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(1)

Please see page 6 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 $9.6 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)

December 31,
2024

December 31,
2023

ASSETS

(unaudited)

Loans held-for-investment

$

2,097,375

$

2,718,486

Allowance for credit losses

(199,727

)

(134,661

)

Loans held-for-investment, net

1,897,648

2,583,825

Cash and cash equivalents

87,788

188,370

Restricted cash

26,682

10,846

Real estate owned, net

42,815

16,939

Accrued interest receivable

8,668

12,380

Other assets

51,514

34,572

Total Assets

$

2,115,115

$

2,846,932

LIABILITIES AND STOCKHOLDERS’ EQUITY

Liabilities

Repurchase facilities

$

597,874

$

875,442

Securitized debt obligations

788,313

991,698

Secured credit facility

86,774

84,000

Dividends payable

6,238

14,136

Other liabilities

16,699

22,633

Total Liabilities

1,495,898

1,987,909

Stockholders’ Equity

7.00% Series A 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 48,801,690 shares and 50,577,841 issued and outstanding, respectively

488

506

Additional paid-in capital

1,195,823

1,198,048

Cumulative earnings

(139,556

)

67,495

Cumulative distributions to stockholders

(437,745

)

(407,233

)

Total Granite Point Mortgage Trust Inc. Stockholders’ Equity

619,092

858,898

Non-controlling interests

125

125

Total Equity

619,217

859,023

Total Liabilities and Stockholders’ Equity

$

2,115,115

$

2,846,932

GRANITE POINT MORTGAGE TRUST INC.

CONDENSED AND CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

(in thousands, except share data)

Three Months Ended

Year Ended

December 31,

December 31,

2024

2023

2024

2023

Interest Income:

(unaudited)

(unaudited)

Loans held-for-investment

$

37,723

$

59,377

$

179,601

$

254,733

Cash and cash equivalents

997

2,126

5,950

9,002

Total interest income

38,720

61,503

185,551

263,735

Interest expense:

Repurchase facilities

14,417

21,963

71,841

86,593

Secured credit facility

2,667

3,108

10,823

12,290

Securitized debt obligations

14,065

18,622

67,004

72,975

Convertible senior notes

—

—

—

6,975

Asset-specific financings

—

478

—

2,902

Total interest expense

31,149

44,171

149,668

181,735

Net interest income

7,571

17,332

35,883

82,000

Other income (loss):

Revenue from real estate owned operations

3,282

1,104

9,327

2,622

Provision for credit losses

(37,193

)

(21,571

)

(201,412

)

(104,807

)

Gain (loss) on extinguishment of debt

—

—

(786

)

238

Fee income

—

53

—

134

Total other (loss)

(33,911

)

(20,414

)

(192,871

)

(101,813

)

Expenses:

Compensation and benefits

3,378

4,546

19,461

21,711

Servicing expenses

1,380

1,284

5,351

5,313

Expenses from real estate owned operations

4,364

2,080

13,186

5,977

Other operating expenses

3,380

2,480

12,075

10,289

Total expenses

12,502

10,390

50,073

43,290

(Loss) income before income taxes

(38,842

)

(13,472

)

(207,061

)

(63,103

)

(Benefit from) provision for income taxes

(6

)

1

(10

)

95

Net (loss) income

(38,836

)

(13,473

)

(207,051

)

(63,198

)

Dividends on preferred stock

3,601

3,601

14,401

14,451

Net (loss) income attributable to common stockholders

$

(42,437

)

$

(17,074

)

$

(221,452

)

$

(77,649

)

Basic (loss) earnings per weighted average common share

$

(0.86

)

$

(0.33

)

$

(4.39

)

$

(1.50

)

Diluted (loss) earnings per weighted average common share

$

(0.86

)

$

(0.33

)

$

(4.39

)

$

(1.50

)

Dividends declared per common share

$

0.05

$

0.20

$

0.30

$

0.80

Weighted average number of shares of common stock outstanding:

Basic

49,492,595

51,156,015

50,423,243

51,641,619

Diluted

49,492,595

51,156,015

50,423,243

51,641,619

Net (loss) income attributable to common stockholders

$

(42,437

)

$

(17,074

)

$

(221,452

)

$

(77,649

)

Comprehensive (loss) income

$

(42,437

)

$

(17,074

)

$

(221,452

)

$

(77,649

)

GRANITE POINT MORTGAGE TRUST INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION

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

Three Months
Ended

Twelve Months
Ended

December 31,

December 31,

2024

2024

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

GAAP net (loss) income attributable to common stockholders

$

(42,437

)

$

(221,452

)

Adjustments:

Provision for credit losses

37,193

201,412

Depreciation and amortization on real estate owned

1,859

6,280

Non-cash equity compensation

401

786

Loss on Extinguishment of Debt

$

—

$

6,565

Distributable Earnings (Loss) Before Realized Gains and Losses

$

(2,984

)

$

(6,409

)

Write-offs

(95,172

)

(146,318

)

Recoveries of previous write-offs

$

—

$

8,819

Distributable Earnings (Loss)

$

(98,156

)

$

(143,908

)

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

$

(0.06

)

$

(0.13

)

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

$

(0.06

)

$

(0.13

)

Distributable Earnings (Loss) per basic common share

$

(1.98

)

$

(2.85

)

Distributable Earnings (Loss) per diluted common share

$

(1.98

)

$

(2.85

)

Basic weighted average common shares

49,492,595

50,423,243

Diluted weighted average common shares

49,492,595

50,423,243

(1) Beginning with our Annual Report on Form 10-K for the year ended December 31, 2023, and for all subsequent reporting periods ending on or after December 31, 2023, 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 and twelve months ended December 31, 2024, we recorded provision for credit losses of $37.2 million and $201.4 million, respectively, 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 and twelve months ended December 31, 2024, we recorded $1.9 million and $6.3 million, respectively, 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.

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 and twelve months ended December 31, 2024, we recorded provision for credit losses of $37.2 million and $201.4 million, respectively, 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 and twelve months ended December 31, 2024, we recorded $1.9 million and $6.3 million, respectively, 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.