GPMT - Earnings call transcript Q4 2019 | Granite Point Mortgage Trust Inc.

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Operator

Good morning. My name is Kate and I will be the conference facilitator. At this time, I would like to welcome everyone to Granite Point Mortgage Trust's Fourth Quarter 2019 Financial Results Conference Call. All participants will be in a listen-only mode. After the speakers’ remarks, there will be a question-and-answer session.

to Relations the for like Petta to now Investor with Granite would turn call over Chris I Point.

Chris Petta

our XXXX Granite Thank Thank you morning CIO; Marcin fourth are discuss and our call Alpart, our Urbaszek, you everyone. With Plust, quarter Point's CEO; for joining Jack and on and our COO. call this good the financial results. morning our President Steve me Taylor, to Steve CFO;

recap of business our After brief my Marcin activities will discuss items will results. our comments, portfolio key our from and originations, conditions; introductory and market our Jack review pipeline; will quarter Alpart highlight financial Steve a fourth and

SEC. and release well Form filed press as The our the were tables call associated with today's XX-Q as with financial yesterday

have you on do the copy, on or you find website website may at If SEC's our not sec.gov. them a

to are release you and review of that being in our same conjunction we is I have which call. on call this to In provided section financial today's webcast also our location. We Investor with slides like non-GAAP be of reconciliation now website would in mention accessed our earnings Relations to the this measures. website, posted may a and information the GAAP in urge

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

are the typically Forward-looking such statements of with other and and such views associated expect, words. events our estimate, as or believe reflects future regarding words use anticipate,

or sec.gov. inaccurate. may them urge and any the materially filings uncertainties on described be be correct investors consider to They prove not risks statements. from you actual obligation the and the carefully may We caution forward-looking our update rely to risks results obtained unduly at differ in to on forward-looking We to with not if statements events undertake expectations. SEC, We imply later any do website SEC's which

to over Jack. call the turn now will I

Jack Taylor

as Thank welcome fourth everyone. thank We would year a earnings morning to joining you, our board and and successful Chris commitments our growth loan quarter We than was loan a year the was like Point. strong and XX% XXXX all record direct of to originations very market attractive billion for grew capitalize opportunities. $X Granite structuring. XXXX the on which for maintaining you full emphasis while prior on and We underwriting credit we total had higher good across our you call. year,

balance $X.X higher or principal outstanding portfolio's to billion increased XX% Our year-end XXXX. than

billion fundings, of year inclusive end. total at $X over commitments, Our portfolio were future

the lowered we capacity, sources To all-in base. our of and portfolio, strategically of support growth investment expanded our our maturity financing the equity restructured funds, liabilities, our covenants, of funding ,increased grew our cost our capital extended our

million We over we million loans equity value. two-year book our Over $XXX of estate non-market above at the second raised and the reinvestment terms, issued of additional with a and year, financing match-term financing commercial of secured attractive non-recourse $XXX real period. course common CLO,

We structure, in financing significant generated million in rates We of added a facility and spreads. and lending overall a rates. advance earnings carrying decline higher $XXX funds, favorable interest non-mark-to-market lower despite XXXX, new cost short-term

$XX year Our grew X% XX% above earnings XXXX the or million to year. our net million $XX last core increased income for from to and or

of of strong total direct In again a with loans level capabilities closed XX the fourth capital illustrating record activity closed we deployment with of of our over quarter, performance origination quarter. platform. in our XXXX the origination robust pace $XXX We the commitments and million, new

in loan the strong versus quarter. and We more over the resulted prepayments $XXX million of funded of balances growth $XXX prior which over fourth million the portfolio loan X% offset quarter, of in than

we have majority of pipeline With and new of loans, investable fundings loan our about million quarter committed our forward the our fourth of record capital. $XXX

we close us providing reinvest as loans with forward, and operational capital maintain and an funding we intend flexibility, liquidity, Going new of level from appropriate to loan repayments.

continue We attractive lending the meeting the to credit a risk-adjusted over investment see our we believe accessing disciplined remains focus commercial thresholds. in with markets long environment quality rationally fully opportunities, returns generating healthy capital that to term. attractive flow of and our real We and a estate return to remain attractive and shareholders intend on

XXXX, We consisted the strong losses, nor of loan in any performance loss we created of XXXX, investments. which Since have end the our ongoing are credit the inception of our not any with we pleased business portfolio, at specific reserves. credit XXX have realized of

capital credit attractive to in collateralized continued strong located are attractive that high-quality with with deploying We markets emphasize characteristics into by sponsors. loan properties investments

investment Our investors' portfolio of across and overall a is with philosophy diversified building that well guiding capital cycles. revolves strategy an around market protecting

partial majority a as loans The vast of to LIBOR our offset rates. floors incorporate short-term declining

in was the much As investments LIBOR money last XX% less of on with quarter. our a the and we fourth LIBOR floors older that discussed of portfolio portion significant has into portfolio lower going floors our than in vintage our were call,

of sensitivity further which in money, in pressure of potential short-term LIBOR significantly being strong on rates floors growth. quarter activity performance financial a in our to the the the short-term result, our declines portfolio for put our portfolio despite funding rates. further record and time As declines over are course Currently, about alters loan the half

In the XXXX, loan generating business volume and while summary, significant direct strategically record in growing we of our of our improving company. plan, making further a strong had liabilities our originations, profile a executing progress

to attractive further returns time. XXXX, shareholders and over our We in on for risk-adjusted are excited about look of generating business the while focusing successes future forward our

to will investment call Steve turn more in I detail. discuss over activity the our Now, Alpart to

Steve Alpart

size to morning. size loan of in average in thank terms XX year $XX of Jack, XXXX. average with across and $X for joining you, directly Thank million, $XX originated business of record million a volume. about billion you compared total loan our loan investments, call this all for of our production XXXX We new commitments an represented an

would efficiencies of $X.X of the benefits loan average balances that and will commitments. larger increase, funding us loan funded our as scale. size We we our loans additional of grow continue to and further We additional total to pre-existing business, allowing expect new of in million of XXXX, from over an our $X.X about billion of comprised of $XXX initial billion fundings realize

of balance in commitments. the for to billion of prepayments record $XXX loan loan loans. by future million, about by fundings end at the totaled our manageable which outstanding of composition about our line $X.X portfolio our year-over-year the and about was of with Our year principal of funding our prepayments, seasoning expectations the and $X XX% considering our portfolio inclusive balance XXXX, increased largely XX% Driven and billion or

declined of repayments with course X.XX%, historical by credit XX yields. to combined the of spread LIBOR plus higher our about on on aggregate the by Over portfolio basis loans driven investments, the with spread points the year, new compression

XXXX, During continued to tighten. loan we spreads see new

significant the we compression With in spread part year. saw in of latter rates, a decline off of short-term the a leveling the

continues senior to portfolio markets well over and and our across is investments. exhibit portfolio our stabilized and XX% weighted is credit characteristics strong sponsors. loans average comprise Our across XX% diversified of The LTV property types,

of strong and $XXX three our the in million of We XX fundings. XXXX, which momentum consisted loans fundings of $XX loans record closed loan with of total million last over we originations of another We our Over terms million. loan new funded and over continued and months commitments of quarter loan commitments. balances, initial fundings new of of million pre-existing about $XXX $XXX had of

of high-quality secured exposure. properties, by originations year, a QX theme the the loans Consistent newly mainly which geographical full with office the are originated for sectors, over the have XX% and well-balanced and multifamily comprise in

Our yield of of and experienced a weighted LIBOR fourth weighted average attractive characteristics credit quarter sponsors, plus have X.XX%. originations stabilized a average LTV XX% with

about During of amortization, the realized and driven further portfolio. primarily prepayments of $XXX the fourth principal quarter, we seasoning our by million

we To-date, $XXX to of of Turning loan over initial which aggregate new commitments million, our about have million generated pipeline. $XXX carry fundings. forward

expect by quarter close conditions. to closing first We of loans these the typical the subject end to

balances, have commitments. we about our of million over $XX funded from prior far, includes funding So $XXX million of loan which

office, and stabilized XX%. over low mid loans hotel with estimated includes profiles in below and collateralized by to a and average credit pipeline Our the properties, an LIBOR industrial weighted yield LTV average weighted strong XXXs

anticipate year, $XXX million. realized first Since the the have repayments prepayments. in over loan the we end loan of quarter of Additionally, of about we $XX million

overall to we of originations will strong see the opportunities. attractive economic current and balance as the as market environment flow Looking capital lending investable continue our XXXX, annual our further lending availability on of Considering largely into well volume conditions. sheet, depend

$X season, XXXX. with minus our repayments of as plus principal our balance portfolio over we about our or outstanding portfolio's anticipate pace prior Consistent in continues or XX% loan experience, billion of of to a

predict to difficult the timing vary actual prepayments time. will are and over of volume they However, as

has company that and as We estate years market the well-established of amounts attractive year with a production of capital in several Granite commercial business public counterparty opportunities. to following into platform record real deploy and significant direct our after Point presence a a of in lending are fortunate a lending as brokers repeat the roster borrowers can strong that reliable efficiently lending origination volume,

the to and on our continue business in execute grow future. our We strategy

have that value time. confident franchise over to will we are shareholders' created benefit the accrue We our

now call turn the will a results. for review Marcin financial I our detailed more to of over

Marcin Urbaszek

this morning. Thank joining Steve, morning us you, good and everyone. Thank you for

balances. wider credit of realized healthy our loans reference fourth quarter. in growth volume Our our our net in quarter increase points portfolio and million with interest Lower of fourth the originations larger loans of strong in originated historical than XXX originated spreads those about spreads last continued X% repayments resulted growth newly of repayments point loan trailing versus and about of net carried that the the The loan loan versus resulted basis during fundings we that and our LIBOR a $XXX in topline higher the we quarter. quarter during on portfolio income of

the overall driven income largely and interest spreads also The expenses our in per versus yield slightly and share interest $XX.X income by $XX.X about our versus higher net to earnings XX lower remaining our million in relatively costs. cost was per quarter. Increase funds financing in by million of of $X.XX unchanged by operating per realized rates the our that net on related declined points short-term offset was share margin core other about compensation expenses, or basis Despite $X.XX our relatively declined of fees certain in of portfolio professional fact third remained higher as stable, net assets. our QX resulting in new increase QX the $X.XX share and or the

XX was $XX.XX at share. Our per common value book December

our increased billion. from the Turning to on our growth credit liabilities. the over Along $X.X portfolio, of $X outstanding to our with facilities balance billion

one our remains inclusive capacity, of borrowing facilities to unchanged billion. total at option Our $X.X relatively upsize of around our

deployed our prior period, portfolio. liquidity grow we quarter, course the fourth the excess from Over us to of the which allowed the

total debt as leverage debt and repayments. the new times would nonrecourse We above times. leverage times, X.X was we leverage times around recourse three exceed our debt-to-equity significantly loans remain total to to Our equity X.X expect but including to our our capital CLO non-mark-to-market increased originate redeploy not to X.X at from and

the our have for risk rated quarter, and the risk of into million and part committed $XX over from up This portfolio's our moved category loan little Movements and a During quarter-to-quarter lending down the for traditional loan business. time balance. regular risk in account a rating we X. of we other only are X% fourth rankings of total a over that

expected the briefly current new like losses I'd accounting or credit standard CECL. my end discussing on to by remarks

of As became This loss X, lifetime an with lenders reserve few be Point XXXX estimate Granite companies you zero of and a losses similar record cannot for January public that to on our know, requires a other reserve CECL all is upfront, and exceptions. loans. on may effective

analytical losses the loss help or with loan of we lack a a elected combined us business, reserve data loss CECL estimate of the subset Trepp default initial loss to since from reserve. model Given loan license our use inception of to historical specific our given

loan CECL on value. we commitments, our which impact expect or book initial about $XX.X equals an in record reserve to our approximately per share points million, aggregate basis $X.XX of XX-K, disclosed XX of to As

the CECL XXXX, will reserve be of with Beginning income. of first any additional reflected quarter in adjustments our the net GAAP

the of please to XX-K. CECL our discussion further For refer topic

some us you Jack I back for call for again now Thank remarks. joining to And the turn will additional today.

Jack Taylor

to you, Thank related I topic our additional one want business. Marcin. address to

on agreed has behalf have of As our with of Directors our also yesterday to internalization Point the press that to we function. Capital company's has Pine committee release, manager this internalize Management been negotiating in you seen L.P. the River Board may An announced process the a independent Granite management of external company.

to internalization, continue management employment. In the employed the the who strong be of along providing completion offers to services current company whom by by other expects and Point, committee to managed with the personnel of with River Pine team, senior connection to the currently expects to extend are Granite independent

as Details are once expected agreement documentation delivered we be announced the time further not regarding legal there And provide are in to internalization consummated. counsel, a final finalized at executed definitive any and that process. that several this can and expected at assurance is to no position months. time. be by There And be directed questions will Also, to to related internalization we a the information, this in be process. to are can no respond

to us joining today. now again the I And questions. you call to Thank will ask operator the open for

Operator

Jade is question first ahead. Our Instructions] Go Rahmani from KBW. [Operator from

Ryan Tomasello

a I Ryan the Jade. on for XXXX And near-term is from thought as then with the the as if Fed's the what to This was a outlook on portfolio, questions. the respect earnings? expectations that follow-up wondering talk rate this quarterly of for well is is level everyone. morning, the reasonable floors earnings morning. board's move based current for as particularly core to the run pipeline Thanks of your you impact leverage taking relative the could assumption considering for Good expected current about current your LIBOR rate dividend EPS? to run What

Marcin Urbaszek

for Ryan joining Good for is morning. the Marcin. Thanks Hi, questions. and us thank this you

here. questions few a there's So

floor LIBOR Steve So I'll I'll have the and then address question. take Alpart a couple

correct. filed said just that. as for Form so we me XX-Q not We apologies let First obviously XX-K earlier,

on terms the not our may predict hard it's -- earnings. year look, the of our rate exact or to is not In run may guidance It's the be. for what provide earnings hard to policy any to numbers

around. prepayments can rates moving imagine, predict. moves hard you really fundings around with with portfolio new and As It's short-term the to and spreads

So I'm provide going that. not any to guidance on

the leverage, times a quarter on seen have you equity ended debt we of In as basis. roughly leverage terms to with X.X total

X.X if of that leverage of target. We manage if additional we over X and the we to the our that sheet expect will capital. X.X as reinvest capital balance and X volume think our But have Obviously prepayments. we about may or raise between be year vary, I as would course our large

the call forward. profitability our dividend, the several obviously discussed are we've that dividend our factors as going In on terms there last affect of and ultimately

ultimate through Our core a of long dividend. on power profitability focus the business around board remains our over dividend And the supporting term. decision-making obviously has the the

our not in have our fact that returns returns the available The the down factor We're last our of for strategy over here. big the come years. couple to obviously market oblivious

we It's significantly some CLO -- last actions forward at that static today closely improve first look we're structure. generate factor. to of we that taking efficiency the that's may it. a that call, our we as mentioned the So and and issued returns on our I take at since it's we around we're what a looking something has transaction some that delevered

announced as can and the That Additionally potentially will imagine dividend the you management. of to the we know, internalize impact process some the company. you profitability have on as

So constant regarding as with the any sees level and look necessary in discussions board we're appropriate. we adjustments dividend them as will the our board announce

Alpart Steve the I'll let question. LIBOR floor answer

Steve Alpart

Good morning. It's Steve. Hey Ryan.

the going as December in floors into a XX% LIBOR on that was money, LIBOR money. the over that our little And of also in about the portfolio about now. in earlier have of year-end. remarks we by So Jack floors are we're call number mentioned had his the -- XX% That into XX% mentioned that

short-term extent be there kick have new floors to continues a loans impact at the but that that floors will will on positive to we're LIBORs lower positive portfolio the be LIBOR LIBOR XX% the has in continues LIBOR to floors About on Obviously LIBOR those continuing drop. to originating the now to coming a down, extent so that there portfolio impact LIBOR will of drop.

Ryan Tomasello

for Can the general LIBOR. that spreads widen seen, for where we've looking over pipeline, recently? think with recent if the then all to in if running for guys. And in portfolio -- say low you XXXs you color maybe the you've I help ROIs volatility, guess are overall mentioned the And pre-expense Thanks at today mid and that spreads I pipeline? seen

Marcin Urbaszek

Ryan.

of that So that on to we specific we double-digit returns in any see depending continue leverage specific in look kind asset. returns terms low return of financing ROEs. is Obviously and a asset the have levered on

returns see obviously kind to part. last Steve of the answer I'll let the of couple down still low a we those years So in Alpart bit, as double little have them over other digits. come

Steve Alpart

Sure.

always terms I of mid-Xs that, in some minus. covered right just That's over Marcin particular said but a low in could plus but to quarter. to function LIBOR deals vary the we based think for a the now. of by So seeing we're this, year-end specific be kind that's QX looking we're in in what yield at of what going And and or what closes obviously on of earlier spread call that we do

As over some not for particularly the XXXX, of of to mentioned, see move far last just predictions years as LIBOR with predict that that all happen. couple was We Marcin today, as might candidly from what Fed of it's tightening the spread did going hard up.

It lot remain spreads what will they're type kind the now I at down that stabilized going of out, but deal be remains -- we've seem particular to size Fundamentals to range have Whether been a depends the really think seen. widen asset the factors any strong. asset play. on location. in a has been LIBOR they've that of Now seen spreads and there's

Ryan Tomasello

how million four the you the to Any downgrade? the And rating. the regarding sponsor and led to there color evolved? on And the asset risk highlighted business of what plan credit, that's the $XX loan downgrade

Steve Alpart

Sure. it's Steve Ryan, again.

XX/XX So portfolio just overall the quality at was the of high. credit

non-accrual We no impaired are or have loans that status. on

overall. So very we quality credit feel good about

the QX question on to property. a we in property risk ranked business newer in by also Kentucky loan far was a issues property specific As to secured because the that's plan as behind a the X your other vintage relating student about loan housing and

borrower. also than some loans loans credit asset. loan no As to of the with we exceed, discussions as according other we're in monitoring other earlier, quality or major perform are the will this that detail. It's entire preliminary four will nature risk always plan, lag concerns the referenced high this the further early and five. we're on And Other will Marcin mentioned the too monitoring go is do, we're And this that business that loan some the into we have have just And portfolio. performance. no Marcin level we to or some closely but ranked

Ryan Tomasello

taking Thanks for guys. questions the

Steve Alpart

you. Thank

Operator

Our from question Suisse. next Doug Harter is ahead. Credit from Go

Doug Harter

quarter. Marcin whether you had Can parts XXXX, higher Thanks. you we mentioned truly was in G&A talk that you some this one-off should this of more that in to of if just expense expect the continue early nature? about or the

Marcin Urbaszek

for morning. good Doug, Hi, joining us. Thanks

of I some announced well. expense think process professional as certain fees. was internalization associated related to the with said increase we I as that the were They

this would incur few would hard a be of it's the next nature. we So nonrecurring obviously related costs to But to say, some process predict. additional they but months, more I over may

modeling the say be QX process. assumption. would as depend being quarter-to-quarter. the purposes our But for decent will probably our using run variability there on the will of expense As it's the structure near-term outcome But I some rate for a obviously internalization looking obviously into overall your future, time

Doug Harter

then as and And the about to thinking of options talk can for magnitude look how those from you're potential options? you CLO, about -- of savings first the you just options whether at size All right. the

Marcin Urbaszek

static when think on it, Sure. we this we have a Look with deal, in I a two-year May. obviously, we issued issued it a view which period non-call deal

over pay that in details the the really with. can off There as don't different up deal $XXX come you million that I loans of get in this we financed loans. tackle this can we year. a imagine of potentially all couple want But would that into So as around are to options of it. May

around repaid. say those would I Initially, somewhere have loans half of

You math can leverage run portfolio profile those the changed. the on that to how as has on --

put can at I assets, That's relating the released may that the loans new asset capital potentially which to this the some as accretive definitely on those as level be on. go be on far from from that there's depending probably that time. returns would returns So potentially we've

Doug Harter

those So in I assets, able you that guess change on that is to company? leverage guidance X.X gave of there? that -- if last that for Or you're three overall to the just relever incorporated some would

Marcin Urbaszek

it will leverage. on type depend think I of the

our and in financing, the considering are it and our credit leverage. think focused we very really structure of on will X.X profile, which three would If we staying but liabilities. current with nonrecourse lenders, we the our beyond to can market the I non-mark-to-market risk leverage we X.X refit add issue for as good other potentially X.X. to believe counterparty say may I CLO We're comfortable the our around management term-less our and we go on are able managing depend to

So on X.X time and happens what three to for future. the being the in depends

Doug Harter

Great. Thank you, Marcin.

Marcin Urbaszek

Thanks.

Operator

is Laws question from Go next James. Raymond ahead. from Our Stephen

Stephen Laws

Thank fully you about or you portfolio. consider can things With I maybe the guidance options you. may Would spreads or less and the additional in at look stock for offering another money? along hit more things talk been morning. lines? current of on invested those appreciate capital number raising have you and given the other Good A convert on valuation, here

Jack Taylor

will Stephen for question. Hi, We we your using have not loan that manage invested. our our through XXX% to fundings still Thank Taylor. are be and timing. this Jack is we you capital Yeah,

about now XX% be up we've ramped our to prepaying. of We that an will before of as said have we've expectation portfolio

have the comfortable of at and we're to $X.X billion $X to to of do be so $X.X years billion very loans about per over originated billion two loans able We year. last

largely lending will the of investable be additional with and environment, on capital. stable continuation of our economic And alluding dependent the as are attractive to conditions availability you growth the

would now we're on capital working are this say growth from able market not certain release detail portfolio any that at would I allow right that things convert but into us go away that point. the for for would We to

Stephen Laws

Okay, it's you great. or think the as a I touch on through portfolio of and follow-up those guess of the went as And about total but I $X kind billion internalization, of duration annual little commitments this easier year, forward. as a of three-year good for company to kind we along lines kind the but math a so billion we know it's size turnover. especially, time look of lower $X.X

As production company, with employees. of for of? what an managing think much as you you're portfolio? not managed from internally is type realize anticipate a the annual I But do you at capable look the the do you outlook larger changing growing day-to-day company how

Jack Taylor

our can -- the producing of are questions why team a continue originations two that investable on capital. to limits of The there's the That's availability we has volume this place really in earlier large Well there. do that. been really and that's said I little

and personnel we it, time to grows handle grow be portfolio. a company adding this to will As over incrementally intend we larger

Stephen Laws

so so points from of forward. the you've on standpoint I Great. think the on Q&A a I on Marcin but going far, CECL, the through hit touch really remarks GAAP and wanted prepared to most the model, moving the financials key

bit stable your just with drive outside portfolio with or shorter Is about leverage? else give going pay the think reserve kind through take might are going What credit CECL from we low-Xs duration? should year as assets that the a current CECL of the little the longer How it the going to off in increase assumptions duration day of one a and forward? -- you deterioration as replaced in reserve

Marcin Urbaszek

variety CECL well is for you're maturity I Thank expectations as Sure. different economic as Look into question. projection the overall input Good one Long-term it Stephen. period. and assumptions. over as credit Obviously, morning major the of the the is of a for depends reserve conditions a our well them. on think aware you of profile assets

hard So, happen. it's really going what's as to say to to

off. older with will loans in coming paying I think happening offsets you new have loans

weighted duration is significantly the unless I think So, of we relatively the be -- going grow portfolio average is probably stable. to probably it

barring any now million don't changes some right -- single for the reserve payoff there because CECL total obviously is asset. of to change reserve loan to quarter-to-quarter will the as of the reserves market loans variability a be reserve we specific $XX.X for expect But every the as environment these the obviously on initial But significantly. combination estimate massive

there, So, significant. there here wouldn't and very some to be be I expect but it movement will

Stephen Laws

the Appreciate much. very Great. comments. Thanks

Marcin Urbaszek

Thank you.

Operator

[Operator Instructions] JPMorgan. Our ahead. Shane? Rich Shane from question next is from Rick Rick, Go

Our Jade Go is from KBW. next question ahead. Rahmani from

Ryan Tomasello

is Hi Ryan for Jade. on everyone. This again

broader conduit Just other or to interested management that the add as potential is earnings would CMBS business the license. adjacent to lines, business to I and guess be creating regarding the come the acquiring in multifamily to business capital acquiring silos as profile? diversify mind deployment and well would potentially a GSE

Jack Taylor

you. Thank Taylor. Jack is this Hi

and lines that term. mentioning business towards would past, do something currently active near of discussions we've others. time are in to type over moving about we over that anything continue But say so. is we'll you were time to that open the had just have our the not discussed and As we the diversifying I we in that it like are

Ryan Tomasello

you this just that leads run And in a Okay. to coronavirus, and the any through then, regarding have the impact business? disruption liquidity prolonged case more that scenarios and might capital how significant markets

Marcin Urbaszek

liquidity Hey, and we considerations including yes, manage basis on different into our take our liabilities it's we risk a appropriate. Ryan, as account, it's conservative Marcin. profile Obviously, and

disruptions We the market. not any seen have in

our We loans. funding have no issues

up fund us. to happy are lenders with Our

couple commitments recently We they to extended a their you facilities. upsized saw, as us. of our And

medium-term our in or the in the excess near-term our market. commitments, So feel we with covenants, look comfortable happen of that, not And I and liquidity may obviously, pretty profile of but the we, look at what at may company.

this I have concerns liquidity wouldn't specific related to So point. any at

Ryan Tomasello

up. Okay. follow Thanks the for taking

Operator

ahead. Our Rick next Shane Go JPMorgan. question is from from

Melissa Wedel

for activity going was if outlook Melissa fee-related realized in the repayment prepayment during any you have about Rick Wondering quarter. guys as any was is This quarter? question if the there for forward? morning. And Good on Quick income the today. prepayment income that

Marcin Urbaszek

This us. is Marcin Hi, Melissa. for Thanks again. joining Good morning.

I we prepays discount So of of income we we of the had fees, elevated some say that, definitely loan of $XX,XXX. recognized a obviously. prepayment the level with about last additional amortization bit quarter; that little will recognize

prepay those fees early, faster we them as they So amortize quicker. and recognize

I probably would that $X.XXX between to in that income and in say range, $X.XX in the line. that's interest QX somewhere impact our financials $X.XX, embedded in of the was

prepays variability forward, run hard at of for have which our Steve it. said minus our prepay, looking portfolio which billion, to prepayment a to quarter-to-quarter. really loan and $X be rate. And the XX% number it's that will just over principal fee of earlier, plus with may the There year Going assuming we predict, or estimate obviously, particular balance will, the

We little would more evaporated. one delayed. example, of have of the still for quarter, in where had that expected And -- benefit the as bit income that initially result, a fourth got we loans prepayment

and really basis. part a be hard So it's business a that prepayment hard predict. of on it's to say it's to we going quarterly I they're but here there, our will fees would have predict really what to

Melissa Wedel

what you're the much. very decision question, that And the a as then wondering follow-up very you was management. about was guys much internal to touch to internalize around process able management. understand the Thanks on Understood. talk driving if Okay. can't I

Jack Taylor

reasons Hi. Actually, having we with can't anything touch the This to or the process do on is Jack. itself. for

wait more later. you So we'd speak to able to ask until we're

Melissa Wedel

Thank Understood. you.

Jack Taylor

you. Thank

Operator

Taylor like the This question-and-answer turn session. closing concludes now to remarks. over I back conference to for our would Jack

Jack Taylor

it thank our with everyone's we business appreciate to you and for and really like forward we speaking us for We'd you. look to soon. everyone all again of and joining support today Thank

Operator

concluded. for The Thank you conference attending today's has now presentation.

disconnect. now may You

Granite Point Mortgage Trust (GPMT) 3 Mar 202019 Q4 Earnings call transcript