Download PDF

1. Company Snapshot

1.a. Company Description

Granite Point Mortgage Trust Inc., a real estate investment trust, originates, invests in, and manages senior floating-rate commercial mortgage loans, and other debt and debt-like commercial real estate investments in the United States.The company provides intermediate-term bridge or transitional financing for various purposes, including acquisitions, recapitalizations, and refinancing, as well as a range of business plans, including lease-up, renovation, repositioning, and repurposing of the commercial property.As of December 31, 2021, its investment portfolio includes 105 commercial real estate loan investments.


Granite Point Mortgage Trust Inc.was founded in 2015 and is headquartered in New York, New York.

Show Full description

1.b. Last Insights on GPMT

Here is a 90-word analysis of the negative drivers behind Granite Point Mortgage Trust Inc.'s recent stock performance: Granite Point Mortgage Trust Inc.'s Q4 2024 earnings release revealed a quarterly loss of $1.98 per share, missing revenue estimates and marking a significant decline from earnings of $0.14 per share a year ago. The company's high loss per share was driven by escalating costs, which overshadowed the positive impact of its dividend announcements and business updates. The disappointing earnings report, combined with the lack of a share buyback announcement, has likely weighed on investor sentiment.

1.c. Company Highlights

2. Granite Point Mortgage Trust's Q2 Earnings Disappoint with GAAP Net Loss

Granite Point Mortgage Trust reported a GAAP net loss attributable to common stockholders of $17 million or negative $0.35 per basic common share, falling short of analysts' estimates of -$0.50474. The company's book value declined by $0.25 from Q1, primarily due to the GAAP net loss. The total allowance for credit losses was reduced by $25 million, indicating the company's efforts to resolve its risk-rated loans.

Publication Date: Aug -16

📋 Highlights
  • GAAP Net Loss:: Reported a $17 million net loss, or $0.35 per share, with book value down $0.25 from Q1 2025.
  • Loan Resolutions:: Achieved $128 million in repayments, partial paydowns, and resolutions, including two nonaccrual loan resolutions.
  • Credit Loss Reserves:: Reduced total allowance for credit losses by $25 million amid improved asset resolutions and debt reductions.
  • Future Originations:: Anticipated $750 million–$1 billion in originations from late 2025 to 2026, pending asset resolutions and market conditions.

Portfolio Performance

The company's loan portfolio remains diversified across regions and property types, with $1.9 billion in total loan commitments and $1.8 billion in outstanding principal balance. The quarter saw an active period of loan repayments, partial paydowns, and resolutions totaling $128 million, with two nonaccrual loans resolved. However, the company still has risk-rated 5 loans to resolve, which could impact its financial performance in the coming quarters.

Outlook and Guidance

Steve Alpart, during the Q&A session, discussed the company's outlook on resolving remaining assets, including the 4 loans in the 4-rated bucket. He also commented on the company's expectation to restart originations in late 2025 or early 2026, with full-year originations for 2026 dependent on asset resolutions and repayments. The company is targeting $750 million to $1 billion in originations from end-2025 to end-2026, which could help improve its financial performance.

Valuation

At current prices, Granite Point Mortgage Trust trades at a P/B Ratio of 0.23 and a Dividend Yield of 7.25%. While the company's valuation appears attractive, its current financial performance and uncertainty surrounding the resolution of its risk-rated loans may justify a cautious stance. Analysts estimate a 29.9% revenue growth for next year, which, if achieved, could lead to a rerating of the stock.

3. NewsRoom

Card image cap

Granite Point Mortgage Trust (NYSE:GPMT) & Cherry Hill Mortgage Investment (NYSE:CHMI) Critical Contrast

Nov -12

Source: defenseworld.net

Card image cap

Granite Point Mortgage Trust Inc. (GPMT) Q3 2025 Earnings Call Prepared Remarks Transcript

Nov -06

Source: seekingalpha.com

Card image cap

Granite Point Mortgage Trust Inc. Reports Third Quarter 2025 Financial Results and Post Quarter-End Update

Nov -05

Source: businesswire.com

Card image cap

Granite Point Mortgage Trust (GPMT) Expected to Announce Quarterly Earnings on Wednesday

Nov -04

Source: defenseworld.net

Card image cap

14% Dividend Yield Is Not Enough

Oct -31

Source: seekingalpha.com

Card image cap

Granite Point Mortgage Trust Inc. Announces Dates for Third Quarter 2025 Earnings Release and Conference Call

Oct -22

Source: businesswire.com

Card image cap

Granite Point Mortgage Trust Inc. Announces Third Quarter 2025 Common and Preferred Stock Dividends and Business Update

Sep -17

Source: businesswire.com

Card image cap

Disinflation Dividend: REIT Earnings Scorecard

Aug -10

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.03%)

6. Segments

Real Estate Investment Trust

Expected Growth: 7.03%

Granite Point Mortgage Trust Inc.'s 7.03% growth in Real Estate Investment Trust (REIT) is driven by increasing demand for mortgage-backed securities, expansion into new markets, and strategic acquisitions. Additionally, the company's diversified portfolio, strong asset management, and efficient cost structure contribute to its growth. Furthermore, the low-interest-rate environment and government support for the housing market also boost the company's performance.

7. Detailed Products

Residential Mortgage Loans

Granite Point Mortgage Trust Inc. originates and acquires residential mortgage loans, providing financing solutions to homeowners and investors.

Commercial Mortgage Loans

The company offers commercial mortgage loans to finance commercial properties, such as office buildings, apartments, and retail centers.

Mortgage-Backed Securities

Granite Point Mortgage Trust Inc. invests in mortgage-backed securities, which represent an ownership interest in a pool of mortgage loans.

Mezzanine Loans

The company provides mezzanine loans, which are a type of hybrid debt that combines features of debt and equity financing.

Preferred Equity

Granite Point Mortgage Trust Inc. offers preferred equity investments, which provide a higher return than common equity but rank below debt in the capital structure.

8. Granite Point Mortgage Trust Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Granite Point Mortgage Trust Inc. operates in a highly competitive market, but the threat of substitutes is mitigated by the company's diversified portfolio and strong relationships with its borrowers.

Bargaining Power Of Customers

Granite Point Mortgage Trust Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's strong brand reputation and customer service help to mitigate the bargaining power of customers.

Bargaining Power Of Suppliers

Granite Point Mortgage Trust Inc. relies on a diverse group of suppliers, including mortgage originators and servicers. While the company has some bargaining power due to its size and scale, suppliers still have some negotiating power due to the specialized nature of their services.

Threat Of New Entrants

The mortgage REIT industry is highly competitive, and new entrants can easily enter the market. Granite Point Mortgage Trust Inc. must continually innovate and improve its operations to stay ahead of new competitors.

Intensity Of Rivalry

The mortgage REIT industry is highly competitive, with many established players competing for market share. Granite Point Mortgage Trust Inc. must continually differentiate itself through its investment strategy and operational efficiency to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 69.43%
Debt Cost 9.30%
Equity Weight 30.57%
Equity Cost 13.04%
WACC 10.44%
Leverage 227.17%

11. Quality Control: Granite Point Mortgage Trust Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
TPG RE Finance Trust

A-Score: 6.7/10

Value: 6.0

Growth: 5.2

Quality: 5.8

Yield: 10.0

Momentum: 5.5

Volatility: 7.7

1-Year Total Return ->

View Full Report
Stock-Card
KKR Real Estate Finance Trust

A-Score: 6.3/10

Value: 8.1

Growth: 3.9

Quality: 6.2

Yield: 10.0

Momentum: 2.0

Volatility: 7.7

1-Year Total Return ->

View Full Report
Stock-Card
Dynex Capital

A-Score: 6.0/10

Value: 2.7

Growth: 3.1

Quality: 5.8

Yield: 10.0

Momentum: 5.0

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
NexPoint Real Estate Finance

A-Score: 6.0/10

Value: 6.0

Growth: 2.2

Quality: 6.5

Yield: 10.0

Momentum: 4.0

Volatility: 7.0

1-Year Total Return ->

View Full Report
Stock-Card
Invesco Mortgage Capital

A-Score: 5.9/10

Value: 5.6

Growth: 3.2

Quality: 5.1

Yield: 10.0

Momentum: 3.5

Volatility: 8.0

1-Year Total Return ->

View Full Report
Stock-Card
Granite Point Mortgage Trust

A-Score: 5.9/10

Value: 8.8

Growth: 1.9

Quality: 5.8

Yield: 10.0

Momentum: 5.0

Volatility: 4.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.76$

Current Price

2.76$

Potential

-0.00%

Expected Cash-Flows