GPMT - Earnings call transcript Q2 2020 | Granite Point Mortgage Trust Inc.

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Operator

Good morning. My name is Sara, and I will be your conference facilitator. At this time, I would like to welcome everyone to Granite Point Mortgage Trust Second Quarter 2020 Financial Results Conference call. All participants will be in listen-only mode. After the speakers’ remarks, there will be a question-and-answer period. is event this note, being recorded. Please now Chris Petta would like Granite to to over call the with turn Point. I Investor for Relations Please ahead. go

Chris Petta

introductory will joining COO. Taylor, Granite Steve and and Jack call Steve our provide key filed on financial our yesterday comments, the market Marcin you, our review associated good results. CFO; morning everyone. Alpart, activities After brief a and me you Thank SEC. tables Steve today’s are CEO; the this Jack and with Urbaszek, highlight morning, financial financial results. with our current With as Alpart Form business CIO; to President call The XX-Q Plust, recap second Point’s for of discuss my call quarter and well press our our items XXXX will portfolio, our were conditions. Thank from our our discuss Marcin release will and as

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

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

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

John Taylor

of borrowers by and of critical the is past good to managing experience welcome our through of our ties the XXXX approach. our our approach to and our has stabilizes what to we initiatives and to new benefit sources Chris, not both you, a rather is morning, also quarter business and and like have for value preserves We asset this the do of and all believe have better value relationship over support thank beliefs expanding potential primary core, and core earnings Thank multiple quarter funding take explore us Upon advantage call. would months the productive goals enhances investment attractive report our you These investments be that our for you significant second a to for our extensive company balance presented turned then. uncertain future. on efforts progress They our and environment ultimately Maintaining swiftly our led operational and lenders. since I’m sides We have second and position management strong, of industry understand liquidity value that the opportunities actively of the managing have of change, assets long-term and emphasize preserving we we to at number we business will stockholders best and the our which its that needs reinforce franchise continued in our onset happy sheet. liabilities. historic but our our in to to the joining company. it our to the we this liquidity focused This to the through maintain COVID-XX a and made challenges country, and preserving is everyone. cycles, pandemic, built. attention And our focus, Through

we capital our XX% have partial worked cases, period properties. commitment the of properties. of debt relief continues number some their of payment of further portfolio for borrowers no our well a the with from we Our the with payments Along their strong, borrower non-accruals as provide made perform have form deferral have exchange in borrowers very short-term quarter-end, with over majority their pandemic with our had or the interest accordance their a impairments uncertainty. impact to on this of those to collections that meant loans. service through of to of them At In and been the has in of performance, terms strong

mentioned billion margin margin cash compliance of into with Regarding on active time sheet an in proactively reduced We lenders, balance for we repurchase have and our as maintained using facilities of stability. total by don’t representing on financing borrowings we call, $XXX million are call dialogue outstanding and additional our on any balance. financing constructive combined with our last creating entered liabilities, $X.X and and all covenants holidays We outstanding providers, unencumbered about and our of with focused period of demands. three a have collateral a of all been

considering focus further we and financing our to on by stabilizing However, continue pandemic, facilities. liquidity caused our the market improving the uncertainty

to million liquidity, first unencumbered opportunistically a hotel previously that we risk-rated step $XX As loan was an generate divested early for.

discussed Additionally, to Evercore, the and various our explore we as alternatives quarter, for with environment adviser, position began longer-term current for financing and we future process opportunities. the a financial better to company last

from our from the be taken our on in have interest will we our flexibility. quarter-end, progress sheet institutions that very and as a our sophisticated who high-quality multiple further additional assets. recognize well raising partner. Based liquidity of generated by balance we improve also a capital are institutional value substantially sheet to has Since optimistic steps achieved, strong have position process to the Our strengthen we as we balance business,

we of increased in which period disclosed $XX of time, our for X-K As one a facility filing July, borrowing early our in financing and amended capacity over of largest generated million cash. with lenders we our our

during to with our of of Our our assets and ability grow counterparties quality our relationships. key of strength financing volatile one this the our speaks the to period partnership lender

generated sale after $XX prices, attractive completed balance $XXX total our loans a million strengthen a at million quarter-end, about and we commitments of position, additional six proceeds. further to and million, addition, In with principal of over $XXX liquidity of which of

to repayments any summary, continued next. operations any funding optimistically the of liquidity our not As our Steve us earlier future portfolio over in the focus net floors quarter We the have the repayment LIBOR actions, the the sold $XX our originate state second the to be part timing But in quarter, existing in interest very by lending loan will the providing to our But liquidity. rest higher manage predict realized We seeing overall second portfolio. financing of current second was the efforts, realized prior as year. full of based operating in of as our not our the with to the in our though, maintaining significantly income results us our Despite quarter-end, liquidity we loan over million, a the we exact repayments showed losses since receive additional result a expanded which funded longer-term the volume we on commitments, loan of aided last we with as quarter, Friday, activity our Alpart portfolio, loans more did anticipate strength quarter, discuss and partners. of about would loss our by new as markets. and of the did initiatives. on these $XXX our as liquidity. for continue progress ample loan provision We is cash million near-term, approximately financed our was in some hard the providing balance with on

and last opportunities. response of and We’ve the a success We large-scale implementation require environment With the and current protect rolling degree performance continue, COVID-XX in shutdowns strong during returning. stability our over medical eruptions few that and with performance will of team accomplished and markets positioning company major proud take and the Although is lot market capital vaccines. portfolio new our regional entire made may ourselves market more suggests like In lot for probably uncertainties. of major of to recovery and a pleased our treatments very that of better quarter the of opportunities second our economic progress solutions, economic the to advantage accordingly this the fundamental effective future months further I’m to for and summary, of environment. position a in growth portfolio and the are

overarching to stockholders time. protecting and further the enhancements on for continue goal over with value of will our We increasing work

the confidential terminate internalization our Now, over will has that arbitration I currently with Steve company amounts Alpart, an XXXX. it a to before arbitration, in X, turning third the payable taking fourth of the that delayed entered final In like on agreed to Because binding place the the consideration turn during function. determine to one based pursuant company the call into or XXXX, detail. manager agreement questions conclusion the internalization will be or the Steve call arbitral be Alpart In COVID-XX to company’s with any to over hearing and to portfolio the the and management comment. discuss to obligations connection now and confidential of manager. undertaking has expects the the and to manager’s process. the company The process, And of been nature company the the agreement quarter to process more management would any to the it the of pandemic. agreement the into of manager, not we internalize activities of recent entered company have between manager’s the manager hearing on announced this the a take process. following arbitration the to by the the On March other

Stephen Alpart

joining Thank morning. you, Jack, our this for thank and call all you

on with impact from market as credit and few portfolio lenders, the manage a performed our from last pandemic remained have market the our has the through environment, management as Considering and commercial borrowers months, well believe period. we on COVID-XX very asset estate real has we that focused far we challenging constructively economy so perspective. persisted, and this this Over working

defaults. borrowers collections we our XX% their their service were June payments At had of strong making maturity XX, according non-accruals debt no impairments, Our with to in over or QX, term.

proactive the our amendments. of for asset with XX. estate these involved operating been of our have environment, our discussions management part given in strategy commercial As we various of and of borrowers loans, amendments of and which at hotel retail and regarding accounted portfolio engaged loan real discussions XX% our have current about June many Most types

to has commitments position with been through to this and Our improve borrowers majority cases, provide are further in financial requiring property. period, the sponsors approach our our time to challenging their of the manage make to

in the resetting part, to loan reserves of portion form relief actual LIBOR. cases, in reallocating have floor For rather LIBOR the granted most than the deferring waiving interest, or we short-term some of the of majority

navigating equity who in a embedded have protecting and the borrowers their institutional business through sponsors on disruption. high-quality strong of remain We their while collection assets, focused

associated of we believe The there will to four market During as reflects them economy quarter, the a ranking but pandemic with our are four mean does assessment real to the loans in a be loans, not estate June category associated the the to with risk growing of four. difference second to losses XX on that the whole. XX a risk the largely impact – XX downgrade moved March these from we and on COVID-XX ranking and

loan. As related the retail movement you to in might expect, most the our hotel ratings and risk of

navigate these We market and monitor our as times. of we investments, across uncertain continue all developments will property-specific all to

XX did not any loan continue realize originate of million quarter loans preexisting Jack including We our to did billion, approximately of portfolio and they of constructive $X.X business. and loan June The billion funding repayments. lenders not the $XX future and As finance, principal any funding commitments, balance commitments. future our supportive we mentioned, during our new remain of as funded full our which as approximately was $X.X outstanding

as June portfolio across types highly Our is distributed of XX sponsors. geographic wide diversified of a XXX of markets, range loans and property

sometime. first But over at totally continue XX% our strong our average we continue investments to or as six about first the months are estate of we real events, process performance. for immune do had repayments. to of renewed origination to the was of June in credit mortgage assets expect several As of realized of given CRE stabilized not some likely will is COVID-XX market, senior the sponsors and year, properties, a our XX, $XXX sell loan. to weeks, the million current loan debt to on over We some have refinance $XXX capital of LTV be given XX% little the the portfolio But our credit exhibit restarting of impact Through the at we their weighted believe market. activity repayments, million last which

quarters. than pace expect significantly over lower months to historical next of repayments We and the continue few

we of credit recently to portfolio. and economic our liquidity keep and disruptions. In different months, long realized focus our on careers we coming view management. the our quality have this of repayments in business, our asset, we successfully the cycles the Over many liability navigated However, expect reinforce have market

call time and of we a in team’s well as As activity establish our Marcin now We have real respected transaction take sheet to result been reliable months results. extensive relatively in in of over real return commercial as market, as advantage a a will that Granite short position turn in our period, financial to attractive returns to coming risk-adjusted further counterparty. to a the market of emerging to presenting the review and broad we estate more Point the stabilize commercial I believe the experience we select detailed for and market, estate be opportunities, shareholders. balance our a will able begins to our

Marcin Urbaszek

morning, good and call. Steve, Thank our you you, for Thank everyone. joining

of Our challenging portfolio macroeconomic continues well environment. in to perform the light

economy by service remained to not market, As commercial would to collections future. debt $XX.X see hard but be surprising on of pressure increased borrowers quarter. it given disruptions Aided the make to $XX.X million $X.X embedded interest on predict million and the the of have strong, Steve income the ability the our second the real mentioned million LIBOR forward. ongoing for loans, estate first And loans in quarter our our floors by versus our is to our going about earlier, to net some it payments in the

was provision This $XX.X forecasts our losses. benefit $X.XX this in per of the was third-party and million, largely on us COVID-XX more by result a than However, CECL modeling employing or loan that impacts offset updated pandemic. share for higher provision macroeconomic reflected further

$X.X realized of million, as Our we which executed opportunistically results a on liquidity of sale management. share also or our $X.XX a loan, loss part unencumbered include per an

net a $X.XX and compared about professional Lastly, GAAP our higher a factors bit QX, expenses quarter second advisory were to All fees. share. operating due to resulted in mostly or million, loss these $X.X of per

just loan reduction aggregate $XX.X were of or share per second sale loss application Our included XX for result the of realized I as on as of per share and June of the was core $X.XX the per include Book adoption CECL mentioned. the share $XX.XX a quarter and accounting impact the and standard. the earnings million, $X.XX value

Additional impacts can our be of on Pages details presentation. CECL on statements regarding X our found earnings and financial X

sheet. it focused and our to balance best persisting while to prudent caused alternatives continue team on further macroeconomic believe to continue our Directors pandemic, our interest to uncertainty of and explore by the the management, Given management longer-term Board and unprecedented we strengthen in conditions financing remain and liquidity

Directors XXXX. of quarter temporary As the dividend of the of for suspension a result, stock Board second to decided common continue our our

customary continue of future distribution dividend requirements. considerations, respect will market REIT-related based including quarters upon and policy in evaluate conditions our to We

XX, As of $XX we undistributed in taxable income. over million June had

provide Our long-term goal to with is income dividend our stream. investors an attractive

status, a continue Board test. take income will with Directors measures our any ensure requirements to we maintain monitor our annual which an We distribution meet REIT that to taxable as and work is to to of reminder, necessary minimum

sheet. mortgage about first $X.X senior unchanged as balance XX% Turning and outstanding balance was of of loans. The it was portfolio largely June to at comprised our XX billion

our since at million and repayments to executed GAAP XX our a earlier. debt the times, total result the was million CECL decreased of impact loan of of equity As recourse of the leverage non-recourse, mentioned week, and on select activities over of and last $X.X the last with We few including times X.X of quarter-end. cash had We quarter on X our the divestitures equity. to billion debt also as which ended reflects CLO leverage, loan about both weeks of X.X $XX non-mark-to-market August and about about reflect realized approximately portfolio the balance June as $XXX

a Finally, I loan recap conclude with would losses. allowance for quick like to of our

earlier book about CECL basis million impact CECL commitments statement for quarter, As I XXX cumulative the total recorded related losses loan loan of reserve of and of in provision as $XX.X a The points during $XX mentioned our value in million, XX. the of our our of to second income or we share approximately $X.XX of represents application per is total June QX.

provision estate for losses the the to any pandemic negative recorded is and QX related on largely real continued losses to in loan or broader our outlook specific loan not Our is and portfolio. in to impairments the market economy commercial related

questions. refer today. ask And to further of joining our the now, For topic, open for discussion operator to the to you, will XX-Q. I again, the CECL please Thank us call

Operator

you. Thank

first comes go We with question-and-answer begin Steven question from Laws session. now Instructions] Please the [Operator ahead. Our will James. Raymond

Stephen Laws

good Hi, morning.

they was have around I been remarks give on the color, believe, any your to third repayments? since million full us it quarter-end? in those you have $XXX the comment, prepared Can partial your follow-up quarter, to repayments Or Jack, date First, loan around been repayments?

John Taylor

amortization I There but something, a tad may believe. loan been of full been don’t repayments. have or have Those

So repayments. those are full loan

Stephen Laws

Great. you in you going? PIK I of us example income And, that’s those deferring, different few mentioned an place Have of in are Steve, much Can equity? maybe you modification had discussion. type sponsors modifications? things How any taking a give or think, conversations more contribute those the how you’re

Stephen Alpart

Sure. Hey, Steve, us today. good morning. for Thanks joining

mentioned, service So specifics amendment number of as in describe short-term, themes three amendments common the defer each we for it’s – are about but majority of modified months, a the we’ve portion these modest nature. debt typically I The The vary, months. as would of of a loans. payment as a to are I few

it’s by LIBOR typically the repaid to resetting we requiring As be floor my in some I remarks, cash mentioned, equity. put also to sponsors tapping earlier we’re actual typically in giving We’ve of LIBOR from borrowers And mentioned flexibility as into reserves. actual to been additional flow.

specifics vary, some the the So are of those but of one each common themes.

Stephen Laws

How lastly, believe, do million, you is around unfunded of commitments? drawdown the how much much $XXX money? of good the about of timing unfunded And the be will news commitments, think available remaining I down How now? drawn is Great.

Stephen Alpart

The pace highly market, this the mature, that loans in to In loans – may the fundings before And the we well, are would market. they happening and flow. likely Sure. of expect depends bull future are fundings timing a in when would all the in drawn. on before extend refinanced being variable obviously loans is what’s are pay off environment,

that And environment, your couple are a seen we for pause, the significant of And last do amount Going slowdown this the in in would that assume I all to certainly, good part over a a purposes months, money. future we’ve fundings drawn. liquidity of would leasing. the fundings we say, relate But expect slowdown. – future question, of to news of

Stephen Laws

appreciate Thank you. the I color. Great.

John Taylor

Good from for your to Thank hear you questions. you.

Operator

DeLaney from go ahead. next Securities. comes Please JMP Steve Our with question

Steve DeLaney

congratulations on in progress Well, last the since up the May. call good made and where… that’s been Picking morning,

John Taylor

you. Thank

Steve DeLaney

loan Stephen …sure. Picking off sale, fundings. the the up future where about left

of comment I which the six your requirements types The you risk third can funding sales? types of reduce you with were on sales in line if could what’s quarter and remove or average, loans. objective size. million, specific comment any some But average give loans your it like in loan color saw on to credit loan – that Can of looks that part appreciate here on $XX near which loan you it million future you was about kind that to loans? those $XXX is

John Taylor

Steven, Hi, this Jack. is

Steve DeLaney

Jack. Hi,

John Taylor

I’ll answer that. Yes.

that limited of significantly our a to that of – liquidity. done number was So not and manner We that characteristics was would management. in based a loans selected sell liquidity part it of was our alter generate the potentially to selected composition interim And portfolio.

off to was sell portfolio. comparison whole that. distressed of anything And small size not characteristics was the to and so the meant we the portfolio, quite of like alter it in or didn’t assets It

Steve DeLaney

Sure.

John Taylor

the it process. through its So financing liquidity while capital working increasing accomplish purpose larger our in we’re

not this was sale. sales opportunistic So strategy… our Such really are an part main of

Steve DeLaney

Sure.

John Taylor

the …and in we’re selling not market currently loans.

Steve DeLaney

a actually get inquiry? have concept, market this had few just seen I’m [indiscernible], of direct been semi-brokered basis? more that post no-name Got several a as there it. and instances can confidentially is like someone on we of curious, loans is actually of – them such a that sold. where Or on like market eyeballs a In loans reverse through you lot a

John Taylor

we process, This understand our conjunction is there Evercore confidential We not with, brokers. discrete was process would in but… such say, a marketing I broker. through done did use loan a that Well,

Steve DeLaney

Right.

John Taylor

really was contacts. some direct …it

oftentimes, that the in of fault, is to – to signal during selling a distressed waste broker, sort didn’t not. which people of downturn the use you’re broker’s time marketing market. were severe a want and send that wrong a especially of it’s activity, out broad lot a tends you a lot when to something but brings are we experience of that Our thinking because a mode, that not there We the or

Steve DeLaney

to and on Board the portfolio do the that cash consider your – level percentage Is And a of that a maybe part project. modest would have as something reinstating progress realize I before that Evercore achieve to Got with dividend? liquidity a now trying liquidity liquidity, million. $XXX also And balance you’re last may you’ve of made target there question, it. sense. at Makes good my of

Jack. the of you I is to, what would of at guess, willing financing, to Thank your give consider to Board point, you improving in some least us liquidity, color you. any dividend? amount trying what I’m point get could what cash be do the your about, think stability creating at At So when

John Taylor

actually you thank ask Marcin to… the for Well, question. I’ll

Steve DeLaney

Sure.

Marcin Urbaszek

Good Steve. well. for you as morning, Thank joining us

Steve DeLaney

course. of Yes, Marcin. Hi,

Marcin Urbaszek

our I for it’s anything we’re Look, for obviously, time or us. major think, a further Today, like obviously, any And comfortable calls think we focus outstanding liquidity, I are. that. the don’t being, where we for deleveraging have with

affairs However, we’re the state taking not that as of new normal.

So we are continuing other to focus on sheet further stability we’re as of the pursuing balance alternatives.

tied, I would also think say, that with is dividend. largely the I

I of a rather think, more our earnings. of than dividend is function liquidity

Steve DeLaney

Yes.

Marcin Urbaszek

that. We are pay as the generating earnings. REIT, we to And to distribution REIT all are we so requirements obviously a and need attention

So have we’re more dividend. or I longer-term, on months balance terms more for liquidity looking it at of think, – once the in think, I but next sheet, not the how we that’s more several the

Steve DeLaney

I Thank Okay. appreciate everyone’s you. comments.

John Taylor

you. Thank

Operator

comes next ahead. Please with Jade Our KBW. from go Rahmani question

Ryan Tomasello

questions. on the for for Ryan Thanks taking This is everyone. Jade. morning, Good

John Taylor

morning. Good

Ryan Tomasello

for of I appreciate impairment that wondering bucket loans. near-term more additional risk out in I – default? might that around there was specific you are risk color if size appreciate I think morning. if some have a or of good on assets color the the provide calling we’re can you

Stephen Alpart

Hey, Steve. Ryan, morning. it’s Good

take in and this hotels in are back. that the concerns And risk into quarter four an of majority and plans going heard in half rank that of delayed. COVID-XX the the say, just that on The us assets. short-term, Jack number category It it’s we less we as this really as the market more about a So happening loans certainly And the I be loans. say, retail business about, no, that had would I mentioned the what’s you moved specific the ones to of acknowledgment loans of in are about possibly quarter. are result medium-term, was – specific moved overall

Ryan Tomasello

then the of can of on made loans in management principal so strategy, asset what you And by just modifications percentage Okay. terms balance far? you’ve say

Stephen Alpart

Happy about talk Sure. to that.

our modest in Very short-term note hotel majority in or a our over to of are portfolio, modified amendments concentrated and we’ve quarter loans. nature. again, of little retail amended these that So and important the

a I little earlier, of think bit portfolio. that commented quarter I over little on but a it’s the

Ryan Tomasello

sources you going about At point, of in forward? say, And business digits do think this the Great. a capital. at? economic do think And the looking thinking that more you’re option model equity double is preferred of alternative likely how cost changes a potentially, the you

Marcin Urbaszek

think Ryan, is potential of Look, good looking I morning. a are financing Hey, different at we Marcin. This alternatives. variety

We’re to not particular going any exclude one.

We’re focused sure that that but of the It’s making and repay and current not the environment, at Balance structure on the covenants, position terms for cost. future. just as company looking very things in obviously about it. for to ability we like flexibility sheet also are important the we’re

about. So that’s we thinking kind from are of a strategic perspective, how

Ryan Tomasello

that you’ve to include Great. in of And considering you and modifications LIBOR you had the done expect in third lastly, type quarter? benefit that the then date that of you’d have an of floors, quarter? estimate And just regarding can floors, the benefit those a what say do how much resetting a per of share fourth

Marcin Urbaszek

say, you floors increase, is interest net asset if LIBOR QX, largely expense. by quarter-over-quarter, side and share. decrease about driven interest and would look think, I how Look, income I the That the performed a in that obviously was in on $X.XX at our per

So, we’re QX say hard in that’s at and it. what QX. kind terms of to It’s looking of how happens in

we’re LIBOR – our focused giving Steve economics, loans. mentioned, we we’re floor as think really on I not of in amending terms how up the

where our the generation interest of terms now right it we income. portfolio of in pretty about So fundamental good is feel

Ryan Tomasello

questions, Got it. Thanks for the everyone. taking

John Taylor

you. Thank

Operator

ahead. [Operator Instructions] Our Doug from comes Please question next Suisse. go Harter with Credit

Joshua Bolton

Doug. of Josh on answered… actually Bolton questions Hey, for have Most my this guys, is been

John Taylor

Hey, Doug.

Joshua Bolton

hey. – …but

the of repayments floors of where Are where already. Thanks. how any sort portfolio back-half borrowers to thinking year, about versus rates looking are in the are? LIBOR Or the refi you in in repayments about some demands repayments expecting context? thinking just given Just obviously, you or refi are overall current strong that

Steven Plust

Good This Plust. Steven morning. is

in seeing a notable refi activity. are We pickup

I And borrowers anything. of to can’t I the actually mindsets we’re like is of say the but like I it plans of say, amount would up. but business think are Nothing the activity a related where in can fair that they as nothing progress much picked or the refinancing way to that financing, fair speak as expectation our I it’s is, regular getting of what regard. just – definitely

Joshua Bolton

Great. Thanks that. for

John Taylor

Thank you.

Operator

comes with question JPMorgan. Please next from go Shane ahead. Rick Our

Rick Shane

Hey, taking for questions thanks guys, my good today. morning, and

John Taylor

Hey, Rick.

Rick Shane

question. First

talked release reserve you of On the or potential $X me to loan associated this that’s that. sales loss. gross It’s million with realized net quarter, unclear a if about any

if wondering there’s I’m So an offset?

Marcin Urbaszek

be you little may there. Rick, us. Hey, offset it’s in of There Marcin. joining morning. bit Good an a for Thank

haven’t finalized yet. We the all numbers

it’s So Obviously, to some – number. those there reserves the an some are attached of of loans. some approximate

So all of shakes where we’ll see out. that kind

Rick Shane

Got it.

you. in thank But much with unusually no with pretty large that the portfolio? associated line Okay, loan reserve

Marcin Urbaszek

Right.

Rick Shane

Okay, you. great. Thank

And seeing that, Next I’m originally if least had it that’s of of had maturity. associated at reached the $XXX with call question, to million the beginning California. loan, was reason the your repayment. that curious at I a and is a is original the curious, loan if in years. the repayment? loan the related asked where and retail question you specifically I’m largest that a we’re It’s two has And maturity this

Stephen Alpart

seen just that loan. loan business it’s Rick, –it’s not payoff, about Steve of have one. No, we And see retail another Steve. plan. not We mentioned but Hey, it’s particularly that maturation what earlier the did

not of very seeing is the and the far processes, types just that now we’re a coming refis. And It’s along multifamily it borrowers those loans seeing property that were market evolution but and people natural the sales continue that market office. kind of these So, loan. other you’re for was some back, in

Rick Shane

it. Got

point, of to do want you how figure last helpful. permutations with brings at and available remaining on to to of through to it me were loans just guys the million reached it’s maturity? start which those and be? extensions, would get trying great what – potential to That’s the original have And this sort a is that combinations, defaults? the sort $XXX We sitting And here loan portfolio. at going percentage looking the monitor what out We Okay. loans of maturity the readily question, maturity my have to

Stephen Alpart

Sure.

up initial that coming loans maturity in come that on final now yet are or maturity up – loans flat So the maturity. are we initial bulk on – we’ve The had on just of no our date.

new few yield let’s the I have in we that a they where borrowers amendments, test. are up extension December, November, debt coming meet have the not to of January. in equity. part dare up particularly putting and likely say, are referenced, they done an amendments stepping And As And

them have requiring doing they the to what way And of a meet extension. a been down. Some in pay like kind we’ve of is us, to would typically said that

extension of have so lieu the So we’ll a you and sponsors, a your the pay good of far in But test down pay I equity, loan borrowers little early meet to meet number that, to it’s with think is don’t the that. say, to wanted and willing directly new extension. stepping down, loans strong to theme conversation, look, if answer But question. do sponsor up the

Rick Shane

Perfect.

lot a such those Okay. experiencing? And of we’re buffers then, look, temporal because event an circumstances sense, in sort we’re of is think that make I unusual unusual this the in

John Taylor

We that’s and give of get to why something And the time. pursuing the to work with agree. good strategy our working through sponsors then… period something we’re And of

Rick Shane

it. Got

the time give get to largely is so additional and going going is loans? the to capital into is the be be And takeaway there to

John Taylor

Of some That’s right. form.

Rick Shane

Thank guys Terrific. much. you very

John Taylor

questions. you it. We Thank for your appreciate

Operator

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

John Taylor

very, Thank you. with you are times. us joining and the follow-up These and today very be our on We time appreciate all to taking us challenging to quarter.

hear of forward to wish everybody and good to soon, through look are much And give how it. delighted we you that doing. our with period We thank We’re and again and we’re further investors on to a safety health you and community appreciate and operator. this updated very time. we reports family friends well, and you, speaking analyst Thank

Operator

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

may now You disconnect.

Granite Point Mortgage Trust (GPMT) 11 Aug 202020 Q2 Earnings call transcript