Granite Point Mortgage Trust(US:GPMT)2024-03-01 21:06Financial Performance - For the year ended December 31, 2023, the company recorded a GAAP net loss attributable to common stockholders of $(77.6) million, or $(1.50) per basic share[265]. - GAAP net loss attributable to common stockholders for 2023 was $(77,649) thousand, compared to $(55,327) thousand in 2022[276]. - The company reported a net loss attributable to common stockholders of $77,649,000 for 2023, compared to a loss of $55,327,000 in 2022[437]. - The total comprehensive loss for 2023 was $77,649,000, compared to a comprehensive loss of $55,327,000 in 2022[437]. - The net loss for the year ended December 31, 2023, was $63.198 million, compared to a net loss of $40.825 million in 2022[442]. - Basic loss per share for 2023 was $1.50, worsening from a loss of $1.04 per share in 2022[437]. - Total operating expenses increased to $43.3 million in 2023 from $36.7 million in 2022, mainly due to the acquisition of REO[355]. Dividends - The company declared a cash dividend of $0.80 per share of common stock, totaling $42.7 million, compared to $0.95 per share in 2022[268]. - Total cash dividends declared for 2023 amounted to $0.80 per share, a decrease from $0.95 per share in 2022[363][364]. - Dividends declared for the year ended December 31, 2023, totaled $0.80 per share, in compliance with REIT distribution requirements[361]. Loan Portfolio - The company maintained a portfolio of 73 loan investments with an aggregate unpaid principal balance of $2.7 billion and total commitments of $2.9 billion[265]. - The number of loans in the portfolio as of December 31, 2023, was 73[284]. - The company has a total of 73 loans in its portfolio, with an unpaid principal balance of $2,727.2 million as of December 31, 2023[296]. - The company’s multifamily loans accounted for 80.0% of the total portfolio, indicating a strong focus on this sector[286]. - The company holds a diversified loan portfolio across multiple states, including Illinois, New York, and California, with property types such as multifamily, office, and mixed-use[285]. Credit Losses - The allowance for credit losses increased by $50.5 million, totaling $137.1 million, which is approximately 4.7% of total loan commitments of $2.9 billion[265]. - The provision for credit losses was $(104.8) million in 2023, up from $(69.3) million in 2022, attributed to a deteriorating macroeconomic outlook affecting collateral-dependent loans[352]. - The allowance for credit losses (ACL) increased to $134.7 million in 2023 from $82.3 million in 2022, representing a rise of approximately 64%[424]. - As of December 31, 2023, the company had five loans with a risk rating of "5" totaling an aggregate principal balance of $323.9 million, with an allowance for credit losses of $89.6 million[297]. Interest Income and Expense - The total interest income for the year ended December 31, 2023, was $263.7 million, with a net interest income of $82.0 million, reflecting a net interest rate spread of 0.3%[330]. - Total interest income increased to $263.7 million in 2023 from $210.9 million in 2022, primarily due to rising short-term interest rates[350]. - Total interest expense rose to $181.7 million in 2023 from $126.1 million in 2022, driven by higher short-term interest rates and increased costs from secured credit facilities[351]. - The cash paid for interest was $182.569 million in 2023, an increase from $123.371 million in 2022[442]. Liquidity and Capitalization - The company maintained unrestricted cash liquidity of $188.4 million, exceeding the required minimum of $30.0 million and 5.0% of recourse indebtedness[325]. - As of December 31, 2023, the company had immediate liquidity sources totaling $188.37 million[370]. - The tangible net worth was reported at $1.0 billion, surpassing the required minimum of $816.9 million[325]. - The debt-to-equity ratio as of December 31, 2023, was 2.1:1.0[359]. - The debt-to-equity ratio improved from 2.3:1.0 in 2022 to 2.1:1.0 in 2023, primarily due to a reduction in outstanding debt[367]. Market Conditions and Risks - The company faced significant disruptions in the commercial real estate sector due to investor concerns over inflation, rising interest rates, and geopolitical uncertainty, impacting loan repayments and originations[335]. - Rising interest rates and inflation have led to increased costs and decreased availability of capital, affecting borrowers' ability to service debt obligations[408]. - Credit risk remains a concern, with potential unanticipated losses due to market fluctuations and economic conditions affecting the performance of collateral properties[338]. - The current macroeconomic environment has resulted in decreased prepayment rates and increased loan extension options, potentially impacting operational results[412]. Asset Management and Strategy - The company actively manages loan investments, assessing credit risk quarterly and maintaining strong relationships with borrowers to maximize portfolio performance[294]. - The company aims to construct a well-diversified investment portfolio across property types, geographies, and sponsors[394]. - The company has implemented a strategy of loan modifications to adapt to changing market conditions and borrower needs[291]. - The company actively explores additional funding facilities to diversify its financing sources amid market volatility and uncertainty[336]. Financial Position - Total assets decreased to $2.85 billion in 2023 from $3.45 billion in 2022, marking a decline of about 17%[433]. - Total liabilities decreased to $1.99 billion in 2023 from $2.47 billion in 2022, a reduction of approximately 20%[433]. - The total stockholders' equity decreased to $859 million in 2023 from $983.7 million in 2022, a decline of approximately 13%[433]. - The company had $1.0 billion in securitized debt obligations with a weighted average borrowing rate of 7.2% as of December 31, 2023[358].