Granite Point Mortgage Trust Inc. · NYSE:GPMT
Granite Point Mortgage Trust — Q3 2020 Earnings Presentation
19 slides from Granite Point Mortgage Trust's earnings presentation, Nov 9, 2020
Slide 1: Third Quarter 2020 Earnings Presentation
Third Quarter 2020 Earnings Presentation November 10, 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 the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve numerous risks and uncertainties. Our ac
Slide 3: Company Update
Company Update • On October 10, 2020, entered into an Internalization Agreement with our Manager pursuant to which we will internalize our management function effective as of December 31, 2020. • Defensively positioned, highly diversified portfolio consisting of 99% first mortgage loans with a weigh
Slide 4: Third Quarter 2020 Highlights
Third Quarter 2020 Highlights ▪ GAAP net loss of ($24.7) million, or ($0.45) per basic share, inclusive of ($43.7) million, or ($0.79) per basic share, of one-time restructuring charges related to the internalization process.(1) FINANCIAL ▪ Core Earnings(2) of $15.0 million, or $0.27 per basic share
Slide 5: Third Quarter 2020 Earnings and Book Value
Third Quarter 2020 Earnings and Book Value • GAAP earnings were affected by ($43.7) million, or ($0.79) per basic share, of restructuring charges related to the internalization process and ($10.0) million, or ($0.18) per basic share, of realized loss on loan sales, offset by a reversal of allowance
Slide 6: Financial Statements Impact at September 30, 2020
CONFIDENTIAL Financial Statements Impact at September 30 • Overall allowance for credit losses of $80.7 million, of which $7.4 million is related to future funding obligations and recorded in other liabilities, largely reflects an updated macroeconomic forecast that indicates continued impact of the
Slide 7: Historical Portfolio Principal Balance
Historical Portfolio Principal Balance 2020 YEAR TO DATE PORTFOLIO ACTIVITY(2) PORTFOLIO SINCE INCEPTION(3) $5,000 $4,288 $5,000 Total maximum $4,669 commitments $4,073 $4,000 $318 Future funding $(533) $596 commitments $4,288 $4,000 $3,233 $4,073 $3,000 $2,379 $3,000 $ In Millions $ In Millions $2,
Slide 8: Investment Portfolio as of September 30, 2020
Investment Portfolio as of September 30, 2020 • High quality, well-diversified portfolio comprised of 99% senior first mortgage loans with a weighted average stabilized LTV at origination of 63.6%.(3) KEY PORTFOLIO STATISTICS PROPERTY TYPE(1) GEOGRAPHY Industrial, Other, Outstanding 6.2% 1.0% $4,072
Slide 9: Diversified Capital Sources
Diversified Capital Sources WELL-DIVERSIFIED CAPITALIZATION PROFILE WITH MODERATE LEVERAGE ▪ Outstanding borrowings of $1.9 billion across LEVERAGE REPURCHASE 5 large institutional lenders. 4.0x FACILITIES ▪ Weighted average advance rate of 72.3%. 3.2x 3.0x ▪ $928.6 million of fully term-matched, no
Slide 10: Investment Portfolio LIBOR Floors
Investment Portfolio LIBOR Floors WEIGHTED AVERAGE LIBOR FLOOR BY LOAN VINTAGE 3.0% 45.0% 40.3% 40.0% 2.5% 35.0% 30.5% 30.0% 2.0% 25.0% 18.2% 20.0% 1.5% % Portfolio of Month Month U.S. LIBOR - 1 15.0% 10.0% 1.0% 5.1% 5.0% 2.6% 3.3% 0.5% 0.0% 2015 2016(1) 2017 2018 2019 2020 % of Floating Rate Loan P
Slide 11: Third Quarter 2020 Earnings Summary
Third Quarter 2020 Earnings Summary SUMMARY INCOME STATEMENT GAAP NET LOSS TO CORE EARNINGS RECONCILIATION(1) ($ IN MILLIONS, EXCEPT PER SHARE DATA) ($ IN MILLIONS, EXCEPT PER SHARE DATA) Net Interest Income $33.8 GAAP Net Loss $(24.7) Realized (loss) on sale of loans held- $(10.0) Adjustments: for-
Slide 12: Financing & Liquidity as of September 30, 2020
Financing & Liquidity as of September 30, 2020 SUMMARY BALANCE SHEET FINANCING SUMMARY ($ IN MILLIONS, EXCEPT PER SHARE DATA) ($ IN MILLIONS) Total Outstanding Wtd. Avg Cash $353.7 Capacity Balance Coupon(4) Repurchase Investment Portfolio, net $3,978.9 $2,354.1(2) $1,850.8 L+2.12% Agreements(1) Rep
Slide 13: Appendix
Appendix 7 HA He ee EI Eb 111
Slide 14: Summary of Investment Portfolio
Summary of Investment Portfolio Original Maximum Loan Principal Carrying Cash All-in Yield at Maturity Stabilized ($ in millions) Commitment Balance Value Coupon(1) Origination(2) (Years) Initial LTV(4) LTV(5) Senior Loans $4,642.3 $4,045.9 $3,953.7 L + 3.50% L + 4.16% 3.1 66.1% 63.7% Subordinated L
Slide 15: Investment Portfolio Detail
Investment Portfolio Detail Maximum All-in Original Origination Loan Principal Carrying Cash Yield at Maturity Property Stabilized ($ in millions) Type Date Commitment Balance Value Coupon(1) Origination(2) (Years) State Type Initial LTV(4) LTV(5) Asset 1 Senior 07/18 $127.4 $110.8 $108.1 L + 3.34%
Slide 16: Average Balances and Yields/Cost of Funds
Average Balances and Yields/Cost of Funds Quarter Ended September 30, 2020 ($ in thousands) Average Balance(1) Interest Income/Expense Net Yield/Cost of Funds Interest-earning assets Loans held-for-investment Senior loans $4,115,011 $56,903 5.5% Subordinated loans 27,025 654 9.7% Available-for-sale
Slide 17: Condensed Balance Sheets
Condensed Balance Sheets GRANITE POINT MORTGAGE TRUST INC. September 30, December 31, CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share data) 2020 2019 ASSETS (unaudited) Loans held-for-investment $ 4,052,201 $ 4,226,212 Allowance for credit losses (73,339) — Loans held-for-investmen
Slide 18: Condensed Statements of Comprehensive Income
Condensed Statements of Comprehensive Income GRANITE POINT MORTGAGE TRUST INC. Three Months Ended Nine Months Ended CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME September 30, September 30, (in thousands, except share data) 2020 2019 2020 2019 Interest income: (unaudited) (unaudited) Loa
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