Granite Point Mortgage Trust Inc. · NYSE:GPMT
Granite Point Mortgage Trust — Q3 2022 Earnings Presentation
27 slides from Granite Point Mortgage Trust's earnings presentation, Nov 9, 2022
Slide 1: Third Quarter 2022 Earnings Presentation
Third Quarter 2022 Earnings Presentation November 9, 2022
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: Third Quarter 2022 Highlights
Third Quarter 2022 Highlights ▪ GAAP net (loss)* of $(29.1) million, or $(0.56) per basic share, inclusive of a $(35.4) million, or $(0.68) per basic share, provision for credit losses. FINANCIAL ▪ Distributable Earnings** of $8.7 million, or $0.17 per basic share. SUMMARY ▪ Book value per common sh
Slide 4: Third Quarter 2022 Financial Summary
Third Quarter 2022 Financial Summary SUMMARY INCOME STATEMENT SUMMARY BALANCE SHEET ($ IN MILLIONS, EXCEPT PER SHARE DATA) ($ IN MILLIONS, EXCEPT PER SHARE DATA, REFLECTS CARRYING VALUES) Net Interest Income $18.3 Cash $168.4 (Provision) for Credit Losses $(35.4) Restricted Cash $45.2 Loans Held-for
Slide 5: Key Drivers of Third Quarter 2022 Earnings and Book Value Per Share
Key Drivers of Third Quarter 2022 Earnings and Book Value Per Share • GAAP Net (loss)* of $(29.1) million, or $(0.56) per basic share, inclusive of a $(35.4) million, or $(0.68) per basic share, provision for credit losses mainly driven by $(30.0) million increase in CECL reserve related to collater
Slide 6: Third Quarter 2022 Portfolio Activity
Third Quarter 2022 Portfolio Activity • Total funding activity of $72.4 million(1): PAYOFFS BY PROPERTY TYPE(2) – Closed one $45.0 million with total commitment and funded $43.4 million in UPB. • Stabilized LTV of 68.2%* and yield of SOFR + 4.25%** Multifamily, 28.1% Office, – Funded $28.4 million o
Slide 7: Portfolio Activity YTD Through Third Quarter 2022
Portfolio Activity YTD Through Third Quarter 2022 PORTFOLIO ACTIVITY(3) PAYOFFS BY PROPERTY TYPE(2) Industrial, 4.8% Mixed-Use, 0.3% $5,000 Hotel, 18.6% Total maximum Office, 42.1% $3,928 commitments $4,000 $457 $(639) $313 Future funding $3,797 commitments Multifamily, $3,615 34.2% $ In Millions $3
Slide 8: Investment Portfolio as of September 30, 2022
Investment Portfolio as of September 30, 2022 High-quality, well-diversified portfolio comprised of over 99% senior loans with a weighted average stabilized LTV at origination of 63.2%.* KEY PORTFOLIO STATISTICS PROPERTY TYPE(2) GEOGRAPHY Industrial, 5.2% Other, 2.5% Outstanding $3.6 billion Retail,
Slide 9: Sensitivity to Short-term Interest Rates
Sensitivity to Short-term Interest Rates • Portfolio is over 98% floating rate with a weighted average LIBOR/SOFR floor of 0.94%, meaningfully below current level of short- term benchmark interest rates. • All LIBOR/SOFR floors are currently below the level of market rates. • Well positioned for fur
Slide 10: Portfolio Developments and “Watch List” Loans
Portfolio Developments and “Watch List” Loans • In October 2022, successfully resolved a $114.1 million senior loan that was on non-accrual status. The resolution involved a coordinated sale of the collateral retail property and GPMT providing new ownership group with a new $77.3 million senior loan
Slide 11: Diversified Capital Sources
Diversified Capital Sources WELL-DIVERSIFIED CAPITALIZATION PROFILE WITH MODERATE LEVERAGE FINANCING SUMMARY AS OF SEPTEMBER 30, 2022 LEVERAGE* Total Outstanding Wtd. Avg Advance Non- 4.0x ($ IN MILLIONS) Capacity Balance(12) Coupon* Rate MTM* 3.0x 2.6x Repurchase Facilities(13) $1,898 $1,160 L/S +
Slide 12: Endnotes
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Slide 13: Endnotes
Endnotes 1) Includes fundings of prior loan commitments of $28.4 million and capitalized deferred interest of $0.6million. 2) Mixed-use properties represented based on allocated loan amounts. 3) Data based on principal balance of investments. Due to rounding, individual figures may not add up to the
Slide 14: Appendix
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Slide 15: Summary of Investment Portfolio
Summary of Investment Portfolio Maximum Original Loan Principal Carrying Cash All-in Yield at Term Stabilized ($ IN MILLIONS) Commitment Balance Value Coupon* Origination* (Years)* Initial LTV* LTV* Senior Loans* $3,914.0 $3,601.3 $3,507.3 L/S + 3.54% L/S+ 4.07% 3.1 66.4% 63.3% Subordinated Loans $1
Slide 16: Investment Portfolio Detail
Investment Portfolio Detail All-in Origination Maximum Loan Principal Carrying Cash Yield at Original Term Property ($ IN MILLIONS) Type* Date Commitment Balance Value Coupon* Origination* (Years)* State Type Initial LTV* Stabilized LTV* Asset 1 Senior 12/15 $120.0 $120.0 $119.9 L + 4.15% L + 4.43%
Slide 17: Average Balances and Yields/Cost of Funds
Average Balances and Yields/Cost of Funds Quarter Ended September 30, 2022 ($ IN THOUSANDS) Average Balance** Interest Income/Expense† Net Yield/Cost of Funds Interest-earning assets Loans held-for-investment Senior loans* $3,709,486 $51,785 5.6% Subordinated loans 14,006 336 9.6% Other — 714 —% Tot
Slide 18: Condensed Balance Sheets
Condensed Balance Sheets GRANITE POINT MORTGAGE TRUST INC. September 30, December 31, CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT SHARE DATA) 2022 2021 ASSETS (unaudited) Loans held-for-investment $ 3,603,016 $ 3,782,205 Allowance for credit losses (82,611) (40,897) Loans held-for-in
Slide 19: Condensed Statements of Comprehensive Income (Loss)
Condensed Statements of Comprehensive Income (Loss) GRANITE POINT MORTGAGE TRUST INC. Three Months Ended Nine Months Ended CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME September 30, September 30, (in thousands, except share data) 2022 2021 2022 2021 Interest income: (unaudited) (
Slide 20: Reconciliation of GAAP Net (Loss) Income to Distributable Earnings
Reconciliation of GAAP Net (Loss) Income to Distributable Earnings * ($ IN MILLIONS, EXCEPT PER SHARE DATA) (UNAUDITED) Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 GAAP Net (loss) Income* $18.6 $6.7 $1.0 $(17.4) $(29.1) Adjustments: Provision (Benefit from) for Credit Losses $(5.8) $(5.0) $3.7 $13.6 $35
Slide 21: Financial Statements Impact of CECL Reserves
Financial Statements Impact of CECL Reserves • Total allowance for credit losses of $85.6 million, of which $2.9 million is related to future funding obligations and recorded in other liabilities. • Loans reported on the balance sheet are net of the allowance for credit losses. ($ in thousands) Q3 2
Slide 22: Distributable Earnings
Distributable Earnings ▪ Beginning with our Annual Report on Form 10-K for the year ended December 31, 2021, and for all subsequent reporting periods ending on or after December 31, 2021, we have elected to present Distributable Earnings, a measure that is not prepared in accordance with GAAP, as a
Slide 23: Distributable Earnings (cont’d)
Distributable Earnings (cont’d) ▪ 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
Slide 24: Other Definitions
Other Definitions ▪ Provided for illustrative purposes only. Calculations of all-in yield at origination are based on a number of assumptions (some or all of All-in Yield at which may not occur) and are expressed as monthly equivalent yields that include net origination fees and exit fees and exclud
Slide 25: Other Definitions (cont’d)
Other Definitions (cont’d) ▪ The fully funded loan amount (plus any financing that is pari passu with or senior to such loan), including all contractually provided for future fundings, divided by the as stabilized value (as determined in conformance with USPAP) set forth in the original appraisal. A
Slide 26: 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
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