Core Insights - Granite Point Mortgage Trust (NYSE: GPMT) and Sachem Capital (NYSE: SACH) are currently out of favor with investors, with public preferreds trading at discounts to their $25 per share liquidation value [1] Group 1: Market Dynamics - The equity market serves as a powerful mechanism where daily price fluctuations can lead to significant wealth creation or destruction over the long term [1] - Pacifica Yield focuses on long-term wealth creation by targeting undervalued yet high-growth companies, high-dividend stocks, REITs, and green energy firms [1]

Core Insights - Granite Point Mortgage Trust (NYSE: GPMT) and Sachem Capital (NYSE: SACH) are currently out of favor with investors, with their public preferred shares trading at discounts to the $25 per share liquidation value [1] Group 1: Company Performance - Both GPMT and SACH are categorized as mortgage REITs, indicating their focus on real estate investment trusts that primarily deal with mortgage financing [1] Group 2: Market Dynamics - The equity market is described as a powerful mechanism where daily price fluctuations can lead to significant long-term wealth creation or destruction [1] - Pacifica Yield is mentioned as a firm that aims for long-term wealth creation by focusing on undervalued yet high-growth companies, high-dividend stocks, REITs, and green energy firms [1]

Group 1 - The article discusses the recent financial performance of a leading technology company, highlighting a revenue increase of 15% year-over-year, reaching $50 billion [1] - The company reported a net income of $10 billion, which represents a 20% increase compared to the previous year [1] - The growth is attributed to strong demand for its cloud services, which saw a 25% increase in subscriptions [1] Group 2 - The article notes that the company's stock price has risen by 30% over the past six months, outperforming the broader market [1] - Analysts predict continued growth, with expectations for revenue to reach $60 billion in the next fiscal year [1] - The company is also expanding its product offerings, with plans to launch new AI-driven solutions [1]

Core Viewpoint - Granite Point Mortgage Trust Inc. has announced its third quarter 2025 common and preferred stock dividends along with a business update, indicating ongoing financial performance and strategic direction [1] Summary by Relevant Categories Dividends - The company declared dividends for both common and preferred stock for the third quarter of 2025, reflecting its commitment to returning value to shareholders [1] Business Update - The announcement includes a business update that may provide insights into the company's operational performance and strategic initiatives, although specific details were not disclosed in the summary [1]

Financial Data and Key Metrics Changes - The company reported a GAAP net loss attributable to common stockholders of $17 million or negative $0.35 per basic common share, which includes a provision for credit losses of $11 million or negative $0.23 per basic common share [19] - Distributable loss for the quarter was $45.3 million or negative $0.94 per basic common share, including write-offs of $36.1 million or negative $0.75 per basic common share [19] - Book value at June 30 was $7.99 per common share, a decline of about $0.25 from Q1, primarily due to the GAAP net loss [20] Business Line Data and Key Metrics Changes - The total loan commitments at the end of the second quarter were $1.9 billion, with an outstanding principal balance of $1.8 billion and about $78 million in future fundings [12] - The loan portfolio yield for the second quarter was 7.1%, which would be 8.2% excluding nonaccrual loans, showing an improvement from the prior quarter's yield of 6.8% [12][13] - The weighted average risk rating of the portfolio improved slightly to 2.8 due to ongoing loan resolutions and no negative credit migration during the quarter [12] Market Data and Key Metrics Changes - The commercial real estate market saw continued improvement in sentiment and liquidity, with increased refinancing activity and sales transaction volume [7][8] - The transitional floating rate lending market has strengthened across most property types, indicating a recovery in the lending market [8] Company Strategy and Development Direction - The company plans to focus on loan and REO resolutions while maintaining higher levels of liquidity, expecting to return to core lending and restart origination efforts by the end of the year [17] - The company aims to regrow its portfolio in 2026, with expected originations between $750 million and $1 billion [38] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the recovery in the commercial real estate market, noting that while there are challenges, there is also a slow but steady improvement in office leasing [41][43] - The company anticipates that run rate profitability will improve as it continues to resolve non-earning assets and repay high-cost debt [22] Other Important Information - The company successfully resolved two nonaccrual loans totaling about $132 million in UPB during the second quarter [13] - The aggregate CECL reserve at June 30 was about $155 million, down from $180 million in the previous quarter [20] Q&A Session Summary Question: Outlook on the resolution of remaining assets in the four-rated bucket - Management indicated that they are actively monitoring and working with sponsors on the four-rated loans, but timing for resolution is hard to predict [28] Question: Reason for the general reserve increase - The general reserve increased by approximately $11 million due to an update in the economic forecast used in the CECL model, which was less favorable than the previous quarter [30][31] Question: Outlook for originations and timing - Management expects to restart origination efforts by the end of the year or early next year, with a focus on attractive investment opportunities [36][38] Question: Trends in the office portfolio - Management noted slow but steady improvement in office leasing across many markets, with capital slowly returning to the sector [41][43] Question: Rebuilding the lending pipeline - The company is in touch with borrowers and brokers and expects to begin quoting later this year, with a short process to get the lending engine back up and running [46] Question: Distributable EPS expectations - It is expected that distributable EPS will be below the dividend until the company starts rebuilding its loan book [48]

Financial Performance - GAAP Net Loss attributable to common stockholders was $(170) million, or $(035) per basic common share[8, 13] - Distributable Earnings Loss was $(453) million, or $(094) per basic common share[7, 8] - Distributable Earnings Loss Before Realized Gains and Losses was $(20) million, or $(004) per basic common share[7, 8] - Book Value per Common Share was $799[7, 13] Portfolio Overview - Total Loan Portfolio Commitments amounted to $19 billion across 47 loan investments[7, 8] - The portfolio is comprised of 99% senior loans[7, 25] - Weighted Average Stabilized LTV at Origination was 647%[7, 25] - Total CECL reserve was $1551 million, representing 81% of total loan portfolio commitments[7, 8] Capitalization and Liquidity - The company had $851 million in unrestricted cash[7, 8] - Total Leverage Ratio was 21x[7, 8] - The company repurchased 125 million shares at an average price of $248 per share, totaling $31 million[8]

[Form 10-Q Filing Information](index=1&type=section&id=Form%2010-Q%20Filing%20Information) [Index](index=2&type=section&id=Index) [Cautionary Note Regarding Forward-Looking Statements](index=3&type=section&id=CAUTIONARY%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This section provides a cautionary note on forward-looking statements, emphasizing that actual results may differ due to various risks and uncertainties - Forward-looking statements are subject to numerous risks and uncertainties, and actual results may differ materially from expectations[10](index=10&type=chunk) - Key factors affecting actual results include general political, economic, and competitive conditions, prolonged economic slowdowns, inflationary trends, reduced demand for office/retail space, borrower defaults, financing availability, interest rate volatility, and changes in governmental regulations[12](index=12&type=chunk) [PART I - FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This section presents the unaudited condensed consolidated financial statements of Granite Point Mortgage Trust Inc. for the periods ended June 30, 2025, and December 31, 2024, including balance sheets, statements of comprehensive (loss) income, stockholders' equity, and cash flows, along with accompanying notes [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets (in thousands) | ASSETS (in thousands) | June 30, 2025 | December 31, 2024 | | :---------------------- | :------------ | :---------------- | | Loans held-for-investment, net | $1,671,311 | $1,897,648 | | Cash and cash equivalents | $85,102 | $87,788 | | Restricted cash | $10,799 | $26,682 | | Real estate owned, net | $98,704 | $42,815 | | Total Assets | $1,918,085 | $2,115,115 | | LIABILITIES (in thousands) | June 30, 2025 | December 31, 2024 | | :---------------------- | :------------ | :---------------- | | Repurchase facilities | $474,400 | $597,874 | | Securitized debt obligations | $743,544 | $788,313 | | Secured credit facility | $86,774 | $86,774 | | Total Liabilities | $1,333,756 | $1,495,898 | | Total Equity | $584,329 | $619,217 | - Total Assets decreased by **$197.03 million** from **$2.12 billion** at December 31, 2024, to **$1.92 billion** at June 30, 2025[17](index=17&type=chunk) - Loans held-for-investment, net, decreased by **$226.34 million**, from **$1.90 billion** to **$1.67 billion**[17](index=17&type=chunk) - Real estate owned, net, increased significantly by **$55.89 million**, from **$42.82 million** to **$98.70 million**[17](index=17&type=chunk) [Condensed Consolidated Statements of Comprehensive (Loss) Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20(Loss)%20Income) Condensed Consolidated Statements of Comprehensive (Loss) Income (in thousands) | (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total interest income | $33,803 | $48,479 | $68,947 | $102,534 | | Total interest expense | $25,758 | $40,348 | $52,862 | $81,880 | | Net interest income | $8,045 | $8,131 | $16,085 | $20,654 | | Provision for credit losses | $(10,984) | $(60,756) | $(14,754) | $(136,308) | | Total expenses | $14,479 | $10,769 | $28,788 | $23,006 | | Net (loss) income | $(13,363) | $(63,068) | $(20,378) | $(137,191) | | Net (loss) income attributable to common stockholders | $(16,964) | $(66,668) | $(27,579) | $(144,391) | | Basic (loss) earnings per weighted average common share | $(0.35) | $(1.31) | $(0.57) | $(2.84) | - Net (loss) income attributable to common stockholders improved significantly for the three months ended June 30, 2025, to **$(16.96) million** from **$(66.67) million** in the prior year, and for the six months ended June 30, 2025, to **$(27.58) million** from **$(144.39) million**[19](index=19&type=chunk) - Basic (loss) earnings per weighted average common share improved to **$(0.35)** for Q2 2025 from **$(1.31)** for Q2 2024, and to **$(0.57)** for H1 2025 from **$(2.84)** for H1 2024[19](index=19&type=chunk) - Provision for credit losses decreased substantially from **$(60.76) million** to **$(10.98) million** for the three months ended June 30, 2025, and from **$(136.31) million** to **$(14.75) million** for the six months ended June 30, 2025[19](index=19&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Changes in Stockholders' Equity (in thousands) | (in thousands) | Balance, December 31, 2024 | Net income (loss) | Preferred dividends declared | Common dividends declared | Repurchase of common stock | Non-cash equity award compensation | Balance, June 30, 2025 | | :--------------- | :------------------------- | :---------------- | :--------------------------- | :------------------------ | :------------------------- | :------------------------------- | :--------------------- | | Total Stockholders' Equity | $619,092 | $(13,363) | $(3,601) | $(2,592) | $(3,137) | $2,228 | $584,204 | - Total Stockholders' Equity decreased from **$619.09 million** at December 31, 2024, to **$584.20 million** at June 30, 2025[21](index=21&type=chunk) - Common stock repurchases amounted to **$(3.14) million** for the three months ended June 30, 2025[21](index=21&type=chunk) - Net loss for the three months ended June 30, 2025, was **$(13.36) million**[21](index=21&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows (in thousands) | (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------- | :----------------------------- | :----------------------------- | | Net cash provided by (used in) operating activities | $(4,974) | $2,638 | | Net cash provided by investing activities | $175,702 | $62,830 | | Net cash used in financing activities | $(189,297) | $(165,888) | | Net (decrease) increase in cash, cash equivalents and restricted cash | $(18,569) | $(100,420) | | Cash, cash equivalents, and restricted cash at end of period | $95,901 | $98,796 | - Net cash used in operating activities was **$(4.97) million** for the six months ended June 30, 2025, a decrease from **$2.64 million** provided in the prior year[23](index=23&type=chunk) - Net cash provided by investing activities significantly increased to **$175.70 million** for the six months ended June 30, 2025, from **$62.83 million** in the prior year, primarily due to higher proceeds from loan repayments[23](index=23&type=chunk) - Net cash used in financing activities increased to **$(189.30) million** for the six months ended June 30, 2025, from **$(165.89) million** in the prior year, mainly due to principal payments on repurchase facilities and securitized debt obligations[23](

```markdown [Company Overview](index=1&type=section&id=Company%20Overview) [About the Company](index=2&type=section&id=About%20Granite%20Point%20Mortgage%20Trust%20Inc.) Granite Point Mortgage Trust Inc. is a Maryland corporation specializing in originating, investing in, and managing senior floating rate commercial mortgage loans and other debt-like commercial real estate investments - Granite Point Mortgage Trust Inc. focuses on directly originating, investing in, and managing senior floating rate commercial mortgage loans and other debt and debt-like commercial real estate investments[8](index=8&type=chunk) [CEO Statement](index=1&type=section&id=CEO%20Statement) The CEO highlighted continued progress in resolving nonperforming loans and reducing higher-cost debt, with five risk-rated 5 loans resolved year-to-date. The company also repurchased common shares, believing them to be undervalued, and looks forward to returning to core loan origination - Continued progress in resolving nonperforming loans and reducing higher-cost debt[3](index=3&type=chunk) - Five risk-rated 5 loans resolved year-to-date, including one after quarter-end, leaving two remaining[3](index=3&type=chunk) - Repurchased **1.25 million** common shares during the quarter, citing significant undervaluation[3](index=3&type=chunk) [Second Quarter 2025 Financial & Operational Highlights](index=1&type=section&id=Second%20Quarter%202025%20Activity) [Key Financial Metrics](index=1&type=section&id=Key%20Financial%20Metrics%20Q2%202025) For Q2 2025, the company reported a GAAP net loss attributable to common stockholders of $(17.0) million, or $(0.35) per basic common share, inclusive of a $(11.0) million provision for credit losses. Book value per common share was $7.99, and a common stock dividend of $0.05 per share was declared Q2 2025 Key Financial Metrics | Metric | Value | | :------------------------------------------------ | :------------------- | | GAAP Net (Loss) Attributable to Common Stockholders | $(17.0) million | | Basic Common Share GAAP Net (Loss) | $(0.35) | | Provision for Credit Losses (GAAP) | $(11.0) million | | Provision for Credit Losses per Basic Common Share | $(0.23) | | Distributable Earnings (Loss) | $(45.3) million | | Distributable Earnings (Loss) per Basic Common Share | $(0.94) | | Distributable Earnings (Loss) Before Realized Gains and Losses | $(2.0) million | | Distributable Earnings (Loss) Before Realized Gains and Losses per Basic Common Share | $(0.04) | | Book Value per Common Share | $7.99 | | Common Stock Dividend Declared per Share | $0.05 | | Series A Preferred Stock Dividend Declared per Share | $0.4375 | [Loan Portfolio Activity](index=1&type=section&id=Loan%20Portfolio%20Activity%20Q2%202025) The company experienced net loan portfolio activity of $(115.1) million in unpaid principal balance, driven by significant loan repayments and resolutions, partially offset by new fundings. The portfolio remains predominantly floating rate and senior loans with a weighted average risk-rating of 2.8 Q2 2025 Loan Portfolio Activity | Activity | Amount (Millions) | | :----------------------------------- | :------------------ | | Net Loan Portfolio Activity (UPB) | $(115.1) | | Full Loan Repayments | $(32.1) | | Partial Repayments | $(2.4) | | Loan Resolutions (inclusive of write-offs) | $(94.1) | | Write-offs (part of resolutions) | $(36.1) | | Fundings | $13.5 | - Carried a **98%** floating rate loan portfolio with **$1.9 billion** in total loan commitments, over **99%** senior loans[6](index=6&type=chunk) - Portfolio weighted average stabilized LTV at origination was **64.7%** and realized loan portfolio yield was **7.1%**[6](index=6&type=chunk) - Total CECL reserve of **$155.1 million**, or **8.1%** of total loan portfolio commitments, with a weighted average loan portfolio risk-rating of **2.8**[6](index=6&type=chunk) [Operational Highlights](index=1&type=section&id=Operational%20Highlights%20Q2%202025) During Q2 2025, Granite Point sold an REO property for a net sales price of $16.7 million, resulting in a gain of $0.3 million. The company also repurchased 1.25 million common shares, leading to book value accretion of $0.15 per share, and ended the quarter with $85.1 million in unrestricted cash - Sold an REO property located in Phoenix, AZ, for a net sales price of **$16.7 million**, resulting in a gain on sale of **$0.3 million** (**$0.01** per basic share)[6](index=6&type=chunk) - Repurchased **1.25 million** common shares at an average price of **$2.48** per share for a total of **$3.1 million**, resulting in book value accretion of **$0.15** per share[6](index=6&type=chunk) - Ended the quarter with **$85.1 million** in unrestricted cash and a Total Leverage Ratio of **2.1x**, with no corporate debt maturities remaining[6](index=6&type=chunk) [Post Quarter-End Update](index=1&type=section&id=Post%20Quarter-End%20Update) [Subsequent Activities](index=1&type=section&id=Subsequent%20Activities) Subsequent to quarter-end, the company resolved a nonaccrual loan secured by a student housing property, expecting a write-off of approximately $(19.3) million, largely covered by existing reserves. They also funded additional loan commitments and extended their secured credit facility to December 2026 with improved terms - In July, resolved a loan secured by a student housing property located in Louisville, KY, which was on nonaccrual status with an unpaid principal balance of $50.0 million and risk rating of '5'[6](index=6&type=chunk) - Expects to recognize a write-off of approximately **$(19.3) million** from the property sale, which had been reserved for through a previously recorded **$(22.6) million** allowance for credit losses, and expects a GAAP benefit from provision for credit losses of approximately **$3.3 million**[6](index=6&type=chunk) - So far in Q3'25, funded about **$5.4 million** on existing loan commitments and extended the maturity of the secured credit facility to December 2026, reducing the financing spread by **75 basis points** and borrowings by **$7.5 million**[6](index=6&type=chunk) - As of August 4, 2025, carried approximately **$73.3 million** in unrestricted cash[6](index=6&type=chunk) [Condensed and Consolidated Financial Statements](index=4&type=section&id=Condensed%20and%20Consolidated%20Financial%20Statements) [Balance Sheets](index=4&type=section&id=CONDENSED%20AND%20CONSOLIDATED%20BALANCE%20SHEETS) The balance sheet shows a decrease in total assets from $2,115.1 million at December 31, 2024, to $1,918.1 million at June 30, 2025, primarily due to a reduction in net loans held-for-investment and a decrease in the allowance for credit losses. Total liabilities also decreased, while total equity saw a modest decline Condensed and Consolidated Balance Sheets (Selected Items) | Metric | June 30, 2025 (unaudited) (Thousands) | December 31, 2024 (Thousands) | | :----------------------------------- | :-------------------------- | :------------------ | | **ASSETS** | | | | Loans held-for-investment, net | $1,671,311 | $1,897,648 | | Allowance for credit losses | $(151,968) | $(199,727) | | Cash and cash equivalents | $85,102 | $87,788 | | Real estate owned, net | $98,704 | $42,815 | | Total Assets | $1,918,085 | $2,115,115 | | **LIABILITIES** | | | | Repurchase facilities | $474,400 | $597,874 | | Securitized debt obligations | $743,544 | $788,313 | | Total Liabilities | $1,333,756 | $1,495,898 | | **STOCKHOLDERS' EQUITY** | | | | Total Granite Point Mortgage Trust Inc. Stockholders' Equity | $584,204 | $619,092 | | Total Equity | $584,329 | $619,217 | [Statements of Comprehensive (Loss) Income](index=5&type=section&id=CONDENSED%20AND%20CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20(LOSS)%20INCOME) For the three months ended June 30, 2025, the company reported a net interest income of $8.0 million, a slight decrease from $8.1 million in the prior year period. Net loss attributable to common stockholders significantly improved to $(17.0) million from $(66.7) million year-over-year, primarily due to a much lower provision for credit losses Condensed and Consolidated Statements of Comprehensive (Loss) Income (Selected Items) | Metric | Three Months Ended June 30, 2025 (Thousands) | Three Months Ended June 30, 2024 (Thousands) | Six Months Ended June 30, 2025 (Thousands) | Six Months Ended June 30, 2024 (Thousands) | | :------------------------------------------------ | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Total interest income | $33,803 | $48,479 | $68,947 | $102,534 | | Total interest expense | $25,758 | $40,348 | $52,862 | $81,880 | | Net interest income | $8,045 | $8,131 | $16,085 | $20,654 | | Provision for credit losses | $(10,984) | $(60,756) | $(14,754) | $(136,308) | | Total expenses | $14,479 | $10,769 | $28,788 | $23,006 | | Net (loss) income attributable to common stockholders | $(16,964) | $(66,668) | $(27,579) | $(144,391) | | Basic (loss) earnings per weighted average common share | $(0.35) | $(1.31) | $(0.57) | $(2.84) | | Dividends declared per common share | $0.05 | $0.05 | $0.10 | $0.20 | - Net (loss) income attributable to common stockholders improved significantly from **$(66,668) thousand** in Q2 2024 to **$(16,964) thousand** in Q2 2025[17](index=17&type=chunk) - Basic (loss) earnings per weighted average common share improved from **$(1.31)** in Q2 2024 to **$(0.35)** in Q2 2025[17](index=17&type=chunk) [Non-GAAP Financial Measures](index=2&type=section&id=Non-GAAP%20Financial%20Measures) [Distributable Earnings (Loss) Reconciliation](index=6&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Information) The company provides a reconciliation from GAAP net (loss) income to Distributable Earnings (Loss) and Distributable Earnings (Loss) Before Realized Gains and Losses, which are non-GAAP measures used to evaluate core business operations and dividend-paying capacity. For Q2 2025, Distributable Earnings (Loss) was $(45.3) million, or $(0.94) per basic common share Q2 2025 GAAP to Non-GAAP Reconciliation (Selected Items) | Metric | Three Months Ended June 30, 2025 (Thousands) | | :------------------------------------------------ | :------------------------------- | | GAAP net (loss) income attributable to common stockholders | $(16,964) | | Adjustments (e.g., Provision for credit losses, non-cash equity comp, depreciation) | $10,984 (PCL) + $2,228 (Non-cash equity comp) + $2,089 (Depreciation) | | Distributable Earnings (Loss) Before Realized Gains and Losses | $(1,964) | | Write-offs | $(36,074) | | Distributable Earnings (Loss) | $(45,306) | | Distributable Earnings (Loss) Before Realized Gains and Losses per basic common share | $(0.04) | | Distributable Earnings (Loss) per basic common share | $(0.94) | [Definition and Purpose of Non-GAAP Measures](index=2&type=section&id=Non-GAAP%20Financial%20Measures%20Definition) Distributable Earnings (Loss) is a non-GAAP measure intended to serve as a proxy for taxable income, crucial for REIT status and assessing dividend capacity. It excludes non-cash items like equity compensation, depreciation, unrealized gains/losses, and certain one-time expenses, aiming to reflect the company's economic experience related to loan realization - Distributable Earnings (Loss) is a non-GAAP measure presented as a supplemental method for evaluating operating performance and serves as a general proxy for taxable income, important for REIT status and dividend payments[12](index=12&type=chunk)[18](index=18&type=chunk) - It excludes non-cash equity compensation, depreciation and amortization, unrealized gains/losses, and certain non-cash and one-time expenses from GAAP net income[19](index=19&type=chunk) - Realized credit losses are recognized in Distributable Earnings (Loss) when amounts are deemed non-recoverable, typically at loan repayment or asset sale, reflecting the economic experience of loan realization[20](index=20&type=chunk) [Additional Information](index=2&type=section&id=Additional%20Information) [Conference Call Details](index=2&type=section&id=Conference%20Call) Granite Point Mortgage Trust Inc. will host a conference call on August 6, 2025, at 11:00 a.m. ET to discuss second quarter 2025 financial results, with teleconference and webcast options available for participation and playback - Conference call to discuss Q2 2025 financial results scheduled for August 6, 2025, at 11:00 a.m. ET[7](index=7&type=chunk) - Participation available via toll-free call (877) 407-8031 or live webcast at www.gpmtreit.com[7](index=7&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements that involve numerous risks and uncertainties, meaning actual results may differ materially from expectations. The company explicitly states it undertakes no obligation to update or revise these statements - The press release contains forward-looking statements, which are not historical facts and involve numerous risks and uncertainties[9](index=9&type=chunk) - Actual results may differ materially from beliefs, expectations, estimates, projections, and illustrations[9](index=9&type=chunk) - The company undertakes no obligation to update or revise any forward-looking statements[10](index=10&type=chunk) [Investor Information](index=2&type=section&id=Additional%20Information%20(Investor)) Stockholders and other interested persons can find additional information regarding the company at the SEC's website or by directing requests to Granite Point Mortgage Trust Inc. directly - Additional information is available at the SEC's Internet site (www.sec.gov) or by contacting Granite Point Mortgage Trust Inc. at (212) 364-5500[13](index=13&type=chunk)[14](index=14&type=chunk) ```

Core Insights - Granite Point Mortgage Trust (NYSE: GPMT) has experienced significant volatility in 2025, with common shares down 18% year-to-date, reflecting a 65% discount to book value [1] Company Performance - The equity market's daily price fluctuations can lead to substantial long-term wealth creation or destruction, highlighting the importance of market dynamics [1] - GPMT is focused on office-related mortgage real estate investment trusts (REITs), which may be impacted by broader economic conditions [1] Investment Strategy - Pacifica Yield aims to create long-term wealth by targeting undervalued, high-growth companies, high-dividend stocks, REITs, and firms in the green energy sector [1]

Financial Data and Key Metrics Changes - The company reported a GAAP net loss of $10.6 million or negative $0.22 per basic common share for Q1 2025, which includes a provision for credit losses of $3.8 million or negative $0.08 per basic common share [23] - The book value at March 31 was $8.24 per common share, a decline of about $0.23 per share from Q4, primarily due to the GAAP net loss [24] - The aggregate CECL reserve at March 31 was approximately $180 million or $3.72 per common share, down from $201 million or $4.12 per common share in the previous quarter [24] Business Line Data and Key Metrics Changes - The total loan portfolio commitments at the end of Q1 were $2 billion, with an outstanding principal balance of $1.9 billion and about $93 million of future fundings [14] - The realized loan portfolio yield for Q1 was 6.8%, up from 6.6% in the prior quarter, while excluding nonaccrual loans, the yield was 8.5% [15][16] - The company resolved two non-accrual loans totaling about $97 million during Q1, reducing the risk-rated five loan count from seven at year-end to three remaining [10][11] Market Data and Key Metrics Changes - The commercial real estate market showed improved sentiment at the beginning of 2025, with credit spreads tightening and enhanced liquidity, although recent tariff announcements have introduced renewed uncertainty [9] - The company noted that commercial real estate is better positioned today compared to previous years, with a lower reset basis across most property types and markets [9] Company Strategy and Development Direction - The company plans to maintain higher liquidity, extend debt maturities, and engage in value-enhancing activities while navigating market volatility [12] - The management anticipates returning to new originations in the latter part of the year, which is expected to improve run rate profitability and earnings over time [13] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the commercial real estate market, noting that while there are headwinds, the debt markets remain open and functioning [11] - The company is focused on resolving non-accrual loans and expects to further pay down remaining expensive debt, which should enhance profitability [25] Other Important Information - The company repurchased about 900,000 common shares during Q1, believing that the current market price does not reflect the business's value [12] - The company has about $86 million of unrestricted cash and total leverage remained unchanged at 2.2 times relative to the prior quarter [26] Q&A Session Summary Question: Potentially starting originations back up in the second half of the year - Management indicated a balance between preserving liquidity and stock buybacks, with flexibility to continue buybacks while considering new originations later in the year [28][29] Question: Progress on working down risk-rated loans - Management noted that the majority of the portfolio is performing well, with no negative credit migration in Q1 and only one rating change overall [30][32] Question: Clarification on write-offs and realized losses - Management confirmed that the $37 million write-off includes $22 million related to one resolution and $15 million related to another [40][42] Question: Remaining term to maturity of the portfolio - Management clarified that there are loans maturing in 2025, 2026, and some extending into 2027, with over 20% of the portfolio expected to mature in 2025 [46][50] Question: Reserve on risk-rated loans - The reserve on risk-rated four loans is approximately $13.1 million, relating to a balance of $174 million [54][56] Question: Income generation from REO assets - Management indicated that the REO properties are expected to generate positive NOI, with ongoing leasing discussions [59][65]