Granite Point Mortgage Trust Inc

NYSE:GPMTUnited States

Nov 6, 2024

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• *DJ Granite Point Mortgage 3Q Loss/Shr 69c >GPMT, from 5:25PM ET on Wednesday Nov 06, 2024 by Dow Jones

  5:25PM ET on Wednesday Nov 06, 2024 by Dow Jones
  Companies Mentioned: GPMT

• Granite Point Mortgage Trust Inc. Reports Third Quarter 2024 Financial Results and Post Quarter-End Update, from 5:25PM ET on Wednesday Nov 06, 2024 by Dow Jones

  5:25PM ET on Wednesday Nov 06, 2024 by Dow Jones
  Companies Mentioned: GPMT
  Reconciliation of GAAP Net (Loss) Income to Distributable (Loss)(1) : GAAP Net (Loss) income attributable to common stockholders $ (34,624) Adjustments: Provision for credit losses 27,911 Depreciation and amortization on real estate owned 1,945 Non-cash equity compensation 2,534 --------------- Distributable (Loss) Earnings before realized losses and recoveries $ (2,234) --------------- Realized losses on write-offs, loan sales and REO conversions (44,580) Recoveries of previous write-offs $ 8,819 --------------- Distributable (Loss) Earnings $ (37,995) =============== Distributable (Loss) Earnings per basic share of common stock $ (0.75) Distributable (Loss) Earnings per diluted share of common stock $ (0.75) Distributable (Loss) Earnings before realized losses per basic share of common stock $ (0.04) Distributable (Loss) Earnings before realized losses per diluted share of common stock $ (0.04) Basic weighted average common shares 50,526,492 Diluted weighted average common shares 50,526,492 (1) Beginning with our Annual Report on Form 10-K for the year ended December 31, 2023, and for all subsequent reporting periods ending on or after December 31, 2023, we have elected to present Distributable (Loss) Earnings, a measure that is not prepared in accordance with GAAP, as a supplemental method of evaluating our operating performance. Distributable (Loss) Earnings replaces our prior presentation of Core Earnings with no changes to the definition. In order to maintain our status as a REIT, we are required to distribute at least 90% of our taxable income as dividends. Distributable (Loss) Earnings is intended to overtime serve as a general, though imperfect, proxy for our taxable income. As such, Distributable (Loss) Earnings is considered a key indicator of our ability to generate sufficient income to pay our common dividends, which is the primary focus of income-oriented investors who comprise a meaningful segment of our stockholder base. We believe providing Distributable (Loss) Earnings on a supplemental basis to our Net (Loss) Income and cash flow from operating activities, as determined in accordance with GAAP, is helpful to stockholders in assessing the overall operating performance of our business. For reporting purposes, we define Distributable (Loss) Earnings as Net (Loss) Income attributable to our stockholders, computed in accordance with GAAP, excluding: (i) non-cash equity compensation expenses; (ii) depreciation and amortization; (iii) any unrealized gains (losses) or other similar non-cash items that are included in Net (Loss) Income for the applicable reporting period (regardless of whether such items are included in other comprehensive income or in Net (Loss) Income for such period); and (iv) certain non-cash items and one-time expenses. Distributable (Loss) Earnings may also be adjusted from time to time for reporting purposes to exclude one-time events pursuant to changes in GAAP and certain other material non-cash income or expense items approved by a majority of our independent directors. The exclusion of depreciation and amortization from the calculation of Distributable (Loss) Earnings only applies to debt investments related to real estate to the extent we foreclose upon the property or properties underlying such debt investments. While Distributable (Loss) Earnings excludes the impact of the unrealized non-cash current provision for credit losses, we expect to only recognize such potential credit losses in Distributable (Loss) Earnings 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 nonrecoverability 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 (Loss) Earnings 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 September 30, 2024, we recorded provision for credit losses of $(27.9) million, which has been excluded from Distributable (Loss) Earnings, consistent with other unrealized gains (losses) and other non-cash items pursuant to our existing policy for reporting Distributable (Loss) Earnings referenced above. During the three months ended September 30, 2024, we recorded $(1.9) million, in depreciation and amortization on REO and related intangibles, which has been excluded from Distributable (Loss) Earnings consistent with other unrealized gains (losses) and other non-cash items pursuant to our existing policy for reporting Distributable (Loss) Earnings referenced above. Distributable (Loss) Earnings does not represent Net (Loss) Income or cash flow from operating activities and should not be considered as an alternative to GAAP Net (Loss) Income, or an indication of our GAAP cash flows from operations, a measure of our liquidity, or an indication of funds available for our cash needs. In addition, our methodology for calculating Distributable (Loss) Earnings may differ from the methodologies employed by other companies to calculate the same or similar supplemental performance measures, and, accordingly, our reported Distributable (Loss) Earnings may not be comparable to the Distributable (Loss) Earnings reported by other companies. We believe it is useful to our stockholders to present Distributable (Loss) Earnings before realized losses 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 (Loss) Earnings and Distributable (Loss) Earnings before realized losses, or a comparable supplemental performance measure, to evaluate and compare the performance of our company and our peers.