Granite Point Mortgage Trust Inc.
For the period ended Mar 31, 2026. Filed May 5, 2026.
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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.
Mar 31, 2026 · Filed May 5, 2026
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 2025-09-30; filed 2025-11-05.
0001703644-25-000134
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-05.
0001703644-26-000020
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 204 previous paragraphs and 212 current paragraphs.
123 unchanged; 64 reworded; 23 added; 16 removed; 1 previous and 2 current paragraphs rearranged.
Tables are not compared: 25 previous and 26 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 (23)
Current report
First Quarter 2026 Activity
Current report
•Recognized GAAP net (loss) attributable to common stockholders of $(6.0) million, or $(0.13) per basic share.
Current report
•Repurchased 172,313 shares of common stock at a weighted average purchase price of $1.74 for an aggregate purchase amount of $0.3 million.
Current report
•Repaid $91.6 million of borrowings under the JP Morgan repurchase facility, resulting in a 0.61% reduction of the weighted average cost of funds of repurchase agreements.
Current report
(1)Includes $1.4 million in fundings of other investments classified as loans held-for-investment during the three months ended March 31, 2026.
Current report
(10)Includes total other investments of $4.2 million, inclusive of a $3.6 million unsecured loan with a fixed rate of 11% deferred until maturity, and $0.6 million of equity interest with a 35% residual return, in the borrower entity of the senior loan. The other investment balance is on nonaccrual status as of March 31, 2026. As of March 31, 2026, the maturity date is December 9, 2026, which is determined by the maturity date of the associated senior loan.
Current report
(11)Includes a preferred equity investment of $2.3 million with a fixed rate of 11% deferred until maturity and a 30% residual return in the borrower entity of the senior loan. The preferred equity balance is on nonaccrual status as of March 31, 2026. As of March 31, 2026, the maturity date is April 9, 2026, which is determined by the maturity date of the associated senior loan.
Current report
(12)Includes a preferred equity investment of $2.3 million with a fixed rate of 10% deferred until maturity and a 10% residual return in the borrower entity of the senior loan. The preferred equity balance is on nonaccrual status as of March 31, 2026. As of March 31, 2026, the maturity date is November 9, 2026, which is determined by the maturity date of the associated senior loan.
Current report
(13)Includes a preferred equity investment of $1.7 million with a fixed rate of 12% deferred until maturity and a 40% residual return in the borrower entity of the senior loan. The preferred equity balance is on nonaccrual status as of March 31, 2026. As of March 31, 2026, the maturity date is October 9, 2026, which is determined by the maturity date of the associated senior loan.
Current report
During the 12 months ended March 31, 2026, we entered into the following four loan modifications that met the disclosure requirements pursuant to ASC 326.
Current report
During the three months ended March 31, 2026, we completed the modification of a senior loan secured by an office property located in New York, NY, and the related unsecured note and equity interest classified as loans held-for-investment. As of March 31, 2026 and December 31, 2025, the senior loan had a principal balance and amortized cost of $69.2 million and $69.1 million, respectively. The terms of the senior loan modification included, among other things, a 1-year extension of the fully-extended maturity date to December 9, 2026, with one 12-month option to extend to December 9, 2027. The modification of the unsecured note and equity interest included, among other things, (i) a 1-year extension of the fully-extended maturity date to December 9, 2026, with one 12-month option to extend to December 9, 2027, (ii) a $4.8 million upsizing of the total commitment of the unsecured note, and (iii) a $0.1 million investment in exchange for an additional equity interest of 5%. The unsecured note earns deferred interest, which carries an accrual rate of 11%. Due to the uncertainty of collection of any unsecured note interest, we are not accruing any income on the unsecured note. As of March 31, 2026, the senior loan, unsecured note and equity interest had an aggregate principal balance and amortized cost of $73.4 million. The senior loan was performing pursuant to its modified contractual terms and accruing interest income on the consolidated statements of income as of March 31, 2026.
Current report
During the three months ended December 31, 2025, we completed the modification of a senior loan secured by an office property located in Encino, CA. As of March 31, 2026, and December 31, 2025, the senior loan had a principal balance of $43.5 million and $43.4 million, respectively, and an amortized cost of $43.4 million and $43.2 million, respectively. The terms of the modification included, among other things, (i) a two-year extension of the fully extended maturity date to October 9, 2028; and (ii) a $3.8 million upsizing of the total commitment of the loan. Additionally, we made a $1.6 million non-controlling preferred equity investment in a limited liability company, or LLC, that is the borrower of the senior loan with an initial redemption date of October 9, 2026, which is determined by the maturity date of the associated senior loan. We may invest up to an additional $2.0 million in the preferred equity investment. The preferred equity investment will earn a deferred preferred return, which carries an accrual rate of 12%. Due to the uncertainty of collection of any preferred equity investment accrued amounts, we are not accruing any income on the preferred equity investment. The preferred equity investment is included in our consolidated balance sheets within loans held-for-investment. As of March 31, 2026, the senior loan and preferred equity investment had an aggregate principal balance of $45.2 million and an aggregate amortized cost of $45.0 million. The senior loan was performing pursuant to its modified contractual terms and accruing interest income on the consolidated statements of income as of March 31, 2026.
Current report
The following table details our portfolio financing as of March 31, 2026, and December 31, 2025:
Current report
(4)Subsequent to March 31, 2026, we exercised an option to extend the maturity date to April 26, 2027.
Current report
Mortgage Loan Payable
Current report
In October 2025, we refinanced the Maynard, MA, REO property with an interest-only first mortgage loan payable of $18.0 million and initial deferred debt issuance costs of $(0.5) million, resulting in an initial carrying value of $17.5 million. The first mortgage matures on October 3, 2030.
Current report
The following table details the outstanding borrowings under our mortgage loan payable as of March 31, 2026:
Current report
Revenue from REO Operations
Current report
During the three months ended March 31, 2026, we recorded revenue from REO operations of $3.2 million as compared to $3.1 million during the three months ended December 31, 2025. The modest increase in revenue from REO is primarily due to increased rental income during the three months ended March 31, 2026, as compared to the three months ended December 31, 2025.
Current report
Revenue from REO Operations
Current report
During the three months ended March 31, 2026, we recorded revenue from REO operations of $3.2 million as compared to $3.1 million during the three months ended March 31, 2025. The modest increase in revenue from REO is due to an REO acquisition that occurred in January 2025, partially offset by the sale of one REO asset during the second quarter of 2025.
Current report
Share Repurchase Program
Current report
For details on our share repurchase program, see“Share Repurchases” in Note 11. Stockholders’ Equity to our Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q.
Removed paragraphs (16)
Previous report
Third Quarter 2025 Activity
Previous report
•Recognized GAAP net (loss) attributable to common stockholders of $(0.6) million, or $(0.01) per basic share.
Previous report
•Received a $3.4 million partial paydown on a loan secured by office and retail property located in Chicago, IL, with a $79.7 million unpaid principal balance. The net sale proceeds were applied to the outstanding principal balance, which is now secured by the retail portion of the property.
Previous report
•Resolved a senior loan secured by a student housing property located in Louisville, KY, with a $50.0 million unpaid principal balance via property sale.
Previous report
•Extended the secured credit facility to December 21, 2026, and reduced the financing spread by 75 basis points and borrowings by $7.5 million.
Previous report
(1)Transfers in from loan related receivables of $0.4 million included in loan write-offs during the three months ended September 30, 2025.
Previous report
(9)Includes a $1.7 million unsecured note advanced to an existing borrower.
Previous report
During the three months ended September 30, 2025, as part of our quarterly risk rating process, we downgraded one first mortgage loan with an aggregate outstanding principal balance of $26.9 million and secured by a hotel property to a risk rating of “5.” The loan is considered collateral dependent and has been placed on nonaccrual status as of September 30, 2025.
Previous report
During the three months ended September 30, 2025, we resolved a senior loan secured by a multifamily student housing property located in Louisville, KY, via a property sale. The loan was on nonaccrual status with an unpaid principal balance of $50.0 million and a risk-rating of “5.” As a result of the property sale, we recognized a write-off of $(19.4) million, which had been reserved for through a previously recorded allowance for credit losses of $22.6 million, resulting in a benefit from credit losses of $3.2 million.
Previous report
During the three months ended September 30, 2025, we recognized a $3.4 million partial paydown on a nonaccrual loan secured by an office and retail property in Chicago, IL. The office portion of the property was sold, and the net sale proceeds were applied to the outstanding principal balance of the loan, which is now secured by the retail portion of the property. As of September 30, 2025, as a result of the partial paydown, we have reclassified the loan from office to retail, and the loan remained on nonaccrual status with a risk-rating of “5” and an unpaid principal balance of $76.3 million.
Previous report
The following table details our portfolio loan-level financing as of September 30, 2025, and December 31, 2024:
Previous report
(2)No restricted cash is included as of September 30, 2025.
Previous report
(3)No restricted cash is included as of September 30, 2025.
Previous report
(4)No restricted cash is included as of September 30, 2025.
Previous report
The environmental, social and governance, or ESG, factors associated with our potential collateral and borrowers could also pose credit risks to us. We try to mitigate these risks by incorporating diligence practices into our investment process to identify significant ESG concerns related to a given investment. The nature and scope of our ESG diligence will vary based on the investment but may include a review of, among other things, energy management, pollution and contamination, accounting standards, bribery and corruption.
Previous report
Comparison of the Nine Months Ended September 30, 2025, and September 30, 2024
Reworded paragraphs (64)
Previous wording
The past several quarters were characterized by continued volatility in the global securities markets. Volatility was likely driven by investor concerns over tariffs, inflation, elevated interest rates, escalating trade tensions, slowing economic growth, political and regulatory uncertainty and geopolitical conditions. During the year, financial institutions were affected by certain events which also contributed to global markets volatility, diminished liquidity and credit availability.
Current wording
The past several quarters have been characterized by continued volatility in the global securities markets. Volatility was likely driven by investor concerns over the conflicts in the Middle East, tariffs, inflation, interest rates, escalating trade tensions, slowing economic growth, political and regulatory uncertainty and geopolitical conditions. During the quarter, financial institutions were affected by certain events which also contributed to global markets volatility, diminished liquidity and credit availability.
Previous wording
On September 17, 2025, the Federal Reserve reduced interest rates by 25 basis points, although the timing, direction and extent of any future interest rate changes remained uncertain and interest rates remained at an elevated level. Absent other factors, our business model is such that higher interest rates should generally correlate to higher net interest income. However, interest rates have remained elevated for an extended period of time, adversely affecting our existing borrowers and the cost of financing their properties. Continued higher interest rates may further impact our borrowers and lead to non-performance, as well as dampen consumer spending and slow corporate profit growth, which may negatively impact the collateral underlying certain of our loans. Higher interest rates have adversely impacted, and may continue to adversely impact, commercial real estate property values. It remains difficult to predict the full impact of recent events, interest rate fluctuation, and inflation on macroeconomic conditions and our business.
Current wording
During 2025, the Federal Reserve reduced interest rates three times by 25 basis points in each instance. The timing, direction and extent of any future interest rate changes remain uncertain, and interest rates remained at an elevated level. Absent other factors, our business model is such that higher interest rates should generally correlate to higher net interest income. However, interest rates have remained elevated for an extended period of time, adversely affecting our existing borrowers and the cost of financing their properties. Continued higher interest rates may further impact our borrowers and lead to non-performance, as well as dampen consumer spending and slow corporate profit growth, which may negatively impact the collateral underlying certain of our loans. Higher interest rates have adversely impacted, and may continue to adversely impact, commercial real estate property values. It remains difficult to predict the full impact of recent events, interest rate fluctuation, and inflation on macroeconomic conditions and our business.
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 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 have had and could continue to 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
During the past year, the U.S. presidential administration initiated significant changes to U.S. tariff policy, with the specific policies changing multiple times. The announcements of these changes 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 have had and could continue to have an inflationary effect, slow economic growth, result in rising interest rates, and increase unemployment, all of which could decrease demand for commercial space, and the attractiveness of commercial real estate to investors.
Previous wording
The office property market has experienced higher vacancies, slower leasing activity, and tenant reevaluation of space needs, largely due to remote and hybrid work arrangements. These factors coupled with tariffs, inflation, elevated interest rates and limited market liquidity have created a high level of uncertainty with respect to property values. These dynamics have stressed certain borrowers’ ability and willingness to support their properties and perform in accordance with their loan terms. Given this uncertainty, it remains difficult to predict the effect these challenging conditions may have on the office property market, our borrowers, their performance under the terms of our loans secured by office properties and our financial results.
Current wording
The office property market has experienced higher vacancies, slower leasing activity, and tenant reevaluation of space needs since early 2020, largely due to remote and hybrid work arrangements. These factors coupled with tariffs, inflation, elevated interest rates and limited market liquidity have created a high level of uncertainty with respect to property values. These dynamics have stressed certain borrowers’ ability and willingness to support their properties and perform in accordance with their loan terms. Given this uncertainty, it remains difficult to predict the effect these challenging conditions may have on the office property market, our borrowers, their performance under the terms of our loans secured by office properties and our financial results.
Previous wording
•Generated Distributable (Loss) to common stockholders of $(18.9) million, or $(0.40) per basic share, which includes $(19.8) million in write-offs, and excludes $1.6 million in benefit from credit losses, $(0.9) million of equity compensation expense and $(2.2) million of depreciation and amortization on REO.
Current wording
•Generated Distributable (Loss) to common stockholders of $(3.0) million, or $(0.06) per basic share, which excludes $0.2 million in benefit from credit losses, $(0.9) million of equity compensation expense and $(2.0) million of depreciation and amortization on REO.
Previous wording
•Generated Distributable (Loss) Before Realized Gains and Losses to common stockholders of $0.9 million, or $0.02 per basic share.
Current wording
•Generated Distributable (Loss) Before Realized Gains and Losses to common stockholders of $(3.3) million, or $(0.07) per basic share.
Previous wording
•Recorded a decrease to the allowance for credit losses of $(21.4) million, for a total allowance of credit losses of $133.6 million, or approximately 7.4% of total loan commitments of $1.8 billion at September 30, 2025.
Current wording
•Recorded an increase to the allowance for credit losses of $0.1 million, for a total allowance of credit losses of $148.5 million, or approximately 9.4% of total loan commitments of $1.6 billion at March 31, 2026.
Previous wording
•Book value per share of common stock at September 30, 2025, was $7.94, inclusive of $(2.82) per basic common share of total CECL reserve.
Current wording
•Book value per share of common stock at March 31, 2026, was $7.05, inclusive of $(3.10) per basic common share of total CECL reserve.
Previous wording
•Realized $(122.4) million of total unpaid principal balance in loan repayments, principal paydowns, principal amortization, resolutions and write-offs.
Current wording
•Realized $(189.4) million of total unpaid principal balance in loan repayments, loan sales, principal paydowns, principal amortization and cost recovery.
Previous wording
•Funded $12.7 million of prior loan commitments and upsizes, including $0.4 million of capitalized deferred interest.
Current wording
•Funded $14.3 million of prior loan commitments and upsizes, including $0.4 million of capitalized deferred interest.
Previous wording
•Ended the quarter with a portfolio of 44 loan investments with an aggregate unpaid principal balance of $1.7 billion and total commitments of $1.8 billion, a weighted average stabilized LTV at origination of 65.0%, and a weighted average all-in yield at origination of S+3.92%.
Current wording
•Ended the quarter with a portfolio of 40 loan investments with an aggregate unpaid principal balance of $1.5 billion and total commitments of $1.6 billion, a weighted average stabilized LTV at origination of 66.0%, and a weighted average all-in yield at origination of S+3.96%.
Previous wording
•At September 30, 2025, carried unrestricted cash of $62.7 million, a portion of which is subject to certain liquidity covenants.
Current wording
•At March 31, 2026, carried unrestricted cash of $43.6 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 September 30, 2025, we recorded a GAAP net (loss) per basic common share of $(0.01), declared a cash dividend of $0.05 per share of common stock and reported Distributable (Loss) of $(0.40) per basic common share. Our book value as of September 30, 2025, was $7.94 per share of common stock, inclusive of $(2.82) 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 March 31, 2026, we recorded a GAAP net (loss) per basic common share of $(0.13), declared cash dividends of $0.05 per share of common stock and reported Distributable (Loss) of $(0.06) per basic common share. Our book value as of March 31, 2026, was $7.05 per share of common stock, inclusive of $(3.10) 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 and nine months ended September 30, 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 months ended March 31, 2026, and 2025:
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 and nine months ended September 30, 2025, we recorded a (benefit from) provision for credit losses of $(1.6) million and $13.1 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 nine months ended September 30, 2025, we recorded $(2.2) million and $(5.7) 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 months ended March 31, 2026, and 2025, we recorded a (benefit from) provision for credit losses of $(0.2) million and $3.8 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 months ended March 31, 2026, and 2025, we recorded $(2.0) million and $(1.4) 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
We believe it is useful to our stockholders to present Distributable Earnings (Loss) Before Realized Gains and Losses, a non-GAAP measure, to reflect our run-rate operating results as (i) our operating results are mainly comprised of net interest income earned on our loan investments net of our operating expenses, which comprise our ongoing operations, (ii) it helps our stockholders in assessing the overall run-rate operating performance of our business, and (iii) it has been a useful reference related to our common dividend as it is one of the factors we and our Board of Directors consider when declaring the dividend. We believe that our stockholders use Distributable Earnings (Loss) and Distributable Earnings (Loss) Before Realized Gains and Losses, or a comparable supplemental performance measure, to evaluate and compare the performance of our company and our peers.
Current wording
We believe it is useful to our stockholders to present Distributable Earnings (Loss) Before Realized Gains and Losses, a non-GAAP measure, to reflect our run-rate operating results as (i) our operating results are mainly comprised of net interest income earned on our loan investments net of our operating expenses, which comprise our ongoing operations, (ii) it helps our stockholders in assessing the overall run-rate operating performance of our business, and (iii) it has been a useful reference related to our common dividend as it is one of the factors management and our board of directors consider when the board declares dividends. We believe that our stockholders use Distributable Earnings (Loss) and Distributable Earnings (Loss) Before Realized Gains and Losses, or a comparable supplemental performance measure, to evaluate and compare the performance of our company and our peers.
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 and nine months ended September 30, 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 months ended March 31, 2026, and 2025:
Previous wording
Book value per share as of September 30, 2025, includes the impact of an estimated allowance for credit losses of $133.6 million, or $(2.82) 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 March 31, 2026, includes the impact of an estimated allowance for credit losses of $148.5 million, or $(3.10) 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 September 30, 2025, our loan portfolio was comprised of 44 investments, of which 43 were senior first mortgage loans totaling $1.8 billion of commitments with an unpaid principal balance of $1.7 billion, and one subordinate loan totaling $13.0 million in commitments and unpaid principal balance. At September 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.
Current wording
Interest-earning assets include our 100% loan investment portfolio. At March 31, 2026, our loan portfolio was comprised of 40 investments, all of which were senior first mortgage loans totaling $1.6 billion of commitments with an unpaid principal balance of $1.5 billion. At March 31, 2026, the weighted average risk rating of our loan portfolio was 3.2 as compared to 2.9 at December 31, 2025, 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 September 30, 2025, we held two REO office properties with an aggregate carrying value of $105.5 million, inclusive of $10.0 million of intangible assets included in other assets and $(0.2) 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 March 31, 2026, we held two REO office properties with an aggregate carrying value of $98.2 million, inclusive of $12.3 million of intangible and other assets included in other assets and $(7.4) million of unfavorable and other lease liabilities in our Condensed Consolidated Balance Sheets.
Previous wording
During the three months ended September 30, 2025, we funded $12.7 million under existing loan commitments and loan upsizes. We realized $(109.7) 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 March 31, 2026, we funded $14.3 million under existing loan commitments, loan upsizes, deferred capitalized interest and other investments. We realized $(189.4) million in aggregate reductions in portfolio unpaid principal balance from loan repayments, loan sales, principal paydowns, principal amortization and cost recoveries. 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
The following table provides detail of our loan portfolio as of September 30, 2025:
Current wording
The following table provides detail of our loan held-for-investment portfolio as of March 31, 2026:
Previous wording
(1)“Senior” means a loan primarily secured by a first priority lien on commercial real property and related personal property and also includes, when applicable, any companion subordinate loans.
Current wording
(1)“Senior” means a loan primarily secured by a first priority lien on commercial real property and related personal property and also includes, when applicable, any companion subordinate loans and other investments.
Previous wording
(5)Initial loan-to-value ratio, or initial LTV at origination, is calculated as the initial loan amount (plus any financing that ispari passu with or senior to such loan) divided by the as is appraised value (as determined in conformance with the Uniform Standards of Professional Appraisal Practice, or USPAP) as of the date of the loan was originated set forth in the original appraisal.
Current wording
(5)Initial loan-to-value ratio, or initial LTV at origination, is calculated as the initial loan amount (plus any financing that ispari passu with or senior to such loan) divided by the as is appraised value (as determined in conformance with the Uniform Standards of Professional Appraisal Practice, or USPAP) as of the date of the loan was originated, as set forth in the original appraisal.
Previous wording
(10)As of September 30, 2025, the loan was in maturity default.
Current wording
(9)As of March 31, 2026, the loan was in maturity default.
Previous wording
The map and charts below, weighted by carrying value, illustrate the geographic distribution and types of properties securing our loan portfolio as of September 30, 2025:
Current wording
The map and charts below, weighted by amortized cost and carrying value, respectively, illustrate the geographic distribution and types of properties securing our loan portfolio as of March 31, 2026:
Previous wording
As of September 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.
Current wording
As of March 31, 2026, the weighted average risk rating of our loan portfolio was 3.2, versus 2.9 as of December 31, 2025, weighted by unpaid principal balance. The change in the weighted average portfolio risk rating versus December 31, 2025, is mainly a result of select loan downgrades, two loan repayments with a risk rating of “1” and one loan sale with a risk rating of “1” during the three months ended March 31, 2026.
Previous wording
As of September 30, 2025, we had three loans that had a risk rating of “5” with an aggregate principal balance of $196.3 million, for which we recorded an allowance for credit losses of $86.5 million. These three loans were on nonaccrual status as of September 30, 2025. The performance of these assets, which include one office building, one retail property, and one hotel property, has been adversely affected to varying degrees by many factors, such as slower pace in leasing activity for office properties 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 September 30, 2025.
Current wording
As of March 31, 2026, we had five loans that had a risk rating of “5” with an aggregate principal balance of $264.7 million, including one loan downgraded to a risk rating of “5” during the three months ended March 31, 2026. These five loans were on nonaccrual status as of March 31, 2026. The performance of these assets, which include one office building, one retail property, two hotel properties and one multifamily property, has been adversely affected to varying degrees by many factors, such as slower pace in leasing activity for office properties 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.
Previous wording
During the three months ended September 30, 2025, we completed the modification of a senior loan secured by a hotel property located in Tempe, AZ. As of September 30, 2025, and December 31, 2024, the loan had a principal balance of $26.9 million and $25.2 million, respectively, and an amortized cost of $26.9 million and $25.1 million, respectively. The terms of the modification included, among other things, (i) a 2-month extension of the fully-extended maturity date to November 9, 2025, with one 6-month option to extend to May 9, 2026; and (ii) a $2.5 million upsizing of the total commitment of the loan, resulting in an aggregate $3.7 million upsizing of the total commitment when considering other modifications occurring during the twelve months ended September 30, 2025. Due to the uncertainty with respect to the collection of future principal and interest, the loan was deemed collateral dependent, assigned a risk rating of “5” and was placed on nonaccrual status. The senior loan was performing pursuant to its modified contractual terms as of September 30, 2025.
Current wording
During the three months ended September 30, 2025, we completed the modification of a senior loan secured by a hotel property located in Tempe, AZ. As of March 31, 2026, and December 31, 2025, the loan had a principal balance of $27.3 million and $26.9 million, respectively, and an amortized cost of $27.3 million and $26.9 million, respectively. The terms of the modification included, among other things, (i) an extension of the fully extended maturity date to May 9, 2026; and (ii) a $2.5 million upsizing of the total commitment of the loan, resulting in an aggregate $3.7 million upsizing of the total commitment when considering other modifications occurring during the 12 months ended March 31, 2026. Due to the uncertainty with respect to the collection of future principal and interest, the loan was deemed collateral dependent, assigned a risk rating of “5” and was placed on nonaccrual status. The senior loan was performing pursuant to its modified contractual terms as of March 31, 2026.
Previous wording
During the twelve months ended September 30, 2025, we completed the modification of a senior loan secured by a hotel property located in Minneapolis, MN. As of September 30, 2025, and December 31, 2024, the loan had a principal balance of $37.5 million and $52.6 million, respectively, and an amortized cost of $37.5 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 September 30, 2025.
Current wording
During the three months ended June 30, 2025, we completed the modification of a senior loan secured by a hotel property located in Minneapolis, MN. As of March 31, 2026, and December 31, 2025, the loan had a principal balance of $39.4 million and $38.0 million, respectively, and an amortized cost of $39.4 million and $38.0 million, respectively. The terms of the modification included, among other things, (i) a three-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 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 March 31, 2026.
Previous wording
As of September 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 63.3% of portfolio loan-level financing as of September 30, 2025.
Current wording
As of March 31, 2026, our portfolio financing consisted of repurchase facilities, secured credit facilities and a mortgage loan payable collateralized by loans held-for-investment and REO, 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 64.3% of portfolio loan-level financing as of March 31, 2026.
Previous wording
The following table summarizes assets at carrying values that served as collateral for the future payment obligations of the repurchase facilities, the asset-specific financing facility, the term financing facility, the secured credit facility and the CRE CLOs as of September 30, 2025, and December 31, 2024:
Current wording
The following table summarizes assets at carrying values that served as collateral for the future payment obligations of the repurchase facilities, the secured credit facility, the mortgage loan payable and the CRE CLOs as of March 31, 2026, and December 31, 2025:
Previous wording
(1)As of September 30, 2025, real estate owned, net included $7.2 million in other assets and liabilities related to acquired leases.
Current wording
(1)As of March 31, 2026, real estate owned, net included $5.0 million in other assets and liabilities.
Previous wording
As of September 30, 2025, we had repurchase facilities in place with three counterparties with aggregate outstanding borrowings of $0.4 billion, which financed a portion of our loans held-for-investment and real estate owned. As of September 30, 2025, the weighted average borrowing rate on our repurchase facilities was 7.0%, the weighted average advance rate was 57.7%, and the term to maturity ranged from 60 days to approximately 1.0 year, with a weighted average remaining maturity of 0.8 years.
Current wording
As of March 31, 2026, we had repurchase facilities in place with three counterparties with aggregate outstanding borrowings of $0.3 billion, which financed a portion of our loans held-for-investment and real estate owned. As of March 31, 2026, the weighted average borrowing rate on our repurchase facilities was 6.1%, the weighted average advance rate was 54.5%, and the term to maturity ranged from approximately 0.07 years to approximately 0.33 years, with a weighted average remaining maturity of 0.3 years.
Previous wording
(3)Collateral value includes real estate owned with a carrying value of $70.7 million.
Current wording
(3)Collateral value includes real estate owned with a carrying value of $61.9 million.
Previous wording
We have financed certain pools of our loans through the issuance of CRE CLOs. At September 30, 2025, we held two CRE CLOs outstanding: GPMT 2021-FL4 and GPMT 2021-FL3, totaling $0.7 billion of outstanding borrowings, financing 26 of our existing senior loan investments with an aggregate principal balance, inclusive of restricted cash, totaling $0.9 billion. As of September 30, 2025, our CRE CLOs financed 50.0% 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 March 31, 2026, we held two outstanding CRE CLOs: GPMT 2021-FL4 and GPMT 2021-FL3, totaling $0.5 billion of outstanding borrowings, financing 24 of our existing senior loan investments with an aggregate principal balance, inclusive of restricted cash, totaling $0.7 billion. As of March 31, 2026, our CRE CLOs financed 47.4% 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
In December 2022, we entered into a secured credit facility with a maximum borrowing capacity of $100.0 million. The facility had aggregate outstanding borrowings of $79.3 million as of September 30, 2025, which financed a portion of our loans held for investment on a non-mark-to-market basis. The facility matures on December 21, 2026.
Current wording
In December 2022, we entered into a secured credit facility with a maximum borrowing capacity of $100.0 million. The facility had aggregate outstanding borrowings of $71.8 million as of March 31, 2026, which financed a portion of our loans held for investment on a non-mark-to-market basis. The facility matures on December 21, 2026.
Previous wording
As of September 30, 2025, the total debt-to-equity ratio with respect to our loans held-for-investment was 1.9:1.0, and our recourse leverage ratio was 0.8:1.0. The following table represents our recourse leverage ratio and total leverage ratio as of September 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.
Current wording
As of March 31, 2026, the total debt-to-equity ratio with respect to our loans held-for-investment was 1.7:1.0, and our recourse leverage ratio was 0.7:1.0. The following table represents our recourse leverage ratio and total leverage ratio as of March 31, 2026, and December 31, 2025. 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 September 30, 2025, 97.3% 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 September 30, 2025, 2.7% 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 March 31, 2026, 97.6% 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, 2026, 2.4% 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 table details our loan portfolio’s net floating rate exposure as of September 30, 2025:
Current wording
The following table details our portfolio’s net floating-rate exposure as of March 31, 2026:
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Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Our GAAP net (loss) attributable to common stockholders was $(6.0) million (or $(0.13) per basic weighted average share) for the three months ended March 31, 2026, as compared to GAAP net (loss) attributable to common stockholders of $(27.4) million (or $(0.58) per basic weighted average share) for the three months ended December 31, 2025. The increase in GAAP results was primarily due to a benefit from credit losses of $0.2 million during the three months ended March 31, 2026, compared to a provision for credit losses of $(14.4) million and impairment loss on real estate owned of $(6.8) million during the three months ended December 31, 2025.
Current report — wording carried from elsewhere
Comparison of the Three Months Ended March 31, 2026, and 2025
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
(4)Collateral value includes real estate owned with a carrying value of $34.8 million.