Loans held-for-investment (USD, thousands)

Allowance for credit losses (USD, thousands)

Loans held-for-investment, net (USD, thousands)

Cash and cash equivalents (USD, thousands)

Restricted cash (USD, thousands)

Real estate owned, net (USD, thousands)

Accrued interest receivable (USD, thousands)

Other assets (USD, thousands)

Total Assets (USD, thousands)

Repurchase facilities (USD, thousands)

Securitized debt obligations (USD, thousands)

Secured credit facility (USD, thousands)

Dividends payable (USD, thousands)

Other liabilities (USD, thousands)

Total Liabilities (USD, thousands)

7.00 % Series A cumulative redeemable preferred stock (USD, thousands)

Common stock (USD, thousands)

Additional paid-in capital (USD, thousands)

Cumulative earnings (USD, thousands)

Cumulative distributions to stockholders (USD, thousands)

Total Granite Point Mortgage Trust Inc. Stockholders’ Equity (USD, thousands)

Non-controlling interests (USD, thousands)

Total Equity (USD, thousands)

Total Liabilities and Stockholders’ Equity (USD, thousands)

205aad9d4dad8a5731506b6f12eab27311e877ea25abc17b611236712c01dc90

Net loss [USD, thousands]

Accretion of discounts and net deferred fees on loans held-for-investment and deferred interest capitalized to loans held-for-investment [USD, thousands]

Amortization of deferred debt issuance costs [USD, thousands]

Provision for credit losses [USD, thousands]

(Gain) loss on extinguishment of debt [USD, thousands]

Amortization of equity-based compensation [USD, thousands]

Proceeds received from deferred interest capitalized on loans held-for-investment [USD, thousands]

Depreciation and amortization on real estate owned [USD, thousands]

Decrease (increase) in accrued interest receivable [USD, thousands]

Decrease (increase) in other assets [USD, thousands]

Increase (decrease) in other liabilities [USD, thousands]

Net cash provided by operating activities [USD, thousands]

Originations, acquisitions and additional fundings of loans held-for-investment, net of deferred fees [USD, thousands]

Proceeds from repayment of loans held-for-investment [USD, thousands]

Increase in other assets, due from servicer on repayments of loans held-for-investment [USD, thousands]

Net cash provided by investing activities [USD, thousands]

Proceeds from repurchase facilities [USD, thousands]

Principal payments on repurchase facilities [USD, thousands]

Principal payments on securitized debt obligations [USD, thousands]

Proceeds from asset-specific financings [USD, thousands]

Proceeds from secured credit facility [USD, thousands]

Payment of debt issuance costs [USD, thousands]

Tax withholding on restricted stock and RSUs [USD, thousands]

Repurchase of common stock [USD, thousands]

Redemption of cumulative redeemable preferred stock [USD, thousands]

Dividends paid on preferred stock [USD, thousands]

Dividends paid on common stock [USD, thousands]

Net cash used in financing activities [USD, thousands]

Net (decrease) increase in cash, cash equivalents and restricted cash [USD, thousands]

Cash paid for interest [USD, thousands]

Cash paid for taxes [USD, thousands]

Transfers of loans held-for-investment to loans held-for-sale [USD, thousands]

Transfers from loans held-for-investment to real estate owned, other assets and other liabilities [USD, thousands]

Cash, cash equivalents, and restricted cash at beginning of period [USD, thousands]

Cash, cash equivalents, and restricted cash at end of period [USD, thousands]

Dividends declared but not paid at end of period [USD, thousands]

Deferred financing costs, not yet paid [USD, thousands]

b9a1b6627c1ece4e10cebeabb001ad1a79e2fd43a2036cec2e0e24ee3d89ed9b

Based on the documents, **the exact cause of the Fee Income spike in Q4 2023 isn’t detailed**. The information indicates that Fee Income in Q4 2023 reached **$53,000**, up from **$0** in the previous quarter and totaled **$954,000** for FY 2022. It is suggested that this change is likely tied to the company’s **reduced loan origination activity** and its **more cautious market stance during 2023**, as it prioritized liquidity and portfolio management over new business generation.  **[0001703644-24-000017_gpmtq4andfy2023earningsrel.htm:0]** **[GPMT_3373715_1]** **[GPMT_3373715_3]** 

What caused Fee Income to spike in Q4 2023?

The **provision for credit losses deepened in Q1 2024** due to a combination of factors. First, **individually assessed collateral-dependent loans** were newly classified, with updated fair value estimates leading to a significant increase, including a contribution of **$62.8 million** from four loans.  **[0001703644-24-000071_gpmt-20240331.htm:12]** **[0001703644-24-000071_gpmt-20240331.htm:47]** **[0001703644-24-000071_gpmt-20240331.htm:48]**  Additionally, **macroeconomic and market challenges**—such as high interest rates, weakening credit fundamentals, reduced liquidity, and declining property values—prompted an increase in the general CECL reserve by **$11.6 million**.  **[0001703644-24-000071_gpmt-20240331.htm:12]** **[0001703644-24-000071_gpmt-20240331.htm:47]**  Moreover, several loans were downgraded to a **risk rating of 5**, reflecting heightened credit risk in challenging property markets.  **[GPMT_3387719_5]** **[GPMT_3387719_3]**  Finally, a substantial portion of loans, amounting to **$690 million**, were on non-accrual status, further impacting the provision.  **[GPMT_3387719_5]** 

Why did Provision for Credit Losses deepen in Q1 2024?

The drop in Net Interest Income in Q1 2024 was primarily driven by a **significant decline in interest income**. Specifically, the interest income from loans held-for-investment fell from **$65,291 thousand** in Q1 2023 to **$51,965 thousand** in Q1 2024, a decrease of **$13,326 thousand**. This decline was largely due to a **higher average balance of nonaccrual loans** and a **lower average balance of interest-earning assets** resulting from increased loan prepayments, despite being partially offset by rising short-term interest rates. Additionally, there was a modest decrease in interest expense of **$2,274 thousand**, which further contributed to the overall drop in Net Interest Income.  **[0001703644-24-000071_gpmt-20240331.htm:48]** **[0001703644-24-000070_gpmtq12024earningsrelease.htm:4]** 

What contributed to the drop in Net Interest Income in Q1 2024?

Granite Point Mortgage Trust’s significant increase in net losses for common stockholders in Q1 2024 was primarily driven by a substantial rise in the **provision for credit losses**, which jumped to **$75.6 million** (up from **$46.4 million**) as the company reserved more for collateral-dependent loans amid heightened uncertainty in the commercial real estate market.  **[0001703644-24-000071_gpmt-20240331.htm:48]** **[0001703644-24-000070_gpmtq12024earningsrelease.htm:0]** **[GPMT_3387719_5]**  Additionally, a decline in **net interest income**—dropping to **$12.5 million** from **$22.9 million**—coupled with approximately **$12 million** in lost interest income from **$690 million** of nonaccrual loans and increased **operating expenses** of **$10.2 million**, further exacerbated the net losses.  **[0001703644-24-000071_gpmt-20240331.htm:48]** **[0001703644-24-000070_gpmtq12024earningssupple.htm:3]** 

What drove the significant increase in net losses for common stockholders in Q1 2024?

The documents note that Q3 2024’s EPS change was influenced by several one‐time factors. In Q3, Granite Point Mortgage Trust recorded a **provision for credit losses of $27.9 million** (or **$(0.55) per share**) and **loan write-offs of $44.6 million** (or **$(0.88) per share**) that were partly offset by **recoveries of $8.8 million** (or **$0.17 per share**) and adjustments related to nonaccrual loan resolutions. While these items collectively resulted in a GAAP net loss of **$(0.69) per basic share** in Q3 (a marked improvement compared to the **$(1.53) per share loss** in Q1), the documents do not provide a direct explanation comparing the two periods. In short, improvement appears to derive in part from the partial offsetting of write-offs by recoveries and nonrecurring adjustments, though a detailed, comparative breakdown is not available in the documents.  **[0001703644-24-000071_gpmt-20240331.htm:4]** **[0001703644-24-000134_gpmt-20240930.htm:4]** **[0001703644-24-000133_gpmtq32024earningsrelease.htm:0]** 

What factors led to the EPS improvement in Q3 2024?

2524b7236631b2956440bc97da4e55462955f06239df5a96ede2c7c6423ec000

Total Interest Income (USD, thousands)

Total Interest Expense (USD, thousands)

Net Interest Income (USD, thousands)

Revenue from Real Estate Owned Operations (USD, thousands)

Provision for Credit Losses (USD, thousands)

Gain (Loss) on Extinguishment of Debt (USD, thousands)

Fee Income (USD, thousands)

Total Other (Loss) Income (USD, thousands)

Compensation and Benefits (USD, thousands)

Servicing Expenses (USD, thousands)

Expenses from Real Estate Owned Operations (USD, thousands)

Other Operating Expenses (USD, thousands)

Total Expenses (USD, thousands)

(Loss) Income Before Income Taxes (USD, thousands)

(Benefit from) Provision for Income Taxes (USD, thousands)

Net (Loss) Income (USD, thousands)

Dividends on Preferred Stock (USD, thousands)

Net (Loss) Income Attributable to Common Stockholders (USD, thousands)

Basic (Loss) Earnings per Weighted Average Common Share (USD)

Diluted (Loss) Earnings per Weighted Average Common Share (USD)

48e9559b75bcf6488e325af727b714ba553626b0e4a783d3b5c2c5e66afd2d47

a4e67adaa4d43bd7e21e2df7e139be04178cc7644ed42ba73791db1d7dd725eb

Current Assets (USD, thousands)

Cash and Cash Equivalents (USD, thousands)

Accounts Receivable (USD, thousands)

Inventory (USD, thousands)

Non-Current Assets (USD, thousands)

Property, Plant, and Equipment (PP&E) (USD, thousands)

Goodwill (USD, thousands)

Intangible Assets (USD, thousands)

Current Liabilities (USD, thousands)

Accounts Payable (USD, thousands)

Short-term Debt (USD, thousands)

Accrued Expenses (USD, thousands)

Non-Current Liabilities (USD, thousands)

Long-term Debt (USD, thousands)

Lease Liabilities (USD, thousands)

Deferred Tax Liabilities (USD, thousands)

Shareholders' Equity (USD, thousands)

Retained Earnings (USD, thousands)

Common Stock (USD, thousands)

Additional Paid-in Capital (USD, thousands)

a5e632214c61a86b85569b947c2bb112ada397f5d775c0b0ec124ec4130e19b5

Total Revenue (USD, thousands)

Cost of Goods Sold (COGS) (USD, thousands)

SG&A (USD, thousands)

R&D (USD, thousands)

Depreciation and Amortization (USD, thousands)

Interest Expense (USD, thousands)

Operating Income (EBIT) (USD, thousands)

Net Income (USD, thousands)

EPS - Basic (USD)

EPS - Diluted (USD)

0298530fb3eb9d4f39ee4e572d11d63002c3289792252c8a8e7554af825d6f95

Adjustments for Non-Cash Items (USD, thousands)

Stock-Based Compensation (USD, thousands)

Changes in Working Capital (USD, thousands)

Capital Expenditures (CapEx) (USD, thousands)

Proceeds from / Repayments of Debt (USD, thousands)

Share Repurchases (USD, thousands)

Dividend Payments (USD, thousands)

Net Change in Cash (USD, thousands)

6783880f8f372f04775d428b4a60d27e8fcc94fa73f3d4799cc77aedf518f5c7

Total Interest Income

- Loans held-for-investment

- Cash and cash equivalents

Other Income (Loss)

- Revenue from REO operations

- Provision for credit losses

- Fee income

- Loss on extinguishment of debt

- Realized losses on sales

Total Revenue

47f701009aa701ee85ac3e0f146019e9967a53493358ee83eea5dd510fab76ad

Granite Point Mortgage Trust (GPMT)

Financials