Granite Point Mortgage Trust Stock

Granite Point Mortgage Trust Inc. operates as an internally-managed real estate finance company.

The company focuses primarily on directly originating, investing in, and managing senior floating-rate commercial mortgage loans and other debt and debt-like commercial real estate investments.

Investment Strategy

The company’s investment strategy is to directly originate, invest in and manage a portfolio of primarily senior floating-rate commercial real estate loans and other debt and debt-like instruments secured by various types of institutional quality commercial properties located in attractive markets across the United States and managed by experienced owners. These loans may vary in term and may bear interest at a fixed or floating rate, although its primary focus is on floating-rate loans. The company typically provides intermediate-term bridge or transitional financing for a variety of purposes, including acquisitions, recapitalizations, refinancings and a range of business plans, including lease-up, renovation, repositioning and repurposing of the commercial property.

From time to time, the company may also directly originate and invest in mezzanine loans, subordinated mortgage interests (sometimes referred to as a B-note) and other real estate securities, and may also invest in preferred equity investments and other investments that are subordinated or otherwise junior in an issuer’s capital structure and that involve privately negotiated structures. The only securities the company owns are the retained interests from its securitization financing transactions.

Portfolio

As of December 31, 2022, the company’s investment portfolio consisted of 90 commercial real estate loan investments with an aggregate principal balance of $3.4 billion and an additional $0.2 billion of future funding obligations.

Financing Strategy and Leverage

The company finances its business through public and private offerings of its equity and debt securities, asset-backed financings and its outstanding commercial real estate collateralized loan obligations, or CRE CLOs. In addition to its mix of funding sources, the company may use other forms of financing, including additional securitizations and public and private, secured and unsecured, debt issuances by it or its subsidiaries. The company also finances pools of commercial real estate loans through CRE CLOs.

Tax Status

The company operates as a real estate investment trust (REIT), as defined under the Internal Revenue Code of 1986, as amended, or the Code. The company has elected to be treated as a REIT for the U.S. federal income tax purposes. To qualify as a REIT, it is required to meet certain investment and operating tests and annual distribution requirements. The company generally would not be subject to the U.S. federal income taxes on its taxable income to the extent that it annually distributes all of its net taxable income to stockholders, do not participate in prohibited transactions and maintain its intended qualification as a REIT. The company has designated one of its subsidiaries as a taxable REIT subsidiary (TRS), as defined in the Code, to engage in such activities, and it might form additional TRSs in the future. The company also operates its business in a manner that would permit it to maintain its exclusion from registration under the Investment Company Act of 1940, as amended, or the Investment Company Act.

History

Granite Point Mortgage Trust Inc. was founded in 2015. The company was incorporated in Maryland in 2017.