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

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Net Loss Attributable to Common Stockholders

$60.25 mln

Q3 Net Interest Income

$416,000

Q3 Credit Loss Provision

$45.40 mln

Q3 Pretax Loss

$56.59 mln


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


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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