Granite Point Q3 Loss Widens to $60.3 Million on Higher Loan Reserves

Granite Point Mortgage Trust lost $60.3 million, or $12.50 a share, in the third quarter, the commercial real estate lender said after the market close on Wednesday, Nov. 4, as it set aside $45.4 million for credit losses. A year earlier it lost $0.6 million, or $0.12 a share, according to the results it furnished to the Securities and Exchange Commission with a Form 8-K.

Granite Point (NYSE: GPMT), based in New York, makes senior floating-rate loans on commercial property. Its distributable loss, a non-GAAP measure, was $33.7 million, or $6.99 a share, including $25.3 million of write-offs. Before realized gains and losses, the distributable loss was $8.4 million, or $1.74 a share. Per-share figures reflect a one-for-ten reverse stock split on Oct. 5.

Why did Granite Point's loss widen?

Mostly because of loan reserves and thinner interest income. The $45.4 million provision compares with a $1.6 million reserve release a year earlier. Net interest income fell to $0.4 million from $10.3 million, as interest income on loans dropped to $18.1 million from $33.0 million and interest expense was $18.0 million.

Measure	Sept. 30, 2026	Dec. 31, 2025
Loans held for investment	$1.31 billion	$1.68 billion
Allowance for credit losses	$185.2 million	$145.9 million
Repurchase facilities	$726.7 million	$439.2 million
Securitized debt obligations	None	$643.5 million
Cash and cash equivalents	$44.7 million	$66.0 million
Total equity	$420.5 million	$552.8 million

Source: Granite Point third-quarter 2026 results release, Exhibit 99.1 to Form 8-K.

Granite Point said it resolved two loans rated 5 in the quarter. It listed resolutions of a $52.4 million multifamily loan in Stockbridge, Georgia, and a $14.7 million hotel loan in New Haven, Connecticut. Office loans of $13.7 million in Cincinnati and $5.8 million in Valencia, California, repaid in full. In all, repayments, paydowns, resolutions and amortization totaled $89.5 million, against $7.9 million of new fundings.

At Sept. 30 the portfolio had $1.4 billion of commitments, all senior loans and 97% floating rate. The weighted average risk rating was 3.3 and the realized loan portfolio yield was 5.3%. Book value was $44.54 a share, after $38.58 a share of total CECL reserve.

How is Granite Point funding its loans now?

Mostly through repurchase financing, now concentrated with JPMorgan. Granite Point extended and upsized its JPMorgan facility to July 2028, with three one-year extension options. It moved all assets from its Citibank and Morgan Stanley repurchase facilities onto the JPMorgan line, which it said reduces the cost of funds for those assets. It also refinanced its two remaining legacy CLOs, GPMT 2021-FL3 and GPMT 2021-FL4, and reported no securitized debt at Sept. 30. Its total leverage ratio was 1.9x. Our warehouse line of credit guide explains how repurchase facilities like these work. For the benchmarks floating-rate loans are priced over, see hard money and private lending rates today.

The board declared a common dividend of $0.10 a share, against $0.50 a year earlier on a split-adjusted basis. "As our Board continues its previously announced review of alternatives to enhance stockholder value, we remain focused on prudently managing our portfolio by pursuing further repayments, resolutions and REO sales," Chief Executive Jack Taylor said in the release.

Since Sept. 30, Granite Point has funded about $2.4 million and received an $11.5 million partial paydown on a California office loan. It had about $38.8 million of unrestricted cash on Nov. 2. The company holds its earnings call at 11 a.m. ET on Thursday, Nov. 5. Peer lender Claros Mortgage Trust also reported this week; see our story on Claros selling watchlist loans.