Q2 2024 Granite Point Mortgage Trust Inc Earnings Call Transcript
Key Points
- Granite Point Mortgage Trust Inc (GPMT) resolved four non-accrual loans with an aggregate principal balance of over $135 million, showcasing proactive asset management.
- The company has visibility on approximately $200 million to $300 million of more loan resolutions expected by the end of 2024.
- Improved market sentiment and increased transaction activity have contributed to better visibility on loan repayments and non-accrual resolutions.
- Granite Point Mortgage Trust Inc (GPMT) repurchased about 1.5 million of its common shares at a deep discount, benefiting book value by about $0.05 per share.
- The company maintains a diversified loan portfolio with a weighted average LTV at origination of 63.7% and a realized loan portfolio yield of about 7% for the second quarter.
- Granite Point Mortgage Trust Inc (GPMT) reported a second-quarter GAAP net loss of $66.7 million, including a provision for credit losses of $60.8 million.
- Distributable loss for the quarter was $9.1 million, reflecting loan write-offs and a decline in net interest income due to non-accrual loans.
- The company anticipates incurring over $100 million of write-offs over the next couple of quarters, impacting overall CECL reserve balance.
- Non-accrual loans accounted for over 20% of the portfolio as of quarter end, significantly impacting run rate profitability.
- The Board of Directors decided to reduce the quarterly common dividend to $0.05 per share due to the challenging credit environment and near-term pressure on earnings.
Good morning. My name is Daryl, and I will be your conference facilitator. At this time, I would like to welcome everyone to the Granite Point Mortgage Trust second-quarter 2024 financial results conference call. (Operator Instructions) Please note today's call is being recorded. I would now like to turn the call over to Chris Petta, Investor Relations for Granite Point.
Thank you, and good morning, everyone. Thank you for joining our call to discuss Granite Pointâs second-quarter 2024 financial results. With me on the call this morning are Jack Taylor, our President and Chief Executive Officer; Marcin Urbaszek, our Chief Financial Officer; Steve Alpart, our Chief Investment Officer and Co-Head of Originations; Peter Morral, our Chief Development Officer and Co-Head of Originations; and Steve Plust, our Chief Operating Officer.
After my introductory comments, Jack will provide a brief recap of market conditions and review our current business activities. Steve Alpart will discuss our
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