Granite Point Mortgage Trust Q3 loss widens on credit provisions, REO impairment

Overview

• U.S. commercial mortgage REIT's Q3 net loss attributable to common stockholders widened to $60.3 mln on credit loss provisions and REO impairments

• Net interest income for Q3 fell sharply compared to last year

• Company resolved two high-risk loans and collected repayments on office property loans

Outlook

• Company says Board continues review of alternatives to enhance stockholder value

• Company remains focused on further loan repayments, resolutions and REO sales

Result Drivers

• LOAN RESOLUTIONS - Co resolved two high-risk loans and collected repayments on office property loans

• CREDIT LOSSES AND IMPAIRMENTS - Q3 results included a $45.4 mln credit loss provision and $2.6 mln REO impairment

• FINANCING INITIATIVES - Co refinanced debt facilities and transferred assets to lower funding costs

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialized reits peer group is "buy."

• Wall Street's median 12-month price target for Granite Point Mortgage Trust Inc. is $11.50, about 159% above its November 3 closing price of $4.44

Reuters Recommended Reads

• Nov 3 - Claros Mortgage Trust posts Q3 net loss

• Nov 3 - Redwood Trust Q3 loss widens

• Nov 4 - TPG Mortgage Investment Trust Q3 book value drops on Cherry Hill merger

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)