Group 1 - Granite Point Mortgage Trust (NYSE: GPMT) has experienced a challenging year, with its common equity declining by 36% [1] - The mortgage REIT primarily holds a portfolio of commercial property-backed loans, historically focusing on office properties [1] - The equity market plays a significant role in wealth creation or destruction over the long term, with daily price fluctuations contributing to this dynamic [1] Group 2 - Pacifica Yield aims to achieve long-term wealth creation by focusing on undervalued, high-growth companies, high-dividend stocks, REITs, and green energy firms [1]

Third Quarter 2024 Earnings Supplemental November 7, 2024 Safe Harbor Statement This presentation 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-l ...

Granite Point Mortgage Trust Inc. (NYSE:GPMT) Q3 2024 Earnings Conference Call November 7, 2024 11:00 AM ET Company Participants Chris Petta - Investor Relations Jack Taylor - President and Chief Executive Officer Steve Alpart - Chief Investment Officer and Co-Head-Originations Marcin Urbaszek - Chief Financial Officer Conference Call Participants Steve DeLaney - Citizens JMP Douglas Harter - UBS Jade Rahmani - KBW Operator Good morning. My name is Christine and I will be your conference facilitator. At thi ...

Granite Point Mortgage Trust (GPMT) came out with a quarterly loss of $0.04 per share versus the Zacks Consensus Estimate of a loss of $0.96. This compares to earnings of $0.18 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 95.83%. A quarter ago, it was expected that this real estate investment trust would post a loss of $0.08 per share when it actually produced a loss of $0.05, delivering a surprise of 37.50%.Over the last f ...

Financial Performance - GAAP net loss attributable to common stockholders for Q3 2024 was $(34.6) million, or $(0.69) per basic share[103]. - Distributable loss to common stockholders for Q3 2024 was $(38.0) million, or $(0.75) per basic share, including $(44.6) million in write-offs[103]. - GAAP net loss attributable to common stockholders for Q3 2024 was $34.6 million, compared to a loss of $24.5 million in Q3 2023[107]. - Distributable loss earnings for Q3 2024 were $38.0 million, significantly higher than a loss of $7.3 million in Q3 2023[107]. - The book value per share of common stock decreased to $9.25 as of September 30, 2024, down from $12.91 at December 31, 2023[108]. - Total interest income for the quarter was $66,687 thousand, compared to $202,232 thousand for the nine months ended September 30, 2023[1]. - Net interest income for the nine months ended September 30, 2024, was $28.3 million, down from $64.7 million for the same period in 2023[158]. Loan Portfolio and Credit Losses - Total allowance for credit losses decreased by $(7.9) million, totaling $259.0 million, approximately 10.5% of total loan commitments of $2.5 billion[103]. - The company recorded a provision for credit losses of $(27.9) million for Q3 2024, which was excluded from Distributable Earnings[105]. - The weighted average risk rating of the loan portfolio increased to 3.1 from 2.8 at December 31, 2023[111]. - Nine loans with a risk rating of "5" had an aggregate principal balance of $508.5 million, with an allowance for credit losses of $200.3 million[123]. - Provision for credit losses for Q3 2024 was $(27.9) million compared to $(60.8) million in Q2 2024, reflecting a smaller increase in the allowance for certain loans[154]. - The provision for credit losses for the nine months ended September 30, 2024, was $(164.2) million compared to $(83.2) million in 2023, driven by an increase in the allowance for certain loans[161]. Operational Metrics - The company maintained a portfolio of 62 loan investments with an aggregate unpaid principal balance of $2.3 billion and total commitments of $2.5 billion[103]. - The company funded $9.8 million under existing loan commitments during Q3 2024[111]. - Total loan activity for Q3 2024 resulted in net reductions of $274.8 million in unpaid principal balance, compared to $187.6 million in Q3 2023[110]. - The company achieved a 5.50% increase in senior loans for the latest quarter, reflecting strong demand[115]. - Revenue from REO operations increased to $3.8 million in Q3 2024 from $1.1 million in Q2 2024, attributed to the first full quarter of activity from a recent acquisition[155]. Liquidity and Capitalization - At September 30, 2024, the company had unrestricted cash of $113.5 million and $53.6 million of unlevered REO assets[103]. - The company maintained unrestricted cash liquidity of $113,500,000, exceeding the required minimum of $30,000,000[134]. - The total debt-to-equity ratio was 2.2:1.0 as of September 30, 2024, reflecting an increase from 2.1:1.0 as of December 31, 2023[137]. - The company had cash and cash equivalents of $113.5 million as of September 30, 2024, with no approved but unused borrowing capacity[167]. - The debt-to-equity ratio improved from 2.5:1.0 to 2.2:1.0 between June 30, 2024, and September 30, 2024, primarily due to a reduction in total outstanding debt[165]. Market Conditions and Risks - The office property market is facing higher vacancies and slower leasing activity due to remote work arrangements, impacting borrowers' performance[101]. - Recent macroeconomic challenges, including inflation and high interest rates, have adversely affected borrowers and the overall economy, impacting the company's operations[176]. - The Federal Reserve's interest rate increases have raised the company's interest expense, which may not be fully offset by increases in interest income[178]. - The company is exposed to risks related to borrower non-performance, particularly if interest rates rise significantly, potentially impacting cash flows[182]. - Liquidity risk is associated with financing longer-maturity investments with shorter-term borrowings, which may lead to adverse changes in liquidity if collateral values decrease[186]. Future Outlook and Strategy - Overall, the company is optimistic about future performance, projecting a steady increase in loan demand across various sectors[115]. - The company is focusing on market expansion, particularly in Texas and California, where growth rates are above 3%[115]. - The company intends to distribute substantially all of its taxable income to stockholders to comply with REIT provisions, with distributions subject to board discretion[172]. - The company actively explores additional funding facilities to diversify financing sources amid market volatility and high interest rates[1]. - The company aims to mitigate credit risk by diversifying its investment portfolio across geographical regions and property types[1].

Granite Point Mortgage Trust Inc. Reports Third Quarter 2024 Financial Results and Post Quarter-End Update NEW YORK, November 6, 2024 – Granite Point Mortgage Trust Inc. (NYSE: GPMT) ("GPMT," "Granite Point" or the "Company") today announced its financial results for the quarter ending September 30, 2024, and provided an update on its activities subsequent to quarter-end. An earnings supplemental containing third quarter 2024 financial results can be viewed at www.gpmtreit.com. "Our third quarter results ar ...

Mortgage rates have increased after declining since the announcement of rate cuts. The average 30-year fixed mortgage rate rose to its highest level since the week ending Aug. 9 at 6.52%, according to the Mortgage Bankers Association survey. This is the third consecutive week that mortgage rates have risen. Mortgage rates are usually linked to movement in treasury yields. Specifically, the 10-year Treasury is seen as the biggest influence on mortgage rates, and yields for the 10-year have increased in recen ...

Core Viewpoint - Granite Point Mortgage Trust (GPMT) has experienced a significant decline in its book value, primarily due to distressed loans tied to US office real estate, leading to a 50% drop in stock price over the past year [1]. Financial Performance - GPMT reported a fiscal 2024 second-quarter book value of $9.84 per share, down from $11.14 per share in the first quarter, marking an 11.7% decline [1]. - The loan portfolio had an outstanding principal balance of $2.6 billion across 68 investments, with a weighted average yield of 7% and a remaining term of 1.5 years [2]. - Revenue for the second quarter was $9.24 million, a 58.6% decrease year-over-year, missing consensus estimates by $1.07 million [4]. Dividend and Shareholder Impact - GPMT declared a quarterly cash dividend of $0.05 per share, a 67% reduction from the previous payout, resulting in an annualized yield of 7.7% [3]. - The dividend cut is expected to save $0.40 per share in book value, but the company may need to consider suspending dividends entirely to stabilize its financial position [4]. Loan Portfolio and Risk Assessment - The weighted average portfolio risk rating is 3.0, with 28% of loans rated 4 and 5, indicating a significant risk of principal loss [5]. - GPMT has ten loans rated 5, totaling an aggregate balance of $545.2 million, with 40% of this balance in office collateralized loans [7]. Strategic Actions - The company funded $17.5 million in loans during the second quarter while repaying $103.7 million, ending the quarter with $86 million in unrestricted cash and a leverage ratio of 2.5x [8]. - GPMT is focusing on resolving existing problem loans and improving its credit profile while considering share buybacks due to the current discount to book value [8]. Market Outlook - The company is expected to face downward pressure on yield due to pending Federal Reserve rate cuts, which could impact its near-term value [8]. - Until the book value stabilizes and the loan portfolio risk rating improves, GPMT's common shares are not recommended for purchase [9].

Second Quarter 2024 Earnings Supplemental August 6, 2024 Safe Harbor Statement This presentation 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-lo ...

Granite Point Mortgage Trust Inc. (NYSE:GPMT) Q2 2024 Earnings Conference Call August 6, 2024 11:00 AM ET Company Participants Chris Petta – Investor Relations Jack Taylor – President and Chief Executive Officer Steve Alpart – Chief Investment Officer and Co-Head-Originations Marcin Urbaszek – Chief Financial Officer Conference Call Participants Steve DeLaney – Citizens JMP Douglas Harter – UBS Stephen Laws – Raymond James Jade Rahmani – KBW Operator Good morning. My name is Darrel and I will be your confer ...