Granite Point Mortgage Trust Inc. · NYSE:GPMT
Granite Point Mortgage Trust — Q1 2023 Earnings Presentation
26 slides from Granite Point Mortgage Trust's earnings presentation, May 10, 2023
Slide 1: First Quarter 2023 Earnings Supplemental
First Quarter 2023 Earnings Supplemental May 10, 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: First Quarter 2023 Results
First Quarter 2023 Results ▪ GAAP net (loss)* of $(37.5) million, or $(0.72) per basic share, inclusive of a $(46.4) million, or $(0.89) per basic share, provision for credit losses. FINANCIAL ▪ Distributable Earnings** of $10.7 million, or $0.20 per basic share. SUMMARY ▪ Book value per common shar
Slide 4: First Quarter 2023 Financial Summary
First Quarter 2023 Financial Summary SUMMARY INCOME STATEMENT SUMMARY BALANCE SHEET ($ IN MILLIONS, EXCEPT PER SHARE DATA) ($ IN MILLIONS, EXCEPT PER SHARE DATA, REFLECTS CARRYING VALUES) Net Interest Income $22.9 Cash $223.4 (Provision) for Credit Losses $(46.4) Loans Held-for-Investment, net $3,18
Slide 5: Key Drivers of First Quarter 2023 Earnings and Book Value Per Share
Key Drivers of First Quarter 2023 Earnings and Book Value Per Share • GAAP Net (Loss)* of $(37.5) million, or $(0.72) per basic share, inclusive of a $(46.4) million, or $(0.89) per basic share, of provision for credit losses. • Distributable Earnings** of $10.7 million, or $0.20 per basic share. •
Slide 6: Portfolio Credit Overview
Portfolio Credit Overview • Weighted average portfolio risk rating of 2.6 as of March 31, 2023. CECL RESERVE BY QUARTER* GENERAL AND SPECIFIC CECL RESERVE* General Specific $133.0 $133.0 $86.6 $67.5 $85.6 $86.6 $39.3 $50.1 $65.5 $47.3 6/30/2022 9/30/2022 12/31/2022 3/31/2023 12/31/2022 3/31/2023 STA
Slide 7: Investment Portfolio as of March 31, 2023
Investment Portfolio as of March 31, 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) Other, 2.7% Industrial, 5.8% Outstanding Principal Balance $3.3 billion Ret
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 LIBOR/SOFR FLOOR BY LOAN VINTAGE CHANGES IN 1-MO. U.S. LIBOR/SOFR AS OF M
Slide 9: Overview of Risk-Rated "5" Loans
Overview of Risk-Rated “5” Loans • As of March 31, 2023, the Company had five collateral-dependent loans that were risk-rated “5” with an aggregate principal balance of $274.8 million, for which the Company recorded an allowance for credit losses of $67.5 million. • Actively pursuing resolution opti
Slide 10: Diversified Capital Sources
Diversified Capital Sources WELL-DIVERSIFIED CAPITALIZATION PROFILE WITH MODERATE LEVERAGE FINANCING SUMMARY AS OF MARCH 31, 2023 LEVERAGE* Total Outstanding Wtd. Avg Advance Non- 3.0x 2.5x ($ IN MILLIONS) Capacity Balance(9) Coupon* Rate MTM* 2.0x Repurchase Facilities(10) $1,875 $1,184 S + 2.57% 6
Slide 11: Endnotes
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Slide 12: Endnotes
Endnotes 1) Mixed-use properties represented based on allocated loan amounts. 2) Max remaining term assumes all extension options are exercised and excludes four loans that have passed its maturity date and are not eligible for extension, if applicable. 3) Reflects changes to LIBOR/SOFR floors arisi
Slide 13: Appendix
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Slide 14: Summary of Investment Portfolio
Summary of Investment Portfolio Maximum Original Loan Principal Carrying Cash All-in Yield at Term Stabilized ($ IN MILLIONS) Commitment Balance Value Coupon* Origination* (Years)* Initial LTV* LTV* Senior Loans* $3,511.6 $3,307.1 $3,169.2 L +/S + 3.67% L +/S + 4.04% 3.1 66.5% 63.0% Subordinated Loa
Slide 15: Investment Portfolio Detail
Investment Portfolio Detail All-in Origination Maximum Loan Principal Carrying Cash Yield at Original Term Property ($ IN MILLIONS) Type* Date Commitment Balance Value Coupon* Origination* (Years)* State Type Initial LTV* Stabilized LTV* Asset 1 Senior 12/19 $111.1 $109.2 $109.0 L + 2.75% L + 3.23%
Slide 16: Average Balances and Yields/Cost of Funds
Average Balances and Yields/Cost of Funds Quarter Ended March 31, 2023 ($ IN THOUSANDS) Average Balance** Interest Income/Expense† Net Yield/Cost of Funds Interest-earning assets Loans held-for-investment Senior loans* $3,339,047 $65,017 7.8% Subordinated loans 13,722 274 8.0% Other — 1,428 —% Total
Slide 17: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets GRANITE POINT MORTGAGE TRUST INC. March 31, December 31, CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT SHARE DATA) 2023 2022 ASSETS (unaudited) Loans held-for-investment $ 3,310,830 $ 3,350,150 Allowance for credit losses (128,451) (82,335) Loans h
Slide 18: Condensed Consolidated Statements of Comprehensive Income (Loss)
Condensed Consolidated Statements of Comprehensive Income (Loss) GRANITE POINT MORTGAGE TRUST INC. Three Months Ended CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME March 31, (in thousands, except share data) 2023 2022 Interest income: (unaudited) (unaudited) Loans held-for-investm
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) Q2 2022 Q3 2022 Q4 2022 Q1 2023 GAAP Net (loss) Income* $(17.4) $(29.1) $(9.9) $(37.5) Adjustments: Provision (Benefit from) for Credit Losses $13.6 $35.4 $16.5 $46.4 Loss (Gain) o
Slide 20: Financial Statements Impact of CECL Reserves
Financial Statements Impact of CECL Reserves • Total allowance for credit losses of $133.0 million, of which $4.5 million is related to future funding obligations and recorded in other liabilities. • Loans reported on the balance sheet are net of the allowance for credit losses. ($ in thousands) Q1
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 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 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
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