Granite Point Mortgage Trust Q4 net loss impacted by credit loss provision

Overview

• Mortgage REIT's Q4 net loss was $27.4 mln, impacted by $14.4 mln credit loss provision

• Company's loan portfolio is 97% floating rate, with $1.8 bln in total commitments

• Post-Q4, company reduced leverage ratio from 2.0x to 1.7x

Outlook

• Granite Point plans to reallocate capital for new originations later in 2026

Result Drivers

• CREDIT LOSS PROVISION - Q4 net loss impacted by $14.4 mln provision for credit losses

• LEVERAGE REDUCTION - Post-Q4, co reduced leverage ratio from 2.0x to 1.7x and decreased cost of financing by 60bps

• FLOATING RATE PORTFOLIO - 97% of loan portfolio is floating rate, with $1.8 bln in total commitments

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialized reits peer group is "buy"

• Wall Street's median 12-month price target for Granite Point Mortgage Trust Inc is $2.88, about 26.7% above its February 11 closing price of $2.27

Press Release: ID:nBw2QHFCPa

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