GPMT

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 11 a.m. ET Head of Investor Relations - Chris Petta President and Chief Executive Officer - Jack Taylor Chief Investment Officer and Co-Head of Originations - Stephen Alpart Chief Financial Officer - Blake Johnson Chief Development Officer and Co-Head of Originations - Peter Morral Chief Operating Officer - Ethan Lebowitz Operator: Good morning. My name is Alicia, and I'll be your conference facilitator. At this time, I'd like to welcome everyone to Granite Point Mortgage Trust Second Quarter 2026 Financial Results Conference Call. [Operator Instructions] Please note today's call is being recorded. I would now like to turn the call over to Chris Petta, Head of Investor Relations for Granite Point. Chris Petta: Thank you, and good morning, everyone. Thank you for joining our call to discuss Granite Point's second quarter 2026 financial results. With me on the call this morning are Jack Taylor, our President and Chief Executive Officer; Steve Alpart, our Chief Investment Officer and Co-Head of Originations; Blake Johnson, our Chief Financial Officer; Peter Morral, our Chief Development Officer and Co-Head of Originations; and Ethan Lebowitz, our Chief Operating Officer. After my introductory comments, Jack will provide a brief recap of market conditions and review our current business activities. Steve will discuss our portfolio, and Blake will highlight key items from our financial results. The press release, financial tables, and earnings supplemental associated with today's call were filed yesterday with the SEC, along with our Form 10-Q, and are available in the Investor Relations section of our website. I would like to remind you that remarks made by management during this call and the supporting slides may include forward-looking statements, which are uncertain and out of the company's control. Forward-looking statements reflect our views regarding future events and are subject to uncertainties that could cause actual results to differ materially from expectations. Please see our filings with the SEC for a discussion of some of the risks that could affect results. We do not undertake any obligation to update any forward-looking statements. We will also refer to certain non-GAAP measures on this call. This information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP. The reconciliation of these non-GAAP financial measures to the most comparable GAAP measures can be found in our earnings release and slides, which are available on our website. Now I'll turn the call over to Jack. Jack Taylor: Thank you, Chris, and good morning, everyone. We would like to welcome you, and thank you for joining Granite Point's Second Quarter 2026 Earnings Call. U.S. commercial real estate credit continued to benefit from improving fundamentals and extended its positive trajectory during the second quarter. Geopolitical developments tied to the Iran conflict are influencing the U.S. capital markets, as energy prices, along with tariffs, have sharpened investors' focus on inflation and contributed to greater uncertainty about the direction of interest rates. As a result, property values are facing potential headwinds as expectations are shifting from pricing near-term interest rate cuts to rate hikes. Nevertheless, capital continues to flow into commercial real estate assets. Debt markets have remained competitive, and lending spreads have continued a trend of tightening, helping to mitigate a potential rise in short-term rates that could impact refinancings. During the quarter, loan demand generally broadened due to a pickup in acquisitions. Banks have been reporting net increases in commercial real estate loan demand for the first time since 2022. The CMBS market continues to be strong, with issuance on pace to surpass last year's post-GFC record volumes. The increase in acquisition volumes was driven by portfolio and entity-level mega-deals, while the Iran war and other contributors to volatility in some instances paused and delayed individual asset sales, reducing volumes. Nevertheless, fundamentals and liquidity continue to improve in many office markets, which is a constructive sign for resolving legacy office loans. Our reserves increased during the quarter, due to an increase in our general reserve caused in part by a more negative macroeconomic forecast utilized in our general reserve model, increases in the specific reserves in some situations involving a change of circumstances at the collateral or borrower level, and in others where it was a result of more particular price discovery as processes proceeded. While we'll go into greater detail on these items, we do expect our nearer-term resolutions to offset much of these increases. Granite Point remains focused on our primary objective of resolving our legacy loans. Following on the activities of the first quarter, which included two large loan repayments and the sale of a B-note secured by a hotel at a price somewhat above par, during the second quarter, we completed the resolution of the Chicago retail loan above our carrying value, realized an office loan repayment, and successfully sold two participation interests in debt secured by an office property in Dallas, Texas, for a price in the low 90s. These participation interests included a larger subordinated interest and an accompanying much smaller senior interest. These actions also furthered our goals of reducing higher-cost debt. With respect to our two REO assets, we continue to make progress on maximizing value with the goal of exiting these properties opportunistically. As we continue to focus on our objectives, one of which is to lower our cost of funds, more recently, as announced in a recent press release, we refinanced the assets that were in our two legacy CLOs by extending and upsizing the JPMorgan financing facility, which reduced the cost of funds on these assets from SOFR plus 238 to SOFR plus 200. We are pleased to achieve this refinancing with one of our key lending partners at a favorable cost of funds, which also substantiates underlying value in these loan assets which constitute a large subset of our portfolio. Taken together, we believe our initiatives are strengthening Granite Point's financial position and enhancing our ability to create long-term shareholder value. The Board and management believe that the company's current market valuation does not fully reflect the underlying value of Granite Point and its assets, and we remain actively focused on narrowing that gap. We intend to do so in a variety of ways, including disciplined execution, resolving our legacy assets in a value-maximizing manner, reducing our cost of capital, maintaining balance sheet flexibility, and positioning the company to redeploy capital into attractive new investments. I would now like to turn the call over to Steve to discuss our portfolio activities in more detail. Stephen Alpart: Thank you, Jack, and thank you all for joining our second quarter earnings call. We ended the quarter with $1.5 billion in total loan portfolio commitments, inclusive of $1.4 billion in outstanding principal balance and about $57 million of future fundings, which accounts for only about 4% of total commitments. Our loan portfolio remains diversified across regions and property types and includes 38 investments with an average UPB of about $37 million and a weighted average stabilized LTV of 66% (sic) [ 66.1% ] at origination. As of June 30th, our portfolio weighted average risk rating remained stable at 3.2, quarter-over-quarter. The realized loan portfolio yield for the second quarter was 6%, which excluding non-accrual loans would be 7.4%, or 1.4% higher. We had an active quarter of loan repayments, resolutions, paydowns, amortization, and loan participation sales totaling about $160 million. During the second quarter, we had a repayment of a $37 million loan secured by an office property in Richmond, Virginia. This property has been a strong performing property in a solid office market. However, until recently we had not seen much liquidity in this market for either debt or equity. As Jack mentioned earlier, we are now seeing expanded capital available for office assets. In addition, we sold two interests in debt secured by a strong performing, well-occupied office property in Dallas, Texas, totaling $31 million. We achieved the final resolution on the $76 million Chicago retail loan via a property sale. We had about $8 million of future fundings and other investments, resulting in a net loan portfolio reduction of about $122 million for the second quarter. We'll now provide some color on the remaining risk-rated 5 loans. At June 30th, we had five such loans with a total UPB of about $253 million. Three of the five are in active sales processes that we anticipate may be completed over the coming quarters. At quarter end, we downgraded a $65 million loan collateralized by a 384,000-square-foot office property in the San Diego CBD from a risk rating of 4 to a rating of 5. The office property was purchased by a West Coast institutional owner for a major hotel redevelopment strategy. This owner made a major equity investment in the property, as did the major hotel brand separately. However, more recently, as a result of rising construction costs and elevated financing costs, the sponsor believes that the original business plan may be difficult to achieve at this time, and as a result, we downgraded this loan from a 4 rating to a 5 rating. We are in discussions with the borrower and pursuing several potential resolution alternatives. Regarding the $27 million Tempe hotel and retail loan, which we've discussed in prior quarters, we've been in active dialogue with the borrower and are reviewing resolution alternatives, which we expect will involve a sale of the property. The property securing the Atlanta multifamily loan, which we've also discussed in prior quarters, is now under contract with a hard deposit with a targeted close in the near term. We are in discussions with the borrower on the $15 million New Haven hotel loan, and as we mentioned last quarter, we expect to resolve this loan via a property sale by the borrower over the next couple of quarters. The last 5-rated loan is the $93 million Minneapolis office loan, where we are working collaboratively with current ownership to take the property back as REO in the nearer term. Solving these remaining 5-rated loans remains a top priority. At quarter end, we had two loans with a combined UPB of $68 million, which have risk ratings of 4 that are on non-accrual status. We are reviewing resolution alternatives for each of these loans and will provide additional information as the situations progress. Regarding the REO assets, we continue to have positive leasing momentum at the suburban Boston property and remain actively engaged with our partner and other third parties on several value-enhancing repositioning opportunities. The Miami Beach office property is a Class A asset located in a strong market. We are having positive leasing discussions with a variety of existing and new tenants, will prudently invest in the property, and continue to review alternatives targeting a sale of the property during the second half of 2026. As we shared in prior quarters, our plan is to remain focused on repayments and resolutions. Along with resolving the 5-rated and other non-accrual loans, the REO assets provide additional capital that can be unlocked and redeployed into higher-earning investments. In the interim, we expect our portfolio balance will trend lower until the end of the year, when we restart our origination efforts to take advantage of attractive investment opportunities and begin to regrow our portfolio. I will now turn the call over to Blake to discuss our financial results. Blake Johnson: Thank you, Steve. Good morning, everyone, and thank you for joining us today. Turning to our financial results. For the second quarter, we reported a GAAP net loss attributable to common stockholders of $62 million, or negative $1.29 per basic common share, which includes a provision for credit losses of $47 million and an impairment loss on REO of $6.1 million, and a distributable loss of $37.7 million, or negative $0.79 per basic common share. Our book value as of June 30th was $5.70, a decline of $1.35 from Q1. Our aggregate CECL reserve at June 30th was about $166 million, which is approximately $17 million higher than last quarter. The $10 million increase in our specific reserve is largely due to one new risk-rated 5 loan, partially offset by the write-off associated with one loan resolution during the quarter. The $7 million increase in general reserve was driven by downgraded macroeconomic forecasts in our CECL model and changes in loan attributes in our investment portfolio. Approximately 78% of our total allowance was allocated to individually assessed loans. As of quarter end, we had about $253 million of principal balance on risk-rated 5 loans with specific CECL reserves of about $120 million, representing 47.4% of the unpaid principal balance. We believe we are appropriately reserved and further resolutions should meaningfully reduce our total CECL reserve balance. Regarding liquidity and capitalization, we ended the quarter with about $58 million of unrestricted cash and total leverage of 1.9x. During the quarter, we extended the Citibank and Morgan Stanley repurchase facilities by approximately one year and extended the secured credit facility to December 2027, including reducing its cost of funds by 25 basis points. After quarter end, we refinanced our legacy CLOs by upsizing and extending the JPMorgan repurchase facility. As of a few days ago, we carried about $35.7 million in cash. Our funding mix remains well diversified and stable, and we continue to have very constructive relationships with our financing counterparties, who know our assets very well, as evidenced by their recent extensions. We expect to expand our financing capacity once we return to originating new loans. Lastly, as Jack mentioned earlier, the refinance of our legacy CLO assets and upsize of the JPMorgan repurchase facility will reduce our cost of funds and interest expense. We expect the weighted average cost of funds for those refinanced assets to decrease to SOFR plus 200 from SOFR plus 238 as of 6/30. The 38-basis-point improvement in the cost of funds will decrease our interest expense by approximately $2 million on an annualized basis using the 6/30 CLO outstanding balance of $521 million. As we look forward, we continue to believe the best use of our capital is to continue paying down our higher-cost debt, resolving our remaining non-accrual loans and REO, and regrowing our investment portfolio. I will now ask the operator to open the line for questions. Operator: [Operator Instructions] Our first question comes from the line of Chris Muller with Citizens Capital Markets. Christopher Muller: Sorry if I missed some of this, but I was jumping around calls this morning. But I guess on the San Diego loan that was downgraded, can you guys just give a little more detail on that? What's occupancy? And it sounds like it might be a redevelopment, so maybe it's not occupied as we sit today, and just any timelines on redevelopment resolution there you could share would be helpful. Stephen Alpart: Hey, Chris. Good morning. It's Steve Alpart. Thanks for joining the call. So you mentioned that you may have joined a little bit late. So what we just mentioned on the earlier call is that, look, we downgraded this loan. It's a $65 million loan. It's a 384,000-square-foot office property in the San Diego CBD. The property was purchased by a West Coast institutional owner. Original business plan was a major hotel redevelopment strategy. They partnered with a prominent hotel brand, and the development also was, you know, potentially including residential and retail components. We mentioned earlier also that the borrower and the brand each made pretty significant equity investments in the property. But more recently, they said that because of the impact of rising construction costs, also elevated financing costs, they feel that the original business plan is more difficult. So it was really kind of the cumulative effect of those factors that led them to say that at least even though they were putting in equity until very recently, that they're not going to put more equity into the property behind our loan. So that was really the catalyst for the movement of the loan from a 4 to a 5 rating during the quarter. You asked about the occupancy. This was originally designed as an office building. The occupancy is, I'll just say, very low intentionally because the current strategy is to reposition as hotel or hotel with mixed-use. It was originally a low-occupied office building for redevelopment. So that's, I guess that's the answer to your question on occupancy. As far as timing and next steps, look, we're in discussions with the borrower. They are engaged, they are cooperative, and we're looking at a number of resolution alternatives, but I would say it's early days to get into timelines. Christopher Muller: Got it. And then maybe changing gears a little bit to the Miami REO, I see that was moved to held for sale. Are you guys getting any interest from buyers on that asset? And could a sale on that one be done by the end of the year? Stephen Alpart: Yes, we have been looking at alternatives. The focus has been on leasing. We have gotten good leasing traction. This happens to be in a very strong and robust market. We are now under contract on that property sale, and we are targeting a sale during the second half of this year. Christopher Muller: Got it. And maybe just changing gears a little bit. So maybe just touching on the dividend, you guys made some comments about the portfolio is probably going to continue to trend a little bit lower until you can restart the origination engine. So how are you guys thinking about the dividend versus just preserving as much capital as you can through that period? Jack Taylor: I'll address that. This is Jack. Nice to speak with you, Chris. We do evaluate quarter-to-quarter all our uses of capital, including the dividend, and it is a Board decision with recommendation from management. And as we move forward, we will, as we always do, look at the competing uses of capital, including the dividend. We've not made that determination as of this moment. Christopher Muller: Got it. I appreciate that and I figured that was the answer I was going to get, but figured I'd ask anyway. I appreciate you guys taking the questions today. Jack Taylor: Thank you, Chris. Operator: Thank you. Our next question comes from the line of Marissa Lobo with UBS. Please proceed. Marissa Lobo: Just was hoping you could review the liquidity position post the CLO refi, just looking at cash of $35 million on August 3rd. Can you just talk through that with funding commitments and active sale processes and your minimum liquidity buffer? Blake Johnson: Marissa, this is Blake. Thank you for the question. I'll take a first pass at answering this, and then I can pass it to Jack to provide some more color. But yes, so as of quarter end, we held around $58.5 million of cash. And then as of the other day, we held around $35.7 million, so roughly around a $23 million change. As far as the CLO refi goes, we did actually reduce our borrowings there. So part of this change from that $23 million is largely from $12 million of reduced borrowings. We also had some fees associated with the refinance as well, in addition to the upsize. And then we also had fees associated with other facilities, which resulted in a total of around $4 million. So the combination of those two is around $16 million for the month. The rest of the change is largely attributed to things that we see on a recurring basis. So spending money in our REO, for example, future fundings, that sum to around $2.8 million. And depending on the quarter, we see around $3 million to $4 million a month. The other one that was unique in the month of July was we had the dividend payment go out the door to common and preferred. That was around $6 million. Marissa Lobo: Got it. Thank you. Jack Taylor: Are you done, Blake? Blake Johnson: I am, Jack. Jack Taylor: I'll just add, we added disclosure in our 10-Q in a footnote relating to the secured financing agreements, which basically does two things. Just right below our statement of how we are in compliance with four financial covenants, the disclosure sets out two things. First, a favorable change to our most restrictive minimum tangible net worth covenant from $600 million to $500 million. And a favorable change to the minimum unrestricted cash covenant from $30 million to $20 million. It also outlines a plan to mitigate the possibility of temporarily falling below $20 million of unrestricted cash that could occur later this year between the third and fourth quarters. It's a footnote per prescriptive GAAP rules. And so it does not include all the other items that could release capital, which we're working on, because it doesn't fit in with the prescriptive rules, such as repayments of certain assets that we believe are likely to occur in the coming months or other mitigants or levers available to us, such as, say, like a loan sale. We do not believe that we will have a temporary fall below our minimum cash of $20 million, and we will remain in compliance with the covenant. Marissa Lobo: Okay, great. I appreciate that detail. And just thinking about peer commentary on resolutions and some non-performing loans facing volatile bids with rising return expectations from buyers, can you give us color on what you're seeing and how your marks reflect that? If it's appraisal, or should we expect more mark-to-market deterioration? Jack Taylor: Steve, do you want to address that and then I can follow up? Stephen Alpart: Sure, I think I heard a couple of questions in there. Part of it I think was on the marks and was part of it what we're seeing in the market? I just want to make sure I understand the question. Marissa Lobo: Yes, correct. Yes, just to understand whether the marks are more appraisal-based or just reflecting some of the realities of buyers' return expectations. Stephen Alpart: Okay, understood. Thank you for the clarification. Yes, so I would say earlier in the year, so, earlier in the process, it's typically going to be appraisal-based. And then, to the extent there's an active resolution process, which particularly for the 5s, some of the 4-rated loans, as we get more information, it's a very prescriptive process. So I would say earlier with appraisal-based, if you're in the market on a sale or other process and you're taking in more information, for example, if you're taking in bids, at some point that'll become more relevant. And I think you heard a lot of commentary this quarter. There's a lot of capital in the market, particularly debt capital. Equity capital is very selective in many cases, I would say, particularly for office and some of these more complicated situations. So we've seen processes where you get 20 or more real bidders showing up, and there'll be some outliers, but there's a really well-defined market. And then there's other cases where you start a process and at the end there's only a handful of bidders. So depending what happens with those bidders, it can really move around a lot. And with the movement in rates and some of the interest rate volatility, that is impacting pricing in some cases. You've seen return requirements drift off. That has an impact on values. So basically, as we go through a process, then that will become more impactful to our reserves than the appraisal. Operator: Thank you. There are no further questions at this time. I'd like to turn the floor back over to Jack Taylor for any closing remarks. Jack Taylor: Thank you, Operator, for assisting us today. I want to thank everybody on the team for all the hard work that you've been doing to get the refinancing done and other activities that we've been engaged in. We are all working very hard to pursue the repayments. We have good visibility on repayments coming through, and we are actively working on the resolutions that we've discussed and are optimistic that many of those are going to come through as we set out in our prepared remarks and commentary. Thank you, everybody, for joining us, and we wish you a good day. Operator: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation. 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Interested in Granite Point Mortgage Trust Inc.? Here are five stocks we like better. Granite Point reported a $62 million GAAP net loss in Q2, or $1.29 per share, driven by a $47 million credit-loss provision and a $6.1 million impairment on real estate owned assets. Book value fell $1.35 to $5.70 per share. The company increased its CECL reserve to approximately $166 million and is prioritizing legacy-loan resolutions. About $160 million of repayments, resolutions and asset sales reduced the loan portfolio by roughly $122 million, while three of five risk-rated five loans were placed in active sale processes. Granite Point strengthened its financing position by extending key facilities and refinancing legacy CLO assets, lowering funding costs from SOFR plus 238 basis points to SOFR plus 200 basis points. Management expects the move to reduce annualized interest expense by about $2 million and plans to keep shrinking the portfolio before resuming originations. Granite Point Mortgage Trust (NYSE:GPMT) reported a second-quarter GAAP net loss attributable to common stockholders of $62 million, or $1.29 per basic common share, as the commercial real estate lender increased credit-loss reserves and recorded an impairment on real estate owned assets. The company said the quarterly loss included a $47 million provision for credit losses, a $6.1 million impairment loss on REO, and a distributable loss of $37.7 million, or $0.79 per basic common share. Book value declined to $5.70 per share as of June 30, down $1.35 from the prior quarter. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling President and Chief Executive Officer Jack Taylor said commercial real estate credit conditions continued to improve during the quarter, though geopolitical developments tied to the Iran war, energy prices and tariffs increased uncertainty around inflation and interest-rate expectations. While potential rate hikes could pressure property values, Taylor said capital has continued flowing into commercial real estate and lending spreads have tightened. Granite Point’s aggregate current expected credit loss, or CECL, reserve totaled approximately $166 million at quarter-end, up about $17 million from the first quarter. Chief Financial Officer Blake Johnson said the increase included a $10 million rise in specific reserves, largely related to one newly risk-rated five loan, partially offset by a write-off tied to a loan resolution. General reserves increased $7 million because of downgraded macroeconomic forecasts in the company’s CECL model and changes in loan attributes. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High About 78% of the company’s allowance was allocated to individually assessed loans. Granite Point had approximately $253 million of principal balances on risk-rated five loans at June 30, with specific CECL reserves of about $120 million, or 47.4% of those loans’ unpaid principal balance. “We believe we are appropriately reserved and further resolutions should meaningfully reduce our total CECL reserve balance,” Johnson said. → No Hangover: Revisiting Microsoft One Week After Earnings The company completed roughly $160 million of loan repayments, resolutions, paydowns, amortization and participation-interest sales during the quarter. Activities included repayment of a $37 million office loan in Richmond, Virginia; the sale of $31 million in debt interests secured by a Dallas office property; and final resolution of a $76 million Chicago retail loan through a property sale. Those transactions, partially offset by about $8 million in future fundings and other investments, resulted in a net loan portfolio reduction of about $122 million during the quarter. Granite Point ended the quarter with $1.5 billion in total loan portfolio commitments, including $1.4 billion of outstanding principal balance and approximately $57 million of future fundings. The portfolio contained 38 investments, with an average unpaid principal balance of about $37 million and a weighted-average stabilized loan-to-value ratio at origination of 66%. The portfolio’s weighted-average risk rating remained 3.2 from the previous quarter. Realized portfolio yield was 6% in the second quarter, or 7.4% excluding non-accrual loans, according to Chief Investment Officer and Co-Head of Originations Stephen Alpart. Granite Point had five risk-rated five loans totaling about $253 million at quarter-end, three of which were in active sale processes that the company expects could be completed in coming quarters. During the quarter, it downgraded a $65 million loan secured by a 384,000-square-foot office property in San Diego’s central business district from a four to a five rating. Alpart said the property had been acquired for a hotel redevelopment strategy, potentially including residential and retail components. The borrower and hotel brand had made significant equity investments, but the sponsor indicated that rising construction and financing costs could make the original plan difficult to complete. Granite Point is discussing potential resolution alternatives with the borrower. The company also said an Atlanta multifamily property securing one of its loans was under contract with a hard deposit and a targeted near-term closing. It expects a $15 million New Haven hotel loan to be resolved through a borrower-led property sale over the next couple of quarters. Granite Point is working with ownership of a $93 million Minneapolis office loan to take the property back as REO in the nearer term. At quarter-end, Granite Point also had two non-accrual loans with a combined unpaid principal balance of $68 million that were risk-rated four. The company said it continued to see leasing momentum at its suburban Boston REO property. Its Miami Beach office property, a Class A asset, was moved to held-for-sale status and is now under contract for sale, according to Alpart. Granite Point is targeting a sale during the second half of 2026. Liquidity totaled approximately $58 million of unrestricted cash at June 30, while total leverage was 1.9 times. Johnson said cash was approximately $35.7 million a few days before the earnings call, reflecting reduced borrowings under the company’s CLO refinancing, facility fees, REO spending, future fundings and dividend payments. During the quarter, Granite Point extended its Citibank and Morgan Stanley repurchase facilities by about one year and extended a secured credit facility through December 2027, while reducing that facility’s cost of funds by 25 basis points. After quarter-end, Granite Point refinanced assets from its two legacy CLOs through an expanded and extended JPMorgan repurchase facility. The transaction reduced the cost of funds on those assets to SOFR plus 200 basis points from SOFR plus 238 basis points. The company expects the 38-basis-point reduction to lower annualized interest expense by about $2 million, based on the June 30 CLO outstanding balance of $521 million. Taylor said management and the board believe the company’s market valuation does not fully reflect the underlying value of its assets. Granite Point plans to prioritize legacy-loan resolutions, reduction of higher-cost debt, balance-sheet flexibility and eventual redeployment of capital into new investments. The company expects its portfolio balance to trend lower until it resumes originations. Granite Point Mortgage Trust, Inc is a specialty finance company that invests directly in commercial real estate debt. The company focuses on originating, acquiring and managing senior preferred and mezzanine loans secured by income-producing real estate across diverse property types, including multifamily, office, industrial and retail assets. Granite Point Mortgage Trust operates as a real estate investment trust (REIT), providing investors with exposure to floating-rate commercial mortgage loan investments. Granite Point's investment strategy centers on structuring loans to deliver attractive risk-adjusted returns, with portfolio allocations spanning senior loans, B-notes and mezzanine financings. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Granite Point Mortgage Trust Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is focused on resolving legacy office and retail loans to unlock capital, successfully completing a Chicago retail resolution above carrying value and selling Dallas office participation interests in the low 90s. The company is actively reducing its cost of funds by transitioning assets from legacy CLOs to an upsized JPMorgan financing facility, lowering the rate from SOFR plus 238 to SOFR plus 200. U.S. commercial real estate fundamentals are improving, but geopolitical tensions and inflation concerns have shifted market expectations from near-term rate cuts to potential hikes, creating property value headwinds. Loan demand is broadening due to a pickup in acquisition activity and the first net increase in bank demand since 2022, though volatility has delayed some individual asset sales. Reserves increased this quarter due to a more negative macroeconomic forecast in the general reserve model and specific price discovery during active loan resolution processes. Management believes the current market valuation does not reflect the underlying asset value and intends to narrow this gap through disciplined execution and opportunistic REO exits. The total loan portfolio balance is expected to trend lower until the end of 2026, at which point the company intends to restart origination efforts and begin regrowing the portfolio. Management plans to restart origination efforts toward the end of the year to take advantage of attractive investment opportunities and begin regrowing the portfolio. The company targets the sale of its Miami Beach REO office property during the second half of 2026, following positive leasing momentum in a robust market. Future interest expense is projected to decrease by approximately $2 million annually following the refinancing of legacy CLO assets at more favorable terms. Capital allocation remains focused on paying down higher-cost debt and resolving non-accrual loans before redeploying capital into higher-earning new investments. A $65 million San Diego office loan was downgraded to risk rating 5 after the borrower abandoned a hotel redevelopment plan due to rising construction and financing costs. The company updated its financial covenants, reducing the minimum tangible net worth requirement from $600 million to $500 million and the minimum unrestricted cash covenant from $30 million to $20 million. Management acknowledged a potential risk of temporarily falling below the $20 million cash covenant later this year but outlined mitigation plans including anticipated loan repayments and sales. Specific CECL reserves now represent 47.4% of the unpaid principal balance for risk-rated 5 loans, which management believes appropriately reflects current market realities. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The loan was downgraded because the institutional owner and hotel brand partner decided not to commit further equity as rising costs made the original redevelopment plan difficult. Occupancy is intentionally low as the property was being held for a hotel and mixed-use conversion rather than traditional office use. The Miami Beach office property is currently under contract for sale following strong leasing traction in a robust local market. Management expects to finalize the sale during the second half of 2026. Management deflected a specific commitment on the dividend, stating that the Board evaluates all competing uses of capital quarter-to-quarter. No final determination has been made regarding future dividend levels as the portfolio balance trends lower. The decline in cash from $58.5 million to $35.7 million was driven by reduced borrowings in the CLO refi, facility fees, and dividend payments. Management expressed confidence in remaining above the new $20 million minimum cash covenant, citing visibility into upcoming asset repayments not captured by prescriptive GAAP disclosures.

NEW YORK, August 05, 2026--(BUSINESS WIRE)--Granite Point Mortgage Trust Inc. (NYSE: GPMT) ("GPMT," "Granite Point" or the "Company") today announced its financial results for the quarter ended June 30, 2026, and provided an update on its activities subsequent to quarter-end. An earnings supplemental containing second quarter 2026 financial results can be viewed at www.gpmtreit.com. "We continued to execute on our strategic priorities," said Jack Taylor, President, Chief Executive Officer, and Director of Granite Point. "The refinancing of our two legacy CLOs with JPMorgan lowered our cost of funds on these assets by 38 basis points. These assets represent a large part of our portfolio and we believe the refinancing further substantiates their underlying value. We also continue to realize and pursue loan repayments and resolutions to better position the Company for future growth." Second Quarter 2026 Activity Recognized GAAP net (loss) attributable to common stockholders of $(62.0) million, or $(1.29) per basic weighted average common share. Distributable Earnings (Loss)(1) of $(37.7) million, or $(0.79) per basic weighted average common share. Distributable Earnings (Loss) Before Realized Gains and Losses(1) of $(4.9) million, or $(0.10) per basic weighted average common share. Book value per common share was $5.70, inclusive of $(3.44) per common share of total CECL reserve. Declared common stock dividend of $0.05 per common share and a cash dividend of $0.4375 per share of its Series A preferred stock. Net loan portfolio activity of $(121.8) million in unpaid principal balance. Carried at quarter-end a 97% floating rate loan portfolio with $1.5 billion in total loan commitments comprised of 100% senior loans, with a portfolio weighted average stabilized LTV at origination(2) of 66.1% and a realized loan portfolio yield(3) of 6.0%. Total CECL reserve of $165.8 million, or 11.4% of total loan portfolio commitments. Weighted average loan portfolio risk-rating was 3.2. Held two REO(4) assets with an aggregate carrying value of $90.7 million(5). Ended the quarter with $58.5 million in unrestricted cash and Total Leverage Ratio(6) of 1.9x. Post Quarter-End Update So far in Q3’26, funded about $1.6 million on existing loan commitments. In July, the Company refinanced the assets in our two legacy CLOs, GPMT 2021-FL3 and GPMT 2021-FL4, by extending and upsizing the JPMorgan financing facility. As of June 30, the two CLOs had a total outstanding balance of $521 million with a weighted average cost of S+2.38%, and the refinance resulted in lowering the weighted average cost by 38 basis points to S+2.00%. The JPMorgan financing facility has a total outstanding balance of approximately $651 million, a weighted average cost of S+2.17%, and a 2-year term with three 1-year term extension options. As of August 3, 2026, carried approximately $35.7 million in unrestricted cash. Conference Call Granite Point Mortgage Trust Inc. will host a conference call on August 6, 2026, at 11:00 a.m. ET to discuss second quarter 2026 financial results and related information. To participate in the teleconference, please call toll-free (877) 407-8031, (or (201) 689-8031 for international callers), approximately 10 minutes prior to the above start time, and ask to be joined into the Granite Point Mortgage Trust Inc. call. You may also listen to the teleconference live via the Internet at www.gpmtreit.com, in the Investor section under the News & Events link. For those unable to attend, a telephone playback will be available beginning August 6, 2026, at 1:00 p.m. ET through August 20, 2026, at 12:00 a.m. ET. The playback can be accessed by calling (877) 660-6853 (or (201) 612-7415 for international callers) and providing the Access Code 13761731. The call will also be archived on the Company’s website in the Investor section under the News & Events link. About Granite Point Mortgage Trust Inc. Granite Point Mortgage Trust Inc. is a Maryland corporation focused on directly originating, investing in and managing senior floating rate commercial mortgage loans and other debt and debt-like commercial real estate investments. Granite Point is headquartered in New York, NY. Additional information is available at www.gpmtreit.com. Forward-Looking Statements This press release contains, or incorporates by reference, not only historical information, but also forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve numerous risks and uncertainties. Our actual results may differ from our beliefs, expectations, estimates, projections and illustrations and, consequently, you should not rely on these forward-looking statements as predictions of future events. Forward-looking statements are not historical in nature and can be identified by words such as "anticipate," "estimate," "will," "should," "expect," "target," "believe," "outlook," "potential," "continue," "intend," "seek," "plan," "goals," "future," "likely," "may" and similar expressions or their negative forms, or by references to strategy, plans or intentions. The illustrative examples herein are forward-looking statements. By their nature, forward-looking statements speak only as of the date they are made, are not statements of historical facts or guarantees of future performance and are subject to risks, uncertainties, assumptions or changes in circumstances that are difficult to predict or quantify. Our expectations, beliefs and estimates are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that management's expectations, beliefs and estimates will prove to be correct or be achieved, and actual results may vary materially from what is expressed in or indicated by the forward-looking statements. These forward-looking statements are subject to risks and uncertainties, including, among other things, those described in our Annual Report on Form 10-K for the year ended December 31, 2025, under the caption "Risk Factors," and any subsequent Form 10-Q or other filings made with the SEC. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise. This press release is for informational purposes only and shall not constitute, or form a part of, an offer to sell or buy or the solicitation of an offer to sell or the solicitation of an offer to buy any securities. Non-GAAP Financial Measures In addition to disclosing financial results calculated in accordance with United States generally accepted accounting principles (GAAP), this press release and the accompanying earnings presentation present non-GAAP financial measures, such as Distributable Earnings (Loss), Distributable Earnings (Loss) Before Realized Gains and Losses, Distributable Earnings (Loss) per basic common share and Distributable Earnings (Loss) Before Realized Gains and Losses per basic common share, that exclude certain items. Granite Point management believes that these non-GAAP measures enable it to perform meaningful comparisons of past, present and future results of the Company’s core business operations, and uses these measures to gain a comparative understanding of the Company’s operating performance and business trends. The non-GAAP financial measures presented by the Company represent supplemental information to assist investors in analyzing the results of its operations. However, because these measures are not calculated in accordance with GAAP, they should not be considered a substitute for, or superior to, the financial measures calculated in accordance with GAAP. The Company’s GAAP financial results and the reconciliations from these results should be carefully evaluated. See the GAAP to non-GAAP reconciliation table on page 6 of this release. Additional Information Stockholders of Granite Point and other interested persons may find additional information regarding the Company at the Securities and Exchange Commission’s Internet site at www.sec.gov or by directing requests to: Granite Point Mortgage Trust Inc., 1114 Avenue of the Americas, Suite 3020, New York, NY 10036, telephone (212) 364-5500. View source version on businesswire.com: https://www.businesswire.com/news/home/20260805304694/en/ Contacts Investors: Chris Petta, Head of Investor Relations, Granite Point Mortgage Trust Inc., (212) 364-5500, [email protected].

Angel Oak Mortgage (AOMR) came out with quarterly earnings of $0.37 per share, beating the Zacks Consensus Estimate of $0.36 per share. This compares to earnings of $0.11 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +2.78%. A quarter ago, it was expected that this real estate finance company would post earnings of $0.3 per share when it actually produced earnings of $0.18, delivering a surprise of -40%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Angel Oak, which belongs to the Zacks REIT and Equity Trust industry, posted revenues of $41.4 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 1.9%. This compares to year-ago revenues of $35.09 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Angel Oak shares have added about 2% since the beginning of the year versus the S&P 500's gain of 11%. While Angel Oak has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Angel Oak was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.39 on $43.2 million in revenues for the coming quarter and $1.25 on $169.8 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust is currently in the bottom 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Granite Point Mortgage Trust (GPMT), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This real estate investment trust is expected to post quarterly loss of $0.18 per share in its upcoming report, which represents a year-over-year change of +80.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Granite Point Mortgage Trust's revenues are expected to be $8.2 million, up 1.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Angel Oak Mortgage REIT Inc. (AOMR) : Free Stock Analysis Report Granite Point Mortgage Trust Inc. (GPMT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Arbor Realty Trust (ABR) came out with quarterly earnings of $0.1 per share, beating the Zacks Consensus Estimate of $0.07 per share. This compares to earnings of $0.25 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +42.86%. A quarter ago, it was expected that this real estate investment trust would post earnings of $0.16 per share when it actually produced earnings of $0.07, delivering a surprise of -56.25%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Arbor Realty Trust, which belongs to the Zacks REIT and Equity Trust industry, posted revenues of $230.86 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.07%. This compares to year-ago revenues of $240.3 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Arbor Realty Trust shares have lost about 38.3% since the beginning of the year versus the S&P 500's gain of 8.7%. While Arbor Realty Trust has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Arbor Realty Trust was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.11 on $228.42 million in revenues for the coming quarter and $0.34 on $921.65 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust is currently in the bottom 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Granite Point Mortgage Trust (GPMT), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This real estate investment trust is expected to post quarterly loss of $0.18 per share in its upcoming report, which represents a year-over-year change of +80.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Granite Point Mortgage Trust's revenues are expected to be $8.2 million, up 1.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Arbor Realty Trust (ABR) : Free Stock Analysis Report Granite Point Mortgage Trust Inc. (GPMT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

NEW YORK, June 16, 2026--(BUSINESS WIRE)--Granite Point Mortgage Trust Inc. (NYSE: GPMT) ("GPMT," "Granite Point" or the "Company") today announced that the Company’s Board of Directors declared a quarterly cash dividend of $0.05 per share of common stock for the second quarter of 2026. This dividend is payable on July 15, 2026, to holders of record of common stock at the close of business on July 1, 2026. The Company’s Board of Directors also declared a quarterly cash dividend of $0.4375 per share of the 7.00% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock for the second quarter of 2026. This dividend is payable on July 15, 2026, to the holders of record of the Series A Preferred Stock at the close of business on July 1, 2026. Second Quarter Business Update During the quarter, the Company has funded approximately $6.8 million in unpaid principal balance on existing loans. In April, the Company resolved a $76.0 million loan secured by a Chicago, IL, retail property, which previously included an office component. The loan had been risk-rated "5" and was on nonaccrual status. As a result of this transaction and the prior resolution on the office component, the Company expects to realize a write-off of approximately $(30.2) million, which had been reserved for through a previously recorded allowance for credit losses. During the quarter, the Company sold two interests in debt secured by a Dallas, TX, office property. In April, the Company extended the maturity of the Citibank financing facility to April 2027. As of June 12, 2026, the Company carried approximately $58.3 million in unrestricted cash. About Granite Point Mortgage Trust Inc. Granite Point Mortgage Trust Inc. is a Maryland corporation focused on directly originating, investing in and managing senior floating-rate commercial mortgage loans and other debt and debt-like commercial real estate investments. Granite Point is headquartered in New York, NY. Additional information is available at www.gpmtreit.com. Forward-Looking Statements This press release contains, or incorporates by reference, not only historical information, but also forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical in nature and can be identified by words such as "anticipate," "estimate," "will," "should," "expect," "target," "believe," "outlook," "potential," "continue," "intend," "seek," "plan," "goals," "future," "likely," "may" and similar expressions or their negative forms, or by references to strategy, plans or intentions. The illustrative examples herein are forward-looking statements. Our expectations, beliefs and estimates are expressed in good faith, and we believe there is a reasonable basis for them. However, there can be no assurance that management's expectations, beliefs and estimates will prove to be correct or be achieved, and actual results may vary materially from what is expressed in or indicated by the forward-looking statements. These forward-looking statements are subject to risks and uncertainties, including, among other things, those described in our Annual Report on Form 10-K for the year ended December 31, 2025, under the caption "Risk Factors," and our subsequent filings made with the SEC. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise. Additional Information Stockholders of Granite Point and other interested persons may find additional information regarding the Company at the Securities and Exchange Commission’s Internet site at www.sec.gov or by directing requests to: Granite Point Mortgage Trust Inc., 1114 Avenue of the Americas, Suite 3020, New York, NY 10036, telephone (212) 364-5500. View source version on businesswire.com: https://www.businesswire.com/news/home/20260616751490/en/ Contacts Investors: Chris Petta, Head of Investor Relations, Granite Point Mortgage Trust Inc., (212) 364-5500, [email protected].

Interested in Granite Point Mortgage Trust Inc.? Here are five stocks we like better. Granite Point Mortgage Trust reported a first-quarter GAAP net loss of $6 million, or $0.13 per share, and said it remains in a transition phase while it works through legacy loans and higher-cost debt. Management said resolving troubled assets is still the top priority, highlighted by the Chicago retail loan resolution and several other repayments/sales, while four risk-rated 5 loans totaling $189 million remain under review or in active sale processes. The company ended the quarter with $44 million in unrestricted cash and leverage of 1.7x, and expects earnings to improve later in 2026 as it redeploys capital into new originations and potentially capital-light fee-based strategies. Granite Point Mortgage Trust (NYSE:GPMT) reported a first-quarter loss as management said it remains focused on resolving legacy loans, reducing higher-cost debt and preparing to restart portfolio growth later in 2026. On the company’s first-quarter 2026 earnings call, President and Chief Executive Officer Jack Taylor said U.S. commercial real estate markets continued to improve during the quarter, though he noted that geopolitical developments tied to the Iran conflict have added uncertainty to capital markets. Taylor said rising energy prices have increased investor attention on inflation and complicated expectations for future interest rate cuts. → Wells Fargo’s Comeback Is Real—But Not Risk-Free “Notwithstanding some of these headwinds, capital continued to flow into commercial real estate assets,” Taylor said. He added that commercial real estate lending activity is expected to continue improving through 2026, though securitization volumes may moderate and transactions are taking longer to complete. Taylor said Granite Point’s primary objective is to use the improving environment to resolve legacy loans and position the company to begin regrowing its portfolio in the second half of 2026. Since the beginning of the year, the company completed two sizable full loan repayments, sold a B-note secured by a hotel at a price somewhat above par, reached a final resolution on a Chicago retail loan above its carrying value and sold a subordinate interest in debt secured by an office property in Dallas. → Rocket Lab Posts Record Q1 Revenue, Raises Q2 Guidance “These actions furthered our goals of reducing higher cost debt and setting the path for future growth,” Taylor said. Chief Investment Officer and Co-Head of Originations Steve Alpart said Granite Point ended the quarter with $1.6 billion in total loan portfolio commitments, including $1.5 billion of outstanding principal balance and about $68 million of future fundings. The portfolio included 40 investments with an average unpaid principal balance of about $38 million and a weighted average stabilized loan-to-value ratio of 66% at origination. → The Great Crypto Thaw: Regulation Ignites an Infrastructure Boom During the first quarter, Granite Point recorded loan repayments, paydowns, sales and amortization totaling approximately $189 million. That included two loan repayments totaling $174 million and the sale of a $13 million B-note secured by a performing hotel in Hawaii at a price somewhat above par. After future fundings and other investments, the company’s net loan portfolio declined by about $175 million during the quarter. Alpart said the weighted average risk rating of the loan portfolio increased to 3.2 as of March 31 from 2.9 at the end of 2025. The realized loan portfolio yield for the quarter was 6.5%, or 7.9% excluding non-accrual loans. At quarter-end, Granite Point had five loans rated 5, with total unpaid principal balance of about $265 million. After the quarter ended, the resolution of the Chicago retail loan reduced that figure to four loans totaling $189 million. Alpart said three of the four remaining 5-rated loans are in active sales processes that could be completed over coming quarters. The Chicago retail loan, which had been risk-rated 5 and was on non-accrual status, was resolved through a property sale by the borrower. Alpart said the company expects to realize a write-off of approximately $30.2 million, which had been reserved for through a previously recorded $31.3 million allowance for credit losses as of Dec. 31. Alpart also discussed several remaining challenged loans, including a $15 million loan collateralized by a 72-key hotel that was downgraded from a risk rating of 3 to 5. He said Granite Point is in discussions with the borrower and expects a resolution could involve a sale of the hotel. The company is also reviewing resolution alternatives for a $27 million Tempe hotel and retail loan, a $53 million Atlanta multifamily loan and a $93 million Minneapolis office loan, the latter of which Alpart said may have a longer resolution timeline due to local market challenges. Chief Financial Officer Blake Johnson said Granite Point reported a GAAP net loss attributable to common stockholders of $6 million, or $0.13 per basic common share, for the first quarter. The result included a $0.2 million benefit from credit losses. Distributable loss was $3 million, or $0.06 per basic common share. Book value was $7.05 per share at March 31, down $0.24 from the prior quarter. Granite Point’s aggregate CECL reserve was about $149 million, roughly $100,000 higher than the previous quarter. Johnson said the increase in specific reserves on collateral-dependent loans was largely offset by a decline in the general reserve, reflecting improving macroeconomic forecasts in the company’s CECL model and a lower general reserve portfolio balance. Johnson said approximately 81% of the total allowance was allocated to individually assessed loans. At quarter-end, the company had about $334 million of principal balance on loans with specific CECL reserves of about $120 million, representing 36% of unpaid principal balance. Following the Chicago retail loan resolution, Johnson said Granite Point’s specific CECL reserves declined by about $30 million to $90 million, and the principal balance of collateral-dependent loans declined by $76 million to $258 million. He said the transaction resulted in a first-quarter benefit from credit losses of approximately $1.1 million because the resolution was above the company’s year-end carrying value. Granite Point ended the quarter with about $44 million of unrestricted cash, while total leverage declined to 1.7 times from 2.0 times. Johnson said proceeds from loan repayments and a loan sale were used to reduce higher-cost borrowings and pay down CLO bonds. He said the company had about $56 million of cash as of a few days before the call. Johnson said Granite Point expects earnings to improve as it redeploys capital from collateral-dependent loans and REO assets into new originations at target leverage. He estimated that redeployment could increase quarterly EPS by approximately $0.17 to $0.19. He also said the company is evaluating capital-light income opportunities, including fees from joint venture structures with third-party investors. In response to an analyst question, Taylor said potential structures could include originating directly for third-party capital providers, using a combination of Granite Point capital and outside capital, or creating a formal joint venture. Asked about the dividend, Taylor said the company and its board continue to evaluate the dividend in light of market conditions, the loan book and earnings. He acknowledged that Granite Point is currently “under-earning” but said management is considering the company’s longer-term prospects as non-accrual loans are reduced. On borrower discussions, Alpart said Granite Point is taking a more proactive approach with older vintage loans, particularly office loans. He said the company is setting clear expectations with borrowers and pushing for repayment through property sales, refinancings or recapitalizations. Granite Point is also selectively considering loan sales and, in certain cases, may consider loan modifications or taking back properties if it sees upside potential. “We’re pushing hard to turn over the portfolio,” Alpart said. “We’re looking to unlock capital so we can redeploy to higher earning assets.” Granite Point Mortgage Trust, Inc is a specialty finance company that invests directly in commercial real estate debt. The company focuses on originating, acquiring and managing senior preferred and mezzanine loans secured by income-producing real estate across diverse property types, including multifamily, office, industrial and retail assets. Granite Point Mortgage Trust operates as a real estate investment trust (REIT), providing investors with exposure to floating-rate commercial mortgage loan investments. Granite Point's investment strategy centers on structuring loans to deliver attractive risk-adjusted returns, with portfolio allocations spanning senior loans, B-notes and mezzanine financings. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Granite Point Mortgage Trust Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

Image source: The Motley Fool. Wednesday, May 6, 2026 at 11 a.m. ET President and Chief Executive Officer — Jack Taylor Chief Financial Officer — Blake Johnson Chief Investment Officer and Co-Head of Originations — Steve Alpart Chief Development Officer and Co-Head of Originations — Peter Morale Chief Operating Officer — Ethan Leibowitz Managing Director, Head of Investor Relations — Chris Petta Chris Petta: Thank you for joining our call to discuss Granite Point Mortgage Trust Inc.'s First Quarter 2026 Financial Results. With me on the call this morning are Jack Taylor, our President and Chief Executive Officer; Steve Alpart, Chief Investment Officer and Co-Head of Originations; Blake Johnson, our Chief Financial Officer; Peter Morale, our Chief Development Officer and Co-Head of Originations; and Ethan Leibowitz, our Chief Operating Officer. After my introductory comments, Jack will provide a brief recap of market conditions and review our current business activities, discuss our portfolio, and Blake will highlight key items from our financial results. The press release, financial tables, and earnings supplemental associated with today's call were filed yesterday with the SEC along with our Form 10-Q and are available in the Investor Relations section of our website. I would like to remind you that remarks made by management during this call and the supporting slides may include forward-looking statements that are uncertain and outside of the company's control. Forward-looking statements reflect our views regarding future events and are subject to uncertainties that could cause actual results to differ materially from expectations. Please see our filings with the SEC for a discussion of some of the risks that could affect results. We do not undertake any obligation to update any forward-looking statements. We also will refer to non-GAAP measures on this call. This information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP. A reconciliation of these non-GAAP financial measures to the most comparable GAAP measures can be found in our earnings release and slides and are available on our website. I will now turn the call over to Jack. Jack Taylor: Thank you, Chris, and good morning, everyone. We would like to welcome you and thank you for joining us for Granite Point Mortgage Trust Inc.'s First Quarter 2026 Earnings Call. U.S. commercial real estate markets continued their positive trajectory during the first quarter. However, recent geopolitical developments tied to the Iran conflict are influencing the U.S. capital markets, as rising energy prices have sharpened investors' focus on inflation trends and contributed to greater uncertainty about the timing of further interest rate cuts. Notwithstanding some of these headwinds, capital continued to flow into commercial real estate assets. Commercial real estate lending activity is expected to continue to improve through 2026, supported by steady demand and continued investor interest. While securitization volumes may moderate due to broader economic uncertainty surrounding the conflict in Iran and a mixed U.S. outlook, and deals are taking longer to complete, the market has shown strong resilience. We believe that recent fluctuations in the CMBS and CRE CLO spreads, along with a temporary slowdown in unsecured bond issuance, primarily reflect a recalibrating of risk while investors continue to be engaged and constructive in the commercial real estate sector. For Granite Point Mortgage Trust Inc., our primary objective continues to be capitalizing on the improving environment to resolve legacy loans and to set the stage to begin regrowing our portfolio in 2026. To that end, our accomplishments since the beginning of the year included two sizable full loan repayments, the sale of a B note secured by a hotel at a price somewhat above par, the final resolution on the Chicago retail loan above our carrying value, and the successful sale of a subordinate interest in debt secured by an office property located in Dallas, Texas. These actions furthered our goals of reducing higher-cost debt and setting the path for future growth. Given the improved capital markets, and to continue to address our legacy loan portfolio and pending maturity dates, we have been less inclined to provide borrowers with additional time and are pushing further for repayments through property sales, refinancings, and recapitalizations, and we are also selectively looking at some loan sales. In some cases, this approach was a contributing factor in recent downgrades for certain loans in our portfolio. With respect to our two REO assets, we are investing capital where we believe it will improve our outcome and will then seek to exit and extract capital. All of these initiatives will free up capital for us to optimize our balance sheet and set the stage for us to regrow our portfolio in future quarters. A restart of new origination activity is expected to improve our net interest spread and earnings, which has remained a key goal, which Blake will go into further shortly. I would now like to turn the call over to Steve Alpart to discuss our portfolio activities in more detail. Steve Alpart: Thank you, Jack, and thank you all for joining our first quarter earnings call. We ended the quarter with 1.6 billion in total loan portfolio commitments, inclusive of 1.5 billion in outstanding principal balance and about 68 million of future fundings, which accounts for only about 4% of total commitments. Our loan portfolio remains diversified across regions and property types and includes 40 investments with an average UPB of about 38 million and a weighted average stabilized LTV of 66% at origination. As of March 31, our portfolio weighted average risk rating increased to 3.2 from 2.9 at December 31. Realized loan portfolio yield for the first quarter was 6.5%, which, excluding nonaccrual loans, would be 7.9%, or 1.4% higher. We had an active quarter of loan repayments, paydowns, sales, and amortization totaling about 189 million. During the first quarter, we had two loan repayments totaling 174 million and sold a 13 million B note secured by a strong performing hotel in Hawaii at a price somewhat above par. We had about 14 million of future fundings and other investments, resulting in a net loan portfolio reduction of about 175 million for the first quarter. Post quarter-end, we achieved the final resolution on the 76 million Chicago retail loan via a property sale by the borrower after previously resolving the office component in 2025, also through a property sale. The loan had been risk-rated five and was on nonaccrual status. As a result of this transaction and the prior resolution on the office component, the company expects to realize a write-off of approximately 30.2 million, which had been reserved for through a previously recorded 31.3 million allowance for credit losses as of December 31. During the second quarter, we sold a subordinate interest in debt secured by an office property located in Dallas, Texas. I will now provide some color on the remaining risk-rated five loans. At March 31, we had five such loans with a total UPB of about 265 million, which post quarter-end was reduced to four loans totaling 189 million following the resolution of the Chicago retail loan. Three of the four are in active sales processes that we anticipate may be completed over the coming quarters. At quarter-end, we downgraded a 15 million loan collateralized by a 72-key hotel property from a risk rating of three to a risk rating of five. The hotel is well located and institutionally owned by a sponsor with a large amount of cash equity in the asset, who has also made substantial loan paydowns over time. The business plan had been well underway prior to the hotel becoming union [inaudible]. We are in discussions with the borrower and pursuing resolution alternatives, which we expect will involve the sale of the hotel over the coming quarters. Regarding the 27 million Tempe hotel and retail loan and the 53 million Atlanta multifamily loan, which have been discussed in prior quarters, in each of these cases, we are in active dialogue with the borrower and are reviewing resolution alternatives we expect will involve the sale of each property over the next few quarters. Regarding the 93 million Minneapolis office loan, as previously disclosed, we anticipate a longer resolution timeline given the persistent local market challenges. Resolving these remaining five-rated loans remains a top priority. As of quarter-end, we had two loans with a combined UPB of 69 million which have risk ratings of four and are on nonaccrual status. We are reviewing resolution alternatives for each of those loans and will provide additional information as the situations progress. Turning to the REO assets, we continue to have positive leasing successes at the suburban Boston property and remain actively engaged with our partner and the local jurisdiction and other third parties on several value-enhancing repositioning opportunities. We are continuing to invest capital into this property to maximize the outcome and are reviewing various alternatives. The Miami Beach office property is a Class A asset located in a strong submarket. We are having positive leasing discussions with a variety of existing and new tenants. We will prudently invest in the property and continue to review alternatives, including a sale of the property during 2026. As we have shared in prior quarters, our plan is to remain focused on repayments and resolutions. We expect our portfolio balance will trend lower until we start our origination efforts in 2026 to take advantage of attractive investment opportunities and begin to regrow our portfolio. I will now turn the call over to Blake to discuss our financial results. Blake Johnson: Thank you, Steve. Good morning, everyone, and thank you for joining us today. Turning to our financial results, for the first quarter, we reported a GAAP net loss attributable to common stockholders of 6 million, or -$0.13 per basic common share, which includes a benefit from credit losses of 200 thousand, and a distributable loss of 3 million, or -$0.06 per basic common share. Our book value at March 31 was $7.05, a decline of $0.24 from Q4. Our aggregate CECL reserve at March 31 was about 149 million, which is approximately 100 thousand higher than last quarter. The net increase in our specific reserve on our seven collateral-dependent loans was largely offset by a decrease in our general reserve, resulting from improving macroeconomic forecasts in our CECL model and a decrease in the general reserve portfolio balance. Approximately 81% of our total allowance was allocated to individually assessed loans. As of quarter-end, we had about 334 million of principal balance on loans with specific CECL reserves of about 120 million, representing 36% of the unpaid principal balance. Subsequent to quarter-end, the resolution of the Chicago retail loan decreased our specific CECL reserves by approximately 30 million to 90 million and the principal balance for collateral-dependent loans by 76 million to 258 million. The Chicago retail loan had a previously recorded 31.3 million specific reserve as of December 31, and the resolution was above our year-end carrying value, which resulted in a benefit from credit losses of approximately 1.1 million during the first quarter. As a result of this resolution, our CECL reserve as a percentage of our total commitments decreased from 9.4% at March 31 to 7.9%, assuming all else being equal. We believe we are properly reserved, and further resolutions should meaningfully reduce our total CECL reserve balance. Turning to liquidity and capitalization, we ended the quarter with about 44 million of unrestricted cash, and our total leverage decreased relative to the prior quarter from 2.0 times to 1.7 times, as proceeds from the two full loan repayments and one loan sale were used to reduce our higher-cost borrowings and pay down our CLO bonds. As of a few days ago, we carried about 56 million in cash. Our funding mix remains well diversified and stable, and we continue to have very constructive relationships with our financing counterparties. We expect to expand our financing capacity once we return to originating new loans. As we look forward, we expect our earnings to meaningfully improve. For example, our capital in our collateral-dependent loans and REO produced a GAAP net loss, excluding credit losses, of roughly $0.11 per common share during the first quarter, and once we redeploy our capital from these assets into new originations at target leverage, we expect to increase our quarterly EPS by approximately $0.17 to $0.19. In addition, improving our returns is not constrained by our existing capital, as we intend to further improve earnings through continued expense reduction initiatives and expand into new sources of capital-light income such as earning fees from joint venture structures with third-party investors. Given the attractive market opportunity ahead and our earnings potential, we believe the best use of our capital is to continue paying down our higher-cost debt, resolve our remaining nonaccrual loans and REO, and regrow our investment portfolio through new originations beginning later this year. I will now ask the operator to open the line for questions. Operator: Thank you. We will now open the call for questions. Our first question is from Jade Rahmani with KBW. Analyst: Hi, this is Jason Shapshaw on for Jade. Thanks for taking the question. It would be helpful to hear more about the loans that were downgraded to risk four. Just some more color on what drove the negative migration in your view. Steve Alpart: Hey, Jason. Good morning. It is Steve Alpart. Thanks for joining the call this morning. You are asking about the four-rated loans, I believe, in aggregate, if I heard the question correctly? Analyst: It looked like there were a couple of loans that were downgraded to risk four. Is that correct? Steve Alpart: That is correct. High level, we had seven nonaccrual loans at the end of the quarter. After we resolved the Chicago retail loan, that left six. After that loan was resolved, that left five rated-five loans, and there are two additional nonaccrual loans. With respect to the fours that are part of that cohort, high level, what I would say is that we are generally seeing improving markets, but it is uneven, and some of the markets are seeing a delayed recovery. These properties are behind under business plans, and that is why they have been downgraded to a four. For each of these loans, we are in discussions with the borrowers, and we expect to have more color over the coming quarters. Analyst: Great, thanks. And just on your multifamily book, do you have an expectation of getting higher repayments near term? Rent growth has been pretty muted overall for the sector, so it would be great to hear some color on overall performance for that part of your book. Steve Alpart: Sure. It is Steve again. I will take that. Yes, we are seeing a pretty steady rate of multifamily loan repayments. We had one large multifamily loan payoff this quarter, so it has been a pretty steady pace. We like the multifamily sector. We are seeing generally stable fundamentals in most of the markets that we are in. It has been well reported that the new supply picture looks much better as we get out into the future. The trend line in certain markets, particularly in the Sun Belt, has been a little more sluggish than I think a lot of people were expecting. We are seeing the supply picture get better, but there are some ongoing headwinds. The supply is different in every market. Declining immigration has been a factor. Generally, we are seeing improving fundamentals, but it is really asset by asset. We are seeing some borrowers in some markets have more pricing power on rents. Even in cases where borrowers are not getting rent bumps all the way to what they were expecting, the general trend is that we are seeing progress. We have seen a few assets fall behind on business plans, but that has not been the general trend, and where that does happen, we are expecting that, over time, borrowers will be able to push rents. Going back to your question, there is good liquidity in the sector, sentiment is positive, we are seeing payoffs, and we are pushing hard for these older loans to pay off as well. Analyst: Got it, thanks. Did you see any of the rate and geopolitical volatility have any impact on overall activity that may have impacted your book in the first quarter and so far in the second quarter? Have you seen that have any impact just overall? Jack Taylor: Yes. Thank you for the question. I think the overall impact is just a higher degree of uncertainty in the market generally, and that has led to a delay in payments and in resolutions. Not a cessation, but deals are all taking longer because of a higher degree of macro uncertainty, and especially with respect to rates. Analyst: Got it. That makes sense. And then just as my last question, it would be great to hear your current thoughts about the dividend. Given that DE has been below it, I understand that working through risk-five and some of the REO assets will be the main driver of earnings growth, but I wanted to hear your thoughts on the dividend. Jack Taylor: Sure. It is a good question. We are always examining the overall market and what is happening in our loan book and our earnings and the like. Basically, we take a considered approach working with our Board. That is a Board decision and is made thinking about the long-term potential for the company. I would say with the burn-off of the nonaccrual loans, which has had a meaningful drag on our earnings, we expect that to be reduced as we work through them, and we will continue to evaluate the company dividend with respect to future quarters, and we are aware that we are under-earning, but we are looking at the longer-term prospects. Analyst: Great. Thanks for taking the questions. Operator: Thank you. Our next question is from Christopher Muller with Citizens Capital Markets. Analyst: Hey, guys. Thanks for taking the questions. I guess on the subsequent resolution, and sorry if I missed this in your prepared remarks, but did that property move to REO or was it repaid? And then will the entire 30 million write-off come out of the specific reserve balance, so that balance is around 90 million, which I think I heard? Blake Johnson: Hi, good morning, Chris. This is Blake. Thanks for your question. Yes, so this property was not moved to OREO. This was held as a loan as of quarter-end, and as of March 31, the balance of the loan was 76 million. Jack Taylor: So when this resolved during early April, we did have that resulting write-off of around 30 million. Analyst: Got it. And then just looking at the specific reserve balances quarter over quarter, it looks like it increased about 15 million. Was that due to just the New Haven hotel, or was that also the new four-rated loans that came up? Blake Johnson: Yes. It is kind of interesting. I think it is best if you look at the entire reserve. It increased in total around 100 thousand. If you look at the primary drivers, we did have incremental losses on a certain number of collateral-dependent loans, and that was around 15 million in total. But it also included the shift of three of the loans from our general reserve in the previous quarter, which already had a substantial reserve as of December 31. So part of that shift included the balance that was previously in the general reserve. Analyst: Got it. And then just the last one if I could squeeze it in. I hear your comments on looking at JVs and some other different ways to look at the business. Is there anything that you guys are looking at today that you could share? Just what type of JVs would you be interested in? Blake Johnson: I can start first—do you want to take it, Jack? Okay. Thank you. So the point in our prepared remarks was we can introduce capital-light income and JVs, and this would actually help offset some of our operating expenses from an economic standpoint. If we started this today, for example, we would expect to see something between 2 million to 4 million in annual earnings in the first year. If you look at that on an EPS basis, it is around [inaudible] per share, quarterly. It really would increase from there because once you have the book JV start, you would see some momentum. As far as the actual structure itself, I can pass it to Jack, and he can provide some color. Jack Taylor: Yes, thank you. I would just add a couple of things. We have folks that we have known for a long time and some that are new acquaintances who have approached us, and they have a lot of capital. They would like to come into the market, and they know and trust us. So they are thinking and discussing with us what we are calling the capital-light strategies, which can take a number of forms: just originating for them directly where it is all their capital; it can be where it is part our capital and theirs; it could be a formal JV structure. The main point is that we have the infrastructure and the team to originate loans of the sorts—various forms actually—that these counterparties are interested in accessing without having to build their own team. We have been very pleased about the reverse inquiry. Some of them are on pause, in part because it would require us, as it is foreign capital, to carry quite sizable loans in cash for a period of time, so we are not yet able to transact on that type of structure. But others are still under consideration. Analyst: Got it. Very helpful, Jack. And great to hear you guys thinking outside the box and some different avenues you could take. I appreciate you taking the questions today. Jack Taylor: Great. Thank you. Operator: Our next question is from Gabriel Poggi with Raymond James. Analyst: Hey, guys, it is David on for Gabe. I wanted to ask a question around the vintage of some of your larger loans outstanding. How are conversations going with borrowers and their plans for repayment? Just wanted to get a feel for the playbook on some of these legacy office loans. Thanks. Steve Alpart: Hey, it is Steve. I will take that question, and thank you for joining the call this morning. Great question. It is a big point of focus for us. We have made a lot of progress reducing the balance of some of these older vintages loans, including the office loans. We have a very proactive asset management approach. We are in constant dialogue with these borrowers, and we are setting clear expectations. We are now in an improved commercial real estate market environment. As we continue to think about addressing these pending maturity dates, as you heard us say earlier, we have been less inclined to provide borrowers with additional time, and we are pushing very hard for borrower repayments, whether that is through property sales, refinancings, or recaps. We are also selectively looking at some loan sales. We are in discussions with borrowers, delivering clear expectations about getting a process underway, whether that is a refinancing or an equity recap if it is an asset they want to hold; if not, a property sale. There are a few cases where, for credits that we like, we may consider modifying and extending a loan to keep it in the portfolio. And, again, case by case, if we see some upside potential, we may selectively take back properties through either a deed in lieu or possibly through a foreclosure. This applies not just to the office, but it is particularly true for the office loans that you mentioned. We are pushing hard to turn over the portfolio. We will continue to do that over the next couple of quarters, and we are looking to unlock capital so we can redeploy into higher-earning assets. Analyst: Great. Thanks for taking my question. Operator: Thank you. There are no further questions at this time. I would like to hand the floor back over to Jack Taylor for closing comments. Jack Taylor: Thank you, Paul. And thank you again to all that joined us for this call, for your time and attention, and for your support. We look forward to reporting further progress and moving towards the regrowth of our company. Thank you. Operator: This concludes today's conference. You may disconnect your lines at this time. Thank you again for your participation. Before you buy stock in Granite Point Mortgage Trust, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Granite Point Mortgage Trust wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $473,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,204,650!* Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 203% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 6, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Granite Point (GPMT) Q1 2026 Earnings Transcript was originally published by The Motley Fool