AG Mortgage Investment Trust, Inc. (NYSE: MITT) (the “Company”)
announced today an update on its portfolio and liquidity position,
including certain preliminary estimated financial information as of
and for the quarter ended September 30, 2022.
In light of sustained market volatility and to enhance
transparency to shareholders, the Company has elected to provide
the following preliminary updates on its business and financial
performance:
Book Value Per Common Share. The Company
estimates that Book Value per share as of September 30, 2022 was
between $10.97 and $11.07, as compared to $11.48 per share as of
June 30, 2022. In addition, Adjusted Book Value per share as of
September 30, 2022 was estimated to be between $10.63 and $10.73,
as compared to $11.15 per share as of June 30, 2022.(1)
Liquidity Position. The Company’s liquidity
position remains strong, with total liquidity as of September 30,
2022 estimated to be $79.7 million, consisting of $77.6 million of
cash and $2.1 million of unencumbered Agency RMBS.
Investment Portfolio. The Company’s
Investment Portfolio as of September 30, 2022 was estimated to be
$4.3 billion as compared to $4.1 billion as of June 30, 2022.
(2)
Leverage. The Company’s Economic Leverage
Ratio is estimated to be 2.0x as of September 30, 2022 compared to
2.7x as of June 30, 2022. (3) Non-recourse and recourse financing
as of September 30, 2022 is estimated to be $3.0 billion and $1.0
billion, respectively, as compared to $2.5 billion and $0.9
billion, respectively, as of June 30, 2022.
The Company continues to execute its
disciplined financing strategy, focused on reducing warehouse
exposure. During the quarter ended September 30, 2022 and through
the date of this press release, the Company executed three rated
Non-Agency and Agency-Eligible Loan securitizations, representing
an aggregate of $1.3 billion of unpaid principal balance (including
one securitization that priced in October 2022, representing $0.5
billion unpaid principal balance, which is subject to closing).
Warehouse Capacity. The Company had
approximately $1.9 billion in available capacity under its
warehouse facilities as of September 30, 2022. Following the
completion of the recently priced securitization in October 2022,
the Company’s available warehouse capacity will increase to $2.2
billion.
Stock Repurchases. During the third quarter
2022 and through the date of this press release, the Company
repurchased 0.5 million shares of its common stock at a cost of
$2.7 million.
The Company has not yet completed its quarterly financial close
process for the three months ended September 30, 2022. The
preliminary financial information set forth above reflects the
Company's estimates with respect to such information, based on
information currently available to management, and may vary
materially from the Company's actual financial results as of and
for the periods noted above. Further, these estimates are not a
comprehensive statement or estimate of the Company's financial
results or financial condition. These estimates should not be
viewed as a substitute for financial statements prepared in
accordance with U.S. GAAP, and they are not necessarily indicative
of the results to be achieved in any future period. Accordingly, a
reader should not place undue reliance on these estimates.
These estimates, which are the responsibility of the Company's
management, were prepared by the Company's management and are based
upon a number of assumptions. Additional items that may require
adjustments to these estimates may be identified and could result
in material changes to these estimates. These estimates are
inherently uncertain and the Company undertakes no obligation to
update or revise this information.
About AG Mortgage Investment Trust, Inc.
AG Mortgage Investment Trust, Inc. is a residential mortgage
REIT with a focus on investing in a diversified risk-adjusted
portfolio of residential mortgage-related assets in the U.S.
mortgage market. AG Mortgage Investment Trust, Inc. is externally
managed and advised by AG REIT Management, LLC, a subsidiary of
Angelo, Gordon & Co., L.P., a leading privately-held
alternative investment firm focusing on credit and real estate
strategies.
Additional information can be found on the Company’s website at
www.agmit.com.
About Angelo, Gordon & Co., L.P.
Angelo, Gordon & Co., L.P. (“Angelo Gordon”) is a
privately-held alternative investment firm founded in November
1988. The firm currently manages approximately $52 billion with a
primary focus on credit and real estate strategies. Angelo Gordon
has over 600 employees, including more than 200 investment
professionals, and is headquartered in New York, with associated
offices elsewhere in the U.S., Europe and Asia. For more
information, visit www.angelogordon.com.
Forward Looking Statements
This press release may contain forward-looking statements within
the meaning of the federal securities laws. Forward-looking
statements relate to expectations, beliefs, projections, future
plans and strategies, anticipated events or trends and similar
expressions concerning matters that are not historical facts. In
some cases, you can identify forward-looking statements by the use
of forward-looking terminology such as “may,” “will,” “should,”
“expects,” “intends,” “plans,” “anticipates,” “believes,”
“estimates,” “predicts,” or “potential” or the negative of these
words and phrases or similar words or phrases which are predictions
of or indicate future events or trends and which do not relate
solely to historical matters. Forward-looking statements involve
known and unknown risks, uncertainties, assumptions and
contingencies, many of which are beyond our control, and may cause
actual results to differ significantly from those expressed in any
forward-looking statement. Factors that may cause such a
difference, include, without limitation, the Company’s ability to
achieve the anticipated benefits of its origination and
securitization strategy, the Company’s ability to grow at the pace
anticipated or at all, the impact of uncertainty and volatility in
the markets on the Company’s business and strategy, the Company’s
pipeline, the Company’s liquidity, the Company’s financing
strategy, including the ability to execute securitizations
(including whether the securitization in October 2022 will close as
anticipated or at all), the availability of capacity under the
Company’s warehouse facilities which are uncommitted, the ability
and timing of any stock repurchases, the Company’s management and
resources, the Company’s ability to navigate challenging market
conditions and harness MITT’s earnings power, including the ability
to enhance shareholder value, and other risks and uncertainties,
including those detailed in the Company’s Annual Report on Form
10-K for the year ended December 31, 2021 and its other reports
filed from time to time with the U.S. Securities and Exchange
Commission. All forward-looking statements reflect the Company’s
good faith beliefs, assumptions and expectations, but they are not
guarantees of future performance. The Company cautions investors
not to unduly rely on any forward-looking statements.
The forward-looking statements speak only as of the date of this
press release. The Company is under no duty to update any of these
forward-looking statements after the date of this press release,
nor to conform prior statements to actual results or revised
expectations, and the Company does not intend to do so.
Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures.
Management believes that this non-GAAP information, when considered
with our GAAP financial statements, provides supplemental
information useful for investors to help evaluate our financial
performance. Our presentation of non-GAAP financial information may
not be comparable to similarly-titled measures of other companies,
who may use different calculations. This non-GAAP financial
information should not be considered a substitute for, or superior
to, the financial measures calculated in accordance with GAAP. Our
GAAP financial results and the reconciliations of the non-GAAP
financial measures included in this press release to the most
directly comparable financial measures prepared in accordance with
GAAP should be carefully evaluated.
The below table provides a reconciliation of the Company’s
preliminary estimated range of its Book Value to its preliminary
estimated range of Adjusted Book Value ($ in thousands, except per
share data):
Low
High
Book Value per share(1)
$
10.97
$
11.07
Net proceeds less liquidation preference
of preferred stock per share
(0.34
)
(0.34
)
Adjusted Book Value per share(1)
$
10.63
$
10.73
Footnotes
(1) Book Value per share is calculated using stockholders’
equity less net proceeds of our cumulative redeemable preferred
stock divided by the total common shares issued and outstanding.
Adjusted Book Value per share is calculated using stockholders’
equity less the liquidation preference of our cumulative redeemable
preferred stock divided by the total common shares issued and
outstanding. Estimated Book Value per share and estimated Adjusted
Book Value per share as of September 30, 2022 are based on
22,117,486 common shares outstanding on that date. Adjusted Book
Value per share is a Non-GAAP financial measure. Refer to the
“Non-GAAP Financial Measures” section for additional information.
(2) The Investment Portfolio at period end consists of the net
carrying value of our Residential Investments, Agency RMBS, and,
where applicable, any long positions in TBAs, including mortgage
loans and securities owned through investments in affiliates,
exclusive of AG Arc LLC. Our Residential Investments and Agency
RMBS are held at fair value. (3) Economic Leverage Ratio is
calculated by dividing total Economic Leverage, including any net
TBA position, by our GAAP stockholders’ equity at quarter end.
Total Economic Leverage at quarter end includes recourse financing
arrangements recorded within "Investments in debt and equity of
affiliates" exclusive of any financing utilized through AG Arc LLC,
plus the payable on all unsettled buys less the financing on all
unsettled sells and any net TBA position (at cost). Total Economic
Leverage excludes any non-recourse financing arrangements.
Non-recourse financing arrangements include securitized debt, as
well as financing on certain Non-QM Loans. Our obligation to repay
our non-recourse financing arrangements is limited to the value of
the pledged collateral thereunder and does not create a general
claim against us as an entity.
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version on businesswire.com: https://www.businesswire.com/news/home/20221017005957/en/
AG Mortgage Investment Trust, Inc. Investor Relations
(212) 692-2110 ir@agmit.com
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