In This Article:
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Total Loan Portfolio Commitments: $2.2 billion.
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Outstanding Principal Balance: $2.1 billion.
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Future Fundings: $91 million (4% of total commitments).
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Average UPB: $39 million.
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Weighted Average Stabilized LTV: 64% at origination.
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Portfolio Weighted Average Risk Rating: 3.1%.
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Realized Loan Portfolio Yield: 6.6% net of non-accrual loans impact.
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Loan Repayments, Paydowns, and Resolutions: $303 million in Q4.
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Net Loan Portfolio Reduction: $243 million in Q4.
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GAAP Net Loss: $42.4 million or negative $0.86 per basic common share.
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Provision for Credit Losses: $37.2 million or negative $0.75 per basic common share.
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Distributable Loss: $98.2 million or negative $1.98 per basic common share.
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Book Value: $8.47 per common share at December 31.
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Aggregate CECL Reserve: $201 million or $4.12 per common share.
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Unrestricted Cash: $88 million at year-end.
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Total Leverage: 2.2x.
Release Date: February 14, 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 nine loans totaling about $344 million in principal balance at or near carrying value in 2024.
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The company realized about $415 million of loan repayments, paydowns, and amortization, contributing to improved liquidity.
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GPMT repurchased approximately 2.4 million of its common shares in 2024, reflecting confidence in the undervaluation of its stock.
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The company anticipates improved run rate profitability over time as it resolves non-performing loans and pays down expensive debt.
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GPMT's loan portfolio remains well diversified across regions and property types, with a stable weighted average risk rating of 3.1% as of December 31, 2024.
Negative Points
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Granite Point Mortgage Trust Inc (NYSE:GPMT) reported a GAAP net loss of $42.4 million for the fourth quarter of 2024, including a significant provision for credit losses.
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The company's book value declined by about $0.78 per share in Q4 2024, primarily due to credit loss provisions.
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GPMT's distributable loss for the quarter was $98.2 million, with substantial write-offs related to non-accrual loan resolutions.
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The company has a significant number of loans in non-accrual status, with seven loans totaling $453 million in principal balance.
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GPMT's loss severities on resolved loans have been higher than many peers, raising concerns about asset management and credit downgrades.
Q & A Highlights
Q: Can you provide more detail on the new 5-rated assets and the potential for further downgrades? A: Stephen Alpart, Chief Investment Officer, explained that the Louisville Student Housing Property was downgraded due to an arbitration process that concluded unfavorably. The Miami Beach office asset was taken over due to the previous owner's undercapitalization. The company reviews risk ratings and reserves quarterly and feels comfortable with the current assessments.