Granite Point Mortgage Trust Inc. · NYSE:GPMT
Granite Point Mortgage Trust — Q2 2023 Earnings Presentation
26 slides from Granite Point Mortgage Trust's earnings presentation, Aug 9, 2023
Slide 1: Second Quarter 2023 Earnings Supplemental
Second Quarter 2023 Earnings Supplemental August 09, 2023
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: Q2 2023 Summary Results & Subsequent Events
Q2 2023 Summary Results & Subsequent Events ▪ GAAP net income* of $1.4 million, or $0.03 per basic share, inclusive of a $(5.8) million, or $(0.11) per basic share, provision for credit losses. FINANCIAL ▪ Pre-loss Distributable Earnings of $10.2 million, or $0.20 per basic share. Distributable Earn
Slide 4: Q2 2023 Financial Summary
Q2 2023 Financial Summary SUMMARY INCOME STATEMENT SUMMARY BALANCE SHEET ($ IN MILLIONS, EXCEPT PER SHARE DATA) ($ IN MILLIONS, EXCEPT PER SHARE DATA, REFLECTS CARRYING VALUES) Net Interest Income $21.8 Cash $235.8 (Provision) for Credit Losses $(5.8) Restricted Cash $41.0 Revenue / (Expenses) from
Slide 5: Key Drivers of Q2 2023 Earnings and Book Value Per Share
Key Drivers of Q2 2023 Earnings and Book Value Per Share • GAAP Net Income* of $1.4 million, or $0.03 per basic share, inclusive of a $(5.8) million, or $(0.11) per basic share, of provision for credit losses. • Distributable Earnings** of $6.0 million, or $0.12 per basic share, inclusive of a write
Slide 6: Loan Portfolio Credit Overview
Loan Portfolio Credit Overview • Weighted average portfolio risk rating of 2.7 as of June 30, 2023. GENERAL AND SPECIFIC CECL RESERVE BY QTR.* CECL RESERVE AS % OF COMMITMENTS BY QTR. General Specific 4.1% $133.0 $134.6 3.8% $67.5 $62.3 $85.6 $86.6 2.2% 2.4% $50.4 $39.3 $65.5 $72.3 $47.3 $35.2 9/30/
Slide 7: Loan Portfolio Overview as of June 30, 2023
Loan Portfolio Overview as of June 30, 2023 High-quality, well-diversified portfolio comprised of over 99% senior loans with a weighted average stabilized LTV at origination of 62.9%*. KEY PORTFOLIO STATISTICS PROPERTY TYPE(1) Industrial, 6.4% Other, 2.9% Outstanding Principal Balance $3.1 billion H
Slide 8: Sensitivity to Short-term Interest Rates
Sensitivity to Short-term Interest Rates • Portfolio is over 98% floating rate. • Well-positioned for further increases in short-term benchmark interest rates. QTR. NET INTEREST INCOME PER SHARE SENSITIVITY TO WEIGHTED AVERAGE SOFR BY LOAN VINTAGE CHANGES IN 1-MO. U.S. LIBOR/SOFR AS OF JUNE 30, 2023
Slide 9: Overview of Risk-Rated "5" Loans
Overview of Risk-Rated “5” Loans • As of June 30, 2023, the Company held four collateral-dependent loans that were risk-rated “5” with an aggregate principal balance of $245.6 million, for which the Company recorded an allowance for credit losses of $62.3 million. • The Company is actively pursuing
Slide 10: Funding Mix and Capitalization Highlights
Funding Mix and Capitalization Highlights WELL-DIVERSIFIED CAPITAL STRUCTURE WITH MODERATE LEVERAGE FINANCING SUMMARY AS OF JUNE 30, 2023 LEVERAGE* Total Outstanding Wtd. Avg Advance Non- 3.0x ($ IN MILLIONS) Capacity Balance(9) Coupon* Rate MTM* 2.3x 2.0x Repurchase Facilities(10) $1,750 $1,065 S +
Slide 11: Endnotes
Endnotes
Slide 12: Endnotes
Endnotes 1) Mixed-use properties represented based on allocated loan amounts. 2) Max remaining term assumes all extension options are exercised and excludes four loans that have passed its maturity date and are not eligible for extension, if applicable. 3) Reflects changes to SOFR floors arising fro
Slide 13: Appendix
Appendix
Slide 14: Summary of Investment Portfolio
Summary of Investment Portfolio Maximum Original Loan Principal Carrying Cash All-in Yield at Term Stabilized ($ IN MILLIONS) Commitment Balance Value Coupon* Origination* (Years)* Initial LTV* LTV* Senior Loans* $3,263.7 $3,091.7 $2,952.9 S + 3.76% S + 4.03% 3.1 66.2% 63.1% Subordinated Loans $13.6
Slide 15: Investment Portfolio
Investment Portfolio All-in Origination Maximum Loan Principal Carrying Cash Yield at Original Term Property ($ 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 $109.1 S + 2.80% S + 3.23% 3.0 IL
Slide 16: Average Balances and Yields/Cost of Funds
Average Balances and Yields/Cost of Funds Quarter Ended June 30, 2023 ($ IN THOUSANDS) Average Balance** Interest Income/Expense† Net Yield/Cost of Funds Interest-earning assets Loans held-for-investment Senior loans* $3,209,141 $65,941 8.2% Subordinated loans 13,657 276 8.1% Total loan interest inc
Slide 17: 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) 2023 2022 ASSETS (unaudited) Loans held-for-investment $ 3,096,500 $ 3,350,150 Allowance for credit losses (130,412) (82,335) Loans he
Slide 18: Condensed Consolidated Statements of Comprehensive Income (Loss)
Condensed Consolidated Statements of Comprehensive Income (Loss) 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) 2023 2022 2023 2022 Interest income: (unaudited)
Slide 19: Reconciliation of GAAP Net (Loss) Income to Distributable Earnings
Reconciliation of GAAP Net (Loss) Income to Distributable Earnings * ($ IN MILLIONS, EXCEPT PER SHARE DATA) (UNAUDITED) Q3 2022 Q4 2022 Q1 2023 Q2 2023 GAAP Net (loss) Income* $(29.1) $(9.9) $(37.5) $1.4 Adjustments: Provision (Benefit from) for Credit Losses $35.4 $16.5 $46.4 $5.8 Loss (Gain) on Ex
Slide 20: Financial Statements Impact of CECL Reserves
Financial Statements Impact of CECL Reserves • Total allowance for credit losses of $134.6 million, of which $4.2 million is related to future funding obligations and recorded in other liabilities. • Loans reported on the balance sheet are net of the allowance for credit losses. ($ in thousands) Q2
Slide 21: 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 22: 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 23: 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 24: Other Definitions (cont'd)
Other Definitions (cont’d) ▪ The fully funded loan amount (plus any financing that is pari passu with or senior to such loan), including all contractually provided for future fundings, divided by the as stabilized value (as determined in conformance with USPAP) set forth in the original appraisal. A
Slide 25: 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
Slide 26: Slide 26
Granite Point Mortgage Trust — Q2 2023 Earnings Presentation on 6ix