In This Article:
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Total Loan Portfolio Commitments: $2 billion.
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Outstanding Principal Balance: $1.9 billion.
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Future Fundings: $93 million, about 5% of total commitments.
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Weighted Average Stabilized LTV: 64% at origination.
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Realized Loan Portfolio Yield: 6.8% for Q1; 8.5% excluding non-accrual loans.
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Loan Repayments, Paydowns, and Resolutions: $172 million in Q1.
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Net Loan Portfolio Reduction: $161 million.
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GAAP Net Loss: $10.6 million, or negative $0.22 per basic common share.
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Distributable Loss: $27.7 million, or negative $0.57 per basic common share.
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Book Value: $8.24 per common share as of March 31.
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CECL Reserve: $180 million, or $3.72 per common share.
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Unrestricted Cash: $86 million at quarter end.
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Total Leverage: 2.2 times.
Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Granite Point Mortgage Trust Inc (NYSE:GPMT) successfully resolved two non-accrual loans totaling about $97 million in UPB during the first quarter.
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The company repurchased approximately 900,000 of its common shares, indicating confidence in its valuation.
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GPMT extended all three of its repurchase facilities for approximately one year, maintaining stable financing relationships.
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The loan portfolio's weighted average risk rating improved slightly to 3.0 with no new negative credit migration during the quarter.
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The company anticipates returning to new loan originations later in 2025, which could enhance profitability.
Negative Points
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GPMT reported a GAAP net loss of $10.6 million for the first quarter, or negative $0.22 per basic common share.
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The company faced a distributable loss of $27.7 million, including significant write-offs related to non-accrual loan resolutions.
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The book value per common share declined by about $0.23 from the previous quarter.
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There is ongoing uncertainty in the commercial real estate market due to recent tariff announcements and potential recession concerns.
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GPMT has three remaining non-accrual loans rated 5 with a balance of about $223 million, indicating ongoing credit challenges.
Q & A Highlights
Q: You mentioned potentially starting originations back up in the second half of the year. How do you balance accelerating the pace of buyback versus originating new loans given the current discount to book? A: John Taylor, President and CEO, explained that the company is currently focused on preserving liquidity and has been directing available liquidity towards stock buybacks. They have authorization for further buybacks and intend to balance this with new originations later in the year.