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(1)

Please see page 5 for Distributable Earnings (Loss) and Distributable Earnings (Loss) Before Realized Gains and Losses definitions and a reconciliation of GAAP to non-GAAP financial information.

(2)

The fully funded loan amount (plus any financing that is pari passu with or senior to such loan), including all contractually provided for future fundings, divided by the as stabilized value (as determined in conformance with USPAP) set forth in the original appraisal. As stabilized value may be based on certain assumptions, such as future construction completion, projected re-tenanting, payment of tenant improvement or leasing commissions allowances or free or abated rent periods, or increased tenant occupancies.

(3)

Provided for illustrative purposes only. Calculations of realized loan portfolio yield are based on a number of assumptions (some or all of which may not occur) and are expressed as monthly equivalent yields that include net origination fees and exit fees and exclude future fundings and any potential or completed loan amendments or modifications. Portfolio yield includes nonaccrual loans.

(4)

REO represents "Real Estate Owned".

(5)

Includes $9.3 million in other assets and liabilities related to leases.

(6)

Borrowings outstanding on repurchase facilities, secured credit facility and CLO’s, less cash, divided by total stockholders’ equity.

GRANITE POINT MORTGAGE TRUST INC.

CONDENSED AND CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

March 31,
2025

December 31,
2024

ASSETS

(unaudited)

Loans held-for-investment

$

1,937,659

$

2,097,375

Allowance for credit losses

(177,282

)

(199,727

)

Loans held-for-investment, net

1,760,377

1,897,648

Cash and cash equivalents

85,744

87,788

Restricted cash

14,684

26,682

Real estate owned, net

114,520

42,815

Accrued interest receivable

7,452

8,668

Other assets

47,468

51,514

Total Assets

$

2,030,245

$

2,115,115

LIABILITIES AND STOCKHOLDERS’ EQUITY

Liabilities

Repurchase facilities

$

534,543

$

597,874

Securitized debt obligations

773,290

788,313

Secured credit facility

86,774

86,774

Dividends payable

6,208

6,238

Other liabilities

24,636

16,699

Total Liabilities

1,425,451

1,495,898

Stockholders’ Equity

7.00% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock, par value $0.01 per share; 11,500,000 shares authorized, and 8,229,500 and 8,229,500 shares issued and outstanding, respectively; liquidation preference $25.00 per share

82

82

Common Stock, par value $0.01 per share; 450,000,000 shares authorized, and 48,389,097 shares and 48,801,690 issued and outstanding, respectively

484

488

Additional paid-in capital

1,194,610

1,195,823

Cumulative earnings

(146,571

)

(139,556

)

Cumulative distributions to stockholders

(443,936

)

(437,745

)

Total Granite Point Mortgage Trust Inc. Stockholders’ Equity

604,669

619,092

Non-controlling interests

125

125

Total Equity

604,794

619,217

Total Liabilities and Stockholders’ Equity

$

2,030,245

$

2,115,115

GRANITE POINT MORTGAGE TRUST INC.

CONDENSED AND CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

(in thousands, except share data)

Three Months Ended

March 31,

2025

2024

Interest Income:

(unaudited)

Loans held-for-investment

$

34,327

$

51,965

Cash and cash equivalents

817

2,090

Total interest income

35,144

54,055

Interest expense:

Repurchase facilities

11,885

20,728

Secured credit facility

2,539

2,689

Securitized debt obligations

12,680

18,115

Total interest expense

27,104

41,532

Net interest income

8,040

12,523

Other income (loss):

Revenue from real estate owned operations

3,094

1,142

Provision for credit losses

(3,770

)

(75,552

)

Total other (loss)

(676

)

(74,410

)

Expenses:

Compensation and benefits

5,771

5,987

Servicing expenses

1,031

1,376

Expenses from real estate owned operations

4,504

2,045

Other operating expenses

3,003

2,829

Total expenses

14,309

12,237

(Loss) income before income taxes

(6,945

)

(74,124

)

(Benefit from) provision for income taxes

70

(1

)

Net (loss) income

(7,015

)

(74,123

)

Dividends on preferred stock

3,600

3,600

Net (loss) income attributable to common stockholders

$

(10,615

)

$

(77,723

)

Basic (loss) earnings per weighted average common share

$

(0.22

)

$

(1.53

)

Diluted (loss) earnings per weighted average common share

$

(0.22

)

$

(1.53

)

Dividends declared per common share

$

0.05

$

0.15

Weighted average number of shares of common stock outstanding:

Basic

48,668,667

50,744,532

Diluted

48,668,667

50,744,532

Net (loss) income attributable to common stockholders

$

(10,615

)

$

(77,723

)

Comprehensive (loss) income

$

(10,615

)

$

(77,723

)

GRANITE POINT MORTGAGE TRUST INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION

(dollars in thousands, except share data) (unaudited)

Three Months Ended

March 31,

2025

Reconciliation of GAAP net (loss) income to Distributable Earnings (Loss)⁽¹⁾:

GAAP net (loss) income attributable to common stockholders

$

(10,615

)

Adjustments:

Provision for credit losses

3,770

Non-cash equity compensation

2,410

Depreciation and amortization on real estate owned

1,397

Distributable Earnings (Loss) Before Realized Gains and Losses

$

(3,038

)

Write-offs

(24,638

)

Distributable Earnings (Loss)

$

(27,676

)

Distributable Earnings (Loss) Before Realized Gains and Losses per basic common share

$

(0.06

)

Distributable Earnings (Loss) Before Realized Gains and Losses per diluted common share

$

(0.06

)

Distributable Earnings (Loss) per basic common share

$

(0.57

)

Distributable Earnings (Loss) per diluted common share

$

(0.57

)

Basic weighted average common shares

48,668,667

Diluted weighted average common shares

48,668,667

(1) Beginning with our Annual Report on Form 10-K for the year ended December 31, 2024, and for all subsequent reporting periods ending on or after December 31, 2024, we have elected to present Distributable Earnings (Loss), a non-GAAP measure, as a supplemental method of evaluating our operating performance. In order to maintain our status as a REIT, we are required to distribute at least 90% of our taxable income to stockholders, subject to certain distribution requirements. Distributable Earnings (Loss) is intended to over time serve as a general, though imperfect, proxy for our taxable income. As such, Distributable Earnings (Loss) is considered a key indicator of our ability to generate sufficient income to pay dividends on our common stock, which is the primary focus of income-oriented investors who comprise a meaningful segment of our stockholder base. We believe providing Distributable Earnings (Loss) on a supplemental basis to our net income (loss) and cash flow from operating activities, as determined in accordance with GAAP, is helpful to stockholders in assessing the overall operating performance of our business.

For reporting purposes, we define Distributable Earnings (Loss) as net income (loss) attributable to our stockholders, computed in accordance with GAAP, excluding: (i) non-cash equity compensation expenses; (ii) depreciation and amortization; (iii) any unrealized gains (losses) or other similar non-cash items that are included in net income (loss) for the applicable reporting period (regardless of whether such items are included in other comprehensive income or in net income (loss) for such period); and (iv) certain non-cash items and one-time expenses. Distributable Earnings (Loss) may also be adjusted from time to time for reporting purposes to exclude one-time events pursuant to changes in GAAP and certain other material non-cash income or expense items approved by a majority of our independent directors. The exclusion of depreciation and amortization from the calculation of Distributable Earnings (Loss) only applies to debt investments related to real estate to the extent we foreclose upon the property or properties underlying such debt investments.

While Distributable Earnings (Loss) excludes the impact of the unrealized non-cash current provision for credit losses, we expect to only recognize such potential credit losses in Distributable Earnings (Loss) if and when such amounts are deemed non-recoverable. This is generally at the time a loan is repaid, or in the case of foreclosure, when the underlying asset is sold, but nonrecoverability may also be concluded if, in our determination, it is nearly certain that all amounts due will not be collected. The realized loss amount reflected in Distributable Earnings (Loss) will equal the difference between the cash received, or expected to be received, and the carrying value of the asset, and is reflective of our economic experience as it relates to the ultimate realization of the loan. During the three months ended March 31, 2025, we recorded provision for credit losses of $3.8 million, which has been excluded from Distributable Earnings (Loss), consistent with other unrealized gains (losses) and other non-cash items pursuant to our existing policy for reporting Distributable earnings (Loss) referenced above. During the three months ended March 31, 2025, we recorded $1.4 million, in depreciation and amortization on REO and related intangibles, which has been excluded from Distributable Earnings (loss) consistent with other unrealized gains (losses) and other non-cash items pursuant to our existing policy for reporting Distributable Earnings (Loss) referenced above.

Distributable Earnings (Loss) does not represent Net (loss) income attributable to common stockholders or cash flow from operating activities and should not be considered as an alternative to GAAP Net (loss) income attributable to common stockholders, or an indication of our GAAP cash flows from operations, a measure of our liquidity, or an indication of funds available for our cash needs. In addition, our methodology for calculating Distributable Earnings (Loss) may differ from the methodologies employed by other companies to calculate the same or similar supplemental performance measures, and, accordingly, our reported Distributable Earnings (Loss) may not be comparable to the Distributable Earnings (loss) reported by other companies.

We believe it is useful to our stockholders to present Distributable Earnings (Loss) Before Realized Gains and Losses, a non-GAAP measure, to reflect our run-rate operating results as (i) our operating results are mainly comprised of net interest income earned on our loan investments net of our operating expenses, which comprise our ongoing operations, (ii) it helps our stockholders in assessing the overall run-rate operating performance of our business, and (iii) it has been a useful reference related to our common dividend as it is one of the factors we and our Board of Directors consider when declaring the dividend. We believe that our stockholders use Distributable Earnings (Loss) and Distributable Earnings (Loss) Before Realized Gains and Losses, or a comparable supplemental performance measure, to evaluate and compare the performance of our company and our peers.