Granite Point Mortgage TrustNYSE: GPMT

While stocks have been hitting all-time highs, investors might not want to sell. However, they might also be in need of passive income.

NEW YORK--(BUSINESS WIRE)--Granite Point Mortgage Trust Inc. Announces Second Quarter 2024 Common and Preferred Stock Dividends and Business Update.

Granite Point Mortgage Trust (GPMT) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.

Granite Point Mortgage Trust has cut its quarterly cash dividend by 25% to $0.15 per share. The mREIT's book value decreased by 13.7% sequentially due to a rise in provision for credit losses of $75.6 million. Despite this, I continue to hold a substantial amount of the 10.5% yielding preferred shares, with $155 million in unrestricted cash as of the end of the first quarter.

Granite Point Mortgage Trust is a small mortgage REIT with a $3 billion loan book invested in floating rate loans. GPMT has experienced significant office loan defaults in Q2-Q4 2023, resulting in write-offs and under-earning its dividend. While a 67% discount to book value is massive, I discuss why I'm staying away from this one.

Granite Point Mortgage Trust is trading at a 64% discount to book value as the market expects further deterioration of office fundamentals. The mREIT's 17% dividend yield is not being covered by distributable earnings. A further dip in book value looks likely without a cut to the quarterly distribution.

Granite Point Mortgage Trust Inc. (GPMT) Q4 2023 Earnings Call Transcript

Granite Point Mortgage Trust (GPMT) came out with quarterly earnings of $0.14 per share, beating the Zacks Consensus Estimate of a loss of $0.42 per share. This compares to loss of $0.16 per share a year ago.

NEW YORK--(BUSINESS WIRE)--Granite Point Mortgage Trust Inc. Announces Dates for Fourth Quarter and Full Year 2023 Earnings Release and Conference Call.