Granite Point Mortgage Trust Inc. · NYSE:GPMT
Granite Point Mortgage Trust — Q2 2021 Earnings Presentation
25 slides from Granite Point Mortgage Trust's earnings presentation, Aug 9, 2021
Slide 1: Second Quarter 2021 Earnings Presentation
August 10, 2021 Second 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 stabilized LTV of 63.5%.(2) ▪ Strong collections of interest through July 2021 with 100% of borrowers making their contractual payments in acc
Slide 4: Second Quarter 2021 Highlights
Second 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 $14.2 million, or $0.26 per basic share, including a reversal of interest income of $(2.1) mil
Slide 5: Second Quarter 2021 Financial Summary
Second Quarter 2021 Financial Summary 5 SUMMARY INCOME STATEMENT ($ IN MILLIONS, EXCEPT PER SHARE DATA) Net Interest Income $22.8 Benefit from (Provision for) Credit Losses $0.2 Operating Expenses $(8.7) GAAP Net Income(1) $14.2 Wtd. Avg. Basic Common Shares 55,009,732 Diluted Common Shares 58,526,9
Slide 6: Key Drivers of Second Quarter 2021 Earnings and Book Value Per Share
$17.22 $17.27 $15.00 $15.50 $16.00 $16.50 $17.00 $17.50 $18.00 3/31/2021 Pre-Provision GAAP Earnings Benefit from (Provision for) Credit Losses Dividend Declaration Other 6/30/2021 $(0.25)$0.26 Key Drivers of Second Quarter 2021 Earnings and Book Value Per Share • Earnings impacted by a reversal of
Slide 7: Second Quarter 2021 Portfolio Activity
$3,872 $3,647 $- $1,000 $2,000 $3,000 $4,000 $5,000 3/31/2021 Portfolio 2Q21 Fundings & Deferrals 2Q21 Prepayments & Amortization 6/30/2021 $ I n M il li o n s Second Quarter 2021 Portfolio Activity 7 (1) Mixed-use properties represented based on allocated loan amounts (2) See definition in the appe
Slide 8: Historical Portfolio Principal Balance
$3,932 $3,647 $- $1,000 $2,000 $3,000 $4,000 $5,000 12/31/2020 Portfolio 2021 Fundings & Deferrals 2021 Prepayments & Amortization 6/30/2021 $ I n M il li o n s Historical Portfolio Principal Balance 8 (1) Data based on principal balance of investments. (2) Includes fundings of prior loan commitment
Slide 9: Investment Portfolio as of June 30, 2021
Investment Portfolio as of June 30, 2021 9 PROPERTY TYPE(2) GEOGRAPHY STABILIZED LTV(1) RISK RATINGS (1) See definition in the appendix. (2) Mixed-use properties represented based on allocated loan amounts. KEY PORTFOLIO STATISTICS Outstanding Principal Balance $3,647.5m Total Loan Commitments $4,08
Slide 10: Investment Portfolio LIBOR Floors
5.5% 3.0% 14.2% 25.1% 43.8% 3.9% 4.5% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 2015 2016 2017 2018 2019 2020 2021 % o f P o rt fo li o 1 -M o n th U .S . L IB O R % of Floating Rate Loan Portfolio Wtd. Avg. LIBOR Floor by Loan Vintage Wtd. Avg. Por
Slide 11: Q2 2021 Portfolio Developments and Watch List Loans
Q2 2021 Portfolio Developments and “Watch List” Loans 11 Pasadena, CA Retail(1) Minneapolis, MN Hotel(1) New York, NY Retail/Office(2) Washington D.C. Office(1) Louisville, KY Student Housing Loan Structure Senior floating-rate Senior floating-rate Senior floating-rate Senior floating-rate Senior fl
Slide 12: Diversified Capital Sources
CLOsRepurchase Facilities Senior Convertible Notes Term Loan Term Financing Facility Asset Specific Diversified Capital Sources 12 (1) Outstanding principal balance, excludes deferred debt issuance costs. (2) Does not include fees and other transaction related expenses. (3) Non-Mark-to-Market. (4) S
Slide 13: Appendix
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Slide 14: Summary of Investment Portfolio
Summary of Investment Portfolio 14 ($ 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) $4,072.8 $3,631.7 $3,566.1 L + 3.48% L + 4.13% 3.1 66.0% 63.6% Subordina
Slide 15: Investment Portfolio Detail
Investment Portfolio Detail 15 ($ 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 + 4.15
Slide 16: Average Balances and Yields/Cost of Funds
Average Balances and Yields/Cost of Funds 16 Quarter Ended June 30, 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) $3,689,170 $48,969 5.3% Subordinated loans 15,977 380 9.5% Other — 103 —%
Slide 17: Condensed Balance Sheets
Condensed Balance Sheets 17 GRANITE POINT MORTGAGE TRUST INC. CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT SHARE DATA) June 30, 2021 December 31, 2020 ASSETS (unaudited) Loans held-for-investment $ 3,635,315 $ 3,914,469 Allowance for credit losses (57,671) (66,666) Loans held-for-inve
Slide 18: Condensed Statements of Comprehensive Income
Condensed Statements of Comprehensive (Loss) Income 18 GRANITE POINT MORTGAGE TRUST INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in thousands, except share data) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Interest income: (unaudited) (unaudited) (una
Slide 19: Reconciliation of GAAP Net Income to Distributable Earnings
Reconciliation of GAAP Net Income to Distributable Earnings(1) 19 ($ IN MILLIONS, EXCEPT PER SHARE DATA) Q2 2021 Q1 2021 GAAP Net Income(1) $14.2 $28.0 Adjustments: (Benefit from) Provision for Credit Losses $(0.2) $(9.1) Non-Cash Equity Compensation $1.6 $1.9 Distributable Earnings $15.7 $20.7 Wtd.
Slide 20: Financial Statements Impact of CECL Reserves
Financial Statements Impact of CECL Reserves 20 • Total allowance for credit losses of $62.9 million, of which $5.2 million is related to future funding obligations and recorded in other liabilities. • Loans reported on the balance sheet are net of the allowance for credit losses. ($ in thousands) A
Slide 21: ▪ 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 22: ▪ 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 23: Other Definitions
Other Definitions 23 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 24: Company Information
Company Information 24 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 25: Granite Point Mortgage Trust
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