Company releases full-year 2024 financial results
Granite Point Mortgage Trust (GPMT) has released its financial results for the fourth quarter and full year of 2024, reflecting both the challenges of credit losses and renewed momentum in commercial and multifamily lending.
Granite Point’s GAAP net loss for the year was $221.5 million ($4.39 per share), including $201.4 million in credit loss provisions. Distributable earnings showed a loss of $143.9 million ($2.85 per share), primarily due to loan write-offs totaling $146.3 million, offset partially by recoveries of $8.8 million.
Despite the net loss, the New York-headquartered firm, which originates and manages senior floating rate commercial mortgage loans and other commercial real estate investments, said it remained focused on resolving nonperforming loans and strategically repurchasing shares.
The company resolved over $340 million in nonperforming loans and received $415 million in loan repayments. Additionally, $106.3 million in new loan fundings were completed, with a $48 million loan assumption tied to a restructuring.
As part of its capital allocation strategy, Granite Point repurchased 2.4 million shares at an average price of $3.16 per share, adding $0.28 per share in book value accretion.
“We have made substantial progress in successfully executing on our primary objective by resolving nonperforming loans totaling over $340 million in 2024, with several more resolutions either closed or well underway in 2025,” GPMT president and CEO Jack Taylor said in a Press release. “We also received 12 loan repayments of about $415 million.
“While remaining proactive in our portfolio management approach, and consistent with our flexible capital allocation strategy, during 2024 we redeployed capital into our own securities, repurchasing 2.4 million of common shares, reflecting our strong belief that our stock continues to be undervalued.”
Commercial real estate lending rebounded strongly in late 2024, with total commercial and multifamily loan originations surging 84% year-over-year in Q4, according to the Mortgage Bankers Association (MBA).
This resurgence, largely driven by a temporary dip in interest rates and a post-election boost in market sentiment, is expected to carry into 2025. The MBA forecasts a 16% increase in originations this year, bringing total lending volume to $583 billion, with multifamily loans reaching $361 billion.
Q4 performance
For the fourth quarter, GPMT reported a GAAP net loss of $42.4 million ($0.86 per share), including $37.2 million in credit loss provisions. Distributable earnings for the quarter reflected a loss of $98.2 million ($1.98 per share), impacted by $95.2 million in loan write-offs.
The company’s loan portfolio declined by $242.7 million, as five loans totaling $127.6 million were repaid, while four resolutions accounted for $175.6 million in reductions. However, $60.5 million in new fundings were completed, including another $48 million loan assumption.
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Granite Point ended the year with a 98% floating rate loan portfolio, with $2.2 billion in total loan commitments, a 6.6% realized yield, and a weighted average loan-to-value (LTV) at origination of 64.4%.
The company also declared a $0.05 per share common stock dividend and a $0.4375 per share dividend for its Series A preferred stock.
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