|
|
|
|
|
☒
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Maryland
|
|
61-1843143
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
3 Bryant Park, Suite 2400A
|
|
|
|
New York,
|
New York
|
|
10036
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Title of each class
|
|
Trading Symbol(s)
|
|
Name of each exchange on which registered
|
Common Stock, par value $0.01 per share
|
|
GPMT
|
|
New York Stock Exchange
|
Large accelerated filer
|
☒
|
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☐
|
|
Smaller reporting company
|
☐
|
|
|
|
Emerging growth company
|
☐
|
|
|
|
|
|
|
|
Page
|
|
PART I - FINANCIAL INFORMATION
|
|
|
||
|
||
|
||
|
||
|
||
|
PART II - OTHER INFORMATION
|
|
|
March 31,
2020 |
|
December 31,
2019 |
||||
ASSETS
|
|
|
|
||||
Loans held-for-investment
|
$
|
4,313,816
|
|
|
$
|
4,226,212
|
|
Allowance for credit losses
|
(62,565
|
)
|
|
—
|
|
||
Loans held-for-investment, net
|
4,251,251
|
|
|
4,226,212
|
|
||
Available-for-sale securities, at fair value
|
8,319
|
|
|
12,830
|
|
||
Held-to-maturity securities
|
10,836
|
|
|
18,076
|
|
||
Cash and cash equivalents
|
99,332
|
|
|
80,281
|
|
||
Restricted cash
|
8,533
|
|
|
79,483
|
|
||
Accrued interest receivable
|
11,215
|
|
|
11,323
|
|
||
Other assets
|
87,392
|
|
|
32,657
|
|
||
Total Assets (1)
|
$
|
4,476,878
|
|
|
$
|
4,460,862
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
||||
Liabilities
|
|
|
|
||||
Repurchase agreements
|
$
|
2,072,099
|
|
|
$
|
1,924,021
|
|
Securitized debt obligations
|
982,312
|
|
|
1,041,044
|
|
||
Asset-specific financings
|
119,062
|
|
|
116,465
|
|
||
Revolving credit facilities
|
38,361
|
|
|
42,008
|
|
||
Convertible senior notes
|
270,031
|
|
|
269,634
|
|
||
Dividends payable
|
25
|
|
|
23,063
|
|
||
Other liabilities
|
32,929
|
|
|
24,491
|
|
||
Total Liabilities (1)
|
3,514,819
|
|
|
3,440,726
|
|
||
10% cumulative redeemable preferred stock, par value $0.01 per share; 50,000,000 shares authorized and 1,000 and 1,000 shares issued and outstanding, respectively
|
1,000
|
|
|
1,000
|
|
||
Stockholders’ Equity
|
|
|
|
||||
Common stock, par value $0.01 per share; 450,000,000 shares authorized and 55,136,885 and 54,853,205 shares issued and outstanding, respectively
|
552
|
|
|
549
|
|
||
Additional paid-in capital
|
1,049,836
|
|
|
1,048,484
|
|
||
Accumulated other comprehensive (loss) income
|
(3,712
|
)
|
|
32
|
|
||
Cumulative earnings
|
106,413
|
|
|
162,076
|
|
||
Cumulative distributions to stockholders
|
(192,030
|
)
|
|
(192,005
|
)
|
||
Total Stockholders’ Equity
|
961,059
|
|
|
1,019,136
|
|
||
Total Liabilities and Stockholders’ Equity
|
$
|
4,476,878
|
|
|
$
|
4,460,862
|
|
(1)
|
The condensed consolidated balance sheets include assets of consolidated variable interest entities, or VIEs, that can only be used to settle obligations of these VIEs, and liabilities of the consolidated VIEs for which creditors do not have recourse to Granite Point Mortgage Trust Inc. At March 31, 2020 and December 31, 2019, assets of the VIEs totaled $1,310,887 and $1,387,148, and liabilities of the VIEs totaled $983,094 and $1,042,122, respectively. See Note 3 - Variable Interest Entities for additional information.
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2020
|
|
2019
|
||||
Interest income:
|
|
||||||
Loans held-for-investment
|
$
|
63,259
|
|
|
$
|
56,665
|
|
Available-for-sale securities
|
280
|
|
|
308
|
|
||
Held-to-maturity securities
|
310
|
|
|
661
|
|
||
Cash and cash equivalents
|
326
|
|
|
511
|
|
||
Total interest income
|
64,175
|
|
|
58,145
|
|
||
Interest expense:
|
|
|
|
||||
Repurchase agreements
|
19,675
|
|
|
16,989
|
|
||
Securitized debt obligations
|
9,434
|
|
|
9,859
|
|
||
Convertible senior notes
|
4,516
|
|
|
4,465
|
|
||
Asset-specific financings
|
1,122
|
|
|
—
|
|
||
Revolving credit facilities
|
242
|
|
|
695
|
|
||
Total interest expense
|
34,989
|
|
|
32,008
|
|
||
Net interest income
|
29,186
|
|
|
26,137
|
|
||
Other (loss) income:
|
|
|
|
||||
Provision for credit losses
|
(53,336
|
)
|
|
—
|
|
||
Fee income
|
522
|
|
|
913
|
|
||
Total other (loss) income
|
(52,814
|
)
|
|
913
|
|
||
Expenses:
|
|
|
|
||||
Management fees
|
3,907
|
|
|
3,449
|
|
||
Incentive fees
|
—
|
|
|
244
|
|
||
Servicing expenses
|
1,109
|
|
|
773
|
|
||
Other operating expenses
|
8,553
|
|
|
5,616
|
|
||
Total expenses
|
13,569
|
|
|
10,082
|
|
||
(Loss) income before income taxes
|
(37,197
|
)
|
|
16,968
|
|
||
Benefit from income taxes
|
(6
|
)
|
|
(1
|
)
|
||
Net (loss) income
|
(37,191
|
)
|
|
16,969
|
|
||
Dividends on preferred stock
|
25
|
|
|
25
|
|
||
Net (loss) income attributable to common stockholders
|
$
|
(37,216
|
)
|
|
$
|
16,944
|
|
Basic (loss) earnings per weighted average common share
|
$
|
(0.68
|
)
|
|
$
|
0.35
|
|
Diluted (loss) earnings per weighted average common share
|
$
|
(0.68
|
)
|
|
$
|
0.34
|
|
Dividends declared per common share
|
$
|
—
|
|
|
$
|
0.42
|
|
Weighted average number of shares of common stock outstanding:
|
|
|
|
||||
Basic
|
55,056,411
|
|
|
48,601,431
|
|
||
Diluted
|
55,056,411
|
|
|
62,256,595
|
|
||
Comprehensive (loss) income:
|
|
|
|
||||
Net (loss) income attributable to common stockholders
|
$
|
(37,216
|
)
|
|
$
|
16,944
|
|
Other comprehensive (loss) income, net of tax:
|
|
|
|
||||
Unrealized (loss) gain on available-for-sale securities
|
(3,744
|
)
|
|
192
|
|
||
Other comprehensive (loss) income
|
(3,744
|
)
|
|
192
|
|
||
Comprehensive (loss) income attributable to common stockholders
|
$
|
(40,960
|
)
|
|
$
|
17,136
|
|
|
Common Stock
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Shares
|
|
Amount
|
|
Additional Paid-in Capital
|
|
Accumulated Other Comprehensive (Loss) Income
|
|
Cumulative Earnings
|
|
Cumulative Distributions to Stockholders
|
|
Total Stockholders’ Equity
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance, December 31, 2018
|
43,621,174
|
|
|
$
|
436
|
|
|
$
|
836,288
|
|
|
$
|
(192
|
)
|
|
$
|
91,875
|
|
|
$
|
(100,876
|
)
|
|
$
|
827,531
|
|
Cumulative effect of adoption of new accounting principle
|
—
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
(13
|
)
|
|
—
|
|
|
—
|
|
||||||
Adjusted balance, January 1, 2019
|
43,621,174
|
|
|
436
|
|
|
836,301
|
|
|
(192
|
)
|
|
91,862
|
|
|
(100,876
|
)
|
|
827,531
|
|
||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16,969
|
|
|
—
|
|
|
16,969
|
|
||||||
Other comprehensive income before reclassifications
|
—
|
|
|
—
|
|
|
—
|
|
|
192
|
|
|
—
|
|
|
—
|
|
|
192
|
|
||||||
Amounts reclassified from accumulated other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
192
|
|
|
—
|
|
|
—
|
|
|
192
|
|
||||||
Issuance of common stock, net of offering costs
|
8,291,829
|
|
|
83
|
|
|
157,145
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
157,228
|
|
||||||
Common dividends declared
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(21,913
|
)
|
|
(21,913
|
)
|
||||||
Preferred dividends declared
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(25
|
)
|
|
(25
|
)
|
||||||
Non-cash equity award compensation
|
258,918
|
|
|
3
|
|
|
1,146
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,149
|
|
||||||
Balance, March 31, 2019
|
52,171,921
|
|
|
522
|
|
|
994,592
|
|
|
—
|
|
|
108,831
|
|
|
(122,814
|
)
|
|
981,131
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance, December 31, 2019
|
54,853,205
|
|
|
$
|
549
|
|
|
$
|
1,048,484
|
|
|
$
|
32
|
|
|
$
|
162,076
|
|
|
$
|
(192,005
|
)
|
|
$
|
1,019,136
|
|
Cumulative effect of adoption of new accounting principle
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(18,472
|
)
|
|
—
|
|
|
(18,472
|
)
|
||||||
Adjusted balance, January 1, 2020
|
54,853,205
|
|
|
549
|
|
|
1,048,484
|
|
|
32
|
|
|
143,604
|
|
|
(192,005
|
)
|
|
1,000,664
|
|
||||||
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(37,191
|
)
|
|
—
|
|
|
(37,191
|
)
|
||||||
Other comprehensive loss before reclassifications
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,511
|
)
|
|
—
|
|
|
—
|
|
|
(4,511
|
)
|
||||||
Amounts reclassified from accumulated other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
767
|
|
|
—
|
|
|
—
|
|
|
767
|
|
||||||
Net other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,744
|
)
|
|
—
|
|
|
—
|
|
|
(3,744
|
)
|
||||||
Preferred dividends declared
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(25
|
)
|
|
(25
|
)
|
||||||
Non-cash equity award compensation
|
283,680
|
|
|
3
|
|
|
1,352
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,355
|
|
||||||
Balance, March 31, 2020
|
55,136,885
|
|
|
$
|
552
|
|
|
$
|
1,049,836
|
|
|
$
|
(3,712
|
)
|
|
$
|
106,413
|
|
|
$
|
(192,030
|
)
|
|
$
|
961,059
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2020
|
|
2019
|
||||
Cash Flows From Operating Activities:
|
|
||||||
Net (loss) income
|
$
|
(37,191
|
)
|
|
$
|
16,969
|
|
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
|
|
|
|
||||
Accretion of discounts and net deferred fees on loans held-for-investment
|
(4,774
|
)
|
|
(3,822
|
)
|
||
Amortization of deferred debt issuance costs on convertible senior notes and securitized debt obligations
|
1,665
|
|
|
2,029
|
|
||
Provision for credit losses
|
53,336
|
|
|
—
|
|
||
Equity based compensation
|
1,355
|
|
|
1,149
|
|
||
Net change in assets and liabilities:
|
|
|
|
||||
Decrease (increase) in accrued interest receivable
|
108
|
|
|
(327
|
)
|
||
Increase in other assets
|
(54,735
|
)
|
|
(3,781
|
)
|
||
Increase in other liabilities
|
904
|
|
|
6,327
|
|
||
Net cash (used in) provided by operating activities
|
(39,332
|
)
|
|
18,544
|
|
||
Cash Flows From Investing Activities:
|
|
|
|
||||
Originations, acquisitions and additional fundings of loans held-for-investment, net of deferred fees
|
(184,969
|
)
|
|
(276,574
|
)
|
||
Proceeds from repayment of loans held-for-investment
|
102,139
|
|
|
155,320
|
|
||
Principal payments on held-to-maturity securities
|
6,298
|
|
|
881
|
|
||
Net cash used in investing activities
|
(76,532
|
)
|
|
(120,373
|
)
|
||
Cash Flows From Financing Activities:
|
|
|
|
||||
Proceeds from repurchase agreements
|
237,344
|
|
|
225,261
|
|
||
Principal payments on repurchase agreements
|
(89,266
|
)
|
|
(732,170
|
)
|
||
Proceeds from issuance of securitized debt obligations
|
—
|
|
|
646,868
|
|
||
Principal payments on securitized debt obligations
|
(60,000
|
)
|
|
(105,000
|
)
|
||
Proceeds from asset-specific financings
|
2,597
|
|
|
—
|
|
||
Proceeds from revolving credit facilities
|
38,361
|
|
|
48,697
|
|
||
Repayment of revolving credit facilities
|
(42,008
|
)
|
|
(123,697
|
)
|
||
Proceeds from issuance of common stock, net of offering costs
|
—
|
|
|
157,228
|
|
||
Dividends paid on preferred stock
|
(25
|
)
|
|
(25
|
)
|
||
Dividends paid on common stock
|
(23,038
|
)
|
|
(18,321
|
)
|
||
Net cash provided by financing activities
|
63,965
|
|
|
98,841
|
|
||
Net decrease in cash, cash equivalents and restricted cash
|
(51,899
|
)
|
|
(2,988
|
)
|
||
Cash, cash equivalents, and restricted cash at beginning of period
|
159,764
|
|
|
123,423
|
|
||
Cash, cash equivalents, and restricted cash at end of period
|
$
|
107,865
|
|
|
$
|
120,435
|
|
Supplemental Disclosure of Cash Flow Information:
|
|
|
|
||||
Cash paid for interest
|
$
|
31,914
|
|
|
$
|
28,284
|
|
Cash paid for taxes
|
$
|
—
|
|
|
$
|
—
|
|
Noncash Activities:
|
|
|
|
||||
Dividends declared but not paid at end of period
|
$
|
25
|
|
|
$
|
21,938
|
|
(1)
|
Represents expected loss on unfunded commitments.
|
(in thousands)
|
March 31,
2020 |
|
December 31,
2019 |
||||
Loans held-for-investment
|
$
|
1,317,406
|
|
|
$
|
1,301,369
|
|
Allowance for credit losses
|
(16,067
|
)
|
|
—
|
|
||
Loans held-for-investment, net
|
1,301,339
|
|
|
1,301,369
|
|
||
Restricted cash
|
900
|
|
|
76,093
|
|
||
Other assets
|
8,648
|
|
|
9,686
|
|
||
Total Assets
|
$
|
1,310,887
|
|
|
$
|
1,387,148
|
|
Securitized debt obligations
|
$
|
982,312
|
|
|
$
|
1,041,044
|
|
Other liabilities
|
782
|
|
|
1,078
|
|
||
Total Liabilities
|
$
|
983,094
|
|
|
$
|
1,042,122
|
|
|
March 31,
2020 |
||||||||||||||
(dollars in thousands)
|
Senior
Loans (1)
|
|
Mezzanine Loans
|
|
B-Notes
|
|
Total
|
||||||||
Unpaid principal balance
|
$
|
4,314,836
|
|
|
$
|
13,197
|
|
|
$
|
14,395
|
|
|
$
|
4,342,428
|
|
Unamortized (discount) premium
|
(115
|
)
|
|
—
|
|
|
—
|
|
|
(115
|
)
|
||||
Unamortized net deferred origination fees
|
(28,498
|
)
|
|
1
|
|
|
—
|
|
|
(28,497
|
)
|
||||
Allowance for credit losses
|
(61,261
|
)
|
|
(1,016
|
)
|
|
(288
|
)
|
|
(62,565
|
)
|
||||
Carrying value
|
$
|
4,224,962
|
|
|
$
|
12,182
|
|
|
$
|
14,107
|
|
|
$
|
4,251,251
|
|
Unfunded commitments
|
$
|
762,756
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
762,756
|
|
Number of loans
|
119
|
|
|
2
|
|
|
1
|
|
|
122
|
|
||||
Weighted average coupon
|
5.1
|
%
|
|
11.5
|
%
|
|
8.0
|
%
|
|
5.2
|
%
|
||||
Weighted average years to maturity (2)
|
1.6
|
|
|
1.7
|
|
|
6.8
|
|
|
1.6
|
|
|
December 31,
2019 |
||||||||||||||
(dollars in thousands)
|
Senior
Loans (1)
|
|
Mezzanine Loans
|
|
B-Notes
|
|
Total
|
||||||||
Unpaid principal balance
|
$
|
4,229,194
|
|
|
$
|
13,503
|
|
|
$
|
14,448
|
|
|
$
|
4,257,145
|
|
Unamortized (discount) premium
|
(124
|
)
|
|
—
|
|
|
—
|
|
|
(124
|
)
|
||||
Unamortized net deferred origination fees
|
(30,788
|
)
|
|
(21
|
)
|
|
—
|
|
|
(30,809
|
)
|
||||
Carrying value
|
$
|
4,198,282
|
|
|
$
|
13,482
|
|
|
$
|
14,448
|
|
|
$
|
4,226,212
|
|
Unfunded commitments
|
$
|
748,878
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
748,878
|
|
Number of loans
|
117
|
|
|
2
|
|
|
1
|
|
|
120
|
|
||||
Weighted average coupon
|
5.4
|
%
|
|
11.7
|
%
|
|
8.0
|
%
|
|
5.4
|
%
|
||||
Weighted average years to maturity (2)
|
1.8
|
|
|
2.0
|
|
|
7.1
|
|
|
1.8
|
|
(1)
|
Loans primarily secured by a first priority lien on commercial real property and related personal property and also includes, when applicable, any companion subordinate loans.
|
(2)
|
Based on contractual maturity date. Certain loans are subject to contractual extension options with such conditions stipulated in the applicable loan documents. Actual maturities may differ from contractual maturities stated herein as certain borrowers may have the right to prepay with or without paying a prepayment fee. The Company may also extend contractual maturities in connection with loan modifications.
|
(dollars in thousands)
|
|
March 31,
2020 |
|
December 31,
2019 |
||||||||||
Property Type
|
|
Carrying Value
|
|
% of Loan Portfolio
|
|
Carrying Value
|
|
% of Loan Portfolio
|
||||||
Office
|
|
$
|
1,788,377
|
|
|
42.0
|
%
|
|
$
|
1,779,173
|
|
|
42.0
|
%
|
Multifamily
|
|
1,063,785
|
|
|
25.0
|
%
|
|
1,058,708
|
|
|
25.1
|
%
|
||
Hotel
|
|
661,760
|
|
|
15.6
|
%
|
|
640,503
|
|
|
15.2
|
%
|
||
Retail
|
|
396,438
|
|
|
9.3
|
%
|
|
398,742
|
|
|
9.4
|
%
|
||
Industrial
|
|
304,133
|
|
|
7.2
|
%
|
|
312,637
|
|
|
7.4
|
%
|
||
Other
|
|
36,758
|
|
|
0.9
|
%
|
|
36,449
|
|
|
0.9
|
%
|
||
Total
|
|
$
|
4,251,251
|
|
|
100.0
|
%
|
|
$
|
4,226,212
|
|
|
100.0
|
%
|
(dollars in thousands)
|
|
March 31,
2020 |
|
December 31,
2019 |
||||||||||
Geographic Location
|
|
Carrying Value
|
|
% of Loan Portfolio
|
|
Carrying Value
|
|
% of Loan Portfolio
|
||||||
Northeast
|
|
$
|
1,148,560
|
|
|
27.1
|
%
|
|
$
|
1,196,767
|
|
|
28.4
|
%
|
Southwest
|
|
874,194
|
|
|
20.5
|
%
|
|
923,519
|
|
|
21.8
|
%
|
||
West
|
|
808,168
|
|
|
19.0
|
%
|
|
735,416
|
|
|
17.4
|
%
|
||
Midwest
|
|
701,781
|
|
|
16.5
|
%
|
|
700,778
|
|
|
16.6
|
%
|
||
Southeast
|
|
718,548
|
|
|
16.9
|
%
|
|
669,732
|
|
|
15.8
|
%
|
||
Total
|
|
$
|
4,251,251
|
|
|
100.0
|
%
|
|
$
|
4,226,212
|
|
|
100.0
|
%
|
|
Three Months Ended
March 31, |
||||||
(in thousands)
|
2020
|
|
2019
|
||||
Balance at beginning of period
|
$
|
4,226,212
|
|
|
$
|
3,167,913
|
|
Originations, acquisitions and additional fundings
|
187,422
|
|
|
279,694
|
|
||
Repayments
|
(102,139
|
)
|
|
(155,320
|
)
|
||
Net discount accretion (premium amortization)
|
8
|
|
|
13
|
|
||
Increase in net deferred origination fees
|
(2,453
|
)
|
|
(3,120
|
)
|
||
Amortization of net deferred origination fees
|
4,766
|
|
|
3,809
|
|
||
Allowance for credit losses
|
(62,565
|
)
|
|
—
|
|
||
Balance at end of period
|
$
|
4,251,251
|
|
|
$
|
3,292,989
|
|
|
Three Months Ended
March 31, |
||
(in thousands)
|
2020
|
||
Balance at beginning of period
|
$
|
16,692
|
|
Provision for credit losses
|
45,873
|
|
|
Writeoffs
|
—
|
|
|
Recoveries of amounts previously written off
|
—
|
|
|
Balance at end of period
|
$
|
62,565
|
|
1 –
|
Lower Risk
|
2 –
|
Average Risk
|
3 –
|
Acceptable Risk
|
4 –
|
Higher Risk: A loan that has exhibited material deterioration in cash flows and/or other credit factors, which, if negative trends continue, could be indicative of probability of default or principal loss.
|
5 –
|
Loss Likely: A loan that has a significantly increased probability of default or principal loss.
|
(dollars in thousands)
|
|
March 31,
2020 |
|
December 31,
2019 |
||||||||||||||||||
Risk Rating
|
|
Number of Loans
|
|
Unpaid Principal Balance
|
|
Carrying Value
|
|
Number of Loans
|
|
Unpaid Principal Balance
|
|
Carrying Value
|
||||||||||
1
|
|
4
|
|
|
$
|
104,751
|
|
|
$
|
103,889
|
|
|
9
|
|
|
$
|
293,191
|
|
|
$
|
292,270
|
|
2
|
|
97
|
|
|
3,470,230
|
|
|
3,408,924
|
|
|
100
|
|
|
3,661,077
|
|
|
3,632,528
|
|
||||
3
|
|
17
|
|
|
653,475
|
|
|
633,979
|
|
|
9
|
|
|
243,127
|
|
|
241,901
|
|
||||
4
|
|
4
|
|
|
113,972
|
|
|
104,459
|
|
|
2
|
|
|
59,750
|
|
|
59,513
|
|
||||
5
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total
|
|
122
|
|
|
$
|
4,342,428
|
|
|
$
|
4,251,251
|
|
|
120
|
|
|
$
|
4,257,145
|
|
|
$
|
4,226,212
|
|
|
|
March 31, 2020
|
||||||||||||||||||||||||||
(dollars in thousands)
|
|
Origination Year
|
|
|
||||||||||||||||||||||||
Risk Rating
|
|
2020
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
Prior
|
|
Total
|
||||||||||||||
1 (Low Risk)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
49,269
|
|
|
$
|
21,290
|
|
|
$
|
33,330
|
|
|
$
|
—
|
|
|
$
|
103,889
|
|
2 (Average Risk)
|
|
122,649
|
|
|
1,513,409
|
|
|
892,526
|
|
|
584,385
|
|
|
186,142
|
|
|
109,813
|
|
|
3,408,924
|
|
|||||||
3 (Acceptable Risk)
|
|
—
|
|
|
84,461
|
|
|
233,342
|
|
|
189,622
|
|
|
—
|
|
|
126,554
|
|
|
633,979
|
|
|||||||
4 (High Risk)
|
|
—
|
|
|
—
|
|
|
38,793
|
|
|
65,666
|
|
|
—
|
|
|
—
|
|
|
104,459
|
|
|||||||
5 (Loss Likely)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Total
|
|
$
|
122,649
|
|
|
$
|
1,597,870
|
|
|
$
|
1,213,930
|
|
|
$
|
860,963
|
|
|
$
|
219,472
|
|
|
$
|
236,367
|
|
|
$
|
4,251,251
|
|
(in thousands)
|
March 31,
2020 |
|
December 31,
2019 |
||||
Face value
|
$
|
12,798
|
|
|
$
|
12,798
|
|
Unamortized premium (discount)
|
—
|
|
|
—
|
|
||
Allowance for credit losses
|
(767
|
)
|
|
—
|
|
||
Gross unrealized gains
|
—
|
|
|
32
|
|
||
Gross unrealized losses
|
(3,712
|
)
|
|
—
|
|
||
Carrying value
|
$
|
8,319
|
|
|
$
|
12,830
|
|
(in thousands)
|
March 31,
2020 |
|
December 31,
2019 |
||||
Face value
|
$
|
11,778
|
|
|
$
|
18,076
|
|
Unamortized premium (discount)
|
—
|
|
|
—
|
|
||
Allowance for credit losses
|
(942
|
)
|
|
—
|
|
||
Carrying value
|
$
|
10,836
|
|
|
$
|
18,076
|
|
(in thousands)
|
March 31,
2020 |
|
December 31,
2019 |
||||
Cash and cash equivalents
|
$
|
99,332
|
|
|
$
|
80,281
|
|
Restricted cash
|
8,533
|
|
|
79,483
|
|
||
Total cash, cash equivalents and restricted cash
|
$
|
107,865
|
|
|
$
|
159,764
|
|
Level 1
|
Inputs are quoted prices in active markets for identical assets or liabilities as of the measurement date under current market conditions. Additionally, the entity must have the ability to access the active market and the quoted prices cannot be adjusted by the entity.
|
Level 2
|
Inputs include quoted prices in active markets for similar assets or liabilities; quoted prices in inactive markets for identical or similar assets or liabilities; or inputs that are observable or can be corroborated by observable market data by correlation or other means for substantially the full-term of the assets or liabilities.
|
Level 3
|
Unobservable inputs are supported by little or no market activity. The unobservable inputs represent the assumptions that market participants would use to price the assets and liabilities, including risk. Generally, Level 3 assets and liabilities are valued using pricing models, discounted cash flow methodologies or similar techniques that require significant judgment or estimation.
|
|
Recurring Fair Value Measurements
|
||||||||||||||
|
March 31, 2020
|
||||||||||||||
(in thousands)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities
|
$
|
—
|
|
|
$
|
8,319
|
|
|
$
|
—
|
|
|
$
|
8,319
|
|
Total assets
|
$
|
—
|
|
|
$
|
8,319
|
|
|
$
|
—
|
|
|
$
|
8,319
|
|
|
Recurring Fair Value Measurements
|
||||||||||||||
|
December 31, 2019
|
||||||||||||||
(in thousands)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities
|
$
|
—
|
|
|
$
|
12,830
|
|
|
$
|
—
|
|
|
$
|
12,830
|
|
Total assets
|
$
|
—
|
|
|
$
|
12,830
|
|
|
$
|
—
|
|
|
$
|
12,830
|
|
•
|
Loans held-for-investment are carried at cost, net of any unamortized acquisition premiums or discounts, loan fees, origination costs and allowance for credit losses, as applicable. The Company estimates the fair value of its loans held-for-investment by assessing any changes in market interest rates, shifts in credit profiles and actual operating results for mezzanine loans and senior loans, taking into consideration such factors as underlying property type, property competitive position within its market, market and submarket fundamentals, tenant mix, nature of business plan, sponsorship, extent of leverage and other loan terms. The Company categorizes the fair value measurement of these assets as Level 3.
|
•
|
AFS securities are recurring fair value measurements; carrying value equals fair value. See discussion of valuation methods and assumptions within the Fair Value Measurements section of this footnote.
|
•
|
HTM securities, which are comprised of CMBS, are carried at cost, net of any unamortized acquisition premiums or discounts and allowance for credit losses. In determining the fair value of the Company’s CMBS HTM, management judgment may be used to arrive at fair value that considers prices obtained from third-party pricing providers or broker quotes received using the bid price, which are both deemed indicative of market activity, and other applicable market data. The third-party pricing providers and brokers use pricing models that generally incorporate such factors as coupons, primary and secondary mortgage rates, rate reset period, issuer, prepayment speeds, credit enhancements and expected life of the security. The Company categorizes the fair value measurement of these assets as Level 2.
|
•
|
Cash and cash equivalents and restricted cash have a carrying value which approximates fair value because of the short maturities of these instruments. The Company categorizes the fair value measurement of these assets as Level 1.
|
•
|
The carrying value of repurchase agreements, asset-specific financings and revolving credit facilities that mature in less than one year generally approximates fair value due to the short maturities. The Company’s long-term repurchase agreements and asset-specific financings have floating rates based on an index plus a credit spread and the credit spread is typically consistent with those demanded in the market. Accordingly, the interest rates on these borrowings are at market and, thus, carrying value approximates fair value. The Company categorizes the fair value measurement of these liabilities as Level 2.
|
•
|
Securitized debt obligations are recorded at outstanding principal, net of any unamortized deferred debt issuance costs. In determining the fair value of its securitized debt obligations, management judgment may be used to arrive at fair value that considers prices obtained from third-party pricing providers, broker quotes received and other applicable market data. If observable market prices are not available or insufficient to determine fair value due principally to illiquidity in the marketplace, then fair value is based upon internally developed models that are primarily based on observable market-based inputs but also include unobservable market data inputs (including prepayment speeds, delinquency levels and credit losses). The Company categorizes the fair value measurement of these liabilities as Level 2.
|
•
|
Convertible senior notes are carried at their unpaid principal balance, net of any unamortized deferred issuance costs. The Company estimates the fair value of its convertible senior notes using the market transaction price nearest to March 31, 2020. The Company categorizes the fair value measurement of these assets as Level 2.
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||||
(in thousands)
|
Carrying Value
|
|
Fair Value
|
|
Carrying Value
|
|
Fair Value
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Loans held-for-investment, net of allowance for credit losses
|
$
|
4,251,251
|
|
|
$
|
4,269,192
|
|
|
$
|
4,226,212
|
|
|
$
|
4,261,612
|
|
Available-for-sale securities
|
$
|
8,319
|
|
|
$
|
8,319
|
|
|
$
|
12,830
|
|
|
$
|
12,830
|
|
Held-to-maturity securities
|
$
|
10,836
|
|
|
$
|
4,711
|
|
|
$
|
18,076
|
|
|
$
|
18,076
|
|
Cash and cash equivalents
|
$
|
99,332
|
|
|
$
|
99,332
|
|
|
$
|
80,281
|
|
|
$
|
80,281
|
|
Restricted cash
|
$
|
8,533
|
|
|
$
|
8,533
|
|
|
$
|
79,483
|
|
|
$
|
79,483
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Repurchase agreements
|
$
|
2,072,099
|
|
|
$
|
2,072,099
|
|
|
$
|
1,924,021
|
|
|
$
|
1,924,021
|
|
Securitized debt obligations
|
$
|
982,312
|
|
|
$
|
846,600
|
|
|
$
|
1,041,044
|
|
|
$
|
1,050,912
|
|
Asset-specific financings
|
$
|
119,062
|
|
|
$
|
119,062
|
|
|
$
|
116,465
|
|
|
$
|
116,465
|
|
Revolving credit facilities
|
$
|
38,361
|
|
|
$
|
38,361
|
|
|
$
|
42,008
|
|
|
$
|
42,008
|
|
Convertible senior notes
|
$
|
270,031
|
|
|
$
|
112,660
|
|
|
$
|
269,634
|
|
|
$
|
283,332
|
|
|
March 31, 2020
|
|||||||||||||||||||
(in thousands)
|
Maturity Date (1)
|
|
Amount Outstanding
|
|
Unused Capacity
|
|
Total Capacity
|
|
Carrying Value of Collateral
|
|
Weighted Average Borrowing Rate
|
|||||||||
Repurchase agreements:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Morgan Stanley Bank
|
June 28, 2021
|
|
$
|
594,545
|
|
|
$
|
5,455
|
|
|
$
|
600,000
|
|
|
$
|
725,284
|
|
|
2.9
|
%
|
Goldman Sachs Bank
|
May 2, 2021
|
|
461,860
|
|
|
38,140
|
|
|
500,000
|
|
|
606,643
|
|
|
2.8
|
%
|
||||
JPMorgan Chase Bank
|
June 28, 2022
|
|
405,505
|
|
|
44,495
|
|
|
450,000
|
|
|
567,688
|
|
|
2.7
|
%
|
||||
Citibank
|
January 9, 2023
|
|
412,812
|
|
|
87,188
|
|
|
500,000
|
|
|
517,683
|
|
|
2.5
|
%
|
||||
Wells Fargo Bank (2)
|
June 28, 2021
|
|
180,456
|
|
|
94,544
|
|
|
275,000
|
|
|
237,467
|
|
|
2.6
|
%
|
||||
JPMorgan Chase Bank (3)
|
May 11, 2020
|
|
16,921
|
|
|
NA
|
|
|
NA
|
|
|
23,457
|
|
|
3.9
|
%
|
||||
Total/Weighted Average
|
|
|
$
|
2,072,099
|
|
|
$
|
269,822
|
|
|
$
|
2,325,000
|
|
|
$
|
2,678,222
|
|
|
|
|
Asset-specific financings:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Canadian Imperial Bank of Commerce
|
Various
|
|
$
|
119,062
|
|
|
$
|
30,938
|
|
|
$
|
150,000
|
|
|
$
|
147,065
|
|
|
2.5
|
%
|
Revolving credit facilities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Citibank (4)
|
July 26, 2021
|
|
$
|
38,361
|
|
|
$
|
36,639
|
|
|
$
|
75,000
|
|
|
$
|
64,905
|
|
|
3.3
|
%
|
(1)
|
The facilities are set to mature on the stated maturity date, unless extended pursuant to their terms.
|
(2)
|
As of March 31, 2020, the Company retained an option to increase the maximum facility capacity amount up to $350 million, subject to customary terms and conditions.
|
(3)
|
Includes repurchase agreement collateralized by the Company’s CMBS, including both AFS and HTM securities. As of March 31, 2020, carrying value of collateral includes $4.3 million of cash balances required to be maintained in restricted accounts as collateral for the repurchase agreements. There was no balance maintained in restricted accounts as collateral for repurchase agreements as of December 31, 2019.
|
(4)
|
As of March 31, 2020, the Company retained an option to increase the maximum facility capacity amount up to $150 million, subject to customary terms and conditions.
|
|
March 31, 2020
|
||||||||||||||
(dollars in thousands)
|
Repurchase Agreements
|
|
Asset-Specific Financings
|
|
Revolving Credit Facilities
|
|
Total Amount Outstanding
|
||||||||
Within one year
|
$
|
16,921
|
|
|
$
|
—
|
|
|
$
|
38,361
|
|
|
$
|
55,282
|
|
One to three years
|
2,055,178
|
|
|
119,062
|
|
|
—
|
|
|
2,174,240
|
|
||||
Three to five years
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Five years and over
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total
|
$
|
2,072,099
|
|
|
$
|
119,062
|
|
|
$
|
38,361
|
|
|
$
|
2,229,522
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||||||||||||||
(dollars in thousands)
|
Amount Outstanding
|
|
Net Counterparty Exposure (1)
|
|
Percent of Equity
|
|
Weighted Average Years to Maturity
|
|
Amount Outstanding
|
|
Net Counterparty Exposure (1)
|
|
Percent of Equity
|
|
Weighted Average Years to Maturity
|
||||||||||
Morgan Stanley Bank
|
$
|
594,545
|
|
|
$
|
141,595
|
|
|
15
|
%
|
|
1.24
|
|
$
|
556,887
|
|
|
$
|
185,022
|
|
|
18
|
%
|
|
1.49
|
JPMorgan Chase Bank
|
422,426
|
|
|
179,773
|
|
|
19
|
%
|
|
2.16
|
|
428,076
|
|
|
156,764
|
|
|
15
|
%
|
|
2.39
|
||||
Goldman Sachs Bank
|
461,860
|
|
|
153,315
|
|
|
16
|
%
|
|
1.09
|
|
405,057
|
|
|
137,326
|
|
|
13
|
%
|
|
0.34
|
||||
Citibank
|
412,812
|
|
|
109,520
|
|
|
11
|
%
|
|
2.78
|
|
339,888
|
|
|
93,553
|
|
|
9
|
%
|
|
2.54
|
||||
Wells Fargo Bank
|
180,456
|
|
|
59,110
|
|
|
6
|
%
|
|
1.24
|
|
194,113
|
|
|
93,004
|
|
|
9
|
%
|
|
1.49
|
||||
Total
|
$
|
2,072,099
|
|
|
$
|
643,313
|
|
|
|
|
|
|
$
|
1,924,021
|
|
|
$
|
665,669
|
|
|
|
|
|
(1)
|
Represents the excess of the carrying amount or market value of the loans held-for-investment, AFS securities and HTM securities pledged as collateral for repurchase agreements, including accrued interest plus any cash on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest.
|
|
Number of common shares
|
|
Common shares outstanding, December 31, 2018
|
43,621,174
|
|
Issuance of common stock
|
8,291,829
|
|
Issuance of restricted stock (1)
|
258,918
|
|
Common shares outstanding, March 31, 2019
|
52,171,921
|
|
|
|
|
Common shares outstanding, December 31, 2019
|
54,853,205
|
|
Issuance of common stock
|
—
|
|
Issuance of restricted stock (1)
|
283,680
|
|
Common shares outstanding, March 31, 2020
|
55,136,885
|
|
(1)
|
Represents shares of restricted stock granted under the Company’s 2017 Equity Incentive Plan, net of forfeitures. See Note 15 - Equity Incentive Plan for additional information.
|
Declaration Date
|
|
Record Date
|
|
Payment Date
|
|
Cash Dividend Per Share
|
||
December 18, 2019
|
|
December 31, 2019
|
|
January 17, 2020
|
|
$
|
0.42
|
|
September 18, 2019
|
|
October 3, 2019
|
|
October 18, 2019
|
|
$
|
0.42
|
|
June 20, 2019
|
|
July 5, 2019
|
|
July 19, 2019
|
|
$
|
0.42
|
|
March 20, 2019
|
|
April 1, 2019
|
|
April 18, 2019
|
|
$
|
0.42
|
|
(in thousands)
|
March 31,
2020 |
|
December 31,
2019 |
||||
Available-for-sale securities
|
|
|
|
||||
Unrealized gains
|
$
|
—
|
|
|
$
|
32
|
|
Unrealized losses
|
(3,712
|
)
|
|
—
|
|
||
Accumulated other comprehensive (loss) income
|
$
|
(3,712
|
)
|
|
$
|
32
|
|
|
Three Months Ended March 31,
|
||||||||||||
|
2020
|
|
2019
|
||||||||||
|
Shares
|
|
Weighted Average Grant Date Fair Market Value
|
|
Shares
|
|
Weighted Average Grant Date Fair Market Value
|
||||||
Outstanding at Beginning of Period
|
461,371
|
|
|
$
|
18.75
|
|
|
321,134
|
|
|
$
|
18.04
|
|
Granted
|
297,769
|
|
|
18.47
|
|
|
258,918
|
|
|
19.31
|
|
||
Vested
|
(153,425
|
)
|
|
(18.44
|
)
|
|
(67,694
|
)
|
|
(17.33
|
)
|
||
Forfeited
|
(14,089
|
)
|
|
(18.57
|
)
|
|
—
|
|
|
—
|
|
||
Outstanding at End of Period
|
591,626
|
|
|
$
|
18.69
|
|
|
512,358
|
|
|
$
|
18.78
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
(in thousands, except share data)
|
2020
|
|
2019
|
||||
Numerator:
|
|
|
|
||||
Net income (loss) attributable to common stockholders - basic
|
$
|
(37,216
|
)
|
|
$
|
16,944
|
|
Interest expense attributable to convertible notes (1)
|
—
|
|
|
4,449
|
|
||
Net income (loss) attributable to common stockholders - diluted
|
$
|
(37,216
|
)
|
|
$
|
21,393
|
|
Denominator:
|
|
|
|
||||
Weighted average common shares outstanding
|
54,499,000
|
|
|
48,145,555
|
|
||
Weighted average restricted stock shares
|
557,411
|
|
|
455,876
|
|
||
Basic weighted average shares outstanding
|
55,056,411
|
|
|
48,601,431
|
|
||
Effect of dilutive shares issued in an assumed conversion of the convertible senior notes
|
—
|
|
|
13,655,164
|
|
||
Diluted weighted average shares outstanding
|
55,056,411
|
|
|
62,256,595
|
|
||
Earnings (Loss) per share
|
|
|
|
||||
Basic
|
$
|
(0.68
|
)
|
|
$
|
0.35
|
|
Diluted
|
$
|
(0.68
|
)
|
|
$
|
0.34
|
|
(1)
|
Includes a nondiscretionary adjustment for the assumed change in the management fee calculation.
|
•
|
the severity and duration of the COVID-19 pandemic;
|
•
|
potential risks and uncertainties relating to the ultimate geographic spread of COVID-19;
|
•
|
actions that may be taken by governmental authorities to contain the COVID-19 outbreak or to mitigate its impact;
|
•
|
the potential negative impacts of COVID-19 on the global economy, including the sudden severe rise in unemployment, and the impacts of COVID-19 on our financial condition, business operations and value of our assets, as well as the financial condition and operations of our borrowers;
|
•
|
the general political, economic and competitive conditions in the markets in which we invest;
|
•
|
defaults by borrowers in paying debt service on outstanding indebtedness and borrowers' abilities to manage and stabilize properties;
|
•
|
our ability to obtain or maintain financing arrangements on terms favorable to us or at all, particularly in light of the current disruption in the financial markets;
|
•
|
the level and volatility of prevailing interest rates and credit spreads;
|
•
|
reductions in the yield on our investments and increases in the cost of our financing;
|
•
|
general volatility of the securities markets in which we participate and the potential need to post additional collateral on our financing arrangements;
|
•
|
the return or impact of current or future investments;
|
•
|
changes in our business, investment strategies or target investments;
|
•
|
allocation of investment opportunities to us by our Manager;
|
•
|
increased competition from entities investing in our target investments;
|
•
|
effects of hedging instruments on our target investments;
|
•
|
changes in governmental regulations, tax law and rates and similar matters;
|
•
|
our ability to maintain our qualification as a REIT for U.S. federal income tax purposes and our exclusion from registration under the Investment Company Act;
|
•
|
availability of desirable investment opportunities;
|
•
|
availability of qualified personnel and our relationship with our Manager;
|
•
|
the time and cost of the process to internalize our management function;
|
•
|
estimates relating to our ability to make distributions to our stockholders in the future;
|
•
|
hurricanes, earthquakes and other natural disasters, acts of war and/or terrorism, pandemics such as COVID-19 and other events that may cause unanticipated and uninsured performance declines and/or losses to us or the owners and operators of the real estate securing our investments;
|
•
|
deterioration in the performance of the properties securing our investments that may cause deterioration in the performance of our investments and, potentially, principal losses to us, including the risk of impairment charges and any impact on our ability to satisfy the covenants and conditions in our debt agreements; and
|
•
|
difficulty or delays in redeploying the proceeds from repayments of our existing investments.
|
(in thousands, except share data)
|
|
Three Months Ended
|
||||||
Income Statement Data:
|
|
March 31,
|
||||||
|
|
2020
|
|
2019
|
||||
Interest income:
|
|
(unaudited)
|
||||||
Loans held-for-investment
|
|
$
|
63,259
|
|
|
$
|
56,665
|
|
Available-for-sale securities
|
|
280
|
|
|
308
|
|
||
Held-to-maturity securities
|
|
310
|
|
|
661
|
|
||
Cash and cash equivalents
|
|
326
|
|
|
511
|
|
||
Total interest income
|
|
64,175
|
|
|
58,145
|
|
||
Interest expense:
|
|
|
|
|
||||
Repurchase agreements
|
|
19,675
|
|
|
16,989
|
|
||
Securitized debt obligations
|
|
9,434
|
|
|
9,859
|
|
||
Convertible senior notes
|
|
4,516
|
|
|
4,465
|
|
||
Asset-specific financings
|
|
1,122
|
|
|
—
|
|
||
Revolving credit facilities
|
|
242
|
|
|
695
|
|
||
Total interest expense
|
|
34,989
|
|
|
32,008
|
|
||
Net interest income
|
|
29,186
|
|
|
26,137
|
|
||
Other (loss) income:
|
|
|
|
|
||||
Provision for credit losses
|
|
(53,336
|
)
|
|
—
|
|
||
Fee income
|
|
522
|
|
|
913
|
|
||
Total other (loss) income
|
|
(52,814
|
)
|
|
913
|
|
||
Expenses:
|
|
|
|
|
||||
Management fees
|
|
3,907
|
|
|
3,449
|
|
||
Incentive fees
|
|
—
|
|
|
244
|
|
||
Servicing expenses
|
|
1,109
|
|
|
773
|
|
||
Other operating expenses
|
|
8,553
|
|
|
5,616
|
|
||
Total expenses
|
|
13,569
|
|
|
10,082
|
|
||
(Loss) income before income taxes
|
|
(37,197
|
)
|
|
16,968
|
|
||
Benefit from income taxes
|
|
(6
|
)
|
|
(1
|
)
|
||
Net (loss) income
|
|
(37,191
|
)
|
|
16,969
|
|
||
Dividends on preferred stock
|
|
25
|
|
|
25
|
|
||
Net (loss) income attributable to common stockholders
|
|
$
|
(37,216
|
)
|
|
$
|
16,944
|
|
Basic (loss) earnings per weighted average common share
|
|
$
|
(0.68
|
)
|
|
$
|
0.35
|
|
Diluted (loss) earnings per weighted average common share
|
|
$
|
(0.68
|
)
|
|
$
|
0.34
|
|
Dividends declared per common share
|
|
$
|
—
|
|
|
$
|
0.42
|
|
Weighted average number of shares of common stock outstanding:
|
|
|
|
|
||||
Basic
|
|
55,056,411
|
|
|
48,601,431
|
|
||
Diluted
|
|
55,056,411
|
|
|
62,256,595
|
|
||
Comprehensive (loss) income:
|
|
|
|
|
||||
Net (loss) income attributable to common stockholders
|
|
$
|
(37,216
|
)
|
|
$
|
16,944
|
|
Other comprehensive (loss) income, net of tax:
|
|
|
|
|
||||
Unrealized (loss) gain on available-for-sale securities
|
|
(3,744
|
)
|
|
192
|
|
||
Other comprehensive (loss) income
|
|
(3,744
|
)
|
|
192
|
|
||
Comprehensive (loss) income attributable to common stockholders
|
|
$
|
(40,960
|
)
|
|
$
|
17,136
|
|
(in thousands)
|
|
March 31,
2020 |
|
December 31,
2019 |
||||
Balance Sheet Data:
|
|
|
||||||
|
|
|
|
|
||||
Loans held-for-investment
|
|
$
|
4,251,251
|
|
|
$
|
4,226,212
|
|
Total assets
|
|
$
|
4,476,878
|
|
|
$
|
4,460,862
|
|
Repurchase agreements
|
|
$
|
2,072,099
|
|
|
$
|
1,924,021
|
|
Securitized debt obligations
|
|
$
|
982,312
|
|
|
$
|
1,041,044
|
|
Asset-specific financings
|
|
$
|
119,062
|
|
|
$
|
116,465
|
|
Revolving credit facilities
|
|
$
|
38,361
|
|
|
$
|
42,008
|
|
Convertible senior notes
|
|
$
|
270,031
|
|
|
$
|
269,634
|
|
Total stockholders’ equity
|
|
$
|
961,059
|
|
|
$
|
1,019,136
|
|
|
Three Months Ended March 31, 2020
|
|
Three Months Ended March 31, 2019
|
||||||||||||||||||
(dollars in thousands)
|
Average Balance
|
|
Interest Income/Expense (1)
|
|
Net Yield/Cost of Funds
|
|
Average Balance
|
|
Interest Income/Expense
|
|
Net Yield/Cost of Funds
|
||||||||||
Interest-earning assets (2)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans held-for-investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Senior loans (3)
|
$
|
4,267,974
|
|
|
$
|
62,549
|
|
|
5.9
|
%
|
|
$
|
3,163,419
|
|
|
$
|
55,743
|
|
|
7.0
|
%
|
Subordinated loans
|
27,739
|
|
|
710
|
|
|
10.2
|
%
|
|
35,735
|
|
|
922
|
|
|
10.3
|
%
|
||||
Available-for-sale securities
|
12,798
|
|
|
280
|
|
|
8.8
|
%
|
|
12,798
|
|
|
308
|
|
|
9.6
|
%
|
||||
Held-to-maturity securities
|
13,672
|
|
|
310
|
|
|
9.1
|
%
|
|
26,530
|
|
|
661
|
|
|
10.0
|
%
|
||||
Other
|
|
|
326
|
|
|
|
|
|
|
511
|
|
|
|
||||||||
Total interest income/net asset yield
|
$
|
4,322,183
|
|
|
$
|
64,175
|
|
|
5.9
|
%
|
|
$
|
3,238,482
|
|
|
$
|
58,145
|
|
|
7.2
|
%
|
Interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Borrowings collateralized by:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans held-for-investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Senior loans (3)
|
$
|
3,125,388
|
|
|
$
|
30,191
|
|
|
3.9
|
%
|
|
$
|
2,141,379
|
|
|
$
|
27,115
|
|
|
5.1
|
%
|
Subordinated loans
|
9,371
|
|
|
107
|
|
|
4.6
|
%
|
|
9,519
|
|
|
131
|
|
|
5.5
|
%
|
||||
Available-for-sale securities
|
8,365
|
|
|
76
|
|
|
3.6
|
%
|
|
8,378
|
|
|
92
|
|
|
4.4
|
%
|
||||
Held-to-maturity securities
|
9,557
|
|
|
99
|
|
|
4.1
|
%
|
|
16,631
|
|
|
205
|
|
|
4.9
|
%
|
||||
Other unsecured:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Convertible senior notes
|
269,899
|
|
|
4,516
|
|
|
6.7
|
%
|
|
268,369
|
|
|
4,465
|
|
|
6.7
|
%
|
||||
Total interest expense/cost of funds
|
$
|
3,422,580
|
|
|
34,989
|
|
|
4.1
|
%
|
|
$
|
2,444,276
|
|
|
$
|
32,008
|
|
|
5.2
|
%
|
|
Net interest income/spread
|
|
|
$
|
29,186
|
|
|
1.8
|
%
|
|
|
|
$
|
26,137
|
|
|
2.0
|
%
|
(1)
|
Includes amortization of deferred debt issuance costs.
|
(2)
|
Average balance represents average amortized cost on loans held-for-investment, AFS securities and HTM securities.
|
(3)
|
Loans primarily secured by a first priority lien on commercial real property and related personal property and also includes, when applicable, any companion subordinate loans.
|
|
Three Months Ended
March 31, |
||
(in thousands)
|
2020
|
||
Provision for credit losses on:
|
|
||
Loans held-for-investment
|
$
|
(45,873
|
)
|
Available-for-sale securities
|
(767
|
)
|
|
Held-to-maturity securities
|
(942
|
)
|
|
Other liabilities
|
(5,754
|
)
|
|
Total provision for credit losses
|
$
|
(53,336
|
)
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
(in thousands, except share data)
|
2020
|
|
2019
|
||||
Management fees
|
$
|
3,907
|
|
|
$
|
3,449
|
|
Incentive fees
|
$
|
—
|
|
|
$
|
244
|
|
Servicing expenses
|
$
|
1,109
|
|
|
$
|
773
|
|
Other operating expenses:
|
|
|
|
||||
Compensation paid to certain officers by our Manager and reimbursed by us (1)
|
$
|
1,707
|
|
|
$
|
1,364
|
|
Other direct and allocated costs paid by our Manager and reimbursed by us
|
6,054
|
|
|
5,193
|
|
||
Amortization of executive officers’ restricted stock (2)
|
793
|
|
|
745
|
|
||
All other operating expenses/changes in operating expense accruals
|
(1
|
)
|
|
(1,686
|
)
|
||
Total other operating expenses
|
$
|
8,553
|
|
|
$
|
5,616
|
|
Annualized other operating expense ratio
|
3.4
|
%
|
|
2.5
|
%
|
(1)
|
Officers include our principal financial officer, chief operating officer and general counsel. We do not reimburse our Manager for any expenses related to the compensation of our chief executive officer or chief investment officer.
|
(2)
|
Equity based compensation expense related to the amortization of restricted stock awarded to our executive officers in conjunction with the Plan (see discussion in Note 15 - Equity Incentive Plan of the notes to the consolidated financial statements included in this Quarterly Report on Form 10-Q), including our chief executive officer, chief investment officer, chief operating officer, principal financial officer, secretary and general counsel.
|
(dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Type (1)
|
|
Origination/ Acquisition Date
|
|
Maximum Loan Commitment
|
|
Principal Balance
|
|
Carrying Value
|
|
Cash Coupon (2)
|
|
All-in Yield at Origination (3)
|
|
Original Term (Years)
|
|
State
|
|
Property Type
|
|
Initial
LTV (4)
|
|
Stabilized LTV (5)
|
Senior
|
|
07/18
|
|
$144.3
|
|
$113.8
|
|
$111.6
|
|
L+3.34%
|
|
L+4.27%
|
|
2.0
|
|
CA
|
|
Retail
|
|
50.7%
|
|
55.9%
|
Senior
|
|
12/15
|
|
120.0
|
|
120.0
|
|
117.4
|
|
L+3.65%
|
|
L+4.43%
|
|
4.0
|
|
LA
|
|
Mixed-Use
|
|
65.5%
|
|
60.0%
|
Senior
|
|
10/19
|
|
120.0
|
|
81.6
|
|
79.5
|
|
L+3.24%
|
|
L+3.86%
|
|
3.0
|
|
CA
|
|
Office
|
|
63.9%
|
|
61.1%
|
Senior
|
|
12/19
|
|
101.7
|
|
81.5
|
|
80.1
|
|
L+2.75%
|
|
L+3.23%
|
|
3.0
|
|
IL
|
|
Multifamily
|
|
76.5%
|
|
73.0%
|
Senior
|
|
08/19
|
|
100.3
|
|
74.9
|
|
73.7
|
|
L+2.80%
|
|
L+3.26%
|
|
3.0
|
|
MN
|
|
Office
|
|
73.1%
|
|
71.2%
|
Senior
|
|
07/19
|
|
94.0
|
|
67.5
|
|
65.7
|
|
L+3.69%
|
|
L+4.32%
|
|
3.0
|
|
IL
|
|
Office
|
|
70.0%
|
|
64.4%
|
Senior
|
|
06/19
|
|
92.4
|
|
68.4
|
|
66.4
|
|
L+3.45%
|
|
L+3.88%
|
|
3.0
|
|
TX
|
|
Hotel
|
|
56.1%
|
|
48.1%
|
Senior
|
|
12/18
|
|
92.0
|
|
52.6
|
|
51.7
|
|
L+3.75%
|
|
L+5.21%
|
|
3.0
|
|
NY
|
|
Mixed-Use
|
|
26.2%
|
|
47.6%
|
Senior
|
|
10/19
|
|
87.8
|
|
65.2
|
|
63.8
|
|
L+2.55%
|
|
L+3.05%
|
|
3.0
|
|
TN
|
|
Office
|
|
70.2%
|
|
74.2%
|
Senior
|
|
05/17
|
|
86.8
|
|
82.5
|
|
81.9
|
|
L+3.50%
|
|
L+4.82%
|
|
4.0
|
|
MA
|
|
Office
|
|
71.3%
|
|
71.5%
|
Senior
|
|
01/20
|
|
81.8
|
|
47.5
|
|
46.5
|
|
L+3.25%
|
|
L+3.93%
|
|
3.0
|
|
CO
|
|
Industrial
|
|
47.2%
|
|
47.5%
|
Senior
|
|
06/19
|
|
80.0
|
|
79.4
|
|
78.4
|
|
L+2.69%
|
|
L+3.05%
|
|
3.0
|
|
TX
|
|
Mixed-Use
|
|
71.7%
|
|
72.2%
|
Senior
|
|
09/19
|
|
75.6
|
|
66.5
|
|
65.6
|
|
L+3.07%
|
|
L+3.58%
|
|
3.0
|
|
NY
|
|
Multifamily
|
|
62.7%
|
|
67.1%
|
Senior
|
|
10/19
|
|
75.1
|
|
75.1
|
|
72.4
|
|
L+3.36%
|
|
L+3.73%
|
|
3.0
|
|
FL
|
|
Mixed-Use
|
|
67.7%
|
|
62.9%
|
Senior
|
|
10/17
|
|
74.8
|
|
50.3
|
|
49.4
|
|
L+4.07%
|
|
L+4.47%
|
|
4.0
|
|
DC
|
|
Office
|
|
67.0%
|
|
66.0%
|
Senior
|
|
11/17
|
|
73.3
|
|
68.8
|
|
65.2
|
|
L+4.45%
|
|
L+5.20%
|
|
3.0
|
|
TX
|
|
Hotel
|
|
68.2%
|
|
61.6%
|
Senior
|
|
12/16
|
|
71.8
|
|
68.0
|
|
66.7
|
|
L+3.75%
|
|
L+4.87%
|
|
4.0
|
|
FL
|
|
Office
|
|
73.3%
|
|
63.2%
|
Senior
|
|
06/16
|
|
68.4
|
|
62.4
|
|
61.6
|
|
L+3.87%
|
|
L+4.93%
|
|
4.0
|
|
HI
|
|
Retail
|
|
76.2%
|
|
57.4%
|
Senior
|
|
11/17
|
|
68.3
|
|
64.4
|
|
63.9
|
|
L+4.10%
|
|
L+4.73%
|
|
3.0
|
|
CA
|
|
Office
|
|
66.8%
|
|
67.0%
|
Senior
|
|
12/19
|
|
65.2
|
|
50.2
|
|
49.4
|
|
L+2.80%
|
|
L+3.28%
|
|
3.0
|
|
NY
|
|
Office
|
|
68.8%
|
|
59.3%
|
Senior
|
|
01/19
|
|
64.5
|
|
64.5
|
|
61.1
|
|
L+3.85%
|
|
L+4.38%
|
|
3.0
|
|
MN
|
|
Hotel
|
|
67.2%
|
|
64.5%
|
Senior
|
|
04/18
|
|
64.0
|
|
64.0
|
|
60.9
|
|
L+3.78%
|
|
L+4.23%
|
|
3.0
|
|
GA
|
|
Hotel
|
|
68.8%
|
|
59.8%
|
(dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Type (1)
|
|
Origination/ Acquisition Date
|
|
Maximum Loan Commitment
|
|
Principal Balance
|
|
Carrying Value
|
|
Cash Coupon (2)
|
|
All-in Yield at Origination (3)
|
|
Original Term (Years)
|
|
State
|
|
Property Type
|
|
Initial
LTV (4)
|
|
Stabilized LTV (5)
|
Senior
|
|
09/19
|
|
60.2
|
|
53.7
|
|
53.1
|
|
L+3.00%
|
|
L+3.63%
|
|
2.0
|
|
TX
|
|
Office
|
|
64.7%
|
|
59.0%
|
Senior
|
|
12/18
|
|
60.1
|
|
49.1
|
|
48.4
|
|
L+2.90%
|
|
L+3.44%
|
|
3.0
|
|
TX
|
|
Office
|
|
68.5%
|
|
66.7%
|
Senior
|
|
01/17
|
|
58.6
|
|
47.3
|
|
47.0
|
|
L+4.50%
|
|
L+5.16%
|
|
3.0
|
|
CA
|
|
Industrial
|
|
51.0%
|
|
60.4%
|
Senior
|
|
01/17
|
|
56.2
|
|
56.2
|
|
55.9
|
|
L+4.75%
|
|
L+5.24%
|
|
4.0
|
|
SC
|
|
Office
|
|
67.6%
|
|
67.1%
|
Senior
|
|
06/19
|
|
55.0
|
|
50.0
|
|
48.9
|
|
L+3.10%
|
|
L+3.67%
|
|
3.0
|
|
AL
|
|
Multifamily
|
|
69.5%
|
|
74.0%
|
Senior
|
|
12/15
|
|
54.5
|
|
54.5
|
|
54.2
|
|
L+3.73%
|
|
L+4.87%
|
|
4.0
|
|
PA
|
|
Office
|
|
74.5%
|
|
67.5%
|
Senior
|
|
06/19
|
|
54.1
|
|
48.8
|
|
48.2
|
|
L+3.30%
|
|
L+3.70%
|
|
3.0
|
|
VA
|
|
Office
|
|
49.3%
|
|
49.9%
|
Senior
|
|
12/19
|
|
52.3
|
|
42.2
|
|
41.5
|
|
L+3.61%
|
|
L+4.20%
|
|
3.0
|
|
NY
|
|
Industrial
|
|
76.8%
|
|
72.4%
|
Senior
|
|
10/18
|
|
52.2
|
|
49.4
|
|
48.7
|
|
L+2.70%
|
|
L+3.10%
|
|
3.0
|
|
NJ
|
|
Industrial
|
|
73.9%
|
|
68.8%
|
Senior
|
|
05/17
|
|
52.0
|
|
52.0
|
|
50.8
|
|
L+4.70%
|
|
L+5.50%
|
|
3.0
|
|
HI
|
|
Hotel
|
|
60.8%
|
|
59.4%
|
Senior
|
|
12/18
|
|
51.0
|
|
51.0
|
|
50.4
|
|
L+2.99%
|
|
L+3.40%
|
|
3.0
|
|
IL
|
|
Multifamily
|
|
78.6%
|
|
74.9%
|
Senior
|
|
02/20
|
|
50.2
|
|
42.0
|
|
40.5
|
|
L+3.30%
|
|
L+3.75%
|
|
3.0
|
|
TN
|
|
Hotel
|
|
69.1%
|
|
54.2%
|
Senior
|
|
09/18
|
|
50.1
|
|
21.5
|
|
21.2
|
|
L+3.25%
|
|
L+4.13%
|
|
3.0
|
|
IL
|
|
Office
|
|
47.9%
|
|
56.1%
|
Senior
|
|
08/17
|
|
50.0
|
|
49.7
|
|
49.3
|
|
L+3.09%
|
|
L+4.88%
|
|
3.0
|
|
LA
|
|
Multifamily
|
|
64.6%
|
|
60.9%
|
Senior
|
|
05/18
|
|
50.0
|
|
50.0
|
|
49.3
|
|
L+3.60%
|
|
L+3.85%
|
|
3.0
|
|
TX
|
|
Multifamily
|
|
71.1%
|
|
71.4%
|
Senior
|
|
10/18
|
|
49.1
|
|
36.1
|
|
35.3
|
|
L+4.15%
|
|
L+5.24%
|
|
3.0
|
|
IL
|
|
Multifamily
|
|
60.7%
|
|
62.4%
|
Senior
|
|
12/18
|
|
49.0
|
|
42.9
|
|
42.5
|
|
L+2.93%
|
|
L+3.39%
|
|
3.0
|
|
NY
|
|
Industrial
|
|
56.5%
|
|
56.3%
|
Senior
|
|
12/17
|
|
47.0
|
|
40.6
|
|
40.0
|
|
L+4.38%
|
|
L+5.26%
|
|
3.0
|
|
MA
|
|
Mixed-Use
|
|
72.9%
|
|
62.0%
|
Senior
|
|
05/18
|
|
46.5
|
|
32.0
|
|
31.7
|
|
L+4.07%
|
|
L+4.63%
|
|
3.0
|
|
NY
|
|
Mixed-Use
|
|
57.0%
|
|
51.1%
|
Senior
|
|
08/19
|
|
46.4
|
|
39.7
|
|
38.8
|
|
L+2.84%
|
|
L+3.39%
|
|
3.0
|
|
GA
|
|
Office
|
|
69.5%
|
|
68.3%
|
Senior
|
|
07/16
|
|
46.0
|
|
34.9
|
|
34.7
|
|
L+2.93%
|
|
L+4.99%
|
|
4.0
|
|
VA
|
|
Office
|
|
62.8%
|
|
61.5%
|
Senior
|
|
06/18
|
|
46.0
|
|
44.4
|
|
42.8
|
|
L+3.60%
|
|
L+4.06%
|
|
3.0
|
|
WY
|
|
Hotel
|
|
67.4%
|
|
62.3%
|
Senior
|
|
08/18
|
|
44.8
|
|
41.7
|
|
41.3
|
|
L+2.93%
|
|
L+3.32%
|
|
3.0
|
|
TX
|
|
Multifamily
|
|
68.9%
|
|
63.6%
|
Senior
|
|
05/19
|
|
44.1
|
|
40.6
|
|
40.1
|
|
L+3.20%
|
|
L+3.60%
|
|
3.0
|
|
NY
|
|
Mixed-Use
|
|
59.7%
|
|
55.1%
|
Senior
|
|
10/19
|
|
42.9
|
|
31.0
|
|
30.5
|
|
L+2.75%
|
|
L+3.28%
|
|
3.0
|
|
CA
|
|
Office
|
|
70.6%
|
|
67.8%
|
Senior
|
|
08/17
|
|
40.0
|
|
40.0
|
|
35.9
|
|
L+4.24%
|
|
L+4.40%
|
|
3.0
|
|
KY
|
|
Multifamily
|
|
79.8%
|
|
73.1%
|
Senior
|
|
05/18
|
|
38.8
|
|
33.0
|
|
32.9
|
|
L+3.18%
|
|
L+3.95%
|
|
3.0
|
|
MA
|
|
Office
|
|
47.0%
|
|
41.1%
|
Senior
|
|
07/19
|
|
37.5
|
|
34.6
|
|
33.3
|
|
L+3.70%
|
|
L+4.43%
|
|
3.0
|
|
NJ
|
|
Hotel
|
|
47.8%
|
|
54.6%
|
Senior
|
|
12/17
|
|
37.2
|
|
35.3
|
|
34.9
|
|
L+3.90%
|
|
L+4.55%
|
|
3.0
|
|
CA
|
|
Office
|
|
69.8%
|
|
66.4%
|
Senior
|
|
11/18
|
|
37.1
|
|
22.3
|
|
21.6
|
|
L+3.60%
|
|
L+5.50%
|
|
3.0
|
|
CA
|
|
Mixed-Use
|
|
69.9%
|
|
67.9%
|
Senior
|
|
10/18
|
|
36.8
|
|
29.9
|
|
29.4
|
|
L+2.85%
|
|
L+3.45%
|
|
3.0
|
|
NY
|
|
Industrial
|
|
71.2%
|
|
70.8%
|
Senior
|
|
05/17
|
|
35.2
|
|
31.2
|
|
29.8
|
|
L+5.00%
|
|
L+5.97%
|
|
3.0
|
|
TX
|
|
Office
|
|
68.7%
|
|
65.1%
|
Senior
|
|
06/18
|
|
34.9
|
|
30.3
|
|
28.6
|
|
L+4.07%
|
|
L+4.75%
|
|
3.0
|
|
OH
|
|
Hotel
|
|
70.6%
|
|
57.4%
|
Senior
|
|
03/20
|
|
34.9
|
|
11.7
|
|
11.3
|
|
L+3.42%
|
|
L+4.66%
|
|
3.0
|
|
GA
|
|
Office
|
|
63.2%
|
|
64.6%
|
Senior
|
|
12/18
|
|
34.2
|
|
27.5
|
|
27.3
|
|
L+2.92%
|
|
L+3.27%
|
|
4.0
|
|
IL
|
|
Multifamily
|
|
70.8%
|
|
62.1%
|
Senior
|
|
10/17
|
|
34.1
|
|
23.7
|
|
23.5
|
|
L+4.05%
|
|
L+4.69%
|
|
3.0
|
|
AZ
|
|
Office
|
|
62.6%
|
|
59.5%
|
Senior
|
|
05/17
|
|
33.8
|
|
29.5
|
|
29.2
|
|
L+4.40%
|
|
L+5.36%
|
|
3.0
|
|
AZ
|
|
Office
|
|
69.5%
|
|
59.0%
|
Senior
|
|
03/16
|
|
33.8
|
|
33.8
|
|
33.3
|
|
5.11%
|
|
5.26%
|
|
10.0
|
|
NJ
|
|
Office
|
|
74.9%
|
|
74.9%
|
Senior
|
|
10/19
|
|
33.7
|
|
25.9
|
|
25.4
|
|
L+3.15%
|
|
L+3.75%
|
|
3.0
|
|
CA
|
|
Office
|
|
70.6%
|
|
64.2%
|
Senior
|
|
03/20
|
|
33.5
|
|
24.8
|
|
24.5
|
|
L+2.80%
|
|
L+3.27%
|
|
3.0
|
|
CA
|
|
Office
|
|
63.6%
|
|
66.7%
|
Senior
|
|
11/19
|
|
33.2
|
|
27.4
|
|
26.9
|
|
L+2.70%
|
|
L+3.14%
|
|
3.0
|
|
NC
|
|
Multifamily
|
|
80.0%
|
|
72.8%
|
Senior
|
|
03/19
|
|
32.0
|
|
26.9
|
|
26.6
|
|
L+2.97%
|
|
L+3.42%
|
|
3.0
|
|
NY
|
|
Office
|
|
53.8%
|
|
48.5%
|
Senior
|
|
08/19
|
|
32.0
|
|
10.1
|
|
9.8
|
|
L+3.32%
|
|
L+5.27%
|
|
3.0
|
|
MA
|
|
Office
|
|
76.5%
|
|
54.1%
|
Senior
|
|
08/19
|
|
31.7
|
|
26.1
|
|
25.6
|
|
L+2.80%
|
|
L+3.53%
|
|
3.0
|
|
LA
|
|
Multifamily
|
|
74.1%
|
|
72.4%
|
Senior
|
|
11/19
|
|
31.3
|
|
31.1
|
|
30.8
|
|
L+2.75%
|
|
L+3.27%
|
|
2.0
|
|
IL
|
|
Multifamily
|
|
72.7%
|
|
72.7%
|
Senior
|
|
08/19
|
|
31.3
|
|
25.0
|
|
24.6
|
|
L+2.90%
|
|
L+3.38%
|
|
3.0
|
|
TX
|
|
Multifamily
|
|
79.3%
|
|
72.5%
|
Senior
|
|
05/17
|
|
30.9
|
|
28.7
|
|
28.3
|
|
L+3.50%
|
|
L+5.19%
|
|
4.0
|
|
FL
|
|
Office
|
|
69.3%
|
|
68.5%
|
Senior
|
|
07/17
|
|
30.0
|
|
30.0
|
|
29.8
|
|
L+4.10%
|
|
L+4.58%
|
|
3.0
|
|
NY
|
|
Multifamily
|
|
76.5%
|
|
76.5%
|
Senior
|
|
06/18
|
|
29.3
|
|
24.9
|
|
24.6
|
|
L+3.40%
|
|
L+4.18%
|
|
3.0
|
|
CA
|
|
Office
|
|
69.1%
|
|
64.3%
|
Senior
|
|
06/18
|
|
29.0
|
|
29.0
|
|
28.3
|
|
L+3.55%
|
|
L+3.96%
|
|
3.0
|
|
TX
|
|
Multifamily
|
|
74.3%
|
|
68.2%
|
Senior
|
|
11/18
|
|
28.6
|
|
25.4
|
|
25.1
|
|
L+3.50%
|
|
L+4.12%
|
|
3.0
|
|
TN
|
|
Office
|
|
61.8%
|
|
63.6%
|
Senior
|
|
11/15
|
|
28.5
|
|
28.5
|
|
28.2
|
|
L+4.75%
|
|
L+4.67%
|
|
3.0
|
|
NY
|
|
Office
|
|
66.4%
|
|
68.7%
|
Senior
|
|
11/19
|
|
27.7
|
|
18.5
|
|
18.2
|
|
L+3.18%
|
|
L+3.64%
|
|
3.0
|
|
CA
|
|
Office
|
|
61.7%
|
|
62.8%
|
Senior
|
|
01/19
|
|
27.5
|
|
25.9
|
|
25.7
|
|
L+2.97%
|
|
L+3.38%
|
|
3.0
|
|
TX
|
|
Multifamily
|
|
64.9%
|
|
64.9%
|
Senior
|
|
12/18
|
|
27.5
|
|
24.7
|
|
23.6
|
|
L+3.90%
|
|
L+4.42%
|
|
3.0
|
|
MN
|
|
Hotel
|
|
64.7%
|
|
57.7%
|
(1)
|
“Senior” means a loan primarily secured by a first priority lien on commercial real property and related personal property and also includes, when applicable, any companion subordinate loans.
|
(2)
|
Cash coupon does not include origination or exit fees. Weighted average cash coupon excludes fixed rate loans.
|
(3)
|
Yield includes net origination fees and exit fees, but does not include future fundings, and is expressed as a monthly equivalent. Weighted average yield excludes fixed rate loans.
|
(4)
|
Initial loan-to-value ratio, or initial LTV, is calculated as the initial loan amount (plus any financing that is pari passu with or senior to such loan) divided by the as is appraised value (as determined in conformance with the Uniform Standards of Professional Appraisal Practice, or USPAP) as of the date of the loan was originated set forth in the original appraisal.
|
(5)
|
Stabilized loan-to-value ratio, or stabilized LTV, is calculated as the fully funded loan amount (plus any financing that is pari passu with or senior to such loan), including all contractually provided for future fundings, divided by the as stabilized value (as determined in conformance with USPAP) set forth in the original appraisal. As stabilized value may be based on certain assumptions, such as future construction completion, projected re-tenanting, payment of tenant improvement or leasing commissions allowances or free or abated rent periods, or increased tenant occupancies.
|
(in thousands)
|
Quarterly Average
|
|
End of Period Balance
|
|
Maximum Balance of Any Month-End
|
||||||
For the Three Months Ended March 31, 2020
|
$
|
3,422,580
|
|
|
$
|
3,481,865
|
|
|
$
|
3,481,865
|
|
For the Three Months Ended December 31, 2019
|
$
|
3,299,023
|
|
|
$
|
3,393,172
|
|
|
$
|
3,393,172
|
|
For the Three Months Ended September 30, 2019
|
$
|
3,015,152
|
|
|
$
|
3,233,053
|
|
|
$
|
3,233,053
|
|
For the Three Months Ended June 30, 2019
|
$
|
2,549,873
|
|
|
$
|
2,731,238
|
|
|
$
|
2,731,238
|
|
For the Three Months Ended March 31, 2019
|
$
|
2,444,276
|
|
|
$
|
2,459,932
|
|
|
$
|
2,586,880
|
|
|
March 31, 2020
|
||||||||||||||
(in thousands)
|
Maturity Date (1)
|
|
Committed
|
|
Amount Outstanding
|
|
Unused Capacity
|
|
Total Capacity
|
||||||
Repurchase facilities:
|
|
|
|
|
|
|
|
|
|
||||||
Morgan Stanley Bank
|
June 28, 2021
|
|
No
|
|
$
|
594,545
|
|
|
$
|
5,455
|
|
|
$
|
600,000
|
|
Goldman Sachs Bank
|
May 2, 2021
|
|
No
|
|
$
|
461,860
|
|
|
$
|
38,140
|
|
|
$
|
500,000
|
|
JPMorgan Chase Bank
|
June 28, 2022
|
|
No
|
|
$
|
405,505
|
|
|
$
|
44,495
|
|
|
$
|
450,000
|
|
Citibank
|
January 9, 2023
|
|
No
|
|
$
|
412,812
|
|
|
$
|
87,188
|
|
|
$
|
500,000
|
|
Wells Fargo Bank (2)
|
June 28, 2021
|
|
No
|
|
$
|
180,456
|
|
|
$
|
94,544
|
|
|
$
|
275,000
|
|
Asset-specific financings:
|
|
|
|
|
|
|
|
|
|
||||||
Canadian Imperial Bank of Commerce
|
Various
|
|
No
|
|
$
|
119,062
|
|
|
$
|
30,938
|
|
|
$
|
150,000
|
|
Revolving credit facilities:
|
|
|
|
|
|
|
|
|
|
||||||
Citibank (3)
|
July 26, 2021
|
|
No
|
|
$
|
38,361
|
|
|
$
|
36,639
|
|
|
$
|
75,000
|
|
(1)
|
The facilities are set to mature on the stated maturity date, unless extended pursuant to their terms.
|
(2)
|
We retain an option to increase the maximum facility capacity amount up to $350 million, subject to customary terms and conditions.
|
(3)
|
We retain an option to increase the maximum facility capacity amount up to $150 million, subject to customary terms and conditions.
|
•
|
Unrestricted cash cannot be less than the greater of $30.0 million and 5.0% of recourse indebtedness. As of March 31, 2020, our unrestricted cash, as defined, was $99.3 million, while 5.0% of our recourse indebtedness, as defined, was $45.9 million.
|
•
|
Tangible net worth must be greater than the sum of 75.0% of tangible net worth as of March 31, 2020 and 75.0% of net cash proceeds of additional equity issuances, which calculates to $782.3 million. As of March 31, 2020, our tangible net worth, as defined, was $1.0 billion.
|
•
|
Target asset leverage ratio cannot exceed 77.5% and our total leverage ratio cannot exceed 80.0%. As of March 31, 2020, our target asset leverage ratio, as defined, was 75.2% and our total leverage ratio, as defined, was 78.5%.
|
•
|
Minimum interest coverage must be greater than 1.5:1.0. As of March 31, 2020, our minimum interest coverage, as defined, was 1.8:1.0.
|
(in thousands)
|
March 31,
2020 |
|
December 31,
2019 |
||||
Loans held-for-investment
|
$
|
4,168,312
|
|
|
$
|
4,081,155
|
|
Available-for-sale securities, at fair value
|
8,319
|
|
|
12,830
|
|
||
Held-to-maturity securities
|
10,836
|
|
|
18,076
|
|
||
Restricted cash
|
4,302
|
|
|
—
|
|
||
Total
|
$
|
4,191,769
|
|
|
$
|
4,112,061
|
|
(in thousands)
|
March 31,
2020 |
|
December 31,
2019 |
||||
Within one year
|
$
|
360,113
|
|
|
$
|
709,363
|
|
One to three years
|
2,993,046
|
|
|
2,533,995
|
|
||
Three to five years
|
128,706
|
|
|
149,814
|
|
||
Five years and over
|
—
|
|
|
—
|
|
||
Total
|
$
|
3,481,865
|
|
|
$
|
3,393,172
|
|
•
|
Cash flows from operating activities. For the three months ended March 31, 2020, operating activities decreased our cash balances by approximately $39.3 million, primarily driven by our financial results for the year.
|
•
|
Cash flows from investing activities. For the three months ended March 31, 2020, investing activities decreased our cash balances by approximately $76.5 million, primarily driven by originations of loans held-for-investment, offset by repayments of loans held-for-investment and held-to-maturity securities.
|
•
|
Cash flows from financing activities. For the three months ended March 31, 2020, financing activities increased our cash balance by approximately $64.0 million, primarily driven by net proceeds from repurchase agreements and asset-specific financings, offset by net repayments of securitized debt obligations and revolving credit facilities and dividends paid.
|
|
Changes in Interest Rates
|
||||||||||||||
(in thousands)
|
-100 bps
|
|
-50 bps
|
|
+50 bps
|
|
+100 bps
|
||||||||
Change in value of financial position:
|
|
|
|
|
|
|
|
||||||||
Loans held-for-investment
|
$
|
62
|
|
|
$
|
50
|
|
|
$
|
(872
|
)
|
|
$
|
(1,745
|
)
|
Available-for-sale securities
|
2
|
|
|
2
|
|
|
(2
|
)
|
|
(3
|
)
|
||||
Held-to-maturity securities
|
3
|
|
|
2
|
|
|
(2
|
)
|
|
(5
|
)
|
||||
Repurchase agreements
|
(871
|
)
|
|
(439
|
)
|
|
439
|
|
|
877
|
|
||||
Securitized debt obligations
|
(318
|
)
|
|
(206
|
)
|
|
206
|
|
|
412
|
|
||||
Asset-specific financings
|
(49
|
)
|
|
(25
|
)
|
|
25
|
|
|
50
|
|
||||
Revolving credit facilities
|
(16
|
)
|
|
(8
|
)
|
|
8
|
|
|
16
|
|
||||
Convertible senior notes
|
(3,385
|
)
|
|
(1,678
|
)
|
|
1,649
|
|
|
3,271
|
|
||||
Total net assets
|
$
|
(4,572
|
)
|
|
$
|
(2,302
|
)
|
|
$
|
1,451
|
|
|
$
|
2,873
|
|
|
|
|
|
|
|
|
|
||||||||
|
-100 bps
|
|
-50 bps
|
|
+50 bps
|
|
+100 bps
|
||||||||
Change in annualized net interest income:
|
$
|
26,908
|
|
|
$
|
14,122
|
|
|
$
|
5,203
|
|
|
$
|
10,406
|
|
•
|
we manage our portfolio with focus on diligent, investment-specific market review, enforcement of loan and security rights and timely execution of disposition strategies;
|
•
|
we actively employ portfolio-wide and investment-specific risk measurement and management processes in our daily operations, including utilizing our Manager’s risk management tools; and
|
•
|
we seek to manage credit risk through our rigorous underwriting due diligence process prior to origination or acquisition of our target investments and through the use of non-recourse financing, when and where available and appropriate.
|
•
|
The COVID-19 pandemic could have a significant long-term impact on the broader economy and the commercial real estate market generally, which would negatively impact the value of the assets collateralizing our loans. Our portfolio includes loans collateralized by hotel, retail and other asset classes which have been significantly negatively impacted by the pandemic, particularly due to government-mandated closures and travel restrictions. While we believe the principal amount of our loans are generally adequately protected by the value of the underlying collateral, there can be no assurance that we will realize the entire principal value of certain investments.
|
•
|
We are actively engaged in discussions with our borrowers, some of whom have indicated that, due to the impact of the COVID-19 pandemic, they have been unable to timely execute their business plans, have had to temporarily close their businesses or have experienced other negative business consequences. As a result, some borrowers have requested or indicated that they will be requesting interest deferral or forbearance or other modifications of their loans. We therefore anticipate more frequent modifications of our loans and potentially instances of default or foreclosure on assets underlying our loans, which would adversely affect the credit profile of our assets and our results of operations and financial condition.
|
•
|
We have repurchase agreements with numerous lenders and are actively engaged in discussions with them, particularly with respect to the effects of the COVID-19 pandemic, around the value of pledged assets as defined in such agreements, our ability to deleverage or finance our future loan funding commitments, the application of certain provisions of such agreements to these circumstances and other structural elements under the agreements. If we do not have sufficient liquidity to make required payments on a timely basis, we would likely experience defaults and potential loss of assets to the lenders unless we are able to raise the funds from alternative sources, including by selling or financing assets or raising capital, or liquidity sources, each of which we may be required to do under adverse market conditions or at an inopportune time or on unfavorable terms, or may be unable to do at all. A default under one agreement may trigger cross-defaults under other agreements. Continued market volatility may further limit our ability to access liquidity sources under favorable terms, or at all. Pledging additional collateral or otherwise paying down facilities to satisfy our lenders and avoid potential margin calls and loan defaults would reduce our cash available to meet subsequent margin calls and/or future funding requests, as well as to make other higher yielding investments, thereby decreasing our liquidity, return on equity, available cash, net income and ability to implement our investment strategy. We also have covenants in some of our debt agreements that require us to maintain a minimum amount of cash, which could impact our ability to satisfy
|
•
|
Because of the impacts of the COVID-19 pandemic on global economies and U.S. commercial real estate, we likely will experience reduced availability of liquidity sources, but our requirements for liquidity, including future loan funding obligations and potential margin calls, likely will not be commensurately reduced. If we do not have funds available to meet our obligations, we would have to raise funds from alternative sources, which may be at unfavorable terms or may not be available to us. We expect that the financial impact of the COVID-19 pandemic will likely adversely affect our liquidity position and could limit our ability to grow our business and successfully execute our business strategy. In order to preserve and build our liquidity to weather near-term market uncertainty, satisfy our loan future funding and financing obligations and potentially make opportunistic new investments, we intend to take some or all of the following actions: raise capital from offerings of securities, borrow additional capital, sell assets and/or change our dividend practice (which we did for the quarter ended March 31, 2020 by temporarily suspending the payment of dividends on our common stock). One or more of these conditions could increase our secured debt or be dilutive to our existing stockholders.
|
•
|
Interest rates and credit spreads have been significantly impacted since the outbreak of COVID-19. This can increase the volatility of the fair value of our floating rate loans and also the interest obligations on our floating-rate debt and fair value of our fixed-rate liabilities, which could increase our interest expense.
|
•
|
An extended period of remote working by our personnel could strain our technology resources and introduce operational risks, including heightened cybersecurity risk. Remote working environments may be less secure and more susceptible to hacking attacks, including phishing and social engineering attempts that seek to exploit the COVID-19 pandemic.
|
•
|
lack of liquidity of our investments;
|
•
|
the greater risk of loss to which we are exposed in connection with CMBS, CLOs, B-notes, mezzanine loans and other investments that are subordinated or otherwise junior in an issuer’s capital structure and that involve privately negotiated structures;
|
•
|
risks associated with loans on properties in transition, renovation, restoration or construction;
|
•
|
impairment of our investments and harm to our operations from a prolonged economic slowdown, a lengthy or severe recession or declining real estate values;
|
•
|
the concentration of our loans and investments in terms of geography, asset types and sponsors;
|
•
|
losses resulting from foreclosing on certain of the loans we originate or acquire;
|
•
|
downgrades in credit ratings assigned to our investments;
|
•
|
investments in non-investment grade rated commercial real estate loans or securities;
|
•
|
the difficulty of estimating provisions for loan losses;
|
•
|
our debt;
|
•
|
risks associated with non-recourse securitizations which we use to finance our loans and investments;
|
•
|
losses arising from current and future guarantees of debt and contingent obligations of our subsidiaries;
|
•
|
borrower and counterparty risks;
|
•
|
if the market value or income potential of our assets decline, we may need to increase our real estate assets and income or liquidate our non-qualifying assets in order to maintain our REIT qualification or exclusion from the Investment Company Act;
|
•
|
operational impacts on ourselves and our third-party service providers, including loan servicers and other service providers, such as trustees, appraisers and other due diligence vendors and document custodians, related to our investments in commercial real estate debt investments, as well as for general operating purposes;
|
•
|
the availability of key personnel of the Manager and our service providers as they face changed circumstances and potential illness during the pandemic; and
|
•
|
other risks described in our Annual Report as they may be amended by our periodic filings with the SEC.
|
Exhibit Number
|
|
Exhibit Index
|
3.1
|
|
|
3.2
|
|
|
3.3
|
|
|
4.1
|
|
|
4.2
|
|
|
4.3
|
|
|
4.4
|
|
|
10.1
|
|
|
31.1
|
|
|
31.2
|
|
|
32.1
|
|
|
32.2
|
|
|
101
|
|
Financial statements from the Quarterly Report on Form 10-Q of Granite Point Mortgage Trust Inc. for the three months ended March 31, 2020, filed with the SEC on May 11, 2020, formatted in Inline XBRL: (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Comprehensive Income, (iii) the Condensed Consolidated Statements of Stockholders’ Equity, (iv) the Condensed Consolidated Statements of Cash Flows, and (v) the Notes to the Condensed Consolidated Financial Statements. (filed herewith)
|
104
|
|
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). (filed herewith)
|
|
|
|
GRANITE POINT MORTGAGE TRUST INC.
|
Dated:
|
May 11, 2020
|
By:
|
/s/ John A. Taylor
|
|
|
|
John A. Taylor
President, Chief Executive Officer and Director
(Principal Executive Officer)
|
Dated:
|
May 11, 2020
|
By:
|
/s/ Marcin Urbaszek
|
|
|
|
Marcin Urbaszek
Chief Financial Officer
(Principal Accounting and Financial Officer) |
Date:
|
May 11, 2020
|
|
/s/ John A. Taylor
|
|
|
|
|
John A. Taylor
|
|
|
|
|
Chief Executive Officer and President
|
|
Date:
|
May 11, 2020
|
|
/s/ Marcin Urbaszek
|
|
|
|
|
Marcin Urbaszek
|
|
|
|
|
Chief Financial Officer and Treasurer
|
|
Date:
|
May 11, 2020
|
|
/s/ John A. Taylor
|
|
|
|
|
John A. Taylor
|
|
|
|
|
Chief Executive Officer and President
|
|
Date:
|
May 11, 2020
|
|
/s/ Marcin Urbaszek
|
|
|
|
|
Marcin Urbaszek
|
|
|
|
|
Chief Financial Officer and Treasurer
|
|