```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]

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]

Core Viewpoint - The article revisits Granite Point Mortgage Trust Inc. (NYSE: GPMT) after a 1.5-year hiatus, focusing on the preferred shares and their investment potential [1]. Company Overview - Granite Point Mortgage Trust Inc. is highlighted as a company of interest for investors, particularly in the context of preferred shares [1]. Investment Strategy - The investment group European Small Cap Ideas emphasizes high-quality small-cap investment opportunities, focusing on capital gains and dividend income for continuous cash flow [1]. - The group offers two model portfolios: the European Small Cap Ideas portfolio and the European REIT Portfolio, along with weekly updates and educational content [1]. Analyst Position - The analyst has a beneficial long position in GPMT.PR.A shares, indicating a personal investment interest in the company [1].

Financial Performance - For the year ended December 31, 2024, the company recorded a GAAP net loss attributable to common stockholders of $(221.5) million, or $(4.39) per basic common share[261]. - The company reported a net loss attributable to common stockholders of $221,452,000 for 2024, compared to a loss of $77,649,000 in 2023, representing a 184.5% increase in losses[413]. - The basic loss per share for 2024 was $4.39, compared to a loss of $1.50 per share in 2023[413]. - The company reported a net loss for the year ended December 31, 2024, of $207.051 million, compared to a net loss of $63.198 million in 2023, indicating a significant increase in losses[418]. - Total interest income for the year ended December 31, 2024, was $185.6 million, down from $263.7 million in 2023[311]. - Total interest income decreased to $185.6 million in 2024 from $263.7 million in 2023, mainly due to a higher average balance of nonaccrual loans[331]. - Total operating expenses rose to $50.1 million in 2024 from $43.3 million in 2023, with an increase in expenses from real estate owned operations due to acquisitions[335]. - Total expenses increased to $50,073,000 in 2024, up 15.6% from $43,290,000 in 2023[413]. - Provision for credit losses increased to $(201.4) million in 2024 from $(104.8) million in 2023, driven by an increase in the allowance for certain collateral-dependent loans[333]. - Provision for credit losses significantly rose to $201,412,000 in 2024, compared to $104,807,000 in 2023, indicating a 92.2% increase[413]. Dividends and Stockholder Equity - The company declared a cash dividend of $0.30 per share of common stock, totaling $16.1 million, compared to $0.80 per share in 2023[263]. - The company declared a total cash dividend of $0.30 per share for 2024, with $0.15 classified as ordinary dividends and $0.15 as qualified dividends[342]. - Stockholders' equity decreased to $619.1 million in 2024 from $858.9 million in 2023, a decline of about 28.0%[408]. - The total stockholders' equity as of December 31, 2024, was $619,217,000, down from $859,023,000 in 2023, reflecting a decline of 27.9%[415]. - The Company’s dividends payable decreased to $6.2 million in 2024 from $14.1 million in 2023, a reduction of about 56.0%[408]. Loan Portfolio and Credit Risk - The company maintained a portfolio of 54 loan investments with an aggregate unpaid principal balance of $2.1 billion and total commitments of $2.2 billion[261]. - The allowance for credit losses increased by $63.9 million, totaling $201.0 million, approximately 9.2% of total loan commitments of $2.2 billion[261]. - The loan portfolio consisted of 54 investments, with total loan commitments of $2.2 billion and an unpaid principal balance of $2.1 billion as of December 31, 2024[273]. - The weighted average risk rating of the loan portfolio increased to 3.1 as of December 31, 2024, compared to 2.8 at the end of 2023[273]. - The company actively manages loan investments and assesses credit risk quarterly, focusing on the performance of underlying collateral properties[283]. - The allowance for credit losses is reported at $199.7 million, reflecting the company's proactive risk management strategy[280]. - The company is exposed to credit risk due to the performance of its borrowers, which may be adversely affected by rising interest rates and inflation[368]. - The company has maintained its commitment to evaluating and adjusting its credit loss estimates based on macroeconomic conditions and loan-specific factors[401]. Financing and Debt - The company extended the Morgan Stanley financing facility to June 28, 2025, with a maximum borrowing capacity adjusted to $250 million[261]. - The company reported a total debt-to-equity ratio of 2.2:1.0 and a recourse leverage ratio of 1.0:1.0 as of December 31, 2024, reflecting an increase due to higher CECL reserves[306]. - The debt-to-equity ratio as of December 31, 2024, was 2.2:1.0, indicating a significant leverage position[339]. - As of December 31, 2024, the company had outstanding $0.8 billion in securitized debt obligations with a weighted average borrowing rate of 6.6%[338]. - The company had $8.0 million in restricted cash as of December 31, 2024, included in the calculations of collateral assets[302]. - The company had $1.5 billion in loan-level financing, which includes $0.6 billion in secured repurchase agreements and $0.8 billion in CRE CLO securitizations[344]. Cash Flow and Liquidity - The company’s cash and cash equivalents decreased by approximately $84.7 million to $114.5 million for the year ended December 31, 2024[355]. - Cash flows from operating activities increased cash balances by approximately $8.8 million, while financing activities decreased cash balances by approximately $528.7 million[359]. - As of December 31, 2024, the company had immediate liquidity sources totaling $87.8 million, primarily from cash and cash equivalents[349]. - The company has $90.6 million in unfunded loan commitments and plans to manage liquidity needs through various strategies, including potential asset sales[352]. - Cash, cash equivalents, and restricted cash at the end of the period were $114.470 million, down from $199.216 million at the end of 2023, a decrease of approximately 42.5%[418]. Market Conditions and Strategy - The company continues to monitor factors affecting its operating results, including interest rates, credit performance, and market conditions[315]. - The Federal Reserve raised its benchmark overnight interest rates multiple times in 2022 and 2023, impacting the company's interest expense and potentially leading to loan non-performance[372]. - The current macroeconomic environment has led to a decrease in prepayment rates and an increase in loan extension options, potentially impacting operational results[388]. - The company employs a long-term, fundamental value-oriented investment strategy, focusing on a diversified portfolio across property types and geographies[369]. - The company monitors market conditions and capital markets to inform decisions on capital raising, which is critical due to its REIT status[382]. Real Estate Owned (REO) and Asset Management - The company’s real estate owned, net increased to $42.8 million in 2024 from $16.9 million in 2023, reflecting a growth of approximately 153.3%[408]. - The company did not record any impairments of real estate for the years ended December 31, 2024, and 2023, indicating stable asset performance[446]. - As of December 31, 2024, real estate owned (REO) and related acquired assets are depreciated over useful lives ranging from 15 to 39 years[444].

Financial Data and Key Metrics Changes - For Q4 2024, the company reported a GAAP net loss of $42.4 million or negative $0.86 per basic common share, which includes a provision for credit losses of $37.2 million or negative $0.75 per basic common share [30] - The attributable loss for the quarter was $98.2 million or negative $1.98 per basic common share, including write-offs of $95.2 million or negative $1.92 per basic common share [31] - The book value at December 31 was $8.47 per common share, representing a decline of about $0.78 per share from Q3 [32] Business Line Data and Key Metrics Changes - The total loan portfolio commitments at the end of Q4 were $2.2 billion, with an outstanding principal balance of $2.1 billion [17] - The loan portfolio yield for Q4 was approximately 6.6% net of the impact of nonaccrual loans, estimated to be about 214 basis points [18] - The company resolved nine loans totaling about $344 million during 2024, with significant activity in the third and fourth quarters [11] Market Data and Key Metrics Changes - The commercial real estate market showed improved liquidity in the second half of 2024, with a consensus that real estate prices have bottomed out [10] - Liquidity in the floating rate transitional middle market sector remains less robust, particularly among regional and community banks [11] Company Strategy and Development Direction - The company aims to optimize economic outcomes through a balanced portfolio management approach, focusing on timing, profitability, and liquidity [13] - There is an expectation to return to new originations in the latter part of 2025, with a focus on growing the portfolio and improving run rate profitability [16] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating environment remains challenging for the commercial real estate industry, but liquidity and transaction volume are expected to improve in 2025 [15] - The company anticipates that ongoing resolutions of nonperforming loans will exceed potential future credit events, leading to improved profitability over time [15] Other Important Information - The company repurchased about 2.4 million shares during 2024, reflecting confidence in the stock's undervaluation [14] - The aggregate CECL reserve at December 31 was about $201 million, down from $259 million in the previous quarter [32] Q&A Session Summary Question: Details on new five-rated assets and comfort on current ratings - Management expressed confidence in the current risk rankings and reserves, noting that the Louisville Student Housing Property was downgraded due to a lower-than-expected arbitration award [40][41] Question: Need for liquidity and rationale for leverage - Management indicated that maintaining liquidity is a priority, with no immediate targeted needs but a desire for flexibility [44] Question: Opportunities in the CLO market - Management acknowledged potential refinancing opportunities in the CLO market but indicated that such actions would not occur in the immediate term [50][52] Question: Concerns about asset management and credit downgrades - Management highlighted ongoing asset management efforts and the complexity of individual loan situations, particularly regarding the Kentucky asset [62][64] Question: Dividend policy and capital management strategy - Management discussed the decision to maintain the dividend while working towards covering it through resolutions and prepayments, emphasizing the importance of preserving valuable liabilities [72][74]