NEW YORK--(BUSINESS WIRE)--Granite Point Mortgage Trust Inc. (NYSE: GPMT) ("GPMT," "Granite Point" or the "Company") today announced its financial results for the quarter and full year ended December 31, 2024, and provided an update on its activities subsequent to quarter-end. An earnings supplemental containing fourth quarter and full year 2024 financial results can be viewed at www.gpmtreit.com.

“We have made substantial progress in successfully executing on our primary objective by resolving nonperforming loans totaling over $340 million in 2024, with several more resolutions either closed or well underway in 2025. We also received twelve loan repayments of about $415 million,” said Jack Taylor, President and Chief Executive Officer of GPMT. “While remaining proactive in our portfolio management approach, and consistent with our flexible capital allocation strategy, during 2024 we redeployed capital into our own securities, repurchasing 2.4 million of common shares, reflecting our strong belief that our stock continues to be undervalued.”

Fourth Quarter 2024 Activity

• Recognized GAAP net (loss) attributable to common stockholders of $(42.4) million, or $(0.86) per basic common share, inclusive of provision for credit losses of $(37.2) million, or $(0.75) per basic common share.
• Distributable Earnings (Loss)⁽¹⁾ of $(98.2) million or $(1.98) per basic share, inclusive of write-offs of $(95.2) million. Distributable Earnings (Loss)⁽¹⁾ Before Realized Gains and Losses of $(3.0) million, or $(0.06) per basic share.
• Book value per common share was $8.47, inclusive of $(4.12) per common share of total CECL reserve.
• Declared common stock dividend of $0.05 per common share and a cash dividend of $0.4375 per share of its Series A preferred stock.
• Net loan portfolio activity of $(242.7) million in unpaid principal balance.
  • Five full loan repayments and partial repayments of $(127.6) million.
  • Four resolutions of $(175.6) million, inclusive of write-offs $(95.2) million.
  • Fundings of $60.5 million, inclusive of a $48.0 million loan assumption in connection with a resolution and modification.
• Carried at quarter-end a 98% floating rate loan portfolio with $2.2 billion in total loan commitments comprised of over 99% senior loans, with a portfolio weighted average stabilized LTV at origination 64.4%⁽²⁾ and a realized loan portfolio yield⁽³⁾ of 6.6%.
• Weighted average loan portfolio risk rating was 3.1.
• Total CECL reserve of $201.0 million, or 9.2% of total loan portfolio commitments.
• Held two unlevered REO⁽⁴⁾ properties with an aggregate carrying value of $52.4 million⁽⁵⁾.
• Repurchased approximately 1.2 million common shares at an average price of $3.45 per share for a total of $4.0 million, resulting in book value accretion of $0.13 per share.
• Ended the quarter with $87.8 million in unrestricted cash and a total leverage⁽⁶⁾ of 2.2x, with no corporate debt maturities remaining.

Full Year 2024 Activity

• Recognized GAAP net (loss) attributable to common stockholders of $(221.5) million, or $(4.39) per basic common share, inclusive of provision for credit losses of $(201.4) million, or $(3.99) per basic common share.
• Distributable Earnings (Loss)⁽¹⁾ of $(143.9) million, or $(2.85) per basic share, inclusive of write-offs of $(146.3) million and recoveries of $8.8 million. Distributable Earnings (Loss)⁽¹⁾ Before Realized Gains and Losses of $(6.4) million, or $(0.13) per basic share.
• Net loan portfolio activity of $(620.8) million in unpaid principal balance.
  • Twelve full loan repayments and partial repayments of $(414.7) million, inclusive of write-offs $(4.2) million.
  • Nine loan resolutions of $(344.4) million, inclusive of write-offs $(142.2) million, partially offset by a $32.0 million A-note as result of one of the loan resolutions.
  • Fundings of $106.3 million, inclusive of a $48.0 million loan assumption in connection with a resolution and modification.
• Repurchased approximately 2.4 million common shares at an average price of $3.16 per share for a total of $7.6 million, resulting in book value accretion of approximately $0.28 per share.

Post Quarter-End Update

• In January, took as REO an office property in Miami Beach, FL via a negotiated transaction with an expected net carrying value of approximately $71.0 million. As of December 31, 2024, loan was on nonaccrual status with an unpaid principal balance of $71.3 million and risk rating of “5”. The Company expects to realize a write-off of approximately $(7.9) million, reserved for through previously recorded allowance for credit losses.
• In February, resolved a loan secured by an office property in Boston, MA via a property sale. As of December 31, 2024, loan was on nonaccrual status with an unpaid principal balance of $26.1 million and risk rating of “5”. The Company expects to realize a write-off of approximately $(16.6) million, reserved for through a previously recorded allowance for credit losses.
• So far in Q1’25, the Company funded about $2.9 million on existing loan commitments.
• As of February 12, 2025, carried approximately $75.0 million in unrestricted cash.

Conference Call

Granite Point Mortgage Trust Inc. will host a conference call on February 14, 2025, at 11:00 a.m. ET to discuss fourth quarter and full year 2024 financial results and related information. To participate in the teleconference, please call toll-free (877) 407-8031, (or (201) 689-8031 for international callers), approximately 10 minutes prior to the above start time, and ask to be joined into the Granite Point Mortgage Trust Inc. call. You may also listen to the teleconference live via the Internet at www.gpmtreit.com, in the Investor section under the News & Events link. For those unable to attend, a telephone playback will be available beginning February 14, 2025, at 12:00 p.m. ET through February 28, 2025, at 12:00 a.m. ET. The playback can be accessed by calling (877) 660-6853 (or (201) 612-7415 for international callers) and providing the Access Code 13751320. The call will also be archived on the Company’s website in the Investor section under the News & Events link.

About Granite Point Mortgage Trust Inc.

Granite Point Mortgage Trust Inc. is a Maryland corporation focused on directly originating, investing in and managing senior floating rate commercial mortgage loans and other debt and debt-like commercial real estate investments. Granite Point is headquartered in New York, NY. Additional information is available at www.gpmtreit.com.

Forward-Looking Statements

This press release contains, or incorporates by reference, not only historical information, but also forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve numerous risks and uncertainties. Our actual results may differ from our beliefs, expectations, estimates, projections and illustrations and, consequently, you should not rely on these forward-looking statements as predictions of future events. Forward-looking statements are not historical in nature and can be identified by words such as “anticipate,” “estimate,” “will,” “should,” “expect,” “target,” “believe,” “outlook,” “potential,” “continue,” “intend,” “seek,” “plan,” “goals,” “future,” “likely,” “may” and similar expressions or their negative forms, or by references to strategy, plans or intentions. The illustrative examples herein are forward-looking statements. By their nature, forward-looking statements speak only as of the date they are made, are not statements of historical facts or guarantees of future performance and are subject to risks, uncertainties, assumptions or changes in circumstances that are difficult to predict or quantify. Our expectations, beliefs and estimates are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that management's expectations, beliefs and estimates will prove to be correct or be achieved, and actual results may vary materially from what is expressed in or indicated by the forward-looking statements.

These forward-looking statements are subject to risks and uncertainties, including, among other things, those described in our Annual Report on Form 10-K for the year ended December 31, 2023, under the caption “Risk Factors,” and any subsequent Form 10-Q or other filings made with the SEC. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.

This press release is for informational purposes only and shall not constitute, or form a part of, an offer to sell or buy or the solicitation of an offer to sell or the solicitation of an offer to buy any securities.

Non-GAAP Financial Measures

In addition to disclosing financial results calculated in accordance with United States generally accepted accounting principles (GAAP), this press release and the accompanying earnings presentation present non-GAAP financial measures, such as Distributable Earnings (Loss) and Distributable Earnings (Loss) per basic common share, that exclude certain items. Granite Point management believes that these non-GAAP measures enable it to perform meaningful comparisons of past, present and future results of the Company’s core business operations, and uses these measures to gain a comparative understanding of the Company’s operating performance and business trends. The non-GAAP financial measures presented by the Company represent supplemental information to assist investors in analyzing the results of its operations. However, because these measures are not calculated in accordance with GAAP, they should not be considered a substitute for, or superior to, the financial measures calculated in accordance with GAAP. The Company’s GAAP financial results and the reconciliations from these results should be carefully evaluated. See the GAAP to non-GAAP reconciliation table on page 6 of this release.

Additional Information

Stockholders of Granite Point and other interested persons may find additional information regarding the Company at the Securities and Exchange Commission’s Internet site at www.sec.gov or by directing requests to: Granite Point Mortgage Trust Inc., 3 Bryant Park, 24^th Floor, New York, NY 10036, telephone (212) 364-5500.