Granite Point Mortgage Trust (NYSE:GPMT) executives said improving liquidity across commercial real estate credit markets helped drive meaningful repayment and resolution activity in 2025, while the company continued to work through a handful of higher-risk loans and two REO properties. Management also highlighted post-quarter-end loan payoffs and debt cost reductions as key early 2026 developments, even as the fourth quarter included a sizable credit-loss provision and a REO impairment that weighed on book value.
Management sees constructive market conditions, but limited deal supply
President and CEO Jack Taylor described 2025 as a “constructive year” for commercial real estate, citing heightened deal activity and spread compression after a brief spring pause tied to macro uncertainty. Taylor said capital availability broadened during the fourth quarter to include “certain office properties,” alongside improving fundamentals across many markets and property types.
Looking ahead, Taylor said early 2026 momentum has continued and could support higher transaction activity and asset resolution progress. He emphasized ongoing efforts to reduce higher-cost debt and advance asset resolutions, which he said should reduce portfolio risk and improve net interest spread.
Portfolio details: repayments, risk ratings, and REO updates
Chief Investment Officer Steve Alpart said Granite Point ended 2025 with $1.8 billion of total loan portfolio commitments, including $1.7 billion of outstanding principal balance and roughly $77 million of future fundings (about 4% of total commitments). The portfolio included 43 investments with an average unpaid principal balance of about $39 million and a weighted average stabilized loan-to-value of 65% at origination, according to Alpart.
Alpart said the portfolio’s weighted average risk rating increased slightly to 2.9 from 2.8 at September 30. The realized loan portfolio yield for the fourth quarter was 6.7%; excluding nonaccrual loans, it would have been 8%.
For 2025, the company reported repayments and resolutions totaling about $469 million, alongside about $51 million of fundings on existing commitments and other investments. During the fourth quarter, Granite Point had $45 million of repayments and partial paydowns, including a full repayment of a $33 million multifamily loan in North Carolina. With about $15 million of future fundings and other investments in the quarter, Alpart said the net loan portfolio declined by about $30 million.
Post-quarter-end, management said the company received two full loan repayments totaling $174 million. In response to a later investor question, Taylor characterized the year-to-date 2026 repayments as coming from “a retail, a multifamily” loan, and he stressed that these were “vintage loans” that paid off at par.
On credit issues, Alpart said that as of December 31 Granite Point had four risk-rated “five” loans with total unpaid principal balance of about $249 million. He discussed the following loans:
- Atlanta multifamily: A $53 million loan secured by a 284-unit multifamily property in the Atlanta MSA was downgraded from risk rating 4 to 5. Alpart said occupancy has improved, but the local market remains soft and the company is not seeing the return of expected pricing power. Granite Point is reviewing resolution alternatives, which may include a property sale.
- Chicago loan: Management reiterated that a partial resolution occurred with the sale of upper-floor office space for residential conversion. The remaining collateral securing the $76 million loan is retail space. Alpart said the situation is now “cleaner and simpler,” and Granite Point expects the ultimate resolution—likely via a property sale—in the nearer term.
- Tempe hotel and retail: For a $27 million loan, Alpart said the company is reviewing resolution alternatives that could include a property sale.
- Minneapolis office: For a $93 million office loan, Alpart said the company anticipates a longer resolution timeline given persistent local market challenges.
Alpart also updated investors on Granite Point’s two REO properties. For a suburban Boston asset, he said the company has had positive leasing success and is pursuing value-enhancing repositioning opportunities in coordination with partners and local stakeholders, while continuing to invest capital to maximize outcomes. For a Miami Beach Class A office property, he said leasing discussions have been positive with existing and prospective tenants, and that Granite Point will “prudently invest” while reviewing resolution alternatives that include a potential sale.
Fourth-quarter results: net loss, CECL build, and book value decline
Chief Financial Officer Blake Johnson reported a GAAP net loss attributable to common stockholders of $27.4 million, or $0.58 per basic share, for the fourth quarter. Johnson said results included a $14.4 million provision for credit losses (about $0.30 per share) and a $6.8 million impairment loss on the Miami Beach REO asset (about $0.14 per share). He also reported an attributable loss for the quarter of $2.7 million, or $0.06 per basic share.
Book value per share was $7.29 at December 31, down $0.65 from the third quarter, which Johnson attributed largely to the credit-loss provision and the REO impairment.
Granite Point’s aggregate CECL reserve was about $148 million at year-end, up from $134 million in the prior quarter. Johnson said the roughly $15 million increase was driven mainly by higher specific reserves on collateral-dependent loans and worsening macroeconomic forecasts in the company’s CECL model. He added that about 70% of the total allowance was allocated to individually assessed loans.
Johnson said that at quarter-end Granite Point had about $249 million of principal balance across four loans with specific CECL reserves of around $105 million, representing 42% of unpaid principal balance. He said management believes the company is “appropriately reserved” and that additional resolutions should “meaningfully reduce” the total CECL reserve.
In response to an analyst question, Johnson said the quarter’s CECL update incorporated the latest economic forecast in the company’s Trepp model, with the “biggest driver” being a decrease in the CRE price index. He noted forecasts could change and the general reserve could move accordingly. On specific reserves, he said the company assesses the fair value of underlying collateral each quarter and believes reserves are appropriate absent changes in collateral values.
Leverage, liquidity, and outlook for originations
On liquidity, Johnson said Granite Point ended the quarter with about $66 million of unrestricted cash, and total leverage increased slightly from 1.9x to 2.0x. He added that, as of a few days before the call, cash stood at about $55 million. Johnson described the funding mix as “well diversified and stable,” and said the company continues to have “very constructive relationships” with financing counterparties. He added Granite Point expects to expand financing capacity once it returns to new originations.
Taylor said that earlier in February the company repaid a “substantial amount” of higher-cost debt, reducing the cost of repurchase facilities by roughly 60 basis points and generating an estimated annual savings of $0.10 per share.
Management reiterated that near-term focus remains on resolutions and repayments, with portfolio balances expected to trend lower before originations resume. Taylor said the company expects to begin regrowing the portfolio in the latter half of 2026, with timing dependent on repayments, resolution pace, market conditions, and other factors. In the Q&A, executives also emphasized that the company has tools to rebuild leverage and earnings over time, including recycling capital from resolutions and REO exits and reintroducing originated loans into financing structures such as CLOs.
About Granite Point Mortgage Trust (NYSE:GPMT)
Granite Point Mortgage Trust, Inc is a specialty finance company that invests directly in commercial real estate debt. The company focuses on originating, acquiring and managing senior preferred and mezzanine loans secured by income-producing real estate across diverse property types, including multifamily, office, industrial and retail assets. Granite Point Mortgage Trust operates as a real estate investment trust (REIT), providing investors with exposure to floating-rate commercial mortgage loan investments.
Granite Point’s investment strategy centers on structuring loans to deliver attractive risk-adjusted returns, with portfolio allocations spanning senior loans, B-notes and mezzanine financings.
