Granite Point Mortgage Trust Inc. · NYSE:GPMT
Granite Point Mortgage Trust — Q4 2024 Earnings Presentation
29 slides from Granite Point Mortgage Trust's earnings presentation, Feb 14, 2025
Slide 1: Q4 and Full Year 2024 Earnings Supplemental
Q4 and Full Year 2024 Earnings Supplemental February 14, 2025
Slide 2: Legal Disclosures
Legal Disclosures 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 actual
Slide 3: Company Overview
Company Overview An internally-managed commercial real estate finance company operating as a REIT, focused on originating and investing in floating-rate, first mortgage loans secured by institutional-quality transitional properties. Conservatively managed balance sheet with a granular investment por
Slide 4: Q4 2024 Summary Results
Q4 2024 Summary Results ▪ GAAP Net (Loss) attributable to common stockholders of $(42.4) million, or $(0.86) per basic common share FINANCIAL ▪ Distributable Earnings (Loss)(3) of $(98.2) million or $(1.98) per basic common share SUMMARY ▪ Distributable Earnings (Loss)(3) Before Realized Gains and L
Slide 5: Post-Q4 2024 Business Update
Post-Q4 2024 Business Update ▪ In January, took as REO an office property in Miami Beach, FL via a negotiated transaction with an expected net carrying value of approximately $71.0 million ◦ As of December 31, 2024, loan was on nonaccrual status with an unpaid principal balance of $71.3 million and
Slide 6: Q4 2024 Financial Summary
Q4 2024 Financial Summary Summary Income statement Summary Balance Sheet ($ in millions, except per share data) ($ in millions, except per share data, reflects carrying values) (Unaudited) (Unaudited) Net Interest Income $7.6 Cash $87.8 (Provision) for Credit Losses $(37.2) Restricted Cash $26.7 Rev
Slide 7: Q4 2024 Earnings and Book Value Per Share
Q4 2024 Earnings and Book Value Per Share ▪ GAAP Net (Loss) attributable to common stockholders of $(42.4) million, or $(0.86) per basic common share, inclusive of a $(37.2) million, or $(0.75) per basic common share, provision for credit losses ▪ Book value per share of common stock at December 31,
Slide 8: Loan Investment Portfolio Credit Overview
Loan Investment Portfolio Credit Overview CECL RESERVE BY QUARTER ( $ i n m i l l i o n s ) CECL RESERVE AS % OF COMMITMENTS BY QUARTER General Specific 10.5% $266.9 $259.0 9.7% 9.2% $212.7 $201.0 7.5% $195.0 $200.3 $155.3 $154.7 $57.4 $71.9 $58.8 $46.3 3/31/2024 6/30/2024 9/30/2024 12/31/2024 3/31/
Slide 9: Q4 2024 Loan Investment Portfolio Activity
Q4 2024 Loan Investment Portfolio Activity ▪ Net loan portfolio activity of $(242.7) million in unpaid principal balance, attributed to five full loan repayments of $(124.8) million, partial repayments of $(2.8) million, four loan resolutions of $(175.6) million, offset by increases of a $48.0 milli
Slide 10: Loan Investment Portfolio Overview
Loan Investment Portfolio Overview Well-diversified and granular portfolio comprised of over 99% senior loans with a weighted average stabilized LTV at origination of 64.4% KEY LOAN PORTFOLIO STATISTICS PROPERTY TYPE(9)(10) Other, 3.1% Industrial, 6.0% Unpaid Principal Balance $2.1 billion Hotel, 6.
Slide 11: Overview of Risk-Rated "5" Loans
Overview of Risk-Rated “5” Loans • Seven loans risk rated “5” with an aggregate unpaid principal balance of $453.3 million • Actively pursuing resolution options, which may include foreclosure, deed-in-lieu, loan restructuring loan or collateral sale • Specific CECL reserves of approximately 34% of
Slide 12: Office Loan Portfolio Overview
Office Loan Portfolio Overview • Since 2021, reduced the office exposure by over $(700) REDUCTION IN OFFICE EXPOSURE(9) ($ in millions) million, or over 40%, primarily through repayments, paydowns and proactive loan resolutions • Granular office portfolio across 20 MSAs and 16 States $1,723 • 62% CB
Slide 13: Funding Mix and Capitalization Highlights
Funding Mix and Capitalization Highlights WELL-BALANCED CAPITAL STRUCTURE WITH MODERATE LEVERAGE FINANCING SUMMARY ($ in millions) LEVERAGE RATIO’S Total Outstanding Weighted Advance Non- 2.2 Capacity Balance(15) Average Cost Rate MTM ($ in millions) Repurchase Facilities $1,237 $598 S + 3.39% 61.7
Slide 14: Endnotes
Endnotes
Slide 15: Endnotes
Endnotes 1) Includes maximum loan commitments. Unpaid loan principal balance of $2.1 billion 2) Represents Net (loss) attributable to common stockholders 3) Non-GAAP measure. See slide 22 in the Appendix for a reconciliation to financial results prepared in accordance with GAAP 4) Dividend yield is
Slide 16: Appendix
Appendix
Slide 17: Summary of Investment Portfolio
Summary of Investment Portfolio Maximum Original Stabilized Loan Principal Carrying Cash All-in Yield at Term Initial LTV at LTV at ($ in millions) Commitment Balance Value Coupon* Origination** (Years) Origination Origination Senior Loans $2,183.7 $2,093.1 $1,884.6 S+3.77% S+4.01% 3.0 69.8% 64.6% S
Slide 18: Loan Investment Portfolio
Loan Investment Portfolio Maximum All-in Original Stabilized Origination Loan Principal Carrying Cash Yield at Term Initial LTV at LTV at ($ in millions) Type Date Commitment Balance Value Coupon* Origination** (Years) State Property Type Origination Origination Asset 1 Senior 12/19 $111.1 $109.2 $1
Slide 19: Average Balances and Yields/Cost of Funds
Average Balances and Yields/Cost of Funds Quarter Ended December 31, 2024 ($ in thousands) Average Balance* Interest Income/Expense Net Yield/Cost of Funds Interest-earning assets Loans held-for-investment Senior loans $2,284,658 $37,452 6.6 % Subordinated loans 13,261 271 8.2 % Total loan interest
Slide 20: Consolidated Balance Sheets
Consolidated Balance Sheets GRANITE POINT MORTGAGE TRUST INC. December 31, December 31, CONSOLIDATED BALANCE SHEETS (in thousands, except share data) 2024 2023 ASSETS (unaudited) Loans held-for-investment $ 2,097,375 $ 2,718,486 Allowance for credit losses (199,727) (134,661) Loans held-for-investme
Slide 21: Consolidated Statements of Comprehensive (Loss) Income
Consolidated Statements of Comprehensive (Loss) Income GRANITE POINT MORTGAGE TRUST INC. Three Months Ended Twelve Months Ended CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) December 31, December 31, (in thousands, except share data) 2024 2023 2024 2023 Interest income: (unaudited) (unaudit
Slide 22: Quarterly Per Share Calculations
Quarterly Per Share Calculations RECONCILIATION OF GAAP TO NON-GAAP MEASURES ($ in millions, except per share data) (unaudited) Q1 2024 Q2 2024 Q3 2024 Q4 2024 2024 GAAP Net (loss) income $ (77.7) $ (66.7) $ (34.6) $ (42.4) $ (221.5) Adjustments: Provision (Benefit from) for Credit Losses $ 75.6 $ 6
Slide 23: Financial Statements Impact of CECL Reserves
Financial Statements Impact of CECL Reserves • Total allowance for credit losses of $(201.0) million, of which $1.3 million is related to future funding obligations and recorded in other liabilities • Loans reported on the balance sheet are net of the allowance for credit losses ($ in thousands) Q4
Slide 24: Distributable Earnings (Loss)
Distributable Earnings (Loss) ▪ Beginning with our Annual Report on Form 10-K for the year ended December 31, 2023, and for all subsequent reporting periods ending on or after December 31, 2023, we have elected to present Distributable Earnings (Loss), a non-GAAP measure, as a supplemental method of
Slide 25: Distributable Earnings (Loss) (cont'd)
Distributable Earnings (Loss) (cont’d) ▪ While Distributable Earnings (Loss) 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 (Loss) if and when such amounts are deemed non-recoverab
Slide 26: Other Definitions
Other Definitions ▪ Provided for illustrative purposes only. Calculations of realized loan portfolio yield are based on a number of assumptions Realized Loan Portfolio Yield (some or all of which may not occur) and are expressed as monthly equivalent yields that include net origination fees and exit
Slide 27: Other Definitions (cont'd)
Other Definitions (cont’d) REO ▪ Real estate owned Repayments ▪ Reductions in a loan’s principal balance, including full loan repayments, partial loan repayments, principal amortization, cost- recovery for non-accrual loans and capitalized deferred interest repayments Resolutions ▪ Reductions in a l
Slide 28: 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 29: GRANIT
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