New York Mortgage Trust Provides Business Update as of March 27, 2020
March 30 2020 - 6:45AM
New York Mortgage Trust, Inc. (Nasdaq: NYMT) (the “Company”)
previously announced on March 23, 2020 that, in response to the
turmoil in the financial markets resulting from the global pandemic
of the COVID-19 virus, the Company is engaging in discussions with
its repurchase agreement financing counterparties with regard to
entering into forbearance agreements pursuant to which each
counterparty would agree to forbear from exercising its rights and
remedies with respect to an event of default under the applicable
financing arrangement for an agreed-upon period. As of March 27,
2020, each of the Company’s repurchase agreement counterparties is
continuing to engage in these discussions with the Company. The
Company is also exploring additional financing options. The Company
cannot predict whether its financing counterparties will enter into
forbearance agreements, the timing of any such agreements, or the
terms thereof, nor can the Company predict whether it will receive
additional notices of events or alleged events of default under its
repurchase agreement financing arrangements or other financing
arrangements or the availability of other financing options.
The Company also announced that in an effort to
manage the Company’s portfolio through this unprecedented turmoil
in the financial markets and improve its liquidity, since March 16,
2020, the Company has sold mortgage-backed securities receiving
proceeds of approximately $1.7 billion and has reduced its
outstanding repurchase agreement financing by $1.6 billion since
December 31, 2019. In addition, based on information available to
the Company as of March 27, 2020, the Company estimates that its
book value per common share as of the quarter ending March 31, 2020
will decline by approximately 33% from book value per common share
as of December 31, 2019.
The Company cautions that persons should not
place undue reliance on the Company’s preliminary estimate of book
value per common share as of the quarter ending March 31, 2020
because it may prove to be materially inaccurate. The preliminary
estimate has not been compiled or examined by the Company’s
independent auditors, and is subject to revision upon completion of
the Company’s internal closing process and normal review and the
preparation of its unaudited consolidated financial statements as
of and for the quarter ending March 31, 2020, including all
disclosures required by U.S. generally accepted accounting
principles, and as the Company’s independent auditors conduct their
review of the Company’s financial statements. Additionally, the
Company's preliminary estimate is based solely on information
available to it as of March 27, 2020. There can be no
assurance that the Company's estimated book value per common share
as of the quarter ending March 31, 2020 is indicative of
what the Company's results are likely to be for the quarter
ending March 31, 2020 or in future periods, and the
Company undertakes no obligation to update or revise its estimated
book value per common share prior to issuance of financial
statements for such periods. While the Company believes that such
preliminary estimate is based on reasonable assumptions and
information available to it as of March 27, 2020, actual results
may vary, and such variations may be material. Furthermore,
the extreme volatility and turmoil that currently riles the
financial markets makes estimates of asset values even less
reliable than usual.
About New York Mortgage
Trust
New York Mortgage Trust, Inc. is a Maryland
corporation that has elected to be taxed as a real estate
investment trust for federal income tax purposes (“REIT”). NYMT is
an internally managed REIT in the business of acquiring, investing
in, financing and managing mortgage-related and residential
housing-related assets and targets structured multi-family property
investments such as multi-family CMBS and preferred equity in, and
mezzanine loans to, owners of multi-family properties, residential
mortgage loans (including distressed residential mortgage loans,
non-QM loans, second mortgage loans and other residential mortgage
loans), non-Agency RMBS, Agency RMBS, Agency CMBS and other
mortgage-related, residential housing-related and credit-related
assets.
Cautionary Note Regarding
Forward-Looking Statements
When used in this press release or other written
or oral communications, statements which are not historical in
nature, including those containing words such as “will,” “believe,”
“expect,” “anticipate,” “estimate,” “plan,” “continue,” “intend,”
“could,” “would,” “should,” “may”, “expect” or similar expressions,
are intended to identify “forward-looking statements” within the
meaning of Section 27A of the Securities Act and Section 21E of the
Exchange Act, and, as such, may involve known and unknown risks,
uncertainties and assumptions. Statements regarding the following
subjects, among others, may be forward-looking: the Company’s
ability to meet its obligations under the Company’s financing
arrangements, the status of the Company’s ongoing discussions with
its financing counterparties, the availability of other financing
options and the Company’s estimate of book value per common share
for the quarter ending March 31, 2020. Forward-looking
statements are based on estimates, projections, beliefs and
assumptions of management of the Company at the time of such
statements and are not guarantees of future
performance. Forward-looking statements involve risks and
uncertainties in predicting future results and conditions. Actual
results and outcomes could differ materially from those projected
in these forward-looking statements due to a variety of
factors, including, without limitation, changes in interest rates
and the market value of the Company’s assets; changes in credit
spreads; changes in the long-term credit ratings of the U.S.,
Fannie Mae, Freddie Mac, and Ginnie Mae; market volatility; changes
in prepayment rates on the loans the Company owns or that underlie
the Company’s investment securities; increased rates of default
and/or decreased recovery rates on the Company's assets; the
Company's ability to identify and acquire its targeted assets,
including assets in its investment pipeline; changes in the
Company’s relationships with its financing counterparties and its
ability to borrow to finance its assets and the terms thereof; the
Company’s ability to predict and control costs; changes in
governmental laws, regulations or policies affecting the Company’s
business; the Company’s ability to maintain its qualification as a
REIT for federal tax purposes; the Company’s ability to maintain
its exemption from registration under the Investment Company Act of
1940, as amended; risks associated with investing in real estate
assets, including changes in business conditions and the general
economy, and conditions in the market for Agency RMBS, non-Agency
RMBS, ABS and CMBS securities, residential mortgage loans,
structured multi-family investments and other mortgage-,
residential housing- and credit-related assets, including changes
resulting from the ongoing spread and economic effects of the novel
coronavirus (COVID-19). These and other risks, uncertainties and
factors, including the risk factors described in the Company’s
reports filed with the SEC pursuant to the Exchange Act, could
cause the Company’s actual results to differ materially from those
projected in any forward-looking statements it makes. All
forward-looking statements speak only as of the date on which they
are made. New risks and uncertainties arise over time and it is not
possible to predict those events or how they may affect the
Company. Except as required by law, the Company is not obligated
to, and does not intend to, update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
For Further Information
AT THE COMPANYKristine Nario-Eng
Chief Financial
Officer
Phone: 646-216-2363Email: knario@nymtrust.com
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