Core Insights - Granite Point Mortgage Trust Inc. reported a GAAP net loss attributable to common stockholders of $(0.6) million, or $(0.01) per basic weighted average common share, which included a benefit from credit losses of $1.6 million [4] - The company declared a common stock dividend of $0.05 per share and a cash dividend of $0.4375 per share for its Series A preferred stock [4] - The total loan portfolio experienced a net activity of $(109.7) million in unpaid principal balance, with $(72.4) million in loan repayments [4] Financial Performance - Distributable Earnings (Loss) for the quarter was $(18.9) million, or $(0.40) per basic weighted average common share [4] - Distributable Earnings (Loss) Before Realized Gains and Losses was $0.9 million, or $0.02 per basic weighted average common share [4] - The book value per common share was $7.94, which included $(2.82) per common share of total CECL reserve [4] Loan Portfolio and Risk Management - The company carried a 97% floating rate loan portfolio with total loan commitments of $1.8 billion, comprised of over 99% senior loans [4] - The weighted average stabilized loan-to-value (LTV) at origination was 65.0%, with a realized loan portfolio yield of 7.5% [4] - The total CECL reserve stood at $133.6 million, representing 7.4% of total loan portfolio commitments [4] Post Quarter-End Update - In Q4 2025, the company funded approximately $2.3 million on existing loan commitments and received a full loan repayment of $32.7 million [4] - The maturity of the secured credit facility was extended to December 2026, and the financing spread was reduced by 75 basis points [4] - As of November 3, 2025, the company held approximately $80.1 million in unrestricted cash [4]

Financial Performance - For the three months ended September 30, 2025, the company recorded a GAAP net loss per basic common share of $(0.01) and a Distributable Loss of $(0.40) per basic common share[156]. - The company recognized a GAAP net loss attributable to common stockholders of $(0.6) million for the quarter[158]. - For the three months ended September 30, 2025, the GAAP net loss attributable to common stockholders was $(565,000), compared to a loss of $(34,624,000) in the same period of 2024[165]. - Distributable Earnings (Loss) for the nine months ended September 30, 2025, was $(91,916,000), compared to $(45,752,000) for the same period in 2024[165]. - The company’s GAAP net loss attributable to common stockholders was $(0.6) million for Q3 2025, an improvement from $(17.0) million in Q2 2025[244]. Book Value and Capitalization - The book value per share of common stock as of September 30, 2025, was $7.94, which includes $(2.82) per share of total CECL reserves[156]. - The book value per share of common stock as of September 30, 2025, was $7.94, down from $8.47 as of December 31, 2024[166]. - The company's tangible net worth was reported at $0.7 billion, exceeding the required minimum of $0.6 billion[214]. - As of September 30, 2025, the company's capitalization included $1.2 billion of loan-level financing[250]. Loan Portfolio and Credit Losses - The total allowance for credit losses was $133.6 million, approximately 7.4% of total loan commitments of $1.8 billion as of September 30, 2025[158]. - The company ended the quarter with a portfolio of 44 loan investments with an aggregate unpaid principal balance of $1.7 billion and total commitments of $1.8 billion[158]. - The weighted average risk rating of the loan portfolio improved to 2.8 as of September 30, 2025, from 3.1 at December 31, 2024[169]. - The company recorded a benefit from credit losses of $1.6 million in Q3 2025, compared to a provision for credit losses of $(11.0) million in Q2 2025[242]. - The provision for credit losses for the nine months ended September 30, 2025, was $(13.1) million, significantly lower than $(164.2) million in the same period of 2024[248]. Interest Income and Expenses - For the three months ended September 30, 2025, the total interest income was $33.72 million, with a net interest income of $10.296 million[221]. - The average net asset yield for loans held-for-investment was 7.5% for the three months ended September 30, 2025[221]. - Total interest income for the nine months ended September 30, 2025, decreased to $102.7 million, down by $44.2 million from $146.8 million in the same period of 2024[246]. - Total interest expense for the nine months ended September 30, 2025, decreased to $76.3 million, down by $42.2 million from $118.5 million in the same period of 2024[247]. Operating Expenses - Total operating expenses for Q3 2025 were $12.5 million, down from $14.5 million in Q2 2025[243]. - Total operating expenses for the nine months ended September 30, 2025, increased to $41,250,000 from $37,571,000 in 2024, representing an increase of approximately 4.5%[249]. - Compensation and benefits expenses decreased to $4.1 million in Q3 2025 from $5.7 million in Q2 2025[243]. - Compensation and benefits expenses decreased to $15,556,000 in 2025 from $16,083,000 in 2024, a reduction of about 3.3%[249]. Liquidity and Financing - The company carried unrestricted cash of $62.7 million as of September 30, 2025[155]. - The company has $75.6 million in unfunded loan commitments as part of its liquidity needs[258]. - As of September 30, 2025, the company had immediate liquidity sources totaling $62,690,000[254]. - The company is actively exploring additional funding facilities to diversify its financing sources amid market volatility and elevated interest rates[226]. Market Conditions and Risks - The Federal Reserve's interest rate hikes in 2022 and 2023 have influenced the company's performance, with rates remaining elevated despite reductions in late 2024 and 2025[263]. - The company’s loan originations are affected by market demand, with significant disruptions noted due to inflation concerns and geopolitical uncertainty[225]. - The company is subject to counterparty risk and is focused on diversifying lending partners to mitigate this risk[259]. Dividend Practices - The company intends to distribute substantially all taxable income to stockholders to comply with REIT provisions, with distributions dependent on actual results and liquidity[261]. - The board of directors will evaluate dividend practices based on market conditions and distribution requirements to maintain REIT status[258].

Financial Performance - Recognized GAAP net loss attributable to common stockholders of $(0.6) million, or $(0.01) per basic weighted average common share, including a benefit from credit losses of $1.6 million, or $0.03 per basic weighted average common share[5] - Distributable Earnings (Loss) of $(18.9) million or $(0.40) per basic weighted average common share, with Distributable Earnings (Loss) Before Realized Gains and Losses of $0.9 million, or $0.02 per basic weighted average common share[5] - The company reported a net loss attributable to common stockholders of $565,000 in Q3 2025, compared to a net loss of $34.62 million in Q3 2024[15] - Distributable Earnings (Loss) for Q3 2025 was $(18.93) million, reflecting a significant decline from the previous period[16] Loan Portfolio and Credit Losses - Total CECL reserve of $133.6 million, representing 7.4% of total loan portfolio commitments[5] - Carried a 97% floating rate loan portfolio with total loan commitments of $1.8 billion, comprised of over 99% senior loans, and a realized loan portfolio yield of 7.5%[5] - Net loan portfolio activity showed a decrease of $(109.7) million in unpaid principal balance, including $(72.4) million in loan repayments and one loan resolution of $(50.0) million[5] - The provision for credit losses was $(1.64) million in Q3 2025, compared to a benefit of $(27.91) million in Q3 2024[15] Cash and Leverage - Ended the quarter with $62.7 million in unrestricted cash and a Total Leverage Ratio of 1.9x[5] - As of November 3, 2025, carried approximately $80.1 million in unrestricted cash[5] - Extended the maturity of the secured credit facility to December 2026, reducing the financing spread by 75 basis points and decreasing borrowings by $7.5 million[5] Income and Expenses - Total interest income for Q3 2025 was $33.72 million, a decrease of 24% from $44.30 million in Q3 2024[15] - Net interest income increased to $10.30 million in Q3 2025, up from $7.66 million in Q3 2024, representing a 34% increase[15] - Total expenses decreased to $12.46 million in Q3 2025, down from $14.57 million in Q3 2024, a reduction of 14%[15] Dividends and Shareholder Returns - 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[5] - The company declared dividends of $0.05 per common share for Q3 2025, consistent with the previous year[15] - The company aims to maintain its status as a REIT by distributing at least 90% of its taxable income to stockholders[16] Shareholder Metrics - Book value per common share was $7.94, inclusive of $(2.82) per common share of total CECL reserve[5] - Weighted average shares outstanding decreased to 47,394,519 in Q3 2025 from 50,526,492 in Q3 2024[15] Real Estate Operations - The company recorded revenue from real estate owned operations of $3.62 million in Q3 2025, slightly down from $3.79 million in Q3 2024[15]

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](