Granite Point Mortgage Trust(GPMT)2025-02-27 22:07Financial 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].