Q4 and Full Year 2024 Earnings Supplemental February 14, 2025 Legal Disclosures This presentation contains, or incorporates by reference, not only historical information, but also forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve numerous risks and uncertainties. Our actual results may differ from our beliefs, expectations, estimates, projections and illustrations and, consequently, you should not rely on these forward-l ...

Company Performance - Granite Point Mortgage Trust (GPMT) reported a quarterly loss of $1.98 per share, which was worse than the Zacks Consensus Estimate of a loss of $1.58, and a significant decline from earnings of $0.14 per share a year ago, indicating a negative earnings surprise of -25.32% [1] - The company posted revenues of $7.57 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 4.17%, and a decrease from year-ago revenues of $17.33 million [2] - Over the last four quarters, GPMT has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Market Comparison - GPMT shares have increased approximately 10% since the beginning of the year, outperforming the S&P 500's gain of 2.9% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.88 on revenues of $8.9 million, and for the current fiscal year, it is -$2.58 on revenues of $39.1 million [7] - The estimate revisions trend for GPMT is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the shares are expected to perform in line with the market in the near future [6] Industry Context - The REIT and Equity Trust industry, to which GPMT belongs, is currently ranked in the bottom 46% of over 250 Zacks industries, indicating potential challenges ahead [8]

Financial Performance - Granite Point Mortgage Trust Inc. reported a GAAP net loss attributable to common stockholders of $(221.5) million, or $(4.39) per basic common share for the full year 2024[6]. - The company recognized distributable earnings (loss) of $(143.9) million, or $(2.85) per basic share, including write-offs of $(146.3) million for the full year 2024[6]. - The company recorded a net loss attributable to common stockholders of $42.44 million for the three months ended December 31, 2024, compared to a net loss of $17.07 million for the same period in 2023[20]. - Distributable Earnings (Loss) for the three months ended December 31, 2024, was $(98.16) million, reflecting a significant decline from $(6.41) million in the prior year[21]. - Basic (loss) earnings per weighted average common share for the three months ended December 31, 2024, was $(0.86), compared to $(0.33) for the same period in 2023[20]. Loan Portfolio and Credit Losses - The net loan portfolio activity for the full year 2024 showed a decrease of $(620.8) million in unpaid principal balance, with twelve full loan repayments totaling $(414.7) million[6]. - Granite Point resolved nonperforming loans totaling over $340 million in 2024, with additional resolutions expected in 2025[3]. - The provision for credit losses for the twelve months ended December 31, 2024, was $201.41 million, compared to $104.81 million for the same period in 2023, indicating a substantial increase in expected credit losses[21]. Assets and Cash Position - The total assets of Granite Point Mortgage Trust Inc. decreased to $2.115 billion as of December 31, 2024, down from $2.847 billion in 2023[19]. - The company ended the quarter with $87.8 million in unrestricted cash and a total leverage of 2.2x, with no corporate debt maturities remaining[6]. Shareholder Returns and Dividends - The company repurchased approximately 2.4 million common shares at an average price of $3.16 per share, totaling $7.6 million, resulting in book value accretion of approximately $0.28 per share[6]. - The company declared dividends of $0.05 per common share for the three months ended December 31, 2024, down from $0.20 per share in the same period of 2023[20]. Income and Expenses - For the three months ended December 31, 2024, Granite Point Mortgage Trust Inc. reported total interest income of $38.72 million, a decrease of 37.0% from $61.50 million in the same period of 2023[20]. - Total expenses for the three months ended December 31, 2024, were $12.50 million, an increase from $10.39 million in the same period of 2023[20]. Valuation and Metrics - The book value per common share was reported at $8.47, inclusive of $(4.12) per common share of total CECL reserve[6]. - Granite Point's loan portfolio carried a weighted average stabilized loan-to-value (LTV) ratio at origination of 64.4% and a realized loan portfolio yield of 6.6%[6]. - The weighted average number of basic common shares outstanding for the three months ended December 31, 2024, was 49,492,595, a decrease from 51,156,015 in the same period of 2023[20]. Non-GAAP Measures - Granite Point Mortgage Trust Inc. has adopted Distributable Earnings (Loss) as a non-GAAP measure to evaluate operating performance, which is intended to serve as a proxy for taxable income[21].

Group 1 - Granite Point Mortgage Trust (NYSE: GPMT) has experienced a challenging year, with its common equity declining by 36% [1] - The mortgage REIT primarily holds a portfolio of commercial property-backed loans, historically focusing on office properties [1] - The equity market plays a significant role in wealth creation or destruction over the long term, with daily price fluctuations contributing to this dynamic [1] Group 2 - Pacifica Yield aims to achieve long-term wealth creation by focusing on undervalued, high-growth companies, high-dividend stocks, REITs, and green energy firms [1]

Granite Point Mortgage Trust (GPMT) came out with a quarterly loss of $0.04 per share versus the Zacks Consensus Estimate of a loss of $0.96. This compares to earnings of $0.18 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 95.83%. A quarter ago, it was expected that this real estate investment trust would post a loss of $0.08 per share when it actually produced a loss of $0.05, delivering a surprise of 37.50%.Over the last f ...

Financial Performance - GAAP net loss attributable to common stockholders for Q3 2024 was $(34.6) million, or $(0.69) per basic share[103]. - Distributable loss to common stockholders for Q3 2024 was $(38.0) million, or $(0.75) per basic share, including $(44.6) million in write-offs[103]. - GAAP net loss attributable to common stockholders for Q3 2024 was $34.6 million, compared to a loss of $24.5 million in Q3 2023[107]. - Distributable loss earnings for Q3 2024 were $38.0 million, significantly higher than a loss of $7.3 million in Q3 2023[107]. - The book value per share of common stock decreased to $9.25 as of September 30, 2024, down from $12.91 at December 31, 2023[108]. - Total interest income for the quarter was $66,687 thousand, compared to $202,232 thousand for the nine months ended September 30, 2023[1]. - Net interest income for the nine months ended September 30, 2024, was $28.3 million, down from $64.7 million for the same period in 2023[158]. Loan Portfolio and Credit Losses - Total allowance for credit losses decreased by $(7.9) million, totaling $259.0 million, approximately 10.5% of total loan commitments of $2.5 billion[103]. - The company recorded a provision for credit losses of $(27.9) million for Q3 2024, which was excluded from Distributable Earnings[105]. - The weighted average risk rating of the loan portfolio increased to 3.1 from 2.8 at December 31, 2023[111]. - Nine loans with a risk rating of "5" had an aggregate principal balance of $508.5 million, with an allowance for credit losses of $200.3 million[123]. - Provision for credit losses for Q3 2024 was $(27.9) million compared to $(60.8) million in Q2 2024, reflecting a smaller increase in the allowance for certain loans[154]. - The provision for credit losses for the nine months ended September 30, 2024, was $(164.2) million compared to $(83.2) million in 2023, driven by an increase in the allowance for certain loans[161]. Operational Metrics - The company maintained a portfolio of 62 loan investments with an aggregate unpaid principal balance of $2.3 billion and total commitments of $2.5 billion[103]. - The company funded $9.8 million under existing loan commitments during Q3 2024[111]. - Total loan activity for Q3 2024 resulted in net reductions of $274.8 million in unpaid principal balance, compared to $187.6 million in Q3 2023[110]. - The company achieved a 5.50% increase in senior loans for the latest quarter, reflecting strong demand[115]. - Revenue from REO operations increased to $3.8 million in Q3 2024 from $1.1 million in Q2 2024, attributed to the first full quarter of activity from a recent acquisition[155]. Liquidity and Capitalization - At September 30, 2024, the company had unrestricted cash of $113.5 million and $53.6 million of unlevered REO assets[103]. - The company maintained unrestricted cash liquidity of $113,500,000, exceeding the required minimum of $30,000,000[134]. - The total debt-to-equity ratio was 2.2:1.0 as of September 30, 2024, reflecting an increase from 2.1:1.0 as of December 31, 2023[137]. - The company had cash and cash equivalents of $113.5 million as of September 30, 2024, with no approved but unused borrowing capacity[167]. - The debt-to-equity ratio improved from 2.5:1.0 to 2.2:1.0 between June 30, 2024, and September 30, 2024, primarily due to a reduction in total outstanding debt[165]. Market Conditions and Risks - The office property market is facing higher vacancies and slower leasing activity due to remote work arrangements, impacting borrowers' performance[101]. - Recent macroeconomic challenges, including inflation and high interest rates, have adversely affected borrowers and the overall economy, impacting the company's operations[176]. - The Federal Reserve's interest rate increases have raised the company's interest expense, which may not be fully offset by increases in interest income[178]. - The company is exposed to risks related to borrower non-performance, particularly if interest rates rise significantly, potentially impacting cash flows[182]. - Liquidity risk is associated with financing longer-maturity investments with shorter-term borrowings, which may lead to adverse changes in liquidity if collateral values decrease[186]. Future Outlook and Strategy - Overall, the company is optimistic about future performance, projecting a steady increase in loan demand across various sectors[115]. - The company is focusing on market expansion, particularly in Texas and California, where growth rates are above 3%[115]. - The company intends to distribute substantially all of its taxable income to stockholders to comply with REIT provisions, with distributions subject to board discretion[172]. - The company actively explores additional funding facilities to diversify financing sources amid market volatility and high interest rates[1]. - The company aims to mitigate credit risk by diversifying its investment portfolio across geographical regions and property types[1].

Granite Point Mortgage Trust Inc. Reports Third Quarter 2024 Financial Results and Post Quarter-End Update NEW YORK, November 6, 2024 – Granite Point Mortgage Trust Inc. (NYSE: GPMT) ("GPMT," "Granite Point" or the "Company") today announced its financial results for the quarter ending September 30, 2024, and provided an update on its activities subsequent to quarter-end. An earnings supplemental containing third quarter 2024 financial results can be viewed at www.gpmtreit.com. "Our third quarter results ar ...

Mortgage rates have increased after declining since the announcement of rate cuts. The average 30-year fixed mortgage rate rose to its highest level since the week ending Aug. 9 at 6.52%, according to the Mortgage Bankers Association survey. This is the third consecutive week that mortgage rates have risen. Mortgage rates are usually linked to movement in treasury yields. Specifically, the 10-year Treasury is seen as the biggest influence on mortgage rates, and yields for the 10-year have increased in recen ...

Financial Data and Key Metrics Changes - The company reported a GAAP net loss of $66.7 million or $1.31 per basic share for Q2 2024, which includes a provision for credit losses of $60.8 million or $1.19 per share [23] - Distributable loss for the quarter was $9.1 million or $0.18 per share, reflecting loan write-offs of $6.6 million or $0.13 per share and a decline in net interest income mainly driven by non-accrual loans [23] - Book value at June 30 was $9.84 per common share, a decline of about $1.30 per share from Q1, primarily due to loan loss provisions [23] Business Line Data and Key Metrics Changes - The loan portfolio commitments totaled $2.7 billion with an outstanding principal balance of about $2.6 billion, and about $118 million of future fundings, accounting for only about 4% of total commitments [21] - The realized loan portfolio yield for Q2 was about 7%, net of the impact of non-accrual loans, which was estimated to be approximately 229 basis points for the three months ended June 30 [21] Market Data and Key Metrics Changes - The commercial real estate market has shown signs of improvement with increased transaction activity and liquidity returning to transitional assets [6][15] - The company has visibility on approximately $200 million to $300 million of more loan resolutions expected by the end of 2024, indicating a potential recovery in the market [8] Company Strategy and Development Direction - The company is focused on proactive asset management and liquidity management while navigating through the current credit cycle [12] - A reduction in the quarterly common dividend to $0.05 per share was made to protect investors' capital considering the challenging credit environment [12] - The company intends to remain opportunistic regarding share repurchases, having repurchased about 1.5 million common shares at a deep discount during the second quarter [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for the Fed to begin reducing short-term rates, which could contribute to the recovery of the commercial real estate market [6][14] - The company anticipates that the run rate profitability will improve in the coming quarters as progress is made on resolving non-accrual loans [25] - Management acknowledged the ongoing challenges in the commercial real estate market but noted a slower pace of credit migration within the portfolio [11] Other Important Information - The CECL reserve at quarter end was about $267 million or $5.27 per share, representing 9.7% of portfolio commitments, an increase from the previous quarter [26] - The company ended the quarter with about $86 million of unrestricted cash, and total leverage increased modestly to 2.5 times in Q2 compared to 2.3 times in Q1 [27] Q&A Session Summary Question: Outlook on loan portfolio and distributable EPS - Management indicated that it is difficult to predict where the loan portfolio might bottom out, but resolutions will have a positive impact on run rate profitability [30] Question: Realized losses and impact on distributable EPS - Management confirmed an anticipation of over $100 million in write-offs over the next couple of quarters, which could impact distributable EPS [31] Question: Transparency around property pricing and loan resolutions - Management expressed confidence in resolving loans at or near the marks due to improving transparency in property pricing [34] Question: Current risk ratings and potential new problem assets - Management is comfortable with current risk ratings but remains cautious about potential new problem assets [35][36] Question: Financing on non-accrual loans - Management explained that financing varies by asset and that they intend to finance REO assets to increase liquidity [39] Question: Difference between non-accruals and collateral dependent loans - Management clarified that the difference is likely due to carrying value under non-accruals excluding reserves [42]

GPMT IR juvaida khatun PROPERTY TYPE(2) Industrial, 4.6% 0ther, 3.5% Hotel, 7.2% Retail, 9.8% Office, 43.1% Multifamily, 31.8% Borrower defaults are troublesome for mortgage REIT's for two reasons. First, it obviously hurts cash flow in the short term, which worsens dividend coverage, and second, in the case of distressed properties, it poses a significant risk of a loss of capital as the REIT may not be able to resel the foreclosed building for more than th outstanding loan balance and consequently may boo ...