Granite Point Mortgage Trust Inc. · NYSE:GPMT
Granite Point Mortgage Trust — Q4 2017 Earnings Presentation
18 slides from Granite Point Mortgage Trust's earnings presentation, Feb 7, 2018
Slide 1: Fourth Quarter 2017 Earnings Presentation
February 8, 2018 Fourth Quarter 2017 Earnings Presentation
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains, in addition to historical information, certain forward-looking statements that are based on our current assumptions, expectations and projections about future performance and events. In particular, statements regarding future economic performance, fi
Slide 3: Company Overview
Company Overview(1) 3 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 4: Investment Strategy and Target Assets
Investment Strategy and Target Assets 4 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 5: Business Highlights
Business Highlights FOURTH QUARTER 2017 FINANCIAL HIGHLIGHTS • Delivered GAAP net income of $14.1 million or $0.33 per common share; Core Earnings of $14.5 million or $0.34 per common share(1); taxable income of $17.9 million or $0.41 per common share; dividend of $0.38 per common share; and book va
Slide 6: Fourth Quarter 2017 Origination Highlights
$ 2,202 $ 2,379 - 500 1,000 1,500 2,000 2,500 9/30/17 Portfolio 4Q17 Fundings 4Q17 Prepayments & Amortization 4Q17 Portfolio $ i n M ill ion s Fourth Quarter 2017 Origination Highlights ORIGINATIONS OVERVIEW • 6 senior floating rate commercial real estate loans – Gross loan commitments of $334.7 mil
Slide 7: Investment Portfolio as of December 31, 2017
Investment Portfolio as of December 31, 2017 7 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 $2.4b Total L
Slide 8: Interest Rate Sensitivity
Interest Rate Sensitivity • A 100 basis point increase in U.S. LIBOR would increase our annual net interest income per share by approximately $0.18 8 PORTFOLIO FLOATING VS FIXED NET INTEREST INCOME PER SHARE SENSIVITY TO CHANGES IN US LIBOR(1) 1) Represents estimated change in net interest income fo
Slide 9: Case Studies
9 Case Studies Note: The above loan examples are provided for illustration purposes only. • $47 million floating rate, first mortgage loan secured by an historic, boutique office building with ground floor retail • Well located in the Financial District of the Boston CBD, which has a submarket vacan
Slide 10: Fourth Quarter 2017 Earnings Summary
Fourth Quarter 2017 Earnings Summary • Loan closings weighted towards the end of the fourth quarter • Dividend of $0.38 driven by Core Earnings but also taxable income recognized in the quarter • Taxable income was $17.9 million, or $0.41 per common share, and included $3.4 million of tax interest i
Slide 11: Fourth Quarter 2017 Capitalization & Liquidity
Fourth Quarter 2017 Capitalization & Liquidity 11 • Amended 2 financing facilities to increase borrowing capacity by a combined $350 million, bringing total borrowing capacity to over $2.3 billion • Issued $125 million of 5-year convertible notes in December, plus nearly $19 million in additional no
Slide 12: Appendix
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Slide 13: Summary of Investment Portfolio as of December 31, 2017
Summary of Investment Portfolio as of December 31, 2017 13 ($ in millions) Maximum Loan Commitment Principal Balance Book Value Cash Coupon(1) Yield(2) Original Terms (Years) Initial LTV(3) Stabilized LTV Senior $2,558.0 $2,220.4 $2,200.4 L + 4.41% L + 4.97% 3.4 69.5% 64.1% Mezzanine $105.4 $103.8 $
Slide 14: Investment Portfolio Detail
Investment Portfolio Detail (1) 14 1) As of December 31, 2017. 2) Cash coupon does not include origination or exit fees. Weighted average cash coupon excludes fixed rate loans. 3) Yield includes net origination fees and exit fees, but does not include future fundings, and is expressed as a monthly e
Slide 15: Average Balances and Yields/Cost of Funds
Average Balances and Yields/Cost of Funds 15 Quarter Ended December 31, 2017 (dollars in thousands) Average Balance(1) Interest Income/Expense Net Yield/Cost of Funds Interest-earning assets Loans held-for-investment First mortgages $2,109,498 $33,282 6.3% Subordinated loans 103,919 2,554 9.8% CMBS
Slide 16: Fourth Quarter 2017 Consolidated Balance Sheets
Fourth Quarter 2017 Consolidated Balance Sheets 16 (4) GRANITE POINT MORTGAGE TRUST INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share data) December 31, 2017 December 31, 2016 ASSETS (unaudited) Loans held-for-investment $ 2,304,266 $ 1,364,291 Available-for-sale securities, at fair value
Slide 17: Fourth Quarter 2017 Consolidated Statements of Comprehensive Income
Fourth Quarter 2017 Consolidated Statements of Comprehensive Income 17 (4) GRANITE POINT MORTGAGE TRUST INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in thousands, except share data) Three Months Ended December 31, Year Ended December 31, 2017 2016 2017 2016 Interest income: (unaudited) (una
Slide 18: Granite Point Mortgage Trust
GRANITE POINT. * MORTGAGE TRUST
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