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Granite Point Mortgage Trust Inc. Reports Third Quarter 2019 Financial Results and Activity Post Quarter-End

November 5, 2019

NEW YORK--(BUSINESS WIRE)--Nov 5, 2019--

Granite Point Mortgage Trust Inc. (NYSE: GPMT) today announced its financial results for the quarter ended September 30, 2019 and provided an update on its activities subsequent to quarter-end. A presentation containing third quarter 2019 highlights and activity post quarter-end can be viewed at www.gpmtreit.com.

Third Quarter 2019 Summary

Activity Post Quarter-End

Conference Call
Granite Point Mortgage Trust Inc. will host a conference call on November 6, 2019 at 10:00 a.m. ET to discuss third quarter 2019 financial results and related information. To participate in the teleconference, approximately 10 minutes prior to the above start time please call toll-free (833) 255-2835, (or (412) 902-6769 for international callers), and ask to be joined into the Granite Point Mortgage Trust Inc. call. You may also listen to the teleconference live via the Internet at www.gpmtreit.com, in the Investor Relations section under the Events & Presentations link. For those unable to attend, a telephone playback will be available beginning November 6, 2019 at 12:00 p.m. ET through November 13, 2019 at 12:00 a.m. ET. The playback can be accessed by calling (877) 344-7529 (or (412) 317-0088 for international callers) and providing the Access Code 10135419. The call will also be archived on the company’s website in the Investor Relations section under the Events & Presentations link.

Granite Point Mortgage Trust
Granite Point Mortgage Trust Inc., a Maryland corporation, is a real estate investment trust that is focused on directly originating, investing in and managing senior floating rate commercial mortgage loans and other debt and debt-like commercial real estate investments. Granite Point is headquartered in New York, NY, and is externally managed by Pine River Capital Management L.P. Additional information is available at www.gpmtreit.com.

Forward-Looking Statements
This release 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, finances, and expectations and objectives of management constitute forward-looking statements. Forward-looking statements are not historical in nature and can be identified by words such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “estimates,” “anticipates,” “targets,” “goals,” “future,” “likely” and other expressions that are predictions of or indicate future events and trends and that do not relate to historical matters.

Although the forward-looking statements contained in this presentation are based upon information available at the time the statements are made and reflect the best judgment of our senior management, forward-looking statements inherently involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements to differ materially from anticipated future results. Important factors that could cause actual results to differ materially from expected results, including, among other things, those described in our filings with the Securities and Exchange Commission (“SEC”), including our annual report on Form 10-K for the year ended December 31, 2018, and any subsequent Quarterly Reports on Form 10-Q under the caption “Risk Factors.” Factors that could cause actual results to differ include, but are not limited to: the state of the U.S. economy generally or in specific geographic regions; the general political, economic and competitive conditions in the markets in which we invest; defaults by borrowers in paying debt service on outstanding indebtedness and borrowers’ abilities to manage and stabilize properties; our ability to obtain financing arrangements on terms favorable to us or at all; the level and volatility of prevailing interest rates and credit spreads; reductions in the yield on our investments and an increase in the cost of our financing; general volatility of the securities markets in which we participate; the return or impact of current or future investments; allocation of investment opportunities to us by our Manager; increased competition from entities investing in our target assets; effects of hedging instruments on our target investments; changes in governmental regulations, tax law and rates, and similar matters; our ability to maintain our qualification as a REIT for U.S. federal income tax purposes and our exclusion from registration under the Investment Company Act; availability of desirable investment opportunities; availability of qualified personnel and our relationship with our Manager; estimates relating to our ability to make distributions to our stockholders in the future; hurricanes, earthquakes and other natural disasters, acts of war and/or terrorism and other events that may cause unanticipated and uninsured performance declines and/or losses to us or the owners and operators of the real estate securing our investments; deterioration in the performance of the properties securing our investments that may cause deterioration in the performance of our investments and, potentially, principal losses to us; and difficulty or delays in redeploying the proceeds from repayments of our existing investments. These forward-looking statements apply only as of the date of this press release. We are under no duty to update any of these forward-looking statements after the date of this presentation to conform these statements to actual results or revised expectations. You should, therefore, not rely on these forward-looking statements as predictions of future events.

Non-GAAP Financial Measures
In addition to disclosing financial results calculated in accordance with United States generally accepted accounting principles (GAAP), this press release and the accompanying investor presentation present non-GAAP financial measures, such as Core Earnings and Core Earnings per basic common share, that exclude certain items. Granite Point management believes that these non-GAAP measures enable it to perform meaningful comparisons of past, present and future results of the company’s core business operations, and uses these measures to gain a comparative understanding of the company’s operating performance and business trends. The non-GAAP financial measures presented by the company represent supplemental information to assist investors in analyzing the results of its operations. However, because these measures are not calculated in accordance with GAAP, they should not be considered a substitute for, or superior to, the financial measures calculated in accordance with GAAP. The company’s GAAP financial results and the reconciliations from these results should be carefully evaluated. See the GAAP to non-GAAP reconciliation table on page 6 of this release.

Additional Information
Stockholders of Granite Point and other interested persons may find additional information regarding the company at the Securities and Exchange Commission’s Internet site at www.sec.gov or by directing requests to: Granite Point Mortgage Trust Inc., 3 Bryant Park, 24 th floor, New York, NY 10036, telephone (212) 364-3200.

GRANITE POINT MORTGAGE TRUST INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

 

 

 

September 30,
2019

 

December 31,
2018

ASSETS

 

(unaudited)

 

 

Loans held-for-investment

 

$

3,927,095

 

 

$

3,167,913

 

Available-for-sale securities, at fair value

 

12,830

 

 

12,606

 

Held-to-maturity securities

 

19,594

 

 

26,696

 

Cash and cash equivalents

 

137,355

 

 

91,700

 

Restricted cash

 

168,809

 

 

31,723

 

Accrued interest receivable

 

10,797

 

 

10,268

 

Deferred debt issuance costs

 

7,183

 

 

3,924

 

Prepaid expenses

 

1,313

 

 

1,055

 

Other assets

 

22,636

 

 

15,996

 

Total Assets (1)

 

$

4,307,612

 

 

$

3,361,881

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

Liabilities

 

 

 

 

Repurchase agreements

 

$

1,724,912

 

 

$

1,500,543

 

Securitized debt obligations

 

1,124,820

 

 

654,263

 

Asset-specific financings

 

114,080

 

 

 

Revolving credit facilities

 

 

 

75,000

 

Convertible senior notes

 

269,241

 

 

268,138

 

Accrued interest payable

 

11,253

 

 

6,394

 

Unearned interest income

 

215

 

 

510

 

Dividends payable

 

23,063

 

 

18,346

 

Other liabilities

 

15,788

 

 

10,156

 

Total Liabilities (1)

 

3,283,372

 

 

2,533,350

 

 

10% cumulative redeemable preferred stock, par value $0.01 per share; 50,000,000 shares authorized and 1,000 and 1,000 shares issued and outstanding, respectively

 

1,000

 

 

1,000

 

Stockholders’ Equity

 

 

 

 

Common stock, par value $0.01 per share; 450,000,000 shares authorized and 54,853,205 and 43,621,174 shares issued and outstanding, respectively

 

549

 

 

436

 

Additional paid-in capital

 

1,047,200

 

 

836,288

 

Accumulated other comprehensive income (loss)

 

32

 

 

(192

)

Cumulative earnings

 

144,400

 

 

91,875

 

Cumulative distributions to stockholders

 

(168,941

)

 

(100,876

)

Total Stockholders’ Equity

 

1,023,240

 

 

827,531

 

Total Liabilities and Stockholders’ Equity

 

$

4,307,612

 

 

$

3,361,881

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

GRANITE POINT MORTGAGE TRUST INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands, except share data)

  

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30,

 

September 30,

 

 

2019

 

2018

 

2019

 

2018

Interest income:

 

(unaudited)

 

(unaudited)

Loans held-for-investment

 

$

61,796

 

 

$

46,424

 

 

$

176,594

 

 

$

127,576

 

Available-for-sale securities

 

308

 

 

294

 

 

927

 

 

851

 

Held-to-maturity securities

 

530

 

 

757

 

 

1,804

 

 

2,478

 

Cash and cash equivalents

 

810

 

 

85

 

 

2,228

 

 

141

 

Total interest income

 

63,444

 

 

47,560

 

 

181,553

 

 

131,046

 

Interest expense:

 

 

 

 

 

 

 

 

Repurchase agreements

 

17,951

 

 

14,304

 

 

48,469

 

 

45,432

 

Securitized debt obligations

 

12,467

 

 

6,693

 

 

35,880

 

 

10,568

 

Convertible senior notes

 

4,503

 

 

2,216

 

 

13,459

 

 

6,601

 

Asset-specific financings

 

1,119

 

 

 

 

1,717

 

 

 

Revolving credit facilities

 

322

 

 

152

 

 

1,182

 

 

372

 

Total interest expense

 

36,362

 

 

23,365

 

 

100,707

 

 

62,973

 

Net interest income

 

27,082

 

 

24,195

 

 

80,846

 

 

68,073

 

Other income:

 

 

 

 

 

 

 

 

Fee income

 

 

 

 

 

1,115

 

 

1,446

 

Total other income

 

 

 

 

 

1,115

 

 

1,446

 

Expenses:

 

 

 

 

 

 

 

 

Management fees

 

3,801

 

 

3,111

 

 

11,013

 

 

9,434

 

Incentive fees

 

 

 

 

 

244

 

 

 

Servicing expenses

 

1,013

 

 

616

 

 

2,671

 

 

1,568

 

General and administrative expenses

 

4,877

 

 

3,904

 

 

15,499

 

 

12,141

 

Total expenses

 

9,691

 

 

7,631

 

 

29,427

 

 

23,143

 

Income before income taxes

 

17,391

 

 

16,564

 

 

52,534

 

 

46,376

 

Benefit from income taxes

 

(1

)

 

(1

)

 

(4

)

 

(2

)

Net income

 

17,392

 

 

16,565

 

 

52,538

 

 

46,378

 

Dividends on preferred stock

 

25

 

 

25

 

 

75

 

 

75

 

Net income attributable to common stockholders

 

$

17,367

 

 

$

16,540

 

 

$

52,463

 

 

$

46,303

 

Basic earnings per weighted average common share

 

$

0.32

 

 

$

0.38

 

 

$

1.00

 

 

$

1.07

 

Diluted earnings per weighted average common share

 

$

0.32

 

 

$

0.37

 

 

$

1.00

 

 

$

1.04

 

Dividends declared per common share

 

$

0.42

 

 

$

0.42

 

 

$

1.26

 

 

$

1.20

 

Weighted average number of shares of common stock outstanding:

 

 

 

 

 

 

 

 

Basic

 

54,853,205

 

 

43,456,234

 

 

52,492,324

 

 

43,426,109

 

Diluted

 

54,853,205

 

 

50,651,612

 

 

52,492,324

 

 

50,616,264

 

Comprehensive income:

 

 

 

 

 

 

 

 

Net income attributable to common stockholders

 

$

17,367

 

 

$

16,540

 

 

$

52,463

 

 

$

46,303

 

Other comprehensive income, net of tax:

 

 

 

 

 

 

 

 

Unrealized gain on available-for-sale securities

 

 

 

32

 

 

224

 

 

32

 

Other comprehensive income

 

 

 

32

 

 

224

 

 

32

 

Comprehensive income attributable to common stockholders

 

$

17,367

 

 

$

16,572

 

 

$

52,687

 

 

$

46,335

 

GRANITE POINT MORTGAGE TRUST INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION

(dollars in thousands, except share data)

 

 

 

Three Months Ended
September 30, 2019

 

 

(unaudited)

Reconciliation of GAAP net income to Core Earnings:

 

 

 

 

 

GAAP Net Income

 

$

17,367

 

Adjustments for non-core earnings:

 

 

Non-cash equity compensation

 

1,087

 

Core Earnings (1)

 

$

18,454

 

 

 

 

Core Earnings per basic common share

 

$

0.34

 

Basic weighted average shares outstanding

 

54,853,205

 

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20191105006102/en/

Investors: Marcin Urbaszek, Chief Financial Officer, Granite Point Mortgage Trust Inc., (212) 364-3200,investors@gpmortgagetrust.com 

KEYWORD: NEW YORK UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: CONSTRUCTION & PROPERTY PROFESSIONAL SERVICES REIT FINANCE

SOURCE: Granite Point Mortgage Trust Inc.

Copyright Business Wire 2019.

PUB: 11/05/2019 04:15 PM/DISC: 11/05/2019 04:15 PM

http://www.businesswire.com/news/home/20191105006102/en