Granite Point Mortgage Trust Inc. (NYSE:GPMT) Q3 2021 Earnings Conference Call November 9, 2021 10:00 AM ET Company Participants Chris Petta – Investor Relations Jack Taylor – President and Chief Executive Officer Steve Alpart – Chief Investment Officer and Co-Head of Originations Marcin Urbaszek – Chief Financial Officer Conference Call Participants Josh Bolton – Credit Suisse Chris Muller – JMP Securities Operator Good morning. My name is Grant, and I will be your conference facilitator. At this time, I w ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38124 GRANITE POINT MORTGAGE TRUST INC. (Exact name of registrant as specified in its charter) Maryland 61-1843143 (State or other jur ...

G R A N I T E P O I N T MORTGAGE TRUST Second Quarter 2021 Earnings Presentation August 10, 2021 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 actual results may differ from our beliefs, expectations, estimates and projections and, consequently, you should not ...

Financial Data and Key Metrics Changes - The company reported second quarter distributable earnings of $0.29 per share, which comfortably covered the common stock dividend of $0.25 per share [8] - GAAP net income for Q2 was $14.2 million or $0.26 per basic share, down from $28 million or $0.51 per basic share in Q1 [21] - Total operating expenses in Q2 were just under $9 million, largely in line with the first quarter [23] - Book value increased to $17.27 per share from $17.22 per share in Q1, partially due to share repurchases [23] Business Line Data and Key Metrics Changes - The company closed seven new loans totaling over $200 million in commitments during Q2, with an additional $280 million of loans expected to close soon [9] - The portfolio outstanding principal balance at the end of Q2 was approximately $3.6 billion across 99 loans, with a weighted average unlevered yield of about 5.3% [17] - The company experienced elevated loan repayments of about $423 million in Q2, which contributed to a net decline in the portfolio [22] Market Data and Key Metrics Changes - The market for lending on transitional commercial real estate assets remains very active, supported by robust levels of available liquidity and well-functioning capital markets [10] - Loan repayments accelerated during Q2, resulting in over $420 million in total volume, including $134 million of hotel loan payoffs [10] Company Strategy and Development Direction - The company aims to grow its portfolio and improve earnings and dividends over time by actively sourcing new investment opportunities [9] - The company intends to maintain a well-diversified term match funding profile, emphasizing non mark-to-market and nonrecourse financing sources [11] - Refinancing existing term loans remains a strategic priority, with plans to take advantage of improving market fundamentals [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the portfolio's credit quality and the overall positive outlook for real estate fundamentals [17] - The company is well-positioned to take advantage of investment opportunities due to a healthy level of liquidity and a strong origination platform [12] - Management anticipates that the elevated level of loan repayments will moderate for the rest of the year [10] Other Important Information - The company closed its third commercial real estate CLO, an $824 million transaction, which improved its funding profile [11] - The total debt-to-equity ratio at June 30 was 2.8 times, down from 3 times in the prior quarter [25] Q&A Session Summary Question: Details on the three loans that went on nonaccrual status - Management is comfortable with the reserves for these loans and believes the credit profile of the portfolio remains stable [28] Question: Reason for interest reversal this quarter - The interest reversal was primarily due to the status of specific loans that were moved to nonaccrual status [31] Question: Deployment of liquidity versus repaying term loans - The company plans to deploy liquidity while also considering the refinancing of the term loan, depending on market conditions [32][33] Question: Impact of repayments on earnings - Elevated repayments, particularly from hotel loans, contributed significantly to the decline in net interest income [35] Question: Clarification on CECL reserve - The CECL reserve was largely unchanged at approximately $63 million, with specific reserves on 5-rated loans accounting for a significant portion [42][44] Question: Options for increasing operating leverage - The company is focused on generating the best risk-adjusted returns and intends to grow its equity base to realize economies of scale [50][51] Question: Outlook for levered returns - The company anticipates achieving high single-digit net ROEs as it deploys liquidity and rationalizes its liability structure [53]

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed consolidated financial statements and management's discussion and analysis for Granite Point Mortgage Trust Inc [Item 1. Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) The unaudited financial statements for Q2 2021 show a decrease in total assets, a return to net income, and a slight increase in total equity [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheets reflect changes in assets, liabilities, and equity, notably a reduction in loans and a shift in financing | | June 30, 2021 (in millions) | December 31, 2020 (in millions) | | :--- | :--- | :--- | | **Total Assets** | **$3,854.5** | **$4,219.6** | | Loans held-for-investment, net | $3,577.6 | $3,847.8 | | Cash and cash equivalents | $237.0 | $261.4 | | **Total Liabilities** | **$2,907.2** | **$3,284.8** | | Repurchase facilities | $717.2 | $1,708.9 | | Securitized debt obligations | $1,446.6 | $927.1 | | **Total Equity** | **$946.3** | **$933.8** | - Total assets decreased primarily due to a reduction in the net loan portfolio. On the liability side, borrowings under repurchase facilities were significantly reduced from **$1.71 billion** to **$717.2 million**, while securitized debt obligations increased from **$927.1 million** to **$1.45 billion**, reflecting a shift in financing strategy[11](index=11&type=chunk) [Condensed Consolidated Statements of Comprehensive Income (loss)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(loss)) The statements show a return to profitability in Q2 2021, driven by a benefit from credit losses and reduced expenses | (in millions) | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | | :--- | :--- | :--- | | Net interest income | $22.8 | $34.4 | | Benefit from (provision for) credit losses | $0.2 | $(14.2) | | Total expenses | $8.7 | $15.0 | | **Net income (loss)** | **$14.3** | **$(1.7)** | | **Net income (loss) attributable to common stockholders** | **$14.2** | **$(1.8)** | | **Basic earnings (loss) per share** | **$0.26** | **$(0.03)** | | **Diluted earnings (loss) per share** | **$0.24** | **$(0.03)** | - The company returned to profitability in Q2 2021 compared to a loss in Q2 2020, primarily driven by a **$14.4 million** positive swing in the provision for credit losses and a **$6.3 million** reduction in total expenses, which more than offset an **$11.6 million** decrease in net interest income[13](index=13&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity increased due to net income, partially offset by dividends and share repurchases - For the six months ended June 30, 2021, total stockholders' equity increased by **$12.4 million**, with key changes including net income of **$42.3 million**, offset by common dividends declared of **$27.9 million** and common stock repurchases of **$4.3 million**[16](index=16&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash flows reflect significant loan repayments, new originations, and a shift in financing activities | (in millions) | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $30.7 | $32.3 | | Net cash provided by (used in) investing activities | $295.8 | $(131.8) | | Net cash used in financing activities | $(416.7) | $(0.8) | | **Net decrease in cash, cash equivalents and restricted cash** | **$(90.2)** | **$(100.3)** | - For the first six months of 2021, significant cash inflows from loan repayments (**$524.6 million**) were offset by loan originations (**$228.8 million**)[19](index=19&type=chunk) - Major financing activities included net repayments on repurchase facilities of nearly **$1 billion**, proceeds from new securitized debt of **$685.8 million**, and proceeds from a new term financing facility of **$349.3 million**[19](index=19&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) The notes provide critical context on the company's operations as a REIT and significant accounting estimates - The company is an internally managed real estate finance company operating as a REIT, having transitioned from being externally managed on December 31, 2020[22](index=22&type=chunk)[24](index=24&type=chunk) - The financial statements are prepared under GAAP and include significant estimates, particularly for the allowance for credit losses, with uncertainty heightened by the COVID-19 pandemic[28](index=28&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2021 financial performance, portfolio changes, financing strategy shifts, and credit quality trends [Second Quarter 2021 Activity](index=31&type=section&id=Second%20Quarter%202021%20Activity) This section highlights key operational and financial achievements and transactions during Q2 2021 - Key operational and financial activities for Q2 2021 included: - GAAP net income of **$13.7 million**, or **$0.25** per basic share[146](index=146&type=chunk) - Distributable Earnings of **$15.7 million**, or **$0.29** per basic share[148](index=148&type=chunk) - Originated seven new loans with total commitments of **$203.8 million**[148](index=148&type=chunk) - Received **$423.0 million** in loan repayments and principal amortization[148](index=148&type=chunk) - Issued a new **$824 million** CRE CLO (GPMT 2021-FL3)[148](index=148&type=chunk) - Extended maturities on two repurchase financing facilities[148](index=148&type=chunk) - Repurchased **300,891** shares of common stock for **$4.3 million**[148](index=148&type=chunk) [Key Financial Measures and Indicators](index=33&type=section&id=Key%20Financial%20Measures%20and%20Indicators) This section presents core financial metrics including GAAP net income, Distributable Earnings, and book value per share | (in millions) | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | | GAAP net income attributable to common stockholders | $14.2 | $42.2 | | (Benefit from) provision for credit losses | $(0.2) | $(9.3) | | Non-cash equity compensation | $1.6 | $3.5 | | **Distributable Earnings** | **$15.7** | **$36.4** | | **Distributable Earnings per basic share** | **$0.29** | **$0.66** | - Book value per common share increased to **$17.27** as of June 30, 2021, from **$16.92** at December 31, 2020[157](index=157&type=chunk) - This book value includes an estimated allowance for credit losses of **$62.9 million**, or **$1.15** per common share[157](index=157&type=chunk) [Portfolio Overview and Credit Quality](index=36&type=section&id=Portfolio%20Overview%20and%20Credit%20Quality) This section details the loan portfolio composition, risk ratings, and specific credit quality concerns | Portfolio Summary | As of June 30, 2021 | | :--- | :--- | | Number of loans | 99 | | Total loan commitments | $4.1 billion | | Unpaid principal balance | $3.6 billion | | Weighted-average all-in yield | L+4.13% | | Stabilized LTV at origination | 63.5% | - The weighted average risk rating of the loan portfolio was **2.8**, an increase from **2.7** at March 31, 2021[160](index=160&type=chunk) - Three loans with a total unpaid principal balance of **$237.1 million** were downgraded to a risk rating of "**5**" (Loss Likely)[179](index=179&type=chunk) - Three loans were placed on nonaccrual status during the quarter: a hospitality asset in Minneapolis, a retail asset in Pasadena, and an office property in Washington D.C[181](index=181&type=chunk)[182](index=182&type=chunk) - The company recorded specific allowances for credit loss on these collateral-dependent loans totaling **$32.1 million**[184](index=184&type=chunk) [Portfolio and Corporate Financing](index=44&type=section&id=Portfolio%20and%20Corporate%20Financing) This section outlines the company's financing structure, including a shift towards non-mark-to-market sources - Approximately **70%** of the company's portfolio loan-level financing was from non-mark-to-market sources as of June 30, 2021, including CRE CLOs, a term financing facility, and an asset-specific financing facility[185](index=185&type=chunk) | Financing Type | June 30, 2021 (in millions) | December 31, 2020 (in millions) | | :--- | :--- | :--- | | CRE CLOs | $1,446.6 | $927.1 | | Term financing facility | $142.4 | $— | | Asset-specific financing facility | $82.8 | $123.1 | | Secured repurchase agreements | $717.2 | $1,708.9 | | **Total portfolio financing** | **$2,389.0** | **$2,759.1** | - The company was in compliance with all financial covenants as of June 30, 2021, including minimum unrestricted cash, tangible net worth, leverage ratios, and interest coverage[208](index=208&type=chunk) [Results of Operations](index=55&type=section&id=Results%20of%20Operations) This section analyzes the drivers of net interest income, expenses, and the provision for credit losses - Net interest income decreased to **$22.8 million** in Q2 2021 from **$34.4 million** in Q2 2020, primarily due to a smaller average loan portfolio and a significant decline in short-term interest rates[225](index=225&type=chunk)[218](index=218&type=chunk) - Total expenses decreased to **$8.7 million** in Q2 2021 from **$15.0 million** in Q2 2020, driven by the elimination of the **$4.0 million** external base management fee following the company's internalization, and lower advisory and legal fees[231](index=231&type=chunk)[235](index=235&type=chunk) - The company recorded a benefit from provision for credit losses of **$0.2 million** in Q2 2021, compared to a provision of **$14.2 million** in Q2 2020, reflecting moderately improved macroeconomic expectations and portfolio changes, offset by an increased allowance on certain collateral-dependent loans[236](index=236&type=chunk) [Liquidity and Capital Resources](index=57&type=section&id=Liquidity%20and%20Capital%20Resources) This section details the company's available liquidity, capital structure, and primary cash needs | Source of Liquidity | Amount (in millions) | | :--- | :--- | | Cash and cash equivalents | $237.0 | | Delayed draw on senior secured term loan facilities | $75.0 | | **Total** | **$312.0** | - The total debt-to-equity ratio (net of cash) decreased to **2.8:1.0** at June 30, 2021, from **3.0:1.0** at March 31, 2021[243](index=243&type=chunk) - Primary liquidity needs include interest and principal payments on **$2.9 billion** of borrowings, **$441.0 million** of unfunded loan commitments, and dividend distributions[254](index=254&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=63&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company discusses its exposure to credit, interest rate, and liquidity risks, including the impact of COVID-19 and LIBOR transition - The company faces significant credit risk from the COVID-19 pandemic's impact on property operations, particularly for its hotel and retail collateral, leading to an increase in loan modification requests and non-performing loans[275](index=275&type=chunk)[277](index=277&type=chunk) | Change in Interest Rates | Change in Annualized Net Interest Income (in millions) | | :--- | :--- | | +100 bps | $(20.1) | | +50 bps | $(10.6) | | -50 bps | $2.1 | | -100 bps | $2.1 | - The company is preparing for the discontinuation of LIBOR, with approximately **98.1%** of its loans and **100%** of its asset-level borrowings indexed to LIBOR as of June 30, 2021[286](index=286&type=chunk)[287](index=287&type=chunk) - The company is working with lenders and borrowers to amend agreements to include robust fallback language[287](index=287&type=chunk) [Controls and Procedures](index=69&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - Management concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[296](index=296&type=chunk) - There were no changes in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal controls[297](index=297&type=chunk) [PART II - OTHER INFORMATION](index=70&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) This section provides additional information on legal proceedings, risk factors, equity sales, and exhibits [Legal Proceedings](index=70&type=section&id=Item%201.%20Legal%20Proceedings) The company reports that it is not currently a party to any litigation or legal proceedings that would be expected to have a material adverse effect on its financial condition or results of operations - As of the filing date, the company is not party to any material litigation or legal proceedings[300](index=300&type=chunk) [Risk Factors](index=70&type=section&id=Item%201A.%20Risk%20Factors) There are no new risk factors presented in this report. The company refers to the risk factors previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2020 - The report refers to the risk factors discussed in the company's Annual Report on Form 10-K for the year ended December 31, 2020, for information on factors that could affect its financial results[301](index=301&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=70&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 318,159 common shares at an average price of $14.20 during Q2 2021, with shares remaining for future repurchase | Period | Total Shares Purchased | Average Price Paid | Shares Purchased Under Program | | :--- | :--- | :--- | :--- | | April 2021 | — | — | — | | May 2021 | — | — | — | | June 2021 | 318,159 | $14.20 | 300,891 | | **Total Q2 2021** | **318,159** | **$14.20** | **300,891** | - As of June 30, 2021, **1,699,109** shares remained available for repurchase under the company's authorized plan[301](index=301&type=chunk) [Defaults Upon Senior Securities](index=70&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon its senior securities during the period - None[302](index=302&type=chunk) [Exhibits](index=70&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate governance documents, indentures related to debt offerings, amendments to financing agreements, and officer certifications - Key exhibits filed include amendments to master repurchase agreements with Morgan Stanley Bank and Wells Fargo Bank, and various agreements related to the GPMT 2021-FL3 CRE CLO transaction[307](index=307&type=chunk)

G R A N I T E P O I N T MORTGAGE TRUST First Quarter 2021 Earnings Presentation May 7, 2021 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 actual results may differ from our beliefs, expectations, estimates and projections and, consequently, you should not rely ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 For the quarterly period ended March 31, 2021 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38124 GRANITE POINT MORTGAGE TRUST INC. FORM 10-Q (Exact name of registrant as specified in its charter) Maryland 61-1843143 3 Bryant Park, Suite 24 ...

Financial Data and Key Metrics Changes - The company reported a fourth quarter GAAP net income of $23.1 million or $0.42 per basic share, which included a decrease in CECL reserve of $8.5 million or $0.16 per share and additional restructuring charges of $2.6 million or $0.05 per share related to internalization [49][50] - For the full year 2020, the company reported a GAAP loss of $40.5 million or $0.73 per basic share, primarily due to internalization charges of $46.3 million or $0.84 per share and provision for credit losses of $53.7 million or $0.97 per share [51] - Distributable earnings for the fourth quarter were $18.4 million or $0.33 per share, excluding non-cash provisions for credit loss and restructuring charges [52] - The company's book value at year-end was $16.92 per common share, largely unchanged from the prior quarter [52] Business Line Data and Key Metrics Changes - The portfolio ended the year with an outstanding principal balance of $3.9 billion across 103 loans, with about $500 million in future funding obligations, accounting for only about 11% of total commitments [32] - The company funded $51 million of loan balances in the fourth quarter, bringing total fundings for the year to $239 million [34] - The volume of loan repayments increased in the second half of the year, with about $195 million of payoffs in the fourth quarter alone, totaling approximately $517 million for the year [36] Market Data and Key Metrics Changes - The company noted an uptick in real estate transaction and lending activity, particularly in select property types, as market sentiment stabilized [35] - The company has seen strong interest collections, running at about 99% of contractual payments through February [31] Company Strategy and Development Direction - The company aims to redeploy excess liquidity into attractive investments to support earnings and dividends, diversify funding sources, and increase the proportion of credit non-mark-to-market financing [19] - The company completed its transition to an internally managed commercial mortgage REIT, which is expected to lower expenses and improve transparency [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future of the economy and commercial real estate, citing recent developments around COVID-19 vaccines and ongoing monetary and fiscal support [28] - The company is closely monitoring loans with an aggregate principal balance of about $240 million that have been particularly affected by the pandemic [42] Other Important Information - The company reinstated its quarterly dividend in the second half of 2020 and declared a special cash dividend of $0.25 per common share in December [17] - The company ended the year with about $260 million in cash on hand and had approximately $235 million in cash as of March 3rd [58] Q&A Session Summary Question: Expectations for loan origination and capital deployment - Management indicated that they will be replacing runoff and looking for portfolio growth later in the year, estimating origination volumes between $500 million to $1 billion [66] Question: Financing through CLO issuance - Management stated that CLO issuance would primarily replace warehouse lines and could also refinance existing CLO debt, with a strong demand in the market [68] Question: Cash flow statement concerns - Management confirmed that a payable to the external manager of $44.5 million contributed to negative cash flow in the fourth quarter, but cash flow from operations is expected to be positive going forward [74][75] Question: Interest rate impact on commercial real estate - Management noted that while rising interest rates could pressure refinancing, the overall support from monetary and fiscal actions is positive for commercial real estate [130] Question: Loan modifications and collections - Management reported that about 3.5% of total collections were deferred due to forbearance agreements, with most being short-term deferrals [95]

Fourth Quarter 2020 Earnings Presentation March 5, 2021 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 actual results may differ from our beliefs, expectations, estimates and projections and, consequently, you should not rely on these forward-looking statements ...

Granite Point Mortgage Trust Inc. (NYSE:GPMT) Q3 2020 Earnings Conference Call November 10, 2020 10:00 AM ET Company Participants Chris Petta - Investor Relations Officer John Taylor - President and Chief Executive Officer Stephen Alpart - Vice President, Chief Information Officer and Co-Head of Originations Marcin Urbaszek - Vice President, Chief Financial Officer and Head of Investor Relations Steven Plust - Vice President and Chief Operating Officer Conference Call Participants Douglas Harter - Credit Su ...