Granite Point Mortgage Trust Inc. · NYSE:GPMT
Granite Point Mortgage Trust — Q3 2017 Earnings Presentation
18 slides from Granite Point Mortgage Trust's earnings presentation, Nov 7, 2017
Slide 1: Third Quarter 2017 Earnings Presentation
November 7, 2017 Third Quarter 2017 Earnings Presentation
Slide 2: Company Overview
Company Overview(1) 2 C YC LE -T EST ED S E N IO R I N V E STM E NT T E A M AT T RAC T I VE A N D S U STA I NABLE M A R KE T O P P O RTUNI T Y H I G H C R E D IT Q UA L IT Y I N V E STM E NT P O RT FO L IO D I F F ER E NT IATE D D I R E C T O R I G INAT I O N P L ATFO R M LEADING COMMERCIAL REAL EST
Slide 3: Investment Strategy and Target Assets
Investment Strategy and Target Assets 3 INVESTMENT STRATEGY TARGET INVESTMENTS • Focus on generating stable and attractive cash flows while preserving capital base – Primarily direct-originated investments funding property acquisition, refinancing, recapitalization, restructuring and repositioning p
Slide 4: Business Highlights
Business Highlights THIRD QUARTER FINANCIAL HIGHLIGHTS • Delivered GAAP net income of $11.5 million or $0.27 per common share; Core Earnings of $11.9 million or $0.28 per common share(1); taxable income of $14.3 million or $0.33 per common share; and book value of $19.22 per common share. • Closed 1
Slide 5: Origination Highlights
Third Quarter 2017 Origination Highlights ORIGINATIONS OVERVIEW • 11 senior floating rate commercial real estate loans • Gross loan commitments of $450.4 million • Funded $379.8 million of principal balance of loans and an additional $13.6 million of existing loan commitments, bringing total funding
Slide 6: Investment Portfolio as of September 30, 2017
Investment Portfolio as of September 30, 2017 6 PROPERTY TYPE GEOGRAPHY COUPON STRUCTURE INVESTMENT TYPE 1) Expressed as a monthly equivalent yield. Weighted average yield excludes fixed rate loans. 2) Includes mixed-use properties. KEY PORTFOLIO STATISTICS Outstanding Principal Balance $2.2b Total
Slide 7: Interest Rate Sensitivity
Interest Rate Sensitivity • A 100 basis point increase in U.S. LIBOR would increase the annual net interest income per share by approximately $0.14. 7 PORTFOLIO FLOATING VS FIXED Floating 97.5% Fixed 2.5% $0.00 $0.05 $0.10 $0.15 0.25% 0.50% 0.75% 1.00% NET INTEREST INCOME PER SHARE SENSIVITY TO CHAN
Slide 8: Case Studies
8 Case Studies Note: The above loan examples are provided for illustration purposes only. • $30 million floating rate, first mortgage loan secured by two apartment buildings totaling 62 units in Brooklyn, NY • Strong, infill location benefitting from significant recent public and private investment
Slide 9: Earnings Summary
Third Quarter 2017 Earnings Summary • Loan closings weighted towards the end of the third quarter • Dividend of $0.32 driven by core earnings but also taxable income recognized in the quarter • Taxable income was $14.3 million, or $0.33 per common share and included $2.6 million of amortization of g
Slide 10: Capitalization and Liquidity
Third Quarter 2017 Capitalization and Liquidity 10 • Amended financing facility with Morgan Stanley to increase borrowing capacity by $100 million, bringing total borrowing capacity to $2.1 billion; in negotiations to amend a second financing facility to increase borrowing capacity by $250 million,
Slide 11: Appendix
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Slide 12: Formation Summary
Formation Summary COMPANY FORMATION SUMMARY • Granite Point was formed by Two Harbors Investment Corp. (NYSE: TWO) in a spin-out transaction in order to continue the commercial real estate lending business established by Two Harbors in 2015 • As part of the formation transaction in June 2017, we: –
Slide 13: Summary of Investment Portfolio as of September 30, 2017
Summary of Investment Portfolio as of September 30, 2017 13 ($ in millions) Maximum Loan Commitment Principal Balance Book Value Cash Coupon(1) Yield(2) Original Terms (Years) Initial LTV(3) Stabilized LTV Senior $2,312.4 $2,041.8 $2,023.9 L + 4.42% L + 4.97% 3.5 69.7% 64.2% Mezzanine $105.7 $104.1
Slide 14: Investment Portfolio Detail as of September 30, 2017
Investment Portfolio Detail as of September 30, 2017 14 1) Cash coupon does not include origination or exit fees. Weighted average cash coupon excludes fixed rate loans. 2) Yield includes net origination fees and exit fees, but does not include future fundings, and is expressed as a monthly equivale
Slide 15: Average Balances and Yields/Cost of Funds
Third Quarter 2017 Average Balances and Yields/Cost of Funds 15 Three Months Ended September 30, 2017 (dollars in thousands) Average Balance(1) Interest Income/Expense Net Yield/Cost of Funds Interest-earning assets Loans held-for-investment First mortgages $1,776,641 $27,109 6.1% Subordinated loans
Slide 16: Balance Sheet
Third Quarter 2017 Balance Sheet 16 GRANITE POINT MORTGAGE TRUST INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share data) September 30, 2017 December 31, 2016 ASSETS (unaudited) Loans held-for-investment $ 2,127,954 $ 1,364,291 Available-for-sale securities, at fair value 12,814
Slide 17: Income Statement
Third Quarter 2017 Income Statement 17 GRANITE POINT MORTGAGE TRUST INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in thousands, except share data) Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Interest income: (unaudited) (unaudited) Loans hel
Slide 18: Granite Point Mortgage Trust
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