Good morning. My name is Paul, and I will be your conference facilitator. At this time, I would like to welcome everyone to Granite Point Mortgage Trust's Fourth Quarter and Full Year 2025 Financial Results Conference Call. [Operator Instructions] Please note, today's call is being recorded. I would now like to turn the call over to Chris Petta with Investor Relations for Granite Point. Please go ahead.

Thank you, and good morning, everyone. Thank you for joining our call to discuss Granite Point's Fourth Quarter and Full Year 2025 financial results. With me on the call this morning are Jack Taylor, our President and Chief Executive Officer; Steve Alpart, our Chief Investment Officer and Co-Head of Originations; Blake Johnson, our Chief Financial Officer; Peter Morral, our Chief Development Officer and Co-Head of Originations; and Ethan Lebowitz, our Chief Operating Officer. After my introductory comments, Jack will provide a brief recap of market conditions and review our current business activities. Steve will discuss our portfolio, and Blake will highlight key items from our financial results. Press release, financial tables and earnings supplemental associated with today's call were filed yesterday with the SEC and are available in the Investor Relations section of our website. We expect to file our Form 10-K in the coming weeks. I would like to remind you that remarks made by management during this call and the supporting slides may include forward-looking statements, which are uncertain and outside of the company's control. Forward-looking statements reflect our views regarding future events and are subject to uncertainties that could cause actual results to differ materially from expectations. Please see our filings with the SEC for a discussion of some of the risks that could affect results. We do not undertake any obligation to update any forward-looking statements. We also refer to certain non-GAAP measures on this call. This information is not intended to be considered in isolation or a substitute for the financial information presented in accordance with GAAP. A reconciliation of these non-GAAP financial measures to the most comparable GAAP measures can be found in our earnings release and slides, which are available on our website. I will now turn the call over to Jack.

Thank you, Chris, and good morning, everyone. We would like to welcome you, and thank you for joining us for Granite Point's Fourth Quarter and Full Year 2025 Earnings Call. 2025 was a constructive year for the commercial real estate industry. The year began with strong momentum, which after pausing briefly in the spring due to macro uncertainty, quickly resumed with heightened deal activity and spread compression throughout the balance of the year. During the fourth quarter, we saw greater capital availability for a broader array of properties, including certain office properties as well as improving fundamentals across many markets and most property types. Lending volume has expanded and also extended to a wider range of property types and markets. This greater liquidity in the market has benefited the CMBS market and strengthened CLO issuance. Larger commercial banks have become more active, notably for warehouse financing, and regional banks are beginning to return to the market as well. Against this backdrop of available capital in the market, there continues to be a shortfall of actionable deals, which is one of the key factors contributing to the spread tightening we have been seeing over the last several quarters. At Granite Point with the long-awaited market improvement, 2025 was an impactful year as we achieved some of our key objectives. These included 5 loan resolutions, 7 full loan repayments and 1 REO property sale as well as a reduction in our cost of debt. The market momentum experienced in 2025 has continued into early 2026 and sets the stage for this year to be potentially a stronger year for the industry with forecasted growth in transaction activity across property types, increased liquidity from traditional lenders, a robust securitization market and an increasingly constructive backdrop for asset resolution activity. In 2026, we continue…

Thank you, Jack, and thank you all for joining our fourth quarter and full year earnings call. We ended the year with $1.8 billion in total loan portfolio commitments, inclusive of $1.7 billion in outstanding principal balance and about $77 million of future fundings, which accounts for only about 4% of total commitments. Our loan portfolio remains diversified across regions and property types and includes 43 investments with an average UPB of about $39 million and a weighted average stabilized LTV of 65% at origination. As of December 31, our portfolio weighted average risk rating increased slightly to 2.9% from 2.8% at September 30. The realized loan portfolio yield for the fourth quarter was 6.7%, which excluding nonaccrual loans would have been 8% or 1.3% higher. We had an active year of loan repayments and resolutions totaling about $469 million during 2025. During the year, we funded about $51 million on existing loan commitments and other investments. During the fourth quarter, we had $45 million of loan repayments and partial paydowns, including a full repayment of a $33 million loan secured by a multifamily asset located in North Carolina. We had about $15 million of future fundings and other investments, resulting in a net loan portfolio reduction of about $30 million for the fourth quarter. Post quarter end, we have received 2 full loan repayments of $174 million. We'll now provide some color on the risk rated 5 loans. At December 31, we had 4 such loans with a total UPB of about $249 million. At quarter end, we downgraded a $53 million loan collateralized by a 284-unit multifamily property in the Atlanta MSA from a risk rating of 4 to a rating of 5. While we've seen a pickup in occupancy at the property, the local market remains soft,…

Thank you, Steve. Good morning, everyone, and thank you for joining us today. Turning to our financial results. For the fourth quarter, we reported a GAAP net loss attributable to common stockholders of $27.4 million or negative $0.58 per basic common share, which includes a provision for credit losses of $14.4 million or negative $0.30 per basic common share and an impairment loss in the Miami Beach REO asset of $6.8 million or negative $0.14 per basic common share. Distributable loss for the quarter was $2.7 million or negative $0.06 per basic common share. Our book value at December 31 was $7.29 per common share, a decline of $0.65 per share from Q3, largely from the provision for credit losses and impairment loss on REO. Our aggregate CECL reserve at December 31 was about $148 million as compared to $134 million last quarter. The roughly $15 million increase in our CECL reserve was mainly due to an increase in our specific reserve on our collateral-dependent loans and worsening macroeconomic forecast in our CECL model relative to the prior quarter. Approximately 70% of our total allowance was allocated to individually assessed loans. As of quarter end, we had about $249 million of principal balance on 4 loans with specific CECL reserves of around $105 million, representing 42% of the unpaid principal balance. We believe we are appropriately reserved and further resolutions should meaningfully reduce our total CECL reserve balance. Turning to liquidity and capitalization. We ended the quarter with about $66 million of unrestricted cash, and our total leverage increased slightly relative to the prior quarter from 1.9x to 2.0x. As of a few days ago, we carried about $55 million in cash. Our funding mix remains well diversified and stable, and we continue to have very constructive relationships with our financing counterparties. We expect to expand our financing capacity once we return to originating new loans. I will now ask the operator to open the line for questions.

[Operator Instructions] Our first question is from Doug Harter with UBS.

It's actually Marissa Lobo on for Doug today. On origination, how are you thinking about the economics of new origination versus returning capital to shareholders given the large discount to book value that you trade at?

This is Blake. Thank you for the question today. Yes, when we look at our portfolio and the discount to book, one of our main objectives over the years to continue resolving our loans and actually working on decreasing our leverage until we start originating again, we do plan on returning to originations later in the year, and that is our focus for 2026.

Okay. And on the CECL reserve build, how are you viewing the current reserve position and the likelihood for further reserve build? How are current macroeconomic assumptions factoring into that?

That's a very good question. Thank you. Yes. So as of year-end, we go through our CECL process as in every quarter end. And when we went through the process, we update the general reserve for the latest and greatest economic forecast in our Trepp model. So that includes a change in assumptions and the biggest driver for this quarter was a decrease in the CRE price index. These forecasts can change going forward, so the general reserve could change. But as of right now, that is the most recent assumption as far as what our general reserve should be. Moving to the actual specific reserve, that is based on our collateral-dependent loans. So as of quarter end, we had 4 collateral-dependent loans. In each quarter end, we assess the fair value of the underlying collateral is. So absent any changes in the collateral itself, we do believe we are appropriately reserved for on those loans.

Our next question is from Jade Rahmani with KBW.

Do you have any views as to where book value per share may trough in this cycle? It's down quite sharply year-over-year and quarter-over-quarter, which clearly, based on today's stock performance is a surprise. So can you just comment as to what your expectations are for the risk of future losses going forward?

Well, I'll address that first and then turn it over to Steve to talk about credit migration. We believe that there's a risk that there will be upgrades and downgrades and future losses may be part of that, right? We don't -- we've assessed that risk in our book today, and that's embedded in the reserves that -- we have specific reserves. With respect to credit migration, maybe, Steve, you would speak to that. But I've been very clear over the quarters. I don't believe it's over in terms of workouts and delinquencies for the whole industry and not for us. And there have been surprises to us, and we expect to have some upgrades and some downgrades. Steve?

It's Steve. I think Jack and Blake covered it pretty well. I mean I would just say that we feel that the majority of the portfolio is performing well. We are working through these remaining loan resolutions, which are not entirely but heavily in the office sector and the impact of the rate hike that we went through. We're pleased with the progress we've had to date. We had a lot of resolutions in '24. We have 5 more in 2025. We're in process on a couple more right now. We just talked about the Chicago deal where we had the partial resolution of the office, and we're working on a full resolution, which involves the retail, which we think can get done in the near term. We did have 2 new 5s during the quarter. So there's always a possibility that there could be more of that. but we also hope to have more resolutions, some upgrades, and we are happy to see that we are in a constructive environment as far as capital, certainly debt, also increasingly equity. And we think that will be helpful on further repayments and resolutions.

And just overall, when you look at the portfolio, clearly, the portfolio has a legacy vintage prior to the Fed rate hikes. So nearly every single loan in the portfolio is going to have probably some cost of capital issue when it's up for maturity. But then looking beyond that, multifamily was an area of downgrade this quarter, which was somewhat surprising. So can you comment on the vintage and the multifamily property type and what your expectations are there?

Sure. I think there's 2 related questions in there. So we are working through these loans, including these kind of older vintage loans. We have pretty good visibility, I would say, on about 1/4 of these loans in terms of a near-term payoff where there's a process underway, and we're expecting a loan repayment. I would say there's another, I don't know, call it, 40% or so, if I had to kind of take an estimate where there's an upcoming maturity. We have communicated to the borrower that we expect an exit this year by the maturity date. And there may be a refi or a recap or a sale process that's underway or expected. We certainly can't say that all those will get done, but we have some visibility on those that we think that there's a process that there's an exit out of. And then there's another, call it, about 1/3 or so where there are a couple of 2027 and 2028 maturities. And then I would throw in the Minneapolis office deal that are a little bit further out. So I would say we're kind of chipping away at it and some have near-term visibility, some we're expecting and pushing on and then a few will be kind of '27 and '28. Then as far as your question on multifamily, the multifamily in our portfolio, we feel pretty good about. We did have the credit migration on the Atlanta deal, and we have talked about certain markets that we're looking at, and we have kind of flagged in the past Atlanta. So I would say that one for us has been a bit of an exception. And that one has some unique factors that we can talk about. But I think the overall trend line that we're seeing, including in the Sunbelt is that I think the recovery that we were all expecting has been a little bit more sluggish, and you see that in the read-through on some of the public multifamily REITs. The spring leasing season last year was a little slower than expected. But the supply picture overall is improving. There hasn't been a lot of pricing power for landlords. But when we sit back and look at macro supply and demand, it feels like over the second half of this year and kind of going forward, we feel like the trend line in multifamily is fairly positive. And there's obviously a lot of liquidity in the asset class and the sentiment coming out of the NMHC this year was very positive. So overall, on multifamily, overall and in our book, we feel pretty good about it medium to longer term.

Our next question is from Chris Muller with Citizens Capital.

So I guess starting on the portfolio, it's been shrinking as you guys have been focused on asset management, but it sounds like new originations starting up is still the expectation for later this year. So I guess the question is, do you guys have a ballpark of where the portfolio size could trough? And maybe kind of playing into that a little bit is what do scheduled maturities look like in the first half of this year in addition to what you guys already disclosed?

Chris, it's Steve. So just high level on the first part of your question, look, just given the near-term focus on repayments and resolutions, we do expect the portfolio to tick down through mid-2026, and then begin to restabilize and regrow in the latter part of the year. Ultimately, that will depend on the timing of repayments and resolutions relative to new originations, but it will get a little lower over the next few quarters and then begin to regrow.

Got it. And any visibility you guys have on scheduled maturities that may play into that?

Yes. I mean part of that is what I just mentioned to Jay, that we have -- we do have visibility on certain loans that are coming up on maturity. As we kind of look out -- I'm kind of looking out into 2026 overall. Some of these will just pay off in the normal course. A couple will extend as of right, which has happened on some loans recently. Then to the extent -- and then we have other loans that I mentioned are not up for maturity yet, but they're up kind of, call it, third, fourth quarter. And we're -- in anticipation of that, we are having conversations with a number of borrowers that we've done previous extensions on, where they've done everything right, where they put new money in. And we are looking to get the portfolio turned. So we're having clear communications with borrowers about our expectations. And if they can't do it by a refi, do it by an equity recap, do it by a sale. So that's been kind of the playbook. And look, case by case, we have extended out loans in win-win situations, but we feel like that was the playbook the last couple of years, and we're trying to move past that and get to just turning the portfolio.

Got it. And then just a quick clarifying one. Did I hear you guys correctly that there were 2 new 5-rated loans in the quarter? I see the Georgia multifamily in the deck, but what was the other one, if I heard that right?

There is one new 5-rated loan.

Got it. I just misunderstood.

Yes. It is the Georgia multifamily, correct.

Our next question is from Gabe Poggi with Raymond James.

I may have missed this before, but can you tell us what the 2 sectors were, and any details around the repayments you received year-to-date in thus far this year in '26?

Well, Steve, maybe I can just lead in on that for a moment. And I would say that it's a retail, multifamily. And importantly, I want [indiscernible] relating to an earlier question, these were vintage loans, COVID period and the higher interest rate period and paid off at par.

There are no further questions at this time. I would like to hand the call back over to Jack Taylor for any closing comments.

Yes. I just wanted to elaborate on something that was said earlier, which is the portfolio will shrink as we said, but we have many tools to regrow the portfolio through our loan repayments and resolutions, releasing capital, our REO, which will extract capital. We'll be repaying our higher cost debt and then rebuilding with an originations team that has been intact from when we were originating at $1.5 billion to $2. We have a lot of tools to releverage our balance sheet internally through the assets as they move from lower level of assets, the vintage loans that are being carried at lower leverage to the new loans that we add and that we also can move into CLOs and the like and source capital as we've done in the past successfully to bring our lower leverage of 1.7 closer back to our target leverage and to start repairing our earnings. Thank you for your time. And I just want to welcome -- I say thank you, everybody, for joining us for the call and look forward to speaking to you -- further positive resolution.

This concludes today's conference call. We thank you again for your participation. You may now disconnect.