Granite Point puts itself up for review and sets a 1-for-10 reverse split, with its stock at 15% of book value

Granite Point Mortgage Trust, a New York real estate investment trust that makes senior floating-rate loans on commercial property, said late on Wednesday that its board is reviewing "alternatives to enhance stockholder value." The company's release lists the options as a business combination, a sale of all or part of its assets, or a capital raise. It says there is no timetable and no assurance any deal will happen.

The board also approved a one-for-ten reverse stock split. It takes effect at 5 p.m. Eastern on October 5, and the shares begin trading on a split-adjusted basis on the NYSE at the open on October 6. The number of shares outstanding will fall from about 48.2 million to about 4.8 million. Shareholders do not vote on it, because Maryland law lets the board approve the split on its own.

Nasdaq data showed GPMT closed the regular session at $0.828, down 2.3%. The last after-hours trade we saw, at 4:55 p.m., was $0.832. The stock's 52-week range runs from $0.8145 to $3.055.

The number behind the number: 15 cents on the dollar

At Wednesday's close, the whole company's common stock was worth about $40 million, according to Nasdaq. In its second-quarter results, Granite Point reported book value of $5.70 per common share as of June 30. Across 48.2 million shares, that is roughly $275 million. The market price is about 15% of that book value.

A discount that deep means investors doubt the loans are worth what the balance sheet says, even though the book value already reflects large reserves. Granite Point's June 30 book value was net of a $3.44-per-share credit loss reserve, or $165.8 million in total, equal to 11.4% of its $1.5 billion of loan commitments. The portfolio was 97% floating-rate, fully senior loans, with a weighted average risk rating of 3.2. The company also owned two foreclosed properties carried at $90.7 million.

The split changes none of that. At Wednesday's close, the post-split price would be about $8.28, ten times higher on a tenth as many shares, and the company's market value would stay the same.

Why the review is happening now: cash

The company's own updates show how quickly its cash has fallen. Unrestricted cash was $58.5 million on June 30, about $35.7 million on August 3, and about $32.4 million on September 14, according to its third-quarter update. In that update the board cut the common dividend to $0.01 a share from $0.05, to "preserve capital." The 7% Series A preferred still receives its full $0.4375 quarterly dividend, and Wednesday's release says the reverse split does not affect the preferred.

The problem loans are being resolved one at a time, some at a loss. In September the company settled a $52.4 million nonaccrual loan on a multifamily property in Stockbridge, Georgia, and expects a write-off of about $19.9 million. It had already reserved for that loss. It also received full repayment on two office loans totaling about $19.5 million. Second-quarter distributable earnings were a loss of $37.7 million, and the GAAP net loss to common shareholders was $62.0 million.

Who it actually hits

Borrowers. Transitional-property lenders like Granite Point often fund loans in stages as a renovation or lease-up goes on; the company funded about $7.1 million on existing loans during the third quarter. A property owner who is waiting on the next draw from a lender that is weighing a sale of its assets has good reason to ask now who will hold the loan next year, and on what terms.

Preferred holders. Their dividend is still being paid in full while the common dividend has almost disappeared. A merger or asset sale would test whether the preferred is covered.

Common shareholders. After the split, holders with fewer than ten shares, or any number not divisible by ten, will get cash for the fractional share based on the October 5 closing price. Any payment may be taxable.

Rising rates matter here too. Because nearly all the loans float, higher short-term rates increase what borrowers owe each month. That raises interest income on paper but makes it harder for weaker properties to keep up with payments. We covered Wednesday's jump in Treasury yields here.

Sources: Granite Point Mortgage Trust press releases (Sept 23, 2026; Q3 2026 dividend and business update; Q2 2026 results); Nasdaq. Book value total, price-to-book ratio and post-split price calculated by The Company Chronicle. This is market information, not investment advice.