Granite Point Mortgage Trust Inc. · NYSE:GPMT
Granite Point Mortgage Trust — FY2022 Earnings Presentation
28 slides from Granite Point Mortgage Trust's earnings presentation, Feb 24, 2023
Slide 1: Fourth Quarter and Full Year 2022 Earnings Presentation
Fourth Quarter and Full Year 2022 Earnings February 24, 2023 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
Company Business Update ▪ Defensively-positioned and broadly-diversified portfolio of 100% CRE loans (over 99% senior first mortgages) with weighted average stabilized LTV of 62.9%*. PORTFOLIO ▪ Weighted average portfolio risk rating of 2.5 as of December 31, 2022. CREDIT QUALITY ▪ Well positioned p
Slide 4: Fourth Quarter and Full Year 2022 Results
Fourth Quarter and Full Year 2022 Results ▪ FY 2022 GAAP net (loss)* of $(55.3) million, or $(1.04) per ▪ Q4 GAAP net (loss)* of $(9.9) million, or $(0.19) per basic basic share, inclusive of a $(69.3) million, or $(1.32) per share, inclusive of a $(16.5) million, or $(0.32) per basic basic share, p
Slide 5: Fourth Quarter 2022 Financial Summary
Fourth Quarter 2022 Financial Summary SUMMARY INCOME STATEMENT SUMMARY BALANCE SHEET ($ IN MILLIONS, EXCEPT PER SHARE DATA) ($ IN MILLIONS, EXCEPT PER SHARE DATA, REFLECTS CARRYING VALUES) Net Interest Income $21.0 Cash $133.1 (Provision) for Credit Losses $(16.5) Restricted Cash $7.0 Loans Held-for
Slide 6: Key Drivers of Fourth Quarter 2022 Earnings and Book Value Per Share
Key Drivers of Fourth Quarter 2022 Earnings and Book Value Per Share • GAAP Net (Loss)* of $(9.9) million, or $(0.19) per basic share, inclusive of a $(16.5) million, or $(0.32) per basic share, provision for credit losses. • Distributable (Loss)** of $(8.2) million, or $(0.16) per basic share, incl
Slide 7: Fourth Quarter 2022 Portfolio Activity
Fourth Quarter 2022 Portfolio Activity • Total funding activity of $109.3 million(2): PAYOFFS BY PROPERTY TYPE(4) Hotel, 4.0% – Funded $31.2 million of existing loan commitments and a Multifamily, 5.9% $77.3 million loan related to the non-accrual resolution. • Realized repayments, paydowns, one loa
Slide 8: 2022 Portfolio Activity
2022 Portfolio Activity PORTFOLIO ACTIVITY(3) ORIGINATIONS BY PROPERTY TYPE(4) Other, 8.6% Office, 10.0% $5,000 Multifamily, Retail, 41.8% $4,000 $567 Total maximum $3,592 commitments 18.4% $(1,002) $3,797 $230 Future funding commitments Industrial, $ In Millions $3,362 21.2% $3,000 $2,000 PAYOFFS B
Slide 9: Investment Portfolio as of December 31, 2022
Investment Portfolio as of December 31, 2022 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(2) GEOGRAPHY Industrial, 5.6% Other, 2.6% Outstanding $3.4 billion Retail,
Slide 10: Sensitivity to Short-term Interest Rates
Sensitivity to Short-term Interest Rates • Portfolio is over 98% floating rate with a weighted average LIBOR/SOFR floor of 0.99%, meaningfully below current level of short- term benchmark interest rates. • All LIBOR/SOFR floors are currently below the level of market rates. • Well positioned for fur
Slide 11: Portfolio Developments and “Watch List” Loans
Portfolio Developments and “Watch List” Loans • In October, successfully resolved a $114.1 million senior loan that was on non-accrual status. The resolution involved a coordinated sale of the collateral retail property and GPMT providing new ownership group with a new $77.3 million senior loan supp
Slide 12: Diversified Capital Sources
Diversified Capital Sources WELL-DIVERSIFIED CAPITALIZATION PROFILE WITH MODERATE LEVERAGE FINANCING SUMMARY AS OF DECEMBER 31, 2022 LEVERAGE* Total Outstanding Wtd. Avg Advance Non- 3.0x Capacity Balance(11) Coupon* Rate MTM* 2.3x ($ IN MILLIONS) 2.0x Repurchase Facilities(12) $1,871 $969 L+/S + 2.
Slide 13: Endnotes
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Slide 14: Endnotes
Endnotes 1) Includes fundings of prior loan commitments of $137.2 million, one loan upsizing of $6.2 million and capitalized deferred interest of $2.4 million. 2) Includes fundings of prior loan commitments of $31.2 million and capitalized deferred interest of $0.8 million. 3) Data based on principa
Slide 15: Appendix
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Slide 16: Summary of Investment Portfolio
Summary of Investment Portfolio Maximum Original Loan Principal Carrying Cash All-in Yield at Term Stabilized ($ IN MILLIONS) Commitment Balance Value Coupon* Origination* (Years)* Initial LTV* LTV* Senior Loans* $3,577.8 $3,348.2 $3,254.6 L +/S + 3.61% L +/S + 4.05% 3.1 66.5% 63.0% Subordinated Loa
Slide 17: Investment Portfolio Detail
Investment Portfolio Detail All-in Origination Maximum Loan Principal Carrying Cash Yield at Original Term Property ($ IN MILLIONS) Type* Date Commitment Balance Value Coupon* Origination* (Years)* State Type Initial LTV* Stabilized LTV* Asset 1 Senior 12/19 $111.1 $108.9 $108.7 L + 2.75% L + 3.23%
Slide 18: Average Balances and Yields/Cost of Funds
Average Balances and Yields/Cost of Funds Quarter Ended December 31, 2022 ($ IN THOUSANDS) Average Balance** Interest Income/Expense† Net Yield/Cost of Funds Interest-earning assets Loans held-for-investment Senior loans* $3,419,899 $59,721 7.0% Subordinated loans 13,791 304 8.8% Other — 1,394 —% To
Slide 19: Consolidated Balance Sheets
Consolidated Balance Sheets GRANITE POINT MORTGAGE TRUST INC. December 31, December 31, CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT SHARE DATA) 2022 2021 ASSETS (unaudited) Loans held-for-investment $ 3,350,150 $ 3,782,205 Allowance for credit losses (82,335) (40,897) Loans held-for-investment
Slide 20: Consolidated Statements of Comprehensive Income (Loss)
Consolidated Statements of Comprehensive Income (Loss) GRANITE POINT MORTGAGE TRUST INC. Three Months Ended Year Ended CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME December 31, December 31, (in thousands, except share data) 2022 2021 2022 2021 Interest income: (unaudited) (unaudited) Loans
Slide 21: 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) Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 GAAP Net (loss) Income* $6.7 $1.0 $(17.4) $(29.1) $(9.9) Adjustments: Provision (Benefit from) for Credit Losses $(5.0) $3.7 $13.6 $35.4 $16
Slide 22: Financial Statements Impact of CECL Reserves
Financial Statements Impact of CECL Reserves • Total allowance for credit losses of $86.6 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) Q4 2
Slide 23: Distributable Earnings
Distributable Earnings ▪ Beginning with our Annual Report on Form 10-K for the year ended December 31, 2021, and for all subsequent reporting periods ending on or after December 31, 2021, 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 all-in yield at origination are based on a number of assumptions (some or all of Weighted which may not occur) and are expressed as monthly equivalent yields that include net origination fees and exit fees and exclude Avera
Slide 26: 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 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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