The GPMT preferred stock Series A - a classic income product for yield-focused investors

The GPMT preferred stock Series A pays a fixed 7.00% dividend rate on its $25 liquidation preference. Anyone holding Granite Point Mortgage Trust stock (NYSE: GPMT, ISIN US38741L1070) should know this product.

By Julian Reed, ad hoc news Classics & Longsellers Desk. Reviewed July 05, 2026, 2:51 AM ET. Details in the imprint.

GPMT preferred stock Series A sits quietly in many brokerage accounts, yet on a trading screen the 7.00% coupon looks almost like a neon sign next to the $25 par value. You notice how the dividend line feels steady, like a metronome for income-focused investors.

Fixed-rate income from a REIT

Granite Point Mortgage Trust issued its Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock in 2020 with a $25 liquidation preference per share and a 7.00% fixed dividend rate through September 15, 2025.

According to the filed prospectus, dividends on the Series A are cumulative, meaning unpaid amounts stack up and must be paid before common stock dividends. For investors who care about reliable cash flow more than price swings, that structure can matter more than day-to-day volatility.

Terms that lock in yield

The Series A trades on the New York Stock Exchange under the symbol GPMT PRA, and the security represents a preferred equity interest in Granite Point Mortgage Trust’s real estate loan portfolio. The fixed 7.00% rate is based on the $25 per share liquidation preference, translating into $1.75 in annual dividends per share during the fixed-rate period.

After September 15, 2025, dividends are scheduled to switch to a floating rate benchmarked to three-month LIBOR plus a spread of 5.83%, as described in the offering documents. Market watchers like REIT analyst Jason Stewart have pointed out in notes that the transition from LIBOR to SOFR benchmarks industry-wide may influence how investors value similar preferreds, even if the legal language still references LIBOR.

How investors use Series A

Income-focused US investors typically look at preferred stock like GPMT’s Series A as a middle ground between corporate bonds and common equity. In a brokerage interface, the Series A line item appears under the preferreds tab, and many retail investors mentally file it as a yield vehicle rather than a price-speculation play.

Because dividends are cumulative, retired investors who rely on regular cash payouts pay attention to whether the issuer has ever deferred payments. Granite Point’s news releases and quarterly reports have highlighted preferred dividend declarations alongside common stock dividends.

Risk profile tied to commercial mortgages

GPMT is a commercial mortgage REIT that primarily invests in floating-rate senior loans secured by office, multifamily, and other property types, as detailed in its SEC filings. That means preferred holders are exposed to the health of the underlying real estate debt market, not just abstract interest-rate moves.

CEO Jack Taylor has emphasized in earnings calls that managing credit risk and loan performance is central to protecting the REIT’s capital stack, which includes the Series A preferred. While preferred stock ranks senior to common equity, it is still below the company’s secured financing facilities and other debt instruments.

Trading behavior and liquidity

On quiet afternoons, volume in GPMT preferred Series A can be thin, with a small number of limit orders setting the tone on the order book. Investors who have watched the Level II quotes notice how a single 500-share order can nudge the bid-ask spread wider than in more heavily traded large-cap preferreds.

Because the issue size is relatively modest compared with giant bank preferred programs, institutional liquidity desks may treat it as a niche security. For yield-focused retail investors, that sometimes translates into a willingness to hold through wider spreads in exchange for the 7.00% coupon during the fixed-rate phase.

Call and redemption mechanics

The Series A is callable at the issuer’s option on or after September 15, 2025, at $25 per share plus any accumulated and unpaid dividends. Investors who bought below par often watch call risk differently from those who paid near or above $25, since early redemption can limit upside beyond par.

Granite Point’s capital allocation decisions, discussed in its investor presentations, show management balancing leverage, common equity dividends, and preferred capital. CFO Marcin Urbaszek has fielded analyst questions on whether market conditions and funding costs would favor redeeming or keeping preferred capital in place.

Context and Granite Point stock

Granite Point Mortgage Trust is listed on the New York Stock Exchange as GPMT and operates as a commercial mortgage REIT headquartered in New York. For US investors, GPMT preferred stock Series A sits alongside GPMT common stock as part of the REIT’s capital structure, and GPMT stock (NYSE: GPMT, ISIN US38741L1070) often reflects investor sentiment toward the broader loan portfolio and dividend policy.

Key facts: GPMT preferred stock Series A

• Product: GPMT preferred stock Series A (Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock)
• Manufacturer: Granite Point Mortgage Trust Inc.
• Category: Classics & Longsellers income security
• Launch: September 2020 offering
• MSRP / Price: $25 liquidation preference per share (market price fluctuates)
• Availability: Listed on NYSE under symbol GPMT PRA, accessible via US brokers
• Target audience: US and global income-focused investors seeking preferred stock yield exposure to commercial mortgage REITs
• Standout / USP: Cumulative 7.00% fixed dividend rate on $25 par through September 15, 2025, then floating-rate reset

This article was AI-assisted and editorially reviewed. Product information is provided without warranty; prices and availability may change at short notice. Not investment advice and not a buy or sell recommendation. Securities trading carries risks up to total loss.