Granite Point Mortgage Trust Inc. · NYSE:GPMT
Granite Point Mortgage Trust — Q2 2020 Earnings Presentation
19 slides from Granite Point Mortgage Trust's earnings presentation, Aug 10, 2020
Slide 1: Second Quarter 2020 Earnings Presentation
Second Quarter 2020 Earnings Presentation August 11, 2020
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 Section 27A of the Securities Act and Section 21E of the Exchange Act and that are subject to the safe harbors created by such se
Slide 3: Company Update
Company Update • Management team has extensive commercial real estate lending experience and has successfully navigated through multiple economic and real estate cycles • More broadly diversified portfolio reduces concentrated event risk ▪ Portfolio is comprised of 99% senior first mortgage loans; W
Slide 4: Second Quarter 2020 Highlights
Second Quarter 2020 Highlights ▪ GAAP net loss of $(0.03) per basic share and Core Earnings(1) of $0.25 per basic share, inclusive of $0.12 FINANCIAL per share of realized loss on a loan sale SUMMARY ▪ Book value of $17.47 per common share PORTFOLIO ▪ Funded $71.2 million of existing loan commitment
Slide 5: Second Quarter 2020 Earnings and Book Value
Second Quarter 2020 Earnings and Book Value • GAAP earnings were affected by $6.9 million (or $0.12 per basic share) of realized loss on a loan sale and $14.2 million (or $0.26 per basic share) of provision for credit losses related to the CECL accounting standard and largely reflects the outlook on
Slide 6: Financial Statements Impact at June 30, 2020
CONFIDENTIAL Financial Statements Impact at June 30 • Overall allowance for credit losses of $86.0 million, of which $8.1 million is related to future funding obligations and recorded in other liabilities, largely reflects an updated macroeconomic forecast that indicates continued impact of the COVI
Slide 7: Historical Portfolio
Historical Portfolio 2020 YEAR TO DATE PORTFOLIO ACTIVITY(2) PORTFOLIO SINCE INCEPTION(3) $5,000 $5,093 Total maximum commitments $5,000 $4,416 $4,288 $677 Future funding commitments $260 $(132) $4,000 $4,416 $4,288 $4,000 $3,233 $3,000 $2,379 $3,000 $ In Millions $ In Millions $2,000 $1,437 $2,000
Slide 8: Investment Portfolio as of June 30, 2020
Investment Portfolio as of June 30, 2020 • High quality, well-diversified portfolio comprised of 99% senior first mortgage loans with a weighted average stabilized LTV at origination of 63.7% KEY PORTFOLIO STATISTICS PROPERTY TYPE(1) GEOGRAPHY Industrial, Other, Outstanding 7.3% 0.9% $4,415.8m Retai
Slide 9: Diversified Capital Sources
Diversified Capital Sources WELL-DIVERSIFIED CAPITALIZATION PROFILE WITH MODERATE LEVERAGE ▪ Outstanding borrowing of $2.0 billion across 5 LEVERAGE REPURCHASE large institutional lenders FACILITIES 4.0x 3.5x ▪ Wtd. avg advance rate of 72.3% 3.0x 2.5x ▪ Approximately $1 billion of fully term-matched
Slide 10: Investment Portfolio LIBOR Floors
Investment Portfolio LIBOR Floors WEIGHTED AVERAGE LIBOR FLOOR BY LOAN VINTAGE 3.0% 38.2% 40.0% 35.0% 2.5% 28.9% 30.0% 25.0% 2.0% 20.0% 20.0% 1.5% % Portfolio of Month Month U.S. LIBOR - 15.0% 1 10.0% 1.0% 5.5% 4.4% 5.0% 3.0% 0.5% 0.0% (1) 2015 2016 2017 2018 2019 2020 % of Floating Rate Loan Portfo
Slide 11: Second Quarter 2020 Earnings Summary
Second Quarter 2020 Earnings Summary SUMMARY INCOME STATEMENT GAAP NET LOSS TO CORE EARNINGS RECONCILIATION(1) ($ IN MILLIONS, EXCEPT PER SHARE DATA) ($ IN MILLIONS, EXCEPT PER SHARE DATA) Net Interest Income $34.4 GAAP Net Loss $(1.7) Realized (loss) on sale of loans held- $(6.9) Adjustments: for-s
Slide 12: Financing & Liquidity as of June 30, 2020
Financing & Liquidity as of June 30, 2020 SUMMARY BALANCE SHEET FINANCING SUMMARY ($ IN MILLIONS, EXCEPT PER SHARE DATA) ($ IN MILLIONS) Total Outstanding Wtd. Avg Cash $56.0 Capacity Balance Coupon(4) Repurchase Investment Portfolio, net $4,313.4 $2,411.8(2) $2,030.9 L+2.02% Agreements(1) Repurchas
Slide 13: Appendix
Appendix 7 HA He ee EI Eb 111
Slide 14: Summary of Investment Portfolio
Summary of Investment Portfolio Original Maximum Loan Principal Carrying Cash All-in Yield at Maturity Stabilized ($ in millions) Commitment Balance Value Coupon(1) Origination(2) (Years) Initial LTV(4) LTV(5) Senior Loans $5,041.7 $4,364.1 $4,264.9 L + 3.51% L + 4.19% 3.1 66.3% 63.8% Subordinated L
Slide 15: Investment Portfolio Detail
Investment Portfolio Detail Maximum All-in Original Origination Loan Principal Carrying Cash Yield at Maturity Property Stabilized ($ in millions) Type Date Commitment Balance Value Coupon(1) Origination(2) (Years) State Type Initial LTV(4) LTV(5) Asset 1 Senior 07/18 $126.9 $110.3 $107.7 L + 3.34%
Slide 16: Average Balances and Yields/Cost of Funds
Average Balances and Yields/Cost of Funds Quarter Ended June 30, 2020 ($ in thousands) Average Balance(1) Interest Income/Expense Net Yield/Cost of Funds Interest-earning assets Loans held-for-investment Senior loans $4,321,988 $59,764 5.5% Subordinated loans 27,377 656 9.6% Available-for-sale secur
Slide 17: Condensed Balance Sheets
Condensed Balance Sheets GRANITE POINT MORTGAGE TRUST INC. CONDENSED CONSOLIDATED BALANCE SHEETS June 30, December 31, (in thousands, except share data) 2020 2019 ASSETS (unaudited) Loans held-for-investment $ 4,366,757 $ 4,226,212 Allowance for credit losses (76,710) — Loans held-for-investment, ne
Slide 18: Condensed Statements of Comprehensive Income
Condensed Statements of Comprehensive Income Three Months Ended Six Months Ended GRANITE POINT MORTGAGE TRUST INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME June 30, June 30, (in thousands, except share data) 2020 2019 2020 2019 Interest income: (unaudited) (unaudited) Loans held-for
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