On November 7, 2023, Granite Point Mortgage Trust Inc. (GPMT, Financial) released its financial results for the third quarter ending September 30, 2023. Despite the broader challenges in the real estate market, GPMT's President and CEO Jack Taylor expressed satisfaction with the company's ability to progress on business priorities through proactive portfolio and liabilities management.
Financial Performance and Challenges
For the third quarter, GPMT recognized a GAAP Net Loss of $(24.5) million, or $(0.48) per basic share, which included a significant provision for credit losses amounting to $(31.0) million. The company generated pre-loss Distributable Earnings of $9.5 million, or $0.18 per basic share, but reported a Distributable Loss of $(7.3) million after accounting for a loan write-off of $(16.8) million. The book value per common share stood at $13.28 as of September 30, 2023, reflecting a total CECL reserve of $(2.89) per common share.
Financial Achievements and Liquidity Position
Granite Point declared and paid dividends of $0.20 per common share and $0.4375 per share of its Series A preferred stock during the quarter. The company also funded $20.7 million in loans, including prior commitments and an upsize, and realized $177.5 million from loan repayments and other transactions. Notably, GPMT ended the quarter with over $257 million in cash on hand and a total leverage ratio of 2.2x.
Balance Sheet and Income Statement Highlights
The balance sheet as of September 30, 2023, showed net loans held-for-investment at approximately $2.76 billion, with total assets amounting to $3.13 billion. The company's liabilities, including repurchase facilities and securitized debt obligations, totaled approximately $2.24 billion. The income statement for the three months ended September 30, 2023, revealed a net interest income of $19.9 million, with total interest income at $66.7 million and interest expense at $46.8 million.
Portfolio and Post Quarter-End Developments
GPMT's loan portfolio at quarter-end was 98% floating rate, with a weighted average stabilized LTV of 63.3% and a portfolio yield of 8.4%. The weighted average portfolio risk rating was 2.7, with approximately 80% of loans risk ranked 3 or better. Following the quarter-end, GPMT funded an additional $5.5 million on existing loan commitments and received $79.3 million from loan payoffs and sales.
Strategic Financial Management
Granite Point's strategic financial management was further evidenced by the redemption of $132 million of Convertible Senior Notes on October 1, 2023, leaving the company with no corporate debt outstanding. The company also increased the borrowing capacity of its JPMorgan financing facility to $525 million, enhancing its liquidity position.
Granite Point's management remains focused on positioning the company for long-term success and value creation for its stockholders. The full earnings presentation and details on the upcoming conference call can be found on the company's website.
Investors and interested parties can find additional information about Granite Point Mortgage Trust Inc. (GPMT, Financial) on the SEC's website or by contacting the company directly.
Please note that this summary is for informational purposes only and does not constitute an offer to sell or buy securities.
Explore the complete 8-K earnings release (here) from Granite Point Mortgage Trust Inc for further details.
