Granite Point Mortgage Trust Inc. (NYSE: GPMT) reported Q3 EPS of $0.27, $0.09 better than the analyst estimate of $0.18.

Third Quarter 2020 Highlights

• GAAP net loss of $(24.7) million, or $(0.45) per basic share, inclusive of $(43.7) million, or $(0.79) per basic share, of one-time restructuring charges related to the internalization process.(1)
• Core Earnings(2) of $15.0 million, or $0.27 per basic share, excluding the one-time restructuring charges.
• Book value of $16.93 per common share, inclusive of $(1.47) per common share related to the allowance for credit losses. Declared a dividend of $0.20 per common share.
• Realized prepayments and principal amortization of $209.2 million in UPB, including two CRE securities positions, totaling $24.5 million, that were repaid at par.
• Sold 6 loans with an aggregate principal amount of approximately $191.4 million resulting in approximately $10.0 million realized loss on sale.
• Funded an additional $54.5 million on existing loan commitments.
• As of quarter end portfolio principal balance of $4.1 billion and $4.7 billion in total commitments, comprised of 99% senior first mortgage loans and over 98% floating rate; no exposure to securities.
• Portfolio has a weighted average stabilized LTV of 63.6%(3) and weighted average yield at origination of LIBOR + 4.18%(4). Office, multifamily and industrial assets represents over 74% of the investment portfolio.
• Ended Q3 with over $353 million in cash on hand.
• Over $1.5 billion of borrowings is non-mark-to-market, including two CLOs, an asset-specific financing facility, senior secured term loan facilities and senior unsecured convertible bonds.
• Closed a strategic financing commitment of up to $300 million, in the form of five-year senior term loan facilities and 6.066 million warrants to purchase GPMT common stock.(5)
• Arranged a short-term $54.1 million increase in borrowings on the J.P Morgan financing facility.

Post Quarter-End Update

• On October 10, 2020, entered into an Internalization Agreement with our Manager pursuant to which we will internalize our management function effective as of December 31, 2020.
• As of November 6, 2020, liquidity of approximately $325 million; option to borrow an additional $75 million in proceeds under the term loan facilities through September 2021.
• Through November 9, 2020, funded approximately $18.1 million of commitments on the existing loan portfolio; no new loan commitments.
• In Q4 realized approximately $158.2 million of loan repayments through November 9, 2020.

Jack Taylor, Granite Point’s President, Chief Executive Officer and Director, said, “We made substantial progress during the third quarter with a strategic focus on preserving value for our stockholders and positioning the Company for the current environment and profitable growth opportunities ahead. We reinstated our common stock dividend, which was more than covered by our Core Earnings. We secured $300 million in additional, flexible capital further improving our liquidity, which as of November 6th was reflected in a cash balance of over $325 million. Our defensively positioned portfolio of 99% senior first mortgage loans generated strong results. Additionally, the process to internalize the Company’s management function has been progressing and is anticipated to close by year-end. We continue to move defensively during these difficult times but also remain excited about future opportunities that will allow us to generate attractive returns to our stockholders over time.”

For earnings history and earnings-related data on Granite Point Mortgage Trust Inc. (GPMT) click here.