Q - Granite Point Mortgage Trust
For the period ended Jun 30, 2025. Filed Aug 5, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 5, 2025
GPMT$3.34-10.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-06.
0001703644-25-000077
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-05.
0001703644-25-000120
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 210 previous paragraphs and 209 current paragraphs.
140 unchanged; 52 reworded; 16 added; 14 removed; 4 previous and 1 current paragraphs rearranged.
Tables are not compared: 25 previous and 25 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (16)
Current report
Second Quarter 2025 Activity
Current report
•Recognized GAAP net (loss) attributable to common stockholders of $(17.0) million, or $(0.35) per basic share.
Current report
•Modified a senior loan secured by a hotel property located in Minneapolis, MN, restructuring the loan into an accruing $37.0 million senior note and a subordinate note that was immediately charged off.
Current report
•Sold one office property located in Phoenix, AZ, for a net sales price of $16.7 million, which resulted in a gain on sale of $0.3 million, or $0.01 per basic share.
Current report
•Extended the Citibank financing facility to April 27, 2026, and adjusted the facility’s maximum capacity to $250.0 million.
Current report
•Extended the JPMorgan financing facility to July 28, 2026.
Current report
•Extended the Morgan Stanley financing facility to June 28, 2026.
Current report
(1)Transfers in from loan related receivables of $0.6 million included in loan write-offs during the three months ended June 30, 2025.
Current report
(11)As of June 30, 2025, the loan was in maturity default with a maturity date of June 9, 2025.
Current report
During the three months ended June 30, 2025, we resolved a loan secured by a mixed-use office and retail property located in Baton Rouge, LA, via a property sale. The loan was on nonaccrual status with an unpaid principal balance of $79.3 and a risk-rating of “5”. As a result of the property sale, we recognized a write-off of $(20.7) million, which had been reserved for through a previously recorded allowance for credit losses.
Current report
During the three months ended June 30, 2025, we determined that a real estate owned asset, an office located in Phoenix, AZ, met the held-for-sale criteria, and we reclassified the asset to real estate owned held-for-sale. On the reclassification date, the real estate owned asset held-for-investment had a carrying value of $16.4 million, which was below the fair value less estimated transaction costs to sell. On June 23, 2025, the real estate owned asset was sold for a net sales price of $16.7 million, which resulted in a $0.3 million gain on sale and is included in other gain, net, on the consolidated statements of comprehensive income.
Current report
During the twelve months ended June 30, 2025, we completed the modification of a senior loan secured by a hotel property located in Minneapolis, MN. As of June 30, 2025, and December 31, 2024, the loan had a principal balance of $37.1 million and $52.6 million, respectively, and an amortized cost of $37.2 million and $52.7 million, respectively. The terms of the modification included, among other things, (i) a 3-year extension of the fully-extended maturity date to May 9, 2028, with one 12-month option to extend to May 9, 2029; (ii) a restructuring of the loan into a $37.0 million senior note and a subordinate note that was immediately charged off; and (iii) an accrued pay spread. As a result of the modification, we recognized a write-off of approximately $(15.4) million, which had been reserved for through a previously recorded allowance for credit losses. The senior note was performing pursuant to its modified contractual terms as of June 30, 2025.
Current report
(2)No restricted cash is included as of June 30, 2025.
Current report
(3)No restricted cash is included as of June 30, 2025.
Current report
(4)No restricted cash is included as of June 30, 2025.
Current report
Comparison of the Six Months Ended June 30, 2025, and June 30, 2024
Removed paragraphs (14)
Previous report
First Quarter 2025 Activity
Previous report
•Acquired through a negotiated deed-in-lieu of foreclosure the title to an office property with a carrying value at closing of $72.5 million.
Previous report
During the three months ended March 31, 2025, we resolved a senior loan with a $26.1 million unpaid principal balance secured by an office property located in Boston, MA. The loan and related receivables had a carrying value of $9.6 million, inclusive of an allowance for credit losses of $(16.6) million as of December 31, 2024. The loan had been considered collateral-dependent, had a risk rating of “5” and had previously been placed on nonaccrual status. In connection with the resolution, which involved a short sale of the collateral property to a third-party and a discounted loan payoff, we recognized $(16.7) million as a write-off to the allowance for credit losses.
Previous report
During the three months ended March 31, 2025, we transferred to real estate owned, or REO, a $71.3 million senior loan secured by an office property located in Miami Beach, FL. The loan had been considered collateral-dependent, had a risk rating of “5” and had previously been placed on nonaccrual status. We recognized a write-off of $(7.9) million in the allowance for credit losses on loans held-for-investment related to the transfer. At the time of acquisition, the loan had an amortized cost and carrying value of $71.3 million and $63.4 million, respectively. Additionally, at the time of acquisition, the loan had $7.6 million of related receivables, resulting in a total carrying value of $71.0 million. We recognized the property as real estate owned with a carrying value of $72.5 million based on the $71.0 million estimated fair value of the property and $1.5 million in direct transaction costs associated with the acquisition. See Note 4 - Real Estate Owned, Net, for further detail.
Previous report
During the twelve months ended March 31, 2025, we completed the modification of a first mortgage loan secured by a showroom and design property located in New York, NY. As of March 31, 2025, and December 31, 2024, the loan had a principal balance of $34.5 million and $34.3 million, and an amortized cost of $33.2 million and $37.8 million, respectively. The terms of the modification included, among others, a restructuring of the $37.5 million loan at the time of the modification into (i) a $33.3 million senior note, with $3.0 million in unfunded commitments, and (ii) a $4.2 million subordinate note; a $2.6 million capital infusion from the sponsor to further support the collateral property; a change to the restructured senior loan’s coupon to S+3.00%, which was reduced from S+4.65%; an increase in the exit fee from 0.25% to 5.70% of the loan amount, and an extension of term to a maturity date of June 9, 2027. The subordinate note was non-interest bearing and subject to a distribution waterfall and is subordinate to certain amounts of the sponsor’s equity, as defined in the loan agreement. As of June 30, 2024, the subordinate note was deemed uncollectible, resulting in a write-off of $(4.2) million. The loan was performing pursuant to its modified contractual terms as of March 31, 2025.
Previous report
(4)Subsequent to March 31, 2025, we entered into a modification of the facility to extend the maturity date to July 28, 2026.
Previous report
(5)Subsequent to March 31, 2025, we entered into a modification of the facility to extend the maturity date to April 27, 2026, and to reduce the maximum facility capacity amount to $250 million.
Previous report
(2)$0.2 million restricted cash is included as of March 31, 2025.
Previous report
(3)$3.7 million restricted cash is included as of March 31, 2025.
Previous report
(4)$4.0 million restricted cash is included as of March 31, 2025.
Previous report
Revenue from REO Operations
Previous report
During the three months ended March 31, 2025, we recorded revenue from REO operations of $3.1 million as compared to $3.3 million for the three months ended December 31, 2024. The decrease in revenue from REO was due to lower variable rent income during the three months ended March 31, 2025.
Previous report
Revenue from REO Operations
Previous report
During the three months ended March 31, 2025, we recorded revenue from REO operations of $3.1 million as compared to $1.1 million during the three months ended March 31, 2024. The increase in revenue from REO is due to the activity on the REO acquisitions that occurred in June 2024 and January 2025.
Reworded paragraphs (52)
Previous wording
On April 2, 2025, the U.S. presidential administration initiated significant changes to U.S. tariff policy, with the specific policies changing multiple times since that date. The initial announcement had immediate global repercussions, causing capital market uncertainty worldwide. The impact from these changes to U.S. trade policy on commercial real estate remains uncertain, and it is challenging to predict the impact on our business. Tariffs could have an inflationary effect, slow economic growth, result in rising interest rates, and increase unemployment, all of which could decrease demand for space, and the attractiveness of commercial real estate to investors.
Current wording
On April 2, 2025, the U.S. presidential administration initiated significant changes to U.S. tariff policy, with the specific policies changing multiple times since that date. The initial announcement and subsequent related announcements had and continue to have global repercussions, causing capital market uncertainty worldwide. The impact from these changes to U.S. trade policy on commercial real estate remains uncertain, and it is challenging to predict the impact on our business. Tariffs could have an inflationary effect, slow economic growth, result in rising interest rates, and increase unemployment, all of which could decrease demand for space, and the attractiveness of commercial real estate to investors.
Previous wording
•Generated Distributable (loss) to common stockholders of $(27.7) million, or $(0.57) per basic share, which includes $(24.6) million in write-offs, and excludes the $(3.8) million in provision for credit losses, $(2.4) million of equity compensation expense and $(1.4) million of depreciation and amortization on REO.
Current wording
•Generated Distributable (Loss) to common stockholders of $(45.3) million, or $(0.94) per basic share, which includes $(36.1) million in write-offs and $(7.6) million of accumulated depreciation and amortization related to a REO sale, and excludes $(11.0) million in provision for credit losses, $(2.2) million of equity compensation expense and $(2.1) million of depreciation and amortization on REO.
Previous wording
•Generated Distributable (loss) before realized gains and losses to common stockholders of $(3.0) million, or $(0.06) per basic share.
Current wording
•Generated Distributable (Loss) before realized gains and losses to common stockholders of $(2.0) million, or $(0.04) per basic share.
Previous wording
•Recorded a decrease to the allowance for credit losses of $(20.9) million, for a total allowance of credit losses of $180.2 million, or approximately 8.8% of total loan commitments of $2.0 billion at March 31, 2025.
Current wording
•Recorded a decrease to the allowance for credit losses of $(25.1) million, for a total allowance of credit losses of $155.1 million, or approximately 8.1% of total loan commitments of $1.9 billion at June 30, 2025.
Previous wording
•Book value per share of common stock at March 31, 2025, was $8.24, inclusive of $(3.72) per basic common share of total CECL reserve.
Current wording
•Book value per share of common stock at June 30, 2025, was $7.99, inclusive of $(3.27) per basic common share of total CECL reserve.
Previous wording
•Realized $(171.9) million of total unpaid principal balance in loan repayments, principal paydowns, principal amortization, resolutions and write-offs.
Current wording
•Realized $(128.6) million of total unpaid principal balance in loan repayments, principal paydowns, principal amortization, resolutions and write-offs.
Previous wording
•Funded $10.5 million of prior loan commitments and upsizes.
Current wording
•Funded $13.3 million of prior loan commitments and upsizes.
Previous wording
•Resolved a senior loan secured by an office property with a $26.1 million unpaid principal balance via short sale of collateral property to third-party and discounted loan payoff.
Current wording
•Resolved a senior loan secured by a mixed-use office and retail property located in Baton Rouge, LA, with a $79.3 million unpaid principal balance via property sale.
Previous wording
•Maintained a portfolio of 50 loan investments with an aggregate unpaid principal balance of $1.9 billion and total commitments of $2.0 billion, a weighted average stabilized LTV at origination of 64.5%, and a weighted average all-in yield at origination of Standard Overnight Financing Rate, or SOFR, of S+3.97%.
Current wording
•Ended the quarter with a portfolio of 47 loan investments with an aggregate unpaid principal balance of $1.8 billion and total commitments of $1.9 billion, a weighted average stabilized LTV at origination of 64.7%, and a weighted average all-in yield at origination of S+3.95%.
Previous wording
•Repurchased 878,784 shares of common stock at a weighted average purchase price of $2.84 for an aggregate purchase amount of $2.5 million.
Current wording
•Repurchased 1,250,000 shares of common stock at a weighted average purchase price of $2.48 for an aggregate purchase amount of $3.1 million.
Previous wording
•At March 31, 2025, carried unrestricted cash of $85.7 million, a portion of which is subject to certain liquidity covenants, and $123.8 million of unlevered REO assets.
Current wording
•At June 30, 2025, carried unrestricted cash of $85.1 million, a portion of which is subject to certain liquidity covenants.
Previous wording
As a commercial real estate finance company, we believe the key financial measures and indicators for our business are earnings per share presented on a GAAP basis, dividends declared on common stock, Distributable Earnings and book value per share of common stock. For the three months ended March 31, 2025, we recorded a GAAP net (loss) per basic common share of $(0.22), declared a cash dividend of $0.05 per share of common stock and reported Distributable (loss) of $(0.57) per basic common share. Our book value as of March 31, 2025, was $8.24 per share of common stock, inclusive of $(3.72) per share of total CECL reserves.
Current wording
As a commercial real estate finance company, we believe the key financial measures and indicators for our business are earnings per share presented on a GAAP basis, dividends declared on common stock, Distributable Earnings and book value per share of common stock. For the three months ended June 30, 2025, we recorded a GAAP net (loss) per basic common share of $(0.35), declared a cash dividend of $0.05 per share of common stock and reported Distributable (Loss) of $(0.94) per basic common share. Our book value as of June 30, 2025, was $7.99 per share of common stock, inclusive of $(3.27) per share of total CECL reserves.
Previous wording
The following table sets forth the calculation of basic and diluted earnings (loss) per share and dividends declared per share for the three months ended March 31, 2025, and 2024:
Current wording
The following table sets forth the calculation of basic and diluted earnings (loss) per share and dividends declared per share for the three and six months ended June 30, 2025, and 2024:
Previous wording
While Distributable Earnings (Loss) excludes the impact of the unrealized non-cash current provision for credit losses, we expect to only recognize such potential credit losses in Distributable Earnings (Loss) if and when such amounts are deemed non-recoverable. This is generally at the time a loan is repaid, or in the case of foreclosure, when the underlying asset is sold, but non-recoverability may also be concluded if, in our determination, it is nearly certain that all amounts due will not be collected. The realized loss amount reflected in Distributable Earnings (Loss) will equal the difference between the cash received, or expected to be received, and the carrying value of the asset, and is reflective of our economic experience as it relates to the ultimate realization of the loan. During the three months ended March 31, 2025, and 2024, we recorded a provision for credit losses of $3.8 million and $75.6 million, respectively, which has been excluded from Distributable Earnings (Loss), consistent with other unrealized gains (losses) and other non-cash items pursuant to our existing policy for reporting Distributable Earnings (Loss) referenced above. During the three months ended March 31, 2025, and 2024, we recorded $(1.4) million and $(1.3) million, respectively, in depreciation and amortization on REO and related intangibles, which has been excluded from Distributable Earnings (Loss) consistent with other unrealized gains (losses) and other non-cash items pursuant to our existing policy for reporting Distributable Earnings (Loss) referenced above.
Current wording
While Distributable Earnings (Loss) excludes the impact of the unrealized non-cash current provision for credit losses, we expect to only recognize such potential credit losses in Distributable Earnings (Loss) if and when such amounts are deemed non-recoverable. This is generally at the time a loan is repaid, or in the case of foreclosure, when the underlying asset is sold, but non-recoverability may also be concluded if, in our determination, it is nearly certain that all amounts due will not be collected. The realized loss amount reflected in Distributable Earnings (Loss) will equal the difference between the cash received, or expected to be received, and the carrying value of the asset, and is reflective of our economic experience as it relates to the ultimate realization of the loan. During the three and six months ended June 30, 2025, we recorded a provision for credit losses of $11.0 million and $14.8 million, respectively, which has been excluded from Distributable Earnings (Loss), consistent with other unrealized gains (losses) and other non-cash items pursuant to our existing policy for reporting Distributable Earnings (Loss) referenced above. During the three and six months ended June 30, 2025, we recorded $(2.1) million and $(3.5) million, respectively, in depreciation and amortization on REO and related intangibles, which has been excluded from Distributable Earnings (Loss) consistent with other unrealized gains (losses) and other non-cash items pursuant to our existing policy for reporting Distributable Earnings (Loss) referenced above.
Previous wording
The following table provides a reconciliation of GAAP net (loss) attributable to common stockholders to Distributable Earnings (Loss) Before Realized Gains and Losses and Distributable Earnings (Loss) for the three months ended March 31, 2025, and 2024:
Current wording
The following table provides a reconciliation of GAAP net (loss) attributable to common stockholders to Distributable Earnings (Loss) Before Realized Gains and Losses and Distributable Earnings (Loss) for the three and six months ended June 30, 2025, and 2024:
Previous wording
Book value per share as of March 31, 2025, includes the impact of an estimated allowance for credit losses of $180.2 million, or $(3.72) per common share. See Note 3 –Loans Held-for-Investment, Net of Allowance for Credit Losses to our Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for a detailed discussion of allowance for credit losses.
Current wording
Book value per share as of June 30, 2025, includes the impact of an estimated allowance for credit losses of $155.1 million, or $(3.27) per common share. See Note 3 –Loans Held-for-Investment, Net of Allowance for Credit Losses to our Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for a detailed discussion of allowance for credit losses.
Previous wording
Interest-earning assets include our 100% loan investment portfolio. At March 31, 2025, our loan portfolio was comprised of 50 investments, of which 49 were senior first mortgage loans totaling $2.0 billion of commitments with an unpaid principal balance of $1.9 billion, and one subordinate loan totaling $13.2 million in commitments and unpaid principal balance. At
Current wording
Interest-earning assets include our 100% loan investment portfolio. At June 30, 2025, our loan portfolio was comprised of 47 investments, of which 46 were senior first mortgage loans totaling $1.9 billion of commitments with an unpaid principal balance of $1.8 billion, and one subordinate loan totaling $13.1 million in commitments and unpaid principal balance. At June 30, 2025, the weighted average risk rating of our loan portfolio was 2.8 as compared to 3.1 at December 31, 2024, weighted by total unpaid principal balance.
Previous wording
We may hold REO as a result of taking title to a loan’s collateral. As of March 31, 2025, we owned three office properties with an aggregate carrying value of $123.8 million, inclusive of $12.0 million of intangible assets included in other assets and $(2.8) million of unfavorable lease liabilities in our Condensed Consolidated Balance Sheets.
Current wording
We may hold REO as a result of taking title to a loan’s collateral. As of June 30, 2025, we owned two office properties with an aggregate carrying value of $107.0 million, inclusive of $11.0 million of intangible assets included in other assets and $(0.2) million of unfavorable lease liabilities in our Condensed Consolidated Balance Sheets.
Previous wording
During the three months ended March 31, 2025, we funded $10.4 million under existing loan commitments and loan upsizes. We realized $171.9 million in aggregate reductions in portfolio unpaid principal balance from loan repayments, paydowns, amortization and resolutions. See Note 3 -Loans Held-for-Investment, Net of Allowance for Credit Losses to our Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for further detail.
Current wording
During the three months ended June 30, 2025, we funded $13.5 million under existing loan commitments and loan upsizes. We realized $(115.1) million in aggregate reductions in portfolio unpaid principal balance from loan repayments, paydowns, amortization and resolutions. See Note 3 —Loans Held-for-Investment, Net of Allowance for Credit Losses to our Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for further detail.
Previous wording
As of March 31, 2025, the weighted average risk rating of our loan portfolio was 3.0, versus 3.1 as of December 31, 2024, weighted by unpaid principal balance. The change in the weighted average portfolio risk rating versus December 31, 2024, is mainly a result of resolutions of two previously risk-rated “5” loans.
Current wording
As of June 30, 2025, the weighted average risk rating of our loan portfolio was 2.8, versus 3.1 as of December 31, 2024, weighted by unpaid principal balance. The change in the weighted average portfolio risk rating versus December 31, 2024, is mainly a result of resolutions of two previously risk-rated “5” loans.
Previous wording
As of March 31, 2025, we had five loans that had a risk rating of “5” with an aggregate principal balance of $354.9 million, for which we recorded an allowance for credit losses of $134.3 million. These five loans were on nonaccrual status as of March 31, 2025. The performance of these assets, which include two office buildings, one mixed-use property with an office and retail component, one hotel asset and one multifamily property, has been adversely affected to varying degrees by many factors, such as slower pace in leasing activity for office properties, related to work from home trends and other submarket dynamics, combined with a significant rise in interest rates contributing to a meaningful reduction in real estate transaction activity, capital markets volatility and limited market liquidity affecting property values and these borrowers’ ability to either sell or refinance their loans, and other property specific factors. These loans are considered collateral-dependent and have been placed on nonaccrual status as of March 31, 2025.
Current wording
As of June 30, 2025, we had three loans that had a risk rating of “5” with an aggregate principal balance of $222.8 million, for which we recorded an allowance for credit losses of $97.5 million. These three loans were on nonaccrual status as of June 30, 2025. The performance of these assets, which include two office buildings and one multifamily property, has been adversely affected to varying degrees by many factors, such as slower pace in leasing activity for office properties, related to work from home trends and other submarket dynamics, combined with a significant rise in interest rates contributing to a meaningful reduction in real estate transaction activity, capital markets volatility and limited market liquidity affecting property values and these borrowers’ ability to either sell or refinance their loans, and other property specific factors. These loans are considered collateral-dependent and have been placed on nonaccrual status as of June 30, 2025.
Previous wording
During the twelve months ended March 31, 2025, we completed the modification of a first mortgage loan secured by a mixed-use multifamily, event space and office property located in Pittsburgh, PA. As of March 31, 2025, and December 31, 2024, the loan had a principal balance of $32.0 million and an amortized cost of $30.4 million and $30.3 million, respectively. The terms of the modification included, among others, (i) a new $2 million capital infusion from the sponsor to further support the collateral property; (ii) a restructuring of the $51.0 million whole loan into a $32.0 million senior note, with a $7.0 million unfunded commitment, and a $19.0 million subordinate note. The restructured senior loan earns a fixed rate coupon rate of 5.75%, adjusted from a floating rate coupon of S+3.40%, has an exit fee that was increased from 1.25% to 5.75% of the loan amount, and was extended to July 9, 2027. The subordinate note is non-interest bearing and is subject to a distribution waterfall and is subordinate to certain amounts of the sponsor’s equity, as defined in the loan agreement. As of September 30, 2024, the subordinate note was deemed uncollectible, resulting in a write-off of $(19.0) million. The loan was performing pursuant to its modified contractual terms as of March 31, 2025.
Current wording
During the twelve months ended June 30, 2025, we completed the modification of a first mortgage loan secured by a mixed-use multifamily, event space and office property located in Pittsburgh, PA. As of June 30, 2025, and December 31, 2024, the loan had a principal balance of $32.0 million and an amortized cost of $30.6 million and $30.3 million, respectively. The terms of the modification included, among others, (i) a new $2 million capital infusion from the sponsor to further support the collateral property; (ii) a restructuring of the $51.0 million whole loan into a $32.0 million senior note, with a $7.0 million unfunded commitment, and a $19.0 million subordinate note. The restructured senior loan earns a fixed rate coupon rate of 5.75%, adjusted from a floating rate coupon of S+3.40%, has an exit fee that was increased from 1.25% to 5.75% of the loan amount, and was extended to July 9, 2027. The subordinate note is non-interest bearing and is subject to a distribution waterfall and is subordinate to certain amounts of the sponsor’s equity, as defined in the loan agreement. As of September 30, 2024, the subordinate note was deemed uncollectible, resulting in a write-off of $(19.0) million. The loan was performing pursuant to its modified contractual terms as of June 30, 2025.
Previous wording
As of March 31, 2025, our portfolio financing consisted of repurchase and secured credit facilities collateralized by loans held-for-investment and securitized debt obligations collateralized by pools of loans held-for-investment issued in CRE CLOs. Our non-mark-to-market financing sources accounted for approximately 61.7% of portfolio loan-level financing as of March 31, 2025.
Current wording
As of June 30, 2025, our portfolio financing consisted of repurchase and secured credit facilities collateralized by loans held-for-investment and securitized debt obligations collateralized by pools of loans held-for-investment issued in CRE CLOs. Our non-mark-to-market financing sources accounted for approximately 63.7% of portfolio loan-level financing as of June 30, 2025.
Previous wording
(1)As of December 31, 2024, real estate owned, net included $0.5 million in other assets and liabilities related to acquired leases.
Current wording
(1)As of June 30, 2025, real estate owned, net included $8.3 million in other assets and liabilities related to acquired leases.
Previous wording
As of March 31, 2025, we had repurchase facilities in place with three counterparties with aggregate outstanding borrowings of $0.5 billion, which financed a portion of our loans held-for-investment and real estate owned. As of March 31, 2025, the weighted average borrowing rate on our repurchase facilities was 7.7%, the weighted average advance rate was 61.0%, and the term to maturity ranged from 55 days to approximately 0.3 years, with a weighted average remaining maturity of 0.3 years.
Current wording
As of June 30, 2025, we had repurchase facilities in place with three counterparties with aggregate outstanding borrowings of $0.5 billion, which financed a portion of our loans held-for-investment and real estate owned. As of June 30, 2025, the weighted average borrowing rate on our repurchase facilities was 7.7%, the weighted average advance rate was 61.0%, and the term to maturity ranged from 0.8 years to approximately 1.0 year, with a weighted average remaining maturity of 0.8 years.
Previous wording
(3)Subsequent to March 31, 2025, we entered into a modification of the facility to extend the maturity date to June 28, 2026. Collateral value includes real estate owned with a carrying value of $72.5 million.
Current wording
(3)Collateral value includes real estate owned with a carrying value of $71.8 million.
Previous wording
We have financed certain pools of our loans through the issuance of CRE CLOs. At March 31, 2025, we had two CRE CLOs outstanding: GPMT 2021-FL4 and GPMT 2021-FL3, totaling $0.8 billion of outstanding borrowings, financing 29 of our existing first mortgage loan investments with an aggregate principal balance, inclusive of restricted cash, totaling $1.0 billion. As of March 31, 2025, our CRE CLOs financed 48.8% of our total loan portfolio principal balance on a term-matched, non-recourse and non-mark-to-market basis with attractive cost of funds.
Current wording
We have financed certain pools of our loans through the issuance of CRE CLOs. At June 30, 2025, we had two CRE CLOs outstanding: GPMT 2021-FL4 and GPMT 2021-FL3, totaling $0.7 billion of outstanding borrowings, financing 29 of our existing first mortgage loan investments with an aggregate principal balance, inclusive of restricted cash, totaling $0.9 billion. As of June 30, 2025, our CRE CLOs financed 50.6% of our total loan portfolio principal balance on a term-matched, non-recourse and non-mark-to-market basis with attractive cost of funds.
Previous wording
As of March 31, 2025, the total debt-to-equity ratio with respect to our loans held-for-investment was 2.2:1.0, and our recourse leverage ratio was 0.9:1.0. The following table represents our recourse leverage ratio and total leverage ratio as of March 31, 2025, and December 31, 2024. The period-over-period increase in our leverage ratios was mainly related to a decrease in total equity balance due to higher CECL reserves recorded during the three months ended March 31, 2025, which was partially offset by lower borrowings due to loan repayments and paydowns.
Current wording
As of June 30, 2025, the total debt-to-equity ratio with respect to our loans held-for-investment was 2.1:1.0, and our recourse leverage ratio was 0.8:1.0. The following table represents our recourse leverage ratio and total leverage ratio as of June 30, 2025, and December 31, 2024. The period-over-period decrease in our leverage ratios was mainly related to lower borrowings due to loan repayments and paydowns.
Previous wording
Our business strategy seeks to minimize our exposure to changes in interest rates by matching benchmark indices on our assets with those on our asset level borrowings. Accordingly, our business model is such that, in general, rising interest rates will increase our net interest income, while declining interest rates will decrease our net interest income, subject to the impact of interest rate floors on our floating rate assets and certain liabilities. As of March 31, 2025, 97.7% of our loan investments by principal balance earned a floating rate of interest and were financed with liabilities that pay interest on a floating rate basis, which resulted in an amount of net floating rate exposure, subject to the impact of interest rate floors on certain of our floating rate loan investments, of $0.5 billion. As of March 31, 2025, 2.3% of our loan investments by principal balance earned a fixed rate of interest and were financed with liabilities that pay interest on a floating rate basis, which resulted in a negative correlation to elevated interest rates on that amount of our financing.
Current wording
Our business strategy seeks to minimize our exposure to changes in interest rates by matching benchmark indices on our assets with those on our asset level borrowings. Accordingly, our business model is such that, in general, rising interest rates will increase our net interest income, while declining interest rates will decrease our net interest income, subject to the impact of interest rate floors on our floating rate assets and certain liabilities. As of June 30, 2025, 97.5% of our loan investments by principal balance earned a floating rate of interest and were financed with liabilities that pay interest on a floating rate basis, which resulted in an amount of net floating rate exposure, subject to the impact of interest rate floors on certain of our floating rate loan investments, of $0.5 billion. As of June 30, 2025, 2.5% of our loan investments by principal balance earned a fixed rate of interest and were financed with liabilities that pay interest on a floating rate basis, which resulted in a negative correlation to elevated interest rates on that amount of our financing.
Previous wording
The following tables present the components of interest income and average annualized net asset yield earned by asset type, the components of interest expense and average annualized cost of funds on borrowings incurred by collateral type and net interest income and average annualized net interest rate spread for the three months ended March 31, 2025, and 2024. The net asset yield reflects the impact of loans held on nonaccrual status.
Current wording
The following tables present the components of interest income and average annualized net asset yield earned by asset type, the components of interest expense and average annualized cost of funds on borrowings incurred by collateral type and net interest income and average annualized net interest rate spread for the three and six months ended June 30, 2025, and 2024. The net asset yield reflects the impact of loans held on nonaccrual status.
Previous wording
Interest income for the three months ended March 31, 2025, decreased to $35.1 million from $38.7 million for the three months ended December 31, 2024, mainly due to a lower average balance of our interest-earning assets as a result of loan repayments and a decline in short-term interest rates.
Current wording
Interest income for the three months ended June 30, 2025, decreased to $33.8 million from $35.1 million for the three months ended March 31, 2025, mainly due to a lower average balance of our interest-earning assets as a result of loan repayments.
Previous wording
Interest expense for the three months ended March 31, 2025, decreased to $27.1 million from $31.1 million for the three months ended December 31, 2024, mainly due to a lower average balance of our interest-bearing liabilities and a decline in short-term interest rates.
Current wording
Interest expense for the three months ended June 30, 2025, decreased to $25.8 million from $27.1 million for the three months ended March 31, 2025, mainly due to a lower average balance of our interest-bearing liabilities as a result of loan repayments and nonaccrual loan resolutions.
Previous wording
During the three months ended March 31, 2025, we recorded a provision for credit losses of $(3.8) million as compared to $(37.2) million for the three months ended December 31, 2024. The decrease in the provision for credit losses was primarily driven by lower unfavorable change to specific reserves on collateral-dependent loans during the three months ended March 31, 2025, as compared to the three months ended December 31, 2024.
Current wording
During the three months ended June 30, 2025, we recorded a provision for credit losses of $(11.0) million as compared to $(3.8) million for the three months ended March 31, 2025. The increase in the provision for credit losses was primarily driven by the assumptions employed in estimating the general CECL reserve, including worsening economic forecasts as of June 30, 2025.
Previous wording
We incur compensation and benefits expenses, servicing expenses related to the servicing of commercial real estate loans, expenses from REO operations and other operating expenses. Compensation and benefits for the three months ended March 31, 2025, increased primarily due to higher non-cash equity compensation expense amortization as compared to the three months ended December 31, 2024. Servicing expenses for the three months ended March 31, 2025, decreased modestly primarily due to CLO servicing fees and special servicing fees related to select loans, as compared to the three months ended December 31, 2024. Expenses from REO operations for the three months ended March 31, 2025, increased primarily due to higher charges on the Maynard, MA office, as compared to the prior quarter. Other operating expenses decreased as compared to the prior quarter mainly due to higher professional fees. Our operating expense ratio, excluding REO, increased during the three months ended March 31, 2025, as compared to the three months ended December 31, 2024, mainly due to lower average equity and higher noncash equity compensation, partially offset by lower service fees during the three months ended March 31, 2025.
Current wording
We incur compensation and benefits expenses, servicing expenses related to the servicing of commercial real estate loans, expenses from REO operations and other operating expenses. Compensation and benefits expenses for the three months ended June 30, 2025, decreased primarily due to lower non-cash equity compensation expense amortization as compared to the three months ended March 31, 2025. Servicing expenses for the three months ended June 30, 2025, decreased primarily due to a lower portfolio balance, as compared to the three months ended March 31, 2025. Expenses from REO operations for the three months ended June 30, 2025, increased primarily due to a full quarter of three REO assets held, as compared to the prior quarter. Other operating expenses decreased as compared to the prior quarter mainly due to lower professional fees. Our operating expense ratio, excluding REO, decreased during the three months ended June 30, 2025, as compared to the three months ended March 31, 2025, mainly due to lower average equity and lower service fees during the three months ended June 30, 2025.
Previous wording
Our GAAP net (loss) attributable to common stockholders was $(10.6) million (or $(0.22) per basic weighted average share) for the three months ended March 31, 2025, as compared to GAAP net (loss) attributable to common stockholders of $(42.4) million (or $(0.86) per basic weighted average share) for the three months ended December 31, 2024. The decrease in GAAP results was primarily due to a lower provision for credit losses of $(3.8) million during the three months ended March 31, 2025, compared to a provision for credit losses of $(75.6) million during the three months ended December 31, 2024.
Current wording
Our GAAP net (loss) attributable to common stockholders was $(17.0) million (or $(0.35) per basic weighted average share) for the three months ended June 30, 2025, as compared to GAAP net (loss) attributable to common stockholders of $(10.6) million (or $(0.22) per basic weighted average share) for the three months ended March 31, 2025. The decrease in GAAP results was primarily due to a higher provision for credit losses of $(11.0) million during the three months ended June 30, 2025, compared to a provision for credit losses of $(3.8) million during the three months ended March 31, 2025.
Previous wording
The following table presents the components of interest income and interest expense for the three months ended March 31, 2025, and March 31, 2024:
Current wording
The following table presents the components of interest income and interest expense for the six months ended June 30, 2025, and June 30, 2024:
Previous wording
Interest income for the three months ended March 31, 2025, decreased to $35.1 million from $54.1 million for the three months ended March 31, 2024, mainly due to a lower average balance of our interest-earning assets and a decline in short-term interest rates.
Current wording
Interest income for the six months ended June 30, 2025, decreased to $68.9 million from $102.5 million for the six months ended June 30, 2024, mainly due to a lower average balance of our interest-earning assets and a decline in short-term interest rates.
Previous wording
Interest expense for the three months ended March 31, 2025, decreased to $27.1 million from $41.5 million for the three months ended March 31, 2024, mainly due to a lower average balance on portfolio level financing, corporate borrowings and a decline in short-term interest rates.
Current wording
Interest expense for the six months ended June 30, 2025, decreased to $52.9 million from $81.9 million for the six months ended June 30, 2024, mainly due to a lower average balance on portfolio level financing, corporate borrowings and a decline in short-term interest rates.
Previous wording
The following table presents the components of (provision for) benefit from credit losses for the three months ended March 31, 2025, and March 31, 2024:
Current wording
The following table presents the components of (provision for) benefit from credit losses for the six months ended June 30, 2025, and June 30, 2024:
Previous wording
During the three months ended March 31, 2025, we recorded a provision for credit losses of $(3.8) million as compared to $(75.6) million during the three months ended March 31, 2024. The decrease in the provision for credit losses was primarily driven by lower balances on nonaccrual loans that were individually assessed in accordance with ASU 2016-13 during the three months ended March 31, 2025, compared to the three months ended March 31, 2024.
Current wording
During the six months ended June 30, 2025, we recorded a provision for credit losses of $(14.8) million as compared to $(136.3) million during the six months ended June 30, 2024. The decrease in the provision for credit losses was primarily driven by lower balances on nonaccrual loans that were individually assessed in accordance with ASU 2016-13 during the six months ended June 30, 2025, compared to the six months ended June 30, 2024.
Showing the first 40 of 52 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
(4)Collateral value includes real estate owned with a carrying value of $35.2 million.
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
•Recognized GAAP net (loss) attributable to common stockholders of $(10.6) million, or $(0.22) per basic share.
Previous report — wording carried elsewhere
March 31, 2025, the weighted average risk rating of our loan portfolio was 3.0 as compared to 3.1 at December 31, 2024, weighted by total unpaid principal balance.
Previous report — wording carried elsewhere
(1)Additional fundings made under existing loan commitments and upsizing of loans. Includes a $1.7 million unsecured note advanced to an existing borrower.
Previous report — wording carried elsewhere
Comparison of the Three Months Ended March 31, 2025, and March 31, 2024