Granite Point Mortgage Trust Inc. · NYSE:GPMT
Granite Point Mortgage Trust — Q4 2020 Earnings Presentation
24 slides from Granite Point Mortgage Trust's earnings presentation, Mar 4, 2021
Slide 1: Fourth Quarter 2020 Earnings Presentation
March 5, 2021 Fourth Quarter 2020 Earnings 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
PORTFOLIO CREDIT QUALITY ▪ Defensively-positioned and broadly-diversified portfolio comprised of over 99% senior first mortgage loans with no exposure to securities; wtd. avg. initial LTV of 65.7%(2) means sponsors generally have significant equity in their properties. ▪ Strong collections of intere
Slide 4: Fourth Quarter and Full Year 2020 Highlights
Fourth Quarter and Full Year 2020 Highlights 4(1) Represents Net Income Attributable to Common Stockholders, see definition in the appendix. (2) Distributable Earnings is a non-GAAP measure. See definition in the appendix. (3) 1.516 million warrants are subject to vesting depending on future draws o
Slide 5: Key Drivers of Fourth Quarter 2020 Earnings and Book Value Per Share
$16.93 $16.92 $15.00 $15.50 $16.00 $16.50 $17.00 $17.50 9/30/2020 Prevision GAAP Earnings Provision for Credit Losses Dividend Declaration Other 12/31/2020 $(0.45)$0.26 Key Drivers of Fourth Quarter 2020 Earnings and Book Value Per Share • Q4 GAAP earnings benefited from an $8.5 million, or $0.16 pe
Slide 6: Financial Statements Impact of CECL Reserves
Financial Statements Impact of CECL Reserves 6 • Total allowance for credit losses of $72.2 million, of which $5.5 million is related to future funding obligations and recorded in other liabilities. • Loans reported on the balance sheet are net of the allowance for credit losses. ($ in thousands) At
Slide 7: Historical Portfolio Principal Balance
$4,288 $3,932 $- $1,000 $2,000 $3,000 $4,000 $5,000 12/31/2019 Portfolio 2020 Fundings 2020 Prepayments, Sales & Amortization 12/31/2020 $ I n M il li o n s Historical Portfolio Principal Balance 7 (1) Data based on principal balance of investments. (2) Includes fundings of prior loan commitments of
Slide 8: Investment Portfolio as of December 31, 2020
Investment Portfolio as of December 31, 2020 8 PROPERTY TYPE(2) GEOGRAPHY COUPON STRUCTURE INVESTMENT TYPE (1) See definition in the appendix. (2) Includes mixed-use properties. KEY PORTFOLIO STATISTICS Outstanding Principal Balance $3,932.4m Total Loan Commitments $4,436.2m Number of Investments 10
Slide 9: Q4 and Full Year 2020 Portfolio Developments
Q4 and Full Year 2020 Portfolio Developments 9 ASSET MANAGEMENT • We have been working closely with our borrowers to provide them with short-term relief to help manage through market dislocations and business interruptions at their properties. During the three months ended December 31, 2020, we modi
Slide 10: Diversified Capital Sources
2.2x 3.2x 1.0x 2.0x 3.0x 4.0x 12/31/2020 Recourse Leverage Total Leverage Diversified Capital Sources 10 REPURCHASE FACILITIES ▪ Borrowings of $1.7 billion with an advance rate of 68.0%.(1) CRE CLOs(2) ▪ $927.1 million of fully term-matched, non-recourse and non-mark-to-market financing. CONVERTIBLE
Slide 11: Investment Portfolio LIBOR Floors
5.2% 2.7% 17.9% 29.0% 41.7% 3.5% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 2015 2016 2017 2018 2019 2020 % o f P o rt fo li o 1 -M o n th U .S . L IB O R % of Floating Rate Loan Portfolio Wtd. Avg. LIBOR Floor by Loan Vintage Wtd. Avg. Portfolio LIBOR Fl
Slide 12: Fourth Quarter 2020 Earnings Summary
Fourth Quarter 2020 Earnings Summary 12 SUMMARY INCOME STATEMENT ($ IN MILLIONS, EXCEPT PER SHARE DATA) Net Interest Income $27.4 Provision for Credit Losses $8.5 Operating Expenses $(12.2) Provision for Income Taxes $(0.6) GAAP Net Income $23.1 Wtd. Avg. Basic Common Shares 55,205,082 Diluted Commo
Slide 13: Balance Sheet and Financing Summary as of December 31, 2020
Balance Sheet and Financing Summary as of December 31, 2020 13 (1) Net outstanding balance after deduction of transaction related expenses and warrants. (2) Does not include fees and other transaction related expenses. (3) Includes all loan repurchase agreements. (4) Includes option to be exercised
Slide 14: Appendix
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Slide 15: Summary of Investment Portfolio
Summary of Investment Portfolio 15 ($ in millions) Maximum Loan Commitment Principal Balance Carrying Value Cash Coupon(1) All-in Yield at Origination(1) Original Term (Years)(1) Initial LTV(1) Stabilized LTV(1) Senior Loans(1) $4,419.6 $3,915.8 $3,847.7 L + 3.52% L + 4.19% 3.1 65.8% 63.4% Subordina
Slide 16: Investment Portfolio Detail
Investment Portfolio Detail 16 ($ in millions) Type (1) Origination Date Maximum Loan Commitment Principal Balance Carrying Value Cash Coupon (1) All-in Yield at Origination (1) Original Term (Years) (1) State Property Type Initial LTV (1) Stabilized LTV (1) Asset 1 Senior 12/15 120.0 120.0 118.8 L
Slide 17: Average Balances and Yields/Cost of Funds
Average Balances and Yields/Cost of Funds 17 Quarter Ended December 31, 2020 ($ in thousands) Average Balance(2) Interest Income/Expense(3) Net Yield/Cost of Funds Interest-earning assets Loans held-for-investment Senior loans(1) $3,920,917 $53,996 5.5% Subordinated loans 25,589 617 9.6% Other - 135
Slide 18: Condensed Balance Sheets
Condensed Balance Sheets 18 GRANITE POINT MORTGAGE TRUST INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share data) December 31, 2020 December 31, 2019 ASSETS (unaudited) Loans held-for-investment $ 3,914,469 $ 4,226,212 Allowance for credit losses (66,666) — Loans held-for-investm
Slide 19: Condensed Statements of Comprehensive (Loss) Income
Condensed Statements of Comprehensive (Loss) Income 19 GRANITE POINT MORTGAGE TRUST INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in thousands, except share data) Three Months Ended December 31, Year Ended December 31, 2020 2019 2020 2019 Interest income: (unaudited) (unaudited) Lo
Slide 20: Distributable Earnings definition
▪ We have elected to present Distributable Earnings, a measure that is not prepared in accordance with GAAP, as a supplemental method of evaluating our operating performance. Distributable Earnings replaces our prior presentation of Core Earnings with no changes to the definition. In order to mainta
Slide 21: Distributable Earnings and credit loss provision
▪ 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 at the time a loan is repaid,
Slide 22: Other Definitions
Other Definitions 22 All-in Yield at Origination ▪ Provided for illustrative purposes only. Calculations of all-in yield at origination are based on a number of assumptions (some or all of which may not occur) and are expressed as monthly equivalent yields that include net origination fees and exit
Slide 23: Company Information
Company Information 23 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. Gran
Slide 24: Granite Point Mortgage Trust
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