Granite Point Mortgage Trust Inc. Announces Third Quarter 2025 Results and Provides Post Quarter-End Business Update
Granite Point Mortgage Trust Inc. (NYSE: GPMT) (“Granite Point,” “GPMT,” or the “Company”), a leading publicly traded mortgage real estate investment trust focused on originating, investing in, and managing senior floating-rate commercial mortgage loans, announced its financial results for the quarter ended September 30, 2025. The Company also provided updates on several operating and financial developments that took place following the end of the quarter. Additional detailed disclosures relating to the quarter can be found in the Company’s earnings supplemental posted at www.gpmtreit.com.
Financial Performance for the Third Quarter of 2025
During the third quarter, Granite Point reported a GAAP net loss attributable to common stockholders of $(0.6) million, or approximately $(0.01) per basic weighted average common share. This result reflects the combined effects of continued credit portfolio management activities, interest rate dynamics, and loan resolution outcomes during the period. Notably, the GAAP loss includes a $1.6 million benefit from credit losses, which equates to approximately $0.03 per basic share, reflecting adjustments in allowances tied to legacy portfolio exposures.
The Company also reported Distributable Loss of $(18.9) million, or $(0.40) per basic weighted average common share, which reflects the impact of loan repayment timing, reduced loan balances, and financing costs. However, when considering Distributable Earnings Before Realized Gains and Losses, a non-GAAP metric designed to highlight underlying earnings performance absent the effect of realized credit outcomes, the Company recorded $0.9 million of distributable earnings, or $0.02 per basic common share. This measure suggests a more stable ongoing earnings profile once the impact of certain non-recurring resolution-related items is excluded.
At quarter-end, book value per common share was reported at $7.94, which includes a CECL (Current Expected Credit Loss) reserve of $2.82 per share. The size of the reserve reflects Granite Point’s continued conservative approach to recognizing expected losses amid evolving commercial real estate market conditions.
Capital Allocation and Dividends
Reflecting its continued commitment to shareholder return, the Company declared a common stock dividend of $0.05 per share for the quarter. Additionally, Granite Point announced a cash dividend of $0.4375 per share on its Series A preferred stock, in line with the stated terms of the preferred equity.
Loan Portfolio Activity and Asset Management
Granite Point’s portfolio activity in the third quarter reflected ongoing efforts to actively manage liquidity and credit exposure. The Company recorded net loan portfolio activity of $(109.7) million based on unpaid principal balance movements, driven by loan repayments, resolutions, and selective funding.
- Loan Repayments: The Company received $72.4 million in repayments, including a $3.4 million partial paydown on a risk-rated “5” loan tied to an office and retail property located in Chicago, Illinois. This repayment reflects progress toward reducing higher-risk exposures in the portfolio.
- Loan Resolution: Granite Point completed the resolution of a $50.0 million loan, which resulted in a $19.4 million write-off. However, because the loan had previously been reserved for through a $22.6 million CECL allowance, the Company recognized a GAAP benefit of approximately $3.2 million associated with the change in credit reserve.
- Fundings: The Company funded $12.7 million on existing commitments during the quarter, including $0.4 million in capitalized interest, reflecting continued disciplined support for existing borrowers and ongoing development or lease-up activities.
At the close of the quarter, Granite Point maintained a 97% floating-rate loan portfolio totaling $1.8 billion in loan commitments, with over 99% of loans categorized as senior secured positions. This structure is a key cornerstone of the Company’s business model, providing interest rate alignment with market fluctuations and enhanced collateral priority. The Company’s weighted average stabilized loan-to-value (LTV) ratio at origination was approximately 65.0%, indicating that loan balances typically remain well-cushioned relative to underlying property valuations at the time of underwriting. The realized loan portfolio yield for the period was approximately 7.5%, reflecting fee income, coupon income, and portfolio composition.
The total CECL reserve stood at $133.6 million, representing 7.4% of the total loan portfolio commitments. The weighted average loan risk rating was 2.8, suggesting moderate credit quality across the majority of the portfolio. Granite Point also continued to manage owned real estate acquired through foreclosure or workouts. The Company held two REO properties with a combined carrying value of $105.5 million, including $9.8 million in related assets and liabilities tied to property leasing and operational activity.
Balance Sheet and Liquidity Position
Granite Point continued to strengthen its liquidity and financing profile. During the quarter, the Company extended the maturity of its secured credit facility to December 2026, providing increased stability in its funding outlook. Additionally, the Company successfully reduced its financing spread by 75 basis points and lowered borrowings under the facility by $7.5 million, supporting lower financing expenses and balance sheet flexibility.
At quarter-end, the Company reported $62.7 million in unrestricted cash and a Total Leverage Ratio of 1.9x, indicating moderate leverage relative to equity capital. This balance sheet position continues to support the Company’s ability to navigate market conditions and manage credit exposures while preserving capital.
Post Quarter-End Developments
Following the end of the third quarter, Granite Point continued selective portfolio activity. During the early part of the fourth quarter, the Company funded approximately $2.3 million related to existing loan commitments. The Company also received a full loan repayment of $32.7 million, further enhancing liquidity.
In addition, the Company refinanced its REO property in Maynard, Massachusetts with a new $18.0 million first mortgage, priced at a financing spread of SOFR + 3.05%. This refinancing supports continued progress in stabilizing and monetizing real estate-owned positions.
As of November 3, 2025, Granite Point reported approximately $80.1 million of unrestricted cash, reflecting improved liquidity compared to quarter-end.
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