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NEW YORK, May 6, 2021 – Granite Point Mortgage Trust Inc. (NYSE: GPMT) ("GPMT," "Granite Point" or the "Company") today announced its financial results for the quarter ended March 31, 2021, and provided an update on its activities subsequent to quarter-end. A presentation containing first quarter 2021 financial highlights and activity post quarter-end can be viewed at www.gpmtreit.com.

“Granite Point is off to a great start in 2021, generating strong financial results and successfully executing on our liabilities management strategy while restarting new loan originations,” stated Jack Taylor, Granite Point’s President, Chief Executive Officer and Director. “Continued strong performance of our investment portfolio helped generate solid earnings that were well in excess of our dividend and drove growth in our book value per share. Combined with our term financing facility closed in February, our recent $824 million CRE CLO further diversifies our sources of funding, lowers our cost of funds and increases our percentage of non-mark-to-market loan-level financing to approximately 70%, while releasing additional liquidity to support growth in new loan originations. Our company is well-positioned to continue the positive momentum and take advantage of attractive investment opportunities in the market.”

(2)Stabilized loan-to-value ratio (LTV) is calculated as the fully funded loan amount (plus any financing that is pari passu with or senior to such loan), including all contractually provided for future fundings, divided by the as stabilized value (as determined in conformance with USPAP) set forth in the original appraisal. As stabilized value may be based on certain assumptions, such as future construction completion, projected re-tenanting, payment of tenant improvement or leasing commissions allowances or free or abated rent periods, or increased tenant occupancy.

Granite Point Mortgage Trust Inc. will host a conference call on May 7, 2021 at 10:00 a.m. ET to discuss first quarter 2021 financial results and related information. To participate in the teleconference, approximately 10 minutes prior to the above start time, please call toll-free (833) 255-2835 (or (412) 902-6769 for international callers), and ask to be joined into the Granite Point Mortgage Trust Inc. call. You may also listen to the teleconference live via the Internet at www.gpmtreit.com, in the Investor Relations section under the Events & Presentations link. For those unable to attend, a telephone playback will be available beginning May 7, 2021 at 12:00 p.m. ET through May 13, 2021 at 12:00 a.m. ET. The playback can be accessed by calling (877) 344-7529 (or (412) 317-0088 for international callers) and providing the Access Code 10154930. The call will also be archived on the Company’s website in the Investor Relations section under the Events & Presentations link.

This press release contains, or incorporates by reference, not only historical information, but also forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve numerous risks and uncertainties. Our actual results may differ from our beliefs, expectations, estimates and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Forward-looking statements are not historical in nature and can be identified by words such as “anticipate,” “estimate,” “will,” “should,” “expect,” “target,” “believe,” “outlook,” “potential,” “continue,” “intend,” “seek,” “plan,” “goals,” “future,” “likely,” “may” and similar expressions or their negative forms, or by references to strategy, plans or intentions. By their nature, forward-looking statements speak only as of the date they are made, are not statements of historical facts or guarantees of future performance and are subject to risks, uncertainties, assumptions or changes in circumstances that are difficult to predict or quantify, in particular those related to the COVID-19 pandemic, including the ultimate impact of COVID-19 on our business, financial performance and operating results. Our expectations, beliefs and estimates are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that management's expectations, beliefs and estimates will prove to be correct or be achieved, and actual results may vary materially from what is expressed in or indicated by the forward-looking statements.

These forward-looking statements are subject to risks and uncertainties, including, among other things, those described in our Annual Report on Form 10-K for the year ended December 31, 2020 and any subsequent Form 10-Q and Form 8-K filings made with the SEC, under the caption “Risk Factors.” These risks may also be further heightened by the continued and evolving impact of the COVID-19 pandemic. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.

In addition to disclosing financial results calculated in accordance with United States generally accepted accounting principles (GAAP), this press release and the accompanying earnings presentation present non-GAAP financial measures, such as Distributable Earnings and Distributable Earnings per basic common share, that exclude certain items. Granite Point management believes that these non-GAAP measures enable it to perform meaningful comparisons of past, present and future results of the Company’s core business operations, and uses these measures to gain a comparative understanding of the Company’s operating performance and business trends. The non-GAAP financial measures presented by the Company represent supplemental information to assist investors in analyzing the results of its operations. However, because these measures are not calculated in accordance with GAAP, they should not be considered a substitute for, or superior to, the financial measures calculated in accordance with GAAP. The Company’s GAAP financial results and the reconciliations from these results should be carefully evaluated. See the GAAP to non-GAAP reconciliation table on page 6 of this release.


	March 31, 2021		December 31, 2020
ASSETS	(unaudited)
Loans held-for-investment	$	3,859,269	$	3,914,469
Allowance for credit losses	(59,433)		(66,666)
Loans held-for-investment, net	3,799,836		3,847,803


Cash and cash equivalents	255,411		261,419
Restricted cash	3,679		67,774
Accrued interest receivable	12,292		12,388



Other assets	28,439		30,264
Total Assets	$	4,099,657	$	4,219,648
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Repurchase facilities	$	1,238,541	$	1,708,875
Securitized debt obligations	925,384		927,128
Asset-specific financings	123,091		123,091
Term financing facility	346,861		—
Convertible senior notes	271,649		271,250
Senior secured term loan facilities	207,103		206,448
Dividends payable	14,033		25,049
Other liabilities	23,098		22,961
Total Liabilities	3,149,760		3,284,802
Commitments and Contingencies
10% cumulative redeemable preferred stock, par value $0.01 per share; 50,000,000 shares authorized and 1,000 shares issued and outstanding ($1,000,000 liquidation preference)	1,000		1,000
Stockholders’ Equity
Common stock, par value $0.01 per share; 450,000,000 shares authorized and 55,107,657 and 55,205,082 shares issued and outstanding, respectively	551		552
Additional paid-in capital	1,059,267		1,058,298
Cumulative earnings	131,156		103,165
Cumulative distributions to stockholders	(242,202)		(228,169)
Total Granite Point Mortgage Trust, Inc. Stockholders’ Equity	948,772		933,846
Non-controlling interests	125		—
Total Equity	$	948,897	$	933,846
Total Liabilities and Stockholders’ Equity	$	4,099,657	$	4,219,648


	Three Months Ended
	March 31,
	2021		2020
Interest income:	(unaudited)
Loans held-for-investment	$	54,039	$	63,259
Available-for-sale securities	—		280
Held-to-maturity securities	—		310
Cash and cash equivalents	100		326
Total interest income	54,139		64,175
Interest expense:
Repurchase facilities	8,951		19,675
Securitized debt obligations	4,617		9,434
Convertible senior notes	4,518		4,516
Term financing facility	2,122		—
Asset-specific financings	877		1,122
Revolving credit facilities	—		242
Senior secured term loan facilities	5,280		—
Total interest expense	26,365		34,989
Net interest income	27,774		29,186
Other income (loss):
Benefit from (provision for) credit losses	9,119		(53,336)
Realized losses on sales	—		—
Fee income	—		522
Total other income (loss)	9,119		(52,814)
Expenses:
Base management fees	—		3,907
Compensation and benefits	5,460		4,373
Servicing expenses	1,316		1,109
Other operating expenses	2,127		4,180
Total expenses	8,903		13,569
Income (loss) before income taxes	27,990		(37,197)
Benefit from income taxes	(1)		(6)
Net income	27,991		(37,191)
Dividends on preferred stock	25		25
Net income (loss) attributable to common stockholders	$	27,966	$	(37,216)
Basic (loss) earnings per weighted average common share	$	0.51	$	(0.68)
Diluted (loss) earnings per weighted average common share	$	0.45	$	(0.68)
Dividends declared per common share	$	0.25	$	—
Weighted average number of shares of common stock outstanding:
Basic	55,137,608		55,056,411
Diluted	71,834,396		55,056,411
Comprehensive income (loss):
Net income (loss) attributable to common stockholders	$	27,966	$	(37,216)
Other comprehensive loss, net of tax:
Unrealized loss on available-for-sale securities	—		(3,744)
Other comprehensive loss	—		(3,744)
Comprehensive income (loss)	$	27,966	$	(40,960)


	Three Months Ended March 31, 2021
	(unaudited)
Reconciliation of GAAP net income to Distributable Earnings:

GAAP Net Income	$	27,966
Adjustments for non-distributable earnings:
(Benefit from) provision for credit losses	(9,119)
Non-cash equity compensation	1,887
Distributable Earnings(1)	$	20,734

Distributable Earnings per basic common share	$	0.38
Basic weighted average shares outstanding	55,137,608

(1)Beginning with our Annual Report on Form 10-K for the year ended December 31, 2020, and for all subsequent reporting periods ending on or after December 31, 2020, we have elected to present Distributable Earnings, a measure that is not prepared in accordance with GAAP, as a supplemental method of evaluating our operating performance. Distributable Earnings replace our prior presentation of Core Earnings with no changes to the definition. In order to maintain our status as a REIT, we are required to distribute at least 90% of our taxable income as dividends. Distributable Earnings is intended to serve as a general proxy for our taxable income, though it is not a perfect substitute for it, and, as such, is considered a key indicator of our ability to generate sufficient income to pay our common dividends and in determining the amount of such dividends, which is the primary focus of income-oriented investors who comprise a meaningful segment of our stockholder base. We believe providing Distributable Earnings on a supplemental basis to our net income (loss) and cash flow from operating activities, as determined in accordance with GAAP, is helpful to stockholders in assessing the overall performance of our business.

We use Distributable Earnings to evaluate our performance excluding the effects of certain transactions and GAAP adjustments we believe are not necessarily indicative of our current loan portfolio and operations. For reporting purposes, we define Distributable Earnings as net (loss) income attributable to our stockholders, computed in accordance with GAAP, excluding: (i) non-cash equity compensation expense; (ii) depreciation and amortization; (iii) any unrealized gains (losses) or other similar non-cash items that are included in net income for the applicable reporting period (regardless of whether such items are included in other comprehensive income or loss or in net income for such period); and (iv) certain non-cash items and one-time expenses. Distributable Earnings may also be adjusted from time to time for reporting purposes to exclude one-time events pursuant to changes in GAAP and certain other material non-cash income or expense items approved by a majority of our independent directors. The exclusion of depreciation and amortization from the calculation of Distributable Earnings only applies to debt investments related to real estate to the extent we foreclose upon the property or properties underlying such debt investments.

While Distributable Earnings excludes the impact of the unrealized non-cash current provision for credit losses, we expect to only recognize such potential credit losses in Distributable Earnings if and when such amounts are deemed non-recoverable. This is generally at the time a loan is repaid, or in the case of foreclosure, when the underlying asset is sold, but nonrecoverability may also be concluded if, in our determination, it is nearly certain that all amounts due will not be collected. The realized loss amount reflected in Distributable Earnings will equal the difference between the cash received, or expected to be received, and the carrying value of the asset, and is reflective of our economic experience as it relates to the ultimate realization of the loan. During the three months ended March 31, 2021, we recorded a $9.1 million of provision for credit losses, which has been excluded from Distributable Earnings consistent with other unrealized gains (losses) and other non-cash items pursuant to our existing policy for reporting Distributable Earnings as referenced above.

Distributable Earnings does not represent net (loss) income or cash flow from operating activities and should not be considered as an alternative to GAAP net (loss) income, or an indication of our GAAP cash flows from operations, a measure of our liquidity, or an indication of funds available for our cash needs. In addition, our methodology for calculating Distributable Earnings may differ from the methodologies employed by other companies to calculate the same or similar supplemental performance measures, and, accordingly, our reported Distributable Earnings may not be comparable to the Distributable Earnings reported by other companies.