NYSE$GPMT

Granite Point Mortgage Trust Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Announced financial results for the quarter ended June 30, 2022.

Granite Point Mortgage Trust Inc. reported a GAAP net loss of $(17.4) million, or $(0.32) per basic share, and Distributable Earnings of $11.7 million, or $0.22 per basic share for the second quarter of 2022. The company's portfolio totaled $4.2 billion in total commitments with over 99% in senior loans. They ended the quarter with over $150 million in cash on hand.

  • GAAP net loss of $(17.4) million, or $(0.32) per basic share, including a loss on early extinguishment of debt and a provision for credit losses.
  • Distributable Earnings of $11.7 million, or $0.22 per basic share.
  • Book value of $16.01 per common share, inclusive of $(0.96) per common share CECL reserve.
  • Portfolio of $4.2 billion in total commitments comprised of over 99% senior loans with a weighted average stabilized LTV of 63.1%.

Headline financials

Total Revenue

$21.9M

Previous: $22.8M-3.7%
EPS (adj)

$0.22

Previous: $0.29-24.1%
Portfolio Weighted Average Stabilized LTV at Origination

63.1%

Previous: 63.5%-0.6%
Free Cash Flow

-$13.7M

Previous: $14.3M-196.2%
Net Income

-$13.7M

Previous: $14.3M-196.2%
Operating Income

$8.11M

Previous: $10.2M-20.4%
Gross Profit

$21.6M

Previous: $21.9M-1.4%
Cash & Equivalents

$150M

Previous: $237M-36.6%
Total Assets

$4.1B

Previous: $3.85B+6.3%
Stock-Based Comp

$1.91M

Previous: $1.64M+16.3%

Revenue & EPS history

Granite Point · Revenue · Quarterly

$21.9M

Q2 2022-3.7%vs Q2 2021
Beat estimate in 11 of 14 quarters(79%)
ActualEstimate

Forward guidance

After growing our portfolio modestly in the second quarter, primarily in the multifamily sector, we are now reinforcing our balance sheet by increasing cash liquidity and being measured in adding new loans until there is more market stability.

Tailwinds

  • Floating rate mortgage loans are now 100% positively correlated to any additional increases in short term interest rates.
  • Broad based and resilient portfolio of senior mortgage loans secured by institutional quality real estate.
  • Delivered solid operating performance.
  • Increased cash liquidity.
  • Being measured in adding new loans until there is more market stability.

Headwinds

  • Macroeconomic uncertainty and capital markets volatility dramatically increased.
  • Driven largely by sharp increases in short term interest rates.
  • Challenging environment.
  • Loss on early extinguishment of debt.
  • Provision for credit losses.

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 Q2 2022

Historical avgQ2 2022

-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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