Granite Point cuts dividend to one cent and resolves troubled loan

Granite Point ($GPMT) Mortgage Trust reduced its quarterly common dividend to $0.01 per share to preserve capital and improve financial flexibility. The company also resolved a $52.4 million non-accrual loan secured by a Georgia multifamily property. It expects a write-off of approximately $19.9 million, covered by a previously recorded credit-loss allowance.

The resolution was at the loan’s carrying value, which is not the same as recovering its full unpaid principal. Granite Point also received approximately $19.5 million from two office-loan repayments at par and reported $32.4 million of unrestricted cash. The update combines a material reduction in shareholder distributions with progress on problem assets. The disclosed write-off should not be counted again as an entirely new unreserved loss.

Sources:

• Granite Point — dividend and business update