CEO points to strong liquidity position, despite results
Granite Point Mortgage Trust Inc. (GPMT), a real estate credit company, has released its financial results for the fourth quarter of 2023 – showing a considerable net loss - as well as the full year ending on December 31, 2023.
“During 2023, in light of the challenging macro environment, we prudently managed our business by actively managing our loan portfolio and maintaining a strong liquidity position, actions which protected our investors’ capital,” said Jack Taylor, president and chief executive officer of GPMT.
For the last quarter of 2023, GPMT saw a recognized GAAP net loss of $17.1 million and a generated distributable loss of $26.4 million. Its book value per common share stood at $12.91 by the end of the year, which included a $2.71 per common share of the total CECL reserve.
The firm also managed to fund a total of $15.2 million in prior loan commitments and upsizes. It realized about $255.2 million of total UPB in loan repayments, principal paydowns, amortization, and loan resolutions.
Ending the fourth quarter with over $188 million in cash on hand, the firm also managed to increase its JPMorgan financing facility’s borrowing capacity by up to $525 million, which contributed to additional cash proceeds of $100 million.
How did GMPT perform across 2023?
According to Taylor, GPMT realized over $725 million of loan repayments, paydowns, and resolutions over the course of the entire year. The firm was also able to repay its maturing convertible notes with cash as well as maintain a level of leverage that continues to be below its target range.
GPMT’s proactive portfolio management has also led to a reduction in its office exposure by 30% within the last few years.
“While maintaining a defensive stance, we have opportunistically deployed capital into our own securities, and, given the attractive relative value, during 2023 we repurchased about 3.8% of our common shares, generating attractive returns and meaningful book value accretion for our shareholders,” it was stated.
The firm has funded $7.1 million on existing loan commitments for the first quarter of 2024 so far. It has also managed to receive $5.9 million from payoffs and paydowns of loans, carrying about $170 million in unrestricted cash as of February 9.
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