Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 04, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-38124 | |
Entity Registrant Name | GRANITE POINT MORTGAGE TRUST INC. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 61-1843143 | |
Entity Address, Address Line One | 3 Bryant Park | |
Entity Address, Address Line Two | Suite 2400A | |
Entity Address, City or Town | New York, | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10036 | |
City Area Code | 212 | |
Local Phone Number | 364-5500 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 52,350,989 | |
Entity Central Index Key | 0001703644 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | GPMT | |
Security Exchange Name | NYSE | |
Series A Preferred Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 7.00% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock, par value $0.01 per share | |
Trading Symbol | GPMTPrA | |
Security Exchange Name | NYSE |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | |
ASSETS | |||
Loans held-for-investment | $ 3,603,016 | $ 3,782,205 | |
Allowance for credit losses | (82,611) | (40,897) | |
Loans held-for-investment, net | 3,520,405 | 3,741,308 | |
Cash and cash equivalents | 168,414 | 191,931 | |
Restricted cash | 45,242 | 12,362 | |
Accrued interest receivable | 11,056 | 10,716 | |
Other assets | 37,541 | 32,201 | |
Total Assets | [1] | 3,782,658 | 3,988,518 |
Liabilities | |||
Repurchase facilities | 1,195,965 | 677,285 | |
Securitized debt obligations | 1,224,035 | 1,677,619 | |
Asset-specific financings | 44,913 | 43,622 | |
Term financing facility | 0 | 127,145 | |
Convertible senior notes | 274,289 | 272,942 | |
Senior secured term loan facilities | 0 | 139,880 | |
Dividends payable | 17,023 | 14,406 | |
Other liabilities | 21,792 | 21,436 | |
Total Liabilities | [1] | 2,778,017 | 2,974,335 |
Commitments and Contingencies | |||
10.00% cumulative redeemable preferred stock, par value $0.01 per share; 50,000,000 shares authorized, and 1,000 shares issued and outstanding ($1,000,000 liquidation preference) | 1,000 | 1,000 | |
Stockholders’ Equity | |||
7.00% Series A cumulative redeemable preferred stock, par value $0.01 per share; 8,280,000 shares authorized, and 8,229,500 and 4,596,500 shares issued and outstanding, respectively; liquidation preference $25.00 per share | 82 | 46 | |
Common stock, par value $0.01 per share; 450,000,000 shares authorized, and 52,350,989 and 53,789,465 shares issued and outstanding, respectively | 524 | 538 | |
Additional paid-in capital | 1,201,716 | 1,125,241 | |
Cumulative earnings | 136,919 | 171,518 | |
Cumulative distributions to stockholders | (335,725) | (284,285) | |
Total Granite Point Mortgage Trust Inc. Stockholders’ Equity | 1,003,516 | 1,013,058 | |
Non-controlling interests | 125 | 125 | |
Total Equity | 1,003,641 | 1,013,183 | |
Total Liabilities and Stockholders’ Equity | $ 3,782,658 | $ 3,988,518 | |
[1] The condensed consolidated balance sheets include assets of consolidated variable interest entities, or VIEs, that can only be used to settle obligations of these VIEs, and liabilities of the consolidated VIEs for which creditors do not have recourse to Granite Point Mortgage Trust Inc. At September 30, 2022, and December 31, 2021, assets of the VIEs totaled $1,644,528 and $2,266,044, respectively, and liabilities of the VIEs totaled $1,225,758 and $1,679,435, respectively. See Note 4 - Variable Interest Entities and Securitized Debt Obligations for additional information. |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | ||
Variable Interest Entity [Line Items] | |||
Preferred stock dividend rate (as a percent) | 10% | ||
Preferred stock liquidation preference (in usd per share) | $ 1,000 | ||
Common stock par value per share (in usd per share) | $ 0.01 | $ 0.01 | |
Common shares authorized | 450,000,000 | 450,000,000 | |
Common shares issued | 52,350,989 | ||
Common shares outstanding | 52,350,989 | ||
Assets of consolidated variable interest entities | [1] | $ 3,782,658,000 | $ 3,988,518,000 |
Liabilities of consolidated variable interest entities | [1] | $ 2,778,017,000 | $ 2,974,335,000 |
Cumulative Preferred Stock | |||
Variable Interest Entity [Line Items] | |||
Temporary equity, par or stated value per share (in usd per share) | $ 0.01 | $ 0.01 | |
Temporary equity shares authorized | 50,000,000 | 50,000,000 | |
Temporary equity shares issued | 1,000 | 1,000 | |
Temporary equity shares outstanding | 1,000 | 1,000 | |
Temporary equity liquidation preference | $ 1,000,000 | $ 1,000,000 | |
Preferred stock dividend rate (as a percent) | 10% | 10% | |
Series A Preferred Stock | |||
Variable Interest Entity [Line Items] | |||
Preferred stock par value per share (in usd per share) | $ 0.01 | $ 0.01 | |
Preferred shares authorized | 8,280,000 | 8,280,000 | |
Preferred shares issued | 8,229,500 | 4,596,500 | |
Preferred shares outstanding | 8,229,500 | 4,596,500 | |
Preferred stock dividend rate (as a percent) | 7% | 7% | |
Preferred stock liquidation preference (in usd per share) | $ 25 | $ 25 | |
Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Assets of consolidated variable interest entities | $ 1,644,528,000 | $ 2,266,044,000 | |
Liabilities of consolidated variable interest entities | $ 1,225,758,000 | $ 1,679,435,000 | |
[1] The condensed consolidated balance sheets include assets of consolidated variable interest entities, or VIEs, that can only be used to settle obligations of these VIEs, and liabilities of the consolidated VIEs for which creditors do not have recourse to Granite Point Mortgage Trust Inc. At September 30, 2022, and December 31, 2021, assets of the VIEs totaled $1,644,528 and $2,266,044, respectively, and liabilities of the VIEs totaled $1,225,758 and $1,679,435, respectively. See Note 4 - Variable Interest Entities and Securitized Debt Obligations for additional information. |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Interest income: | ||||
Loans held-for-investment | $ 52,121 | $ 48,312 | $ 148,475 | $ 151,701 |
Cash and cash equivalents | 714 | 95 | 960 | 298 |
Total interest income | 52,835 | 48,407 | 149,435 | 151,999 |
Interest expense: | ||||
Repurchase facilities | 15,098 | 5,451 | 30,486 | 20,449 |
Securitized debt obligations | 14,416 | 8,777 | 34,992 | 20,523 |
Convertible senior notes | 4,585 | 4,556 | 13,703 | 13,618 |
Term financing facility | 0 | 1,453 | 1,713 | 6,208 |
Asset-specific financings | 442 | 414 | 1,046 | 1,959 |
Senior secured term loan facilities | 0 | 5,654 | 3,754 | 16,587 |
Total interest expense | 34,541 | 26,305 | 85,694 | 79,344 |
Net interest income | 18,294 | 22,102 | 63,741 | 72,655 |
Other income (loss): | ||||
Benefit from (provision for) credit losses | (35,442) | 5,760 | (52,757) | 15,072 |
Loss on extinguishment of debt | 0 | 0 | (18,823) | 0 |
Fee income | 0 | 0 | 954 | 0 |
Total other income (loss) | (35,442) | 5,760 | (70,626) | 15,072 |
Expenses: | ||||
Compensation and benefits | 4,953 | 5,634 | 16,539 | 16,111 |
Servicing expenses | 1,336 | 1,323 | 4,297 | 3,763 |
Other operating expenses | 2,068 | 2,276 | 6,867 | 6,967 |
Total expenses | 8,357 | 9,233 | 27,703 | 26,841 |
Income (loss) before income taxes | (25,505) | 18,629 | (34,588) | 60,886 |
Benefit from income taxes | (1) | (1) | 11 | (4) |
Net income (loss) | (25,504) | 18,630 | (34,599) | 60,890 |
Dividends on preferred stock | 3,626 | 25 | 10,876 | 75 |
Net (loss) income attributable to common stockholders - basic | $ (29,130) | $ 18,605 | $ (45,475) | $ 60,815 |
Basic earnings per weighted average common share (in usd per share) | $ (0.56) | $ 0.34 | $ (0.85) | $ 1.11 |
Diluted earnings per weighted average common share (in usd per share) | $ (0.56) | $ 0.33 | $ (0.85) | $ 1.05 |
Weighted average number of shares of common stock outstanding: | ||||
Basic (in shares) | 52,350,989 | 54,453,546 | 53,234,498 | 54,864,456 |
Diluted (in shares) | 52,350,989 | 56,735,278 | 53,234,498 | 70,902,745 |
Comprehensive income (loss): | ||||
Net (loss) income attributable to common stockholders - basic | $ (29,130) | $ 18,605 | $ (45,475) | $ 60,815 |
Comprehensive (loss) income | $ (29,130) | $ 18,605 | $ (45,475) | $ 60,815 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Cumulative Preferred Stock | Series A Preferred Stock | Total Stockholders’ Equity | Total Stockholders’ Equity Cumulative Preferred Stock | Total Stockholders’ Equity Series A Preferred Stock | Common Stock | Preferred Stock | Additional Paid-in Capital | Cumulative Earnings | Cumulative Distributions to Stockholders | Cumulative Distributions to Stockholders Cumulative Preferred Stock | Cumulative Distributions to Stockholders Series A Preferred Stock | Non-controlling Interests |
Common shares outstanding at beginning of period at Dec. 31, 2020 | 55,205,082 | |||||||||||||
Stockholders’ equity at beginning of period at Dec. 31, 2020 | $ 933,846 | $ 933,846 | $ 552 | $ 0 | $ 1,058,298 | $ 103,165 | $ (228,169) | $ 0 | ||||||
Preferred shares outstanding at beginning of period at Dec. 31, 2020 | 0 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income | 27,991 | 27,991 | 27,991 | |||||||||||
Restricted stock forfeiture (in shares) | (97,425) | |||||||||||||
Restricted stock forfeiture | (919) | (919) | $ (1) | (918) | ||||||||||
Preferred dividends declared | (25) | (25) | (25) | |||||||||||
Common dividends declared | (14,008) | (14,008) | (14,008) | |||||||||||
Contributions from non-controlling interests | 125 | 125 | ||||||||||||
Non-cash equity award compensation | 1,887 | 1,887 | 1,887 | |||||||||||
Common shares outstanding at end of period at Mar. 31, 2021 | 55,107,657 | |||||||||||||
Stockholders’ equity at end of period at Mar. 31, 2021 | $ 948,897 | 948,772 | $ 551 | $ 0 | 1,059,267 | 131,156 | (242,202) | 125 | ||||||
Preferred shares outstanding at end of period at Mar. 31, 2021 | 0 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Preferred dividends declared per share (in usd per share) | $ 25 | |||||||||||||
Dividends declared per common share (in usd per share) | $ 0.25 | |||||||||||||
Common shares outstanding at beginning of period at Dec. 31, 2020 | 55,205,082 | |||||||||||||
Stockholders’ equity at beginning of period at Dec. 31, 2020 | $ 933,846 | 933,846 | $ 552 | $ 0 | 1,058,298 | 103,165 | (228,169) | 0 | ||||||
Preferred shares outstanding at beginning of period at Dec. 31, 2020 | 0 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income | 60,890 | |||||||||||||
Common shares outstanding at end of period at Sep. 30, 2021 | 53,789,465 | |||||||||||||
Stockholders’ equity at end of period at Sep. 30, 2021 | 932,234 | 932,109 | $ 538 | $ 0 | 1,037,395 | 164,055 | (269,879) | 125 | ||||||
Preferred shares outstanding at end of period at Sep. 30, 2021 | 0 | |||||||||||||
Common shares outstanding at beginning of period at Dec. 31, 2020 | 55,205,082 | |||||||||||||
Stockholders’ equity at beginning of period at Dec. 31, 2020 | 933,846 | 933,846 | $ 552 | $ 0 | 1,058,298 | 103,165 | (228,169) | 0 | ||||||
Preferred shares outstanding at beginning of period at Dec. 31, 2020 | 0 | |||||||||||||
Common shares outstanding at end of period at Dec. 31, 2021 | 53,789,465 | |||||||||||||
Stockholders’ equity at end of period at Dec. 31, 2021 | 1,013,183 | 1,013,058 | $ 538 | $ 46 | 1,125,241 | 171,518 | (284,285) | 125 | ||||||
Preferred shares outstanding at end of period at Dec. 31, 2021 | 4,596,500 | 4,596,500,000 | ||||||||||||
Common shares outstanding at beginning of period at Mar. 31, 2021 | 55,107,657 | |||||||||||||
Stockholders’ equity at beginning of period at Mar. 31, 2021 | 948,897 | 948,772 | $ 551 | $ 0 | 1,059,267 | 131,156 | (242,202) | 125 | ||||||
Preferred shares outstanding at beginning of period at Mar. 31, 2021 | 0 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income | 14,269 | 14,269 | 14,269 | |||||||||||
Restricted stock forfeiture (in shares) | (17,628) | |||||||||||||
Restricted stock forfeiture | (275) | (275) | $ 0 | (275) | ||||||||||
Repurchase of common stock | (4,270) | (4,270) | $ (3) | (4,267) | ||||||||||
Repurchase of common stock (in shares) | (300,891) | |||||||||||||
Preferred dividends declared | (25) | (25) | (25) | |||||||||||
Common dividends declared | $ (13,939) | (13,939) | (13,939) | |||||||||||
Non-cash equity award compensation (in shares) | 1,048 | |||||||||||||
Non-cash equity award compensation | $ 1,639 | 1,639 | 1,639 | |||||||||||
Common shares outstanding at end of period at Jun. 30, 2021 | 54,790,186 | |||||||||||||
Stockholders’ equity at end of period at Jun. 30, 2021 | $ 946,296 | 946,171 | $ 548 | $ 0 | 1,056,364 | 145,425 | (256,166) | 125 | ||||||
Preferred shares outstanding at end of period at Jun. 30, 2021 | 0 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Preferred dividends declared per share (in usd per share) | 25 | |||||||||||||
Dividends declared per common share (in usd per share) | $ 0.25 | |||||||||||||
Net income | $ 18,630 | 18,630 | 18,630 | |||||||||||
Settlement of warrants to purchase common stock | (7,478) | (7,478) | (7,478) | |||||||||||
Repurchase of common stock | (13,533) | (13,533) | $ (10) | (13,523) | ||||||||||
Repurchase of common stock (in shares) | (1,000,721) | |||||||||||||
Preferred dividends declared | (25) | (25) | (25) | |||||||||||
Common dividends declared | (13,688) | (13,688) | (13,688) | |||||||||||
Non-cash equity award compensation | 2,032 | 2,032 | 2,032 | |||||||||||
Common shares outstanding at end of period at Sep. 30, 2021 | 53,789,465 | |||||||||||||
Stockholders’ equity at end of period at Sep. 30, 2021 | $ 932,234 | 932,109 | $ 538 | $ 0 | 1,037,395 | 164,055 | (269,879) | 125 | ||||||
Preferred shares outstanding at end of period at Sep. 30, 2021 | 0 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Preferred dividends declared per share (in usd per share) | $ 25 | |||||||||||||
Dividends declared per common share (in usd per share) | $ 0.25 | |||||||||||||
Common shares outstanding at beginning of period at Dec. 31, 2021 | 53,789,465 | |||||||||||||
Stockholders’ equity at beginning of period at Dec. 31, 2021 | $ 1,013,183 | 1,013,058 | $ 538 | $ 46 | 1,125,241 | 171,518 | (284,285) | 125 | ||||||
Preferred shares outstanding at beginning of period at Dec. 31, 2021 | 4,596,500 | 4,596,500,000 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income | 4,636 | 4,636 | 4,636 | |||||||||||
Issuance of common stock, net of offering costs (in shares) | 3,633,000,000 | |||||||||||||
Issuance of preferred stock, net of offering costs | 87,521 | 87,521 | $ 36 | 87,485 | ||||||||||
Restricted stock forfeiture (in shares) | (69,039) | |||||||||||||
Restricted stock forfeiture | (824) | (824) | $ 0 | (824) | ||||||||||
Restricted Stock Unit (RSU) forfeiture | (798) | (798) | (798) | |||||||||||
Preferred dividends declared | $ (25) | $ (3,600) | $ (25) | $ (3,600) | $ (25) | $ (3,600) | ||||||||
Common dividends declared | (13,770) | (13,770) | (13,770) | |||||||||||
Non-cash equity award compensation (in shares) | 135,151 | |||||||||||||
Non-cash equity award compensation | 2,171 | 2,171 | $ 1 | 2,170 | ||||||||||
Common shares outstanding at end of period at Mar. 31, 2022 | 53,855,577 | |||||||||||||
Stockholders’ equity at end of period at Mar. 31, 2022 | $ 1,088,494 | 1,088,369 | $ 539 | $ 82 | 1,213,274 | 176,154 | (301,680) | 125 | ||||||
Preferred shares outstanding at end of period at Mar. 31, 2022 | 8,229,500,000 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Preferred dividends declared per share (in usd per share) | $ 25 | $ 0.4375 | ||||||||||||
Dividends declared per common share (in usd per share) | $ 0.25 | |||||||||||||
Common shares outstanding at beginning of period at Dec. 31, 2021 | 53,789,465 | |||||||||||||
Stockholders’ equity at beginning of period at Dec. 31, 2021 | $ 1,013,183 | 1,013,058 | $ 538 | $ 46 | 1,125,241 | 171,518 | (284,285) | 125 | ||||||
Preferred shares outstanding at beginning of period at Dec. 31, 2021 | 4,596,500 | 4,596,500,000 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income | $ (34,599) | |||||||||||||
Common shares outstanding at end of period at Sep. 30, 2022 | 52,350,989 | 52,350,989 | ||||||||||||
Stockholders’ equity at end of period at Sep. 30, 2022 | $ 1,003,641 | 1,003,516 | $ 524 | $ 82 | 1,201,716 | 136,919 | (335,725) | 125 | ||||||
Preferred shares outstanding at end of period at Sep. 30, 2022 | 8,229,500 | 8,229,500,000 | ||||||||||||
Common shares outstanding at beginning of period at Mar. 31, 2022 | 53,855,577 | |||||||||||||
Stockholders’ equity at beginning of period at Mar. 31, 2022 | 1,088,494 | 1,088,369 | $ 539 | $ 82 | 1,213,274 | 176,154 | (301,680) | 125 | ||||||
Preferred shares outstanding at beginning of period at Mar. 31, 2022 | 8,229,500,000 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income | (13,731) | (13,731) | (13,731) | |||||||||||
Repurchase of common stock | (15,714) | (15,714) | $ (15) | (15,699) | ||||||||||
Repurchase of common stock (in shares) | (1,539,134) | |||||||||||||
Restricted Stock Unit (RSU) forfeiture | (114) | (114) | (114) | |||||||||||
Preferred dividends declared | $ (25) | $ (3,600) | (25) | (3,600) | (25) | (3,600) | ||||||||
Common dividends declared | (13,382) | (13,382) | (13,382) | |||||||||||
Non-cash equity award compensation (in shares) | 34,546 | |||||||||||||
Non-cash equity award compensation | 1,906 | 1,906 | $ 0 | 1,906 | ||||||||||
Common shares outstanding at end of period at Jun. 30, 2022 | 52,350,989 | |||||||||||||
Stockholders’ equity at end of period at Jun. 30, 2022 | $ 1,043,834 | 1,043,709 | $ 524 | $ 82 | 1,199,367 | 162,423 | (318,687) | 125 | ||||||
Preferred shares outstanding at end of period at Jun. 30, 2022 | 8,229,500,000 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Preferred dividends declared per share (in usd per share) | $ 25 | $ 0.4375 | ||||||||||||
Dividends declared per common share (in usd per share) | $ 0.25 | |||||||||||||
Net income | $ (25,504) | (25,504) | (25,504) | |||||||||||
Preferred dividends declared | $ (25) | $ (3,601) | $ (25) | $ (3,601) | $ (25) | $ (3,601) | ||||||||
Common dividends declared | (13,412) | (13,412) | (13,412) | |||||||||||
Non-cash equity award compensation (in shares) | 0 | |||||||||||||
Non-cash equity award compensation | $ 2,349 | 2,349 | $ 0 | 2,349 | ||||||||||
Common shares outstanding at end of period at Sep. 30, 2022 | 52,350,989 | 52,350,989 | ||||||||||||
Stockholders’ equity at end of period at Sep. 30, 2022 | $ 1,003,641 | $ 1,003,516 | $ 524 | $ 82 | $ 1,201,716 | $ 136,919 | $ (335,725) | $ 125 | ||||||
Preferred shares outstanding at end of period at Sep. 30, 2022 | 8,229,500 | 8,229,500,000 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Preferred dividends declared per share (in usd per share) | $ 25 | $ 0.4375 | ||||||||||||
Dividends declared per common share (in usd per share) | $ 0.25 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - (Parenthetical) - $ / shares | 2 Months Ended | 3 Months Ended | ||||||
Jan. 14, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Apr. 15, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | |
Common dividends declared per share (in usd per share) | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | ||
Cumulative Preferred Stock | ||||||||
Preferred dividends declared per share (in usd per share) | 25 | 25 | 25 | $ 25 | $ 25 | $ 25 | ||
Series A Preferred Stock | ||||||||
Preferred dividends declared per share (in usd per share) | $ 0.15069 | $ 0.4375 | $ 0.4375 | $ 0.4375 | $ 0.4375 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash Flows From Operating Activities: | ||
Net (loss) income | $ (34,599) | $ 60,890 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Accretion of discounts and net deferred fees on loans held-for-investment and deferred interest capitalized to loans held-for-investment | (10,014) | (20,310) |
Amortization of deferred debt issuance costs | 9,977 | 9,692 |
Provision for (benefit from) credit losses | 52,757 | (15,072) |
Loss on extinguishment of debt | 11,307 | 0 |
Amortization of equity-based compensation | 6,426 | 5,558 |
Proceeds received from deferred interest capitalized on loans held-for-investment | 4,069 | 0 |
Net change in assets and liabilities: | ||
(Increase) decrease in accrued interest receivable | (340) | 2,490 |
Decrease (increase) in other assets | 2,276 | (4,069) |
(Decrease) increase in other liabilities | (1,092) | 5,846 |
Net cash provided by operating activities | 40,767 | 45,025 |
Cash Flows From Investing Activities: | ||
Originations, acquisitions and additional fundings of loans held-for-investment, net of deferred fees | (449,844) | (549,705) |
Proceeds from loan sales | 43,714 | 0 |
Proceeds from repayment of loans held-for-investment | 581,669 | 815,054 |
Increase in other assets, due from servicer on repayments of loans held-for-investment | (4,248) | (66,944) |
Net cash provided by investing activities | 171,291 | 198,405 |
Cash Flows From Financing Activities: | ||
Proceeds from repurchase facilities | 746,713 | 347,261 |
Principal payments on repurchase facilities | (228,034) | (1,139,378) |
Proceeds from issuance of securitized debt obligations | 0 | 685,766 |
Principal payments on securitized debt obligations | (457,416) | (254,647) |
Repayment of senior secured term loan facilities | (150,000) | 0 |
Proceeds from asset-specific financings | 1,291 | 2,785 |
Repayment of asset-specific financings | 0 | (81,123) |
Proceeds from term financing facility | 0 | 349,291 |
Repayment of term financing facility | (129,099) | (219,311) |
Payment of debt issuance costs | (7,398) | (8,353) |
Settlement of warrants to purchase common stock | 0 | (7,478) |
Contributions from non-controlling interests | 0 | 125 |
Proceeds from issuance of preferred stock, net of offering costs | 87,521 | 0 |
Tax withholding on restricted stock | (1,736) | (1,194) |
Repurchase of common stock | (15,714) | (17,804) |
Dividends paid on preferred stock | (7,968) | (75) |
Dividends paid on common stock | (40,855) | (52,970) |
Net cash used in financing activities | (202,695) | (397,105) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 9,363 | (153,675) |
Cash, cash equivalents and restricted cash at beginning of period | 204,293 | 329,193 |
Cash, cash equivalents and restricted cash at end of period | 213,656 | 175,518 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash paid for interest | 83,391 | 75,818 |
Cash paid for taxes | 440 | 607 |
Noncash Activities: | ||
Dividends declared but not paid at end of period | $ 17,023 | $ 13,713 |
Organization and Operations
Organization and Operations | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Operations | Organization and Operations Granite Point Mortgage Trust Inc., or the Company, is an internally managed real estate finance company that focuses primarily on directly originating, investing in and managing senior floating-rate commercial mortgage loans and other debt and debt-like commercial real estate investments. These investments are capitalized by accessing a variety of funding sources, including borrowing under the Company’s bank credit facilities or other asset-specific financings, issuing commercial real estate collateralized loan obligations, or CRE CLOs, and issuing other forms of secured and unsecured debt and equity securities, depending on market conditions and the Company’s view of the most appropriate funding option available for the Company’s investments. The Company is not in the business of buying or trading securities, and the only securities it owns are the retained interests from its CRE CLOs. The Company’s investment objective is to preserve the Company’s stockholders’ capital while generating attractive risk-adjusted returns over the long term, primarily through dividends derived from current income produced by the Company’s investment portfolio. The Company’s common stock is listed on the New York Stock Exchange, or NYSE, under the symbol “GPMT”. The Company operates its business in a manner that is intended to permit it to maintain its exclusion from registration under the Investment Company Act of 1940, as amended, or the Investment Company Act. The Company operates its business as one segment. The Company was incorporated in Maryland on April 7, 2017, and commenced operations as a publicly traded company on June 28, 2017. The Company has elected to be treated as a real estate investment trust, or REIT, as defined under the Internal Revenue Code of 1986, as amended, or the Code, for U.S. federal income tax purposes. As long as the Company continues to comply with a number of requirements under federal tax law and maintains its qualification as a REIT, the Company generally will not be subject to U.S. federal income taxes to the extent that the Company distributes its taxable income to its stockholders on an annual basis and does not engage in prohibited transactions. However, certain activities that the Company may perform may cause it to earn income which will not be qualifying income for REIT purposes. The Company has designated one of its subsidiaries as a taxable REIT subsidiary, or TRS, as defined in the Code, to engage in such activities. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Consolidation and Basis of Presentation The interim unaudited condensed consolidated financial statements of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission, or SEC. Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles, or GAAP, have been condensed or omitted according to such SEC rules and regulations. However, management believes that the disclosures included in these interim condensed consolidated financial statements are adequate to make the information presented not misleading. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. In the opinion of management, all normal and recurring adjustments necessary to present fairly the financial condition of the Company at September 30, 2022, and results of operations for all periods presented, have been made. The results of operations for the three and nine months ended September 30, 2022, should not be construed as indicative of the results to be expected for future periods or the full year. The unaudited condensed consolidated financial statements of the Company include the accounts of all subsidiaries; inter-company accounts and transactions have been eliminated. Certain prior period amounts have been reclassified to conform to the current period presentation. All entities in which the Company holds investments that are considered VIEs for financial reporting purposes were reviewed for consolidation under the applicable consolidation guidance. Whenever the Company has both the power to direct the activities of an entity that most significantly impact the entity’s performance, and the obligation to absorb losses or the right to receive benefits of the entity that could be significant, the Company consolidates the entity. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make a number of significant estimates. These include estimates of amount and timing of allowances for credit losses, fair value of certain assets and liabilities, and other estimates that affect the reported amounts of certain assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of certain revenues and expenses during the reported period. It is likely that changes in these estimates (e.g., valuation changes to the underlying collateral of loans due to changes in market interest and capitalization rates, leasing, credit worthiness of major tenants, occupancy rates, availability of financing, exit plan, loan sponsorship, actions of other lenders, overall economic and capital markets conditions, the broader commercial real estate market, local geographic sub-markets or other factors) will occur in the near term. The Company believes the estimates and assumptions underlying its condensed consolidated financial statements are reasonable and supportable based on the information available as of September 30, 2022. However, uncertainty over the ultimate impact COVID-19, Federal Reserve actions and geopolitical unrest will have on the global and U.S. economies generally, and the Company’s business in particular, makes any estimates and assumptions as of September 30, 2022, inherently less certain than they would be absent the current and potential impacts of these factors. The Company’s actual results could ultimately differ from its estimates and such differences may be material. Significant Accounting Policies Included in Note 2 to the Consolidated Financial Statements of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, is a summary of the Company’s significant accounting policies. Provided below is a summary of additional accounting policies that are significant to the Company’s condensed consolidated financial condition and results of operations for the three and nine months ended September 30, 2022. Recently Issued and/or Adopted Accounting Standards Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures In March 2022, the Financial Accounting Standards Board, or FASB, issued ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, or ASU 2022-02. The intention of ASU 2022-02 is to simplify the guidance surrounding loan modifications and restructurings and to eliminate the accounting guidance related to troubled debt restructurings, or TDR. The new guidance deviates from current TDR guidance as disclosures will now be based on whether a modification or restructuring with a borrower experiencing financial difficulty results in principal forgiveness, an interest rate reduction, a significant payment delay or term extension as opposed to simply a concession. The new guidance requires disclosure by class of financing receivables, of the types of modifications, the financial effects of those modifications and the performance of those modified receivables in the last twelve months. As it relates to ASC 326-20 the Company is now allowed to use any acceptable method to determine credit losses as a result of modification or restructuring with a borrower experiencing financial difficulty. ASU 2022-02 also requires disclosure of gross write-offs recorded in the current period, on a year-to-date basis, by year of origination in the vintage disclosures. ASU 2022-02 is effective for fiscal years beginning after December 15, 2022. Entities are able to early adopt these amendments and have the ability to early adopt the TDR enhancements separately from the vintage disclosures. The Company has not yet adopted this ASU and will continue to evaluate the effects of adoption. Facilitation of the Effects of Reference Rate Reform on Financial Reporting In March 2020, FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, or ASU No. 2020-04, which provides optional expedients and exceptions for applying GAAP to debt instruments, derivatives, and other contracts that reference the London Interbank Offered Rate, or LIBOR, or other reference rates expected to be discontinued as a result of reference rate reform. This guidance is optional and may be elected through December 31, 2022, using a prospective application on all eligible contract modifications. The Company has loan agreements and debt agreements that incorporate LIBOR as a referenced interest rate. It is difficult to predict what effect, if any, the phase-out of LIBOR and the use of alternative benchmarks may have on the Company’s business or on the overall financial markets. The Company has not adopted any of the optional expedients or exceptions through September 30, 2022, but will continue to evaluate the possible adoption of any such expedients or exceptions. |
Loans Held-for-Investment, Net
Loans Held-for-Investment, Net of Allowance for Credit Losses | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Loans Held-for-Investment, Net of Allowance for Credit Losses | Loans Held-for-Investment, Net of Allowance for Credit Losses The Company originates and acquires commercial real estate debt and related instruments generally to be held as long-term investments. These assets are classified as “loans held-for-investment” on the condensed consolidated balance sheets. Loans held-for-investment are reported at cost, net of any unamortized acquisition premiums or discounts, loan fees, origination costs and allowance for credit losses, as applicable. The following tables summarize the Company’s loans held-for-investment by asset type, property type and geographic location as of September 30, 2022, and December 31, 2021: September 30, (dollars in thousands) Senior Loans (1) Mezzanine Loans B-Notes Total Unpaid principal balance $ 3,601,341 $ 10 $ 13,826 $ 3,615,177 Unamortized (discount) premium (51) — — (51) Unamortized net deferred origination fees (12,110) — — (12,110) Allowance for credit losses (81,921) (10) (680) (82,611) Carrying value $ 3,507,259 $ — $ 13,146 $ 3,520,405 Unfunded commitments $ 312,649 $ — $ — $ 312,649 Number of loans 95 1 1 97 Weighted average coupon 5.5 % 13.0 % 8.0 % 5.5 % Weighted average years to maturity (2) 1.0 3.1 4.3 1.0 December 31, (dollars in thousands) Senior Loans (1) Mezzanine Loans B-Notes Total Unpaid principal balance $ 3,781,771 $ 1,048 $ 14,006 $ 3,796,825 Unamortized (discount) premium (70) — — (70) Unamortized net deferred origination fees (14,550) — — (14,550) Allowance for credit losses (38,719) (1,048) (1,130) (40,897) Carrying value $ 3,728,432 $ — $ 12,876 $ 3,741,308 Unfunded commitments $ 403,584 $ — $ — $ 403,584 Number of loans 103 1 1 105 Weighted average coupon 4.5 % 13.0 % 8.0 % 4.5 % Weighted average years to maturity (2) 1.1 3.9 5.1 1.1 ____________________ (1) Loans primarily secured by a first priority lien on commercial real property and related personal property and also includes, when applicable, any companion subordinate loans. (2) Based on contractual maturity date. Certain loans are subject to contractual extension options with such conditions stipulated in the applicable loan documents. Actual maturities may differ from contractual maturities stated herein as certain borrowers may have the right to prepay with or without paying a prepayment fee. The Company may also extend contractual maturities in connection with certain loan modifications. (dollars in thousands) September 30, December 31, Property Type Carrying Value % of Loan Portfolio Carrying Value % of Loan Portfolio Office $ 1,501,205 42.6 % $ 1,703,951 45.5 % Multifamily 1,046,073 29.7 % 1,061,434 28.4 % Hotel 355,472 10.1 % 464,816 12.4 % Retail 347,636 9.9 % 341,834 9.1 % Industrial 183,483 5.2 % 118,564 3.2 % Other 86,536 2.5 % 50,709 1.4 % Total $ 3,520,405 100.0 % $ 3,741,308 100.0 % (dollars in thousands) September 30, December 31, Geographic Location Carrying Value % of Loan Portfolio Carrying Value % of Loan Portfolio Northeast $ 895,918 25.4 % $ 917,029 24.5 % Southwest 745,792 21.2 % 836,955 22.4 % West 558,836 15.9 % 658,429 17.6 % Midwest 599,567 17.0 % 637,784 17.0 % Southeast 720,292 20.5 % 691,111 18.5 % Total $ 3,520,405 100.0 % $ 3,741,308 100.0 % At September 30, 2022, and December 31, 2021, loans held-for-investment with a carrying value, net of allowance for credit losses, of $3.4 billion and $3.7 billion, respectively, collateralized the Company’s secured financing agreements and CRE CLOs. See Note 4 - Variable Interest Entities and Securitized Debt Obligations and Note 5 - Secured Financing Agreements. The following table summarizes activity related to loans held-for-investment, net of allowance for credit losses, for the three and nine months ended September 30, 2022, and 2021: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2022 2021 2022 2021 Balance at beginning of period $ 3,830,014 $ 3,577,644 $ 3,741,308 $ 3,847,803 Originations, additional fundings, upsizing of loans and capitalized deferred interest 72,435 325,597 457,545 565,212 Repayments (346,737) (290,497) (585,227) (815,054) Loan sales — — (43,714) — Net discount accretion (premium amortization) 3 (2) 19 9 Increase in net deferred origination fees (1,454) (3,566) (6,012) (5,905) Amortization of net deferred origination fees 1,475 2,584 8,307 10,700 (Provision for) benefit from credit losses (35,331) 2,451 (51,821) 11,446 Balance at end of period $ 3,520,405 $ 3,614,211 $ 3,520,405 $ 3,614,211 Allowance for Credit Losses Subsequent to the adoption of “Financial Instruments – Credit Losses – Measurement of Credit Losses on Financial Instruments (Topic 326),” or ASU 2016-13, on January 1, 2020, to estimate and recognize an allowance for credit losses on loans held-for-investment and the related unfunded commitments, the Company continues to use a third-party licensed probability-weighted analytical model. The Company employs quarterly updated macroeconomic forecasts, which reflect expectations for overall economic output, interest rates, values of real estate properties and other factors, including the ongoing impacts of the COVID-19 pandemic, geopolitical instability and the Federal Reserve monetary policy on the overall U.S. economy and commercial real estate markets generally. Significant inputs to the Company’s estimate of the allowance for credit losses include loan specific factors such as debt service coverage ratio, or DSCR, loan to value ratio, or LTV, remaining contractual loan term, property type and others. Additionally, there are a number of significant assumptions and qualitative factors included when determining the Company’s estimates, including, but not limited to, macroeconomic conditions and portfolio trends. As part of the quarterly review of the portfolio, the Company assesses the expected repayment date of each loan, which is used to determine the contractual term for purposes of computing the current expected credit loss, or CECL, reserve. In certain instances, for loans with unique risk and credit characteristics, the Company may instead elect to employ different methods to estimate an allowance for credit losses that also conform to ASU 2016-13 and related guidance. As of September 30, 2022, the Company recognized an allowance for credit losses related to its loans held-for-investment of $82.6 million, which reflects a total increase in the provision for credit losses of $35.3 million for the three months ended September 30, 2022. The increase in the Company’s allowance for credit losses was impacted by uncertain macroeconomic outlook, weakening in credit fundamentals, volatility and reduced liquidity in the capital markets especially for certain property types such as office assets, and inflationary expectations resulting in meaningfully higher interest rates, and uncertainty with respect to geopolitical environment, partially offset by loan repayments and principal amortization. The $35.3 million increase in the Company’s CECL reserve was primarily driven by recording an incremental allowance of credit losses of $30.0 million related to four collateral-dependent loans that were individually assessed in accordance with ASU 2016-13 during the three months ended September 30, 2022, of which two were first mortgage loans secured by office properties that were individually assessed for the first time. The collateral properties securing these loans were affected by the above factors resulting in slowing of business plan execution and the borrowers’ ability to either sell or refinance their properties. At September 30, 2022, the Company had four collateral-dependent loans with an aggregate principal balance of $330.1 million, for which the Company recorded an allowance for credit loss of $50.4 million. See Note 9 - Fair Value, for further detail. The remaining increase in the Company’s provision for credit losses was related to changes in the portfolio mix and implementing in its analysis a more conservative macroeconomic forecast driven by the factors discussed above. The allowance for credit losses related to the Company’s loans held-for-investment is deducted from the amortized cost basis of related loans, while the allowance for credit losses related to off-balance sheet unfunded commitments on existing loans is recorded as a component of other liabilities on the Company’s condensed consolidated balance sheets. As of September 30, 2022, the Company recognized $2.9 million in other liabilities related to the allowance for credit losses on unfunded commitments and recorded a provision for credit losses of $0.1 million for the three months ended September 30, 2022. Changes in the provision for credit losses for both loans held-for-investment and their related unfunded commitments are recognized through net (loss) income on the Company’s condensed consolidated statements of comprehensive income. The following table presents the changes for the three and nine months ended September 30, 2022, and 2021 in the allowance for credit losses on loans held-for-investment: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2022 2021 2022 2021 Balance at beginning of period $ 47,280 $ 57,671 $ 40,897 $ 66,666 Provision for (benefit from) credit losses 35,331 (2,451) 52,333 (11,446) Write-off — (9,740) (10,107) (9,740) Recoveries of amounts previously written off — (512) — Balance at end of period $ 82,611 $ 45,480 $ 82,611 $ 45,480 During the three months ended September 30, 2022, two first mortgage loans collateralized by office properties with a total principal balance of $123.0 million were downgraded to a risk rating of “5” as a result of current uncertain macroeconomic and capital markets conditions and the continued adverse impact of the COVID-19 pandemic on leasing activity for the collateral properties (see “Loan Risk Ratings” below). The Company placed these loans on nonaccrual status as of September 30, 2022. During the nine months ended September 30, 2022, the Company resolved a first mortgage loan that had an outstanding unpaid principal balance of $54.0 million. The loan had been previously placed on nonaccrual status. The Company recognized a write-off of $10.1 million on the sale of the loan. Subsequent to September 30, 2022, the Company resolved a first mortgage loan with principal balance of $114.1 million, which involved a coordinated sale of the collateral property through a deed-in-lieu of foreclosure transaction and the Company providing the new ownership group with a new $77.3 million senior floating rate loan. As of September 30, 2022, this loan had a risk rating of “5” and was on nonaccrual status. Generally, loans held-for-investment are placed on nonaccrual status when delinquent for more than 90 days or earlier when determined not to be probable of full collection. Interest income recognition is suspended when loans are placed on nonaccrual status. As of September 30, 2022, the Company has four senior loans with a total unpaid principal balance of $330.1 million and carrying value of $279.3 million that are held on nonaccrual status. As described above, one of these loans was resolved subsequent to September 30, 2022. No other loans were considered past due, and no other loans were held on nonaccrual status as of September 30, 2022. The following table presents the carrying value of loans held-for-investment on nonaccrual status for the three and nine months ended September 30, 2022, and 2021: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2022 2021 2022 2021 Nonaccrual loan carrying value at beginning of period $ 188,839 $ 225,115 $ 145,370 $ 17,835 Addition of nonaccrual loan carrying value $ 103,076 $ — $ 192,399 $ 207,280 Removal of nonaccrual loan carrying value $ (12,656) $ (79,765) $ (58,510) $ (79,765) Nonaccrual loan carrying value at end of period $ 279,259 $ 145,350 $ 279,259 $ 145,350 Loan Risk Ratings The Company’s primary credit quality indicators are its risk ratings. The Company evaluates the credit quality of each loan at least quarterly by assessing the risk factors of each loan and assigning a risk rating based on a variety of factors. Risk factors include property type, geographic and local market dynamics, physical condition, leasing and tenant profile, projected cash flow, loan structure and exit plan, LTV, project sponsorship and other factors deemed necessary. Risk ratings are defined as follows: 1 – Lower Risk 2 – Average Risk 3 – Acceptable Risk 4 – Higher Risk: A loan that has exhibited material deterioration in cash flows and/or other credit factors, which, if negative trends continue, could be indicative of probability of principal loss. 5 – Loss Likely: A loan that has a significantly increased probability of principal loss. The following table presents the number of loans, unpaid principal balance and carrying value by risk rating for loans held-for-investment as of September 30, 2022, and December 31, 2021: (dollars in thousands) September 30, December 31, Risk Rating Number of Loans Unpaid Principal Balance Carrying Value Number of Loans Unpaid Principal Balance Carrying Value 1 10 $ 370,589 $ 367,230 9 $ 245,939 $ 245,042 2 52 1,780,250 1,755,988 58 2,002,008 1,983,615 3 26 885,074 875,400 25 747,631 739,343 4 5 249,202 242,528 11 633,153 627,938 5 4 330,062 279,259 2 168,094 145,370 Total 97 $ 3,615,177 $ 3,520,405 105 $ 3,796,825 $ 3,741,308 As of September 30, 2022, the weighted average risk rating of the Company’s portfolio was 2.6, weighted by unpaid principal balance, versus 2.5 as of June 30, 2022, and 2.6 as of December 31, 2021. The portfolio risk rating was largely unchanged versus the period ended June 30, 2022, as changes in portfolio mix from the new loan origination and payoffs largely offset select ratings downgrades as of September 30, 2022. The stability in the portfolio’s weighted average risk rating as of September 30, 2022, as compared to the period ended December 31, 2021, reflects originations of new loans, loan payoffs and improvement in the performance of the properties securing select loans within the Company’s loan portfolio, which were partially offset by risk rating downgrades of several loans impacted by the uncertain macroeconomic and capital markets conditions and experiencing delays in execution of business plans and leasing for the collateral properties. The following table presents the carrying value of loans held-for-investment as of September 30, 2022, and December 31, 2021, by risk rating and year of origination: September 30, 2022 (in thousands) Origination Year Risk Rating 2022 2021 2020 2019 2018 2017 Prior Total 1 $ — $ — $ 45,048 $ 232,305 $ 56,873 $ — $ 33,004 $ 367,230 2 $ 342,296 $ 508,612 $ 93,095 $ 537,701 $ 192,793 $ 41,088 $ 40,403 $ 1,755,988 3 $ — $ 94,994 $ 18,529 $ 234,250 $ 272,555 $ 163,385 $ 91,687 $ 875,400 4 $ — $ — $ — $ — $ 52,900 $ 71,215 $ 118,413 $ 242,528 5 $ — $ — $ — $ 157,112 $ 97,176 $ 24,971 $ — $ 279,259 Total $ 342,296 $ 603,606 $ 156,672 $ 1,161,368 $ 672,297 $ 300,659 $ 283,507 $ 3,520,405 December 31, 2021 (in thousands) Origination Year Risk Rating 2021 2020 2019 2018 2017 2016 Prior Total 1 — — 136,138 75,592 — 33,312 — $ 245,042 2 623,992 90,381 828,432 347,173 12,877 31,872 48,888 $ 1,983,615 3 45,062 59,186 147,214 242,662 153,732 68,012 23,475 $ 739,343 4 — — 260,672 74,808 173,081 — 119,377 $ 627,938 5 — — — 99,515 45,855 — — $ 145,370 Total $ 669,054 $ 149,567 $ 1,372,456 $ 839,750 $ 385,545 $ 133,196 $ 191,740 $ 3,741,308 |
Variable Interest Entities and
Variable Interest Entities and Securitized Debt Obligations | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities and Securitized Debt Obligations | Variable Interest Entities and Securitized Debt Obligations The Company finances pools of its commercial real estate loans through CRE CLOs, which are considered VIEs for financial reporting purposes, and, thus, are reviewed for consolidation under the applicable consolidation guidance. The Company has both the power to direct the activities of the CRE CLOs that most significantly impact the entities’ performance and the obligation to absorb losses or the right to receive benefits of the entities that could be significant; therefore, the Company consolidates the CRE CLOs. The following table presents a summary of the assets and liabilities of all VIEs consolidated on the Company’s condensed consolidated balance sheets as of September 30, 2022, and December 31, 2021: (in thousands) September 30, December 31, Loans held-for-investment $ 1,604,660 $ 2,257,768 Allowance for credit losses (14,189) (16,904) Loans held-for-investment, net 1,590,471 2,240,864 Restricted cash 44,470 10,377 Other assets 9,587 14,803 Total Assets $ 1,644,528 $ 2,266,044 Securitized debt obligations $ 1,224,035 $ 1,677,619 Other liabilities 1,723 1,816 Total Liabilities $ 1,225,758 $ 1,679,435 The securitized debt obligations issued by the CRE CLOs are recorded at outstanding principal, net of any unamortized deferred debt issuance costs, on the Company’s condensed consolidated balance sheets. The following table details the Company’s CRE CLO securitized debt obligations: (dollars in thousands) September 30, December 31, Securitized Debt Obligations Principal Balance Carrying Value Wtd. Avg. Yield/Cost (1) Principal Balance Carrying Value Wtd. Avg. Yield/Cost (1) GPMT 2021-FL4 CRE CLO Collateral assets (2) $ 621,409 $ 611,688 L+3.7% $ 621,409 $ 613,504 L+3.7% Financing provided 502,564 498,963 L+1.7% 502,564 498,117 L+1.7% GPMT 2021-FL3 CRE CLO Collateral assets (3) 695,669 688,120 L+3.9% 768,850 763,607 L+3.9% Financing provided 557,830 557,934 L+1.7% 630,818 629,049 L+1.7% GPMT 2019-FL2 CRE CLO Collateral assets (4) 338,151 335,133 L+4.2% 617,119 605,831 L+ 4.1% Financing provided 166,953 167,138 L+2.5% 446,849 445,920 L+ 1.8% GPMT 2018-FL1 CRE CLO Collateral assets (5) — — 270,722 268,322 L+ 5.0% Financing provided — — 104,532 104,532 L+ 2.8% Total Collateral assets $ 1,655,229 $ 1,634,941 L+3.9% $ 2,278,100 $ 2,251,264 L+ 4.0% Financing provided $ 1,227,347 $ 1,224,035 L+1.8% $ 1,684,763 $ 1,677,618 L+ 1.8% ____________________ (1) Calculations of all in yield on collateral assets at origination are based on a number of assumptions (some or all of which may not occur) and are expressed as monthly equivalent yields that include net origination fees and exit fees and exclude future fundings and any potential or completed loan amendments or modifications. Calculations of cost of funds is the weighted average coupon of the CRE CLO, exclusive of any CRE CLO issuance costs. (2) Includes $36.0 million of restricted cash as of September 30, 2022. No restricted cash is included as of December 31, 2021. Yield on collateral assets is exclusive of restricted cash. (3) Includes $5.5 million and $10.4 million of restricted cash as of September 30, 2022, and December 31, 2021, respectively. Yield on collateral assets is exclusive of restricted cash. (4) Includes $3.0 million of restricted cash as of September 30, 2022. No restricted cash is included as of December 31, 2021. Yield on collateral assets is exclusive of restricted cash. |
Secured Financing Agreements
Secured Financing Agreements | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Secured Financing Agreements | Secured Financing Agreements To finance its loans held-for-investment, the Company has a variety of secured financing arrangements with several counterparties, including repurchase facilities and an asset-specific financing facility. The Company’s repurchase facilities are collateralized by loans held-for-investment and certain cash balances. Although the transactions under repurchase facilities represent committed borrowings until maturity, other than with respect to the Company’s Centennial Bank repurchase facility, which provides financing on a non-mark-to-market basis, the other respective lenders retain the right to mark the underlying collateral to fair value. A reduction in the value of pledged assets due to collateral-specific credit events, or, with respect to a limited number of the Company’s repurchase facilities, capital market events, would require the Company to fund margin calls. The Company does not typically retain similar rights for the Company to make margin calls on its underlying borrowers as a result of a determination by the Company and/or its financing counterparty that there has been a decrease in the market value of the underlying pledged collateral. The Company’s asset-specific financing facility is also collateralized by loans held-for-investment. The facility does not contain mark-to-market provisions and is generally term-matched to the underlying assets. The following tables summarize details of the Company’s borrowings outstanding on its secured financing agreements as of September 30, 2022, and December 31, 2021: September 30, 2022 (dollars in thousands) Maturity Date (1) Amount Outstanding Unused Capacity Total Capacity Carrying Value of Collateral Weighted Average Borrowing Rate Repurchase facilities: Morgan Stanley Bank June 28, 2023 $ 533,010 $ 66,990 $ 600,000 $ 741,846 5.4 % Goldman Sachs Bank USA (2) July 13, 2023 127,725 122,275 250,000 195,828 5.5 % JPMorgan Chase Bank June 28, 2024 135,170 214,830 350,000 212,930 5.2 % Citibank May 25, 2025 266,010 233,990 500,000 392,875 4.8 % Wells Fargo Bank June 28, 2023 98,150 — 98,150 152,026 4.9 % Centennial Bank August 29, 2024 35,900 64,100 100,000 93,912 7.8 % Total/Weighted Average $ 1,195,965 $ 702,185 $ 1,898,150 $ 1,789,417 Asset-specific financings: CIBC Bank USA Term Matched $ 44,913 $ 105,087 $ 150,000 $ 57,488 4.5 % December 31, 2021 (dollars in thousands) Maturity Date (1) Amount Outstanding Unused Capacity Total Capacity Carrying Value of Collateral Weighted Average Borrowing Rate Repurchase facilities: Morgan Stanley Bank June 28, 2022 $ 230,982 $ 269,018 $ 500,000 $ 382,017 2.2 % Goldman Sachs Bank USA July 13, 2023 81,227 168,773 250,000 111,811 2.6 % JPMorgan Chase Bank June 28, 2022 104,215 345,785 450,000 188,838 2.3 % Citibank January 9, 2023 202,944 297,056 500,000 285,767 1.8 % Wells Fargo Bank June 28, 2022 57,917 42,083 100,000 86,409 2.3 % Total/Weighted Average $ 677,285 $ 1,122,715 $ 1,800,000 $ 1,054,842 Asset-specific financings: CIBC Bank USA Term Matched $ 43,622 $ 106,378 $ 150,000 $ 56,129 1.8 % Term financing facility: Goldman Sachs Bank USA (3) February 14, 2025 $ 127,145 $ — $ 127,145 $ 329,256 3.7 % ____________________ (1) The facilities are set to mature on the stated maturity date, unless extended pursuant to their terms. (2) As of September 30, 2022, the Company retained options to increase the maximum facility capacity amount up to $350 million, subject to customary terms and conditions. (3) On April 22, 2022, the Company voluntarily repaid this facility in whole. In connection with this repayment, the Company incurred a charge on early extinguishment of debt of approximately $(1.7) million related to unamortized transaction costs. At September 30, 2022, and December 31, 2021, the Company’s borrowings outstanding on its secured financing facilities had contractual maturities as follows: September 30, 2022 (in thousands) Repurchase Facilities Asset-Specific Financings (1) Term Financing Facility Total Amount Outstanding 2022 $ — $ 44,913 $ — $ 44,913 2023 758,885 — — 758,885 2024 171,070 — — 171,070 2025 266,010 — — 266,010 2026 — — — — Thereafter — — — — Total $ 1,195,965 $ 44,913 $ — $ 1,240,878 December 31, 2021 (in thousands) Repurchase Facilities Asset-Specific Financings (1) Term Financing Facility (2) Total Amount Outstanding 2022 $ 393,114 43,622 $ — $ 436,736 2023 284,171 — — 284,171 2024 — — — — 2025 — — 127,145 127,145 2026 — — — — Thereafter — — — — Total $ 677,285 $ 43,622 $ 127,145 $ 848,052 __________________ (1) Maturity date is term matched to the corresponding loans. (2) Amount outstanding includes unamortized debt issuance costs. The following table summarizes certain characteristics of the Company’s repurchase facilities and counterparty concentration at September 30, 2022, and December 31, 2021: September 30, 2022 December 31, 2021 (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 $ 533,010 $ 213,681 21 % 0.74 $ 230,982 $ 155,446 15 % 0.49 JPMorgan Chase Bank 135,170 79,613 8 % 1.75 104,215 87,103 9 % 0.49 Goldman Sachs Bank USA 127,725 195,916 20 % 0.78 81,227 31,852 3 % 1.53 Citibank 266,010 128,067 13 % 2.65 202,944 85,631 8 % 1.02 Wells Fargo Bank 98,150 152,715 15 % 0.74 57,917 29,320 3 % 0.49 Centennial Bank 35,900 94,403 9 % 1.92 — — Total $ 1,195,965 $ 864,395 $ 677,285 $ 389,352 ____________________ (1) Represents the excess of the carrying amount or market value of the loans held-for-investment pledged as collateral for repurchase facilities, including accrued interest plus any cash on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest. The Company does not anticipate any defaults by its financing counterparties, although there can be no assurance that one or more defaults will not occur. Financial Covenants The Company is subject to a variety of financial covenants under its secured financing agreements. The following represent the most restrictive financial covenants across the agreements as of September 30, 2022: • Unrestricted cash cannot be less than the greater of $30.0 million and 5.0% of recourse indebtedness. As of September 30, 2022, the Company’s unrestricted cash was $168.4 million, while 5.0% of the Company’s recourse indebtedness was $32.6 million. • Tangible net worth must be greater than the sum of (i) 75.0% of the Company’s tangible net worth as of June 28, 2017, and (ii) 75.0% of net cash proceeds of the Company’s equity issuances after June 28, 2017, which calculates to $931.7 million. As of September 30, 2022, the Company’s tangible net worth was $1.1 billion • Target asset leverage ratio cannot exceed 77.5% and total leverage ratio cannot exceed 80.0%. As of September 30, 2022, the Company’s target asset leverage ratio was 67.2% and the Company’s total leverage ratio was 71.8%. • Minimum interest coverage must be greater than 1.5:1.0. As of September 30, 2022, the Company’s minimum interest coverage was 1.7:1.0. The Company may also be subject to additional financial covenants in connection with various other agreements it enters into in the normal course of its business. The Company was in compliance with all of its financial covenants as of September 30, 2022, and December 31, 2021, and intends to continue to operate in a manner which complies with all of its financial covenants. Senior Secured Term Loan Facilities On September 25, 2020, the Company, as a guarantor, and certain of its subsidiaries, as borrowers, entered into a senior secured term loan credit agreement with certain investment vehicles managed by Pacific Investment Management Company LLC, or PIMCO, providing for up to $300.0 million of senior secured term loan facilities. On September 28, 2020, the Company borrowed $225.0 million under the initial term loan facility and on May 9, 2022, the Company completed the repayment of the borrowings under the senior secured term loan facilities. In connection with this repayment, during the nine months ended September 30, 2022, the Company realized a charge on early extinguishment of debt of approximately $(17.1) million comprised of the prepayment penalty and a charge-off of unamortized discount including transaction costs. Warrants to Purchase Shares of Common Stock In connection with the senior secured term loan facilities, on September 25, 2020, the Company issued warrants to purchase up to 6.066 million shares of the Company’s common stock, $0.01 par value per share, to certain investment vehicles managed by PIMCO. On September 25, 2021, the warrant holders forfeited unvested warrants exercisable for 1,516,455 shares of common stock because the Company chose not to borrow the $75.0 million of delayed draw commitments available under the senior secured term loan facilities. On September 30, 2021, the Company settled warrants to purchase approximately 1.06 million shares of common stock at an exercise price of $6.47 per share of common stock for a net cash amount of approximately $7.5 million. On October 4, 2021, the Company settled the remaining warrants to purchase approximately 3.49 million shares of common stock at an exercise price of $6.47 per share of common stock for a net cash amount of approximately $24.7 million. The Company currently has no warrants outstanding. The table below summarizes the net carrying amount of the senior secured term loan facilities: (in thousands) September 30, December 31, Principal outstanding $ — $ 150,000 Less: Unamortized debt discount and issuance costs — (10,120) Net carrying value $ — $ 139,880 |
Convertible Senior Notes
Convertible Senior Notes | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes | Convertible Senior Notes In December 2017, the Company closed a private placement of $125.0 million aggregate principal amount of convertible senior notes due 2022. In January 2018, an additional $18.8 million in notes were issued by the Company in connection with the exercise of the initial purchaser’s option. The net proceeds from the offering were approximately $139.5 million after deducting underwriting discounts and expenses. The notes are unsecured, pay interest semiannually at a rate of 5.625% per annum and are convertible at the option of the holder into shares of the Company’s common stock. The notes will mature on December 1, 2022, unless earlier converted or repurchased in accordance with their terms. The Company does not have the right to redeem the notes prior to maturity, but may be required to repurchase the notes from holders under certain circumstances. As of September 30, 2022, the notes had a conversion rate of 51.9943 shares of common stock per $1,000 principal amount of the notes . In October 2018, the Company closed an underwritten public offering of $131.6 million aggregate principal amount of convertible senior notes due 2023. The net proceeds from the offering were approximately $127.7 million after deducting underwriting discounts and expenses. The notes are unsecured, pay interest semiannually at a rate of 6.375% per annum and are convertible at the option of the holder into shares of the Company’s common stock. The notes will mature on October 1, 2023, unless earlier converted or repurchased in accordance with their terms. The Company does not have the right to redeem the notes prior to maturity, but may be required to repurchase the notes from holders under certain circumstances. As of September 30, 2022, the notes had a conversion rate of 50.0894 shares of common stock per $1,000 principal amount of the notes . The consolidated amount outstanding due on convertible senior notes as of September 30, 2022, and December 31, 2021, was $274.3 million and $272.9 million, respectively, net of deferred issuance costs. The following table details the interest expense related to the convertible senior notes: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2022 2021 2022 2021 Cash coupon $ 4,119 $ 4,119 $ 12,357 $ 12,357 Amortization of issuance costs 466 437 1,346 1,261 Total interest expense $ 4,585 $ 4,556 $ 13,703 $ 13,618 The following table details the carrying value of the Convertible Senior Notes: December 2022 Convertible Senior Notes (in thousands) September 30, December 31, Principal outstanding $ 143,750 $ 143,750 Less: Unamortized issuance costs (165) (875) Net carrying value $ 143,585 $ 142,875 October 2023 Convertible Senior Notes (in thousands) September 30, December 31, Principal outstanding $ 131,600 $ 131,600 Less: Unamortized issuance costs (896) (1,533) Net carrying value $ 130,704 $ 130,067 |
Senior Secured Term Loan Facili
Senior Secured Term Loan Facilities and Warrants to Purchase Shares of Common Stock | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Senior Secured Term Loan Facilities and Warrants to Purchase Shares of Common Stock | Secured Financing Agreements To finance its loans held-for-investment, the Company has a variety of secured financing arrangements with several counterparties, including repurchase facilities and an asset-specific financing facility. The Company’s repurchase facilities are collateralized by loans held-for-investment and certain cash balances. Although the transactions under repurchase facilities represent committed borrowings until maturity, other than with respect to the Company’s Centennial Bank repurchase facility, which provides financing on a non-mark-to-market basis, the other respective lenders retain the right to mark the underlying collateral to fair value. A reduction in the value of pledged assets due to collateral-specific credit events, or, with respect to a limited number of the Company’s repurchase facilities, capital market events, would require the Company to fund margin calls. The Company does not typically retain similar rights for the Company to make margin calls on its underlying borrowers as a result of a determination by the Company and/or its financing counterparty that there has been a decrease in the market value of the underlying pledged collateral. The Company’s asset-specific financing facility is also collateralized by loans held-for-investment. The facility does not contain mark-to-market provisions and is generally term-matched to the underlying assets. The following tables summarize details of the Company’s borrowings outstanding on its secured financing agreements as of September 30, 2022, and December 31, 2021: September 30, 2022 (dollars in thousands) Maturity Date (1) Amount Outstanding Unused Capacity Total Capacity Carrying Value of Collateral Weighted Average Borrowing Rate Repurchase facilities: Morgan Stanley Bank June 28, 2023 $ 533,010 $ 66,990 $ 600,000 $ 741,846 5.4 % Goldman Sachs Bank USA (2) July 13, 2023 127,725 122,275 250,000 195,828 5.5 % JPMorgan Chase Bank June 28, 2024 135,170 214,830 350,000 212,930 5.2 % Citibank May 25, 2025 266,010 233,990 500,000 392,875 4.8 % Wells Fargo Bank June 28, 2023 98,150 — 98,150 152,026 4.9 % Centennial Bank August 29, 2024 35,900 64,100 100,000 93,912 7.8 % Total/Weighted Average $ 1,195,965 $ 702,185 $ 1,898,150 $ 1,789,417 Asset-specific financings: CIBC Bank USA Term Matched $ 44,913 $ 105,087 $ 150,000 $ 57,488 4.5 % December 31, 2021 (dollars in thousands) Maturity Date (1) Amount Outstanding Unused Capacity Total Capacity Carrying Value of Collateral Weighted Average Borrowing Rate Repurchase facilities: Morgan Stanley Bank June 28, 2022 $ 230,982 $ 269,018 $ 500,000 $ 382,017 2.2 % Goldman Sachs Bank USA July 13, 2023 81,227 168,773 250,000 111,811 2.6 % JPMorgan Chase Bank June 28, 2022 104,215 345,785 450,000 188,838 2.3 % Citibank January 9, 2023 202,944 297,056 500,000 285,767 1.8 % Wells Fargo Bank June 28, 2022 57,917 42,083 100,000 86,409 2.3 % Total/Weighted Average $ 677,285 $ 1,122,715 $ 1,800,000 $ 1,054,842 Asset-specific financings: CIBC Bank USA Term Matched $ 43,622 $ 106,378 $ 150,000 $ 56,129 1.8 % Term financing facility: Goldman Sachs Bank USA (3) February 14, 2025 $ 127,145 $ — $ 127,145 $ 329,256 3.7 % ____________________ (1) The facilities are set to mature on the stated maturity date, unless extended pursuant to their terms. (2) As of September 30, 2022, the Company retained options to increase the maximum facility capacity amount up to $350 million, subject to customary terms and conditions. (3) On April 22, 2022, the Company voluntarily repaid this facility in whole. In connection with this repayment, the Company incurred a charge on early extinguishment of debt of approximately $(1.7) million related to unamortized transaction costs. At September 30, 2022, and December 31, 2021, the Company’s borrowings outstanding on its secured financing facilities had contractual maturities as follows: September 30, 2022 (in thousands) Repurchase Facilities Asset-Specific Financings (1) Term Financing Facility Total Amount Outstanding 2022 $ — $ 44,913 $ — $ 44,913 2023 758,885 — — 758,885 2024 171,070 — — 171,070 2025 266,010 — — 266,010 2026 — — — — Thereafter — — — — Total $ 1,195,965 $ 44,913 $ — $ 1,240,878 December 31, 2021 (in thousands) Repurchase Facilities Asset-Specific Financings (1) Term Financing Facility (2) Total Amount Outstanding 2022 $ 393,114 43,622 $ — $ 436,736 2023 284,171 — — 284,171 2024 — — — — 2025 — — 127,145 127,145 2026 — — — — Thereafter — — — — Total $ 677,285 $ 43,622 $ 127,145 $ 848,052 __________________ (1) Maturity date is term matched to the corresponding loans. (2) Amount outstanding includes unamortized debt issuance costs. The following table summarizes certain characteristics of the Company’s repurchase facilities and counterparty concentration at September 30, 2022, and December 31, 2021: September 30, 2022 December 31, 2021 (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 $ 533,010 $ 213,681 21 % 0.74 $ 230,982 $ 155,446 15 % 0.49 JPMorgan Chase Bank 135,170 79,613 8 % 1.75 104,215 87,103 9 % 0.49 Goldman Sachs Bank USA 127,725 195,916 20 % 0.78 81,227 31,852 3 % 1.53 Citibank 266,010 128,067 13 % 2.65 202,944 85,631 8 % 1.02 Wells Fargo Bank 98,150 152,715 15 % 0.74 57,917 29,320 3 % 0.49 Centennial Bank 35,900 94,403 9 % 1.92 — — Total $ 1,195,965 $ 864,395 $ 677,285 $ 389,352 ____________________ (1) Represents the excess of the carrying amount or market value of the loans held-for-investment pledged as collateral for repurchase facilities, including accrued interest plus any cash on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest. The Company does not anticipate any defaults by its financing counterparties, although there can be no assurance that one or more defaults will not occur. Financial Covenants The Company is subject to a variety of financial covenants under its secured financing agreements. The following represent the most restrictive financial covenants across the agreements as of September 30, 2022: • Unrestricted cash cannot be less than the greater of $30.0 million and 5.0% of recourse indebtedness. As of September 30, 2022, the Company’s unrestricted cash was $168.4 million, while 5.0% of the Company’s recourse indebtedness was $32.6 million. • Tangible net worth must be greater than the sum of (i) 75.0% of the Company’s tangible net worth as of June 28, 2017, and (ii) 75.0% of net cash proceeds of the Company’s equity issuances after June 28, 2017, which calculates to $931.7 million. As of September 30, 2022, the Company’s tangible net worth was $1.1 billion • Target asset leverage ratio cannot exceed 77.5% and total leverage ratio cannot exceed 80.0%. As of September 30, 2022, the Company’s target asset leverage ratio was 67.2% and the Company’s total leverage ratio was 71.8%. • Minimum interest coverage must be greater than 1.5:1.0. As of September 30, 2022, the Company’s minimum interest coverage was 1.7:1.0. The Company may also be subject to additional financial covenants in connection with various other agreements it enters into in the normal course of its business. The Company was in compliance with all of its financial covenants as of September 30, 2022, and December 31, 2021, and intends to continue to operate in a manner which complies with all of its financial covenants. Senior Secured Term Loan Facilities On September 25, 2020, the Company, as a guarantor, and certain of its subsidiaries, as borrowers, entered into a senior secured term loan credit agreement with certain investment vehicles managed by Pacific Investment Management Company LLC, or PIMCO, providing for up to $300.0 million of senior secured term loan facilities. On September 28, 2020, the Company borrowed $225.0 million under the initial term loan facility and on May 9, 2022, the Company completed the repayment of the borrowings under the senior secured term loan facilities. In connection with this repayment, during the nine months ended September 30, 2022, the Company realized a charge on early extinguishment of debt of approximately $(17.1) million comprised of the prepayment penalty and a charge-off of unamortized discount including transaction costs. Warrants to Purchase Shares of Common Stock In connection with the senior secured term loan facilities, on September 25, 2020, the Company issued warrants to purchase up to 6.066 million shares of the Company’s common stock, $0.01 par value per share, to certain investment vehicles managed by PIMCO. On September 25, 2021, the warrant holders forfeited unvested warrants exercisable for 1,516,455 shares of common stock because the Company chose not to borrow the $75.0 million of delayed draw commitments available under the senior secured term loan facilities. On September 30, 2021, the Company settled warrants to purchase approximately 1.06 million shares of common stock at an exercise price of $6.47 per share of common stock for a net cash amount of approximately $7.5 million. On October 4, 2021, the Company settled the remaining warrants to purchase approximately 3.49 million shares of common stock at an exercise price of $6.47 per share of common stock for a net cash amount of approximately $24.7 million. The Company currently has no warrants outstanding. The table below summarizes the net carrying amount of the senior secured term loan facilities: (in thousands) September 30, December 31, Principal outstanding $ — $ 150,000 Less: Unamortized debt discount and issuance costs — (10,120) Net carrying value $ — $ 139,880 |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 9 Months Ended |
Sep. 30, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents include cash held in bank accounts and cash held in money market funds on an overnight basis. The Company is required to maintain certain cash balances in restricted accounts as collateral for the Company’s repurchase facilities and with counterparties to support investment activities. As of September 30, 2022, the Company held $0.7 million in restricted cash in connection with its non-CRE CLO financing activities, compared to $2.0 million as of December 31, 2021. In addition, as of September 30, 2022, the Company held $44.5 million in restricted cash representing proceeds from principal paydowns of loans held in the CRE CLOs, compared to $10.4 million as of December 31, 2021. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported on the Company’s condensed consolidated balance sheets as of September 30, 2022, and December 31, 2021, that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows: (in thousands) September 30, December 31, Cash and cash equivalents $ 168,414 $ 191,931 Restricted cash 45,242 12,362 Total cash, cash equivalents and restricted cash $ 213,656 $ 204,293 |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Fair Value Measurements ASC 820, Fair Value Measurements , or ASC 820, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 clarifies that fair value should be based on the assumptions market participants would use when pricing an asset or liability and establishes a fair value hierarchy that prioritizes the information used to develop those assumptions. The fair value hierarchy gives the highest priority to quoted prices available in active markets ( i.e. , market-based or observable inputs) and the lowest priority to data lacking transparency ( i.e. , unobservable inputs) resulting in the use of management assumptions. Additionally, ASC 820 requires an entity to consider all aspects of nonperformance risk, including the entity’s own credit standing, when measuring fair value of a liability. ASC 820 establishes a three-level hierarchy to be used when measuring and disclosing fair value. An instrument’s categorization within the fair value hierarchy is based on the lowest level of significant input to its valuation. Following is a description of the three levels: Level 1 Inputs are quoted prices in active markets for identical assets or liabilities as of the measurement date under current market conditions. Additionally, the entity must have the ability to access the active market and the quoted prices cannot be adjusted by the entity. Level 2 Inputs include quoted prices in active markets for similar assets or liabilities; quoted prices in inactive markets for identical or similar assets or liabilities; or inputs that are observable or can be corroborated by observable market data by correlation or other means for substantially the full-term of the assets or liabilities. Level 3 Unobservable inputs are supported by little or no market activity. The unobservable inputs represent the assumptions that market participants would use to price the assets and liabilities, including risk. Generally, Level 3 assets and liabilities are valued using pricing models, discounted cash flow methodologies or similar techniques that require significant judgment or estimation. Following are descriptions of the valuation methodologies used to measure material assets and liabilities at fair value and details of the valuation models, key inputs to those models and significant assumptions utilized. Recurring Fair Value As of September 30, 2022, and December 31, 2021, the Company held no assets or liabilities measured at fair value on a recurring basis. Nonrecurring Fair Value The Company may be required to measure certain assets or liabilities at fair value from time to time. These periodic fair value measures typically result from establishing allowances for collateral-dependent assets under GAAP. These items would constitute nonrecurring fair value measures under ASC 820. For collateral-dependent loans that are identified as impaired, the Company measures allowance for credit losses by comparing its estimation of the fair value of the underlying collateral, less costs to sell, to the carrying value of the respective loan. To estimate the fair value of the underlying collateral the Company may (i) use certain valuation techniques which, among others, may include a discounted cash flow method of valuation, or (ii) by obtaining a third-party independent assessment of value such as an appraisal or other opinion of value. These valuations require significant judgments, which include assumptions regarding capitalization rates, discount rates, leasing, creditworthiness of major tenants, occupancy rates, availability and cost of financing, exit plan, loan sponsorship, actions of other lenders, and other factors deemed relevant. During the three months ended September 30, 2022, the Company assigned a risk rating of “5” to four of its loans held-for-investment with an aggregate outstanding principal balance of $330.1 million and an aggregate carrying value of $279.3 million during the quarterly risk rating process. Therefore, these loans had their CECL reserve recorded based on the estimation of the fair value of the loans’ underlying property collateral, less costs to sell, and are measured at fair value on a nonrecurring basis using significant unobservable inputs and are classified as Level 3 assets in the fair value hierarchy. As of September 30, 2022, three loans with an aggregate outstanding principal balance of $215.9 million and an aggregate carrying value of $182.1 million were valued using the discounted cash flow method. The significant unobservable inputs used to estimate the fair value on these loans include the exit capitalization rate, discount rate and return on cost assumptions used to forecast the future sale price of the underlying real estate collateral, which ranged from 6.75% to 8.50%, from 8.00% to 9.75%, and from 5.50% to 6.00%, respectively. As of September 30, 2022, one loan with an outstanding principal balance of $114.1 million and a carrying value of $97.2 million was valued using the estimated proceeds from the sale of the collateral property, less the estimated costs to sell the property. Refer to Note 3 - Loans Held-for-Investment, Net of Allowance for Credit Losses for further detail. Fair Value of Financial Instruments In accordance with ASC 820, the Company is required to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized in the condensed consolidated balance sheets, for which fair value can be estimated. The following describes the Company’s methods for estimating the fair value for financial instruments: • Loans held-for-investment are carried at cost, net of any unamortized acquisition premiums or discounts, loan fees, origination costs and allowance for credit losses, as applicable. The Company estimates the fair value of its loans held-for-investment by assessing any changes in market interest rates, credit spreads for loans of comparable risk as corroborated by inquiry of other market participants, shifts in credit profiles and actual operating results, taking into consideration such factors as underlying property type, property competitive position within its market, market and submarket fundamentals, tenant mix, nature of business plan, sponsorship, extent of leverage and other loan terms. The Company categorizes the fair value measurement of these assets as Level 3. • Cash and cash equivalents and restricted cash have a carrying value which approximates fair value because of the short maturities of these instruments. The Company categorizes the fair value measurement of these assets as Level 1. • The carrying value of underlying loans in repurchase, asset-specific and term financing facilities that mature in less than one year generally approximates fair value due to the short maturities. The Company’s long-term repurchase, asset-specific and term financing facilities 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. The Company’s term financing facility was paid off in full as of September 30, 2022. • Securitized debt obligations are recorded at outstanding principal, net of any unamortized deferred debt issuance costs. In determining the fair value of its securitized debt obligations, management’s judgment may be used to arrive at fair value that considers prices obtained from third-party pricing providers, broker quotes received and other applicable market data. If observable market prices are not available or insufficient to determine fair value due principally to illiquidity in the marketplace, then fair value is based upon internally developed models that are primarily based on observable market-based inputs but also include unobservable market data inputs (including prepayment speeds, delinquency levels and credit losses). The Company categorizes the fair value measurement of these liabilities as Level 2. • Convertible senior notes are carried at their unpaid principal balance, net of any unamortized deferred issuance costs. The Company estimates the fair value of its convertible senior notes using the market transaction price nearest to September 30, 2022. The Company categorizes the fair value measurement of these assets as Level 2. • Senior secured term loan facilities are carried at their unpaid principal balance, net of any unamortized deferred issuance costs. The Company estimated the fair value of its senior secured term loan facilities at the carrying value thereof as of December 31, 2021. The Company categorizes the fair value measurement of these assets as Level 2. The senior secured term loan facilities were paid off in full as of September 30, 2022. The following table presents the carrying values and estimated fair values of assets and liabilities that are required to be recorded or disclosed at fair value at September 30, 2022, and December 31, 2021: September 30, 2022 December 31, 2021 (in thousands) Carrying Value Fair Value Carrying Value Fair Value Assets Loans held-for-investment, net of allowance for credit losses $ 3,520,405 $ 3,508,561 $ 3,741,308 $ 3,771,216 Cash and cash equivalents $ 168,414 $ 168,414 $ 191,931 $ 191,931 Restricted cash $ 45,242 $ 45,242 $ 12,362 $ 12,362 Liabilities Repurchase facilities $ 1,195,965 $ 1,195,965 $ 677,285 $ 677,285 Securitized debt obligations $ 1,224,035 $ 1,183,706 $ 1,677,619 $ 1,681,514 Asset-specific financings $ 44,913 $ 44,913 $ 43,622 $ 43,622 Term financing facility $ — $ — $ 127,145 $ 127,145 Convertible senior notes $ 274,289 $ 270,826 $ 272,942 $ 278,554 Senior secured term loan facilities $ — $ — $ 139,880 $ 139,880 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The following represent the material commitments and contingencies of the Company as of September 30, 2022: Legal and Regulatory From time to time, the Company may be subject to liability under laws and government regulations and various claims and legal actions arising in the ordinary course of business. Liabilities are established for legal claims when payments associated with the claims become probable and the costs can be reasonably estimated. The actual costs of resolving legal claims may be substantially higher or lower than the amounts established for those claims. Based on information currently available, management is not aware of any legal or regulatory claims that would have a material effect on the Company’s condensed consolidated financial statements and, therefore, no accrual is required as of September 30, 2022. Unfunded Commitments on Loans Held-for-Investment Certain of the Company’s commercial real estate loan agreements contain provisions and obligations to extend credit to its borrowers through its unfunded loan commitments over the contractual period of its loans. As of September 30, 2022, and December 31, 2021, the Company had unfunded loan commitments of $312.6 million and $403.6 million, respectively, on loans held-for-investment, which it expects to fund, subject to the satisfaction of any conditions precedent to such commitments, over the tenure of these loans. These commitments generally provide funding for lease-related or capital improvement expenditures, as well as interest and carry costs, all of which will vary depending on the progress of capital improvement projects, leasing and cash flows at the properties that serve as collateral for the Company’s loans. Therefore, the exact timing and amounts of such loan balance future fundings are generally uncertain and will depend on the current and future performance of the collateral properties. The Company typically finances the funding of its loan commitments on terms generally consistent with its overall financing facilities; however, most of its financing agreement counterparties are not obligated to fund their ratable portion of these loan commitments over time and have varying degrees of discretion over future loan funding obligations, including the advance rates on their fundings. The Company may be obligated to fund loan commitments with respect to a pledged asset even if the applicable financing counterparty will not fund their ratable portion of the loan commitment and/or has made margin calls with respect to such pledged asset. As of September 30, 2022, the Company recognized $2.9 million in other liabilities related to the allowance for credit losses on unfunded loan commitments. See Note 3 - Loans Held-for-Investment, Net of Allowance for Credit Losses for further detail. |
Preferred Stock
Preferred Stock | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Preferred Stock | Preferred Stock Temporary Equity The Company’s 10% cumulative redeemable preferred stock ranks, with respect to rights to the payment of dividends and the distribution of assets upon liquidation, dissolution or winding up of the Company, senior to the rights of holders of the Company’s common stock and on parity with the Company’s 7.00% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock. The holders of the 10% cumulative redeemable preferred stock are entitled to receive, when, as and if authorized and declared by the Company’s board of directors, cumulative cash dividends at the rate of 10% per annum of the $1,000 liquidation preference per share of the 10% cumulative redeemable preferred stock. Such dividends accrue on a daily basis and are cumulative from and including the initial issue date of the 10% cumulative redeemable preferred stock of June 28, 2017. The Company currently has the option to redeem the 10% cumulative redeemable preferred stock at a redemption price of $1,000 per share, plus any accrued and unpaid dividends. At any time after six years from the initial issue date, the Company will, at the request of any 10% cumulative redeemable preferred stockholder, repurchase the holder’s 10% cumulative redeemable preferred stock at a price of $1,000 per share, plus any accrued and unpaid dividends. During the three and nine months ended September 30, 2022, and 2021, the Company declared dividends to the 10% cumulative redeemable preferred stockholder of $25,000 and $75,000, respectively. Issuance of Sub-REIT Preferred Stock In January 2021, a subsidiary of the Company issued 625 shares of Series A preferred stock of which 500 shares were retained by the Company and 125 shares were sold to third-party investors for proceeds of $0.1 million. The 500 preferred shares of Series A preferred stock retained by the Company are eliminated in the Company’s condensed consolidated statements of changes in equity and the 125 shares sold to third-party investors are shown in the Company’s condensed consolidated statements of changes in equity as non-controlling interests. Issuance of 7.00% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (Series A Preferred Stock) On November 30, 2021, and December 10, 2021, the Company received total net proceeds of $110.5 million from the issuance of 4,596,500 shares of Series A Preferred Stock, or the Initial Series A Preferred Stock Shares, after deducting the underwriting discount of $3.6 million and issuance costs of $0.8 million. The Series A Preferred Stock is currently listed on the NYSE under the symbol “GPMT PrA”. On January 18, 2022, and February 8, 2022, the Company received total net proceeds of $87.5 million from the issuance of 3,633,000 additional shares of Series A Preferred Stock, or the Additional Series A Preferred Stock Shares, after deducting the underwriting discount of $2.9 million and issuance costs of $0.4 million. The first dividend on the Initial Series A Preferred Stock Shares was payable on January 18, 2022, and covered the period from, and including, November 30, 2021, to, but not including, January 15, 2022, and was in the amount of $0.15069 per share. The first dividend on the Additional Series A Preferred Stock Shares was payable on April 15, 2022, and covered the period from, and including, January 15, 2022, to, but not including, April 15, 2022, and was in the amount of $0.4375 per share. On and after November 30, 2026, the Company, at its option, upon not fewer than 30 days’ nor more than 60 days’ written notice, may redeem the Series A Preferred Stock, in whole, at any time, or in part, from time to time, for cash, at a redemption price of $25.00 per share, plus any accrued and unpaid dividends thereon to, but excluding, the date fixed for redemption. Upon the occurrence of a Change of Control event (as defined in the Articles Supplementary designating the Series A Preferred Stock, or the Articles Supplementary), the Company may, at its option, upon not less than 30 nor more than 60 days’ written notice, redeem the Series A Preferred Stock, in whole or in part, within 120 days on or after the first date on which such Change of Control occurred, for cash at a redemption price of $25.00 per share, plus any accumulated and unpaid dividends thereon to, but excluding, the redemption date, without interest. Holders of Series A Preferred Stock do not have any voting rights except in limited circumstances as set forth in the Articles Supplementary. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2022 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Common Stock Distributions to Stockholders The following table presents cash dividends declared by the Company’s board of directors on its common stock from March 31, 2020, through September 30, 2022: Declaration Date Record Date Payment Date Cash Dividend Per Share 2022 September 20, 2022 October 3, 2022 October 17, 2022 $ 0.25 June 16, 2022 July 1, 2022 July 15, 2022 $ 0.25 March 17, 2022 April 1, 2022 April 15, 2022 $ 0.25 $ 0.75 2021 December 16, 2021 December 31, 2021 January 18, 2022 $ 0.25 September 15, 2021 October 1, 2021 October 19, 2021 $ 0.25 June 15, 2021 July 1, 2021 July 19, 2021 $ 0.25 March 18, 2021 April 1, 2021 April 19, 2021 $ 0.25 $ 1.00 Share Repurchases On December 16, 2021, the Company announced that its board of directors had increased the Company’s share repurchase authorization to allow for the repurchase of up to an aggregate of 4,000,000 shares of the Company’s common stock. The Company’s share repurchase program has no expiration date. The shares are expected to be repurchased from time to time through privately negotiated transactions or open market transactions, including pursuant to a trading plan in accordance with Rules 10b5-1 and 10b-18 under the Securities Exchange Act of 1934, as amended, or the Exchange Act, or by any combination of such methods. The manner, price, number and timing of share repurchases will be subject to a variety of factors, including market conditions and applicable SEC rules. During the nine months ended September 30, 2022, the Company repurchased 1,539,134 shares of its common stock for an aggregate cost of $15.7 million. No shares were repurchased during the three months ended September 30, 2022. During the three and nine months ended September 30, 2021, the Company repurchased 1,000,721 and 1,301,612 shares of its common stock for an aggregate cost of $13.5 million and $17.8 million, respectively. As of September 30, 2022, there remained 1,159,254 shares authorized for repurchase. The Company has also authorized the repurchase of shares of restricted stock granted to employees and directors for tax withholding purposes. During the nine months ended September 30, 2022, and 2021, the Company repurchased from employees and directors 69,039 and 115,053 shares of its common stock, respectively, for an aggregate cost of $0.8 million and $1.2 million, respectively. No shares were repurchased from employees or directors for the three months ended September 30, 2022, or 2021. At-the-Market Offering The Company is party to an equity distribution agreement under which the Company may sell up to an aggregate of 8,000,000 shares of its common stock from time to time in any method permitted by law deemed to be an “at-the-market” offering as defined in Rule 415 under the Securities Act of 1933, as amended, or Securities Act. As of September 30, 2022, 3,242,364 shares of common stock had been sold under the equity distribution agreement for total accumulated net proceeds of approximately $61.2 million. No shares were sold during the three and nine months ended September 30, 2022, or the three and nine months ended September 30, 2021. Warrants to Purchase Common Stock See Note 7 - Senior Secured Term Loan Facilities and Warrants to Purchase Shares of Common Stock for details on warrants to purchase shares of the Company’s common stock. Preferred Stock Distributions to Stockholders The following table presents cash dividends declared by the Company’s board of directors on its Series A Preferred Stock from June 30, 2020, through September 30, 2022: Declaration Date Record Date Payment Date Cash Dividend Per Share 2022 September 20, 2022 October 3, 2022 October 17, 2022 $ 0.43750 June 16, 2022 July 1, 2022 July 15, 2022 $ 0.43750 March 17, 2022 April 1, 2022 April 15, 2022 $ 0.43750 $ 1.31250 2021 December 16, 2021 December 31, 2021 January 18, 2022 $ 0.15069 $ 0.15069 |
Equity Incentive Plan
Equity Incentive Plan | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Equity Incentive Plan | Equity Incentive Plans On June 2, 2022, the Company’s stockholders approved the adoption of the Granite Point 2022 Omnibus Incentive Plan, or the 2022 Plan. The 2022 Plan permits the granting of stock options, stock appreciation rights, restricted stock, restricted stock units (both non-performance-based, or RSUs, and performance-based, or PSUs), dividend equivalent rights, other stock-based awards and other cash-based awards to employees, certain consultants of the Company and members of the board of directors. As of September 30, 2022, the Company had 7,250,000 shares of common stock available for future issuance under the 2022 Plan. With the adoption of the 2022 Plan, no new equity awards may be granted under the Company’s 2017 Equity Incentive Plan, or the 2017 Plan, but previously-granted restricted stock, RSUs and PSUs remain outstanding under the 2017 Plan. As of September 30, 2022, the Company had 1,977,927 shares of common stock available for future issuance under the 2017 Plan. The Company accounts for equity-based awards under ASC 718 - Compensation - Stock Compensation, which requires the Company to expense the cost of services received in exchange for equity-based awards based on the grant-date fair value of the awards. This expense is recognized ratably over the requisite service period following the date of grant. The fair value of awards of the Company’s restricted stock and RSUs is typically equivalent to the closing stock price on the grant date. The unrecognized compensation cost relating to such awards is recognized as an expense over the awards’ remaining vesting periods. As of September 30, 2022, there was $0.2 million of total unrecognized compensation cost for awards of restricted stock that will be recognized over the grants’ remaining weighted average vesting period of 1.3 years. For the three and nine months ended September 30, 2022, the Company recognized $0.1 million and $0.5 million of compensation expense associated with these awards, respectively, compared to $0.5 million and $1.8 million for the three and nine months ended September 30, 2021, respectively, within compensation and benefits expense on the condensed consolidated statements of income. As of September 30, 2022, there was $7.3 million of total unrecognized compensation cost for awards of RSUs that will be recognized over the grants’ remaining weighted average vesting period of 2.2 years. For the three and nine months ended September 30, 2022, the Company recognized $1.5 million and $4.3 million of compensation expense associated with these awards, respectively, compared to $1.2 million and $3.1 million for the three and nine months ended September 30, 2021, respectively, within compensation and benefits expense on the condensed consolidated statements of income. Awards of PSUs have a three-year cliff vesting with the number of performance-based stock units vesting at the end of the three-year period based upon the Company’s absolute and relative “core” return on average equity, or Core ROAE, performance, as set in the applicable award agreements. More specifically, between 0% and 200% of the target number of units may vest at the end of the performance period based (i) 50% against the predetermined internal Company performance goal for Core ROAE and (ii) 50% against the Company’s performance ranking for Core ROAE among a group of commercial mortgage REIT peer companies. The commercial mortgage REIT peer group includes publicly traded commercial mortgage REITs, which the Company believes derive the majority of their revenues from commercial real estate balance sheet lending activities and meet certain market capitalization criteria. As of September 30, 2022, there was $4.6 million of total unrecognized compensation cost for awards of PSUs that will be recognized over the grants’ remaining weighted average vesting period of 2.1 years. For the three and nine months ended September 30, 2022, the Company recognized $0.7 million and $1.5 million of compensation expense associated with these awards, respectively, compared to $0.6 million for the nine months ended September 30, 2021, within compensation and benefits expenses on the condensed consolidated statements of income. No compensation expense was recognized for PSU awards during the three months ended September 30, 2021. The following table summarizes the grants, vesting and forfeitures of restricted stock, RSUs and PSUs for the three and nine months ended September 30, 2022: Restricted Stock RSUs PSUs Weighted Average Grant Date Fair Market Value Outstanding at December 31, 2021 264,662 933,283 347,896 $ 12.48 Granted — 463,292 312,538 $ 11.84 Vested (103,038) (173,181) — $ 13.16 Forfeited (69,039) — — $ 18.87 Outstanding at March 31, 2022 92,585 1,223,394 660,434 $ 11.92 Granted — 59,898 — $ 11.06 Vested — (44,853) — $ 14.77 Forfeited — — — $ — Outstanding at June 30, 2022 92,585 1,238,439 660,434 $ 11.83 Granted — — — $ — Vested — — — $ — Forfeited — — — $ — Outstanding at September 30, 2022 92,585 1,238,439 660,434 $ 11.83 Below is a summary of restricted stock, RSU and PSU vesting dates as of September 30, 2022: Vesting Year Restricted Stock RSUs PSUs Total Awards 2022 — — — — 2023 92,585 387,508 347,896 827,989 2024 — 327,625 312,538 640,163 2025 — 523,306 — 523,306 Total 92,585 1,238,439 660,434 1,991,458 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company has elected to be taxed as a REIT under the Code for U.S. federal income tax purposes. As long as the Company qualifies as a REIT, the Company generally will not be subject to U.S. federal income taxes on that portion of its income that it distributes to its stockholders if it annually distributes at least 90% of its REIT taxable income, without regard to the deduction for dividends paid and excluding net capital gains, and does not engage in prohibited transactions. As of September 30, 2022, the Company distributed 100% of its REIT taxable income for the taxable years ended December 31, 2021, and 2020, in part with dividends paid in the subsequent year, and has complied with all requirements to continue to qualify as a REIT. The majority of states also recognize the Company’s REIT status. The Company’s TRS files a separate federal tax return and is fully taxed as a standalone U.S. C-corporation. It is assumed that the Company will retain its REIT status and will incur no REIT level taxation as it intends to comply with the REIT regulations and annual distribution requirements. Based on the Company’s evaluation, it has been concluded that there are no significant uncertain tax positions requiring recognition in the Company’s condensed consolidated financial statements of a contingent tax liability for uncertain tax positions. Additionally, there were no amounts accrued for penalties or interest as of, or during, the periods presented in these condensed consolidated financial statements. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table presents a reconciliation of the earnings and shares used in calculating basic and diluted earnings per share for the three and nine months ended September 30, 2022, and 2021: Three Months Ended Nine Months Ended September 30, September 30, (in thousands, except share data) 2022 2021 2022 2021 Numerator: Net (loss) income attributable to common stockholders - basic $ (29,130) $ 18,605 $ (45,475) $ 60,815 Interest expense attributable to convertible senior notes — — — 13,618 Net (loss) income attributable to common stockholders - diluted $ (29,130) $ 18,605 $ (45,475) $ 74,433 Denominator: Weighted average common shares outstanding 52,258,404 54,188,884 53,122,374 54,537,196 Weighted average restricted stock shares 92,585 264,662 112,124 327,260 Basic weighted average shares outstanding 52,350,989 54,453,546 53,234,498 54,864,456 Effect of dilutive shares issued in an assumed conversion of the convertible senior notes — — — 14,065,946 Effect of dilutive shares issued in an assumed conversion of RSUs as additional shares — 435,430 — 245,890 Effect of dilutive shares issued in an assumed exercise of warrants issued in conjunction with the senior secured term loan facilities — 1,846,302 — 1,726,453 Diluted weighted average shares outstanding 52,350,989 56,735,278 53,234,498 70,902,745 (Loss) earnings per share Basic $ (0.56) $ 0.34 $ (0.85) $ 1.11 Diluted $ (0.56) $ 0.33 $ (0.85) $ 1.05 For the three and nine months ended September 30, 2022, and three months ended September 30, 2021, excluded from the calculation of diluted earnings per share is the effect of adding back $4.6 million, $13.7 million and $4.6 million, respectively, of interest expense and 14,065,946 of weighted average common share equivalents related to the assumed conversion of the Company’s convertible senior notes, as their inclusion would be antidilutive. The computation of diluted earnings per share is also based on the incremental shares that would be outstanding assuming the settlement of RSUs. The number of incremental shares is calculated by applying the treasury stock method. For the three and nine months ended September 30, 2021, an additional 435,430 and 245,890 weighted-average unvested RSUs, respectively, were included in the dilutive earnings per share denominator. For the three and nine months ended September 30, 2022, excluded from the calculation of diluted earnings per share is 667,286 and 390,584 weighted-average unvested RSUs, respectively, as their inclusion would be antidilutive. The computation of diluted earnings per share is also based on the incremental shares that would be outstanding assuming the settlement of PSUs. The number of incremental shares is calculated by applying the treasury stock method. For the three and nine months ended September 30, 2022, and September 30, 2021, no additional weighted-average unvested PSUs were included in the dilutive earnings per share denominator, as their inclusion would be antidilutive. In conjunction with entering into the senior secured term loan credit agreement and the warrants described in Note 7 - Senior Secured Term Loan Facilities and Warrants to Purchase Shares of Common Stock , the Company elected the accreted redemption value method whereby the discount created based on the fair value of the warrants relative to the fair value of the senior secured term loan facilities and the related issuance costs will be accreted over five years using the effective interest method. Such adjustments are included in amortization of deferred debt issuance costs on the Company’s condensed consolidated statements of cash flows. For the three and nine months ended September 30, 2021, these adjustments totaled $0.3 million and $0.8 million, respectively. Additionally, the computation of diluted earnings per share is based on the incremental shares that would be outstanding assuming the exercise of warrants issued in conjunction with entering into the senior secured term loan credit agreement, to the extent such warrants remained outstanding as of September 30, 2021 (after giving effect to the settlement of a portion of such warrants on such date). For the three and nine months ended September 30, 2021, the additional 1.8 million and 1.7 million shares attributable to the warrants, respectively, were included in the computation of diluted earnings per share. The Company did not have any warrants outstanding as of September 30, 2022. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Events subsequent to September 30, 2022, were evaluated through the date these condensed consolidated financial statements were issued and no other additional events were identified requiring further disclosure in these condensed consolidated financial statements other than described below. Subsequent to September 30, 2022, the Company resolved a senior loan that had an outstanding unpaid principal balance of $114.1 million and had been previously placed on nonaccrual status. See Note 3 - Loans Held-for-Investment, Net of Allowance for Credit Losses, for further detail. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Consolidation and Basis of Presentation | Consolidation and Basis of Presentation The interim unaudited condensed consolidated financial statements of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission, or SEC. Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles, or GAAP, have been condensed or omitted according to such SEC rules and regulations. However, management believes that the disclosures included in these interim condensed consolidated financial statements are adequate to make the information presented not misleading. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. In the opinion of management, all normal and recurring adjustments necessary to present fairly the financial condition of the Company at September 30, 2022, and results of operations for all periods presented, have been made. The results of operations for the three and nine months ended September 30, 2022, should not be construed as indicative of the results to be expected for future periods or the full year. The unaudited condensed consolidated financial statements of the Company include the accounts of all subsidiaries; inter-company accounts and transactions have been eliminated. Certain prior period amounts have been reclassified to conform to the current period presentation. All entities in which the Company holds investments that are considered VIEs for financial reporting purposes were reviewed for consolidation under the applicable consolidation guidance. Whenever the Company has both the power to direct the activities of an entity that most significantly impact the entity’s performance, and the obligation to absorb losses or the right to receive benefits of the entity that could be significant, the Company consolidates the entity. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make a number of significant estimates. These include estimates of amount and timing of allowances for credit losses, fair value of certain assets and liabilities, and other estimates that affect the reported amounts of certain assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of certain revenues and expenses during the reported period. It is likely that changes in these estimates (e.g., valuation changes to the underlying collateral of loans due to changes in market interest and capitalization rates, leasing, credit worthiness of major tenants, occupancy rates, availability of financing, exit plan, loan sponsorship, actions of other lenders, overall economic and capital markets conditions, the broader commercial real estate market, local geographic sub-markets or other factors) will occur in the near term. |
Recently Issued and/or Adopted Accounting Standards | Recently Issued and/or Adopted Accounting Standards Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures In March 2022, the Financial Accounting Standards Board, or FASB, issued ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, or ASU 2022-02. The intention of ASU 2022-02 is to simplify the guidance surrounding loan modifications and restructurings and to eliminate the accounting guidance related to troubled debt restructurings, or TDR. The new guidance deviates from current TDR guidance as disclosures will now be based on whether a modification or restructuring with a borrower experiencing financial difficulty results in principal forgiveness, an interest rate reduction, a significant payment delay or term extension as opposed to simply a concession. The new guidance requires disclosure by class of financing receivables, of the types of modifications, the financial effects of those modifications and the performance of those modified receivables in the last twelve months. As it relates to ASC 326-20 the Company is now allowed to use any acceptable method to determine credit losses as a result of modification or restructuring with a borrower experiencing financial difficulty. ASU 2022-02 also requires disclosure of gross write-offs recorded in the current period, on a year-to-date basis, by year of origination in the vintage disclosures. ASU 2022-02 is effective for fiscal years beginning after December 15, 2022. Entities are able to early adopt these amendments and have the ability to early adopt the TDR enhancements separately from the vintage disclosures. The Company has not yet adopted this ASU and will continue to evaluate the effects of adoption. Facilitation of the Effects of Reference Rate Reform on Financial Reporting In March 2020, FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, or ASU No. 2020-04, which provides optional expedients and exceptions for applying GAAP to debt instruments, derivatives, and other contracts that reference the London Interbank Offered Rate, or LIBOR, or other reference rates expected to be discontinued as a result of reference rate reform. This guidance is optional and may be elected through December 31, 2022, using a prospective application on all eligible contract modifications. The Company has loan agreements and debt agreements that incorporate LIBOR as a referenced interest rate. It is difficult to predict what effect, if any, the phase-out of LIBOR and the use of alternative benchmarks may have on the Company’s business or on the overall financial markets. The Company has not adopted any of the optional expedients or exceptions through September 30, 2022, but will continue to evaluate the possible adoption of any such expedients or exceptions. |
Loans Held-for-Investment, Ne_2
Loans Held-for-Investment, Net of Allowance for Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Schedule of Loans Held-for-Investment | The following tables summarize the Company’s loans held-for-investment by asset type, property type and geographic location as of September 30, 2022, and December 31, 2021: September 30, (dollars in thousands) Senior Loans (1) Mezzanine Loans B-Notes Total Unpaid principal balance $ 3,601,341 $ 10 $ 13,826 $ 3,615,177 Unamortized (discount) premium (51) — — (51) Unamortized net deferred origination fees (12,110) — — (12,110) Allowance for credit losses (81,921) (10) (680) (82,611) Carrying value $ 3,507,259 $ — $ 13,146 $ 3,520,405 Unfunded commitments $ 312,649 $ — $ — $ 312,649 Number of loans 95 1 1 97 Weighted average coupon 5.5 % 13.0 % 8.0 % 5.5 % Weighted average years to maturity (2) 1.0 3.1 4.3 1.0 December 31, (dollars in thousands) Senior Loans (1) Mezzanine Loans B-Notes Total Unpaid principal balance $ 3,781,771 $ 1,048 $ 14,006 $ 3,796,825 Unamortized (discount) premium (70) — — (70) Unamortized net deferred origination fees (14,550) — — (14,550) Allowance for credit losses (38,719) (1,048) (1,130) (40,897) Carrying value $ 3,728,432 $ — $ 12,876 $ 3,741,308 Unfunded commitments $ 403,584 $ — $ — $ 403,584 Number of loans 103 1 1 105 Weighted average coupon 4.5 % 13.0 % 8.0 % 4.5 % Weighted average years to maturity (2) 1.1 3.9 5.1 1.1 ____________________ (1) Loans primarily secured by a first priority lien on commercial real property and related personal property and also includes, when applicable, any companion subordinate loans. (2) Based on contractual maturity date. Certain loans are subject to contractual extension options with such conditions stipulated in the applicable loan documents. Actual maturities may differ from contractual maturities stated herein as certain borrowers may have the right to prepay with or without paying a prepayment fee. The Company may also extend contractual maturities in connection with certain loan modifications. |
Schedule of Loans Held-for-Investment by Property Type | (dollars in thousands) September 30, December 31, Property Type Carrying Value % of Loan Portfolio Carrying Value % of Loan Portfolio Office $ 1,501,205 42.6 % $ 1,703,951 45.5 % Multifamily 1,046,073 29.7 % 1,061,434 28.4 % Hotel 355,472 10.1 % 464,816 12.4 % Retail 347,636 9.9 % 341,834 9.1 % Industrial 183,483 5.2 % 118,564 3.2 % Other 86,536 2.5 % 50,709 1.4 % Total $ 3,520,405 100.0 % $ 3,741,308 100.0 % |
Schedule of Loans Held-for-Investment by Geographic Location | (dollars in thousands) September 30, December 31, Geographic Location Carrying Value % of Loan Portfolio Carrying Value % of Loan Portfolio Northeast $ 895,918 25.4 % $ 917,029 24.5 % Southwest 745,792 21.2 % 836,955 22.4 % West 558,836 15.9 % 658,429 17.6 % Midwest 599,567 17.0 % 637,784 17.0 % Southeast 720,292 20.5 % 691,111 18.5 % Total $ 3,520,405 100.0 % $ 3,741,308 100.0 % |
Rollforward of Loans Held-for-Investment | The following table summarizes activity related to loans held-for-investment, net of allowance for credit losses, for the three and nine months ended September 30, 2022, and 2021: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2022 2021 2022 2021 Balance at beginning of period $ 3,830,014 $ 3,577,644 $ 3,741,308 $ 3,847,803 Originations, additional fundings, upsizing of loans and capitalized deferred interest 72,435 325,597 457,545 565,212 Repayments (346,737) (290,497) (585,227) (815,054) Loan sales — — (43,714) — Net discount accretion (premium amortization) 3 (2) 19 9 Increase in net deferred origination fees (1,454) (3,566) (6,012) (5,905) Amortization of net deferred origination fees 1,475 2,584 8,307 10,700 (Provision for) benefit from credit losses (35,331) 2,451 (51,821) 11,446 Balance at end of period $ 3,520,405 $ 3,614,211 $ 3,520,405 $ 3,614,211 |
Rollforward of Allowance for Credit Losses | The following table presents the changes for the three and nine months ended September 30, 2022, and 2021 in the allowance for credit losses on loans held-for-investment: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2022 2021 2022 2021 Balance at beginning of period $ 47,280 $ 57,671 $ 40,897 $ 66,666 Provision for (benefit from) credit losses 35,331 (2,451) 52,333 (11,446) Write-off — (9,740) (10,107) (9,740) Recoveries of amounts previously written off — (512) — Balance at end of period $ 82,611 $ 45,480 $ 82,611 $ 45,480 |
Financing Receivable, Nonaccrual | The following table presents the carrying value of loans held-for-investment on nonaccrual status for the three and nine months ended September 30, 2022, and 2021: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2022 2021 2022 2021 Nonaccrual loan carrying value at beginning of period $ 188,839 $ 225,115 $ 145,370 $ 17,835 Addition of nonaccrual loan carrying value $ 103,076 $ — $ 192,399 $ 207,280 Removal of nonaccrual loan carrying value $ (12,656) $ (79,765) $ (58,510) $ (79,765) Nonaccrual loan carrying value at end of period $ 279,259 $ 145,350 $ 279,259 $ 145,350 |
Schedule of Loans Held-for-Investment by Internal Risk Rating | The following table presents the number of loans, unpaid principal balance and carrying value by risk rating for loans held-for-investment as of September 30, 2022, and December 31, 2021: (dollars in thousands) September 30, December 31, Risk Rating Number of Loans Unpaid Principal Balance Carrying Value Number of Loans Unpaid Principal Balance Carrying Value 1 10 $ 370,589 $ 367,230 9 $ 245,939 $ 245,042 2 52 1,780,250 1,755,988 58 2,002,008 1,983,615 3 26 885,074 875,400 25 747,631 739,343 4 5 249,202 242,528 11 633,153 627,938 5 4 330,062 279,259 2 168,094 145,370 Total 97 $ 3,615,177 $ 3,520,405 105 $ 3,796,825 $ 3,741,308 The following table presents the carrying value of loans held-for-investment as of September 30, 2022, and December 31, 2021, by risk rating and year of origination: September 30, 2022 (in thousands) Origination Year Risk Rating 2022 2021 2020 2019 2018 2017 Prior Total 1 $ — $ — $ 45,048 $ 232,305 $ 56,873 $ — $ 33,004 $ 367,230 2 $ 342,296 $ 508,612 $ 93,095 $ 537,701 $ 192,793 $ 41,088 $ 40,403 $ 1,755,988 3 $ — $ 94,994 $ 18,529 $ 234,250 $ 272,555 $ 163,385 $ 91,687 $ 875,400 4 $ — $ — $ — $ — $ 52,900 $ 71,215 $ 118,413 $ 242,528 5 $ — $ — $ — $ 157,112 $ 97,176 $ 24,971 $ — $ 279,259 Total $ 342,296 $ 603,606 $ 156,672 $ 1,161,368 $ 672,297 $ 300,659 $ 283,507 $ 3,520,405 December 31, 2021 (in thousands) Origination Year Risk Rating 2021 2020 2019 2018 2017 2016 Prior Total 1 — — 136,138 75,592 — 33,312 — $ 245,042 2 623,992 90,381 828,432 347,173 12,877 31,872 48,888 $ 1,983,615 3 45,062 59,186 147,214 242,662 153,732 68,012 23,475 $ 739,343 4 — — 260,672 74,808 173,081 — 119,377 $ 627,938 5 — — — 99,515 45,855 — — $ 145,370 Total $ 669,054 $ 149,567 $ 1,372,456 $ 839,750 $ 385,545 $ 133,196 $ 191,740 $ 3,741,308 |
Variable Interest Entities an_2
Variable Interest Entities and Securitized Debt Obligations (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The following table presents a summary of the assets and liabilities of all VIEs consolidated on the Company’s condensed consolidated balance sheets as of September 30, 2022, and December 31, 2021: (in thousands) September 30, December 31, Loans held-for-investment $ 1,604,660 $ 2,257,768 Allowance for credit losses (14,189) (16,904) Loans held-for-investment, net 1,590,471 2,240,864 Restricted cash 44,470 10,377 Other assets 9,587 14,803 Total Assets $ 1,644,528 $ 2,266,044 Securitized debt obligations $ 1,224,035 $ 1,677,619 Other liabilities 1,723 1,816 Total Liabilities $ 1,225,758 $ 1,679,435 |
Schedule of Securitized Debt Obligations | The following table details the Company’s CRE CLO securitized debt obligations: (dollars in thousands) September 30, December 31, Securitized Debt Obligations Principal Balance Carrying Value Wtd. Avg. Yield/Cost (1) Principal Balance Carrying Value Wtd. Avg. Yield/Cost (1) GPMT 2021-FL4 CRE CLO Collateral assets (2) $ 621,409 $ 611,688 L+3.7% $ 621,409 $ 613,504 L+3.7% Financing provided 502,564 498,963 L+1.7% 502,564 498,117 L+1.7% GPMT 2021-FL3 CRE CLO Collateral assets (3) 695,669 688,120 L+3.9% 768,850 763,607 L+3.9% Financing provided 557,830 557,934 L+1.7% 630,818 629,049 L+1.7% GPMT 2019-FL2 CRE CLO Collateral assets (4) 338,151 335,133 L+4.2% 617,119 605,831 L+ 4.1% Financing provided 166,953 167,138 L+2.5% 446,849 445,920 L+ 1.8% GPMT 2018-FL1 CRE CLO Collateral assets (5) — — 270,722 268,322 L+ 5.0% Financing provided — — 104,532 104,532 L+ 2.8% Total Collateral assets $ 1,655,229 $ 1,634,941 L+3.9% $ 2,278,100 $ 2,251,264 L+ 4.0% Financing provided $ 1,227,347 $ 1,224,035 L+1.8% $ 1,684,763 $ 1,677,618 L+ 1.8% ____________________ (1) Calculations of all in yield on collateral assets at origination are based on a number of assumptions (some or all of which may not occur) and are expressed as monthly equivalent yields that include net origination fees and exit fees and exclude future fundings and any potential or completed loan amendments or modifications. Calculations of cost of funds is the weighted average coupon of the CRE CLO, exclusive of any CRE CLO issuance costs. (2) Includes $36.0 million of restricted cash as of September 30, 2022. No restricted cash is included as of December 31, 2021. Yield on collateral assets is exclusive of restricted cash. (3) Includes $5.5 million and $10.4 million of restricted cash as of September 30, 2022, and December 31, 2021, respectively. Yield on collateral assets is exclusive of restricted cash. (4) Includes $3.0 million of restricted cash as of September 30, 2022. No restricted cash is included as of December 31, 2021. Yield on collateral assets is exclusive of restricted cash. |
Secured Financing Agreements (T
Secured Financing Agreements (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Collateralized Borrowings | The following tables summarize details of the Company’s borrowings outstanding on its secured financing agreements as of September 30, 2022, and December 31, 2021: September 30, 2022 (dollars in thousands) Maturity Date (1) Amount Outstanding Unused Capacity Total Capacity Carrying Value of Collateral Weighted Average Borrowing Rate Repurchase facilities: Morgan Stanley Bank June 28, 2023 $ 533,010 $ 66,990 $ 600,000 $ 741,846 5.4 % Goldman Sachs Bank USA (2) July 13, 2023 127,725 122,275 250,000 195,828 5.5 % JPMorgan Chase Bank June 28, 2024 135,170 214,830 350,000 212,930 5.2 % Citibank May 25, 2025 266,010 233,990 500,000 392,875 4.8 % Wells Fargo Bank June 28, 2023 98,150 — 98,150 152,026 4.9 % Centennial Bank August 29, 2024 35,900 64,100 100,000 93,912 7.8 % Total/Weighted Average $ 1,195,965 $ 702,185 $ 1,898,150 $ 1,789,417 Asset-specific financings: CIBC Bank USA Term Matched $ 44,913 $ 105,087 $ 150,000 $ 57,488 4.5 % December 31, 2021 (dollars in thousands) Maturity Date (1) Amount Outstanding Unused Capacity Total Capacity Carrying Value of Collateral Weighted Average Borrowing Rate Repurchase facilities: Morgan Stanley Bank June 28, 2022 $ 230,982 $ 269,018 $ 500,000 $ 382,017 2.2 % Goldman Sachs Bank USA July 13, 2023 81,227 168,773 250,000 111,811 2.6 % JPMorgan Chase Bank June 28, 2022 104,215 345,785 450,000 188,838 2.3 % Citibank January 9, 2023 202,944 297,056 500,000 285,767 1.8 % Wells Fargo Bank June 28, 2022 57,917 42,083 100,000 86,409 2.3 % Total/Weighted Average $ 677,285 $ 1,122,715 $ 1,800,000 $ 1,054,842 Asset-specific financings: CIBC Bank USA Term Matched $ 43,622 $ 106,378 $ 150,000 $ 56,129 1.8 % Term financing facility: Goldman Sachs Bank USA (3) February 14, 2025 $ 127,145 $ — $ 127,145 $ 329,256 3.7 % ____________________ (1) The facilities are set to mature on the stated maturity date, unless extended pursuant to their terms. (2) As of September 30, 2022, the Company retained options to increase the maximum facility capacity amount up to $350 million, subject to customary terms and conditions. |
Schedule of Collateralized Borrowings by Maturity | At September 30, 2022, and December 31, 2021, the Company’s borrowings outstanding on its secured financing facilities had contractual maturities as follows: September 30, 2022 (in thousands) Repurchase Facilities Asset-Specific Financings (1) Term Financing Facility Total Amount Outstanding 2022 $ — $ 44,913 $ — $ 44,913 2023 758,885 — — 758,885 2024 171,070 — — 171,070 2025 266,010 — — 266,010 2026 — — — — Thereafter — — — — Total $ 1,195,965 $ 44,913 $ — $ 1,240,878 December 31, 2021 (in thousands) Repurchase Facilities Asset-Specific Financings (1) Term Financing Facility (2) Total Amount Outstanding 2022 $ 393,114 43,622 $ — $ 436,736 2023 284,171 — — 284,171 2024 — — — — 2025 — — 127,145 127,145 2026 — — — — Thereafter — — — — Total $ 677,285 $ 43,622 $ 127,145 $ 848,052 __________________ (1) Maturity date is term matched to the corresponding loans. (2) Amount outstanding includes unamortized debt issuance costs. |
Schedule of Repurchase Agreement Counterparties with Whom Repurchase Agreements Exceed 10 Percent of Stockholders' Equity | The following table summarizes certain characteristics of the Company’s repurchase facilities and counterparty concentration at September 30, 2022, and December 31, 2021: September 30, 2022 December 31, 2021 (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 $ 533,010 $ 213,681 21 % 0.74 $ 230,982 $ 155,446 15 % 0.49 JPMorgan Chase Bank 135,170 79,613 8 % 1.75 104,215 87,103 9 % 0.49 Goldman Sachs Bank USA 127,725 195,916 20 % 0.78 81,227 31,852 3 % 1.53 Citibank 266,010 128,067 13 % 2.65 202,944 85,631 8 % 1.02 Wells Fargo Bank 98,150 152,715 15 % 0.74 57,917 29,320 3 % 0.49 Centennial Bank 35,900 94,403 9 % 1.92 — — Total $ 1,195,965 $ 864,395 $ 677,285 $ 389,352 ____________________ (1) Represents the excess of the carrying amount or market value of the loans held-for-investment pledged as collateral for repurchase facilities, including accrued interest plus any cash on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest. |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Interest Expense, Debt | The following table details the interest expense related to the convertible senior notes: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2022 2021 2022 2021 Cash coupon $ 4,119 $ 4,119 $ 12,357 $ 12,357 Amortization of issuance costs 466 437 1,346 1,261 Total interest expense $ 4,585 $ 4,556 $ 13,703 $ 13,618 |
Schedule of Long-term Debt Instruments | The following table details the carrying value of the Convertible Senior Notes: December 2022 Convertible Senior Notes (in thousands) September 30, December 31, Principal outstanding $ 143,750 $ 143,750 Less: Unamortized issuance costs (165) (875) Net carrying value $ 143,585 $ 142,875 October 2023 Convertible Senior Notes (in thousands) September 30, December 31, Principal outstanding $ 131,600 $ 131,600 Less: Unamortized issuance costs (896) (1,533) Net carrying value $ 130,704 $ 130,067 The table below summarizes the net carrying amount of the senior secured term loan facilities: (in thousands) September 30, December 31, Principal outstanding $ — $ 150,000 Less: Unamortized debt discount and issuance costs — (10,120) Net carrying value $ — $ 139,880 |
Senior Secured Term Loan Faci_2
Senior Secured Term Loan Facilities and Warrants to Purchase Shares of Common Stock (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The following table details the carrying value of the Convertible Senior Notes: December 2022 Convertible Senior Notes (in thousands) September 30, December 31, Principal outstanding $ 143,750 $ 143,750 Less: Unamortized issuance costs (165) (875) Net carrying value $ 143,585 $ 142,875 October 2023 Convertible Senior Notes (in thousands) September 30, December 31, Principal outstanding $ 131,600 $ 131,600 Less: Unamortized issuance costs (896) (1,533) Net carrying value $ 130,704 $ 130,067 The table below summarizes the net carrying amount of the senior secured term loan facilities: (in thousands) September 30, December 31, Principal outstanding $ — $ 150,000 Less: Unamortized debt discount and issuance costs — (10,120) Net carrying value $ — $ 139,880 |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported on the Company’s condensed consolidated balance sheets as of September 30, 2022, and December 31, 2021, that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows: (in thousands) September 30, December 31, Cash and cash equivalents $ 168,414 $ 191,931 Restricted cash 45,242 12,362 Total cash, cash equivalents and restricted cash $ 213,656 $ 204,293 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | The following table presents the carrying values and estimated fair values of assets and liabilities that are required to be recorded or disclosed at fair value at September 30, 2022, and December 31, 2021: September 30, 2022 December 31, 2021 (in thousands) Carrying Value Fair Value Carrying Value Fair Value Assets Loans held-for-investment, net of allowance for credit losses $ 3,520,405 $ 3,508,561 $ 3,741,308 $ 3,771,216 Cash and cash equivalents $ 168,414 $ 168,414 $ 191,931 $ 191,931 Restricted cash $ 45,242 $ 45,242 $ 12,362 $ 12,362 Liabilities Repurchase facilities $ 1,195,965 $ 1,195,965 $ 677,285 $ 677,285 Securitized debt obligations $ 1,224,035 $ 1,183,706 $ 1,677,619 $ 1,681,514 Asset-specific financings $ 44,913 $ 44,913 $ 43,622 $ 43,622 Term financing facility $ — $ — $ 127,145 $ 127,145 Convertible senior notes $ 274,289 $ 270,826 $ 272,942 $ 278,554 Senior secured term loan facilities $ — $ — $ 139,880 $ 139,880 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Schedule of Dividends Declared | The following table presents cash dividends declared by the Company’s board of directors on its common stock from March 31, 2020, through September 30, 2022: Declaration Date Record Date Payment Date Cash Dividend Per Share 2022 September 20, 2022 October 3, 2022 October 17, 2022 $ 0.25 June 16, 2022 July 1, 2022 July 15, 2022 $ 0.25 March 17, 2022 April 1, 2022 April 15, 2022 $ 0.25 $ 0.75 2021 December 16, 2021 December 31, 2021 January 18, 2022 $ 0.25 September 15, 2021 October 1, 2021 October 19, 2021 $ 0.25 June 15, 2021 July 1, 2021 July 19, 2021 $ 0.25 March 18, 2021 April 1, 2021 April 19, 2021 $ 0.25 $ 1.00 The following table presents cash dividends declared by the Company’s board of directors on its Series A Preferred Stock from June 30, 2020, through September 30, 2022: Declaration Date Record Date Payment Date Cash Dividend Per Share 2022 September 20, 2022 October 3, 2022 October 17, 2022 $ 0.43750 June 16, 2022 July 1, 2022 July 15, 2022 $ 0.43750 March 17, 2022 April 1, 2022 April 15, 2022 $ 0.43750 $ 1.31250 2021 December 16, 2021 December 31, 2021 January 18, 2022 $ 0.15069 $ 0.15069 |
Equity Incentive Plan (Tables)
Equity Incentive Plan (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The following table summarizes the grants, vesting and forfeitures of restricted stock, RSUs and PSUs for the three and nine months ended September 30, 2022: Restricted Stock RSUs PSUs Weighted Average Grant Date Fair Market Value Outstanding at December 31, 2021 264,662 933,283 347,896 $ 12.48 Granted — 463,292 312,538 $ 11.84 Vested (103,038) (173,181) — $ 13.16 Forfeited (69,039) — — $ 18.87 Outstanding at March 31, 2022 92,585 1,223,394 660,434 $ 11.92 Granted — 59,898 — $ 11.06 Vested — (44,853) — $ 14.77 Forfeited — — — $ — Outstanding at June 30, 2022 92,585 1,238,439 660,434 $ 11.83 Granted — — — $ — Vested — — — $ — Forfeited — — — $ — Outstanding at September 30, 2022 92,585 1,238,439 660,434 $ 11.83 Below is a summary of restricted stock, RSU and PSU vesting dates as of September 30, 2022: Vesting Year Restricted Stock RSUs PSUs Total Awards 2022 — — — — 2023 92,585 387,508 347,896 827,989 2024 — 327,625 312,538 640,163 2025 — 523,306 — 523,306 Total 92,585 1,238,439 660,434 1,991,458 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents a reconciliation of the earnings and shares used in calculating basic and diluted earnings per share for the three and nine months ended September 30, 2022, and 2021: Three Months Ended Nine Months Ended September 30, September 30, (in thousands, except share data) 2022 2021 2022 2021 Numerator: Net (loss) income attributable to common stockholders - basic $ (29,130) $ 18,605 $ (45,475) $ 60,815 Interest expense attributable to convertible senior notes — — — 13,618 Net (loss) income attributable to common stockholders - diluted $ (29,130) $ 18,605 $ (45,475) $ 74,433 Denominator: Weighted average common shares outstanding 52,258,404 54,188,884 53,122,374 54,537,196 Weighted average restricted stock shares 92,585 264,662 112,124 327,260 Basic weighted average shares outstanding 52,350,989 54,453,546 53,234,498 54,864,456 Effect of dilutive shares issued in an assumed conversion of the convertible senior notes — — — 14,065,946 Effect of dilutive shares issued in an assumed conversion of RSUs as additional shares — 435,430 — 245,890 Effect of dilutive shares issued in an assumed exercise of warrants issued in conjunction with the senior secured term loan facilities — 1,846,302 — 1,726,453 Diluted weighted average shares outstanding 52,350,989 56,735,278 53,234,498 70,902,745 (Loss) earnings per share Basic $ (0.56) $ 0.34 $ (0.85) $ 1.11 Diluted $ (0.56) $ 0.33 $ (0.85) $ 1.05 |
Organization and Operations (De
Organization and Operations (Details) | 9 Months Ended |
Sep. 30, 2022 segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | 1 |
Loans Held-for-Investment, Ne_3
Loans Held-for-Investment, Net of Allowance for Credit Losses - Loans Held-for-Investment (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2022 USD ($) loan | Dec. 31, 2021 USD ($) loan | Jun. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Unpaid principal balance | $ 3,615,177 | $ 3,796,825 | ||||
Unamortized (discount) premium | (51) | (70) | ||||
Unamortized net deferred origination fees | (12,110) | (14,550) | ||||
Allowance for credit losses | (82,611) | (40,897) | $ (47,280) | $ (45,480) | $ (57,671) | $ (66,666) |
Loans held-for-investment, net | 3,520,405 | 3,741,308 | $ 3,830,014 | $ 3,614,211 | $ 3,577,644 | $ 3,847,803 |
Unfunded commitments | $ 312,649 | $ 403,584 | ||||
Number of loans | loan | 97 | 105 | ||||
Weighted average coupon (as a percent) | 5.50% | 4.50% | ||||
Weighted average years to maturity (in years) | 1 year | 1 year 1 month 6 days | ||||
Senior Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Unpaid principal balance | $ 3,601,341 | $ 3,781,771 | ||||
Unamortized (discount) premium | (51) | (70) | ||||
Unamortized net deferred origination fees | (12,110) | (14,550) | ||||
Allowance for credit losses | (81,921) | (38,719) | ||||
Loans held-for-investment, net | 3,507,259 | 3,728,432 | ||||
Unfunded commitments | $ 312,649 | $ 403,584 | ||||
Number of loans | loan | 95 | 103 | ||||
Weighted average coupon (as a percent) | 5.50% | 4.50% | ||||
Weighted average years to maturity (in years) | 1 year | 1 year 1 month 6 days | ||||
Mezzanine Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Unpaid principal balance | $ 10 | $ 1,048 | ||||
Unamortized (discount) premium | 0 | 0 | ||||
Unamortized net deferred origination fees | 0 | 0 | ||||
Allowance for credit losses | (10) | (1,048) | ||||
Loans held-for-investment, net | 0 | 0 | ||||
Unfunded commitments | $ 0 | $ 0 | ||||
Number of loans | loan | 1 | 1 | ||||
Weighted average coupon (as a percent) | 13% | 13% | ||||
Weighted average years to maturity (in years) | 3 years 1 month 6 days | 3 years 10 months 24 days | ||||
B-Notes | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Unpaid principal balance | $ 13,826 | $ 14,006 | ||||
Unamortized (discount) premium | 0 | 0 | ||||
Unamortized net deferred origination fees | 0 | 0 | ||||
Allowance for credit losses | (680) | (1,130) | ||||
Loans held-for-investment, net | 13,146 | 12,876 | ||||
Unfunded commitments | $ 0 | $ 0 | ||||
Number of loans | loan | 1 | 1 | ||||
Weighted average coupon (as a percent) | 8% | 8% | ||||
Weighted average years to maturity (in years) | 4 years 3 months 18 days | 5 years 1 month 6 days |
Loans Held-for-Investment, Ne_4
Loans Held-for-Investment, Net of Allowance for Credit Losses - Loans by Property Type (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Carrying Value | $ 3,520,405 | $ 3,830,014 | $ 3,741,308 | $ 3,614,211 | $ 3,577,644 | $ 3,847,803 |
Percentage of loan portfolio (as a percent) | 100% | 100% | ||||
Office | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Carrying Value | $ 1,501,205 | $ 1,703,951 | ||||
Percentage of loan portfolio (as a percent) | 42.60% | 45.50% | ||||
Multifamily | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Carrying Value | $ 1,046,073 | $ 1,061,434 | ||||
Percentage of loan portfolio (as a percent) | 29.70% | 28.40% | ||||
Hotel | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Carrying Value | $ 355,472 | $ 464,816 | ||||
Percentage of loan portfolio (as a percent) | 10.10% | 12.40% | ||||
Retail | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Carrying Value | $ 347,636 | $ 341,834 | ||||
Percentage of loan portfolio (as a percent) | 9.90% | 9.10% | ||||
Industrial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Carrying Value | $ 183,483 | $ 118,564 | ||||
Percentage of loan portfolio (as a percent) | 5.20% | 3.20% | ||||
Other | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Carrying Value | $ 86,536 | $ 50,709 | ||||
Percentage of loan portfolio (as a percent) | 2.50% | 1.40% |
Loans Held-for-Investment, Ne_5
Loans Held-for-Investment, Net of Allowance for Credit Losses - by Geographic Location (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Carrying Value | $ 3,520,405 | $ 3,830,014 | $ 3,741,308 | $ 3,614,211 | $ 3,577,644 | $ 3,847,803 |
Percentage of loan portfolio (as a percent) | 100% | 100% | ||||
Northeast | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Carrying Value | $ 895,918 | $ 917,029 | ||||
Percentage of loan portfolio (as a percent) | 25.40% | 24.50% | ||||
Southwest | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Carrying Value | $ 745,792 | $ 836,955 | ||||
Percentage of loan portfolio (as a percent) | 21.20% | 22.40% | ||||
West | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Carrying Value | $ 558,836 | $ 658,429 | ||||
Percentage of loan portfolio (as a percent) | 15.90% | 17.60% | ||||
Midwest | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Carrying Value | $ 599,567 | $ 637,784 | ||||
Percentage of loan portfolio (as a percent) | 17% | 17% | ||||
Southeast | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Carrying Value | $ 720,292 | $ 691,111 | ||||
Percentage of loan portfolio (as a percent) | 20.50% | 18.50% |
Loans Held-for-Investment, Ne_6
Loans Held-for-Investment, Net of Allowance for Credit Losses - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2022 USD ($) loan | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) loan | Sep. 30, 2021 USD ($) | Nov. 08, 2022 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Loans held-for-investment, net of allowance for credit losses | $ 3,520,405 | $ 3,614,211 | $ 3,520,405 | $ 3,614,211 | $ 3,830,014 | $ 3,741,308 | $ 3,577,644 | $ 3,847,803 | |
Allowance for credit losses | (82,611) | (45,480) | (82,611) | (45,480) | $ (47,280) | (40,897) | $ (57,671) | $ (66,666) | |
(Provision for) benefit from credit losses | $ (35,331) | 2,451 | $ (51,821) | 11,446 | |||||
Number of Loans | loan | 4 | 4 | |||||||
Loans held-for-investment | $ 3,603,016 | $ 3,603,016 | $ 3,782,205 | ||||||
Provision for (benefit from) credit losses | 35,331 | (2,451) | 52,333 | (11,446) | |||||
Financing receivable, excluding accrued interest, allowance for credit loss, writeoff | $ 0 | $ 9,740 | $ 10,107 | $ 9,740 | |||||
Threshold period delinquent for placement of financing receivable on nonaccrual status | 90 days | ||||||||
Debt, portfolio, weighted average risk rating | 260% | 260% | 250% | 260% | |||||
Risk Rating 5 | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Loans held-for-investment, net of allowance for credit losses | $ 279,259 | $ 279,259 | $ 145,370 | ||||||
Minneapolis, MN | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Financing receivable, excluding accrued interest, nonaccrual | 54,000 | 54,000 | |||||||
Other liabilities | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Provision for (benefit from) credit losses | 2,900 | ||||||||
Fair Value, Nonrecurring | Phoenix, AZ | Risk Rating 5 | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Financing receivable, excluding accrued interest, nonaccrual | 123,000 | 123,000 | |||||||
Fair Value, Nonrecurring | Minneapolis, MN | Risk Rating 5 | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Financing receivable, excluding accrued interest, nonaccrual | 123,000 | 123,000 | |||||||
Loan One | Fair Value, Nonrecurring | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Loans held-for-investment, net of allowance for credit losses | 279,300 | 279,300 | |||||||
Allowance for credit losses | (50,400) | (50,400) | |||||||
Loans held-for-investment | 330,100 | 330,100 | |||||||
Loan One | Fair Value, Nonrecurring | Risk Rating 5 | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Loans held-for-investment | $ 114,100 | $ 114,100 | |||||||
First Mortgage Loan | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Number of Loans | loan | 2 | 2 | |||||||
Non-accrual loan | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Provision for (benefit from) credit losses | $ 100 | ||||||||
Senior Floating Rate Loan | Subsequent Event | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Loans held-for-investment | $ 77,300 | ||||||||
Financing receivable, excluding accrued interest, nonaccrual | $ 114,100 | ||||||||
Collateral pledged | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Loans held-for-investment, net of allowance for credit losses | 3,400,000 | $ 3,400,000 | $ 3,700,000 | ||||||
Allowance for credit losses | $ (30,000) | $ (30,000) | |||||||
Number of Loans | loan | 4 | 4 |
Loans Held-for-Investment, Ne_7
Loans Held-for-Investment, Net of Allowance for Credit Losses - Roll Forward of Loans Held-for-Investment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Loans Held-for-Investment [Roll Forward] | ||||
Balance at beginning of period | $ 3,830,014 | $ 3,577,644 | $ 3,741,308 | $ 3,847,803 |
Originations, additional fundings, upsizing of loans and capitalized deferred interest | 72,435 | 325,597 | 457,545 | 565,212 |
Repayments | (346,737) | (290,497) | (585,227) | (815,054) |
Loan sales | 0 | 0 | (43,714) | 0 |
Net discount accretion (premium amortization) | 3 | (2) | 19 | 9 |
Increase in net deferred origination fees | (1,454) | (3,566) | (6,012) | (5,905) |
Amortization of net deferred origination fees | 1,475 | 2,584 | 8,307 | 10,700 |
(Provision for) benefit from credit losses | (35,331) | 2,451 | (51,821) | 11,446 |
Balance at end of period | $ 3,520,405 | $ 3,614,211 | $ 3,520,405 | $ 3,614,211 |
Loans Held-for-Investment, Ne_8
Loans Held-for-Investment, Net of Allowance for Credit Losses - Roll Forward of Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | $ 47,280 | $ 57,671 | $ 40,897 | $ 66,666 |
Provision for (benefit from) credit losses | 35,331 | (2,451) | 52,333 | (11,446) |
Write-off | 0 | (9,740) | (10,107) | (9,740) |
Recoveries of amounts previously written off | 0 | (512) | 0 | |
Balance at end of period | $ 82,611 | $ 45,480 | $ 82,611 | $ 45,480 |
Loans Held-for-Investment, Ne_9
Loans Held-for-Investment, Net of Allowance for Credit Losses - Nonaccrual Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Financing Receivables, Held for Investment, Nonaccrual [Roll Forward] | ||||
Nonaccrual loan carrying value at beginning of period | $ 188,839 | $ 225,115 | $ 145,370 | $ 17,835 |
Addition of nonaccrual loan carrying value | 103,076 | 0 | 192,399 | 207,280 |
Removal of nonaccrual loan carrying value | (12,656) | (79,765) | (58,510) | (79,765) |
Nonaccrual loan carrying value at end of period | $ 279,259 | $ 145,350 | $ 279,259 | $ 145,350 |
Loans Held-for-Investment, N_10
Loans Held-for-Investment, Net of Allowance for Credit Losses - Internal Risk Rating (Details) $ in Thousands | Sep. 30, 2022 USD ($) loan | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) loan | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2020 USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | loan | 97 | 105 | ||||
Unpaid principal balance | $ 3,615,177 | $ 3,796,825 | ||||
Current year | 342,296 | 669,054 | ||||
Year one | 603,606 | 149,567 | ||||
Year two | 156,672 | 1,372,456 | ||||
Year three | 1,161,368 | 839,750 | ||||
Year four | 672,297 | 385,545 | ||||
Year five | 300,659 | 133,196 | ||||
Prior | 283,507 | 191,740 | ||||
Loans held-for-investment, net | $ 3,520,405 | $ 3,830,014 | $ 3,741,308 | $ 3,614,211 | $ 3,577,644 | $ 3,847,803 |
Risk Rating 1 | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | loan | 10 | 9 | ||||
Unpaid principal balance | $ 370,589 | $ 245,939 | ||||
Current year | 0 | 0 | ||||
Year one | 0 | 0 | ||||
Year two | 45,048 | 136,138 | ||||
Year three | 232,305 | 75,592 | ||||
Year four | 56,873 | 0 | ||||
Year five | 0 | 33,312 | ||||
Prior | 33,004 | 0 | ||||
Loans held-for-investment, net | $ 367,230 | $ 245,042 | ||||
Risk Rating 2 | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | loan | 52 | 58 | ||||
Unpaid principal balance | $ 1,780,250 | $ 2,002,008 | ||||
Current year | 342,296 | 623,992 | ||||
Year one | 508,612 | 90,381 | ||||
Year two | 93,095 | 828,432 | ||||
Year three | 537,701 | 347,173 | ||||
Year four | 192,793 | 12,877 | ||||
Year five | 41,088 | 31,872 | ||||
Prior | 40,403 | 48,888 | ||||
Loans held-for-investment, net | $ 1,755,988 | $ 1,983,615 | ||||
Risk Rating 3 | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | loan | 26 | 25 | ||||
Unpaid principal balance | $ 885,074 | $ 747,631 | ||||
Current year | 0 | 45,062 | ||||
Year one | 94,994 | 59,186 | ||||
Year two | 18,529 | 147,214 | ||||
Year three | 234,250 | 242,662 | ||||
Year four | 272,555 | 153,732 | ||||
Year five | 163,385 | 68,012 | ||||
Prior | 91,687 | 23,475 | ||||
Loans held-for-investment, net | $ 875,400 | $ 739,343 | ||||
Risk Rating 4 | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | loan | 5 | 11 | ||||
Unpaid principal balance | $ 249,202 | $ 633,153 | ||||
Current year | 0 | 0 | ||||
Year one | 0 | 0 | ||||
Year two | 0 | 260,672 | ||||
Year three | 0 | 74,808 | ||||
Year four | 52,900 | 173,081 | ||||
Year five | 71,215 | 0 | ||||
Prior | 118,413 | 119,377 | ||||
Loans held-for-investment, net | $ 242,528 | $ 627,938 | ||||
Risk Rating 5 | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | loan | 4 | 2 | ||||
Unpaid principal balance | $ 330,062 | $ 168,094 | ||||
Current year | 0 | 0 | ||||
Year one | 0 | 0 | ||||
Year two | 0 | 0 | ||||
Year three | 157,112 | 99,515 | ||||
Year four | 97,176 | 45,855 | ||||
Year five | 24,971 | 0 | ||||
Prior | 0 | 0 | ||||
Loans held-for-investment, net | $ 279,259 | $ 145,370 |
Variable Interest Entities an_3
Variable Interest Entities and Securitized Debt Obligations (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | |
Variable Interest Entity [Line Items] | |||
Total Assets | [1] | $ 3,782,658 | $ 3,988,518 |
Total Liabilities | [1] | 2,778,017 | 2,974,335 |
Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Total Assets | 1,644,528 | 2,266,044 | |
Total Liabilities | 1,225,758 | 1,679,435 | |
Variable Interest Entity, Primary Beneficiary | Loans held-for-investment | |||
Variable Interest Entity [Line Items] | |||
Total Assets | 1,604,660 | 2,257,768 | |
Variable Interest Entity, Primary Beneficiary | Allowance for credit losses | |||
Variable Interest Entity [Line Items] | |||
Total Assets | 14,189 | 16,904 | |
Variable Interest Entity, Primary Beneficiary | Loans held-for-investment, net | |||
Variable Interest Entity [Line Items] | |||
Total Assets | 1,590,471 | 2,240,864 | |
Variable Interest Entity, Primary Beneficiary | Restricted cash | |||
Variable Interest Entity [Line Items] | |||
Total Assets | 44,470 | 10,377 | |
Variable Interest Entity, Primary Beneficiary | Other assets | |||
Variable Interest Entity [Line Items] | |||
Total Assets | 9,587 | 14,803 | |
Variable Interest Entity, Primary Beneficiary | Securitized debt obligations | |||
Variable Interest Entity [Line Items] | |||
Total Liabilities | 1,224,035 | 1,677,619 | |
Variable Interest Entity, Primary Beneficiary | Other liabilities | |||
Variable Interest Entity [Line Items] | |||
Total Liabilities | $ 1,723 | $ 1,816 | |
[1] The condensed consolidated balance sheets include assets of consolidated variable interest entities, or VIEs, that can only be used to settle obligations of these VIEs, and liabilities of the consolidated VIEs for which creditors do not have recourse to Granite Point Mortgage Trust Inc. At September 30, 2022, and December 31, 2021, assets of the VIEs totaled $1,644,528 and $2,266,044, respectively, and liabilities of the VIEs totaled $1,225,758 and $1,679,435, respectively. See Note 4 - Variable Interest Entities and Securitized Debt Obligations for additional information. |
Variable Interest Entities an_4
Variable Interest Entities and Securitized Debt Obligations - Securitized Debt Obligations (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Carrying Value | $ 1,224,035 | $ 1,677,619 |
Collateral assets | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Principal Balance | 1,655,229 | 2,278,100 |
Carrying Value | $ 1,634,941 | $ 2,251,264 |
Weighted average interest rate of securitized debt obligations outstanding | 3.90% | 4% |
Collateral assets | GPMT 2021-FL4 CRE CLO | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Principal Balance | $ 621,409 | $ 621,409 |
Carrying Value | $ 611,688 | $ 613,504 |
Weighted average interest rate of securitized debt obligations outstanding | 3.70% | 3.70% |
Restricted cash | $ 36,000 | $ 0 |
Collateral assets | GPMT 2021-FL3 CRE CLO | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Principal Balance | 695,669 | 768,850 |
Carrying Value | $ 688,120 | $ 763,607 |
Weighted average interest rate of securitized debt obligations outstanding | 3.90% | 3.90% |
Restricted cash | $ 5,500 | $ 10,400 |
Collateral assets | GPMT 2019-FL2 CRE CLO | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Principal Balance | 338,151 | 617,119 |
Carrying Value | $ 335,133 | $ 605,831 |
Weighted average interest rate of securitized debt obligations outstanding | 4.20% | 4.10% |
Restricted cash | $ 3,000 | |
Collateral assets | GPMT 2018-FL1 CRE CLO | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Principal Balance | $ 0 | 270,722 |
Carrying Value | 0 | $ 268,322 |
Weighted average interest rate of securitized debt obligations outstanding | 5% | |
Restricted cash | $ 0 | |
Financing provided | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Principal Balance | 1,227,347 | 1,684,763 |
Carrying Value | $ 1,224,035 | $ 1,677,618 |
Weighted average interest rate of securitized debt obligations outstanding | 1.80% | 1.80% |
Financing provided | GPMT 2021-FL4 CRE CLO | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Principal Balance | $ 502,564 | $ 502,564 |
Carrying Value | $ 498,963 | $ 498,117 |
Weighted average interest rate of securitized debt obligations outstanding | 1.70% | 1.70% |
Financing provided | GPMT 2021-FL3 CRE CLO | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Principal Balance | $ 557,830 | $ 630,818 |
Carrying Value | $ 557,934 | $ 629,049 |
Weighted average interest rate of securitized debt obligations outstanding | 1.70% | 1.70% |
Financing provided | GPMT 2019-FL2 CRE CLO | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Principal Balance | $ 166,953 | $ 446,849 |
Carrying Value | $ 167,138 | $ 445,920 |
Weighted average interest rate of securitized debt obligations outstanding | 2.50% | 1.80% |
Financing provided | GPMT 2018-FL1 CRE CLO | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Principal Balance | $ 0 | $ 104,532 |
Carrying Value | $ 0 | $ 104,532 |
Weighted average interest rate of securitized debt obligations outstanding | 2.80% |
Variable Interest Entities an_5
Variable Interest Entities and Securitized Debt Obligations - Narrative (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 USD ($) loan | Sep. 30, 2021 USD ($) | |
Variable Interest Entity [Line Items] | ||
Principal payments on securitized debt obligations | $ | $ 457,416 | $ 254,647 |
Number of Loans | loan | 4 |
Secured Financing Agreements -
Secured Financing Agreements - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Line of Credit Facility [Line Items] | |||||
Loss on extinguishment of debt | $ 0 | $ 0 | $ (18,823) | $ 0 | |
Minimum unrestricted cash amount | $ 30,000 | $ 30,000 | |||
Debt covenant, recourse (as a percent) | 0.050 | 0.050 | |||
Cash and cash equivalents | $ 168,414 | $ 168,414 | $ 191,931 | ||
Debt instrument, amount | $ 32,600 | $ 32,600 | |||
Debt covenant, tangible net worth (as a percent) | 0.750 | 0.750 | |||
Debt covenant, net cash proceeds of additional equity issuances, amount | $ 931,700 | $ 931,700 | |||
Debt covenant, tangible net worth, amount | $ 1,100,000 | $ 1,100,000 | |||
Debt covenant, target asset leverage ratio (as a percent) | 0.672 | 0.672 | |||
Debt covenant, total leverage ratio (as a percent) | 0.718 | 0.718 | |||
Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Debt covenant, target asset leverage ratio (as a percent) | 0.775 | 0.775 | |||
Debt covenant, total leverage ratio (as a percent) | 0.800 | 0.800 | |||
Debt covenant, minimum interest coverage ratio | 1.7 | 1.7 | |||
Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Debt covenant, minimum interest coverage ratio | 1.5 | 1.5 |
Secured Financing Agreements _2
Secured Financing Agreements - Summary of Outstanding Borrowings (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Line of Credit Facility [Line Items] | |||||
Repurchase facilities | $ 1,195,965 | $ 1,195,965 | $ 677,285 | ||
Asset-specific financings | 44,913 | 44,913 | 43,622 | ||
Term financing facility | 0 | 0 | 127,145 | ||
Unused Capacity | 702,185 | 702,185 | 1,122,715 | ||
Total Capacity | 1,898,150 | 1,898,150 | 1,800,000 | ||
Carrying Value of Collateral | 1,789,417 | 1,789,417 | 1,054,842 | ||
Loss on extinguishment of debt | 0 | $ 0 | (18,823) | $ 0 | |
Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Loss on extinguishment of debt | (1,700) | ||||
Goldman Sachs Bank USA | |||||
Line of Credit Facility [Line Items] | |||||
Term financing facility | 0 | 0 | 127,145 | ||
Unused Capacity | 0 | ||||
Total Capacity | 127,145 | ||||
Goldman Sachs Bank USA | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Carrying Value of Collateral | $ 329,256 | ||||
Weighted Average Borrowing Rate | 3.70% | ||||
CIBC Bank USA | |||||
Line of Credit Facility [Line Items] | |||||
Asset-specific financings | 44,913 | 44,913 | $ 43,622 | ||
Unused Capacity | 105,087 | 105,087 | 106,378 | ||
Total Capacity | 150,000 | 150,000 | 150,000 | ||
CIBC Bank USA | Secured Debt | |||||
Line of Credit Facility [Line Items] | |||||
Carrying Value of Collateral | $ 57,488 | $ 57,488 | $ 56,129 | ||
Weighted Average Borrowing Rate | 4.50% | 4.50% | 1.80% | ||
Loans held-for-investment | Morgan Stanley Bank | |||||
Line of Credit Facility [Line Items] | |||||
Repurchase facilities | $ 533,010 | $ 533,010 | $ 230,982 | ||
Unused Capacity | 66,990 | 66,990 | 269,018 | ||
Total Capacity | 600,000 | 600,000 | 500,000 | ||
Carrying Value of Collateral | $ 741,846 | $ 741,846 | $ 382,017 | ||
Weighted Average Borrowing Rate | 5.40% | 5.40% | 2.20% | ||
Loans held-for-investment | Goldman Sachs Bank USA | |||||
Line of Credit Facility [Line Items] | |||||
Repurchase facilities | $ 127,725 | $ 127,725 | $ 81,227 | ||
Unused Capacity | 122,275 | 122,275 | 168,773 | ||
Total Capacity | 250,000 | 250,000 | 250,000 | ||
Carrying Value of Collateral | $ 195,828 | $ 195,828 | $ 111,811 | ||
Weighted Average Borrowing Rate | 5.50% | 5.50% | 2.60% | ||
Maximum capacity under collateralized borrowings upon exercise of option to increase | $ 350,000 | $ 350,000 | |||
Loans held-for-investment | JPMorgan Chase Bank | |||||
Line of Credit Facility [Line Items] | |||||
Repurchase facilities | 135,170 | 135,170 | $ 104,215 | ||
Unused Capacity | 214,830 | 214,830 | 345,785 | ||
Total Capacity | 350,000 | 350,000 | 450,000 | ||
Carrying Value of Collateral | $ 212,930 | $ 212,930 | $ 188,838 | ||
Weighted Average Borrowing Rate | 5.20% | 5.20% | 2.30% | ||
Loans held-for-investment | Citibank | |||||
Line of Credit Facility [Line Items] | |||||
Repurchase facilities | $ 266,010 | $ 266,010 | $ 202,944 | ||
Unused Capacity | 233,990 | 233,990 | 297,056 | ||
Total Capacity | 500,000 | 500,000 | 500,000 | ||
Carrying Value of Collateral | $ 392,875 | $ 392,875 | $ 285,767 | ||
Weighted Average Borrowing Rate | 4.80% | 4.80% | 1.80% | ||
Loans held-for-investment | Wells Fargo Bank | |||||
Line of Credit Facility [Line Items] | |||||
Repurchase facilities | $ 98,150 | $ 98,150 | $ 57,917 | ||
Unused Capacity | 0 | 0 | 42,083 | ||
Total Capacity | 98,150 | 98,150 | 100,000 | ||
Carrying Value of Collateral | $ 152,026 | $ 152,026 | $ 86,409 | ||
Weighted Average Borrowing Rate | 4.90% | 4.90% | 2.30% | ||
Loans held-for-investment | Centennial Bank | |||||
Line of Credit Facility [Line Items] | |||||
Repurchase facilities | $ 35,900 | $ 35,900 | |||
Unused Capacity | 64,100 | 64,100 | |||
Total Capacity | 100,000 | 100,000 | |||
Carrying Value of Collateral | $ 93,912 | $ 93,912 | |||
Weighted Average Borrowing Rate | 7.80% | 7.80% |
Secured Financing Agreements _3
Secured Financing Agreements - Borrowings by Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase facilities | $ 1,195,965 | $ 677,285 |
Asset-specific financings | 44,913 | 43,622 |
Term Financing Facility | 0 | 127,145 |
Total Amount Outstanding | 1,240,878 | 848,052 |
Maturity Within One Year | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase facilities | 0 | 393,114 |
Asset-specific financings | 43,622 | |
Term Financing Facility | 0 | 0 |
Total Amount Outstanding | 44,913 | 436,736 |
Maturity One To Two Years | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase facilities | 758,885 | 284,171 |
Asset-specific financings | 0 | 0 |
Term Financing Facility | 0 | 0 |
Total Amount Outstanding | 758,885 | 284,171 |
Maturity Two To Three | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase facilities | 171,070 | 0 |
Asset-specific financings | 0 | |
Term Financing Facility | 0 | 0 |
Total Amount Outstanding | 171,070 | 0 |
Maturity Three To Four Years | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase facilities | 266,010 | 0 |
Asset-specific financings | 0 | 0 |
Term Financing Facility | 0 | 127,145 |
Total Amount Outstanding | 266,010 | 127,145 |
Maturity Four To Five Years | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase facilities | 0 | 0 |
Asset-specific financings | 0 | 0 |
Term Financing Facility | 0 | 0 |
Total Amount Outstanding | 0 | 0 |
Thereafter | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase facilities | 0 | 0 |
Asset-specific financings | 0 | |
Term Financing Facility | 0 | 0 |
Total Amount Outstanding | $ 0 | $ 0 |
Secured Financing Agreements _4
Secured Financing Agreements - Schedule of Repurchase Agreement Counterparties with Whom Repurchase Agreements Exceed 10 Percent of Stockholders' Equity (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Repurchase Agreement Counterparty [Line Items] | ||
Amount Outstanding | $ 1,195,965 | $ 677,285 |
Net Counterparty Exposure | 864,395 | 389,352 |
Morgan Stanley Bank | ||
Repurchase Agreement Counterparty [Line Items] | ||
Amount Outstanding | 533,010 | 230,982 |
Net Counterparty Exposure | $ 213,681 | $ 155,446 |
Percent of Equity | 21% | 15% |
Weighted Average Years to Maturity | 8 months 26 days | 5 months 26 days |
JPMorgan Chase Bank | ||
Repurchase Agreement Counterparty [Line Items] | ||
Amount Outstanding | $ 135,170 | $ 104,215 |
Net Counterparty Exposure | $ 79,613 | $ 87,103 |
Percent of Equity | 8% | 9% |
Weighted Average Years to Maturity | 1 year 9 months | 5 months 26 days |
Goldman Sachs Bank USA | ||
Repurchase Agreement Counterparty [Line Items] | ||
Amount Outstanding | $ 127,725 | $ 81,227 |
Net Counterparty Exposure | $ 195,916 | $ 31,852 |
Percent of Equity | 20% | 3% |
Weighted Average Years to Maturity | 9 months 10 days | 1 year 6 months 10 days |
Citibank | ||
Repurchase Agreement Counterparty [Line Items] | ||
Amount Outstanding | $ 266,010 | $ 202,944 |
Net Counterparty Exposure | $ 128,067 | $ 85,631 |
Percent of Equity | 13% | 8% |
Weighted Average Years to Maturity | 2 years 7 months 24 days | 1 year 7 days |
Wells Fargo Bank | ||
Repurchase Agreement Counterparty [Line Items] | ||
Amount Outstanding | $ 98,150 | $ 57,917 |
Net Counterparty Exposure | $ 152,715 | $ 29,320 |
Percent of Equity | 15% | 3% |
Weighted Average Years to Maturity | 8 months 26 days | 5 months 26 days |
Centennial Bank | ||
Repurchase Agreement Counterparty [Line Items] | ||
Amount Outstanding | $ 35,900 | $ 0 |
Net Counterparty Exposure | $ 94,403 | $ 0 |
Percent of Equity | 9% | |
Weighted Average Years to Maturity | 1 year 11 months 1 day |
Convertible Senior Notes - Narr
Convertible Senior Notes - Narrative (Details) $ in Thousands | 1 Months Ended | 9 Months Ended | |||
Oct. 31, 2018 USD ($) | Jan. 31, 2018 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2017 USD ($) | |
Debt Instrument, Redemption [Line Items] | |||||
Convertible senior notes | $ 274,289 | $ 272,942 | |||
Convertible Debt | |||||
Debt Instrument, Redemption [Line Items] | |||||
Convertible senior notes | $ 274,300 | $ 272,900 | |||
Convertible Debt, 2017 Issuance | |||||
Debt Instrument, Redemption [Line Items] | |||||
Proceeds from convertible senior notes | $ 139,500 | ||||
Convertible senior notes conversion ratio | 0.0519943 | ||||
Convertible Debt, 2017 Issuance | Convertible Debt | |||||
Debt Instrument, Redemption [Line Items] | |||||
Convertible senior notes interest rate per annum (as a percent) | 5.625% | ||||
Convertible Debt, 2017 Issuance | Convertible Debt | Private Placement | |||||
Debt Instrument, Redemption [Line Items] | |||||
Convertible senior notes aggregate principal amount | $ 125,000 | ||||
Convertible Debt, 2017 Issuance | Convertible Debt | Over-Allotment Option | |||||
Debt Instrument, Redemption [Line Items] | |||||
Convertible senior notes aggregate principal amount | $ 18,800 | ||||
Convertible Debt, 2018 Issuance | |||||
Debt Instrument, Redemption [Line Items] | |||||
Proceeds from convertible senior notes | $ 127,700 | ||||
Convertible senior notes conversion ratio | 0.0500894 | ||||
Convertible Debt, 2018 Issuance | Convertible Debt | |||||
Debt Instrument, Redemption [Line Items] | |||||
Convertible senior notes interest rate per annum (as a percent) | 6.375% | ||||
Convertible Debt, 2018 Issuance | Convertible Debt | Private Placement | |||||
Debt Instrument, Redemption [Line Items] | |||||
Convertible senior notes aggregate principal amount | $ 131,600 |
Convertible Senior Notes - Debt
Convertible Senior Notes - Debt Instrument Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Debt Disclosure [Abstract] | ||||
Cash coupon | $ 4,119 | $ 4,119 | $ 12,357 | $ 12,357 |
Amortization of issuance costs | 466 | 437 | 1,346 | 1,261 |
Total interest expense | $ 4,585 | $ 4,556 | $ 13,703 | $ 13,618 |
Convertible Senior Notes - Carr
Convertible Senior Notes - Carrying Value of the Convertible Senior Notes (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
December 2022 Convertible Senior Notes | ||
Debt Instrument, Redemption [Line Items] | ||
Principal outstanding | $ 143,750 | $ 143,750 |
Less: Unamortized issuance costs | (165) | (875) |
Net carrying value | 143,585 | 142,875 |
October 2023 Convertible Senior Notes | ||
Debt Instrument, Redemption [Line Items] | ||
Principal outstanding | 131,600 | 131,600 |
Less: Unamortized issuance costs | (896) | (1,533) |
Net carrying value | $ 130,704 | $ 130,067 |
Senior Secured Term Loan Faci_3
Senior Secured Term Loan Facilities and Warrants to Purchase Shares of Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||||
Oct. 04, 2021 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Sep. 25, 2021 | Feb. 04, 2021 | Sep. 28, 2020 | Sep. 25, 2020 | |
Debt Instrument [Line Items] | |||||||||||
Total Capacity | $ 1,898,150 | $ 1,898,150 | $ 1,800,000 | ||||||||
Loss on extinguishment of debt | $ 0 | $ 0 | $ (18,823) | $ 0 | |||||||
Number of securities called by warrants or rights | 1,516,455 | ||||||||||
Common stock par value per share (in usd per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||
Term Loan | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total Capacity | $ 349,300 | $ 300,000 | |||||||||
Term financing facility | $ 0 | $ 0 | $ 139,880 | $ 225,000 | |||||||
Loss on extinguishment of debt | $ (17,100) | ||||||||||
Number of securities called by warrants or rights | 3,490,000 | 1,060,000 | 6,066,000 | ||||||||
Common stock par value per share (in usd per share) | $ 0.01 | ||||||||||
Unused borrowing capacity, amount | $ 75,000 | ||||||||||
Exercise price of warrants or rights (in usd per share) | $ 6.47 | $ 6.47 | |||||||||
Proceeds from issuance of warrants to purchase common stock | $ 24,700 | $ 7,500 |
Senior Secured Term Loan Faci_4
Senior Secured Term Loan Facilities and Warrants to Purchase Shares of Common Stock - Net Carrying Amount of Term Loan Facilities (Details) - Term Loan - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 28, 2020 |
Debt Instrument [Line Items] | |||
Principal outstanding | $ 0 | $ 150,000 | |
Less: Unamortized debt discount and issuance costs | 0 | (10,120) | |
Net carrying value | $ 0 | $ 139,880 | $ 225,000 |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Variable Interest Entity [Line Items] | ||
Cash collateral for repurchase agreements and securities activity | $ 0.7 | $ 2 |
Restricted cash | ||
Variable Interest Entity [Line Items] | ||
Cash collateral for repurchase agreements and securities activity | $ 44.5 | $ 10.4 |
Cash, Cash Equivalents and Re_4
Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 168,414 | $ 191,931 | ||
Restricted cash | 45,242 | 12,362 | ||
Total cash, cash equivalents and restricted cash | $ 213,656 | $ 204,293 | $ 175,518 | $ 329,193 |
Fair Value - Narrative (Details
Fair Value - Narrative (Details) $ in Thousands | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2020 USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Loans held-for-investment | $ 3,603,016 | $ 3,782,205 | ||||
Loans held-for-investment, net of allowance for credit losses | $ 3,520,405 | $ 3,830,014 | 3,741,308 | $ 3,614,211 | $ 3,577,644 | $ 3,847,803 |
Minimum | Exit Capitalization Rate | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Financing receivable, measurement input | 0.0675 | |||||
Minimum | Measurement Input, Discount Rate | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Financing receivable, measurement input | 0.0800 | |||||
Minimum | Measurement Input, Return on Cost Assumption | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Financing receivable, measurement input | 0.0550 | |||||
Maximum | Exit Capitalization Rate | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Financing receivable, measurement input | 0.0850 | |||||
Maximum | Measurement Input, Discount Rate | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Financing receivable, measurement input | 0.0975 | |||||
Maximum | Measurement Input, Return on Cost Assumption | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Financing receivable, measurement input | 0.0600 | |||||
Risk Rating 5 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Loans held-for-investment, net of allowance for credit losses | $ 279,259 | $ 145,370 | ||||
Loan One | Fair Value, Nonrecurring | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Loans held-for-investment | 330,100 | |||||
Loans held-for-investment, net of allowance for credit losses | 279,300 | |||||
Loan One | Fair Value, Nonrecurring | Risk Rating 5 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Loans held-for-investment | 114,100 | |||||
Loan Two | Fair Value, Nonrecurring | Risk Rating 5 | Fair Value, Inputs, Level 3 | Non-accrual loan | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Loans held-for-investment | 215,900 | |||||
Loan Two | Fair Value, Nonrecurring | Risk Rating 5 | Fair Value, Inputs, Level 3 | Senior Loans | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Loans held-for-investment, net of allowance for credit losses | 182,100 | |||||
Loan Three | Fair Value, Nonrecurring | Risk Rating 5 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Loans held-for-investment | 114,100 | |||||
Loans held-for-investment, net of allowance for credit losses | $ 97,200 |
Fair Value - by Balance Sheet G
Fair Value - by Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||||||
Loans held-for-investment, net of allowance for credit losses | $ 3,520,405 | $ 3,830,014 | $ 3,741,308 | $ 3,614,211 | $ 3,577,644 | $ 3,847,803 |
Loans held-for-investment, net of allowance for credit losses, at fair value | 3,508,561 | 3,771,216 | ||||
Cash and cash equivalents | 168,414 | 191,931 | ||||
Restricted cash | 45,242 | 12,362 | ||||
Liabilities | ||||||
Repurchase facilities | 1,195,965 | 677,285 | ||||
Securitized debt obligations | 1,224,035 | 1,677,619 | ||||
Securitized debt obligations, at fair value | 1,183,706 | 1,681,514 | ||||
Asset-specific financings | 44,913 | 43,622 | ||||
Term financing facility | 0 | 127,145 | ||||
Convertible senior notes | 274,289 | 272,942 | ||||
Convertible senior notes, at fair value | 270,826 | 278,554 | ||||
Senior secured term loan facilities | 0 | 139,880 | ||||
Senior secured term loan facilities, at fair value | $ 0 | $ 139,880 |
Commitments and Contingencies -
Commitments and Contingencies - Unfunded Commitments (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Other Commitments [Line Items] | ||
Unfunded commitments | $ 312,649 | $ 403,584 |
Unfunded loan commitment | ||
Other Commitments [Line Items] | ||
Liability for off balance sheet credit losses | $ 2,900 |
Preferred Stock (Details)
Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Nov. 30, 2021 | Feb. 08, 2022 | Jan. 31, 2021 | Jan. 14, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Apr. 15, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Class of Stock [Line Items] | ||||||||||||
Preferred stock dividend rate (as a percent) | 10% | |||||||||||
Preferred stock liquidation preference (in usd per share) | $ 1,000 | $ 1,000 | ||||||||||
Preferred stock, redemption price per share (in usd per share) | $ 1,000 | $ 1,000 | ||||||||||
Period after which the holder may redeem preferred stock | 6 years | |||||||||||
Preferred dividends declared | $ 25 | $ 75 | ||||||||||
Proceeds from issuance of preferred stock, net of offering costs | $ 87,521 | $ 0 | ||||||||||
Sale of stock, number of shares issued in transaction | 0 | 0 | 0 | 0 | ||||||||
Public Offering | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Sale of stock, underwriting discounts | $ 3,600 | |||||||||||
Issuance costs incurred in common stock offering | $ 800 | |||||||||||
Series A Preferred Stock | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Preferred stock dividend rate (as a percent) | 7% | 7% | 7% | |||||||||
Preferred stock liquidation preference (in usd per share) | $ 25 | $ 25 | $ 25 | |||||||||
Preferred stock, redemption price per share (in usd per share) | $ 25 | |||||||||||
Preferred shares issued | 8,229,500 | 8,229,500 | 4,596,500 | |||||||||
Preferred stock, shares issued, retained by issuer | 500 | |||||||||||
Preferred stock, shares subscribed but unissued | 125 | |||||||||||
Preferred dividends declared per share (in usd per share) | $ 0.15069 | $ 0.4375 | $ 0.4375 | $ 0.4375 | $ 0.4375 | |||||||
Series A Preferred Stock | Public Offering | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Sale of stock, consideration received on transaction | $ 110,500 | |||||||||||
Sale of stock, number of shares issued in transaction | 4,596,500 | |||||||||||
Series A Preferred Stock | Over-Allotment Option | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Sale of stock, consideration received on transaction | $ 87,500 | |||||||||||
Sale of stock, number of shares issued in transaction | 3,633,000 | |||||||||||
Sale of stock, underwriting discounts | $ 2,900 | |||||||||||
Issuance costs incurred in common stock offering | $ 400 | |||||||||||
Series A Preferred Stock | Sub-REIT | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Preferred shares issued | 625 | |||||||||||
Proceeds from issuance of preferred stock, net of offering costs | $ 100 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Dividends Declared (Details) - $ / shares | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||
Sep. 20, 2022 | Jun. 16, 2022 | Mar. 17, 2022 | Dec. 16, 2021 | Sep. 15, 2021 | Jun. 15, 2021 | Mar. 18, 2021 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Class of Stock [Line Items] | ||||||||||||||||
Dividends declared per common share (in usd per share) | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | ||||||||||
Common Stock | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Dividends declared per common share (in usd per share) | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.75 | $ 1 | |||||||
Preferred Stock | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Dividends declared per common share (in usd per share) | $ 0.43750 | $ 0.43750 | $ 0.43750 | $ 0.15069 | $ 1.31250 | $ 0.15069 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 16, 2021 | |
Class of Stock [Line Items] | |||||
Number of shares authorized to be repurchased under stock repurchase program | 4,000,000 | ||||
Stock repurchase program, remaining number of shares authorized to be repurchased | 1,159,254 | 1,159,254 | |||
Number of shares authorized to be sold under equity distribution agreement | 8,000,000 | 8,000,000 | |||
Number of common shares issued under equity distribution agreement and outstanding as of period-end | 3,242,364 | 3,242,364 | |||
Accumulated proceeds from issuance of common shares under equity distribution agreement | $ 61.2 | $ 61.2 | |||
Sale of stock, number of shares issued in transaction | 0 | 0 | 0 | 0 | |
Share Repurchase Program | |||||
Class of Stock [Line Items] | |||||
Treasury stock, shares, acquired | 0 | 1,000,721 | 1,539,134 | 1,301,612 | |
Treasury stock, value, acquired, cost method | $ 15.7 | $ 13.5 | $ 15.7 | $ 17.8 | |
Repurchased Shares From Employees | |||||
Class of Stock [Line Items] | |||||
Treasury stock, shares, acquired | 0 | 69,039 | 115,053 | ||
Treasury stock, value, acquired, cost method | $ 0.8 | $ 1.2 |
Equity Incentive Plan - Narrati
Equity Incentive Plan - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
2022 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of restricted common shares reserved for issuance under equity incentive plan | 7,250,000 | 7,250,000 | ||
2017 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of restricted common shares reserved for issuance under equity incentive plan | 1,977,927 | 1,977,927 | ||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment arrangement, nonvested award, excluding option, cost not yet recognized, amount | $ 200,000 | $ 200,000 | ||
Share-based payment arrangement, nonvested award, cost not yet recognized, period for recognition | 1 year 3 months 18 days | |||
Equity based compensation | 100,000 | $ 500,000 | $ 500,000 | $ 1,800,000 |
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment arrangement, nonvested award, excluding option, cost not yet recognized, amount | 7,300,000 | $ 7,300,000 | ||
Share-based payment arrangement, nonvested award, cost not yet recognized, period for recognition | 2 years 2 months 12 days | |||
Equity based compensation | 1,500,000 | 1,200,000 | $ 4,300,000 | 3,100,000 |
PSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment arrangement, nonvested award, excluding option, cost not yet recognized, amount | 4,600,000 | $ 4,600,000 | ||
Share-based payment arrangement, nonvested award, cost not yet recognized, period for recognition | 2 years 1 month 6 days | |||
Equity based compensation | $ 700,000 | $ 0 | $ 1,500,000 | $ 600,000 |
Award vesting period of restricted common shares granted during period under equity incentive plan | 3 years | |||
PSUs | Share-Based Payment Arrangement, Tranche One | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights, percentage | 50% | |||
PSUs | Share-Based Payment Arrangement, Tranche Two | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights, percentage | 50% | |||
PSUs | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights, percentage | 0% | |||
PSUs | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights, percentage | 200% |
Equity Incentive Plan - Schedul
Equity Incentive Plan - Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Ending balance (in shares) | 1,991,458 | 1,991,458 | ||
Weighted Average Grant Date Fair Market Value | ||||
Beginning balance (in usd per share) | $ 11.83 | $ 11.92 | $ 12.48 | $ 12.48 |
Granted (in usd per share) | 0 | 11.06 | 11.84 | |
Vested (in usd per share) | 0 | 14.77 | 13.16 | |
Forfeited (in usd per share) | 0 | 0 | 18.87 | |
Ending balance (in usd per share) | $ 11.83 | $ 11.83 | $ 11.92 | $ 11.83 |
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Beginning balance (in shares) | 92,585 | 92,585 | 264,662 | 264,662 |
Granted (in shares) | 0 | 0 | 0 | |
Vested (in shares) | 0 | 0 | (103,038) | |
Forfeited (in shares) | 0 | 0 | (69,039) | |
Ending balance (in shares) | 92,585 | 92,585 | 92,585 | 92,585 |
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Beginning balance (in shares) | 1,238,439 | 1,223,394 | 933,283 | 933,283 |
Granted (in shares) | 0 | 59,898 | 463,292 | |
Vested (in shares) | 0 | (44,853) | (173,181) | |
Forfeited (in shares) | 0 | 0 | 0 | |
Ending balance (in shares) | 1,238,439 | 1,238,439 | 1,223,394 | 1,238,439 |
PSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Beginning balance (in shares) | 660,434 | 660,434 | 347,896 | 347,896 |
Granted (in shares) | 0 | 0 | 312,538 | |
Vested (in shares) | 0 | 0 | 0 | |
Forfeited (in shares) | 0 | 0 | 0 | |
Ending balance (in shares) | 660,434 | 660,434 | 660,434 | 660,434 |
Equity Incentive Plan - Summary
Equity Incentive Plan - Summary of Restricted Stock and Restricted Stock Units Vesting Dates (Details) - shares | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total (in shares) | 1,991,458 | 1,991,458 | |||
2022 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period (in shares) | 0 | ||||
2023 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period (in shares) | 827,989 | ||||
2024 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period (in shares) | 640,163 | ||||
2025 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period (in shares) | 523,306 | ||||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period (in shares) | 0 | 0 | 103,038 | ||
Total (in shares) | 92,585 | 92,585 | 92,585 | 92,585 | 264,662 |
Restricted Stock | 2022 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period (in shares) | 0 | ||||
Restricted Stock | 2023 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period (in shares) | 92,585 | ||||
Restricted Stock | 2024 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period (in shares) | 0 | ||||
Restricted Stock | 2025 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period (in shares) | 0 | ||||
RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period (in shares) | 0 | 44,853 | 173,181 | ||
Total (in shares) | 1,238,439 | 1,238,439 | 1,223,394 | 1,238,439 | 933,283 |
RSUs | 2022 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period (in shares) | 0 | ||||
RSUs | 2023 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period (in shares) | 387,508 | ||||
RSUs | 2024 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period (in shares) | 327,625 | ||||
RSUs | 2025 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period (in shares) | 523,306 | ||||
PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period (in shares) | 0 | 0 | 0 | ||
Total (in shares) | 660,434 | 660,434 | 660,434 | 660,434 | 347,896 |
PSUs | 2022 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period (in shares) | 0 | ||||
PSUs | 2023 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period (in shares) | 347,896 | ||||
PSUs | 2024 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period (in shares) | 312,538 | ||||
PSUs | 2025 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period (in shares) | 0 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Numerator: | ||||
Net (loss) income attributable to common stockholders - basic | $ (29,130) | $ 18,605 | $ (45,475) | $ 60,815 |
Interest expense attributable to convertible senior notes | 0 | 0 | 0 | 13,618 |
Net (loss) income attributable to common stockholders - diluted | $ (29,130) | $ 18,605 | $ (45,475) | $ 74,433 |
Denominator: | ||||
Weighted average common shares outstanding (in shares) | 52,258,404 | 54,188,884 | 53,122,374 | 54,537,196 |
Weighted average restricted stock shares (in shares) | 92,585 | 264,662 | 112,124 | 327,260 |
Basic weighted average shares outstanding (in shares) | 52,350,989 | 54,453,546 | 53,234,498 | 54,864,456 |
Effect of dilutive shares issued in an assumed conversion of the convertible senior notes | 0 | 0 | 0 | 14,065,946 |
Effect of dilutive shares issued in an assumed conversion of RSUs as additional shares | 0 | 435,430 | 0 | 245,890 |
Effect of dilutive shares issued in an assumed exercise of warrants issued in conjunction with the senior secured term loan facilities | 0 | 1,846,302 | 0 | 1,726,453 |
Diluted weighted average shares outstanding (in shares) | 52,350,989 | 56,735,278 | 53,234,498 | 70,902,745 |
(Loss) earnings per share | ||||
Basic (loss) earnings per share (in usd per share) | $ (0.56) | $ 0.34 | $ (0.85) | $ 1.11 |
Diluted (loss) earnings per share (in usd per share) | $ (0.56) | $ 0.33 | $ (0.85) | $ 1.05 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Interest expense attributable to antidilutive convertible notes excluded from computation of earnings per share | $ 4.6 | $ 4.6 | $ 13.7 | |
Related issuance costs accretion period | 5 years | |||
Amortization of debt issuance costs, adjustments | $ 0.3 | $ 0.8 | ||
Effect of dilutive shares issued in an assumed exercise of warrants issued in conjunction with the senior secured term loan facilities | 0 | 1,846,302 | 0 | 1,726,453 |
Convertible Debt Securities | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive convertible notes excluded from computation of earnings per share | 14,065,946 | |||
Weighted Average Unvested Restricted Stock Units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive convertible notes excluded from computation of earnings per share | 667,286 | 390,584 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | Nov. 08, 2022 USD ($) |
Senior Floating Rate Loan | Subsequent Event | |
Subsequent Event [Line Items] | |
Financing receivable, excluding accrued interest, nonaccrual | $ 114.1 |