Granite Point Mortgage Trust Inc. · NYSE:GPMT
Granite Point Mortgage Trust — Q1 2020 Earnings Presentation
20 slides from Granite Point Mortgage Trust's earnings presentation, May 11, 2020
Slide 1: First Quarter 2020 Earnings Presentation
First Quarter 2020 Earnings Presentation May 12, 2020
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains, in addition to historical information, certain forward-looking statements that are based on our current assumptions, expectations and projections about future performance and events. In particular, statements regarding future economic performance, fi
Slide 3: Company Update
Company Update • Management team has extensive commercial real estate lending experience and has successfully navigated through multiple economic and real estate cycles • More broadly diversified portfolio reduces concentrated event risk . Portfolio is comprised of 99% senior first mortgage loans; W
Slide 4: First Quarter 2020 Highlights
First Quarter 2020 Highlights . GAAP net loss of $(0.68) per basic share and Core Earnings(1) of $0.32 per basic share; Book value of FINANCIAL $17.43 per common share SUMMARY . GAAP EPS and book value affected by provision for credit losses related to the new Current Expected Credit Loss (“CECL”) a
Slide 5: First Quarter 2020 Earnings and Book Value
First Quarter 2020 Earnings and Book Value • GAAP earnings were affected by $53.3 million (or $0.97 per basic share) of provision for credit losses related to the CECL accounting standard and largely reflects the macroeconomic conditions resulting from the COVID-19 pandemic • Book value affected by
Slide 6: Financial Statements Impact at March 31, 2020
CONFIDENTIAL Financial Statements Impact at March 31 • Overall allowance for credit losses of $71.8 million largely reflecting expectations of macroeconomic environment incorporating the impact of COVID-19 pandemic, of which $7.5 million is related to future funding obligations and recorded in other
Slide 7: First Quarter 2020 Portfolio Activity
First Quarter 2020 Portfolio Activity • Total funding activity of $187.4 million: ORIGINATIONS BY PROPERTY TYPE(1) – Closed 4 newly originated loans with total commitments of $200.4 million and initial fundings of $125.2 million • Weighted average stabilized LTV of 55% Office, • Weighted average yie
Slide 8: Historical Portfolio Growth
Historical Portfolio Growth • In Q1 2020, originated 4 new loans with total commitments of $200.4 million and funded over $187.4 million of gross loan balances(1) PORTFOLIO ACTIVITY(2) PORTFOLIO GROWTH OVER TIME(3) $5,000 Total maximum $5,130 $4,367 $5,000 commitments $4,288 $763 Future funding $4,0
Slide 9: Investment Portfolio as of March 31, 2020
Investment Portfolio as of March 31, 2020 • High quality, well-diversified portfolio comprised of 99% senior first mortgage loans with a weighted average stabilized LTV at origination of 63.7% KEY PORTFOLIO STATISTICS PROPERTY TYPE(1) GEOGRAPHY Industrial, Other, Outstanding 7.1% 0.9% $4,367.0m Reta
Slide 10: Diversified Capital Sources
Diversified Capital Sources WELL-DIVERSIFIED CAPITALIZATION PROFILE WITH MODERATE LEVERAGE . Outstanding borrowing of $2.1 billion across 5 LEVERAGE REPURCHASE large institutional lenders(1) FACILITIES 4.0x 3.5x . Wtd. avg advance rate of 75.5% 3.0x 2.5x . Approximately $1 billion of fully term-matc
Slide 11: Sensitivity to 1-Month U.S. LIBOR
Sensitivity to 1-Month U.S. LIBOR ANNUAL NET INTEREST INCOME PER SHARE SENSITIVITY WEIGHTED AVERAGE LIBOR FLOOR BY LOAN VINTAGE TO CHANGES IN 1-MONTH U.S. LIBOR(1) 3.0% 37.8% 40.0% 35.0% $0.49 2.5% 29.0% 30.0% $0.39 25.0% $0.26 2.0% 20.2% $0.19 20.0% $0.13 $0.14 $0.09 $0.05 1.5% % Portfolio of Month
Slide 12: First Quarter 2020 Earnings Summary
First Quarter 2020 Earnings Summary SUMMARY INCOME STATEMENT GAAP NET LOSS TO CORE EARNINGS RECONCILIATION(1) ($ IN MILLIONS, EXCEPT PER SHARE DATA) ($ IN MILLIONS, EXCEPT PER SHARE DATA) Net Interest Income $29.2 GAAP Net Loss $(37.2) Provision for Credit Losses $(53.3) Adjustments: Other Income $0
Slide 13: Financing & Liquidity as of March 31, 2020
Financing & Liquidity as of March 31, 2020 SUMMARY BALANCE SHEET FINANCING SUMMARY ($ IN MILLIONS, EXCEPT PER SHARE DATA) ($ IN MILLIONS) Total Outstanding Wtd. Avg Cash $99.3 Capacity Balance Coupon(4) Repurchase Investment Portfolio, net $4,270.4 $2,416.9(2) $2,072.1 L+1.98% Agreements(1) Repurcha
Slide 14: Appendix
Appendix 7 HA He ee EI Eb 111
Slide 15: Summary of Investment Portfolio
Summary of Investment Portfolio Original Maximum Loan Principal Carrying Cash All-in Yield at Maturity Stabilized ($ in millions) Commitment Balance Value Coupon(1) Origination(2) (Years) Initial LTV(4) LTV(5) Senior Loans $5,077.6 $4,314.8 $4,225.0 L + 3.52% L + 4.20% 3.1 66.3% 63.8% Subordinated L
Slide 16: Investment Portfolio Detail
Investment Portfolio Detail Maximum All-in Original Origination Loan Principal Carrying Cash Yield at Maturity Property Stabilized ($ in millions) Type Date Commitment Balance Value Coupon(1) Origination(2) (Years) State Type Initial LTV(4) LTV(5) Asset 1 Senior 07/18 $144.3 $113.8 $111.6 L + 3.34%
Slide 17: Average Balances and Yields/Cost of Funds
Average Balances and Yields/Cost of Funds Quarter Ended March 31, 2020 ($ in thousands) Average Balance(1) Interest Income/Expense Net Yield/Cost of Funds Interest-earning assets Loans held-for-investment Senior loans $4,267,974 $62,549 5.9% Subordinated loans 27,739 710 10.2% Available-for-sale sec
Slide 18: Condensed Balance Sheets
Condensed Balance Sheets GRANITE POINT MORTGAGE TRUST INC. CONDENSED CONSOLIDATED BALANCE SHEETS March 31, December 31, (in thousands, except share data) 2020 2019 ASSETS (unaudited) Loans held-for-investment $ 4,313,816 $ 4,226,212 Allowance for credit losses (62,565) — Loans held-for-investment, n
Slide 19: Condensed Statements of Comprehensive Income
Condensed Statements of Comprehensive Income Three Months Ended GRANITE POINT MORTGAGE TRUST INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME March 31, (in thousands, except share data) 2020 2019 Interest income: (unaudited) Loans held-for-investment $ 63,259 $ 56,665 Available-for-sal
Slide 20: i jee <aagguit™ = Pe
i jee <aagguit™ = Pe ek fen ee intl le . at! aay , GRANITE POINT, *' MORTGAGE TRUST tal M
Granite Point Mortgage Trust — Q1 2020 Earnings Presentation on 6ix