Granite Point Mortgage Trust Inc. Announces Second Quarter 2024 Common and Preferred Stock Dividends and Business Update
19 June 2024 - 6:59AM
Business Wire
Granite Point Mortgage Trust Inc. (NYSE: GPMT) (“GPMT,” “Granite
Point” or the “Company”) today announced that the Company’s Board
of Directors declared a quarterly cash dividend of $0.05 per share
of common stock for the second quarter of 2024. This dividend is
payable on July 15, 2024, to holders of record of common stock at
the close of business on July 1, 2024.
The Company’s Board of Directors also declared a quarterly cash
dividend of $0.4375 per share of the 7.00% Series A
Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock for
the second quarter of 2024. This dividend is payable on July 15,
2024, to the holders of record of the Series A Preferred Stock at
the close of business on July 1, 2024.
“In setting the current level of our common dividend, the Board
considered a number of factors, including our strategic focus on
supporting book value during a period of reduced profitability of
the Company due to the ongoing real estate market challenges,” said
Jack Taylor, President and Chief Executive Officer of Granite
Point. “Additionally, it will enhance our flexibility to
opportunistically repurchase our common shares. Consistent with our
prevailing view that our stock represents an attractive value for
investors, during the quarter we repurchased 0.5 million shares of
our common stock at a compelling valuation versus our book value.
We have also continued to make progress resolving our nonperforming
loans, two of which are noted below, and which such resolutions
should improve our run-rate profitability. We believe that our
strategy of protecting both sides of the balance sheet through
emphasizing liquidity and proactive asset management will position
us well for long-term success.”
Second Quarter Business Update
- In June, the Company resolved an $11.6 million senior loan that
had been on nonaccrual status. The resolution involved a
coordinated sale of the collateral property, a multifamily asset
located in Milwaukee, WI. As a result of this transaction, the
Company expects to realize a loss of approximately $(2.5) million,
which had been reserved for through a previously recorded allowance
for credit loss on this loan and will be reflected in the Company’s
financial results for the second quarter of 2024.
- An office property located in Los Angeles, CA, securing the
Company’s $37.6 million senior loan, is currently under contract to
be sold. The loan was previously placed on nonaccrual status. The
potential transaction is expected to close during the third quarter
of 2024.
- During the quarter, the Company repurchased 0.5 million shares
of its common stock at an average price of $3.10 per share for a
total of approximately $1.6 million. Consistent with its flexible
capital return strategy and the goal of supporting long-term
shareholder value, since June of 2021, the Company has repurchased
approximately 5.4 million of its common shares representing
approximately 10% of its common shares outstanding.
- The Company funded approximately $10 million on existing loan
commitments during the quarter and realized about $45 million in
repayments and paydowns, excluding the nonaccrual resolution
referenced above.
About Granite Point Mortgage Trust Inc.
Granite Point Mortgage Trust Inc. is a Maryland corporation
focused on directly originating, investing in and managing senior
floating-rate commercial mortgage loans and other debt and
debt-like commercial real estate investments. Granite Point is
headquartered in New York, NY. Additional information is available
at www.gpmtreit.com.
Forward-Looking Statements
This press release contains, or incorporates by reference, not
only historical information, but also forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements are not historical in nature
and can be identified by words such as “anticipate,” “estimate,”
“will,” “should,” “expect,” “target,” “believe,” “outlook,”
“potential,” “continue,” “intend,” “seek,” “plan,” “goals,”
“future,” “likely,” “may” and similar expressions or their negative
forms, or by references to strategy, plans or intentions. The
illustrative examples herein are forward-looking statements. Our
expectations, beliefs and estimates are expressed in good faith,
and we believe there is a reasonable basis for them. However, there
can be no assurance that management's expectations, beliefs and
estimates will prove to be correct or be achieved, and actual
results may vary materially from what is expressed in or indicated
by the forward-looking statements.
These forward-looking statements are subject to risks and
uncertainties, including, among other things, those described in
our Annual Report on Form 10-K for the year ended December 31,
2023, under the caption “Risk Factors,” and our subsequent filings
made with the SEC. Forward-looking statements speak only as of the
date they are made, and we undertake no obligation to update or
revise any such forward-looking statements, whether as a result of
new information, future events or otherwise.
Additional Information
Stockholders of Granite Point and other interested persons may
find additional information regarding the Company at the Securities
and Exchange Commission’s Internet site at www.sec.gov or by
directing requests to: Granite Point Mortgage Trust Inc., 3 Bryant
Park, 24th floor, New York, NY 10036, telephone (212) 364-5500.
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version on businesswire.com: https://www.businesswire.com/news/home/20240618528575/en/
Investors: Chris Petta, Investor Relations, Granite Point
Mortgage Trust Inc., (212) 364-5500, investors@gpmtreit.com
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