Granite Point Slashes Dividend to $0.01, Resolves $52M Nonaccrual Loan
GPMT is trading near its 52-week low of $0.85 (5.3% above the low).
Summary
Granite Point cut its quarterly common dividend to $0.01 per share from a prior level, citing capital preservation. The company also resolved a $52.4M risk-rated 5 loan on a Stockbridge, GA multifamily property, expecting a $19.9M write-off that was already reserved. Two office loans totaling $19.5M were repaid at par. The dividend cut signals ongoing stress in the portfolio, though the loan resolutions and CLO refinancing (38bps cost reduction) show progress on liquidity. With only $32.4M in unrestricted cash, the dividend cut is a defensive move to preserve capital. This follows the Q2 net loss of $62M reported in August and the JPMorgan facility extension. The preferred dividend remains unchanged at $0.4375 per share.
At the time of this announcement, GPMT was trading at $0.90 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $43.1M. The 52-week trading range was $0.85 to $3.12. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: BusinessWire.