 3.0 as of June 30, 2024. GENERAL AND SPECIFIC CECL RESERVE BY QTR.* CECL RESERVE AS % OF COMMITMENTS BY QTR. General Specific $266.9 9.7% $212.7 7.5% $148.9 $137.1 $195.0 4.9% 4.7% $155.3 $85.1 $91.4 $63.8 $57.4 $71.9 $45.7 9
Slide 9: Loan Portfolio Overview as of June 30, 2024
Loan Portfolio Overview as of June 30, 2024 Well-diversified and granular portfolio comprised of over 99% senior loans with a weighted average stabilized LTV at origination of 63.7%*. KEY PORTFOLIO STATISTICS PROPERTY TYPE(2) Industrial, 4.8% Other, 2.7% Outstanding Principal Balance $2.6 billion Ho
Slide 10: Overview of Risk-Rated "5" Loans
Overview of Risk-Rated “5” Loans • As of June 30, 2024, the Company held ten loans that were risk-rated “5” with an aggregate principal balance of $545.2 million. The Company is actively pursuing resolution options with respect to these loans, which may include a foreclosure, a deed-in-lieu, a loan
Slide 11: Office Loan Portfolio Overview
Office Loan Portfolio Overview • Since 2021, reduced the office exposure by over REDUCTION IN OFFICE EXPOSURE* ($ IN MILLIONS) $555 million, or over 30%, primarily through repayments and paydowns, and also through other proactive loan resolutions. $1,723 • Granular office portfolio across 20 MSAs an
Slide 12: Funding Mix and Capitalization Highlights
Funding Mix and Capitalization Highlights WELL-BALANCED CAPITAL STRUCTURE WITH MODERATE LEVERAGE FINANCING SUMMARY AS OF JUNE 30, 2024 LEVERAGE* Total Outstanding Wtd. Avg Advance Non- 3.0x 2.5x ($ IN MILLIONS) Capacity Balance(10) Coupon* Rate MTM* 2.0x Repurchase Facilities $1,514 $792 S + 3.40% 6
Slide 13: Endnotes
Endnotes
Slide 14: Endnotes
Endnotes 1) As of June 30, 2024, real estate owned, net included $10.8 million in other assets and liabilities related to acquired leases. 2) Mixed-use properties represented based on allocated loan amounts. Percentages are based off of carrying value. 3) Max remaining term assumes all extension opt
Slide 15: Appendix
Appendix
Slide 16: Summary of Investment Portfolio
Summary of Investment Portfolio Maximum Original Loan Principal Carrying Cash All-in Yield at Term Stabilized ($ IN MILLIONS) Commitment Balance Value Coupon* Origination* (Years)* Initial LTV* LTV* Senior Loans* $2,728.5 $2,610.5 $2,339.6 S + 3.75% S + 4.04% 3.1 67.0% 63.8% Subordinated Loans $13.4
Slide 17: Investment Portfolio
Investment Portfolio All-in Origination Maximum Loan Principal Carrying Cash Yield at Original Term Property ($ 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 $109.0 S + 2.80% S + 3.23% 3.0 IL
Slide 18: Average Balances and Yields/Cost of Funds
Average Balances and Yields/Cost of Funds Quarter Ended June 30, 2024 ($ IN THOUSANDS) Average Balance* Interest Income/Expense Net Yield/Cost of Funds Interest-earning assets Loans held-for-investment Senior loans $2,670,067 $46,611 7.0% Subordinated loans 13,396 271 8.1% Total loan interest income
Slide 19: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets GRANITE POINT MORTGAGE TRUST INC. June 30, December 31, CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT SHARE DATA) 2024 2023 ASSETS (unaudited) Loans held-for-investment $ 2,616,884 $ 2,718,486 Allowance for credit losses (264,140) (134,661) Loans h
Slide 20: Condensed Consolidated Statements of Comprehensive (Loss) Income
Condensed Consolidated Statements of Comprehensive (Loss) Income GRANITE POINT MORTGAGE TRUST INC. Three Months Ended Six Months Ended CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) June 30, June 30, (in thousands, except share data) 2024 2023 2024 2023 Interest income: (unaudited)
Slide 21: Reconciliation of GAAP Net (Loss) Income to Distributable (Loss) Earnings
Reconciliation of GAAP Net (Loss) Income to Distributable (Loss) Earnings * ($ IN MILLIONS, EXCEPT PER SHARE DATA) (UNAUDITED) Q3 2023 Q4 2023 Q1 2024 Q2 2024 GAAP Net (Loss) Income* $(24.5) $(17.1) $(77.7) $(66.7) Adjustments: Provision (Benefit from) for Credit Losses $31.0 $21.6 $75.6 $60.8 Non-C
Slide 22: Financial Statements Impact of CECL Reserves
Financial Statements Impact of CECL Reserves • Total allowance for credit losses of $266.9 million, of which $2.7 million is related to future funding obligations and recorded in other liabilities. • Loans reported on the balance sheet are net of the allowance for credit losses. ($ in thousands) Q2
Slide 23: Distributable Earnings
Distributable Earnings ▪ Beginning with our Annual Report on Form 10-K for the year ended December 31, 2023, and for all subsequent reporting periods ending on or after December 31, 2023, we have elected to present Distributable Earnings, a measure that is not prepared in accordance with GAAP, as a
Slide 24: 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 25: 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 26: 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. Total Leverage ▪ Borrowings outstanding o
Slide 27: 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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