Business Wire·Aug 18, 2026, 9:00 AM ET

Palogic Value Fund Sends Letter to the Board of Granite Point Mortgage Trust

GPMT

Palogic Value Fund & Palogic Value Management sent a letter to the Board of Trustees of Granite Point Mortgage Trust on August 18, 2026, citing concerns over a diminished franchise, credit deterioration, declining margins, & an excessive corporate cost structure.
The letter highlights that Granite Point's GAAP book value fell from $17.27 per share in June 2021 to $5.70 in June 2026, while the stock price dropped approximately 89.8% over the same period.
Palogic argues the company lacks a differentiated franchise because it does not possess a specialized underwriting niche, proven agility to navigate capital structure changes, or institutional scale for low-cost sponsor sourcing.
Credit migration has expanded beyond office properties to include Hotel, Mixed-Use, & Multifamily CRE, with Q2 2026 CECL reserves reaching 47.4% for loans rated as the highest risk.
Total assets contracted from roughly $3.9 billion in 2021 to $1.4 billion in Q2 2026, causing net interest income to fall from $22.7 million to $4.7 million, which Palogic believes cannot support the current overhead.
Corporate compensation costs rose to $4.3 million against a $1.4 billion asset base in Q2 2026, representing 1.3% of assets compared to 0.51% in 2021, which Palogic deems excessive relative to the subscale loan book.
Palogic urges the Board to expedite legacy asset resolution by accelerating loan payoffs, pursuing loan participation sales, & seeking whole loan sales.
The fund calls for aggressive reductions in servicing & corporate costs, suggesting the use of outside parties for sub-servicing & aligning the executive structure with the smaller asset base.
Palogic recommends halting all new loan origination efforts to avoid dilutive equity raises or elevated leverage, instead directing proceeds from portfolio run-offs toward debt retirement.