GPMT - Earnings call transcript Q3 2017 | Granite Point Mortgage Trust Inc.

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Operator

Good day, and welcome to the Granite Point Mortgage Trust Inc.

Third Quarter 2017 Financial Results Conference Call and Webcast. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. to conference like Ms. over now would turn call the to I Field for Relations with Point. Maggie Investor Granite [ph] Ms. Field [ph], the floor is yours, ma'am.

Unidentified Company Representative

our and quarter my of to CFO; our Plust, our third some will our President Thank joining SEC. recap Steve filed call this strategy, With Alpart, portfolio, brief Operator, a good Alpart financial CEO; and a provide introductory items financials. will Marcin Jack Thank the update, business business COO. and everyone. our you, were Taylor, are you me release yesterday will our on tables call market Jack Steve with from XXXX and Marcin press key discuss CIO; quarter highlight discuss originations Point's associated the Steve and comments, The and call morning highlights. Granite with After financial results. morning our third for and today's Urbaszek, our

location. GAAP them a to In If conjunction accessed also on Web our have of sec.gov. financial Relations provided are reconciliation you and webcast on do earnings at Web urge site be now may not that Web being may information and release call. copy our the like we with slides, site, on SEC's this I our non-GAAP in site mention section you a We to Investor in review measures. today's to or same have the in this would which our the Web posted call find of you site is

conference made forward-looking to to by would slides may remarks include remind that the and turn over supporting call like I I the Before management during this statement. you Jack,

expectations. consider such may such forward-looking associated uncertainties, We and caution and results not other views differ rely the reflect actual inaccurate. from SEC any imply statements filings in risks any the estimate, turn to urge expect, investors them risks statements. We with you will believe obtained be later and forward-looking We on Web I the words call to correct SEC's to at anticipate, regarding our update the Jack. Forward-looking or undertake if over described be statement They sec.gov. materially the prove carefully unduly and events are or to as on not to our now site words. events obligation typically which can future with do

Jack Taylor

all like of Maggie, and the earnings and quarter you, of you you our joining morning behalf call. of for Thank good our and Thank our for significant company your transactions, support everyone. investors and The analysts. the all of capacity for completing with to On welcome we our $X would Thank Board us IPO Directors, formation billion a third last of capital. been investment few financial have between active initial commencing borrowing and our several large business. months institutions quite establishing

As Granite the and lending continue order estate XXXX. a reminder, Point established grow to Two commercial was in by in Harbors, formed real

turn end, Granite floating to capitalization, Two completed to in to approximately behalf Two its Point originated two we This fully loans included Granite the of team million Harbors. stock. a Point. of stock. approximately primarily billion market in to a In the XX.X Harbors lending for Please contributed of common presentation. Granite of shares the received part $X.X portfolio Harbors that Granite business had commercial common Point investors its significant our formation As Two allows contribution, liquidity of stock Two distribution Point This exchange on in quarter assets believe Granite slide of which provides its Since Harbors shareholders. transaction has our the have Point with the distribution

view focused approach metric. estate of key intensive on our value-driven For by to loans. real I'd employ take We is minutes credit senior review couple an a market rate investment fundamental, discuss originating a a directly Granite current flow backed like underwriting as business and to company to our floating diligence commercial the managing with cash of our environment. those who you of strategy are Point new and

target basis expertise Our existing that typically loan to million on XX LIBOR producing is Plus is $XXX We LTPs types. to by XX% and X.X%. We the between sponsored particular sponsors between across properties aim construct markets a $XX X% U.S., the top and lend up asset who regarded top markets and sizes an diversified million, target XX%, yields a the to have asset-by-asset portfolio property in institutional-quality stabilized class. XX well income in of highly ranging and demonstrated and and in

careers, Each Additionally, of The team real estate, seasoned and professionals very cycles. team team. member a complemented rate majority estate XX and interest their investment investment multiple have a commercial members of worked senior XX real commercial years average lending talented has the through by and experience, of of team has together from importantly, our successfully and with industry economic, an senior we over estate are for experience. experienced navigated of and of our years benefit real

our structure. our real a creativity, and team for allowed portfolio, reputation competing reliability, on the estate years has has commercial which than broad us to loan on developed of relationships focus industry directly a on loosening the set Over of rather originating flexibility,

allows to to best proven origination Turning the risk-adjusted returns. from find markets types us differentiated property array our to platform three, and a of slide and select broad

year, primary those classify strong define in markets, floating real which overall higher types, investment primary Real improving cycle, is about averages. crisis. commercial similar found growth in account In MSAs the markets continues our economic rate The fundamental while portfolio, the historical prolonged are our of the commercial been has The view, of top since above as We time. senior the stockholder valuations has our some senior from lengthen activity on X in often that States, the floating the and In ands estate though ongoing we a rate part financing, MSA for benefit approach with find historically estate should and of and underwriting economy with For And overall be investment deliver our especially fundamentals pressure and in across our property lending provide yields continue with returns working risk-adjusted rent example, real believe spreads rates. offers five secondary favorable valuations competitive in manufacturing on which strong extended and our over for most quality recovery loans this of strategy attractive for on with estate real rise line are cost in return general, secondary to and loans. interest ample of there we low most occupancies. attractive. rest United will by our construction the to for us we focused remains the the opportunities. Even The onset very a served period loans relative market markets. estate in the great as value lenders XX% markets. returns, markets, profile with to credit supported to disciplined remain

real alternative structural continue estate changes, the that enduring believe to strong capital by supported also and flows fundamentals. healthy will be sector lending We

for We business pace but After and like financial to Now, of and results in slowdown please related IPO partners. had with capital. our to highlights very originations and borrowers turn we investors' discuss factors shortly, and in discuss slide flow engage the terms first our This quarter to quarter, will ramp to our four. a I'd the to third our originations second our deploying business a quarter. origination were deal from some Marcin productive in owing third fully some quarter. formation generated large originations many robust able transaction, and up the

$XXX please XXX% attractive continue yields at billion quarter our rate have over originated of our $X.X to portfolio, are of which million senior floating investments loans at to end. approximately We to stood grow performing. are at

generate strong to of pipeline investment a opportunities target continue markets. across our We

enables are secondary upsize in capacity approximately by markets total the end disciplined in deep far occurring already capacity the borrowing primary and billion. senior over originate and negotiations across our high quarter additional directly to we The our network with second of the rate of quarter. quarter, originations committed capacity funding loans, likely end fourth our bring close with our by some by will to the industry To further broad million, us commercial borrowing floating and fourth year, the expect portfolio. post believe half to to our mortgage of quality accommodate borrowing So in robust which of pace for which the final that relationships, an we $XXX We of of the million $XXX rest approach have $XXX $X.X targeting to million, investments underwriting closed. U.S., strategy our we've combined of our upsized

our independent our progress We company, very about public and future an proud are are of excited business. of becoming since the

to will turn portfolio our the Alpart originations and discuss I in detail. Now, more over call to Steve

Steve Alpart

fourth this some highlighting our and so like Thank our minutes in appreciate progress and you, everyone's originations will portfolio. I'd to and our spend provide quarter a on reviewing morning. then quarter, third Jack, few far key time the metrics

originated great XX a originations. representing $XXX of slide rate approximately total we We commitments of turn five, Let's senior quarter third floating to had million. loans,

portfolio. over $XXX funded we our repayments in and no experienced Additionally, million

directly through to our long-standing our of loans which the with speak Importantly, platform. we majority have relationships sponsors to these ability originate

high-quality, industrial Remaining income-producing types. our properties. apartment loan office quarter properties. XX% properties the third property are secured various funded of and properties fully Our hotel are existing, target of across loans, Nine by secured by and these secured totaling by approximately are originations and XX% markets amounts,

the with rest in secured with in overall of regions. characteristics continue largest hotel. The Southeast, by these are by these We and our across Southwest, investment the loans the selective targets. Midwest, loan The to of Northeast, originations spread the highly return are properties line in West be and profiles percent and retail amount

in the building $XX.X on ability execute third of of office secured flexibility our million ranging in by Northeast, loan size a Southeast. $XXX variety an from on to Our the demonstrate a originations an the financings, platform loan in and property to million apartment quarter

was of structures the without plans customized to credit financing borrowers business protection. meet on the Importantly, of our compromising individual each

quarter, a to of opportunities. fourth the see we Turning continue strong investment to flow

of these close loan October to week quarter. senior with the of The remaining six $XXX in rate We date are million. attractive closed four have total to the $XXX million across fully of approximately commitments loans of amount floating with made half committed second returns. a of expected first the Two loans loans

on XX%, of yield total and of moving principal XX, with a LIBOR as performing billion, weighted slide outstanding portfolio a let's discuss average XXX% Now, LTV stabilized balance Plus to asset which approximately X.XX%. a average is our six, of $X.X weighted of September

to expect portfolio fund to In addition the to to multifamily towards future attractive of our $XXX remain our retail was also our will type, next selective We slide sectors, positioned funded diversified which balance, our see and commitments XX over and over seven The short-term property portfolio If have look we we By rise we on portfolio rate rate. is million and is is for of we months. as rates. continue much office a funding XX weighted find across we the interest you take hotel. floating in well XX% which at well believe a markets, sensitivity.

share if on by XXX income basis instance, you $X.XX. approximately our per by interest increase LIBOR annual were slide, can net For this points, increase to as see would

high-quality strategy recent large and slide our to further of on relationships. we comment the briefly originate assets two to through to eight, our industry network like deal Turning illustrate of I'd types examples

example when loan. $XX York. New occupied Brooklyn, two a we floating newly million totaling apartment collateralized loan were rate units this by XX The senior is XX% The buildings first properties closed in deal constructed

property. As at to typical business up refinance involves remaining situations, is or which such time sponsor in the sell is the the units lease the plan the of likely

this development estate this for New have in sponsor on property type similar in of and and Our particular our We extensive in headquartered neighborhood. investment overall properties sponsor experience City, repeat platform. was investment this asset of firm class is and and management this reasons. like two a several market, York They real a in

recently desirable First, a a constructed single-digit in loan with market by within vacancy apartments rates. strong secured low is the location

And relationship. to Second, an base sales. existing our attractive sponsor's is we relative whom experienced and an loan recent have sponsor with have we the bases third,

the Washington, the acquisition is NoMa by example, D.C.. rate floating which in closed an of $XX fourth business of regarded best This The in improvement one million an approximately submarket quarter, and property the is senior loan as office the plan program collateralized second performers D.C.. involves in capital This for company based a a submarket sponsored deal sponsor experience this along office similar Area. integrated D.C. value-add The in real fully Coast, the space. investment that the with of D.C. vacant estate concentration reasons. extensive and in several Area properties is of has Metro releasing vertically the East like a owning type operating We Metro

recent want relative A first this sponsor Our B the plans office experienced near deal expertise in in level executing basis similar the Union And by reps. which D.C. a high-quality secured a this this is sales. sponsor's office example, building Class at by low one value-add largest importantly basis to this submarkets X%, the part discount be large loan transportation and attractive was market. significant in Station, the business Class vacancy location, office makes is our this submarket Area, finally, it is in D.C., and tightest to the under is hub a vacancy in Similar who Metro located properties owner-operator the loan to tenants on highly to driven of and with in

to of continue financial a able strength our our are we behalf relationships call reputation fit So to from plan great business our our more detailed relationships, will a platform, to successfully we our on flow that we industry of to investment our on of quarterly Based summarize, counterparty, our as into over be to we the review investment continue a I see execute turn that criteria. the confident now opportunities reliable shareholders strategy move will for of results. and and Marcin existing overall XXXX. as on

Marcin Urbaszek

good and spend performance our capitalization will our and financial well liquidity. few I Steve, Thank a as everyone. discussing morning minutes you, as

adjusted Our Taxable the Core $XX.X was was per was $X.XX quarter compensation or or share. non-cash third quarter the for earnings for share. per $X.XX expense, net income earnings, GAAP $X.XX equity for or $XX.X income $XX.X per million million is million share. which third GAAP

was share Our per book value $XX.XX.

terms let's drivers putting a strong work. and had nine, on capital to our quarter a of touch slide to earnings and few in Turning We dividend. of quarterly originations

loans generally is the sector, is As fund. when the actually hard in case close it and this to control

Over more fourth Our third of will which The of year. the earnings quarter third of end period. originations for material have a impact company is phase, have in deployment each on results quarterly this originations be growth time were fully quarter our investment the capital however our of the the can quarter, impact timing Since incremental material our weighted a on realized and loan forward. earnings should the results. closings the going quarter towards less impact impacted in

and and REIT important including dividend Board When dividend, team eligibility. drivers. our sustainability factors our discuss Tax its and Let's maintaining setting and planning our our compliance our elements income. dividend, current taxable multiple our profitability, and are of our consider management projected of

was During business our sale the commercial transaction formation lending real contribution Harbors a estate Two tax from treated for purposes. of as

impacted higher change approximately Two GAAP-to-tax this income versus we estimate result note $XX taxable accretion estimate higher accretion in GAAP us company tax and a recognized additional transaction. XXXX, income. earnings. current our contributed end we through going such taxable will of of taxable feel our the that were among than of will third of basis our funding, share that caution will the things. result of and may is the that our the approximately into third result, not any to like Harbors. of discretion insight the accretion other year. of of would in the GAAP guidance of that dividend may raised per or accretion an being depending as loan in on to portfolio recognition of any We I approximately factors I over dividends time life GAAP provide to other Directors. one-time fact quarter of additional This quarter timing which that core $XX the results do a for we its basis the our income million Board with prepayments, providing financial additional the the the capital As by million guidance recognize our closings, forward uniquely by the dividend End In million of the and and expect subject and $X.XX our provide to on We of of to quarter, recognized stockholders quarter anticipate on lower be IPO loan in to potential performance losses difference $X.X timing tax will fourth by than we $X.XX for this at light credit range additional beneficial it versus approval results.

we billion time you multiple had the to $X established capacity of IPO XX, at counterparties. with Turning slide the recall, as financing may of approximately

another As million, Since Morgan we that billion approximately lender outstanding $XXX our of million, borrowing are time, total to upsized capacity to $X.X billion. healthy Stanley $X.X have an in which our XX, with manner. and increase September by in $XXX operating efficient markets final on financing we about their are remain believe with facility and We negotiations had our facility financing facilities. by would bring

grow we approximately look loan debt-to-equity structured as such ratio funding. with cost to or optimize ended capital, of sources, diversify other our to will quarter a financing and X.X positions third forms of include the the times. We As of we additional syndicated financing portfolio, our profile

given capital rate of debt-to-equity, X.X we we the the expect loans. our a to on focus floating As invest as in grow we view portfolio level to times our X stabilize which senior and additional leverage range prudent

of additional investments $XXX leverage. the loans specific liquidity senior available and million the end support of third depending of on Our at quarter about could originations

going well today. sheet And We will for to from these questions. Thank the and realizing we to call I positioned capital are balance operator the now a have open believe again us perspective ask deployment you our progressing forward. and joining originations,

Operator

sir. Thank you,

will the begin have of we We come Rahmani Instructions] from KBW. will first [Operator And question-and-answer now Jade the session.

Jade Rahmani

Thanks very much.

that terms X borrowing the optimal potentially increase. or could which X.X is the times to of capacity reflective in range is leverage sited, that In liquidity of you based on cited, current your you that

Marcin Urbaszek

speak is nice capacity. to capital This say available joining you Jade. our on current Hi, Thanks I based with Marcin. and us, for again. is would this

hopefully to next to few X.X I over times get we'll quarters. X think that the

Jade Rahmani

modestly the stock you in Do I what quarter? headwind one reasons sense today. of weak of Okay. the was the is from originations the suspect that's have of timing the

Marcin Urbaszek

And again. it's significant I Sure. towards say Marcin a half end close I mentioned, two QX. I in closed Hi, of would considering say, loans quarter probably say similar would the would the it's mid-November second later closings as and in in almost mentioned terms that, the loans of earnings in I quarter. the it's in a Steve remarks, our so the we amount far, of we would pennies when as couple of fourth in this expect pattern of quarter.

Jade Rahmani

the mentioned on the on a investors in yield color rate, your to just of to light emphasis and debt overall transition? assets. of some ratio be sense you've, give I service Would debt or able think give analysts level past, the cash-flowing occupancy you portfolio

Steve Alpart

Steve Alpart, for that's It's that Jade. Hi, question.

the example, So give The on properties a think yes, flow sense, cash I a in as our to flow debt reflective cap are to we've just of overall in properties sixes in like in lower you cash to of going place. properties. that fact these mentioned, with And And average deals some seem the [ph]. we're third yields multifamily have have quarter that's on a the properties mix existing was lot for these focus rate, that of the place. focus continuing majority

Jade Rahmani

you're give could would say value, where and the areas generally, examples that you you're finding most And avoiding? any you of

Steve Alpart

again, that. take Sure. It's Steve I'll

portfolio, as like properties. So, now, can charts you about the right is and to continue of some XX% our And those sectors. in see we office in multifamily of

of industrial as We're go institutions top classes earlier, dominate characterized that. also be me XX geographies, that loans on generally of few the say But heard red as we're hotel. you portfolio. be and selective looking asset the are say opportunities XX heard not earlier, REITs loans, selectively high on a probably on we're we'll that not There's you the but some MSAs As of for XX. that top some economic would there of the And a economic that always industrial. MSA. sector, lot big continue we're to public but residential and looking condo to we through lines, a quality as high-quality on, far retail lot country country drivers, do but our not and examples have We There's no lot industrial. regions growth, [ph] would for focused say Jack are in in a MSA, seeing we quite very of would regions primarily lot of XX in certainly as a focus land

Jade Rahmani

think the trends office exposure; in I was space wondering on about utilization.

have a past but entirely or square more If lot a businesses property law example, occupied used of have firms the that's for you that has, nearly in footage.

Now how do that? you underwrite

Steve Alpart

Hi, Steve again. it's

corner look, So always market, asset, by corner to it's by market be analysis. asset going by

overall trends look So on every of the obviously little each market, We're to to look the fundamental situation property, investment aware But bit space. We're office going the at the the basis. different. the location, is at sponsor. in going we're a a

improving. that's up tenant get maybe would market. capitalized, back have very that underwriting or other typical to up, that a deal we not rollover And sponsor, undercapitalized. would coming to we're has be profile a The out strong The I great that is would a point lost great to location, property thing we're underwriting markets well building,

question So of an lot because element into factors overall your analysis. And is go underwriting. space it's the about utilization that in a

Jade Rahmani

Thanks very questions. the much for taking

Steve Alpart

thank Sure, you.

Operator

come will JMP Delaney from have of we Securities. Steve next The

Steve Delaney

you in in Were the morning any. Good comments thank taking in didn't quarter? were payoffs. release that the like I'd third the start portfolio there no there and to your for payoffs you or pick I question. with the

Steve Plust

I'll This is question. and that Plust, hi. handle Steve, Steve

Steve Delaney

Hi, Steve.

Steve Plust

Hi.

we XX, September of prepayments no all. As at had

Steve Delaney

realized company up time the first year you so looking for next out And if quarter the and and look two over you I great. Okay, years of over building lending between, the the the couple quarter. I and mean some fourth difficult out, the were -- portfolio, time Steve, as been something to say, it's quarters, obviously very last you've this

So maybe the over six the basis seeing or you some combined on next a months? repayments are expected-early scheduled repayments over months, next

Steve Plust

Plust Steve, again. this hi, is Steve

minimis far million $XX may status million far. quarter terms for than predictor quarter million to million, one de forward concerned, in as the so As maybe prepayment of in one $XX the plan $XX And We two have which in project think as fourth less is of or quarter. sponsor's we've business the $XXX be the we best had more the portfolio. of we prepays generally our as the would

Steve Delaney

Right.

Steve Plust

And historically, two loans from sponsors that as looked business with years. to four portfolio with at we've our range plans are three to these five-year

historically, add per might think in year. manner prepays that and XX% mature we our portfolio a So stabilized

Steve Delaney

Per year, great. okay,

your very $XXX you just so debt here, on this a your your corporate have I you done Maybe of how corporate you've that's when time. premature no look debt, Thank Also, Now, flexibility? at But so at capital the just helpful unsecured you equity, much. for curious million capital IPO. near-term. no little see markets' structure guys common

you you you look over notes where extent some believe to at possibly leverage, registration. become, it hit you notes you it business to have year that in too look the period much issue don't the shelf But maybe I or to as of Now X.X two, a want over a have time higher. convertible one the time at of that next the next unsecured you a kind your have Do as corporate situation or to flexibility and XX months? push your you wait

Marcin Urbaszek

Steve, is Hi, this Marcin. Thanks…

Steve Delaney

Marcin. Hi,

Marcin Urbaszek

generally I for our have just make sense we foremost and raising, on would obviously shareholders. say, philosophy overall think look, first I capital our to

heard, as of use have, now, good you've right originations. capital great We

I will have us company through those equity, we public debt, needs. potential a have options appropriate from available of at obviously look preferred, we think as as variety and all we through a when to

and the right ample the I with mentioned to we'll think company earlier, evaluate as options move forward for I look we near-term, and business we we our stabilize capital kind have as of of plan. now, have

Steve Delaney

to lot thing just And I'm see is seeing part? towards model me, say the is and to a And a say many of getting look actually X.X people to realistic. other you. being floating practical kind sort for model a X.X I you any say you say, in times not hear as we're on or that of curious at aggressive my company IPO, whether too But our and would analyst you. Okay, thank level get if just senior final a consistent look early you limit. we that We clearly leverage, of a rate frankly your question. lenders level X.X. X.X you on can as at look had, XXXX, And I leverage last basis. That's Thank three any my

Marcin Urbaszek

times basis potential advance, about and look we When standard Sure. XX% by and at X times unencumbered to loan the asset debt-to-equity Thanks assets. Steve, some have on obviously of cash it's an of leverage leverage think when loan. kind that is of times leverage corporate we three also Marcin reported a kind that'll of again. a basis do I opportunities. I'll say, the when three three on to is look, X.X the think on there that we generally liquidity is our recourse in depending kind opportunity target. something leverage. an would X.X we get market of And or non-recourse to If may additionally overall closer think say higher But so to that on

how terms about thinking would too your from off you I modeling think it. of in don't far So we're perspective

Steve Delaney

the comments. I you. Okay. appreciate Thank

Marcin Urbaszek

Thank you, Steve.

Operator

have we J.P. Shane next Morgan. Rick And of

Rick Shane

from important in think covered dividend guys. Are have for for context. that the short-term things characterization appreciate I it's you Hi fourth to that income Thanks am taking the are ramping my up terms about fully outlook or this questions. things two of quarter I sort here, fourth of Really as policy quarter? will the be changing curious dividend taxable though the in the in of how dividend. to

Marcin Urbaszek

This Thanks question. joining is Marcin. you for us. the Rick. Thank Hi, for

are we Taxable involves REIT. I mentioned I policy, a as is think obviously dividend multiple our earlier, considering factors. driver income overall a

As pay XX% a of income. REIT we're out taxable to required

compliance in for next that. be income disconnect that years. our mention than taxable going to our for those years. be of drivers will core of the be couple But overall GAAP of will saw dividend, the next couple that obviously you some the and But sustainability being I We there are will higher as with taxable and profitability and

Rick Shane

Got it.

space, terms we given time the like when basically achieve that we've about being compression asset one be think Do you over of sensitivity question, the the sensitivity in rate back you of space spread think compression. this asset is to it spread in seen is to the that in loans? this floating basically able will Second things market feels the of

Marcin Urbaszek

Marcin It's Rick. Hi, again.

I you reported as asset look we realized on of yield to at yields the X.X if couple X.X of do sensitivity we some over believe basis, kind is reported there that last think our quarters obviously. the

one In as LIBOR. from terms been out to heard we being of has with well been good the I've sure overall, think others, working of we'll have help overall spread rising compression, some providers us as asset-sensitive financing about to that. that accommodate The thing I pretty there early some year. I'm in lenders point and But our feel

our should going there be earnings So benefit a forward. in

Rick Shane

Thank you okay. Got very it, guys. much

Marcin Urbaszek

the for question. you Thank

Operator

have will we question next Compass Small from Point. with come Fred the And

Fred Small

question. for Hi, Did good a weighted Thanks quarter? taking my balance for portfolio give morning. you average the

Marcin Urbaszek

Hi joining for Thanks Fred, is us. Marcin. this

category. page XX appendix, you of in look the balances average our provide we If presentation, on by

that. help So that you should with

Fred Small

guess I then didn't And [Technical understand Difficulty] Thank. I great. your fully Okay,

Marcin Urbaszek

Fred, hear you. you're can't We really breaking up.

Fred Small

Difficulty] [Technical Sorry.

Marcin Urbaszek

what, the repeat guidance, I'm Sorry, sorry? I it as to dividend and up could picked that. you relates

Fred Small

Do will core you for dividend guidance the think fourth quarter? the cover earnings

Marcin Urbaszek

I in we and of think taxable Okay, GAAP said that's earnings. as earlier, thank have income core Look, you. excess I

for next the mentioned earlier that formation couple of transaction. expect I as of the to a as result continue years, We

our dividend I taxable would to a this core at grows. look relationship company in that driver think taxable, basis expect dividends. I hard to expect Obviously of quantify as if per-share is you taxable I the But core. obviously a be our excess would it's of to our quarter, big that overall, and on persist. And

Fred Small

here maps is to closely mean, core I what sure. or most it taxable? Okay, cash,

Marcin Urbaszek

our cash. earnings of would I say is most

so would cash, to I the probably probably is that. core point think of estimate I best

Fred Small

Okay.

taxable between So talking the so the difference -- just non-cash? you're core the the mostly about understand I is and correctly,

Marcin Urbaszek

that we the accretion It's earlier. $XX million purposes an recognize as have to of difference that tax GAAP-to-tax for result discussed we a

Fred Small

a bit current forward? then half. little were level sort And you're in last run quarter rating one expect just Okay. going the in expenses G&A than there bit in anything you what the first the little a just was higher or -- on Is is of that one-time

Marcin Urbaszek

public It's infrastructure considering June, the and Board, end we that. nearly thanks. would whether say is related additional of to things I just public company costs And insurance, expenses, public and Sure, legal, of company have it's do company Marcin. the like as

it's Two hard the comparisons So of business Harbors. to when was make part

there. to of costs run -- it's say were public the of minus direct not the company And is expense rate those of plus had some in or quarter. related I in range current our would third what somewhere we

Fred Small

All right, thanks.

Operator

we next have of Jade And a from KBW. follow-up Rahmani

Jade Rahmani

any, in et landscape." lenders in of made a And competition, "Competitive comment there's from of of some provide result diminution the compromises if borrowers, if Yes, also regarding terms being Steven you're level other the Jack seasonally. color was of or covenants if to competition quarter was fourth as Specifically fees, cetera. in wondering structure I the any been any seeing or wondering concessions could

Jack Taylor

don't healthy this fourth the through and of in there's any in of capitulating that Taylor. I order for not Hi, occurring there's terms, seasonal would don't the been that think And think we lending in the quarters credit quarter. win to competitors witnessing that's we're there's irrational deals. competition couple quarter. say been on continued fourth past Jade. the the lowering I like market Thank say you, seems competition we Jack It is in would a

would there's market I where free-flowing the competition as characterize credit. price than fact, is a In more market on on there

Jade Rahmani

very Thanks much.

Operator

Well, session. conclude like Sir? would we question-and-answer now will CEO, remarks. conference showing questions to the Taylor, time no closing to back call at over any Jack I further Mr. this the turn for

Jack Taylor

we us. hosting and to again look speaking with for you joining Well, We'd everyone your support you Thank forward your and you. to thank thank we and business, like us for today, of our Mike, all soon. appreciate

Operator

thank management this concluded. may The At you all is we you you, time day. for the rest great call the for team today. conference Take And of and participating. we disconnect have now Again, time, a also sir, and lines. your your to thank also care,

Granite Point Mortgage Trust (GPMT) 11 Nov 172017 Q3 Earnings call transcript