Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 04, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-38124 | |
Entity Registrant Name | GRANITE POINT MORTGAGE TRUST INC. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 61-1843143 | |
Entity Address, Address Line One | 3 Bryant Park, Suite 2400A | |
Entity Address, City or Town | New York, | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10036 | |
City Area Code | 212 | |
Local Phone Number | 364-5500 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | GPMT | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 53,789,465 | |
Entity Central Index Key | 0001703644 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | |
ASSETS | |||
Loans held-for-investment | $ 3,659,691 | $ 3,914,469 | |
Allowance for credit losses | (45,480) | (66,666) | |
Loans held-for-investment, net | 3,614,211 | 3,847,803 | |
Cash and cash equivalents | 154,916 | 261,419 | |
Restricted cash | 20,602 | 67,774 | |
Accrued interest receivable | 9,898 | 12,388 | |
Other assets | 99,563 | 30,264 | |
Total Assets | [1] | 3,899,190 | 4,219,648 |
Liabilities | |||
Repurchase facilities | 916,758 | 1,708,875 | |
Securitized debt obligations | 1,356,429 | 927,128 | |
Asset-specific financings | 44,752 | 123,091 | |
Term financing facility | 127,867 | 0 | |
Convertible senior notes | 272,512 | 271,250 | |
Senior secured term loan facilities | 208,785 | 206,448 | |
Dividends payable | 13,713 | 25,049 | |
Other liabilities | 25,140 | 22,961 | |
Total Liabilities | [1] | 2,965,956 | 3,284,802 |
Commitments and Contingencies | |||
10% cumulative redeemable preferred stock, par value $0.01 per share; 50,000,000 shares authorized and 1,000 shares issued and outstanding ($1,000,000 liquidation preference) | 1,000 | 1,000 | |
Stockholders’ Equity | |||
Common stock, par value $0.01 per share; 450,000,000 shares authorized and 53,789,465 and 55,205,082 shares issued and outstanding, respectively | 538 | 552 | |
Additional paid-in capital | 1,037,395 | 1,058,298 | |
Cumulative earnings | 164,055 | 103,165 | |
Cumulative distributions to stockholders | (269,879) | (228,169) | |
Total Granite Point Mortgage Trust, Inc. Stockholders’ Equity | 932,109 | 933,846 | |
Non-controlling interests | 125 | 0 | |
Total Equity | 932,234 | 933,846 | |
Total Liabilities and Stockholders’ Equity | $ 3,899,190 | $ 4,219,648 | |
[1] | The condensed consolidated balance sheets include assets of consolidated variable interest entities, or VIEs, that can only be used to settle obligations of these VIEs, and liabilities of the consolidated VIEs for which creditors do not have recourse to Granite Point Mortgage Trust Inc. At September 30, 2021 and December 31, 2020, assets of the VIEs totaled $1,824,173 and $1,255,932, respectively, and liabilities of the VIEs totaled $1,357,675 and $928,220, respectively. See Note 4 - Variable Interest Entities and Securitized Debt Obligations for additional information. |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | |
Variable Interest Entity [Line Items] | |||
10% cumulative redeemable preferred stock par value per share (in usd per share) | $ 0.01 | $ 0.01 | |
10% cumulative redeemable preferred shares authorized (in shares) | 50,000,000 | 50,000,000 | |
10% cumulative redeemable preferred shares issued (in shares) | 1,000 | 1,000 | |
10% cumulative redeemable preferred shares outstanding (in shares) | 1,000 | 1,000 | |
10% cumulative redeemable preferred shares liquidation preference value (in shares) | $ 1,000 | $ 1,000 | |
Common stock par value per share (in usd per share) | $ 0.01 | $ 0.01 | |
Common shares authorized (in shares) | 450,000,000 | 450,000,000 | |
Common shares issued (in shares) | 53,789,465 | 55,205,082 | |
Common shares outstanding (in shares) | 53,789,465 | 55,205,082 | |
Assets of consolidated variable interest entities | [1] | $ 3,899,190 | $ 4,219,648 |
Liabilities of consolidated variable interest entities | [1] | 2,965,956 | 3,284,802 |
Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Assets of consolidated variable interest entities | 1,824,173 | 1,255,932 | |
Liabilities of consolidated variable interest entities | 1,357,675 | 928,220 | |
Variable Interest Entity, Primary Beneficiary | Total Assets | |||
Variable Interest Entity [Line Items] | |||
Assets of consolidated variable interest entities | 1,824,173 | 1,255,932 | |
Variable Interest Entity, Primary Beneficiary | Total Liabilities | |||
Variable Interest Entity [Line Items] | |||
Liabilities of consolidated variable interest entities | $ 1,357,675 | $ 928,220 | |
[1] | The condensed consolidated balance sheets include assets of consolidated variable interest entities, or VIEs, that can only be used to settle obligations of these VIEs, and liabilities of the consolidated VIEs for which creditors do not have recourse to Granite Point Mortgage Trust Inc. At September 30, 2021 and December 31, 2020, assets of the VIEs totaled $1,824,173 and $1,255,932, respectively, and liabilities of the VIEs totaled $1,357,675 and $928,220, respectively. See Note 4 - Variable Interest Entities and Securitized Debt Obligations for additional information. |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Interest income: | ||||
Loans held-for-investment | $ 48,312 | $ 56,783 | $ 151,701 | $ 180,341 |
Loans held-for-sale | 0 | 774 | 0 | 895 |
Available-for-sale securities | 0 | 119 | 0 | 646 |
Held-to-maturity securities | 0 | 113 | 0 | 659 |
Cash and cash equivalents | 95 | 57 | 298 | 424 |
Total interest income | 48,407 | 57,846 | 151,999 | 182,965 |
Interest expense: | ||||
Repurchase facilities | 5,451 | 12,791 | 20,449 | 46,742 |
Securitized debt obligations | 8,777 | 5,431 | 20,523 | 21,367 |
Convertible senior notes | 4,556 | 4,529 | 13,618 | 13,570 |
Term financing facility | 1,453 | 0 | 6,208 | 0 |
Asset-specific financings | 414 | 901 | 1,959 | 2,962 |
Revolving credit facilities | 0 | 217 | 0 | 779 |
Senior secured term loan facilities | 5,654 | 145 | 16,587 | 145 |
Total interest expense | 26,305 | 24,014 | 79,344 | 85,565 |
Net interest income | 22,102 | 33,832 | 72,655 | 97,400 |
Other income (loss): | ||||
Benefit from (provision for) credit losses | 5,760 | 5,300 | 15,072 | (62,241) |
Realized losses on sales of loans held-for-sale | 0 | (10,019) | 0 | (16,913) |
Fee income | 0 | 595 | 0 | 1,117 |
Total other income (loss) | 5,760 | (4,124) | 15,072 | (78,037) |
Expenses: | ||||
Base management fees | 0 | 3,974 | 0 | 11,840 |
Compensation and benefits | 5,634 | 0 | 16,111 | 0 |
Servicing expenses | 1,323 | 914 | 3,763 | 3,025 |
Other operating expenses | 2,276 | 5,808 | 6,967 | 24,421 |
Restructuring charges | 0 | 43,682 | 0 | 43,682 |
Total expenses | 9,233 | 54,378 | 26,841 | 82,968 |
Income (loss) before income taxes | 18,629 | (24,670) | 60,886 | (63,605) |
Benefit from income taxes | (1) | (4) | (4) | (15) |
Net income (loss) | 18,630 | (24,666) | 60,890 | (63,590) |
Dividends on preferred stock | 25 | 25 | 75 | 75 |
Net income (loss) attributable to common stockholders - basic | $ 18,605 | $ (24,691) | $ 60,815 | $ (63,665) |
Basic earnings (loss) per weighted average common share (in usd per share) | $ 0.34 | $ (0.45) | $ 1.11 | $ (1.15) |
Diluted earnings (loss) per weighted average common share (in usd per share) | 0.33 | (0.45) | 1.05 | (1.15) |
Dividends declared per common share (in usd per share) | $ 0.25 | $ 0.20 | $ 0.75 | $ 0.20 |
Weighted average number of shares of common stock outstanding: | ||||
Basic (in shares) | 54,453,546 | 55,205,082 | 54,864,456 | 55,140,163 |
Diluted (in shares) | 56,735,278 | 55,205,082 | 70,902,745 | 55,140,163 |
Comprehensive income (loss): | ||||
Net income (loss) attributable to common stockholders - basic | $ 18,605 | $ (24,691) | $ 60,815 | $ (63,665) |
Other comprehensive income (loss), net of tax: | ||||
Comprehensive income (loss) | $ 18,605 | $ (24,691) | $ 60,815 | $ (63,665) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Cumulative effect of adoption of new accounting principle | Stockholders' equity, adjusted balance | Total Stockholders’ Equity | Total Stockholders’ EquityCumulative effect of adoption of new accounting principle | Total Stockholders’ EquityStockholders' equity, adjusted balance | Common Stock | Common StockStockholders' equity, adjusted balance | Additional Paid-in Capital | Additional Paid-in CapitalStockholders' equity, adjusted balance | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)Stockholders' equity, adjusted balance | Cumulative Earnings | Cumulative EarningsCumulative effect of adoption of new accounting principle | Cumulative EarningsStockholders' equity, adjusted balance | Cumulative Distributions to Stockholders | Cumulative Distributions to StockholdersStockholders' equity, adjusted balance | Noncontrolling Interest |
Common shares outstanding at beginning of period at Dec. 31, 2019 | 54,853,205 | 54,853,205 | ||||||||||||||||
Stockholders’ equity at beginning of period at Dec. 31, 2019 | $ 1,019,136 | $ (18,472) | $ 1,000,664 | $ 1,019,136 | $ (18,472) | $ 1,000,664 | $ 549 | $ 549 | $ 1,048,484 | $ 1,048,484 | $ 32 | $ 32 | $ 162,076 | $ (18,472) | $ 143,604 | $ (192,005) | $ (192,005) | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Net (loss) income | (37,191) | (37,191) | (37,191) | |||||||||||||||
Other comprehensive loss before reclassifications | (4,511) | (4,511) | (4,511) | |||||||||||||||
Amounts reclassified from accumulated other comprehensive income | 767 | 767 | 767 | |||||||||||||||
Net other comprehensive income (loss) | (3,744) | (3,744) | (3,744) | |||||||||||||||
Preferred dividends declared | (25) | (25) | (25) | |||||||||||||||
Non-cash equity award compensation (in shares) | 283,680 | |||||||||||||||||
Non-cash equity award compensation | 1,355 | 1,355 | $ 3 | 1,352 | ||||||||||||||
Common shares outstanding at end of period at Mar. 31, 2020 | 55,136,885 | |||||||||||||||||
Stockholders’ equity at end of period at Mar. 31, 2020 | 961,059 | 961,059 | $ 552 | 1,049,836 | (3,712) | 106,413 | (192,030) | 0 | ||||||||||
Common shares outstanding at beginning of period at Dec. 31, 2019 | 54,853,205 | 54,853,205 | ||||||||||||||||
Stockholders’ equity at beginning of period at Dec. 31, 2019 | 1,019,136 | $ (18,472) | $ 1,000,664 | 1,019,136 | $ (18,472) | $ 1,000,664 | $ 549 | $ 549 | 1,048,484 | $ 1,048,484 | 32 | $ 32 | 162,076 | $ (18,472) | $ 143,604 | (192,005) | $ (192,005) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Net (loss) income | (63,590) | |||||||||||||||||
Common shares outstanding at end of period at Sep. 30, 2020 | 55,205,082 | |||||||||||||||||
Stockholders’ equity at end of period at Sep. 30, 2020 | 934,462 | 934,462 | $ 552 | 1,057,016 | 0 | 80,014 | (203,120) | 0 | ||||||||||
Common shares outstanding at beginning of period at Mar. 31, 2020 | 55,136,885 | |||||||||||||||||
Stockholders’ equity at beginning of period at Mar. 31, 2020 | 961,059 | 961,059 | $ 552 | 1,049,836 | (3,712) | 106,413 | (192,030) | 0 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Net (loss) income | (1,733) | (1,733) | (1,733) | |||||||||||||||
Other comprehensive loss before reclassifications | 4,223 | 4,223 | 4,223 | |||||||||||||||
Amounts reclassified from accumulated other comprehensive income | (511) | (511) | (511) | |||||||||||||||
Net other comprehensive income (loss) | 3,712 | 3,712 | 3,712 | |||||||||||||||
Preferred dividends declared | (25) | (25) | (25) | |||||||||||||||
Non-cash equity award compensation (in shares) | 68,197 | |||||||||||||||||
Non-cash equity award compensation | 1,323 | 1,323 | 1,323 | |||||||||||||||
Common shares outstanding at end of period at Jun. 30, 2020 | 55,205,082 | |||||||||||||||||
Stockholders’ equity at end of period at Jun. 30, 2020 | 964,336 | 964,336 | $ 552 | 1,051,159 | 0 | 104,680 | (192,055) | 0 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Net (loss) income | (24,666) | (24,666) | (24,666) | |||||||||||||||
Issuance of warrants to purchase common stock | 4,541 | 4,541 | 4,541 | |||||||||||||||
Common dividends declared | (11,040) | (11,040) | (11,040) | |||||||||||||||
Preferred dividends declared | (25) | (25) | (25) | |||||||||||||||
Non-cash equity award compensation | 1,316 | 1,316 | 1,316 | |||||||||||||||
Common shares outstanding at end of period at Sep. 30, 2020 | 55,205,082 | |||||||||||||||||
Stockholders’ equity at end of period at Sep. 30, 2020 | $ 934,462 | 934,462 | $ 552 | 1,057,016 | 0 | 80,014 | (203,120) | 0 | ||||||||||
Common shares outstanding at beginning of period at Dec. 31, 2020 | 55,205,082 | 55,205,082 | ||||||||||||||||
Stockholders’ equity at beginning of period at Dec. 31, 2020 | $ 933,846 | 933,846 | $ 552 | 1,058,298 | 0 | 103,165 | (228,169) | 0 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Net (loss) income | 27,991 | 27,991 | ||||||||||||||||
Restricted stock forfeiture (in shares) | (97,425) | |||||||||||||||||
Restricted stock forfeiture | (919) | (919) | $ (1) | (918) | ||||||||||||||
Common dividends declared | (14,008) | (14,008) | (14,008) | |||||||||||||||
Preferred dividends declared | (25) | (25) | (25) | |||||||||||||||
Non-cash equity award compensation | 1,887 | 1,887 | 1,887 | |||||||||||||||
Contributions from non-controlling interests | 125 | 125 | ||||||||||||||||
Common shares outstanding at end of period at Mar. 31, 2021 | 55,107,657 | |||||||||||||||||
Stockholders’ equity at end of period at Mar. 31, 2021 | $ 948,897 | 948,772 | $ 551 | 1,059,267 | 0 | 131,156 | (242,202) | 125 | ||||||||||
Common shares outstanding at beginning of period at Dec. 31, 2020 | 55,205,082 | 55,205,082 | ||||||||||||||||
Stockholders’ equity at beginning of period at Dec. 31, 2020 | $ 933,846 | 933,846 | $ 552 | 1,058,298 | 0 | 103,165 | (228,169) | 0 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Net (loss) income | $ 60,890 | |||||||||||||||||
Common shares outstanding at end of period at Sep. 30, 2021 | 53,789,465 | 53,789,465 | ||||||||||||||||
Stockholders’ equity at end of period at Sep. 30, 2021 | $ 932,234 | 932,109 | $ 538 | 1,037,395 | 0 | 164,055 | (269,879) | 125 | ||||||||||
Common shares outstanding at beginning of period at Mar. 31, 2021 | 55,107,657 | |||||||||||||||||
Stockholders’ equity at beginning of period at Mar. 31, 2021 | 948,897 | 948,772 | $ 551 | 1,059,267 | 0 | 131,156 | (242,202) | 125 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Net (loss) income | 14,269 | 14,269 | 14,269 | |||||||||||||||
Restricted stock forfeiture (in shares) | (17,628) | |||||||||||||||||
Restricted stock forfeiture | (275) | (275) | (275) | |||||||||||||||
Repurchase of common stock (in shares) | (300,891) | |||||||||||||||||
Repurchase of common stock | (4,270) | (4,270) | $ (3) | (4,267) | ||||||||||||||
Common dividends declared | (13,939) | (13,939) | (13,939) | |||||||||||||||
Preferred dividends declared | (25) | (25) | (25) | |||||||||||||||
Non-cash equity award compensation (in shares) | 1,048 | |||||||||||||||||
Non-cash equity award compensation | 1,639 | 1,639 | $ 0 | 1,639 | ||||||||||||||
Common shares outstanding at end of period at Jun. 30, 2021 | 54,790,186 | |||||||||||||||||
Stockholders’ equity at end of period at Jun. 30, 2021 | 946,296 | 946,171 | $ 548 | 1,056,364 | 0 | 145,425 | (256,166) | 125 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Net (loss) income | 18,630 | 18,630 | 18,630 | |||||||||||||||
Settlement of warrants to purchase common stock | (7,478) | (7,478) | (7,478) | |||||||||||||||
Repurchase of common stock (in shares) | (1,000,721) | |||||||||||||||||
Repurchase of common stock | (13,533) | (13,533) | $ (10) | (13,523) | ||||||||||||||
Common dividends declared | (13,688) | (13,688) | (13,688) | |||||||||||||||
Preferred dividends declared | (25) | (25) | (25) | |||||||||||||||
Non-cash equity award compensation | $ 2,032 | 2,032 | 2,032 | |||||||||||||||
Common shares outstanding at end of period at Sep. 30, 2021 | 53,789,465 | 53,789,465 | ||||||||||||||||
Stockholders’ equity at end of period at Sep. 30, 2021 | $ 932,234 | $ 932,109 | $ 538 | $ 1,037,395 | $ 0 | $ 164,055 | $ (269,879) | $ 125 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - (Parenthetical) - $ / shares | 3 Months Ended | |||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Preferred dividends declared per share (in usd per share) | $ 25 | $ 25 | $ 25 | $ 25 | $ 25 | $ 25 |
Common dividends declared per share (in usd per share) | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.20 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash Flows From Operating Activities: | ||
Net income (loss) | $ 60,890 | $ (63,590) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Accretion of discounts and net deferred fees on loans held-for-investment and deferred interest capitalized to loans held-for-investment | (20,310) | (12,557) |
Amortization of deferred debt issuance costs on repurchase facilities, asset-specific financings, convertible senior notes, securitized debt obligations, senior secured term loan facilities and term financing facilities | 9,692 | 4,646 |
(Benefit from) provision for credit losses | (15,072) | 62,241 |
Realized losses on sales of loans held-for-sale | 0 | 16,913 |
Amortization of equity-based compensation | 5,558 | 3,994 |
Depreciation of fixed assets | 0 | 0 |
Net change in assets and liabilities: | ||
Decrease (increase) in accrued interest receivable | 2,490 | (610) |
Increase in other assets | (4,069) | (19,899) |
Increase in other liabilities | 5,846 | 44,911 |
Net cash provided by operating activities | 45,025 | 36,049 |
Cash Flows From Investing Activities: | ||
Originations, acquisitions and additional fundings of loans held-for-investment, net of deferred fees | (549,705) | (314,722) |
Proceeds from repayment of loans held-for-investment | 815,054 | 290,838 |
Increase in other assets, due from servicer/trustee on repayments of loans held-for-investment | (66,944) | 0 |
Principal payments on available-for-sale securities | 0 | 12,798 |
Principal payments on held-to-maturity securities | 0 | 18,076 |
Proceeds from sales of loans held-for-sale | 0 | 193,538 |
Net cash provided by investing activities | 198,405 | 200,528 |
Cash Flows From Financing Activities: | ||
Proceeds from repurchase facilities | 347,261 | 397,004 |
Principal payments on repurchase facilities | (1,139,378) | (470,180) |
Proceeds from issuance of securitized debt obligations | 685,766 | 0 |
Principal payments on securitized debt obligations | (254,647) | (115,853) |
Proceeds from senior secured term loan facilities | 0 | 205,647 |
Proceeds from asset-specific financings | 2,785 | 6,626 |
Repayment of asset-specific financings | (81,123) | 0 |
Proceeds from revolving credit facilities | 0 | 38,361 |
Repayment of revolving credit facilities | 0 | (80,369) |
Proceeds from term financing facility | 349,291 | 0 |
Repayment of term financing facility | (219,311) | 0 |
Payment of debt issuance costs | (8,353) | 0 |
Proceeds from issuance of warrants to purchase common stock | 0 | 4,541 |
Settlement of warrants to purchase common stock | (7,478) | |
Contributions from non-controlling interests | 125 | 0 |
Tax withholding on restricted stock | (1,194) | 0 |
Repurchase of common stock | (17,804) | 0 |
Dividends paid on preferred stock | (75) | (75) |
Dividends paid on common stock | (52,970) | (23,038) |
Net cash used in financing activities | (397,105) | (37,336) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (153,675) | 199,241 |
Cash, cash equivalents and restricted cash at beginning of period | 329,193 | 159,764 |
Cash, cash equivalents and restricted cash at end of period | 175,518 | 359,005 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash paid for interest | 75,818 | 83,366 |
Cash paid for taxes | 607 | 0 |
Noncash Activities: | ||
Transfers of loans held-for-investment to loans held-for-sale | 0 | 210,452 |
Dividends declared but not paid at end of period | $ 13,713 | $ 11,065 |
Organization and Operations
Organization and Operations | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Operations | Organization and Operations Granite Point Mortgage Trust Inc. is an internally managed real estate finance company that focuses primarily on directly originating, investing in and managing senior floating-rate commercial mortgage loans and other debt and debt-like commercial real estate investments. These investments are capitalized by accessing a variety of funding options, including borrowing under our bank credit facilities or other asset-specific financings, issuing commercial real estate collateralized loan obligations, or CRE CLOs, entering into term financing agreements, and issuing other forms of secured and unsecured debt and equity securities, depending on market conditions and our view of the most appropriate funding option available for our investments. Our investment objective is to preserve our stockholders’ capital while generating attractive risk-adjusted returns over the long term, primarily through dividends derived from current income produced by our investment portfolio. Our common stock is listed on the New York Stock Exchange, or NYSE, under the symbol “GPMT”. The Company operates its business in a manner that is intended to permit it to maintain its exclusion from registration under the Investment Company Act of 1940, as amended, or the Investment Company Act. The Company operates its business as one segment. The Company was incorporated in Maryland on April 7, 2017 and commenced operations as a publicly traded company on June 28, 2017. The Company has elected to be treated as a real estate investment trust, or REIT, as defined under the Internal Revenue Code of 1986, as amended, or the Code, for U.S. federal income tax purposes. As long as the Company continues to comply with a number of requirements under federal tax law and maintains its qualification as a REIT, the Company generally will not be subject to U.S. federal income taxes to the extent that the Company distributes its taxable income to its stockholders on an annual basis and does not engage in prohibited transactions. However, certain activities that the Company may perform may cause it to earn income which will not be qualifying income for REIT purposes. The Company has designated one of its subsidiaries as a taxable REIT subsidiary, or TRS, as defined in the Code, to engage in such activities. The Company was externally managed by Pine River Capital Management L.P., or the Former Manager, through December 31, 2020, at which time the Company internalized its management function, or the Internalization. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Consolidation and Basis of Presentation The interim unaudited condensed consolidated financial statements of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission, or the SEC. Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles, or GAAP, have been condensed or omitted according to such SEC rules and regulations. However, management believes that the disclosures included in these interim condensed consolidated financial statements are adequate to make the information presented not misleading. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. In the opinion of management, all normal and recurring adjustments necessary to present fairly the financial condition of the Company at September 30, 2021 and results of operations for all periods presented have been made. The results of operations for the three and nine months ended September 30, 2021 should not be construed as indicative of the results to be expected for future periods or the full year. The unaudited condensed consolidated financial statements of the Company include the accounts of all subsidiaries; inter-company accounts and transactions have been eliminated. Certain prior period amounts have been reclassified to conform to the current period presentation. All entities in which the Company holds investments that are considered VIEs for financial reporting purposes were reviewed for consolidation under the applicable consolidation guidance. Whenever the Company has both the power to direct the activities of an entity that most significantly impact the entity’s performance, and the obligation to absorb losses or the right to receive benefits of the entity that could be significant, the Company consolidates the entity. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make a number of significant estimates. These include estimates of amount and timing of allowances for credit losses, fair value of certain assets and liabilities, and other estimates that affect the reported amounts of certain assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of certain revenues and expenses during the reported period. It is likely that changes in these estimates (e.g., valuation changes to the underlying collateral of loans due to changes in market capitalization rates, leasing, credit worthiness of major tenants, occupancy rates, availability of financing, exit plan, loan sponsorship, actions of other lenders, overall economic and capital markets conditions, the broader commercial real estate market, local geographic sub-markets or other factors) will occur in the near term. As of September 30, 2021, the COVID-19 pandemic remains ongoing. Since the beginning of 2020, the pandemic has significantly impacted the global economy, created disruptions in the global supply chain, increased rates of unemployment and adversely impacted many industries, including those related to the real estate collateral underlying certain of our loans. So far in 2021, the global and U.S. economic activity has, to varying degrees, begun to improve, as wider distribution of the COVID-19 vaccines has continued. As a result, macroeconomic forecasts have improved over the last few quarters, including expectations for unemployment rates and overall economic output. Nonetheless, the ongoing pandemic may continue to adversely impact the macroeconomic recovery, particularly with respect to the emergence of new variants of the COVID-19 virus, the continued distribution and acceptance of vaccines and the effectiveness of such vaccines against new variants of the COVID-19 virus. Accordingly, given the ongoing nature of the outbreak, at this time the Company cannot reasonably estimate the magnitude of the long-term impact that COVID-19 may have on the economic activity and real estate market conditions, as well as the Company’s business, financial performance and operating results. The Company believes the estimates and assumptions underlying its condensed consolidated financial statements are reasonable and supportable based on the information available as of September 30, 2021. However, uncertainty over the ultimate impact the COVID-19 pandemic will have on the global economy generally, and the Company’s business in particular, makes any estimates and assumptions as of September 30, 2021 inherently less certain than they would be absent the current and potential impacts of the COVID-19 pandemic. The Company’s actual results could ultimately differ from its estimates and such differences may be material. Significant Accounting Policies Included in Note 2 to the Consolidated Financial Statements of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 is a summary of the Company’s significant accounting policies. Provided below is a summary of additional accounting policies that are significant to the Company’s condensed consolidated financial condition and results of operations for the three and nine months ended September 30, 2021. Term Financing Facility The Company finances certain of its loans held-for-investment through the use of a term financing facility. Borrowings under the term financing facility bear an interest rate of a specified margin over the one-month London Interbank Offered Rate, or LIBOR. The term financing facility financings are treated as collateralized financing transactions and are carried at their contractual amounts, as specified in the respective agreements. Recently Issued and/or Adopted Accounting Standards Facilitation of the Effects of Reference Rate Reform on Financial Reporting In March 2020, the Financial Accounting Standards Board, or FASB, issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, or ASU No. 2020-04, which provides optional expedients and exceptions for applying GAAP to debt instruments, derivatives, and other contracts that reference LIBOR or other reference rates expected to be discontinued as a result of reference rate reform. This guidance is optional and may be elected through December 31, 2022 using a prospective application on all eligible contract modifications. The Company has loan agreements, and debt agreements that incorporate LIBOR as a referenced interest rate. It is difficult to predict what effect, if any, the phase-out of LIBOR and the use of alternative benchmarks may have on the Company’s business or on the overall financial markets. The Company has not adopted any of the optional expedients or exceptions through September 30, 2021, but will continue to evaluate the possible adoption of any such expedients or exceptions. Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity In August 2020, FASB issued ASU No. 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in an Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, or ASU No. 2020-06. The intention of ASU No. 2020-06 is to address the complexities in accounting for certain financial instruments with a debt and equity component. Under ASU No. 2020-06, the number of accounting models for convertible notes will be reduced and entities that issue convertible debt will be required to use the if-converted method for the computation of diluted "Earnings per share" under ASC 260. ASC 2020-06 is effective for fiscal years beginning after December 15, 2021 and may be adopted through either a modified retrospective method of transition or a fully retrospective method of transition. The Company is currently assessing the impact this guidance will have on its condensed consolidated financial statements. |
Loans Held-for-Investment, Net
Loans Held-for-Investment, Net of Allowance for Credit Losses | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Loans Held-for-Investment, Net of Allowance for Credit Losses | Loans Held-for-Investment, Net of Allowance for Credit Losses The Company originates and acquires commercial real estate debt and related instruments generally to be held as long-term investments. These assets are classified as “loans held-for-investment” on the condensed consolidated balance sheets. Loans held-for-investment are reported at cost, net of any unamortized acquisition premiums or discounts, loan fees, origination costs and allowance for credit losses, as applicable. The following tables summarize the Company’s loans held-for-investment by asset type, property type and geographic location as of September 30, 2021 and December 31, 2020: September 30, (dollars in thousands) Senior Loans (1) Mezzanine Loans B-Notes Total Unpaid principal balance $ 3,657,401 $ 1,387 $ 14,065 $ 3,672,853 Unamortized (discount) premium (67) — — (67) Unamortized net deferred origination fees (13,095) — — (13,095) Allowance for credit losses (40,897) (1,387) (3,196) (45,480) Carrying value $ 3,603,342 $ — $ 10,869 $ 3,614,211 Unfunded commitments $ 430,105 $ — $ — $ 430,105 Number of loans 98 1 1 100 Weighted average coupon 4.6 % 13.0 % 8.0 % 4.6 % Weighted average years to maturity (2) 1.0 4.1 5.3 1.0 December 31, (dollars in thousands) Senior Loans (1) Mezzanine Loans B-Notes Total Unpaid principal balance $ 3,915,833 $ 2,366 $ 14,235 $ 3,932,434 Unamortized (discount) premium (75) — — (75) Unamortized net deferred origination fees (17,890) — — (17,890) Allowance for credit losses (60,130) (2,366) (4,170) (66,666) Carrying value $ 3,837,738 $ — $ 10,065 $ 3,847,803 Unfunded commitments $ 503,726 $ — $ — $ 503,726 Number of loans 101 1 1 103 Weighted average coupon 5.1 % 13.0 % 8.0 % 5.1 % Weighted average years to maturity (2) 1.1 4.9 6.1 1.1 ____________________ (1) Loans primarily secured by a first priority lien on commercial real property and related personal property and also includes, when applicable, any companion subordinate loans. (2) Based on contractual maturity date. Certain loans are subject to contractual extension options with such conditions stipulated in the applicable loan documents. Actual maturities may differ from contractual maturities stated herein as certain borrowers may have the right to prepay with or without paying a prepayment fee. The Company may also extend contractual maturities in connection with certain loan modifications. (dollars in thousands) September 30, December 31, Property Type Carrying Value % of Loan Portfolio Carrying Value % of Loan Portfolio Office $ 1,663,478 46.0 % $ 1,720,705 44.7 % Multifamily 982,624 27.2 % 910,557 23.7 % Hotel 517,028 14.3 % 646,869 16.8 % Retail 340,265 9.4 % 332,218 8.6 % Industrial 89,456 2.5 % 196,677 5.1 % Other 21,360 0.6 % 40,777 1.1 % Total $ 3,614,211 100.0 % $ 3,847,803 100.0 % (dollars in thousands) September 30, December 31, Geographic Location Carrying Value % of Loan Portfolio Carrying Value % of Loan Portfolio Northeast $ 950,447 26.3 % $ 1,028,584 26.8 % Southwest 807,483 22.3 % 802,233 20.8 % West 630,826 17.5 % 682,236 17.7 % Midwest 608,102 16.8 % 712,675 18.5 % Southeast 617,353 17.1 % 622,075 16.2 % Total $ 3,614,211 100.0 % $ 3,847,803 100.0 % At September 30, 2021 and December 31, 2020, the Company pledged loans held-for-investment with a carrying value, net of allowance for credit losses, of $3.5 billion and $3.8 billion, respectively, as collateral under repurchase facilities, an asset-specific financing facility, a term financing facility and securitized debt obligations. See Note 4 - Variable Interest Entities and Securitized Debt Obligations and Note 5 - Secured Financing Agreements. The following table summarizes activity related to loans held-for-investment, net of allowance for credit losses, for the three and nine months ended September 30, 2021 and 2020: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2021 2020 2021 2020 Balance at beginning of period $ 3,577,644 $ 4,290,047 $ 3,847,803 $ 4,226,212 Originations, additional fundings and capitalized deferred interest 325,597 57,617 565,212 317,630 Repayments (290,497) (184,723) (815,054) (290,838) Transfers to loans held-for-sale — (190,787) — (210,452) Net discount accretion (premium amortization) (2) — 9 16 (Increase) decrease in net deferred origination fees (3,566) 101 (5,905) (2,908) Amortization of net deferred origination fees 2,584 3,236 10,700 12,541 Benefit from (provision for) credit losses 2,451 3,371 11,446 (73,339) Balance at end of period $ 3,614,211 $ 3,978,862 $ 3,614,211 $ 3,978,862 Allowance for Credit Losses Subsequent to the adoption of ASU 2016-13 on January 1, 2020, to estimate and recognize an allowance for credit losses on loans held-for-investment and their related unfunded commitments, the Company continues to use a third-party licensed probability-weighted analytical model. The Company employs quarterly updated macroeconomic forecasts, which reflect the ongoing impact of the COVID-19 pandemic on the overall U.S. economy and commercial real estate markets generally. Driven by the general progress around the development and distribution of the COVID-19 vaccines over the last few quarters, those macroeconomic forecasts have been improving, including expectations for unemployment rates, overall economic output and values of real estate properties. Significant inputs to the Company’s estimate of the allowance for credit losses include loan specific factors such as debt service coverage ratio, or DSCR, loan to value ratio, or LTV, remaining contractual loan term, property type and others. In certain instances, for loans with unique risk and credit characteristics, the Company may instead elect to employ different methods to estimate an allowance for credit losses that also conform to ASU 2016-13 and related guidance. As of September 30, 2021, the Company recognized an allowance for credit losses related to its loans held-for-investment of $45.5 million, which reflected a write-off of $9.7 million on a loan held-for-investment and a benefit from provision for credit losses of $2.5 million for the three months ended September 30, 2021. The benefit from provision for credit losses reflects the continued general improvement in the overall performance of the investment portfolio and current expectations for further improvement in macroeconomic conditions. The allowance for credit losses related to the Company’s loans held-for-investment is deducted from the amortized cost basis of related loans, while the allowance for credit losses related to off-balance sheet unfunded commitments on existing loans is recorded as a component of other liabilities on the Company’s condensed consolidated balance sheets. As of September 30, 2021, the Company recognized $1.9 million in other liabilities related to the allowance for credit losses on unfunded commitments. During the three months ended September 30, 2021, the Company recognized a benefit from provision for credit losses of $3.3 million mainly related to the release of a $3.2 million allowance for credit losses related to unfunded commitments on the office loan that had previously been deemed to be collateral-dependent and for which the unfunded commitments were deemed to be unlikely to be funded, given the loan’s delinquent status as of September 30, 2021. Changes in the provision for credit losses for both loans held-for-investment and their related unfunded commitments are recognized through net income (loss) on the Company’s condensed consolidated statements of comprehensive income (loss). The following table presents the changes for the three and nine months ended September 30, 2021 and 2020 in the allowance for credit losses on loans held-for-investment: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2021 2021 Balance at beginning of period $ 57,671 $ 66,666 (Benefit from) provision for credit losses (2,451) (11,446) Write-off (9,740) (9,740) Recoveries of amounts previously written off — — Balance at end of period $ 45,480 $ 45,480 Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2020 2020 Balance at beginning of period $ 76,710 $ 16,692 (Benefit from) provision for credit losses (3,371) 56,647 Write-offs — — Recoveries of amounts previously written off — — Balance at end of period $ 73,339 $ 73,339 Generally, loans held-for-investment are placed on nonaccrual status when delinquent for more than 90 days or earlier when determined not to be probable of full collection. Interest income recognition is suspended when loans are placed on nonaccrual status. During the three months ended September 30, 2021, the Company resolved the nonaccrual status of a senior loan secured by a mixed-use office and retail property in New York City with an unpaid principal balance of $22.0 million. The Company received all interest that was previously due in the amount of approximately $1.6 million, which was recorded in interest income on the Company’s condensed consolidated statements of comprehensive income (loss). Given these facts and the Company’s expectations for the loan to be performing in accordance with the terms of the loan agreement, the loan was reinstated to accrual status. During the three months ended September 30, 2021, the Company resolved a senior loan that had an outstanding unpaid principal balance of $68.1 million and had been on nonaccrual status. The resolution involved a coordinated sale of the collateral property, a Minneapolis, MN hotel, and the Company providing the new ownership group with a new $45.3 million senior floating rate loan. As a result of these transactions, the Company recognized a write-off of $9.7 million. As of September 30, 2021, the Company had two senior loans with a total unpaid principal balance of $168.1 million and carrying value of $145.4 million that were held on nonaccrual status. Any reversal of accrued interest income is recorded in interest income on the Company’s condensed consolidated statements of comprehensive income (loss). No other loans were considered past due as of September 30, 2021. The following table presents the carrying value of loans held-for-investment on nonaccrual status for the three and nine months ended September 30, 2021: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2021 2021 Nonaccrual loan carrying value at beginning of period $ 225,115 $ 17,835 Addition of nonaccrual loan carrying value $ — $ 207,280 Removal of nonaccrual loan carrying value $ (79,765) $ (79,765) Nonaccrual loan carrying value at end of period $ 145,350 $ 145,350 Loan Risk Ratings The Company’s primary credit quality indicators are its risk ratings. The Company evaluates the credit quality of each loan at least quarterly by assessing the risk factors of each loan and assigning a risk rating based on a variety of factors. Risk factors include property type, geographic and local market dynamics, physical condition, leasing and tenant profile, projected cash flow, loan structure and exit plan, LTV, project sponsorship and other factors deemed necessary. Risk ratings are defined as follows: 1 – Lower Risk 2 – Average Risk 3 – Acceptable Risk 4 – Higher Risk: A loan that has exhibited material deterioration in cash flows and/or other credit factors, which, if negative trends continue, could be indicative of probability of principal loss. 5 – Loss Likely: A loan that has a significantly increased probability of principal loss. The following table presents the number of loans, unpaid principal balance and carrying value by risk rating for loans held-for-investment as of September 30, 2021 and December 31, 2020: (dollars in thousands) September 30, December 31, Risk Rating Number of Loans Unpaid Principal Balance Carrying Value Number of Loans Unpaid Principal Balance Carrying Value 1 9 $ 281,201 $ 280,172 6 $ 183,369 $ 182,730 2 53 1,842,052 1,819,740 50 1,863,590 1,847,332 3 26 839,615 832,077 29 1,055,782 1,026,662 4 10 541,891 536,872 17 762,636 732,310 5 2 168,094 145,350 1 67,057 58,769 Total 100 $ 3,672,853 $ 3,614,211 103 $ 3,932,434 $ 3,847,803 As of September 30, 2021, the weighted average risk rating of the Company’s portfolio was 2.6, weighted by unpaid principal balance, versus 2.8 as of June 30, 2021. The improvement in the portfolio’s average risk rating reflects the ongoing economic and market recovery from the COVID-19 pandemic, the advancement of business plans for the collateral properties, and the resulting improvement in the performance of the properties securing the Company’s loan portfolio, which resulted in risk rating upgrades in the portfolio during the three months ended September 30, 2021. The following table presents the carrying value of loans held-for-investment as of September 30, 2021 and 2020 by risk rating and year of origination: September 30, 2021 (dollars in thousands) Origination Year Risk Rating 2021 2020 2019 2018 2017 2016 Prior Total 1 $ — $ — $ 171,163 $ 75,601 $ — $ 33,408 $ — $ 280,172 2 $ 402,170 $ 86,214 $ 841,954 $ 340,839 $ 59,246 $ 37,389 $ 51,928 $ 1,819,740 3 $ 44,488 $ 58,241 $ 238,699 $ 241,541 $ 156,008 $ 67,991 $ 25,109 $ 832,077 4 $ — $ — $ 166,549 $ 73,375 $ 177,333 $ — $ 119,615 $ 536,872 5 $ — $ — $ — $ 99,495 $ 45,855 $ — $ — $ 145,350 Total $ 446,658 $ 144,455 $ 1,418,365 $ 830,851 $ 438,442 $ 138,788 $ 196,652 $ 3,614,211 September 30, 2020 (dollars in thousands) Origination Year Risk Rating 2020 2019 2018 2017 2016 Prior Total 1 $ — $ 18,269 $ 90,472 $ — $ 33,300 $ — $ 142,041 2 74,375 1,050,044 591,444 284,263 103,336 54,078 2,157,540 3 11,827 359,028 259,642 257,661 — 11,193 899,351 4 40,931 166,125 250,302 180,968 — 141,604 779,930 5 — — — — — — — Total $ 127,133 $ 1,593,466 $ 1,191,860 $ 722,892 $ 136,636 $ 206,875 $ 3,978,862 During the nine months ended September 30, 2021, the Company entered into a loan modification related to a retail asset located in Pasadena, CA, which is classified as troubled debt restructuring under GAAP. This modification included, among other changes, a partial deferral of the loan’s contractual interest payments due to the collateral property’s cash flows and operating performance being adversely affected by the ongoing effects of the COVID-19 pandemic. This loan had also been previously modified. At September 30, 2021, this first mortgage loan had an outstanding principal balance of $114.1 million and was assigned a risk rating of “5”. The Company determined that the recovery of the loan’s principal is collateral-dependent. Accordingly, this loan was assessed individually and the Company elected to apply a practical expedient in accordance with ASU 2016-13. At September 30, 2021, the Company recorded an allowance for credit loss of $14.1 million on this loan based on the Company’s estimate of fair value of the loan’s underlying collateral using the discounted cash flow method of valuation less the estimated cost to foreclose and sell the property. The estimation of the fair value of the collateral property also involved using various Level 3 inputs, which were in part developed based on discussions with various market participants and management’s best estimates as of the valuation date, and required significant judgment. Additionally, during the nine months ended September 30, 2021, the Company placed this loan on nonaccrual status and reversed $0.3 million of interest income. This loan’s maturity date has passed without the loan being paid off. The Company is evaluating a variety of potential options with respect to the resolution of this loan, which, among others, may include a foreclosure, negotiated deed-in-lieu of foreclosure, a sale of the underlying collateral property or a sale of the loan. During the nine months ended September 30, 2021, a first mortgage loan with a principal balance of $54.0 million collateralized by an office property located in Washington, D.C., was downgraded to a risk rating of “5” as a result of the collateral property’s operating performance being adversely affected by the ongoing office leasing market challenges related to the COVID-19 pandemic. During the nine months ended September 30, 2021, the Company entered into a loan modification related to this asset, which included, among other changes, a reallocation of certain reserves. This loan had also been modified previously. The Company determined that the recovery of the loan’s principal is collateral-dependent. Accordingly, this loan was assessed individually and the Company elected to apply a practical expedient in accordance with ASU 2016-13. At September 30, 2021, the Company recorded an allowance for credit loss of $8.0 million on this loan based on the Company’s estimate of fair value of the loan’s underlying collateral using the discounted cash flow method of valuation less the estimated cost to foreclose and sell the property. The estimation of the fair value of the collateral property also involved using various |
Variable Interest Entities and
Variable Interest Entities and Securitized Debt Obligations | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities and Securitized Debt Obligations | Variable Interest Entities and Securitized Debt Obligations The Company finances pools of its commercial real estate loans through CRE CLOs, which are considered VIEs for financial reporting purposes, and, thus, are reviewed for consolidation under the applicable consolidation guidance. The Company has both the power to direct the activities of the CRE CLOs that most significantly impact the entities’ performance and the obligation to absorb losses or the right to receive benefits of the entities that could be significant; therefore, the Company consolidates the CRE CLOs. The following table presents a summary of the assets and liabilities of all VIEs consolidated on the Company’s condensed consolidated balance sheets as of September 30, 2021 and December 31, 2020: (in thousands) September 30, December 31, Loans held-for-investment $ 1,802,296 $ 1,200,479 Allowance for credit losses (18,067) (15,914) Loans held-for-investment, net 1,784,229 1,184,565 Cash and cash equivalents — — Restricted cash 20,000 62,804 Other assets 19,944 8,563 Total Assets $ 1,824,173 $ 1,255,932 Securitized debt obligations $ 1,356,429 $ 927,128 Other liabilities 1,246 1,092 Total Liabilities $ 1,357,675 $ 928,220 The securitized debt obligations issued by the CRE CLOs are recorded at outstanding principal, net of any unamortized deferred debt issuance costs, on the Company’s condensed consolidated balance sheets. The following table details our CRE CLO securitized debt obligations: (in thousands) September 30, Securitized Debt Obligations Principal Balance Carrying Value Wtd. Avg. Yield/Cost (1) GPMT 2021-FL3 CRE CLO Collateral assets (2) $ 768,796 $ 763,848 L+3.8% Financing provided 630,818 627,580 L+1.7% GPMT 2019-FL2 CRE CLO Collateral assets 734,111 719,822 L+4.0% Financing provided 572,001 570,597 L+1.7% GPMT 2018-FL1 CRE CLO Collateral assets 324,651 320,558 L+5.1% Financing provided 158,253 158,252 L+2.3% Total Collateral assets $ 1,827,558 $ 1,804,228 L+4.1% Financing provided $ 1,361,072 $ 1,356,429 L+1.8% ____________________ (1) Calculations of all in yield on collateral assets at origination are based on a number of assumptions (some or all of which may not occur) and are expressed as monthly equivalent yields that include net origination fees and exit fees and exclude future fundings and any potential or completed loan amendments or modifications. Calculations of cost of funds is the weighted average coupon of the CRE CLO, exclusive of any CRE CLO issuance costs. (2) Includes $20 million of restricted cash. |
Secured Financing Agreements
Secured Financing Agreements | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Secured Financing Agreements | Secured Financing Agreements To finance its loans held-for-investment, the Company has entered into a variety of secured financing arrangements with several counterparties, including repurchase facilities, an asset-specific financing facility and a term financing facility. The Company’s repurchase facilities are collateralized by loans held-for-investment and certain cash balances. Although the transactions under repurchase facilities represent committed borrowings until maturity, the respective lender retains the right to mark the underlying collateral to fair value. A reduction in the value of pledged assets due to collateral-specific credit events, or, with respect to a limited number of the Company’s repurchase facilities, capital market events, would require the Company to fund margin calls. The Company does not typically retain similar rights for the Company to make margin calls on its underlying borrowers as a result of a determination by the Company and/or its financing counterparty that there has been a decrease in the market value of the underlying pledged collateral. The Company’s asset-specific financing facility and term financing facility are also collateralized by loans held-for-investment. Neither facility contains mark-to-market provisions and both are generally term-matched to the underlying assets, not to exceed February 9, 2025 in the case of the term financing facility. The following tables summarize details of the Company’s borrowings outstanding on its secured financing agreements as of September 30, 2021 and December 31, 2020: September 30, 2021 (in thousands) Maturity Date (1) Amount Outstanding Unused Capacity Total Capacity Carrying Value of Collateral Weighted Average Borrowing Rate Repurchase facilities: Morgan Stanley Bank (2) June 28, 2022 $ 277,534 $ 222,466 $ 500,000 $ 436,329 2.2 % Goldman Sachs Bank USA (3) July 13, 2023 — 250,000 250,000 10,352 — % JPMorgan Chase Bank June 28, 2022 155,214 294,786 450,000 244,233 2.2 % Citibank January 9, 2023 412,274 87,726 500,000 535,684 1.7 % Wells Fargo Bank (4) June 28, 2022 71,736 28,264 100,000 109,865 2.1 % Total/Weighted Average $ 916,758 $ 883,242 $ 1,800,000 $ 1,336,463 Asset-specific financings: CIBC Bank USA Term Matched $ 44,752 $ 105,248 $ 150,000 $ 55,829 1.8 % Term financing facility: Goldman Sachs Bank USA (5) February 14, 2025 $ 127,867 $ — $ 127,867 $ 324,991 3.7 % December 31, 2020 (in thousands) Maturity Date (1) Amount Outstanding Unused Capacity Total Capacity Carrying Value of Collateral Weighted Average Borrowing Rate Repurchase facilities: Morgan Stanley Bank June 28, 2021 $ 435,719 $ 164,281 $ 600,000 $ 657,066 2.3 % Goldman Sachs Bank USA May 2, 2021 395,990 104,010 500,000 593,625 2.5 % JPMorgan Chase Bank June 28, 2022 361,797 88,203 450,000 536,758 2.5 % Citibank January 9, 2023 386,049 113,951 500,000 504,236 1.8 % Wells Fargo Bank June 28, 2021 129,320 145,680 275,000 185,282 2.1 % Total/Weighted Average $ 1,708,875 $ 616,125 $ 2,325,000 $ 2,476,967 Asset-specific financings: CIBC Bank USA Term Matched $ 123,091 $ 26,909 $ 150,000 $ 152,929 2.5 % ____________________ (1) The facilities are set to mature on the stated maturity date, unless extended pursuant to their terms. (2) As of September 30, 2021, the Company retained an option to increase the maximum facility capacity amount up to $600 million, subject to customary terms and conditions. (3) As of September 30, 2021, the Company retained options to increase the maximum facility capacity amount up to $350 million, subject to customary terms and conditions. (4) As of September 30, 2021, the Company retained options to increase the maximum facility capacity amount up to $200 million, subject to customary terms and conditions. (5) Amount outstanding includes unamortized debt issuance costs. At September 30, 2021, the Company’s borrowings outstanding on its secured financing facilities had contractual maturities as follows: September 30, 2021 (dollars in thousands) Repurchase Facilities Asset-Specific Financings Term Financing Facility (1) Total Amount Outstanding 2021 $ — 44,752 $ — $ 44,752 2022 504,484 — — 504,484 2023 412,274 — — 412,274 2024 — — — — 2025 — — 127,867 127,867 Thereafter — — — — Total $ 916,758 $ 44,752 $ 127,867 $ 1,089,377 ____________________ (1) Amount outstanding includes unamortized debt issuance costs. The following table summarizes certain characteristics of the Company’s repurchase facilities and counterparty concentration at September 30, 2021 and December 31, 2020: September 30, 2021 December 31, 2020 (dollars in thousands) Amount Outstanding Net Counterparty Exposure (1) Percent of Equity Weighted Average Years to Maturity Amount Outstanding Net Counterparty Exposure (1) Percent of Equity Weighted Average Years to Maturity Morgan Stanley Bank $ 277,534 $ 163,245 18 % 0.74 $ 435,719 $ 230,815 25 % 0.49 JPMorgan Chase Bank 155,214 94,929 10 % 0.74 361,797 187,282 20 % 1.50 Goldman Sachs Bank USA — 6,103 1 % 1.78 395,990 203,297 22 % 0.33 Citibank 412,274 131,034 14 % 1.28 386,049 124,913 13 % 2.02 Wells Fargo Bank 71,736 39,112 4 % 0.74 129,320 57,483 6 % 0.49 Total $ 916,758 $ 434,423 $ 1,708,875 $ 803,790 ____________________ (1) Represents the excess of the carrying amount or market value of the loans held-for-investment pledged as collateral for repurchase facilities, including accrued interest plus any cash on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest. The Company does not anticipate any defaults by its financing counterparties, although there can be no assurance that one or more defaults will not occur. Financial Covenants The Company is subject to a variety of financial covenants under its secured financing agreements. The following represent the most restrictive financial covenants across the agreements as of September 30, 2021: • Unrestricted cash cannot be less than the greater of $30.0 million and 5.0% of recourse indebtedness. As of September 30, 2021, the Company’s unrestricted cash was $154.9 million, while 5.0% of the Company’s recourse indebtedness was $39.3 million. • Tangible net worth must be greater than the sum of (i) 75.0% of the Company’s tangible net worth as of June 28, 2017 and (ii) 75.0% of net cash proceeds of the Company’s equity issuances after June 28, 2017, which calculates to $782.3 million. As of September 30, 2021, the Company’s tangible net worth was $979.6 million. • Target asset leverage ratio cannot exceed 77.5% and total leverage ratio cannot exceed 80.0%. As of September 30, 2021, the Company’s target asset leverage ratio was 66.3% and the Company’s total leverage ratio was 75.2%. • Minimum interest coverage must be greater than 1.5:1.0. As of September 30, 2021, the Company’s minimum interest coverage was 1.8:1.0. On September 25, 2020, the Company, as a guarantor, and certain subsidiaries of the Company, as borrowers, entered into a five-year senior secured term loan credit agreement with certain investment vehicles managed by Pacific Investment Management Company LLC, or PIMCO, providing for up to $300.0 million of new senior secured term loan facilities and warrants to purchase, in the aggregate, up to 6,065,820 shares of the Company’s common stock, $0.01 par value per share. The senior secured term loan credit agreement is guaranteed by the Company and certain of its subsidiaries and secured by certain of their unencumbered assets and pledges of certain equity interests held by the Company and its subsidiaries. The loans outstanding under the senior secured term loan facilities are non-amortizing and may be voluntarily repaid, in whole or in part, at any time subject to certain prepayment premiums if they are repaid prior to September 25, 2023. On September 28, 2020, the Company borrowed $225.0 million under the initial senior secured term loan facilities. The Company chose not to borrow the remaining $75.0 million of commitments under the facilities, which were available to the Company on a delayed draw basis until September 25, 2021. The net proceeds from the senior secured term loan facilities were approximately $210.2 million after deducting discounts and expenses, which were capitalized as debt issuance costs. Interest on the outstanding loans under the senior secured term loan facilities is payable quarterly in arrears and accrues at the rate of (i) 8.00% per annum for any period for which accrued interest is paid in cash or (ii) 9.00% per annum for any period for which the borrowers elect to pay up to 50% of accrued interest in kind by adding such interest to the principal amount of the loans. The senior secured term loan facilities will mature on September 25, 2025. On September 25, 2021, warrantholders forfeited unvested warrants exercisable for 1,516,455 shares of common stock because the Company chose not to borrow the $75.0 million of delayed draw commitments available under the facilities. On September 30, 2021, the Company settled part of the outstanding warrants to purchase approximately 1.06 million shares of common stock at an exercise price of $6.47 per share of common stock for a net cash amount of approximately $7.5 million. Subsequent to quarter end, on October 4, 2021, the Company settled the remaining warrants to purchase approximately 3.49 million shares of common stock at an exercise price of $6.47 per share of common stock for a net cash amount of approximately $24.7 million. The Company currently has no warrants outstanding. The Company retained third party valuation experts to assist with estimating the fair value of the warrants on the issuance date. Based on the warrants’ fair value relative to the fair value of the senior secured term loan facilities, approximately $4.5 million of the $225.0 million of gross proceeds was allocated to the warrants, creating a corresponding senior secured term loan facilities discount in the same amount. The Company elected the accreted redemption value method whereby this discount will be accreted over five years using the effective interest method, resulting in an increase in the carrying value of the senior secured term loan facilities. The table below summarizes the net carrying amount of the senior secured term loan facilities: September 30, December 31, (in thousands) 2021 2020 Principal outstanding $ 225,000 $ 225,000 Less: Unamortized debt discount and issuance costs (16,215) (18,552) Net carrying value $ 208,785 $ 206,448 The senior secured term loan credit agreement contains various affirmative and negative covenants, which are applicable to the Company, the borrowers and their respective subsidiaries, including limitations (subject to exceptions) on their ability to: (i) incur indebtedness; (ii) incur liens on their assets; (iii) consummate certain fundamental changes; (iv) dispose of all or any part of their assets; (v) pay dividends or other distributions with respect to their equity interests; (vi) make investments; (vii) enter into transactions with their affiliates; (viii) modify the terms of the Company’s existing convertible notes, any refinancings thereof or any subordinated or junior lien indebtedness, or prepay any such indebtedness; and (ix) enter into certain burdensome agreements. The senior secured term loan credit agreement also contains financial covenants that are substantially similar to the financial covenants under the Company’s repurchase facilities, asset-specific financing facility and term financing facility. If the Company fails to meet or satisfy any of the covenants in accordance with the senior secured term loan credit agreement and is unable to obtain a waiver or other suitable relief from the lenders, the Company would be in default and the Company’s lenders could elect to declare outstanding amounts due and payable. The Company was in compliance with all of its financial covenants as of September 30, 2021. |
Convertible Senior Notes
Convertible Senior Notes | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes | Convertible Senior Notes In December 2017, the Company closed a private placement of $125.0 million aggregate principal amount of convertible senior notes due 2022. In January 2018, an additional $18.8 million in notes were issued by the Company in connection with the exercise of the initial purchaser’s option. The net proceeds from the offering were approximately $139.5 million after deducting underwriting discounts and expenses. The notes are unsecured, pay interest semiannually at a rate of 5.625% per annum and are convertible at the option of the holder into shares of the Company’s common stock. The notes will mature in December 2022, unless earlier converted or repurchased in accordance with their terms. The Company does not have the right to redeem the notes prior to maturity, but may be required to repurchase the notes from holders under certain circumstances. As of September 30, 2021, the notes had a conversion rate of 51.9943 shares of common stock per $1,000 principal amount of the notes . In October 2018, the Company closed an underwritten public offering of $131.6 million aggregate principal amount of convertible senior notes due 2023. The net proceeds from the offering were approximately $127.7 million after deducting underwriting discounts and expenses. The notes are unsecured, pay interest semiannually at a rate of 6.375% per annum and are convertible at the option of the holder into shares of the Company’s common stock. The notes will mature in October 2023, unless earlier converted or repurchased in accordance with their terms. The Company does not have the right to redeem the notes prior to maturity, but may be required to repurchase the notes from holders under certain circumstances. As of September 30, 2021, the notes had a conversion rate of 50.0894 shares of common stock per $1,000 principal amount of the notes . The consolidated amount outstanding due on convertible senior notes as of September 30, 2021 and December 31, 2020 was $272.5 million and $271.3 million, respectively, net of deferred issuance costs. The following table details the interest expense related to the Convertible Senior Notes: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2021 2020 2021 2020 Cash coupon $ 4,119 $ 4,119 $ 12,357 $ 12,357 Amortization of issuance costs 437 410 1,261 1,213 Total interest expense $ 4,556 $ 4,529 $ 13,618 $ 13,570 The following table details the carrying value of the Convertible Senior Notes: December 2022 Convertible Senior Notes September 30, December 31, (in thousands) 2021 2020 Principal outstanding $ 143,750 $ 143,750 Less: Unamortized issuance costs (1,106) (1,774) Net carrying value $ 142,644 $ 141,976 October 2023 Convertible Senior Notes September 30, December 31, (in thousands) 2021 2020 Principal outstanding $ 131,600 $ 131,600 Less: Unamortized issuance costs (1,732) (2,326) Net carrying value $ 129,868 $ 129,274 |
Senior Secured Term Loan Facili
Senior Secured Term Loan Facilities and Warrants to Purchase Shares of Common Stock | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Senior Secured Term Loan Facilities and Warrants to Purchase Shares of Common Stock | Secured Financing Agreements To finance its loans held-for-investment, the Company has entered into a variety of secured financing arrangements with several counterparties, including repurchase facilities, an asset-specific financing facility and a term financing facility. The Company’s repurchase facilities are collateralized by loans held-for-investment and certain cash balances. Although the transactions under repurchase facilities represent committed borrowings until maturity, the respective lender retains the right to mark the underlying collateral to fair value. A reduction in the value of pledged assets due to collateral-specific credit events, or, with respect to a limited number of the Company’s repurchase facilities, capital market events, would require the Company to fund margin calls. The Company does not typically retain similar rights for the Company to make margin calls on its underlying borrowers as a result of a determination by the Company and/or its financing counterparty that there has been a decrease in the market value of the underlying pledged collateral. The Company’s asset-specific financing facility and term financing facility are also collateralized by loans held-for-investment. Neither facility contains mark-to-market provisions and both are generally term-matched to the underlying assets, not to exceed February 9, 2025 in the case of the term financing facility. The following tables summarize details of the Company’s borrowings outstanding on its secured financing agreements as of September 30, 2021 and December 31, 2020: September 30, 2021 (in thousands) Maturity Date (1) Amount Outstanding Unused Capacity Total Capacity Carrying Value of Collateral Weighted Average Borrowing Rate Repurchase facilities: Morgan Stanley Bank (2) June 28, 2022 $ 277,534 $ 222,466 $ 500,000 $ 436,329 2.2 % Goldman Sachs Bank USA (3) July 13, 2023 — 250,000 250,000 10,352 — % JPMorgan Chase Bank June 28, 2022 155,214 294,786 450,000 244,233 2.2 % Citibank January 9, 2023 412,274 87,726 500,000 535,684 1.7 % Wells Fargo Bank (4) June 28, 2022 71,736 28,264 100,000 109,865 2.1 % Total/Weighted Average $ 916,758 $ 883,242 $ 1,800,000 $ 1,336,463 Asset-specific financings: CIBC Bank USA Term Matched $ 44,752 $ 105,248 $ 150,000 $ 55,829 1.8 % Term financing facility: Goldman Sachs Bank USA (5) February 14, 2025 $ 127,867 $ — $ 127,867 $ 324,991 3.7 % December 31, 2020 (in thousands) Maturity Date (1) Amount Outstanding Unused Capacity Total Capacity Carrying Value of Collateral Weighted Average Borrowing Rate Repurchase facilities: Morgan Stanley Bank June 28, 2021 $ 435,719 $ 164,281 $ 600,000 $ 657,066 2.3 % Goldman Sachs Bank USA May 2, 2021 395,990 104,010 500,000 593,625 2.5 % JPMorgan Chase Bank June 28, 2022 361,797 88,203 450,000 536,758 2.5 % Citibank January 9, 2023 386,049 113,951 500,000 504,236 1.8 % Wells Fargo Bank June 28, 2021 129,320 145,680 275,000 185,282 2.1 % Total/Weighted Average $ 1,708,875 $ 616,125 $ 2,325,000 $ 2,476,967 Asset-specific financings: CIBC Bank USA Term Matched $ 123,091 $ 26,909 $ 150,000 $ 152,929 2.5 % ____________________ (1) The facilities are set to mature on the stated maturity date, unless extended pursuant to their terms. (2) As of September 30, 2021, the Company retained an option to increase the maximum facility capacity amount up to $600 million, subject to customary terms and conditions. (3) As of September 30, 2021, the Company retained options to increase the maximum facility capacity amount up to $350 million, subject to customary terms and conditions. (4) As of September 30, 2021, the Company retained options to increase the maximum facility capacity amount up to $200 million, subject to customary terms and conditions. (5) Amount outstanding includes unamortized debt issuance costs. At September 30, 2021, the Company’s borrowings outstanding on its secured financing facilities had contractual maturities as follows: September 30, 2021 (dollars in thousands) Repurchase Facilities Asset-Specific Financings Term Financing Facility (1) Total Amount Outstanding 2021 $ — 44,752 $ — $ 44,752 2022 504,484 — — 504,484 2023 412,274 — — 412,274 2024 — — — — 2025 — — 127,867 127,867 Thereafter — — — — Total $ 916,758 $ 44,752 $ 127,867 $ 1,089,377 ____________________ (1) Amount outstanding includes unamortized debt issuance costs. The following table summarizes certain characteristics of the Company’s repurchase facilities and counterparty concentration at September 30, 2021 and December 31, 2020: September 30, 2021 December 31, 2020 (dollars in thousands) Amount Outstanding Net Counterparty Exposure (1) Percent of Equity Weighted Average Years to Maturity Amount Outstanding Net Counterparty Exposure (1) Percent of Equity Weighted Average Years to Maturity Morgan Stanley Bank $ 277,534 $ 163,245 18 % 0.74 $ 435,719 $ 230,815 25 % 0.49 JPMorgan Chase Bank 155,214 94,929 10 % 0.74 361,797 187,282 20 % 1.50 Goldman Sachs Bank USA — 6,103 1 % 1.78 395,990 203,297 22 % 0.33 Citibank 412,274 131,034 14 % 1.28 386,049 124,913 13 % 2.02 Wells Fargo Bank 71,736 39,112 4 % 0.74 129,320 57,483 6 % 0.49 Total $ 916,758 $ 434,423 $ 1,708,875 $ 803,790 ____________________ (1) Represents the excess of the carrying amount or market value of the loans held-for-investment pledged as collateral for repurchase facilities, including accrued interest plus any cash on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest. The Company does not anticipate any defaults by its financing counterparties, although there can be no assurance that one or more defaults will not occur. Financial Covenants The Company is subject to a variety of financial covenants under its secured financing agreements. The following represent the most restrictive financial covenants across the agreements as of September 30, 2021: • Unrestricted cash cannot be less than the greater of $30.0 million and 5.0% of recourse indebtedness. As of September 30, 2021, the Company’s unrestricted cash was $154.9 million, while 5.0% of the Company’s recourse indebtedness was $39.3 million. • Tangible net worth must be greater than the sum of (i) 75.0% of the Company’s tangible net worth as of June 28, 2017 and (ii) 75.0% of net cash proceeds of the Company’s equity issuances after June 28, 2017, which calculates to $782.3 million. As of September 30, 2021, the Company’s tangible net worth was $979.6 million. • Target asset leverage ratio cannot exceed 77.5% and total leverage ratio cannot exceed 80.0%. As of September 30, 2021, the Company’s target asset leverage ratio was 66.3% and the Company’s total leverage ratio was 75.2%. • Minimum interest coverage must be greater than 1.5:1.0. As of September 30, 2021, the Company’s minimum interest coverage was 1.8:1.0. On September 25, 2020, the Company, as a guarantor, and certain subsidiaries of the Company, as borrowers, entered into a five-year senior secured term loan credit agreement with certain investment vehicles managed by Pacific Investment Management Company LLC, or PIMCO, providing for up to $300.0 million of new senior secured term loan facilities and warrants to purchase, in the aggregate, up to 6,065,820 shares of the Company’s common stock, $0.01 par value per share. The senior secured term loan credit agreement is guaranteed by the Company and certain of its subsidiaries and secured by certain of their unencumbered assets and pledges of certain equity interests held by the Company and its subsidiaries. The loans outstanding under the senior secured term loan facilities are non-amortizing and may be voluntarily repaid, in whole or in part, at any time subject to certain prepayment premiums if they are repaid prior to September 25, 2023. On September 28, 2020, the Company borrowed $225.0 million under the initial senior secured term loan facilities. The Company chose not to borrow the remaining $75.0 million of commitments under the facilities, which were available to the Company on a delayed draw basis until September 25, 2021. The net proceeds from the senior secured term loan facilities were approximately $210.2 million after deducting discounts and expenses, which were capitalized as debt issuance costs. Interest on the outstanding loans under the senior secured term loan facilities is payable quarterly in arrears and accrues at the rate of (i) 8.00% per annum for any period for which accrued interest is paid in cash or (ii) 9.00% per annum for any period for which the borrowers elect to pay up to 50% of accrued interest in kind by adding such interest to the principal amount of the loans. The senior secured term loan facilities will mature on September 25, 2025. On September 25, 2021, warrantholders forfeited unvested warrants exercisable for 1,516,455 shares of common stock because the Company chose not to borrow the $75.0 million of delayed draw commitments available under the facilities. On September 30, 2021, the Company settled part of the outstanding warrants to purchase approximately 1.06 million shares of common stock at an exercise price of $6.47 per share of common stock for a net cash amount of approximately $7.5 million. Subsequent to quarter end, on October 4, 2021, the Company settled the remaining warrants to purchase approximately 3.49 million shares of common stock at an exercise price of $6.47 per share of common stock for a net cash amount of approximately $24.7 million. The Company currently has no warrants outstanding. The Company retained third party valuation experts to assist with estimating the fair value of the warrants on the issuance date. Based on the warrants’ fair value relative to the fair value of the senior secured term loan facilities, approximately $4.5 million of the $225.0 million of gross proceeds was allocated to the warrants, creating a corresponding senior secured term loan facilities discount in the same amount. The Company elected the accreted redemption value method whereby this discount will be accreted over five years using the effective interest method, resulting in an increase in the carrying value of the senior secured term loan facilities. The table below summarizes the net carrying amount of the senior secured term loan facilities: September 30, December 31, (in thousands) 2021 2020 Principal outstanding $ 225,000 $ 225,000 Less: Unamortized debt discount and issuance costs (16,215) (18,552) Net carrying value $ 208,785 $ 206,448 The senior secured term loan credit agreement contains various affirmative and negative covenants, which are applicable to the Company, the borrowers and their respective subsidiaries, including limitations (subject to exceptions) on their ability to: (i) incur indebtedness; (ii) incur liens on their assets; (iii) consummate certain fundamental changes; (iv) dispose of all or any part of their assets; (v) pay dividends or other distributions with respect to their equity interests; (vi) make investments; (vii) enter into transactions with their affiliates; (viii) modify the terms of the Company’s existing convertible notes, any refinancings thereof or any subordinated or junior lien indebtedness, or prepay any such indebtedness; and (ix) enter into certain burdensome agreements. The senior secured term loan credit agreement also contains financial covenants that are substantially similar to the financial covenants under the Company’s repurchase facilities, asset-specific financing facility and term financing facility. If the Company fails to meet or satisfy any of the covenants in accordance with the senior secured term loan credit agreement and is unable to obtain a waiver or other suitable relief from the lenders, the Company would be in default and the Company’s lenders could elect to declare outstanding amounts due and payable. The Company was in compliance with all of its financial covenants as of September 30, 2021. |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 9 Months Ended |
Sep. 30, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents include cash held in bank accounts and cash held in money market funds on an overnight basis. The Company is required to maintain certain cash balances in restricted accounts as collateral for the Company’s repurchase facilities and with counterparties to support investment activities. As of September 30, 2021, the Company held $0.6 million in restricted cash in connection with its non-CRE CLO financing activities, compared to $5.0 million as of December 31, 2020. In addition, as of September 30, 2021, the Company held $20.0 million in restricted cash representing proceeds from principal paydowns of loans held in the CRE CLOs, compared to $62.8 million as of December 31, 2020. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported on the Company’s condensed consolidated balance sheets as of September 30, 2021 and December 31, 2020 that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows: (in thousands) September 30, December 31, Cash and cash equivalents $ 154,916 $ 261,419 Restricted cash 20,602 67,774 Total cash, cash equivalents and restricted cash $ 175,518 $ 329,193 |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Fair Value Measurements ASC 820, Fair Value Measurements , or ASC 820, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 clarifies that fair value should be based on the assumptions market participants would use when pricing an asset or liability and establishes a fair value hierarchy that prioritizes the information used to develop those assumptions. The fair value hierarchy gives the highest priority to quoted prices available in active markets ( i.e. , market-based or observable inputs) and the lowest priority to data lacking transparency ( i.e. , unobservable inputs) resulting in the use of management assumptions. Additionally, ASC 820 requires an entity to consider all aspects of nonperformance risk, including the entity’s own credit standing, when measuring fair value of a liability. ASC 820 establishes a three-level hierarchy to be used when measuring and disclosing fair value. An instrument’s categorization within the fair value hierarchy is based on the lowest level of significant input to its valuation. Following is a description of the three levels: Level 1 Inputs are quoted prices in active markets for identical assets or liabilities as of the measurement date under current market conditions. Additionally, the entity must have the ability to access the active market and the quoted prices cannot be adjusted by the entity. Level 2 Inputs include quoted prices in active markets for similar assets or liabilities; quoted prices in inactive markets for identical or similar assets or liabilities; or inputs that are observable or can be corroborated by observable market data by correlation or other means for substantially the full-term of the assets or liabilities. Level 3 Unobservable inputs are supported by little or no market activity. The unobservable inputs represent the assumptions that market participants would use to price the assets and liabilities, including risk. Generally, Level 3 assets and liabilities are valued using pricing models, discounted cash flow methodologies or similar techniques that require significant judgment or estimation. Following are descriptions of the valuation methodologies used to measure material assets and liabilities at fair value and details of the valuation models, key inputs to those models and significant assumptions utilized. Recurring Fair Value As of September 30, 2021 and December 31, 2020, the Company held no assets or liabilities measured at fair value on a recurring basis. Nonrecurring Fair Value The Company may be required to measure certain assets or liabilities at fair value from time to time. These periodic fair value measures typically result from the application of allowances for collateral-dependent assets under GAAP. These items would constitute nonrecurring fair value measures under ASC 820. For collateral-dependent loans that are identified as impaired, the Company measures allowance for credit losses by comparing its estimation of the fair value of the underlying collateral, less costs to sell, to the carrying value of the respective loan. To estimate the fair value of the underlying collateral the Company may (i) use certain valuation techniques, which, among others, may include a discounted cash flow method of valuation, or (ii) by obtaining a third-party independent assessment of value such as an appraisal or other opinion of value. These valuations require significant judgments, which include assumptions regarding capitalization rates, discount rates, leasing, creditworthiness of major tenants, occupancy rates, availability and cost of financing, exit plan, loan sponsorship, actions of other lenders, and other factors deemed relevant. During the three months ended September 30, 2021, the Company assigned a risk rating of “5” to two of its loans held-for-investment during the quarterly risk rating process. As of September 30, 2021, these two loans have an aggregate outstanding principal balance of $168.1 million, and an aggregate carrying value of $145.3 million. The Company recorded a CECL reserve on these two assets based on its estimation of the fair value of each loan’s underlying collateral, less costs to sell, as of September 30, 2021. These loans held-for-investment are therefore measured at fair value on a nonrecurring basis using significant unobservable inputs, and are classified as Level 3 assets in the fair value hierarchy. The significant unobservable inputs used to estimate the fair value of these loans held-for-investment include the exit capitalization rate and discount rate assumptions used to forecast the future sale price of the underlying real estate collateral, which ranged from 5.50% to 7.00%, and from 7.00% to 9.50%, respectively. Refer to Note 3 - Loans Held-for-Investment, Net of Allowance for Credit Losses for further detail. Fair Value of Financial Instruments In accordance with ASC 820, the Company is required to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized in the condensed consolidated balance sheets, for which fair value can be estimated. The following describes the Company’s methods for estimating the fair value for financial instruments: • Loans held-for-investment are carried at cost, net of any unamortized acquisition premiums or discounts, loan fees, origination costs and allowance for credit losses, as applicable. The Company estimates the fair value of its loans held-for-investment by assessing any changes in market interest rates, credit spreads for loans of comparable risk as corroborated by inquiry of other market participants, shifts in credit profiles and actual operating results for mezzanine loans and senior loans, taking into consideration such factors as underlying property type, property competitive position within its market, market and submarket fundamentals, tenant mix, nature of business plan, sponsorship, extent of leverage and other loan terms. The Company categorizes the fair value measurement of these assets as Level 3. • Cash and cash equivalents and restricted cash have a carrying value which approximates fair value because of the short maturities of these instruments. The Company categorizes the fair value measurement of these assets as Level 1. • The carrying value of the underlying loans in the repurchase facilities, the asset-specific financing facility and the term financing facility that mature in less than one year generally approximates fair value due to the short maturities. The Company’s long-term repurchase facilities, asset-specific financing facility and term financing facility have floating rates based on an index plus a credit spread and the credit spread is typically consistent with those demanded in the market. Accordingly, the interest rates on these borrowings are at market and, thus, carrying value approximates fair value. The Company categorizes the fair value measurement of these liabilities as Level 2. • Securitized debt obligations are recorded at outstanding principal, net of any unamortized deferred debt issuance costs. In determining the fair value of its securitized debt obligations, management’s judgment may be used to arrive at fair value that considers prices obtained from third-party pricing providers, broker quotes received and other applicable market data. If observable market prices are not available or insufficient to determine fair value due principally to illiquidity in the marketplace, then fair value is based upon internally developed models that are primarily based on observable market-based inputs but also include unobservable market data inputs (including prepayment speeds, delinquency levels and credit losses). The Company categorizes the fair value measurement of these liabilities as Level 2. • Convertible senior notes are carried at their unpaid principal balance, net of any unamortized deferred issuance costs. The Company estimates the fair value of its convertible senior notes using the market transaction price nearest to September 30, 2021. The Company categorizes the fair value measurement of these assets as Level 2. • Senior secured term loan facilities are carried at their unpaid principal balance, net of any unamortized deferred issuance costs. The Company estimates the fair value of its senior secured term loan facilities at the carrying value thereof as of September 30, 2021. The Company categorizes the fair value measurement of these assets as Level 2. The following table presents the carrying values and estimated fair values of assets and liabilities that are required to be recorded or disclosed at fair value at September 30, 2021 and December 31, 2020: September 30, 2021 December 31, 2020 (in thousands) Carrying Value Fair Value Carrying Value Fair Value Assets Loans held-for-investment, net of allowance for credit losses $ 3,614,211 $ 3,648,115 $ 3,847,803 $ 3,867,286 Cash and cash equivalents $ 154,916 $ 154,916 $ 261,419 $ 261,419 Restricted cash $ 20,602 $ 20,602 $ 67,774 $ 67,774 Liabilities Repurchase facilities $ 916,758 $ 916,758 $ 1,708,875 $ 1,708,875 Securitized debt obligations $ 1,356,429 $ 1,360,354 $ 927,128 $ 916,701 Asset-specific financings $ 44,752 $ 44,752 $ 123,091 $ 123,091 Term financing facility $ 127,867 $ 127,867 $ — $ — Convertible senior notes $ 272,512 $ 275,141 $ 271,250 $ 257,411 Senior secured term loan facilities $ 208,785 $ 208,785 $ 206,448 $ 206,448 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The following represent the material commitments and contingencies of the Company as of September 30, 2021: Legal and Regulatory From time to time, the Company may be subject to liability under laws and government regulations and various claims and legal actions arising in the ordinary course of business. Liabilities are established for legal claims when payments associated with the claims become probable and the costs can be reasonably estimated. The actual costs of resolving legal claims may be substantially higher or lower than the amounts established for those claims. Based on information currently available, management is not aware of any legal or regulatory claims that would have a material effect on the Company’s condensed consolidated financial statements and, therefore, no accrual is required as of September 30, 2021. Unfunded Commitments on Loans Held-for-Investment Certain of the Company’s commercial real estate loan agreements contain provisions and obligations to extend credit to its borrowers through its unfunded loan commitments over the contractual period of its loans. As of September 30, 2021 and December 31, 2020, the Company had unfunded loan commitments of $430.1 million and $503.7 million, respectively, on loans held-for-investment, which it expects to fund, subject to the satisfaction of any conditions precedent to such commitments, over the tenure of these loans, which have a weighted average future funding period of approximately one to two years. These commitments generally provide funding for lease-related or capital improvement expenditures, as well as interest and carry costs, all of which will vary depending on the progress of capital improvement projects, leasing and cash flows at the properties that serve as collateral for the Company’s loans. Therefore, the exact timing and amounts of such loan balance future fundings are generally uncertain and will depend on the current and future performance of the collateral properties. Due to the COVID-19 pandemic and its impact on the global and U.S. economies, generally, and the U.S. commercial real estate market, specifically, the pace of lease-related or capital improvement expenditures may be slower than otherwise expected, and the pace of associated future fundings relating to these capital needs accordingly may be similarly slower; however, the exact timing and amounts are uncertain. The Company typically finances the funding of its loan commitments on terms generally consistent with its overall financing facilities; however, most of its financing agreement counterparties are not obligated to fund their ratable portion of these loan commitments over time and have varying degrees of discretion over future loan funding obligations, including the advance rates on their fundings. The Company may be obligated to fund loan commitments with respect to a pledged asset even if the applicable financing counterparty will not fund their ratable portion of the loan commitment and/or has made margin calls with respect to such pledged asset. As a result of the COVID-19 pandemic and the increased degree of uncertainty it has created, the Company’s financing agreement counterparties may be less likely to finance its future loan funding commitments than they were prior to the COVID-19 pandemic. |
Preferred Stock
Preferred Stock | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Preferred Stock | Preferred Stock The Company’s preferred stock ranks senior to the rights of holders of the Company’s common stock, but junior to all other classes or series of preferred stock that may be issued. The holders of the preferred stock are entitled to receive, when, as and if authorized and declared by the Company’s board of directors, cumulative cash dividends at the rate of 10% per annum of the $1,000 liquidation preference per share of the preferred stock. Such dividends accrue on a daily basis and are cumulative from and including the initial issue date of the preferred stock. The Company has the option at any time after five years from the initial issue date of June 28, 2017 to redeem the preferred stock at a redemption price of $1,000 per share, plus any accrued and unpaid dividends. At any time after six years from the initial issue date, the Company will, at the request of any preferred stockholder, repurchase the holder’s preferred stock at a price of $1,000 per share, plus any accrued and unpaid dividends. During each of the three and nine months ended September 30, 2021 and 2020, the Company declared dividends to the preferred stockholder of $25,000 and $75,000, respectively. Issuance of Sub-REIT Preferred Stock In January 2021, a subsidiary of the Company issued 625 shares of Series A preferred stock of which 500 shares were retained by the Company and 125 shares were sold to third party investors for proceeds of $0.1 million. The 500 preferred shares of Series A preferred stock retained by the Company are eliminated in the Company’s condensed consolidated statements of changes in equity and the 125 shares sold to third party investors are shown in the Company’s condensed consolidated statements of changes in equity as non-controlling interests. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2021 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Common Stock Distributions to Stockholders The following table presents cash dividends declared by the Company’s board of directors on its common stock from December 31, 2019 through September 30, 2021: Declaration Date Record Date Payment Date Cash Dividend Per Share September 15, 2021 October 1, 2021 October 19, 2021 $ 0.25 June 15, 2021 July 1, 2021 July 19, 2021 $ 0.25 March 18, 2021 April 1, 2021 April 19, 2021 $ 0.25 December 18, 2020 December 31, 2020 January 22, 2021 $ 0.25 December 18, 2020 December 31, 2020 January 22, 2021 $ 0.20 September 28, 2020 October 8, 2020 October 19, 2020 $ 0.20 Share Repurchases The Company’s Share Repurchase Program allows for the repurchase of up to an aggregate of 2,000,000 shares of the Company’s common stock and has no expiration date. The shares are expected to be repurchased from time to time through privately negotiated transactions or open market transactions, including pursuant to a trading plan in accordance with Rules 10b5-1 and 10b-18 under the Securities Exchange Act of 1934, as amended, or the Exchange Act, or by any combination of such methods. The manner, price, number and timing of share repurchases will be subject to a variety of factors, including market conditions and applicable SEC rules. During the three months ended September 30, 2021, the Company repurchased 1,000,721 shares of its common stock at a weighted average price of $13.49 per share for an aggregate cost of $13.5 million. As of September 30, 2021, there remained 698,388 shares authorized for repurchase. The Company has also authorized the repurchase of shares of restricted common stock granted to employees and directors for tax withholding purposes. During the nine months ended September 30, 2021, the Company repurchased from employees and directors 115,053 shares of its common stock for an aggregate cost of $1.2 million. No shares were repurchased for tax withholding purposes during the three months ended September 30, 2021 and three and nine months ended September 30, 2020. At-the-Market Offering The Company is party to an equity distribution agreement under which the Company may sell up to an aggregate of 8,000,000 shares of its common stock from time to time in any method permitted by law deemed to be an “at-the-market” offering as defined in Rule 415 under the Securities Act of 1933, as amended, or Securities Act. As of September 30, 2021, 3,242,364 shares of common stock had been sold under the equity distribution agreement for total accumulated net proceeds of approximately $61.2 million. No shares were sold during the three and nine months ended September 30, 2021 and 2020. Warrants to Purchase Common Stock See Note 7 - Senior Secured Term Loan Facilities and Warrants to Purchase Shares of Common Stock |
Equity Incentive Plan
Equity Incentive Plan | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Equity Incentive Plan | Equity Incentive Plan The Company’s 2017 Equity Incentive Plan, or the Plan, permits the granting of restricted common stock, phantom shares, or restricted stock units, both non-performance based, or RSUs, and performance-based, or PSUs, dividend equivalent rights and other equity-based awards to employees, directors, officers, advisors, consultants and other personnel. As of September 30, 2021, the Company had 2,228,088 shares of common stock available for future issuance under the Plan. The Company accounts for equity-based awards under ASC 718 - Compensation - Stock Compensation, which requires the Company to expense the cost of services received in exchange for equity-based awards based on the grant-date fair value of the awards. This expense is recognized ratably over the requisite service period following the date of grant. The fair value of awards of the Company's restricted common stock and RSUs is typically equivalent to the closing stock price on the grant date. The unrecognized compensation cost relating to such awards is recognized as an expense over the awards’ remaining vesting periods. As of September 30, 2021, there was $1.2 million of total unrecognized compensation cost for awards of restricted common stock that will be recognized over the grants' remaining weighted average vesting period of 1.6 years. For the three and nine months ended September 30, 2021, the Company recognized $0.5 million and $1.8 million, respectively, of compensation expense associated with these awards, compared to $1.3 million and $4.0 million, respectively, for the three and nine months ended September 30, 2020, within compensation and benefits expense on the condensed consolidated statements of income (loss). As of September 30, 2021, there was $6.7 million of total unrecognized compensation cost for awards of RSUs that will be recognized over the grants' remaining weighted average vesting period of 2.6 years. For the three and nine months ended September 30, 2021, the Company recognized $1.2 million and $3.1 million, respectively, of compensation expense associated with these awards within compensation and benefits expense on the condensed consolidated statements of income (loss). The Company did not recognize any compensation expense associated with grants of RSUs in any period prior to October 1, 2020. Awards of PSUs have a three three As of September 30, 2021, there was $4.3 million of total unrecognized compensation cost for awards of PSUs that will be recognized over the grants’ remaining weighted average vesting period of 2.4 years. For the three months and nine months ended September 30, 2021, the Company recognized $0.3 million and $0.6 million, respectively, of compensation expense associated with these awards within compensation and benefits expenses on the condensed consolidated statements of income (loss). The Company did not recognize any compensation expense associated with grants of PSUs in any period prior to January 1, 2021. The following table summarizes the grants, vesting and forfeitures of restricted common stock and RSUs for the nine months ended September 30, 2021: Restricted Stock RSUs PSUs Weighted Average Grant Date Fair Market Value Outstanding at December 31, 2020 569,535 403,903 — $ 14.93 Granted — 519,562 — 9.77 Vested (137,728) — — 18.46 Forfeited (97,425) — — 18.43 Outstanding at March 31, 2021 334,382 923,465 — $ 11.32 Granted — 44,853 — 14.77 Vested (52,092) (1,048) — 5.12 Forfeited (17,628) (3,957) — 5.93 Outstanding at June 30, 2021 264,662 963,313 — $ 11.95 Granted — — 347,896 14.15 Vested — — — — Forfeited — — — — Outstanding at September 30, 2021 264,662 963,313 347,896 12.44 Below is a summary of restricted stock and RSU vesting dates as of September 30, 2021: Vesting Year Restricted Stock RSUs PSUs Total Awards 2021 — 30,030 — 30,030 2022 172,077 218,034 — 390,111 2023 92,585 173,187 347,896 613,668 2024 — 173,194 — 173,194 2025 — 368,868 — 368,868 Total 264,662 963,313 347,896 1,575,871 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company has elected to be taxed as a REIT under the Code for U.S. federal income tax purposes. As long as the Company qualifies as a REIT, the Company generally will not be subject to U.S. federal income taxes on that portion of its income that it distributes to its stockholders if it annually distributes at least 90% of its REIT taxable income, without regard to the deduction for dividends paid and excluding net capital gains, and does not engage in prohibited transactions. For the year ended December 31, 2020, the Company did not distribute the required minimum amount of taxable income pursuant to federal excise tax requirements and, consequently, the Company accrued an excise tax of $0.6 million. As of September 30, 2021, the Company distributed 100% of its REIT taxable income for the taxable year ended December 31, 2020, in part with dividends paid in 2021, and has complied with all requirements to continue to qualify as a REIT. The majority of states also recognize the Company’s REIT status. The Company’s TRS files a separate federal tax return and is fully taxed as a standalone U.S. C-corporation. It is assumed that the Company will retain its REIT status and will incur no REIT level taxation as it intends to comply with the REIT regulations and annual distribution requirements. Based on the Company’s evaluation, it has been concluded that there are no significant uncertain tax positions requiring recognition in the Company’s condensed consolidated financial statements of a contingent tax liability for uncertain tax positions. Additionally, there were no amounts accrued for penalties or interest as of, or during, the periods presented in these condensed consolidated financial statements. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table presents a reconciliation of the earnings and shares used in calculating basic and diluted earnings per share for the three and nine months ended September 30, 2021 and 2020: Three Months Ended Nine Months Ended September 30, September 30, (in thousands, except share data) 2021 2020 2021 2020 Numerator: Net income (loss) attributable to common stockholders - basic $ 18,605 $ (24,691) $ 60,815 $ (63,665) Interest expense attributable to convertible notes — — 13,618 — Net income (loss) attributable to common stockholders - diluted $ 18,605 $ (24,691) $ 74,433 $ (63,665) Denominator: Weighted average common shares outstanding 54,188,884 54,624,739 54,537,196 54,561,411 Weighted average restricted stock shares 264,662 580,343 327,260 578,752 Basic weighted average shares outstanding 54,453,546 55,205,082 54,864,456 55,140,163 Effect of dilutive shares issued in an assumed conversion of the convertible senior notes — — 14,065,946 — Effect of dilutive shares issued in an assumed conversion of RSUs as additional shares 435,430 — 245,890 — Effect of dilutive shares issued in an assumed exercise of warrants issued in conjunction with the senior secured term loan facilities 1,846,302 — 1,726,453 — Diluted weighted average shares outstanding 56,735,278 55,205,082 70,902,745 55,140,163 Earnings (loss) per share Basic $ 0.34 $ (0.45) $ 1.11 $ (1.15) Diluted $ 0.33 $ (0.45) $ 1.05 $ (1.15) For the three and nine months ended September 30, 2020 and three months ended September 30, 2021, excluded from the calculation of diluted earnings per share is the effect of adding back $4.5 million, $13.6 million and $4.6 million, respectively, of interest expense and 13,717,782, 13,717,782 and 14,065,946, respectively, of weighted average common share equivalents related to the assumed conversion of the Company’s convertible senior notes, as their inclusion would be antidilutive. In conjunction with entering into the senior secured term loan credit agreement and the warrants described in Note 7 - Senior Secured Term Loan Facilities and Warrants to Purchase Shares of Common Stock , the Company elected the accreted redemption value method whereby the discount created based on the fair value of the warrants relative to the fair value of the senior secured term loan facilities and the related issuance costs will be accreted over five years using the effective interest method. Such adjustments are included in amortization of deferred debt issuance costs on the Company’s condensed consolidated statements of cash flows. For the three and nine months ended September 30, 2021, these adjustments totaled $0.3 million and $0.8 million, respectively. Additionally, the computation of diluted earnings per share is based on the incremental shares that would be outstanding assuming the exercise of warrants issued in conjunction with entering into the senior secured term loan credit agreement, to the extent such warrants remained outstanding as of September 30, 2021 (after giving effect to the settlement of a portion of such warrants on such date). The computation of diluted earnings per share is also based on the incremental shares that would be outstanding assuming the conversion of RSUs. The number of incremental shares is calculated by applying the treasury stock method. For the three and nine months ended September 30, 2021, the additional 1.8 million and 1.7 million shares, respectively attributable to the warrants were included in the computation of diluted earnings per share. For the three and nine months ended September 30, 2021, the additional 435,430 and 245,890, respectively, weighted-average unvested RSUs were included in the dilutive earnings per share denominator. The Company did not have any RSUs outstanding as of September 30, 2020. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Prior to the Internalization, the Company paid the Former Manager a base management fee equal to 1.5% of the Company’s equity, as defined in the management agreement with the Former Manager, or the Former Management Agreement, on an annualized basis. The Company incurred $4.0 million and $11.8 million, respectively, in management fees for the three and nine months ended September 30, 2020. The Company did not incur a management fee for the three and nine months ended September 30, 2021 because the Company was not managed by the Former Manager during the period as a result of the Internalization. In addition, incentive fees, if earned, were payable to the Former Manager, as defined in the Former Management Agreement. No incentive fees were incurred for the three and nine months ended September 30, 2021 and 2020. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Events subsequent to September 30, 2021 were evaluated through the date these condensed consolidated financial statements were issued and no other additional events were identified requiring further disclosure in these condensed consolidated financial statements other than as discussed below. See Note 7 - Senior Secured Term Loan Facilities and Warrants to Purchase Shares of Common Stock for details on the settlement of warrants to purchase shares of the Company’s common stock. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Consolidation and Basis of Presentation | Consolidation and Basis of Presentation The interim unaudited condensed consolidated financial statements of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission, or the SEC. Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles, or GAAP, have been condensed or omitted according to such SEC rules and regulations. However, management believes that the disclosures included in these interim condensed consolidated financial statements are adequate to make the information presented not misleading. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. In the opinion of management, all normal and recurring adjustments necessary to present fairly the financial condition of the Company at September 30, 2021 and results of operations for all periods presented have been made. The results of operations for the three and nine months ended September 30, 2021 should not be construed as indicative of the results to be expected for future periods or the full year. The unaudited condensed consolidated financial statements of the Company include the accounts of all subsidiaries; inter-company accounts and transactions have been eliminated. Certain prior period amounts have been reclassified to conform to the current period presentation. All entities in which the Company holds investments that are considered VIEs for financial reporting purposes were reviewed for consolidation under the applicable consolidation guidance. Whenever the Company has both the power to direct the activities of an entity that most significantly impact the entity’s performance, and the obligation to absorb losses or the right to receive benefits of the entity that could be significant, the Company consolidates the entity. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make a number of significant estimates. These include estimates of amount and timing of allowances for credit losses, fair value of certain assets and liabilities, and other estimates that affect the reported amounts of certain assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of certain revenues and expenses during the reported period. It is likely that changes in these estimates (e.g., valuation changes to the underlying collateral of loans due to changes in market capitalization rates, leasing, credit worthiness of major tenants, occupancy rates, availability of financing, exit plan, loan sponsorship, actions of other lenders, overall economic and capital markets conditions, the broader commercial real estate market, local geographic sub-markets or other factors) will occur in the near term. As of September 30, 2021, the COVID-19 |
Term Financing Facility | Term Financing Facility The Company finances certain of its loans held-for-investment through the use of a term financing facility. Borrowings under the term financing facility bear an interest rate of a specified margin over the one-month London Interbank Offered Rate, or LIBOR. The term financing facility financings are treated as collateralized financing transactions and are carried at their contractual amounts, as specified in the respective agreements. |
Recently Issued and/or Adopted Accounting Standards | Recently Issued and/or Adopted Accounting Standards Facilitation of the Effects of Reference Rate Reform on Financial Reporting In March 2020, the Financial Accounting Standards Board, or FASB, issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, or ASU No. 2020-04, which provides optional expedients and exceptions for applying GAAP to debt instruments, derivatives, and other contracts that reference LIBOR or other reference rates expected to be discontinued as a result of reference rate reform. This guidance is optional and may be elected through December 31, 2022 using a prospective application on all eligible contract modifications. The Company has loan agreements, and debt agreements that incorporate LIBOR as a referenced interest rate. It is difficult to predict what effect, if any, the phase-out of LIBOR and the use of alternative benchmarks may have on the Company’s business or on the overall financial markets. The Company has not adopted any of the optional expedients or exceptions through September 30, 2021, but will continue to evaluate the possible adoption of any such expedients or exceptions. Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity In August 2020, FASB issued ASU No. 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in an Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, or ASU No. 2020-06. The intention of ASU No. 2020-06 is to address the complexities in accounting for certain financial instruments with a debt and equity component. Under ASU No. 2020-06, the number of accounting models for convertible notes will be reduced and entities that issue convertible debt will be required to use the if-converted method for the computation of diluted "Earnings per share" under ASC 260. ASC 2020-06 is effective for fiscal years beginning after December 15, 2021 and may be adopted through either a modified retrospective method of transition or a fully retrospective method of transition. The Company is currently assessing the impact this guidance will have on its condensed consolidated financial statements. |
Loans Held-for-Investment, Ne_2
Loans Held-for-Investment, Net of Allowance for Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Schedule of Loans Held-for-Investment | The following tables summarize the Company’s loans held-for-investment by asset type, property type and geographic location as of September 30, 2021 and December 31, 2020: September 30, (dollars in thousands) Senior Loans (1) Mezzanine Loans B-Notes Total Unpaid principal balance $ 3,657,401 $ 1,387 $ 14,065 $ 3,672,853 Unamortized (discount) premium (67) — — (67) Unamortized net deferred origination fees (13,095) — — (13,095) Allowance for credit losses (40,897) (1,387) (3,196) (45,480) Carrying value $ 3,603,342 $ — $ 10,869 $ 3,614,211 Unfunded commitments $ 430,105 $ — $ — $ 430,105 Number of loans 98 1 1 100 Weighted average coupon 4.6 % 13.0 % 8.0 % 4.6 % Weighted average years to maturity (2) 1.0 4.1 5.3 1.0 December 31, (dollars in thousands) Senior Loans (1) Mezzanine Loans B-Notes Total Unpaid principal balance $ 3,915,833 $ 2,366 $ 14,235 $ 3,932,434 Unamortized (discount) premium (75) — — (75) Unamortized net deferred origination fees (17,890) — — (17,890) Allowance for credit losses (60,130) (2,366) (4,170) (66,666) Carrying value $ 3,837,738 $ — $ 10,065 $ 3,847,803 Unfunded commitments $ 503,726 $ — $ — $ 503,726 Number of loans 101 1 1 103 Weighted average coupon 5.1 % 13.0 % 8.0 % 5.1 % Weighted average years to maturity (2) 1.1 4.9 6.1 1.1 ____________________ (1) Loans primarily secured by a first priority lien on commercial real property and related personal property and also includes, when applicable, any companion subordinate loans. (2) Based on contractual maturity date. Certain loans are subject to contractual extension options with such conditions stipulated in the applicable loan documents. Actual maturities may differ from contractual maturities stated herein as certain borrowers may have the right to prepay with or without paying a prepayment fee. The Company may also extend contractual maturities in connection with certain loan modifications. |
Schedule of Loans Held-for-Investment by Property Type | (dollars in thousands) September 30, December 31, Property Type Carrying Value % of Loan Portfolio Carrying Value % of Loan Portfolio Office $ 1,663,478 46.0 % $ 1,720,705 44.7 % Multifamily 982,624 27.2 % 910,557 23.7 % Hotel 517,028 14.3 % 646,869 16.8 % Retail 340,265 9.4 % 332,218 8.6 % Industrial 89,456 2.5 % 196,677 5.1 % Other 21,360 0.6 % 40,777 1.1 % Total $ 3,614,211 100.0 % $ 3,847,803 100.0 % |
Schedule of Loans Held-for-Investment by Geographic Location | (dollars in thousands) September 30, December 31, Geographic Location Carrying Value % of Loan Portfolio Carrying Value % of Loan Portfolio Northeast $ 950,447 26.3 % $ 1,028,584 26.8 % Southwest 807,483 22.3 % 802,233 20.8 % West 630,826 17.5 % 682,236 17.7 % Midwest 608,102 16.8 % 712,675 18.5 % Southeast 617,353 17.1 % 622,075 16.2 % Total $ 3,614,211 100.0 % $ 3,847,803 100.0 % |
Rollforward of Loans Held-for-Investment | The following table summarizes activity related to loans held-for-investment, net of allowance for credit losses, for the three and nine months ended September 30, 2021 and 2020: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2021 2020 2021 2020 Balance at beginning of period $ 3,577,644 $ 4,290,047 $ 3,847,803 $ 4,226,212 Originations, additional fundings and capitalized deferred interest 325,597 57,617 565,212 317,630 Repayments (290,497) (184,723) (815,054) (290,838) Transfers to loans held-for-sale — (190,787) — (210,452) Net discount accretion (premium amortization) (2) — 9 16 (Increase) decrease in net deferred origination fees (3,566) 101 (5,905) (2,908) Amortization of net deferred origination fees 2,584 3,236 10,700 12,541 Benefit from (provision for) credit losses 2,451 3,371 11,446 (73,339) Balance at end of period $ 3,614,211 $ 3,978,862 $ 3,614,211 $ 3,978,862 |
Rollforward of Allowance for Credit Losses | The following table presents the changes for the three and nine months ended September 30, 2021 and 2020 in the allowance for credit losses on loans held-for-investment: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2021 2021 Balance at beginning of period $ 57,671 $ 66,666 (Benefit from) provision for credit losses (2,451) (11,446) Write-off (9,740) (9,740) Recoveries of amounts previously written off — — Balance at end of period $ 45,480 $ 45,480 Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2020 2020 Balance at beginning of period $ 76,710 $ 16,692 (Benefit from) provision for credit losses (3,371) 56,647 Write-offs — — Recoveries of amounts previously written off — — Balance at end of period $ 73,339 $ 73,339 |
Financing Receivable, Nonaccrual | The following table presents the carrying value of loans held-for-investment on nonaccrual status for the three and nine months ended September 30, 2021: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2021 2021 Nonaccrual loan carrying value at beginning of period $ 225,115 $ 17,835 Addition of nonaccrual loan carrying value $ — $ 207,280 Removal of nonaccrual loan carrying value $ (79,765) $ (79,765) Nonaccrual loan carrying value at end of period $ 145,350 $ 145,350 |
Schedule of Loans Held-for-Investment by Internal Risk Rating | The following table presents the number of loans, unpaid principal balance and carrying value by risk rating for loans held-for-investment as of September 30, 2021 and December 31, 2020: (dollars in thousands) September 30, December 31, Risk Rating Number of Loans Unpaid Principal Balance Carrying Value Number of Loans Unpaid Principal Balance Carrying Value 1 9 $ 281,201 $ 280,172 6 $ 183,369 $ 182,730 2 53 1,842,052 1,819,740 50 1,863,590 1,847,332 3 26 839,615 832,077 29 1,055,782 1,026,662 4 10 541,891 536,872 17 762,636 732,310 5 2 168,094 145,350 1 67,057 58,769 Total 100 $ 3,672,853 $ 3,614,211 103 $ 3,932,434 $ 3,847,803 |
Variable Interest Entities an_2
Variable Interest Entities and Securitized Debt Obligations (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The following table presents a summary of the assets and liabilities of all VIEs consolidated on the Company’s condensed consolidated balance sheets as of September 30, 2021 and December 31, 2020: (in thousands) September 30, December 31, Loans held-for-investment $ 1,802,296 $ 1,200,479 Allowance for credit losses (18,067) (15,914) Loans held-for-investment, net 1,784,229 1,184,565 Cash and cash equivalents — — Restricted cash 20,000 62,804 Other assets 19,944 8,563 Total Assets $ 1,824,173 $ 1,255,932 Securitized debt obligations $ 1,356,429 $ 927,128 Other liabilities 1,246 1,092 Total Liabilities $ 1,357,675 $ 928,220 |
Schedule Of Securitized Debt Obligations | The following table details our CRE CLO securitized debt obligations: (in thousands) September 30, Securitized Debt Obligations Principal Balance Carrying Value Wtd. Avg. Yield/Cost (1) GPMT 2021-FL3 CRE CLO Collateral assets (2) $ 768,796 $ 763,848 L+3.8% Financing provided 630,818 627,580 L+1.7% GPMT 2019-FL2 CRE CLO Collateral assets 734,111 719,822 L+4.0% Financing provided 572,001 570,597 L+1.7% GPMT 2018-FL1 CRE CLO Collateral assets 324,651 320,558 L+5.1% Financing provided 158,253 158,252 L+2.3% Total Collateral assets $ 1,827,558 $ 1,804,228 L+4.1% Financing provided $ 1,361,072 $ 1,356,429 L+1.8% ____________________ (1) Calculations of all in yield on collateral assets at origination are based on a number of assumptions (some or all of which may not occur) and are expressed as monthly equivalent yields that include net origination fees and exit fees and exclude future fundings and any potential or completed loan amendments or modifications. Calculations of cost of funds is the weighted average coupon of the CRE CLO, exclusive of any CRE CLO issuance costs. (2) Includes $20 million of restricted cash. |
Secured Financing Agreements (T
Secured Financing Agreements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Collateralized Borrowings | The following tables summarize details of the Company’s borrowings outstanding on its secured financing agreements as of September 30, 2021 and December 31, 2020: September 30, 2021 (in thousands) Maturity Date (1) Amount Outstanding Unused Capacity Total Capacity Carrying Value of Collateral Weighted Average Borrowing Rate Repurchase facilities: Morgan Stanley Bank (2) June 28, 2022 $ 277,534 $ 222,466 $ 500,000 $ 436,329 2.2 % Goldman Sachs Bank USA (3) July 13, 2023 — 250,000 250,000 10,352 — % JPMorgan Chase Bank June 28, 2022 155,214 294,786 450,000 244,233 2.2 % Citibank January 9, 2023 412,274 87,726 500,000 535,684 1.7 % Wells Fargo Bank (4) June 28, 2022 71,736 28,264 100,000 109,865 2.1 % Total/Weighted Average $ 916,758 $ 883,242 $ 1,800,000 $ 1,336,463 Asset-specific financings: CIBC Bank USA Term Matched $ 44,752 $ 105,248 $ 150,000 $ 55,829 1.8 % Term financing facility: Goldman Sachs Bank USA (5) February 14, 2025 $ 127,867 $ — $ 127,867 $ 324,991 3.7 % December 31, 2020 (in thousands) Maturity Date (1) Amount Outstanding Unused Capacity Total Capacity Carrying Value of Collateral Weighted Average Borrowing Rate Repurchase facilities: Morgan Stanley Bank June 28, 2021 $ 435,719 $ 164,281 $ 600,000 $ 657,066 2.3 % Goldman Sachs Bank USA May 2, 2021 395,990 104,010 500,000 593,625 2.5 % JPMorgan Chase Bank June 28, 2022 361,797 88,203 450,000 536,758 2.5 % Citibank January 9, 2023 386,049 113,951 500,000 504,236 1.8 % Wells Fargo Bank June 28, 2021 129,320 145,680 275,000 185,282 2.1 % Total/Weighted Average $ 1,708,875 $ 616,125 $ 2,325,000 $ 2,476,967 Asset-specific financings: CIBC Bank USA Term Matched $ 123,091 $ 26,909 $ 150,000 $ 152,929 2.5 % ____________________ (1) The facilities are set to mature on the stated maturity date, unless extended pursuant to their terms. (2) As of September 30, 2021, the Company retained an option to increase the maximum facility capacity amount up to $600 million, subject to customary terms and conditions. (3) As of September 30, 2021, the Company retained options to increase the maximum facility capacity amount up to $350 million, subject to customary terms and conditions. (4) As of September 30, 2021, the Company retained options to increase the maximum facility capacity amount up to $200 million, subject to customary terms and conditions. (5) Amount outstanding includes unamortized debt issuance costs. |
Schedule of Collateralized Borrowings by Maturity | At September 30, 2021, the Company’s borrowings outstanding on its secured financing facilities had contractual maturities as follows: September 30, 2021 (dollars in thousands) Repurchase Facilities Asset-Specific Financings Term Financing Facility (1) Total Amount Outstanding 2021 $ — 44,752 $ — $ 44,752 2022 504,484 — — 504,484 2023 412,274 — — 412,274 2024 — — — — 2025 — — 127,867 127,867 Thereafter — — — — Total $ 916,758 $ 44,752 $ 127,867 $ 1,089,377 ____________________ (1) Amount outstanding includes unamortized debt issuance costs. |
Schedule of Repurchase Agreement Counterparties with Whom Repurchase Agreements Exceed 10 Percent of Stockholders' Equity | The following table summarizes certain characteristics of the Company’s repurchase facilities and counterparty concentration at September 30, 2021 and December 31, 2020: September 30, 2021 December 31, 2020 (dollars in thousands) Amount Outstanding Net Counterparty Exposure (1) Percent of Equity Weighted Average Years to Maturity Amount Outstanding Net Counterparty Exposure (1) Percent of Equity Weighted Average Years to Maturity Morgan Stanley Bank $ 277,534 $ 163,245 18 % 0.74 $ 435,719 $ 230,815 25 % 0.49 JPMorgan Chase Bank 155,214 94,929 10 % 0.74 361,797 187,282 20 % 1.50 Goldman Sachs Bank USA — 6,103 1 % 1.78 395,990 203,297 22 % 0.33 Citibank 412,274 131,034 14 % 1.28 386,049 124,913 13 % 2.02 Wells Fargo Bank 71,736 39,112 4 % 0.74 129,320 57,483 6 % 0.49 Total $ 916,758 $ 434,423 $ 1,708,875 $ 803,790 ____________________ (1) Represents the excess of the carrying amount or market value of the loans held-for-investment pledged as collateral for repurchase facilities, including accrued interest plus any cash on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest. |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Interest Expense, Debt | The following table details the interest expense related to the Convertible Senior Notes: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2021 2020 2021 2020 Cash coupon $ 4,119 $ 4,119 $ 12,357 $ 12,357 Amortization of issuance costs 437 410 1,261 1,213 Total interest expense $ 4,556 $ 4,529 $ 13,618 $ 13,570 |
Schedule of Long-term Debt Instruments | The following table details the carrying value of the Convertible Senior Notes: December 2022 Convertible Senior Notes September 30, December 31, (in thousands) 2021 2020 Principal outstanding $ 143,750 $ 143,750 Less: Unamortized issuance costs (1,106) (1,774) Net carrying value $ 142,644 $ 141,976 October 2023 Convertible Senior Notes September 30, December 31, (in thousands) 2021 2020 Principal outstanding $ 131,600 $ 131,600 Less: Unamortized issuance costs (1,732) (2,326) Net carrying value $ 129,868 $ 129,274 The table below summarizes the net carrying amount of the senior secured term loan facilities: September 30, December 31, (in thousands) 2021 2020 Principal outstanding $ 225,000 $ 225,000 Less: Unamortized debt discount and issuance costs (16,215) (18,552) Net carrying value $ 208,785 $ 206,448 |
Senior Secured Term Loan Faci_2
Senior Secured Term Loan Facilities and Warrants to Purchase Shares of Common Stock (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The following table details the carrying value of the Convertible Senior Notes: December 2022 Convertible Senior Notes September 30, December 31, (in thousands) 2021 2020 Principal outstanding $ 143,750 $ 143,750 Less: Unamortized issuance costs (1,106) (1,774) Net carrying value $ 142,644 $ 141,976 October 2023 Convertible Senior Notes September 30, December 31, (in thousands) 2021 2020 Principal outstanding $ 131,600 $ 131,600 Less: Unamortized issuance costs (1,732) (2,326) Net carrying value $ 129,868 $ 129,274 The table below summarizes the net carrying amount of the senior secured term loan facilities: September 30, December 31, (in thousands) 2021 2020 Principal outstanding $ 225,000 $ 225,000 Less: Unamortized debt discount and issuance costs (16,215) (18,552) Net carrying value $ 208,785 $ 206,448 |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported on the Company’s condensed consolidated balance sheets as of September 30, 2021 and December 31, 2020 that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows: (in thousands) September 30, December 31, Cash and cash equivalents $ 154,916 $ 261,419 Restricted cash 20,602 67,774 Total cash, cash equivalents and restricted cash $ 175,518 $ 329,193 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | The following table presents the carrying values and estimated fair values of assets and liabilities that are required to be recorded or disclosed at fair value at September 30, 2021 and December 31, 2020: September 30, 2021 December 31, 2020 (in thousands) Carrying Value Fair Value Carrying Value Fair Value Assets Loans held-for-investment, net of allowance for credit losses $ 3,614,211 $ 3,648,115 $ 3,847,803 $ 3,867,286 Cash and cash equivalents $ 154,916 $ 154,916 $ 261,419 $ 261,419 Restricted cash $ 20,602 $ 20,602 $ 67,774 $ 67,774 Liabilities Repurchase facilities $ 916,758 $ 916,758 $ 1,708,875 $ 1,708,875 Securitized debt obligations $ 1,356,429 $ 1,360,354 $ 927,128 $ 916,701 Asset-specific financings $ 44,752 $ 44,752 $ 123,091 $ 123,091 Term financing facility $ 127,867 $ 127,867 $ — $ — Convertible senior notes $ 272,512 $ 275,141 $ 271,250 $ 257,411 Senior secured term loan facilities $ 208,785 $ 208,785 $ 206,448 $ 206,448 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Schedule of Dividends Declared | The following table presents cash dividends declared by the Company’s board of directors on its common stock from December 31, 2019 through September 30, 2021: Declaration Date Record Date Payment Date Cash Dividend Per Share September 15, 2021 October 1, 2021 October 19, 2021 $ 0.25 June 15, 2021 July 1, 2021 July 19, 2021 $ 0.25 March 18, 2021 April 1, 2021 April 19, 2021 $ 0.25 December 18, 2020 December 31, 2020 January 22, 2021 $ 0.25 December 18, 2020 December 31, 2020 January 22, 2021 $ 0.20 September 28, 2020 October 8, 2020 October 19, 2020 $ 0.20 |
Equity Incentive Plan (Tables)
Equity Incentive Plan (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The following table summarizes the grants, vesting and forfeitures of restricted common stock and RSUs for the nine months ended September 30, 2021: Restricted Stock RSUs PSUs Weighted Average Grant Date Fair Market Value Outstanding at December 31, 2020 569,535 403,903 — $ 14.93 Granted — 519,562 — 9.77 Vested (137,728) — — 18.46 Forfeited (97,425) — — 18.43 Outstanding at March 31, 2021 334,382 923,465 — $ 11.32 Granted — 44,853 — 14.77 Vested (52,092) (1,048) — 5.12 Forfeited (17,628) (3,957) — 5.93 Outstanding at June 30, 2021 264,662 963,313 — $ 11.95 Granted — — 347,896 14.15 Vested — — — — Forfeited — — — — Outstanding at September 30, 2021 264,662 963,313 347,896 12.44 Below is a summary of restricted stock and RSU vesting dates as of September 30, 2021: Vesting Year Restricted Stock RSUs PSUs Total Awards 2021 — 30,030 — 30,030 2022 172,077 218,034 — 390,111 2023 92,585 173,187 347,896 613,668 2024 — 173,194 — 173,194 2025 — 368,868 — 368,868 Total 264,662 963,313 347,896 1,575,871 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents a reconciliation of the earnings and shares used in calculating basic and diluted earnings per share for the three and nine months ended September 30, 2021 and 2020: Three Months Ended Nine Months Ended September 30, September 30, (in thousands, except share data) 2021 2020 2021 2020 Numerator: Net income (loss) attributable to common stockholders - basic $ 18,605 $ (24,691) $ 60,815 $ (63,665) Interest expense attributable to convertible notes — — 13,618 — Net income (loss) attributable to common stockholders - diluted $ 18,605 $ (24,691) $ 74,433 $ (63,665) Denominator: Weighted average common shares outstanding 54,188,884 54,624,739 54,537,196 54,561,411 Weighted average restricted stock shares 264,662 580,343 327,260 578,752 Basic weighted average shares outstanding 54,453,546 55,205,082 54,864,456 55,140,163 Effect of dilutive shares issued in an assumed conversion of the convertible senior notes — — 14,065,946 — Effect of dilutive shares issued in an assumed conversion of RSUs as additional shares 435,430 — 245,890 — Effect of dilutive shares issued in an assumed exercise of warrants issued in conjunction with the senior secured term loan facilities 1,846,302 — 1,726,453 — Diluted weighted average shares outstanding 56,735,278 55,205,082 70,902,745 55,140,163 Earnings (loss) per share Basic $ 0.34 $ (0.45) $ 1.11 $ (1.15) Diluted $ 0.33 $ (0.45) $ 1.05 $ (1.15) |
Organization and Operations (De
Organization and Operations (Details) | 9 Months Ended |
Sep. 30, 2021segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 1 |
Loans Held-for-Investment, Ne_3
Loans Held-for-Investment, Net of Allowance for Credit Losses - Loans Held-for-Investment (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2021USD ($)loan | Dec. 31, 2020USD ($)loan | Jun. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Unpaid principal balance | $ 3,672,853 | $ 3,932,434 | ||||
Unamortized (discount) premium | (67) | (75) | ||||
Unamortized net deferred origination fees | (13,095) | (17,890) | ||||
Allowance for credit losses | (45,480) | (66,666) | $ (57,671) | $ (73,339) | $ (76,710) | $ (16,692) |
Loans held-for-investment, net | 3,614,211 | 3,847,803 | $ 3,577,644 | $ 3,978,862 | $ 4,290,047 | $ 4,226,212 |
Unfunded commitments | $ 430,105 | $ 503,726 | ||||
Number of loans | loan | 100 | 103 | ||||
Weighted average coupon (as a percent) | 4.60% | 5.10% | ||||
Weighted average years to maturity (in years) | 1 year | 1 year 1 month 6 days | ||||
Senior Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Unpaid principal balance | $ 3,657,401 | $ 3,915,833 | ||||
Unamortized (discount) premium | (67) | (75) | ||||
Unamortized net deferred origination fees | (13,095) | (17,890) | ||||
Allowance for credit losses | (40,897) | (60,130) | ||||
Loans held-for-investment, net | 3,603,342 | 3,837,738 | ||||
Unfunded commitments | $ 430,105 | $ 503,726 | ||||
Number of loans | loan | 98 | 101 | ||||
Weighted average coupon (as a percent) | 4.60% | 5.10% | ||||
Weighted average years to maturity (in years) | 1 year | 1 year 1 month 6 days | ||||
Mezzanine Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Unpaid principal balance | $ 1,387 | $ 2,366 | ||||
Unamortized (discount) premium | 0 | 0 | ||||
Unamortized net deferred origination fees | 0 | 0 | ||||
Allowance for credit losses | (1,387) | (2,366) | ||||
Loans held-for-investment, net | 0 | 0 | ||||
Unfunded commitments | $ 0 | $ 0 | ||||
Number of loans | loan | 1 | 1 | ||||
Weighted average coupon (as a percent) | 13.00% | 13.00% | ||||
Weighted average years to maturity (in years) | 4 years 1 month 6 days | 4 years 10 months 24 days | ||||
B-Notes | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Unpaid principal balance | $ 14,065 | $ 14,235 | ||||
Unamortized (discount) premium | 0 | 0 | ||||
Unamortized net deferred origination fees | 0 | 0 | ||||
Allowance for credit losses | (3,196) | (4,170) | ||||
Loans held-for-investment, net | 10,869 | 10,065 | ||||
Unfunded commitments | $ 0 | $ 0 | ||||
Number of loans | loan | 1 | 1 | ||||
Weighted average coupon (as a percent) | 8.00% | 8.00% | ||||
Weighted average years to maturity (in years) | 5 years 3 months 18 days | 6 years 1 month 6 days |
Loans Held-for-Investment, Ne_4
Loans Held-for-Investment, Net of Allowance for Credit Losses (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Carrying Value | $ 3,614,211 | $ 3,577,644 | $ 3,847,803 | $ 3,978,862 | $ 4,290,047 | $ 4,226,212 |
Percentage of loan portfolio (as a percent) | 100.00% | 100.00% | ||||
Office | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Carrying Value | $ 1,663,478 | $ 1,720,705 | ||||
Percentage of loan portfolio (as a percent) | 46.00% | 44.70% | ||||
Multifamily | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Carrying Value | $ 982,624 | $ 910,557 | ||||
Percentage of loan portfolio (as a percent) | 27.20% | 23.70% | ||||
Hotel | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Carrying Value | $ 517,028 | $ 646,869 | ||||
Percentage of loan portfolio (as a percent) | 14.30% | 16.80% | ||||
Retail | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Carrying Value | $ 340,265 | $ 332,218 | ||||
Percentage of loan portfolio (as a percent) | 9.40% | 8.60% | ||||
Industrial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Carrying Value | $ 89,456 | $ 196,677 | ||||
Percentage of loan portfolio (as a percent) | 2.50% | 5.10% | ||||
Other | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Carrying Value | $ 21,360 | $ 40,777 | ||||
Percentage of loan portfolio (as a percent) | 0.60% | 1.10% |
Loans Held-for-Investment, Ne_5
Loans Held-for-Investment, Net of Allowance for Credit Losses - by Geographic Location (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Carrying Value | $ 3,614,211 | $ 3,577,644 | $ 3,847,803 | $ 3,978,862 | $ 4,290,047 | $ 4,226,212 |
Percentage of loan portfolio (as a percent) | 100.00% | 100.00% | ||||
Northeast | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Carrying Value | $ 950,447 | $ 1,028,584 | ||||
Percentage of loan portfolio (as a percent) | 26.30% | 26.80% | ||||
Southwest | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Carrying Value | $ 807,483 | $ 802,233 | ||||
Percentage of loan portfolio (as a percent) | 22.30% | 20.80% | ||||
West | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Carrying Value | $ 630,826 | $ 682,236 | ||||
Percentage of loan portfolio (as a percent) | 17.50% | 17.70% | ||||
Midwest | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Carrying Value | $ 608,102 | $ 712,675 | ||||
Percentage of loan portfolio (as a percent) | 16.80% | 18.50% | ||||
Southeast | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Carrying Value | $ 617,353 | $ 622,075 | ||||
Percentage of loan portfolio (as a percent) | 17.10% | 16.20% |
Loans Held-for-Investment, Ne_6
Loans Held-for-Investment, Net of Allowance for Credit Losses - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans held-for-investment, net of allowance for credit losses | $ 3,614,211 | $ 3,978,862 | $ 3,614,211 | $ 3,978,862 | $ 3,577,644 | $ 3,847,803 | $ 4,290,047 | $ 4,226,212 |
Allowance for loan losses | 45,480 | 73,339 | 45,480 | 73,339 | $ 57,671 | 66,666 | $ 76,710 | $ 16,692 |
Financing receivable, credit loss, expense (reversal), net of adjustment | (2,451) | (3,371) | (11,446) | 73,339 | ||||
(Benefit from) provision for credit losses | (2,451) | (3,371) | (11,446) | 56,647 | ||||
Repayments | (290,497) | (184,723) | (815,054) | (290,838) | ||||
Unpaid principal balance | 3,659,691 | $ 3,659,691 | 3,914,469 | |||||
Threshold period delinquent for placement of financing receivable on nonaccrual status (in days) | 90 days | |||||||
Write-off | 9,740 | 0 | $ 9,740 | 0 | ||||
(Loss) on sale of financing receivable | (9,700) | |||||||
Other liabilities | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
(Benefit from) provision for credit losses | 1,900 | |||||||
Collateral pledged | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans held-for-investment, net of allowance for credit losses | 3,500,000 | 3,500,000 | 3,800,000 | |||||
Minneapolis, MN | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Financing receivable, nonaccrual | 68,100 | 68,100 | ||||||
Mixed Use Property | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Financing receivable, nonaccrual | 22,000 | 22,000 | ||||||
Mixed Use Property | Financial Asset, Past Due | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Unpaid principal balance | 1,600 | 1,600 | ||||||
Risk Rating 5 | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans held-for-investment, net of allowance for credit losses | 145,350 | $ 0 | 145,350 | $ 0 | 58,769 | |||
Allowance for loan losses | 14,100 | 14,100 | ||||||
Risk Rating 5 | Washington D.C. | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Allowance for loan losses | 8,000 | 8,000 | ||||||
Unpaid principal balance | 54,000 | 54,000 | ||||||
First mortgage | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans held-for-investment, net of allowance for credit losses | 3,603,342 | 3,603,342 | 3,837,738 | |||||
Allowance for loan losses | 40,897 | 40,897 | $ 60,130 | |||||
First mortgage | Risk Rating 5 | Pasadena, CA | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Unpaid principal balance | 114,100 | 114,100 | ||||||
Unfunded loan commitment | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
(Benefit from) provision for credit losses | 3,200 | |||||||
Non-accrual loan | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans held-for-investment, net of allowance for credit losses | 145,400 | 145,400 | ||||||
(Benefit from) provision for credit losses | (3,300) | |||||||
Unpaid principal balance | 168,100 | 168,100 | ||||||
Non-accrual loan | Pasadena, CA | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Interest Income, Write-offs | 300 | |||||||
Non-accrual loan | Washington D.C. | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Interest Income, Write-offs | 800 | |||||||
Senior Floating Rate Loan | Minneapolis, MN | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Financing receivable, nonaccrual | $ 45,300 | $ 45,300 |
Loans Held-for-Investment, Ne_7
Loans Held-for-Investment, Net of Allowance for Credit Losses - Roll Forward of Loans Held-for-Investment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Loans Held-for-Investment [Roll Forward] | ||||
Balance at beginning of period | $ 3,577,644 | $ 4,290,047 | $ 3,847,803 | $ 4,226,212 |
Originations, additional fundings and capitalized deferred interest | 325,597 | 57,617 | 565,212 | 317,630 |
Repayments | (290,497) | (184,723) | (815,054) | (290,838) |
Transfer of Portfolio Loans and Leases to Held-for-sale | 0 | (190,787) | 0 | (210,452) |
Net discount accretion (premium amortization) | (2) | 0 | 9 | 16 |
(Increase) decrease in net deferred origination fees | (3,566) | 101 | (5,905) | (2,908) |
Amortization of net deferred origination fees | 2,584 | 3,236 | 10,700 | 12,541 |
Benefit from (provision for) credit losses | 2,451 | 3,371 | 11,446 | (73,339) |
Balance at end of period | $ 3,614,211 | $ 3,978,862 | $ 3,614,211 | $ 3,978,862 |
Loans Held-for-Investment, Ne_8
Loans Held-for-Investment, Net of Allowance for Credit Losses - Roll Forward of Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | $ 57,671 | $ 76,710 | $ 66,666 | $ 16,692 |
(Benefit from) provision for credit losses | (2,451) | (3,371) | (11,446) | 56,647 |
Write-off | (9,740) | 0 | (9,740) | 0 |
Recoveries of amounts previously written off | 0 | 0 | 0 | 0 |
Balance at end of period | $ 45,480 | $ 73,339 | $ 45,480 | $ 73,339 |
Loans Held-for-Investment, Ne_9
Loans Held-for-Investment, Net of Allowance for Credit Losses - Nonaccrual Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
Financing Receivables, Held for Investment, Nonaccrual [Roll Forward] | ||
Nonaccrual loan carrying value at beginning of period | $ 225,115 | $ 17,835 |
Addition of nonaccrual loan carrying value | 0 | 207,280 |
Removal of nonaccrual loan carrying value | (79,765) | (79,765) |
Nonaccrual loan carrying value at end of period | $ 145,350 | $ 145,350 |
Loans Held-for-Investment, N_10
Loans Held-for-Investment, Net of Allowance for Credit Losses - Internal Risk Rating (Details) $ in Thousands | Sep. 30, 2021USD ($)loan | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($)loan | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | loan | 100 | 103 | ||||
Unpaid principal balance | $ 3,672,853 | $ 3,932,434 | ||||
Current year | 446,658 | $ 127,133 | ||||
Year one | 144,455 | 1,593,466 | ||||
Year two | 1,418,365 | 1,191,860 | ||||
Year three | 830,851 | 722,892 | ||||
Year four | 438,442 | 136,636 | ||||
Year five | 138,788 | |||||
Prior | 196,652 | 206,875 | ||||
Loans held-for-investment, net | $ 3,614,211 | $ 3,577,644 | $ 3,847,803 | 3,978,862 | $ 4,290,047 | $ 4,226,212 |
Risk Rating 1 | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | loan | 9 | 6 | ||||
Unpaid principal balance | $ 281,201 | $ 183,369 | ||||
Current year | 0 | 0 | ||||
Year one | 0 | 18,269 | ||||
Year two | 171,163 | 90,472 | ||||
Year three | 75,601 | 0 | ||||
Year four | 0 | 33,300 | ||||
Year five | 33,408 | |||||
Prior | 0 | 0 | ||||
Loans held-for-investment, net | $ 280,172 | $ 182,730 | 142,041 | |||
Risk Rating 2 | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | loan | 53 | 50 | ||||
Unpaid principal balance | $ 1,842,052 | $ 1,863,590 | ||||
Current year | 402,170 | 74,375 | ||||
Year one | 86,214 | 1,050,044 | ||||
Year two | 841,954 | 591,444 | ||||
Year three | 340,839 | 284,263 | ||||
Year four | 59,246 | 103,336 | ||||
Year five | 37,389 | |||||
Prior | 51,928 | 54,078 | ||||
Loans held-for-investment, net | $ 1,819,740 | $ 1,847,332 | 2,157,540 | |||
Risk Rating 3 | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | loan | 26 | 29 | ||||
Unpaid principal balance | $ 839,615 | $ 1,055,782 | ||||
Current year | 44,488 | 11,827 | ||||
Year one | 58,241 | 359,028 | ||||
Year two | 238,699 | 259,642 | ||||
Year three | 241,541 | 257,661 | ||||
Year four | 156,008 | 0 | ||||
Year five | 67,991 | |||||
Prior | 25,109 | 11,193 | ||||
Loans held-for-investment, net | $ 832,077 | $ 1,026,662 | 899,351 | |||
Risk Rating 4 | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | loan | 10 | 17 | ||||
Unpaid principal balance | $ 541,891 | $ 762,636 | ||||
Current year | 0 | 40,931 | ||||
Year one | 0 | 166,125 | ||||
Year two | 166,549 | 250,302 | ||||
Year three | 73,375 | 180,968 | ||||
Year four | 177,333 | 0 | ||||
Year five | 0 | |||||
Prior | 119,615 | 141,604 | ||||
Loans held-for-investment, net | $ 536,872 | $ 732,310 | 779,930 | |||
Risk Rating 5 | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | loan | 2 | 1 | ||||
Unpaid principal balance | $ 168,094 | $ 67,057 | ||||
Current year | 0 | 0 | ||||
Year one | 0 | 0 | ||||
Year two | 0 | 0 | ||||
Year three | 99,495 | 0 | ||||
Year four | 45,855 | 0 | ||||
Year five | 0 | |||||
Prior | 0 | 0 | ||||
Loans held-for-investment, net | $ 145,350 | $ 58,769 | $ 0 |
Variable Interest Entities an_3
Variable Interest Entities and Securitized Debt Obligations (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | |
Variable Interest Entity [Line Items] | |||
Total Assets | [1] | $ 3,899,190 | $ 4,219,648 |
Total Liabilities | [1] | 2,965,956 | 3,284,802 |
Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Total Assets | 1,824,173 | 1,255,932 | |
Total Liabilities | 1,357,675 | 928,220 | |
Variable Interest Entity, Primary Beneficiary | Loans held-for-investment | |||
Variable Interest Entity [Line Items] | |||
Total Assets | 1,802,296 | 1,200,479 | |
Variable Interest Entity, Primary Beneficiary | Allowance for credit losses | |||
Variable Interest Entity [Line Items] | |||
Total Assets | 18,067 | 15,914 | |
Variable Interest Entity, Primary Beneficiary | Loans held-for-investment, net | |||
Variable Interest Entity [Line Items] | |||
Total Assets | 1,784,229 | 1,184,565 | |
Variable Interest Entity, Primary Beneficiary | Cash and cash equivalents | |||
Variable Interest Entity [Line Items] | |||
Total Assets | 0 | 0 | |
Variable Interest Entity, Primary Beneficiary | Restricted cash | |||
Variable Interest Entity [Line Items] | |||
Total Assets | 20,000 | 62,804 | |
Variable Interest Entity, Primary Beneficiary | Other assets | |||
Variable Interest Entity [Line Items] | |||
Total Assets | 19,944 | 8,563 | |
Variable Interest Entity, Primary Beneficiary | Securitized debt obligations | |||
Variable Interest Entity [Line Items] | |||
Total Liabilities | 1,356,429 | 927,128 | |
Variable Interest Entity, Primary Beneficiary | Other liabilities | |||
Variable Interest Entity [Line Items] | |||
Total Liabilities | $ 1,246 | $ 1,092 | |
[1] | The condensed consolidated balance sheets include assets of consolidated variable interest entities, or VIEs, that can only be used to settle obligations of these VIEs, and liabilities of the consolidated VIEs for which creditors do not have recourse to Granite Point Mortgage Trust Inc. At September 30, 2021 and December 31, 2020, assets of the VIEs totaled $1,824,173 and $1,255,932, respectively, and liabilities of the VIEs totaled $1,357,675 and $928,220, respectively. See Note 4 - Variable Interest Entities and Securitized Debt Obligations for additional information. |
Variable Interest Entities an_4
Variable Interest Entities and Securitized Debt Obligations - Securitized Debt Obligations (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Carrying Value | $ 1,356,429 | $ 927,128 |
Collateral assets (2) | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Principal Balance | 1,827,558 | |
Carrying Value | $ 1,804,228 | |
Weighted average interest rate of securitized debt obligations outstanding (as a percent) | 4.10% | |
Collateral assets (2) | GPMT 2021-FL3 CRE CLO | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Principal Balance | $ 768,796 | |
Carrying Value | $ 763,848 | |
Weighted average interest rate of securitized debt obligations outstanding (as a percent) | 3.80% | |
Restricted cash | $ 20,000 | |
Collateral assets (2) | GPMT 2019-FL2 CRE CLO | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Principal Balance | 734,111 | |
Carrying Value | $ 719,822 | |
Weighted average interest rate of securitized debt obligations outstanding (as a percent) | 4.00% | |
Collateral assets (2) | GPMT 2018-FL1 CRE CLO | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Principal Balance | $ 324,651 | |
Carrying Value | $ 320,558 | |
Weighted average interest rate of securitized debt obligations outstanding (as a percent) | 5.10% | |
Financing provided | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Principal Balance | $ 1,361,072 | |
Carrying Value | $ 1,356,429 | |
Weighted average interest rate of securitized debt obligations outstanding (as a percent) | 1.80% | |
Financing provided | GPMT 2021-FL3 CRE CLO | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Principal Balance | $ 630,818 | |
Carrying Value | $ 627,580 | |
Weighted average interest rate of securitized debt obligations outstanding (as a percent) | 1.70% | |
Financing provided | GPMT 2019-FL2 CRE CLO | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Principal Balance | $ 572,001 | |
Carrying Value | $ 570,597 | |
Weighted average interest rate of securitized debt obligations outstanding (as a percent) | 1.70% | |
Financing provided | GPMT 2018-FL1 CRE CLO | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Principal Balance | $ 158,253 | |
Carrying Value | $ 158,252 | |
Weighted average interest rate of securitized debt obligations outstanding (as a percent) | 2.30% |
Secured Financing Agreements (D
Secured Financing Agreements (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Line of Credit Facility [Line Items] | ||
Repurchase facilities | $ 916,758,000 | $ 1,708,875,000 |
Asset-specific financings | 44,752,000 | 123,091,000 |
Term financing facility | 127,867,000 | 0 |
Unused Capacity | 883,242,000 | 616,125,000 |
Total Capacity | 1,800,000,000 | 2,325,000,000 |
Carrying Value of Collateral | 1,336,463,000 | 2,476,967,000 |
Goldman Sachs Bank USA | ||
Line of Credit Facility [Line Items] | ||
Term financing facility | 127,867,000 | |
Unused Capacity | 0 | |
Total Capacity | 127,867,000 | |
Goldman Sachs Bank USA | Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Carrying Value of Collateral | $ 324,991,000 | |
Weighted Average Borrowing Rate (as a percent) | 3.70% | |
CIBC Bank USA | ||
Line of Credit Facility [Line Items] | ||
Asset-specific financings | $ 44,752,000 | 123,091,000 |
Unused Capacity | 105,248,000 | 26,909,000 |
Total Capacity | 150,000,000 | 150,000,000 |
CIBC Bank USA | Secured Debt | ||
Line of Credit Facility [Line Items] | ||
Carrying Value of Collateral | $ 55,829,000 | $ 152,929,000 |
Weighted Average Borrowing Rate (as a percent) | 1.80% | 2.50% |
Loans held-for-investment | Morgan Stanley Bank | ||
Line of Credit Facility [Line Items] | ||
Repurchase facilities | $ 277,534,000 | $ 435,719,000 |
Unused Capacity | 222,466,000 | 164,281,000 |
Total Capacity | 500,000,000 | 600,000,000 |
Carrying Value of Collateral | $ 436,329,000 | $ 657,066,000 |
Weighted Average Borrowing Rate (as a percent) | 2.20% | 2.30% |
Maximum capacity under collateralized borrowings upon exercise of option to increase | $ 600,000,000 | |
Loans held-for-investment | Goldman Sachs Bank USA | ||
Line of Credit Facility [Line Items] | ||
Repurchase facilities | 0 | $ 395,990,000 |
Unused Capacity | 250,000,000 | 104,010,000 |
Total Capacity | 250,000,000 | 500,000,000 |
Carrying Value of Collateral | $ 10,352,000 | $ 593,625,000 |
Weighted Average Borrowing Rate (as a percent) | 0.00% | 2.50% |
Maximum capacity under collateralized borrowings option to increase | $ 350,000,000 | |
Loans held-for-investment | JPMorgan Chase Bank | ||
Line of Credit Facility [Line Items] | ||
Repurchase facilities | 155,214,000 | $ 361,797,000 |
Unused Capacity | 294,786,000 | 88,203,000 |
Total Capacity | 450,000,000 | 450,000,000 |
Carrying Value of Collateral | $ 244,233,000 | $ 536,758,000 |
Weighted Average Borrowing Rate (as a percent) | 2.20% | 2.50% |
Loans held-for-investment | Citibank | ||
Line of Credit Facility [Line Items] | ||
Repurchase facilities | $ 412,274,000 | $ 386,049,000 |
Unused Capacity | 87,726,000 | 113,951,000 |
Total Capacity | 500,000,000 | 500,000,000 |
Carrying Value of Collateral | $ 535,684,000 | $ 504,236,000 |
Weighted Average Borrowing Rate (as a percent) | 1.70% | 1.80% |
Loans held-for-investment | Wells Fargo Bank | ||
Line of Credit Facility [Line Items] | ||
Repurchase facilities | $ 71,736,000 | $ 129,320,000 |
Unused Capacity | 28,264,000 | 145,680,000 |
Total Capacity | 100,000,000 | 275,000,000 |
Carrying Value of Collateral | $ 109,865,000 | $ 185,282,000 |
Weighted Average Borrowing Rate (as a percent) | 2.10% | 2.10% |
Maximum capacity under collateralized borrowings upon exercise of option to increase | $ 200,000,000 |
Secured Financing Agreements -
Secured Financing Agreements - Borrowings by Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase facilities | $ 916,758 | $ 1,708,875 |
Asset-specific financings | 44,752 | $ 123,091 |
Term Financing Facility (1) | 127,867 | |
Total Amount Outstanding | 1,089,377 | |
2021 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase facilities | 0 | |
Asset-specific financings | 44,752 | |
Term Financing Facility (1) | 0 | |
Total Amount Outstanding | 44,752 | |
2022 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase facilities | 504,484 | |
Asset-specific financings | 0 | |
Term Financing Facility (1) | 0 | |
Total Amount Outstanding | 504,484 | |
2023 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase facilities | 412,274 | |
Asset-specific financings | 0 | |
Term Financing Facility (1) | 0 | |
Total Amount Outstanding | 412,274 | |
2024 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase facilities | 0 | |
Asset-specific financings | 0 | |
Term Financing Facility (1) | 0 | |
Total Amount Outstanding | 0 | |
2025 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase facilities | 0 | |
Asset-specific financings | 0 | |
Term Financing Facility (1) | 127,867 | |
Total Amount Outstanding | 127,867 | |
Thereafter | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase facilities | 0 | |
Asset-specific financings | 0 | |
Term Financing Facility (1) | 0 | |
Total Amount Outstanding | $ 0 |
Secured Financing Agreements _2
Secured Financing Agreements - Schedule of Repurchase Agreement Counterparties with Whom Repurchase Agreements Exceed 10 Percent of Stockholders' Equity (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Repurchase Agreement Counterparty [Line Items] | ||
Amount Outstanding | $ 916,758 | $ 1,708,875 |
Net Counterparty Exposure | 434,423 | 803,790 |
Morgan Stanley Bank | ||
Repurchase Agreement Counterparty [Line Items] | ||
Amount Outstanding | 277,534 | 435,719 |
Net Counterparty Exposure | $ 163,245 | $ 230,815 |
Percent of Equity | 18.00% | 25.00% |
Weighted Average Years to Maturity (in years) | 8 months 26 days | 5 months 26 days |
JPMorgan Chase Bank | ||
Repurchase Agreement Counterparty [Line Items] | ||
Amount Outstanding | $ 155,214 | $ 361,797 |
Net Counterparty Exposure | $ 94,929 | $ 187,282 |
Percent of Equity | 10.00% | 20.00% |
Weighted Average Years to Maturity (in years) | 8 months 26 days | 1 year 6 months |
Goldman Sachs Bank USA | ||
Repurchase Agreement Counterparty [Line Items] | ||
Amount Outstanding | $ 0 | $ 395,990 |
Net Counterparty Exposure | $ 6,103 | $ 203,297 |
Percent of Equity | 1.00% | 22.00% |
Weighted Average Years to Maturity (in years) | 1 year 9 months 10 days | 3 months 29 days |
Citibank | ||
Repurchase Agreement Counterparty [Line Items] | ||
Amount Outstanding | $ 412,274 | $ 386,049 |
Net Counterparty Exposure | $ 131,034 | $ 124,913 |
Percent of Equity | 14.00% | 13.00% |
Weighted Average Years to Maturity (in years) | 1 year 3 months 10 days | 2 years 7 days |
Wells Fargo Bank | ||
Repurchase Agreement Counterparty [Line Items] | ||
Amount Outstanding | $ 71,736 | $ 129,320 |
Net Counterparty Exposure | $ 39,112 | $ 57,483 |
Percent of Equity | 4.00% | 6.00% |
Weighted Average Years to Maturity (in years) | 8 months 26 days | 5 months 26 days |
Secured Financing Agreements _3
Secured Financing Agreements - Narrative (Details) $ in Millions | Sep. 30, 2021USD ($) |
Line of Credit Facility [Line Items] | |
Minimum unrestricted cash amount | $ 30 |
Debt covenant, recourse (as a percent) | 0.050 |
Cash | $ 154.9 |
Debt instrument, amount | $ 39.3 |
Debt covenant, tangible net worth (as a percent) | 0.750 |
Debt covenant, net cash proceeds of additional equity issuances (as a percent) | 0.750 |
Debt covenant, net cash proceeds of additional equity issuances, amount | $ 782.3 |
Debt covenant, tangible net worth, amount | $ 979.6 |
Debt covenant, target asset leverage ratio (as a percent) | 0.663 |
Debt covenant, total leverage ratio (as a percent) | 0.752 |
Debt covenant, minimum interest coverage ratio | 1.8 |
Maximum | |
Line of Credit Facility [Line Items] | |
Debt covenant, target asset leverage ratio (as a percent) | 0.775 |
Debt covenant, total leverage ratio (as a percent) | 0.800 |
Minimum | |
Line of Credit Facility [Line Items] | |
Debt covenant, minimum interest coverage ratio | 1.5 |
Convertible Senior Notes (Detai
Convertible Senior Notes (Details) $ in Thousands | 1 Months Ended | 9 Months Ended | |||
Oct. 31, 2018USD ($) | Jan. 31, 2018USD ($) | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2017USD ($) | |
Debt Instrument, Redemption [Line Items] | |||||
Convertible senior notes | $ 272,512 | $ 271,250 | |||
Convertible Debt | |||||
Debt Instrument, Redemption [Line Items] | |||||
Convertible senior notes | $ 272,500 | $ 271,300 | |||
Convertible Debt, 2017 Issuance | |||||
Debt Instrument, Redemption [Line Items] | |||||
Proceeds from convertible senior notes | $ 139,500 | ||||
Convertible senior notes conversion ratio | 0.0519943 | ||||
Convertible Debt, 2017 Issuance | Convertible Debt | |||||
Debt Instrument, Redemption [Line Items] | |||||
Convertible senior notes interest rate per annum (as a percent) | 5.625% | ||||
Convertible Debt, 2017 Issuance | Convertible Debt | Private Placement | |||||
Debt Instrument, Redemption [Line Items] | |||||
Convertible senior notes aggregate principal amount | $ 125,000 | ||||
Convertible Debt, 2017 Issuance | Convertible Debt | Over-Allotment Option | |||||
Debt Instrument, Redemption [Line Items] | |||||
Convertible senior notes aggregate principal amount | $ 18,800 | ||||
Convertible Debt, 2018 Issuance | |||||
Debt Instrument, Redemption [Line Items] | |||||
Proceeds from convertible senior notes | $ 127,700 | ||||
Convertible senior notes conversion ratio | 0.0500894 | ||||
Convertible Debt, 2018 Issuance | Convertible Debt | |||||
Debt Instrument, Redemption [Line Items] | |||||
Convertible senior notes interest rate per annum (as a percent) | 6.375% | ||||
Convertible Debt, 2018 Issuance | Convertible Debt | Private Placement | |||||
Debt Instrument, Redemption [Line Items] | |||||
Convertible senior notes aggregate principal amount | $ 131,600 |
Convertible Senior Notes - Debt
Convertible Senior Notes - Debt Instrument Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Debt Disclosure [Abstract] | ||||
Cash coupon | $ 4,119 | $ 4,119 | $ 12,357 | $ 12,357 |
Amortization of issuance costs | 437 | 410 | 1,261 | 1,213 |
Total interest expense | $ 4,556 | $ 4,529 | $ 13,618 | $ 13,570 |
Convertible Senior Notes - Carr
Convertible Senior Notes - Carrying Value of the Convertible Senior Notes (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
December 2022 Convertible Senior Notes | ||
Debt Instrument, Redemption [Line Items] | ||
Principal outstanding | $ 143,750 | $ 143,750 |
Less: Unamortized issuance costs | (1,106) | (1,774) |
Net carrying value | 142,644 | 141,976 |
October 2023 Convertible Senior Notes | ||
Debt Instrument, Redemption [Line Items] | ||
Principal outstanding | 131,600 | 131,600 |
Less: Unamortized issuance costs | (1,732) | (2,326) |
Net carrying value | $ 129,868 | $ 129,274 |
Senior Secured Term Loan Faci_3
Senior Secured Term Loan Facilities and Warrants to Purchase Shares of Common Stock (Details) $ / shares in Units, $ in Thousands | Oct. 04, 2021USD ($)$ / sharesshares | Sep. 30, 2021USD ($)$ / sharesshares | Sep. 28, 2020USD ($) | Sep. 25, 2020USD ($)$ / sharesshares | Sep. 30, 2021USD ($)$ / sharesshares | Sep. 30, 2020USD ($) | Sep. 25, 2021shares | Dec. 31, 2020USD ($)$ / shares |
Debt Instrument [Line Items] | ||||||||
Total Capacity | $ 1,800,000 | $ 1,800,000 | $ 2,325,000 | |||||
Number of securities called by warrants or rights (in shares) | shares | 1,516,455 | |||||||
Common stock par value per share (in usd per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||||
Proceeds from issuance of warrants to purchase common stock | $ 0 | $ 4,541 | ||||||
Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, term (in years) | 5 years | |||||||
Total Capacity | $ 300,000 | |||||||
Number of securities called by warrants or rights (in shares) | shares | 1,060,000 | 6,065,820 | 1,060,000 | |||||
Common stock par value per share (in usd per share) | $ / shares | $ 0.01 | |||||||
Term financing facility | $ 208,785 | $ 225,000 | $ 208,785 | $ 206,448 | ||||
Unused borrowing capacity, amount | 75,000 | |||||||
Proceeds from convertible senior notes | $ 210,200 | |||||||
Debt instrument, interest accrued (as a percent) | 0.50 | |||||||
Exercise price of warrants or rights (in usd per share) | $ / shares | $ 6.47 | $ 6.47 | ||||||
Proceeds from issuance of warrants to purchase common stock | $ 7,500 | |||||||
Stock and warrants issued during period, value, preferred stock and warrants | $ 4,500 | |||||||
Term Loan | Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of securities called by warrants or rights (in shares) | shares | 3,490,000 | |||||||
Exercise price of warrants or rights (in usd per share) | $ / shares | $ 6.47 | |||||||
Proceeds from issuance of warrants to purchase common stock | $ 24,700 | |||||||
Term Loan | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Convertible senior notes interest rate per annum (as a percent) | 8.00% | |||||||
Term Loan | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Convertible senior notes interest rate per annum (as a percent) | 9.00% |
Senior Secured Term Loan Faci_4
Senior Secured Term Loan Facilities and Warrants to Purchase Shares of Common Stock - Net Carrying Amount of Term Loan Facilities (Details) - Term Loan - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 28, 2020 |
Debt Instrument [Line Items] | |||
Principal outstanding | $ 225,000 | $ 225,000 | |
Less: Unamortized debt discount and issuance costs | (16,215) | (18,552) | |
Net carrying value | $ 208,785 | $ 206,448 | $ 225,000 |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Variable Interest Entity [Line Items] | ||
Cash collateral for repurchase agreements and securities activity | $ 0.6 | $ 5 |
Restricted cash | ||
Variable Interest Entity [Line Items] | ||
Cash collateral for repurchase agreements and securities activity | $ 20 | $ 62.8 |
Cash, Cash Equivalents and Re_4
Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 154,916 | $ 261,419 | ||
Restricted cash | 20,602 | 67,774 | ||
Total cash, cash equivalents and restricted cash | $ 175,518 | $ 329,193 | $ 359,005 | $ 159,764 |
Fair Value - Narrative (Details
Fair Value - Narrative (Details) $ in Thousands | Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Loans held-for-investment | $ 3,659,691 | $ 3,914,469 | ||||
Loans held-for-investment, net of allowance for credit losses | $ 3,614,211 | $ 3,577,644 | 3,847,803 | $ 3,978,862 | $ 4,290,047 | $ 4,226,212 |
Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Exit capitalization rate (as a percent) | 0.0550 | |||||
Fair value assumption discount rate (as a percent) | 0.0700 | |||||
Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Exit capitalization rate (as a percent) | 0.0700 | |||||
Fair value assumption discount rate (as a percent) | 0.0950 | |||||
Risk Rating 5 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Loans held-for-investment, net of allowance for credit losses | $ 145,350 | $ 58,769 | $ 0 | |||
Fair Value, Nonrecurring | Risk Rating 5 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Loans held-for-investment | 168,100 | |||||
Loans held-for-investment, net of allowance for credit losses | $ 145,300 |
Fair Value - by Balance Sheet G
Fair Value - by Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Loans held-for-investment, net of allowance for credit losses | $ 3,614,211 | $ 3,577,644 | $ 3,847,803 | $ 3,978,862 | $ 4,290,047 | $ 4,226,212 |
Loans held-for-investment, net of allowance for credit losses, at fair value | 3,648,115 | 3,867,286 | ||||
Cash and cash equivalents | 154,916 | 261,419 | ||||
Restricted cash | 20,602 | 67,774 | ||||
Repurchase facilities | 916,758 | 1,708,875 | ||||
Securitized debt obligations | 1,356,429 | 927,128 | ||||
Securitized debt obligations, at fair value | 1,360,354 | 916,701 | ||||
Asset-specific financings | 44,752 | 123,091 | ||||
Term financing facility | 127,867 | 0 | ||||
Convertible senior notes | 272,512 | 271,250 | ||||
Convertible senior notes, at fair value | 275,141 | 257,411 | ||||
Senior secured term loan facilities | 208,785 | 206,448 | ||||
Senior secured term loan facilities, at fair value | $ 208,785 | $ 206,448 |
Commitments and Contingencies -
Commitments and Contingencies - Unfunded Commitments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Other Commitments [Line Items] | |||||
Unfunded commitments | $ 430,105 | $ 430,105 | $ 503,726 | ||
Weighted average future funding period on unfunded commitments (in years) | 2 years | ||||
(Benefit from) provision for credit losses | (2,451) | $ (3,371) | $ (11,446) | $ 56,647 | |
Unfunded loan commitment | |||||
Other Commitments [Line Items] | |||||
Liability for off balance sheet credit losses | 1,900 | $ 1,900 | |||
(Benefit from) provision for credit losses | $ 3,200 |
Preferred Stock (Details)
Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jan. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Class of Stock [Line Items] | ||||||
Preferred stock dividend rate (as a percent) | 10.00% | |||||
Preferred stock liquidation preference (in usd per share) | $ 1,000 | $ 1,000 | ||||
Period after which the company may redeem preferred stock (in years) | 5 years | |||||
Preferred stock, redemption price per share (in usd per share) | $ 1,000 | $ 1,000 | ||||
Period after which the holder may redeem preferred stock (in years) | 6 years | |||||
Preferred dividends declared | $ 25 | $ 25 | $ 75 | $ 75 | ||
10% cumulative redeemable preferred shares issued (in shares) | 1,000 | 1,000 | 1,000 | |||
Series A Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, shares issued, retained by issuer (in shares) | 500 | |||||
Preferred stock, shares subscribed but unissued (in shares) | 125 | |||||
Series A Preferred Stock | Sub-REIT | ||||||
Class of Stock [Line Items] | ||||||
10% cumulative redeemable preferred shares issued (in shares) | 625 | |||||
Proceeds from issuance of preferred stock and preference stock | $ 100 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Common Dividends Declared (Details) - $ / shares | Sep. 15, 2021 | Jun. 15, 2021 | Mar. 18, 2021 | Dec. 18, 2020 | Sep. 28, 2020 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Class of Stock [Line Items] | |||||||||||
Dividends declared per common share (in usd per share) | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.20 | $ 0.75 | $ 0.20 | |||||
Common Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Declaration Date | Sep. 15, 2021 | Jun. 15, 2021 | Mar. 18, 2021 | Dec. 18, 2020 | Sep. 28, 2020 | ||||||
Record Date | Oct. 1, 2021 | Jul. 1, 2021 | Apr. 1, 2021 | Dec. 31, 2020 | Oct. 8, 2020 | ||||||
Payment Date | Oct. 19, 2021 | Jul. 19, 2021 | Apr. 19, 2021 | Jan. 22, 2021 | Oct. 19, 2020 | ||||||
Dividends declared per common share (in usd per share) | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.20 | ||||||
Dividends declared per common share (in usd per share) | $ 0.20 |
Stockholders' Equity - Share Re
Stockholders' Equity - Share Repurchase Program (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021USD ($)$ / sharesshares | Sep. 30, 2021USD ($)shares | |
Equity, Class of Treasury Stock [Line Items] | ||
Number of shares authorized to be repurchased under stock repurchase program | 2,000,000 | 2,000,000 |
Treasury stock, shares, acquired | 1,000,721 | |
Treasury stock acquired, average cost per share (in usd per share) | $ / shares | $ 13.49 | |
Treasury stock, value, acquired, cost method | $ | $ 13.5 | |
Stock repurchase program, remaining number of shares authorized to be repurchased | 698,388 | 698,388 |
Repurchased Shares From Employees | ||
Equity, Class of Treasury Stock [Line Items] | ||
Treasury stock, shares, acquired | 0 | 115,053 |
Treasury stock, value, acquired, cost method | $ | $ 1.2 |
Stockholders' Equity - At-the-M
Stockholders' Equity - At-the-Market Offering (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 25, 2021 | |
Stockholders' Equity Attributable to Parent [Abstract] | |||||
Number of shares authorized to be sold under equity distribution agreement (in shares) | 8,000,000 | 8,000,000 | |||
Number of common shares issued under equity distribution agreement and outstanding as of period-end (in shares) | 3,242,364 | 3,242,364 | |||
Accumulated proceeds from issuance of common shares under equity distribution agreement | $ 61,200 | $ 61,200 | |||
Shares sold at the market offering (in shares) | 0 | 0 | 0 | 0 | |
Number of securities called by warrants or rights (in shares) | 1,516,455 | ||||
Proceeds from issuance of warrants to purchase common stock | $ 0 | $ 4,541 |
Equity Incentive Plan (Details)
Equity Incentive Plan (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of restricted common shares reserved for issuance under equity incentive plan | 2,228,088 | 2,228,088 | ||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ 1.2 | $ 1.2 | ||
Equity based compensation | 0.5 | $ 1.3 | $ 1.8 | $ 4 |
Share-based payment arrangement, nonvested award, cost not yet recognized, period for recognition | 1 year 7 months 6 days | |||
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | 6.7 | $ 6.7 | ||
Equity based compensation | 1.2 | $ 3.1 | ||
Share-based payment arrangement, nonvested award, cost not yet recognized, period for recognition | 2 years 7 months 6 days | |||
PSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | 4.3 | $ 4.3 | ||
Equity based compensation | $ 0.3 | $ 0.6 | ||
Share-based payment arrangement, nonvested award, cost not yet recognized, period for recognition | 2 years 4 months 24 days | |||
Award vesting period of restricted common shares granted during period under equity incentive plan | 3 years |
Equity Incentive Plan - Schedul
Equity Incentive Plan - Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Ending balance (in shares) | 1,575,871 | 1,575,871 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Beginning balance (in usd per share) | $ 11.95 | $ 11.32 | $ 14.93 | $ 14.93 |
Granted (in usd per share) | 14.15 | 14.77 | 9.77 | |
Vested (in usd per share) | 0 | 5.12 | 18.46 | |
Forfeited (in usd per share) | 0 | 5.93 | 18.43 | |
Ending balance (in usd per share) | $ 12.44 | $ 11.95 | $ 11.32 | $ 12.44 |
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Beginning balance (in shares) | 264,662 | 334,382 | 569,535 | 569,535 |
Granted (in shares) | 0 | 0 | 0 | |
Vested (in shares) | 0 | (52,092) | (137,728) | |
Forfeited (in shares) | 0 | (17,628) | (97,425) | |
Ending balance (in shares) | 264,662 | 264,662 | 334,382 | 264,662 |
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Beginning balance (in shares) | 963,313 | 923,465 | 403,903 | 403,903 |
Granted (in shares) | 0 | 44,853 | 519,562 | |
Vested (in shares) | 0 | (1,048) | 0 | |
Forfeited (in shares) | 0 | (3,957) | 0 | |
Ending balance (in shares) | 963,313 | 963,313 | 923,465 | 963,313 |
PSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Beginning balance (in shares) | 0 | 0 | 0 | 0 |
Granted (in shares) | 347,896 | 0 | 0 | |
Vested (in shares) | 0 | 0 | 0 | |
Forfeited (in shares) | 0 | 0 | 0 | |
Ending balance (in shares) | 347,896 | 0 | 0 | 347,896 |
Equity Incentive Plan - Summary
Equity Incentive Plan - Summary of Restricted Stock and Restricted Stock Units Vesting Dates (Details) - shares | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total (in shares) | 1,575,871 | 1,575,871 | |||
2021 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period (in shares) | 30,030 | ||||
2022 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period (in shares) | 390,111 | ||||
2023 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period (in shares) | 613,668 | ||||
2024 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period (in shares) | 173,194 | ||||
2025 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period (in shares) | 368,868 | ||||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period (in shares) | 0 | 52,092 | 137,728 | ||
Total (in shares) | 264,662 | 264,662 | 334,382 | 264,662 | 569,535 |
Restricted Stock | 2021 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period (in shares) | 0 | ||||
Restricted Stock | 2022 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period (in shares) | 172,077 | ||||
Restricted Stock | 2023 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period (in shares) | 92,585 | ||||
Restricted Stock | 2024 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period (in shares) | 0 | ||||
Restricted Stock | 2025 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period (in shares) | 0 | ||||
RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period (in shares) | 0 | 1,048 | 0 | ||
Total (in shares) | 963,313 | 963,313 | 923,465 | 963,313 | 403,903 |
RSUs | 2021 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period (in shares) | 30,030 | ||||
RSUs | 2022 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period (in shares) | 218,034 | ||||
RSUs | 2023 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period (in shares) | 173,187 | ||||
RSUs | 2024 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period (in shares) | 173,194 | ||||
RSUs | 2025 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period (in shares) | 368,868 | ||||
PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period (in shares) | 0 | 0 | 0 | ||
Total (in shares) | 347,896 | 0 | 0 | 347,896 | 0 |
PSUs | 2021 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period (in shares) | 0 | ||||
PSUs | 2022 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period (in shares) | 0 | ||||
PSUs | 2023 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period (in shares) | 347,896 | ||||
PSUs | 2024 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period (in shares) | 0 | ||||
PSUs | 2025 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period (in shares) | 0 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) $ in Millions | Sep. 30, 2021USD ($) |
Income Tax Disclosure [Abstract] | |
Sales and excise tax payable, current | $ 0.6 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Numerator: | ||||
Net income (loss) attributable to common stockholders - basic | $ 18,605 | $ (24,691) | $ 60,815 | $ (63,665) |
Interest expense attributable to convertible notes | 0 | 0 | 13,618 | 0 |
Net income (loss) attributable to common stockholders - diluted | $ 18,605 | $ (24,691) | $ 74,433 | $ (63,665) |
Denominator: | ||||
Weighted average common shares outstanding (in shares) | 54,188,884 | 54,624,739 | 54,537,196 | 54,561,411 |
Weighted average restricted stock shares (in shares) | 264,662 | 580,343 | 327,260 | 578,752 |
Basic weighted average shares outstanding (in shares) | 54,453,546 | 55,205,082 | 54,864,456 | 55,140,163 |
Effect of dilutive shares issued in an assumed conversion of the convertible senior notes (in shares) | 0 | 0 | 14,065,946 | 0 |
Effect of dilutive shares issued in an assumed conversion of RSUs as additional shares | 435,430 | 0 | 245,890 | 0 |
Effect of dilutive shares issued in an assumed exercise of warrants issued in conjunction with the senior secured term loan facilities (in shares) | 1,846,302 | 0 | 1,726,453 | 0 |
Diluted weighted average shares outstanding (in shares) | 56,735,278 | 55,205,082 | 70,902,745 | 55,140,163 |
Earnings (loss) per share | ||||
Basic (in usd per share) | $ 0.34 | $ (0.45) | $ 1.11 | $ (1.15) |
Diluted (in usd per share) | $ 0.33 | $ (0.45) | $ 1.05 | $ (1.15) |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Interest expense attributable to antidilutive convertible notes excluded from computation of earnings per share | $ 4.6 | $ 4.5 | $ 13.6 | |
Antidilutive convertible notes excluded from computation of earnings per share | 14,065,946 | 13,717,782 | 13,717,782 | |
Deferred debt issuance cost, accretion period | 5 years | |||
Deferred debt issuance cost, adjustments | $ 0.3 | $ 0.8 | ||
Effect of dilutive shares issued in an assumed exercise of warrants issued in conjunction with the senior secured term loan facilities (in shares) | 1,846,302 | 0 | 1,726,453 | 0 |
Effect of dilutive shares issued in an assumed conversion of RSUs as additional shares | 435,430 | 0 | 245,890 | 0 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Related Party Transaction [Line Items] | ||||
Base management fees | $ 0 | $ 3,974,000 | $ 0 | $ 11,840,000 |
Pine River Capital Management L.P. | ||||
Related Party Transaction [Line Items] | ||||
Percent per annum of equity used to calculate management fees (as a percent) | 1.50% | |||
Base management fees | 0 | 4,000,000 | $ 0 | 11,800,000 |
Compensation and benefits | 0 | 0 | ||
Direct and allocated costs incurred by manager | $ 0 | $ 1,500,000 | $ 10,800,000 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Nov. 03, 2021 | Sep. 25, 2021 | |
Subsequent Event [Line Items] | ||||
Number of securities called by warrants or rights (in shares) | 1,516,455 | |||
Proceeds from issuance of warrants to purchase common stock | $ 0 | $ 4,541 | ||
Collateral assets (2) | ||||
Subsequent Event [Line Items] | ||||
Principal Balance | $ 1,827,558 | |||
Weighted average interest rate of securitized debt obligations outstanding (as a percent) | 4.10% | |||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Beneficial interest liability, initial advance rate | 80.875% | |||
Subsequent Event | GPMT 2021-FL4 CRE CLO | Collateral assets (2) | ||||
Subsequent Event [Line Items] | ||||
Principal Balance | $ 621,000 | |||
Weighted average interest rate of securitized debt obligations outstanding (as a percent) | 1.68% |