Two Harbors Investment Corp · NYSE:TWO
Two Harbors Investment — Merger or Acquisition (May 2017)
7 slides from Two Harbors Investment's merger presentation, May 24, 2017
Slide 1: Two Harbors Investment Corp. Investor Call May 24, 2017
Two Harbors Investment Corp. Investor Call May 24, 2017
Slide 2: Safe Harbor Statement
Safe Harbor Statement F O R W A R D - L O O K I N G S T A T E M EN T S This presentation includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Actual results may differ from expectations, estimate
Slide 3: Transaction Summary
Transaction Summary OVERVIEW OF TRANSACTION • Announced formation of Granite Point Mortgage Trust Inc. (“Granite Point”) and intent to contribute Two Harbors’ commercial real estate (“CRE”) assets in order to continue and expand the CRE lending business established by Two Harbors over the last two y
Slide 4: Rationale: Maximize Stockholder Value
Rationale: Maximize Stockholder Value 4 • Unlocks value potential of Two Harbors’ CRE business ― Allows opportunity for residential and commercial businesses to be valued independently with appropriate cost of capital ― Potential for greater investor appreciation for growing CRE business as a stand-
Slide 5: Two Harbors: Leading Residential Hybrid Mortgage REIT
• Continue to execute on residential mortgage finance oriented business strategy ― Simpler and efficient business model with potential for greater returns ― Target assets: Agency MBS, MSR, Non-Agency MBS and other mortgage credit assets • Emphasis on growing MSR portfolio ― MSR paired with Agency RM
Slide 6: Two Harbors' Projected Capital Allocation
Two Harbors’ Projected Capital Allocation 6 Targeted ROEs Capital Allocation 12/31/14 Capital Allocation 12/31/16 Long-term Trend Key Objectives Market Dynamics and Potential Opportunities Rates(1) 10-15% 56% 58% • Continue to focus on new issue MSR to pair with Agency RMBS • Agency RMBS highly liqu
Slide 7: Footnotes
(1) Data as of June 30, 2016, except where noted.
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