Granite Point Mortgage Trust : Q1 2025 Earnings Supplemental
GPMT
Published on 05/07/2025 at 04:12
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Legal Disclosures
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 actual results may differ from our beliefs, expectations, estimates, projections and illustrations and, consequently, you should not rely on these forward-looking statements as predictions of future events. Forward-looking statements are not historical in nature and can be identified by words such as "anticipate," "estimate," "will," "should," "expect," "target," "believe," "outlook," "potential," "continue," "intend," "seek," "plan," "goals," "future," "likely," "may" and similar expressions or their negative forms, or by references to strategy, plans or intentions. The illustrative examples herein are forward-looking statements. By their nature, forward-looking statements speak only as of the date they are made, are not statements of historical facts or guarantees of future performance and are subject to risks, uncertainties, assumptions or changes in circumstances that are difficult to predict or quantify. Our expectations, beliefs and estimates are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that management's expectations, beliefs and estimates will prove to be correct or be achieved, and actual results may vary materially from what is expressed in or indicated by the forward-looking statements.
These forward-looking statements are subject to risks and uncertainties, including, among other things, those described in our Annual Report on Form 10-K for the year ended December 31, 2024, under the caption "Risk Factors," and any subsequent Form 10-Q or other filings made with the SEC. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.
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Financial data throughout this presentation is as of or for the quarter ended March 31, 2025, unless otherwise noted. Readers are advised that the financial information in this presentation is based on company data available at the time of this presentation and, in certain circumstances, may not have been audited by the company's independent auditors. Due to rounding, figures in this presentation may not result in the totals presented.
This presentation also includes non-GAAP financial measures, which should be considered only as supplemental to, and not as superior to, financial measures prepared in accordance with GAAP. Please refer to the Appendix of this presentation financial measures prepared ion accordance with GAAP to the most directly comparable non-GAAP financial measures.
Please refer to Other Definitions in the Appendix of this presentation for definitions of capitalized terms not otherwise defined in this presentation.
Company Overview
An internally-managed commercial real estate finance company operating as a REIT, focused on originating and investing in floating-rate, first mortgage loans secured by institutional-quality transitional properties. Conservatively managed balance sheet with a granular investment portfolio and a well-balanced funding profile
INVESTMENT PORTFOLIO
$2.0B(1)
Total Loan Portfolio Commitments Across 50 loan Investments
100% Loans
99% Senior Loans
98% Floating Rate
CAPITALIZATION
$2.1B
~62%
Total Financing
Non-Mark-to-
Capacity with
$1.4B
Market Borrowings
Outstanding
Q1'25 SUMMARY RESULTS
$(0.22)
GAAP Net (Loss)(2)per Share
$(0.57)
Distributable Earnings (Loss)(3)per Share
64.5%
Weighted Average Stabilized LTV at Origination
$38.9 million
Average Unpaid Principal Balance
2.2x
Total Leverage Ratio
$85.7 million
Unrestricted Cash Balance; Additional
$123.8 million in REO(5)
7.7%
Annualized Dividend Yield(4)
$0.05
Dividend per Share
$(0.06)
Distributable Earnings (Loss)(3)Before Realized Gains and Losses per Share
$180.2 million allowance for credit losses, or 8.8% of portfolio commitments, of which 75%, or $134.3 million, is allocated to specific CECL reserves
$2.1B financing capacity with $1.4B outstanding, including $0.6B across four facilities and $0.8B in non-recourse and non-mark-to-market borrowings from two CRE CLOs; no remaining corporate debt maturities
$8.24
Book Value per Common Share
Note: Per share metrics utilize basic common shares as the denominator 3
Q1 2025 Summary Results
FINANCIAL SUMMARY
GAAP Net (Loss) attributable to common stockholders of $(10.6) million, or $(0.22) per basic common
share
Distributable Earnings (Loss)(3)of $(27.7) million, or $(0.57) per basic common share
Distributable Earnings (Loss)(3)Before Realized Gains and Losses of $(3.0) million, or $(0.06) per basic
common share
PORTFOLIO ACTIVITY
Net loan portfolio activity of $(161.4) million in unpaid principal balance
Two full loan repayments and partial repayments of $(74.5) million
Two resolutions of $(97.4) million, inclusive of write-offs $(24.6) million
Fundings of $10.5 million
PORTFOLIO OVERVIEW
Loan portfolio of $2.0 billion(1)in total loan commitments across 50 loan investments
Total CECL reserve of $180.2 million, or 8.8% of total loan portfolio commitments
Weighted average loan portfolio risk rating of 3.0
Held three REO assets with an aggregate carrying value of $123.8 million(5)
CAPITALIZATION & LIQUIDITY
Q1 2025 common stock repurchases
Approximately 0.9 million shares at average price of $2.84 per share for total of $2.5 million
Book value accretion of $0.10 per share
Unrestricted cash of $85.7 million and Total Leverage Ratio of 2.2x, with no corporate debt maturities remaining
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Post-Q1 2025 Business Update
In April, extended the maturities of all repurchase facilities by approximately one year
Expect to close imminently the resolution of a loan secured by a hotel property located in Minneapolis, MN
As of March 31, 2025, the loan was on nonaccrual status with an unpaid principal balance of $52.2 million and risk rating of "5". The loan will be bifurcated into a senior and subordinate note structure, and the Company expects to realize a write-off of approximately $(15.4) million, which had been reserved for through a previously recorded allowance for credit losses
SUBSEQUENT EVENTS
In May, resolved a loan secured by a mixed-use office and retail property located in Baton Rouge, LA
As of March 31, 2025, the loan was on nonaccrual status with an unpaid principal balance of $79.9 million and risk rating of "5". As a result of the property sale, the Company expects to realize a write-off of approximately $(21.5) million, which had been reserved for through a previously recorded allowance for credit losses
So far in Q2'25, funded about $3.0 million on existing loan commitments and realized full repayments on two loans secured by office properties for a combined $32.1 million
As of May 5, 2025, carried approximately $86.3 million in unrestricted cash
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Disclaimer
Granite Point Mortgage Trust Inc. published this content on May 06, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2025 at 07:47 UTC.