Granite Point Mortgage Trust Inc. Q4 FY2024 earnings call

• 2024 was a year of resolving nonperforming loans, with $344 million in principal balance resolved at or near carrying value and $415 million in loan repayments, etc.
• In 2025, two more office loans totaling about $97 million were resolved.
• Portfolio management emphasizes balance between timing, profitability, etc., and in 2024, the company repurchased about 2.4 million common shares.
• Market sentiment improved, with expectations of improving liquidity and transaction volume in 2025, and opportunities for nonbank lenders.

The loan portfolio at the end of the fourth quarter had total loan portfolio commitments of $2.2 billion and an outstanding principal balance of $2.1 billion, with about $91 million of future fundings. In 2024, the company successfully resolved nine loans totaling approximately $344 million in principal balance at or near carrying value and realized about $415 million of loan repayments, paydowns, and amortization. During the fourth quarter, there was $60 million in funding, $303 million in loan repayments, paydowns, and resolutions, resulting in a net loan portfolio reduction of $243 million. As of year-end, there was $453 million of principal balance in seven nonaccrual loans.

• Expect liquidity and transaction volume to continue improving in 2025.
• Anticipate several remaining rated loan resolutions to finalize in the first half of 2025, though some may take longer.
• Plan to return to new originations later in 2025 as the portfolio turns over.
• Run rate profitability expected to improve as nonperforming loans are resolved and capital is reinvested.

• Uncertainties in loan resolution timelines for remaining rated loans.
• Market conditions affecting liquidity and profitability.
• Potential differences between forward-looking statements and actual results due to uncertainties.

Q: Doug Harter with UBS asked about five-rated assets and comfort on loan ratings.

A: Steve Alpart responded about risk ratings and resolutions like the Louisville Student Housing and Miami Beach office asset.

Q: Steven DeLaney from Citizens JMP asked about CLO opportunities and four-rated loans.

A: Jack Taylor mentioned potential CLO refinancing and Steve Alpart discussed four-rated loans at year-end.

Q: Jade Rahmani from KBW asked about asset management and capital management.

A: Jack Taylor discussed asset management efforts, reasons for downgrades, and capital management decisions regarding dividend and REO.