The revised payout, totaling 4 cents annually, translates to a yield of 4.4% based on the stock's Tuesday closing price of 90 cents. Alongside the common stock adjustment, the company declared a quarterly dividend of approximately 44 cents per share on its 7% Series A fixed-to-floating rate cumulative redeemable preferred stock.
In section Market Quotes
Granite Point Mortgage Slashes Dividend Amid Loan Write-Offs
Granite Point Mortgage Trust has slashed its quarterly cash dividend from 5 cents to a single penny, a sharp reduction aimed at preserving capital. Chief Executive Jack Taylor framed the move as a necessary step to bolster financial flexibility for future capital allocation decisions as the firm navigates a difficult portfolio landscape.
Financial stress within the firm’s holdings remains evident. Granite Point recently resolved a $52.4 million loan tied to a multifamily property that had fallen into nonaccrual status. This resolution forces a $19.9 million write-off loss. Conversely, the company saw two full loan repayments totaling $19.5 million from office properties located in Ohio and California, while funding $7.1 million in unpaid principal balances on its existing loan book.
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