GPMTMEDIUM SIGNALFINANCIAL10-K

GPMT significantly reduced its loan portfolio size while dramatically improving net losses from $207M to $41M, though this came with substantially lower operating cash flow generation.

The company appears to be in a portfolio contraction phase, reducing total assets by 17% and loan commitments by nearly $430M, which helped cut interest expenses but also reduced income generation capacity. The 80% improvement in net losses suggests better asset quality or resolved problem loans, but the 70% drop in operating cash flow raises questions about the sustainability of current operations and dividend coverage.

Comparing 2026-03-02 vs 2025-02-27View on EDGAR →
FINANCIAL ANALYSIS

GPMT experienced a significant portfolio contraction with total assets declining 17% to $1.8B and liabilities falling 19.6% to $1.2B, while stockholders' equity decreased more modestly by 10.7%. The company's net losses improved dramatically from $207M to $41M due to lower interest expenses (-34.6%) despite reduced net interest income (-29%), but operating cash flow plummeted 69.5% to just $2.7M. This financial profile suggests a company managing through a difficult period by shrinking its balance sheet and resolving problem assets, but with significantly weakened cash generation capability that may pressure future dividend sustainability.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
+80.1%
-$207.1M→-$41.2M

Net income grew 80.1% — bottom-line growth signals improving overall business health.

Operating Cash Flow
Cash Flow
-69.5%
$8.8M→$2.7M

Operating cash flow fell 69.5% — earnings quality concerns; investigate working capital changes and non-cash items.

Interest Expense
P&L
-34.6%
$149.7M→$97.9M

Interest expense declined — debt repayment or refinancing at lower rates improving earnings quality.

Net Interest Income
P&L
-29%
$185.6M→$131.7M

Net interest income declined 29% — margin compression from rate changes or funding cost increases.

Share Buybacks
Cash Flow
-25.7%
$7.6M→$5.7M

Buyback activity reduced 25.7% — capital being redeployed elsewhere or cash conservation underway.

Cash & Equivalents
Balance Sheet
-24.9%
$87.8M→$66.0M

Cash decreased 24.9% — monitor burn rate and upcoming capital needs.

Total Liabilities
Balance Sheet
-19.6%
$1.5B→$1.2B

Liabilities reduced 19.6% — deleveraging improves balance sheet strength and financial flexibility.

Total Assets
Balance Sheet
-17%
$2.1B→$1.8B

Total assets contracted 17% — asset sales, write-downs, or balance sheet optimization underway.

Stockholders Equity
Balance Sheet
-10.7%
$619.1M→$552.7M

Equity decreased 10.7% — buybacks or losses reducing book value, monitor solvency ratios.

LANGUAGE CHANGES
NEW — 2026-03-02
PRIOR — 2025-02-27
ADDED
As of February 20, 2026, there were 47,563,643 shares of common stock, par value $0.01 per share, issued and outstanding.
From time to time, we may also directly originate and invest in mezzanine loans, subordinated mortgage interests (sometimes referred to as a B-note) and other real estate securities.
We may also invest in preferred equity investments, unsecured notes and other investments that are subordinated or otherwise junior in an issuer s capital structure, that involve privately negotiated structures.
As of December 31, 2025, 97.2% of our loan portfolio by principal balance earned a floating rate of interest.
The table below details overall statistics of our portfolio as of December 31, 2025: (dollars in thousands) Type Maximum Loan Commitment Principal Balance Carrying Value Cash Coupon (2) Yield (3) Original Term (Years) Initial LTV (4) Stabilized LTV (5) Senior loans (1) $ 1,754,416 $ 1,677,017 $ 1,524,803 S+3.62% S+3.93% 3.0 69.0 % 65.2 % Subordinated loans 12,950 12,950 12,929 8.00 % 8.11 % 10.0 41.4 % 36.2 % Total/Wtd.
$ 1,767,366 $ 1,689,967 $ 1,537,732 S+3.62% S+3.93% 3.0 68.8 % 65.0 % ____________________ (1) Senior means a loan primarily secured by a first priority lien on commercial real property and related personal property and also includes, when applicable, any companion subordinate loans or other investments.
As of December 31, 2025, we had repurchase and secured credit financing facilities in place to finance loans held-for-investment asset with an aggregate maximum borrowing capacity of $1.1 billion.
As of December 31, 2025, the outstanding amount due on securitized debt obligations was $0.6 billion.
Human Capital Our team of talented employees is fundamental to our success.
As of December 31, 2025, we employed 28 full-time employees, all of whom are and based out of one of our two primary office locations in New York, New York, and Saint Louis Park, Minnesota.
REMOVED
As of February 20, 2025, there were 48,850,685 shares of common stock, par value $0.01 per share, issued and outstanding.
From time to time, we may also directly originate and invest in mezzanine loans, subordinated mortgage interests (sometimes referred to as a B-note) and other real estate securities, and may also invest in preferred equity investments and other investments that are subordinated or otherwise junior in an issuer s capital structure and that involve privately negotiated structures.
As of December 31, 2024, 97.9% of our loan portfolio by principal balance earned a floating rate of interest.
The table below details overall statistics of our portfolio as of December 31, 2024: (dollars in thousands) Type Maximum Loan Commitment Principal Balance Carrying Value Cash Coupon (2) Yield (3) Original Term (Years) Initial LTV (4) Stabilized LTV (5) Senior loans (1) $ 2,183,737 $ 2,093,096 $ 1,884,581 S+3.77% S+4.01% 3.0 69.8 % 64.6 % Subordinated loans 13,238 13,238 13,067 8.00 % 8.11 % 10.0 41.4 % 36.2 % Total/Wtd.
$ 2,196,975 $ 2,106,334 $ 1,897,648 S+3.77% S+4.01% 3.1 69.6 % 64.4 % ____________________ (1) Senior means a loan primarily secured by a first priority lien on commercial real property and related personal property and also includes, when applicable, any companion subordinate loans.
As of December 31, 2024, we had repurchase and secured credit financing facilities in place to finance loans held for investment asset with an aggregate maximum borrowing capacity of $1.3 billion.
As of December 31, 2024, the outstanding amount due on securitized debt obligations was $0.8 billion.
For additional information concerning these competitive risks, see Risk Factors Risks Related to our Lending and Investment Activities We operate in a competitive market for investment opportunities and competition may limit our ability to originate or acquire our target investments and could also affect the pricing of these investments in Item 1A of this Annual Report on Form 10-K.
As of December 31, 2024, we employed 33 individuals, all of whom are full time and based out of our two primary office locations in New York, New York, and Saint Louis Park, Minnesota.
We are committed to creating and supporting a positive work environment and culture where our employees can grow professionally and contribute to the success of the Company.
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