Scott Kennedy’s mREIT Earnings Series: Assessing Granite Point Mortgage’s Performance For Q1 2024
Summary
This earnings assessment article reviews GPMT’s BV and core earnings/EAD performance during Q1 2024 and compares results to my expectations. Earnings remain a key driver to stock performance.
GPMT’s BV and adjusted core earnings/EAD were a notable underperformance. Simply put, very disappointing. GPMT’s CECL reserves notably increased which led to most of the company’s BV underperformance.
GPMT added 5 new loans to the company’s non-accrual status as of 3/31/2024. In comparison, I projected only 2 new non-accrual loans during Q1 2024.
From today’s results (including updating forward modeling), GPMT received a percentage recommendation range and risk/performance rating downgrade.
While GPMT trades at an extremely large BV discount, this stock should only be considered by extremely risk tolerant subscribers with a long-term time horizon. Volatility will continue through 2024.
Formatting Change to this Article Series
We have recently changed the format of this earnings-related article series (less wording, more visual images). This process remains ongoing and future changes will likely occur.