NYSE$GPMT

Granite Point Mortgage Trust Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Announced first quarter 2021 financial results and provided a post quarter-end update.

Granite Point reported a strong start to 2021 with solid financial results, successful execution of liabilities management strategy, and restarting new loan originations. The company generated earnings well in excess of its dividend and drove growth in book value per share.

  • GAAP net income of $28.0 million, or $0.51 per basic share, inclusive of $0.17 per basic share release of prior CECL reserves.
  • Distributable Earnings of $20.7 million, or $0.38 per basic share.
  • Net interest income of $27.8 million.
  • Book value of $17.22 per common share, inclusive of $(1.14) per share of allowance for credit losses.

Headline financials

Total Revenue

$27.8M

Previous: $29.2M-4.8%
EPS (adj)

$0.38

Previous: $0.32+18.8%
Portfolio Weighted Average Stabilized LTV at Origination

63.3%

No prior period
Free Cash Flow

$28M

Previous: -$37.2M+175.3%
Net Income

$28M

Previous: -$37.2M+175.3%
Operating Income

$12.9M

Previous: -$41.6M+131.0%
Gross Profit

$22.7M

Previous: -$16.7M+235.8%
Cash & Equivalents

$255M

Previous: $99.3M+157.1%
Total Assets

$4.1B

Previous: $4.48B-8.4%
Stock-Based Comp

$1.89M

Previous: $1.36M+39.3%

Revenue & EPS history

Granite Point · Revenue · Quarterly

$27.8M

Q1 2021-4.8%vs Q1 2020
Beat estimate in 2 of 15 quarters(13%)
ActualEstimate

Forward guidance

Granite Point is well-positioned to continue positive momentum and take advantage of attractive investment opportunities in the market.

Tailwinds

  • Current forward pipeline of senior CRE loans with total commitments of over $145 million and initial fundings of over $105 million, which have either closed or are in the closing process, subject to fallout.
  • Current liquidity of approximately $228.9 million in cash on hand; option to borrow an additional $75 million in proceeds under the senior term loan facilities through September 2021.
  • Since quarter end, funded approximately $9.6 million of principal balance on existing loan commitments and realized approximately $120.7 million of loan repayments.
  • On May 5, 2021, priced GPMT 2021-FL3, a $824 million CRE CLO with an initial advance rate of 83.25% and a weighted average interest rate at issuance of LIBOR + 1.62%, before transaction costs.
  • Upon closing, GPMT expects its percentage of credit non-mark-to-market financing to increase to approximately 70% of aggregate loan-level borrowings.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-0.0%

Avg return

Earnings day

-0.9%

Avg return

5 days after

+0.3%

Avg return

30 days after

46%

16 / 35 earnings

Positive

+24.2%

Q3 2020

Best reaction

-15.1%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+4.3%-0.7%+6.3%
Q4 2025-11.5%-23.8%-30.8%
Q3 2025+4.6%+2.6%+3.8%
Q1 2025+15.3%+19.5%+37.4%
Q4 2024-9.1%-10.7%-11.3%
Q3 2024+2.3%+12.6%+9.6%
Q2 2024-8.5%-7.1%-6.4%
Q1 2024-13.0%-17.3%-29.1%
Q4 2023-4.3%-7.3%-5.7%
Q3 2023-1.1%-0.2%+18.9%
Q2 2023-1.1%-3.6%-5.3%
Q1 2023+3.2%+4.9%+27.3%
Q4 2022+0.0%-0.7%-18.6%
Q3 2022-15.1%-9.6%-9.7%
Q2 2022+1.1%-1.7%-13.9%
Q1 2022+1.7%+2.8%+11.0%
Q4 2021-1.2%-2.9%+0.6%
Q3 2021+0.4%-1.5%-10.5%
Q2 2021-8.2%-5.0%-4.0%
Q1 2021+1.7%-3.6%+14.3%
Q4 2020+0.5%+3.1%+6.4%
Q3 2020+24.2%+20.4%+44.6%
Q2 2020+5.2%+3.3%-13.2%
Q1 2020+10.4%+2.4%+66.9%
Q4 2019+3.4%-2.7%-78.1%
Q3 2019-1.7%-2.7%-1.9%
Q2 2019-1.4%-1.1%-3.0%
Q1 2019-1.0%-0.6%-2.3%
Q4 2018-0.4%-2.5%-2.4%
Q3 2018+1.7%+1.1%+0.7%
Q2 2018-0.9%-2.7%+1.0%
Q1 2018+2.0%+3.8%+8.9%
Q4 2017-3.2%-1.1%+2.2%
Q3 2017-1.5%-0.3%-1.1%
Q2 2017-0.7%-0.1%-0.6%
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q1 2016

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