Granite Point Mortgage Trust Inc. reported a significant decline in its financial performance for the fiscal year ending December 31, 2024, with a net loss attributable to common stockholders of $221.5 million, or $4.39 per share, compared to a loss of $77.6 million, or $1.50 per share, in the previous year. The company generated distributable earnings of $(143.9) million, or $(2.85) per share, which included a substantial provision for credit losses of $201.4 million. The allowance for credit losses increased to $201 million, representing approximately 9.2% of total loan commitments of $2.2 billion as of year-end.
The company’s loan portfolio consisted of 54 commercial real estate loans with an aggregate principal balance of $2.1 billion, down from $2.7 billion in 2023. The weighted average risk rating of the portfolio increased to 3.1 from 2.8, indicating a deterioration in credit quality. The company also reported a significant write-off of $146.3 million during the year, primarily related to loans that had been assessed individually. The office property market's challenges, including higher vacancies and reduced leasing activity due to remote work trends, contributed to the increased credit losses.
In terms of strategic developments, Granite Point extended its financing facilities, including a $250 million facility with Morgan Stanley and a $100 million secured credit facility, while also terminating its Goldman Sachs financing facility. The company repurchased 2.4 million shares of its common stock at an average price of $3.16 per share, as part of its ongoing share repurchase program, which has a total authorization of 12 million shares. As of December 31, 2024, the company had unrestricted cash of $87.8 million, which is subject to certain liquidity covenants.
Looking ahead, Granite Point's management expressed caution regarding the macroeconomic environment, characterized by elevated interest rates and geopolitical uncertainty, which could continue to impact the commercial real estate market and borrower performance. The company aims to maintain its REIT status by distributing at least 90% of its taxable income, although its ability to do so may be affected by ongoing market conditions. The management team remains focused on actively managing its portfolio and liquidity to navigate the current challenges and position the company for future growth.
About Granite Point Mortgage Trust Inc.
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