Granite Point Mortgage Trust Reports $10.6 Million Net Loss in Q1 2025, Revenue Declines to $35.1 Million

Granite Point Mortgage Trust Inc. reported a net loss attributable to common stockholders of $10.6 million, or $(0.22) per share, for the first quarter of 2025, a significant improvement compared to a net loss of $77.7 million, or $(1.53) per share, in the same period last year. The company’s total revenue for the quarter was $35.1 million, down from $54.1 million in the prior year, primarily due to a decrease in interest income from loans held-for-investment, which fell to $34.3 million from $51.7 million. The decline in revenue was attributed to a lower average balance of interest-earning assets and a decrease in short-term interest rates.

In terms of operational changes, Granite Point's loans held-for-investment decreased to $1.94 billion as of March 31, 2025, from $2.10 billion at the end of 2024. The company also reported a decrease in its allowance for credit losses, which fell to $180.2 million, or approximately 8.8% of total loan commitments, down from $210.1 million in the previous quarter. This reduction was primarily due to write-offs totaling $24.6 million during the quarter, reflecting the resolution of two senior loans previously placed on nonaccrual status.

Strategically, Granite Point acquired an office property in Miami Beach, Florida, with a carrying value of $72.5 million through a negotiated deed-in-lieu of foreclosure. The company also funded $10.5 million in prior loan commitments and upsizes during the quarter. As of March 31, 2025, the company maintained a portfolio of 50 loan investments with an aggregate unpaid principal balance of $1.9 billion and total commitments of $2.0 billion, with a weighted average loan-to-value ratio of 64.5%.

Looking ahead, Granite Point's management expressed caution regarding the macroeconomic environment, which has been characterized by elevated interest rates and volatility in the commercial real estate market. The company noted that these conditions could impact borrowers' ability to service their loans, potentially leading to further non-performance. Despite these challenges, Granite Point remains focused on managing its portfolio and maintaining liquidity, with unrestricted cash of $85.7 million as of the end of the quarter. The company continues to evaluate its financing options and may pursue additional capital-raising activities to support its investment strategy.