JMP downgrades Granite Point stock due to Q4 losses By Investing.com

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On Tuesday, JMP Securities adjusted its ranking for Granite Level Mortgage Belief (NYSE:), downgrading the inventory from Market Outperform to Market Carry out following the corporate’s fourth-quarter monetary outcomes. Granite Level reported a larger-than-expected loss for the quarter, prompting the agency to revise its stance on the inventory.

Granite Level Mortgage Belief disclosed important losses in its fourth-quarter earnings report, with a GAAP lack of $0.33 per share and a distributable lack of $0.52 per share. These figures fell in need of the consensus loss estimate of $0.29 per share and have been beneath the analyst’s personal projection of $0.42 per share. The corporate’s GAAP earnings have been impacted by a further credit score loss provision of $21.6M, or $0.42 per share. In the meantime, distributable earnings have been affected by a $33.3M write-off associated to a San Diego workplace mortgage decision.

The reported losses meant that Granite Level’s distributable earnings didn’t cowl its quarterly dividend of $0.20. Excluding the mortgage write-off, the distributable earnings per share (EPS) would have been $0.14, indicating a dividend protection ratio of 70%. The corporate’s GAAP e-book worth per share additionally declined to $12.91 from $13.28 as of September 30, primarily as a result of extra provision for mortgage losses.

As of the market shut on February 16, Granite Level’s shares have been buying and selling at $4.71. This worth represents a major low cost at simply 0.36 occasions the reported fourth-quarter e-book worth of $12.91, significantly beneath the 0.76 occasions median price-to-book worth (P/BV) a number of of its business mortgage REIT friends. The agency famous that whereas this low cost was a key cause for the beforehand increased ranking, the present valuation displays a good market worth, given the uncertainties surrounding the corporate’s mortgage loss exposures.

Granite Level held its earnings convention name on February 15, the place administration mentioned the quarterly outcomes. For these taken with revisiting the dialogue, a replay is obtainable with the dial-in quantity (877) 660-6853 and the passcode: 13743745.

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