Granite Point Mortgage Trust Inc. (NYSE: GPMT) today
provided an update on its overall business operations and its first
quarter 2020 common stock dividend in connection with the impact of
the intensifying global pandemic of the COVID-19 virus.
As of March 25, 2020, the composition of the Company’s
commercial real estate investment portfolio was approximately 98.8%
senior loans, approximately 0.6% subordinated loans and
approximately 0.6% securities. Consistent with Granite Point’s
overall fundamental value oriented investment philosophy, its
portfolio is spread across many geographies and property types
providing significant diversification benefits.
The Company’s investment portfolio is financed through a mix of
term-matched, non-mark-to-market collateralized loan obligations
and asset-specific financings, as well as secured revolving
repurchase facilities. The extraordinary macroeconomic events
manifesting as a result of the COVID-19 pandemic have negatively
impacted the overall level of liquidity across capital markets,
including the commercial real estate loan markets. These events may
negatively affect the performance of commercial real estate
properties. With respect to the Company’s portfolio, Granite Point
and its borrowers and sponsors are confident that there is
significant value in the underlying assets.
The management team continues to actively monitor the market
environment, as well as the Company’s liquidity position. The
Company has posted cash collateral with respect to certain loans
and is in constructive discussions with its lenders. There can be
no assurances that macroeconomic conditions will not worsen, which
may negatively impact the Company.
Due to the unprecedented market conditions and uncertainty
caused by the COVID-19 pandemic, the Board of Directors and
management team believe it is prudent and in the best interest of
the Company to conserve available liquidity at this time. As a
result, the Board of Directors has decided to suspend the Company’s
first quarter 2020 common stock dividend. The Board of Directors
will continue to evaluate the Company’s dividend policy in respect
of future quarters based upon customary considerations, including
market conditions. The Company will also continue to monitor its
taxable income and take measures, if necessary, to ensure that it
meets the minimum distribution requirements to maintain its status
as a REIT.
“As we navigate this unprecedented and uncertain environment
caused by the COVID-19 pandemic, our paramount concern is the
health and well-being of our personnel and all of our stakeholders
and business partners,” stated Jack Taylor, Granite Point’s
President and Chief Executive Officer. “As an organization, we
continue to conduct our business activities with minimal
interruption and remain engaged in active dialogue with our
borrowers regarding their properties and business operations. In
addition, we have no outstanding new loan commitments and continue
to primarily focus on actively managing our liquidity and existing
investments.”
Forward-Looking Statements
This release contains, in addition to historical information,
certain forward-looking statements that are based on our current
assumptions, expectations and projections about future performance
and events. In particular, statements regarding future economic
performance, finances, and expectations and objectives of
management, the continued impact of the COVID-19 pandemic on our
business and results of operations, the capital markets and
economy, our ability to pay future dividends, the results of our
discussions with lenders and business partners, and the value of
our assets constitute forward-looking statements. Forward-looking
statements are not historical in nature and can be identified by
words such as “believes,” “expects,” “may,” “will,” “should,”
“seeks,” “approximately,” “intends,” “plans,” “estimates,”
“anticipates,” “targets,” “goals,” “future,” “outlook,”
“potential,” “continues,” “likely” and other expressions that are
predictions of or indicate future events and trends and that do not
relate to historical matters.
Although the forward-looking statements contained in this press
release are based upon information available at the time the
statements are made and reflect the best judgment of our senior
management, forward-looking statements inherently involve known and
unknown risks, uncertainties and other factors, which may cause the
actual results, performance or achievements to differ materially
from anticipated future results. Important factors that could cause
actual results to differ materially from expected results,
including, among other things, those described in our filings with
the Securities and Exchange Commission (“SEC”), including our
annual report on Form 10-K for the year ended December 31, 2019,
and any subsequent Quarterly Reports on Form 10-Q under the caption
“Risk Factors.” Factors that could cause actual results to differ
include, but are not limited to: the general political, economic
and competitive conditions in the markets in which we invest;
defaults by borrowers in paying debt service on outstanding
indebtedness and borrowers’ abilities to manage and stabilize
properties; our ability to obtain financing arrangements on terms
favorable to us or at all; the level and volatility of prevailing
interest rates and credit spreads; reductions in the yield on our
investments and an increase in the cost of our financing; general
volatility of the securities markets in which we participate; the
return or impact of current or future investments; allocation of
investment opportunities to us by our Manager; increased
competition from entities investing in our target asset
investments; effects of hedging instruments on our target
investments; changes in governmental regulations, tax law and
rates, and similar matters; our ability to maintain our
qualification as a REIT for U.S. federal income tax purposes and
our exclusion from registration under the Investment Company Act;
availability of desirable investment opportunities; availability of
qualified personnel and our relationship with our Manager; the time
and cost of the process to internalize our management function;
estimates relating to our ability to make distributions to our
stockholders in the future; hurricanes, earthquakes and other
natural disasters, acts of war and/or terrorism, public health
crises and other events that may cause unanticipated and uninsured
performance declines and/or losses to us or the owners and
operators of the real estate securing our investments; potential
risks and uncertainties relating to the ultimate geographic spread
of COVID-19, the severity of the disease, the duration of the
COVID-19 outbreak, actions that may be taken by governmental
authorities to contain the COVID-19 outbreak or to treat its
impact, the potential negative impacts of COVID-19 on the global
economy and the impacts of COVID-19 on the Company’s financial
condition and business operation; deterioration in the performance
of the properties securing our investments that may cause
deterioration in the performance of our investments and,
potentially, principal losses to us; and difficulty or delays in
redeploying the proceeds from repayments of our existing
investments. These forward-looking statements apply only as of the
date of this press release. We are under no duty to update any of
these forward-looking statements after the date of this press
release to conform these statements to actual results or revised
expectations. You should, therefore, not rely on these
forward-looking statements as predictions of future events.
About Granite Point Mortgage Trust Inc.
Granite Point Mortgage Trust Inc. is a Maryland corporation
focused on directly originating, investing in and managing senior
floating rate commercial mortgage loans and other debt and
debt-like commercial real estate investments. Granite Point is
headquartered in New York, NY, and is externally managed by Pine
River Capital Management L.P. Additional information is available
at www.gpmtreit.com.
Additional Information
Stockholders of Granite Point and other interested persons may
find additional information regarding the company at the Securities
and Exchange Commission’s Internet site at www.sec.gov or by
directing requests to: Granite Point Mortgage Trust Inc., 3 Bryant
Park, 24th floor, New York, NY 10036, telephone (212) 364-5500
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200325005777/en/
Investors: Marcin Urbaszek, Chief Financial Officer, Granite
Point Mortgage Trust Inc., (212) 364-5500,
investors@gpmortgagetrust.com.
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