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]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (212) 364-5500 For the transition period from to Commission File Number: 001-38124 GRANITE POINT MORTGAGE TRUST INC. (Exact name of registrant as specified in its charter) Maryland 61-1843143 (State or ...

Granite Point Mortgage Trust Inc. Reports Second Quarter 2025 Financial Results and Post Quarter-End Update NEW YORK, August 5, 2025 – Granite Point Mortgage Trust Inc. (NYSE: GPMT) ("GPMT," "Granite Point" or the "Company") today announced its financial results for the quarter ended June 30, 2025, and provided an update on its activities subsequent to quarter-end. An earnings supplemental containing second quarter 2025 financial results can be viewed at www.gpmtreit.com. "We continued our progress in resol ...

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]

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 ended the first quarter at $2 billion, with an outstanding principal balance of $1.9 billion and about $93 million of future fundings [14] - The 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% compared to 8.8% previously [15] - The company resolved two nonaccrual loans totaling about $97 million in UPB during the first quarter, reducing the risk-rated V 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 tightening credit spreads and enhanced liquidity, although recent tariff announcements have introduced renewed uncertainty [8] - 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 [8] 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 company 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 regarding the commercial real estate market, noting that while there are headwinds, the debt markets remain open and functioning [11] - The management team emphasized the importance of resolving nonaccrual loans and maintaining liquidity to maximize value during uncertain times [21] Other Important Information - The company repurchased about 900,000 shares of common stock during the first quarter and has about 3.9 million shares remaining under its existing buyback authorization [12] - The company has three remaining nonaccrual loans rated five, with a total balance of about $223 million [25] Q&A Session Summary Question: How does the company balance stock buybacks versus originating new loans? - Management indicated that they are currently focused on preserving liquidity and have been active in stock buybacks, with plans to balance this against new originations later in the year [28][29] Question: What is the status of the risk-rated loans and potential downgrades? - Management noted that the majority of the portfolio is performing well, with no negative credit migration in the first quarter, and they are closely monitoring the risk-rated loans [30][32] Question: Can you clarify the realized losses and their timing? - Management confirmed that the $37 million write-off includes $22 million related to one resolution, and they expect to recognize these in distributable EPS [40][41] Question: What percentage of the portfolio matures in 2025? - Management clarified that a little over 20% of the portfolio has a final maturity in 2025, with loans maturing in 2026 and beyond as well [49][50] Question: What is the reserve on risk-rated four loans? - The reserve on risk-rated four loans is approximately $13.1 million, which relates to a balance of $174 million [53][54] Question: What is the status of the Miami office property? - Management indicated that the Miami office property is a high-quality Class A asset with potential, and they are actively reviewing resolution alternatives and leasing discussions [63][64]

Financial Performance - GAAP Net Loss attributable to common stockholders was $(10.6) million, or $(0.22) per basic common share[8, 13] - Distributable Earnings Loss was $(27.7) million, or $(0.57) per basic common share[7, 8] - Distributable Earnings Loss Before Realized Gains and Losses was $(3.0) million, or $(0.06) per basic common share[7, 8] - Common stock dividend was $0.05 per share[7, 10] - Book Value per Common Share was $8.24[7, 13] Portfolio Overview - Total Loan Portfolio Commitments amounted to $2.0 billion across 50 loan investments[7, 8] - The unpaid principal balance of the loan portfolio was $1.9 billion[26, 37] - The weighted average stabilized LTV at origination was 64.5%[7, 25, 26] - The total CECL reserve was $180.2 million, representing 8.8% of total loan portfolio commitments[7, 8] - Net loan portfolio activity resulted in a decrease of $(161.4) million in unpaid principal balance[8, 24] Capitalization and Liquidity - The company had $85.7 million in unrestricted cash[7, 8, 10] - The total leverage ratio was 2.2x[7, 8, 34] - $2.1 billion financing capacity with $1.4 billion outstanding[7]

Financial Performance - For the three months ended March 31, 2025, the company recorded a GAAP net loss of $(10.6) million, or $(0.22) per basic share[160]. - Distributable loss for the same period was $(27.7) million, or $(0.57) per basic share, which includes $(24.6) million in write-offs[160]. - GAAP net loss attributable to common stockholders was $(10.6) million in Q1 2025, an improvement from $(42.4) million in Q4 2024[240]. - Net interest income for the three months ended March 31, 2025, was $8.04 million, with a net interest rate spread of (0.8)%[217]. - Total interest income decreased to $35.14 million in Q1 2025 from $38.72 million in Q4 2024, primarily due to a lower average balance of interest-earning assets[235]. - Total interest expense decreased to $27.10 million in Q1 2025 from $31.15 million in Q4 2024, mainly due to a lower average balance of interest-bearing liabilities[236]. - Provision for credit losses was $(3.77) million in Q1 2025, significantly lower than $(37.19) million in Q4 2024, indicating improved credit quality[237]. - Revenue from REO operations was $3.1 million in Q1 2025, a slight decrease from $3.3 million in Q4 2024 due to lower variable rent income[238]. - Total operating expenses increased to $14.31 million in Q1 2025 from $12.50 million in Q4 2024, with compensation and benefits rising significantly[239]. Loan Portfolio - The company maintained a portfolio of 50 loan investments with an aggregate unpaid principal balance of $1.9 billion and total commitments of $2.0 billion[160]. - The total loan commitments as of March 31, 2025, were $2.037 billion, with an unpaid principal balance of $1.945 billion and unfunded loan commitments of $92.7 million[174]. - The carrying value of the loan portfolio was reported at $1.760 billion[174]. - The weighted average risk rating of the loan portfolio improved to 3.0 from 3.1 as of December 31, 2024[171]. - The average loan-to-value (LTV) ratio for the portfolio is 69.4%, with a stabilized LTV of 64.5%[178]. - The portfolio includes a total of 177.3 million in allowance for credit losses[178]. - The average term of the loans in the portfolio is 3.1 years[178]. - The portfolio consists of various property types, including multifamily, office, and industrial, with significant balances in each category[178]. Capitalization and Financing - As of March 31, 2025, the company had unrestricted cash of $85.7 million and $123.8 million of unlevered REO assets[157]. - The total debt-to-equity ratio was 2.2:1.0 as of March 31, 2025, with a recourse leverage ratio of 0.9:1.0[211]. - The company had secured repurchase facilities with outstanding borrowings of $0.5 billion, with a weighted average borrowing rate of 7.7%[198]. - The total capacity of the secured repurchase facilities was $1.23 billion, with $534.5 million outstanding and $693.4 million in unused capacity as of March 31, 2025[199]. - The company financed $0.8 billion through two CRE CLOs, which accounted for 48.8% of the total loan portfolio principal balance[203]. - The company has $92.7 million in unfunded loan commitments and must manage liquidity needs for interest and principal payments under $1.4 billion of outstanding borrowings[255]. Market Conditions and Challenges - The office property market is facing higher vacancies and slower leasing activity due to remote work arrangements, impacting property values[153]. - The company continues to face challenges from inflation, elevated interest rates, and geopolitical uncertainty, impacting loan repayments and originations[220]. - The Federal Reserve's interest rate adjustments in response to inflation have influenced the company's performance, with rates remaining elevated as of the second half of 2024[260]. - The company is actively exploring additional funding facilities to diversify its financing sources amid market volatility[221]. Cash Flow and Liquidity - Cash and cash equivalents decreased by approximately $14.0 million to $100.4 million as of March 31, 2025[258]. - Cash flows from operating activities decreased cash balances by approximately $5.7 million, primarily due to equity compensation and amortization[259]. - Cash flows from investing activities increased cash balances by approximately $80.1 million, mainly driven by repayments of loans held-for-investment[259]. - The company had unrestricted cash liquidity of $85.7 million, exceeding the required minimum of $30 million[210].

Facility Details - The Facility Amount is set at $250,000,000[10] - The Stated Facility Expiration Date is April 27, 2026[22] - The First Extension Period can extend the expiration date to April 26, 2027, and the Second Extension Period to April 24, 2028[25] Amendment Provisions - The Amendment includes a reaffirmation of the Guaranty by the Guarantor[37] - Seller must pay all reasonable legal fees and expenses related to this Amendment within ten business days of receipt of the invoice[41] - The Original Repurchase Agreement remains in full force and effect except as expressly amended[45] - Seller is required to notify Purchaser of its exercise of the Extension Option 30 to 90 days prior to the Stated Facility Expiration Date[26] - No monetary or material non-monetary Default or Event of Default shall have occurred as of the date notice is given[27] - The Amendment is governed by the laws of the State of New York[43] - Each Seller agrees to pay all reasonable out-of-pocket costs and expenses incurred by Purchaser in connection with this Amendment[46] - The Amendment, Repurchase Agreement, and other Transaction Documents constitute the entire agreement among the parties, superseding all prior agreements[49] - Each provision of the Amendment shall be interpreted to be effective under applicable law, ensuring the validity of the remaining provisions[50] - The Amendment and all covenants, agreements, representations, and warranties shall survive the consummation of the Transaction and remain in effect as long as obligations are outstanding[51] - The Amendment may be executed in counterparts, with electronic signatures having the same legal effect as manual signatures[52] - The headings in the Amendment are for convenience only and do not affect its interpretation[53] - The execution and effectiveness of the Amendment do not limit or impair any rights or remedies of the Purchaser under the Repurchase Agreement[55] - The Amendment is a Transaction Document executed pursuant to the Repurchase Agreement and shall be construed accordingly[53] Parties Involved - The parties involved in the Amendment include GP Commercial CB LLC, GP Commercial CB SL Sub LLC, Citibank, N.A., and Granite Point Mortgage Trust, Inc.[58][59][60]