Image source: © 2025 Krish Capital Pty.Ltd

Highlights

  • Q2 FY25 net loss was USD 17.0 million, or USD 0.35 per basic common share.
  • Distributable loss before realized gains/losses stood at USD 2.0 million for the quarter.
  • Book value per share was USD 7.99, including USD 3.27 per share in CECL reserves.

Granite Point Mortgage Trust Inc. GPMT (NYSE) reported a net loss attributable to common stockholders of USD 17.0 million for the second quarter of fiscal year 2025, or USD 0.35 per basic common share. The loss included a USD 11.0 million provision for credit losses. Distributable earnings before realized gains and losses came in at a loss of USD 2.0 million, or USD 0.04 per basic share.

The company’s total book value per common share at June 30, 2025, was USD 7.99, incorporating a total CECL (Current Expected Credit Loss) reserve of USD 155.1 million, equal to USD 3.27 per share. Granite Point declared a dividend of USD 0.05 per common share and a cash dividend of USD 0.4375 per share for its Series A preferred stock.

Loan portfolio activity reflected a net decrease of USD 115.1 million in unpaid principal balance. This included full repayments of USD 32.1 million, partial repayments of USD 2.4 million, and two loan resolutions totaling USD 94.1 million—of which USD 36.1 million were write-offs. The company also funded USD 13.5 million in new loans.

During the quarter, Granite Point sold a real estate owned (REO) property in Phoenix, Arizona for USD 16.7 million. The transaction resulted in a gain of USD 0.3 million, or USD 0.01 per share. The loan portfolio remained 98% floating rate, with total loan commitments of USD 1.9 billion and a realized yield of 7.1%. The weighted average stabilized loan-to-value at origination was 64.7%, and the average portfolio risk rating was 2.8.

Granite Point repurchased 1.25 million shares of its common stock during Q2 FY25 at an average price of USD 2.48 per share, totaling USD 3.1 million. This resulted in a book value accretion of USD 0.15 per share. The company ended the quarter with USD 85.1 million in unrestricted cash and a total leverage ratio of 2.1 times, with no corporate debt maturities remaining.

After quarter-end, the company resolved a student housing loan in Louisville, Kentucky with an unpaid balance of USD 50.0 million. The resolution is expected to result in a write-off of USD 19.3 million, offset by a USD 3.3 million GAAP benefit from previously recorded credit reserves. Additionally, GPMT extended its secured credit facility to December 2026, lowered the financing spread by 75 basis points, and reduced borrowings by USD 7.5 million. As of August 4, 2025, the company held approximately USD 73.3 million in unrestricted cash.