Granite Point Mortgage Trust Inc. · NYSE:GPMT

Granite Point Mortgage Trust — Q1 2018 Earnings Presentation

18 slides from Granite Point Mortgage Trust's earnings presentation, May 10, 2018

  1. Slide 1: First Quarter 2018 Earnings Presentation

    First Quarter 2018 May 10, 2018 Earnings Presentation

  2. Slide 2: Safe Harbor Statement

    Safe Harbor Statement This presentation contains, in addition to historical information, certain forward-looking statements that are based on our current assumptions, expectations and projections about future performance and events. In particular, statements regarding future economic performance, fi

  3. Slide 3: Company Overview

    Company Overview (1) LEADING COMMERCIAL REAL ESTATE FINANCE COMPANY FOCUSED ON DIRECTLY ORIGINATING AND MANAGING SENIOR FLOATING RATE COMMERCIAL MORTGAGE LOANS E X P E R I E N C E D A N D C YC L E -T E S T E D AT T R A C T I V E A N D S U S TA I N A B L E SENIOR CRE TEAM MARKET OPPORTUNIT Y • Over 2

  4. Slide 4: First Quarter 2018 Business Highlights

    First Quarter 2018 Business Highlights  GAAP net income of $14.6 million or $0.34 per basic share; Core Earnings(1) of $15.2 million or $0.35 FINANCIAL per basic share (including $0.9 million or $0.02 per basic share of prepayment fee income) SUMMARY  Taxable income of $19.6 million or $0.45 per b

  5. Slide 5: First Quarter 2018 Portfolio Activity

    First Quarter 2018 Portfolio Activity • Total funding activity of $156.2 million: PROPERTY ORIGINATIONS TYPE TYPE BY PROPERTY – Closed 5 newly originated loans with total Retail, commitments of $113.4 million and initial fundings 2.8% of $104.6 million • Weighted average stabilized LTV of 62% • Weig

  6. Slide 6: Investment Portfolio as of March 31, 2018

    Investment Portfolio as of March 31, 2018 KEY PORTFOLIO STATISTICS PROPERTY TYPE GEOGRAPHY Industrial, Midwest, 8.4% 3.5% Outstanding $2.4b Retail(2), Southeast, Principal Balance 10.7% 15.1% Hotel Southeast 9.6% 16.0% Northeast Northeast, Total Loan Office 42.6% $2.7b Hotel,(2) Retail Office, 39.1%

  7. Slide 7: Net Interest Income Per Share / Interest Rate Sensitivity

    Interest Rate Sensitivity • A 100 basis point increase in U.S. LIBOR would increase our annual net interest income per share by approximately $0.19 NET INTEREST INCOME PER SHARE SENSIVITY TO PORTFOLIO FLOATING VS FIXED CHANGES IN US LIBOR(1) $0.20 $0.18 Net Interest Income Per Share $0.16 $0.14 Floa

  8. Slide 8: Case Studies

    Case Studies • A $23 million senior floating rate loan refinancing of a well • A $50 million senior floating rate loan refinancing a newly located Class A office building in the South Beach sub- built Class A student housing property well located near market of Miami, Florida Texas A&M University, s

  9. Slide 9: First Quarter 2018 Earnings Summary

    First Quarter 2018 Earnings Summary SUMMARY INCOME STATEMENT GAAP NET INCOME TO CORE EARNINGS ($ IN MILLIONS, EXCEPT PER SHARE DATA) RECONCILIATION(1) ($ IN MILLIONS, EXCEPT PER SHARE DATA) Net Interest Income $21.6 GAAP Net Income $14.6 Other Income $0.9 Operating Expenses ($7.9) Adjustments: GAAP

  10. Slide 10: Financing and Liquidity as of March 31, 2018

    Financing and Liquidity as of March 31, 2018 SUMMARY BALANCE SHEET FINANCING SUMMARY ($ IN MILLIONS, EXCEPT PER SHARE DATA) ($ IN MILLIONS) Cash $72.1 Total Outstanding Wtd. Avg Capacity Balance Coupon Investment Portfolio $2,414.8 Repurchase Agreements $2,323.8 $1,524.5 L+2.28%(1) Repurchase Agreem

  11. Slide 11: GPMT 2018-FL1 CRE CLO Overview

    GPMT 2018 – FL1 CRE CLO Overview (1) $826 MILLION CLO FINANCING 25 EXISTING INVESTMENTS AT INITIAL ADVANCE RATE OF APPROXIMATELY 80% AND WEIGHTED AVERAGE COST OF FUNDS AT ISSUANCE OF LIBOR + 1.27%(2) T RANSACTION H IGHLIGHT S • $826 million total collateral across 25 investments • $660 million inves

  12. Slide 12: Appendix

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  13. Slide 13: Summary of Investment Portfolio

    Summary of Investment Portfolio (1) Maximum Loan Principal Carrying Cash Original Terms ($ in millions) Commitment Balance Value Coupon(2) Yield(3) (Years) Initial LTV(4) Stabilized LTV First Mortgages $2,640.0 $2,326.3 $2,306.9 L + 4.41% L + 4.97% 3.4 69.1% 64.0% Subordinated Loans $59.1 $57.6 $57.

  14. Slide 14: Investment Portfolio Detail

    Investment Portfolio Detail (1) Maximum Origination Loan Principal Carrying Cash Original Term Property ($ in millions) Type Date Commitment Balance Value Coupon(2) Yield(3) (Years) State Type Initial LTV Stabilized LTV Asset 1 Senior 09/17 125.0 107.5 106.1 L + 4.45% L + 5.03% 3.0 CT Office 62.9% 5

  15. Slide 15: Average Balances and Yields/Cost of Funds

    Average Balances and Yields/Cost of Funds Quarter Ended March 31, 2018 ($ in thousands) Average Balance(1) Interest Income/Expense Net Yield/Cost of Funds Interest-earning assets Loans held-for-investment First mortgages $2,268,381 $36,717 6.5% Subordinated loans 80,743 2,076 10.3% CMBS 52,845 1,157

  16. Slide 16: Consolidated Balance Sheets

    Consolidated Balance Sheets GRANITE POINT MORTGAGE TRUST INC. CONDENSED CONSOLIDATED BALANCE SHEETS March 31, December 31, (in thousands, except share data) 2018 2017 ASSETS (unaudited) Loans held-for-investment $ 2,364,647 $ 2,304,266 Available-for-sale securities, at fair value 12,814 12,798 Held-

  17. Slide 17: Consolidated Statements of Comprehensive Income

    Consolidated Statements of Comprehensive Income GRANITE POINT MORTGAGE TRUST INC. Three Months Ended CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME March 31, (in thousands, except share data) 2018 2017 Interest income: (unaudited) Loans held-for-investment $ 38,793 $ 22,638 Available-for-

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