New York Mortgage Trust, Inc. (Nasdaq: NYMT) (“NYMT,” the
“Company,” “we,” “our” or “us”) today reported results for the
three months ended March 31, 2022.
Summary of First Quarter 2022:
(dollar amounts in thousands, except per share data)
Net loss attributable to Company's common stockholders |
$ |
(84,343 |
) |
Net loss attributable to
Company's common stockholders per share (basic) |
$ |
(0.22 |
) |
Undepreciated loss (1) |
$ |
(64,205 |
) |
Undepreciated loss per common share (1) |
$ |
(0.17 |
) |
Comprehensive loss attributable to Company's common
stockholders |
$ |
(86,531 |
) |
Comprehensive loss
attributable to Company's common stockholders per share
(basic) |
$ |
(0.23 |
) |
Yield on average interest earning assets |
|
6.80 |
% |
Net interest income |
$ |
29,879 |
|
Portfolio net interest income (2) |
$ |
39,536 |
|
Portfolio net interest margin |
|
3.87 |
% |
Book value per common share at the end of the period |
$ |
4.36 |
|
Undepreciated book value per common share at the end of the period
(1) |
$ |
4.45 |
|
Economic return on book value (3) |
(5.11)% |
Economic return on undepreciated book value (4) |
(4.01)% |
Dividends per common share |
$ |
0.10 |
|
(1) |
Represents a non-GAAP financial measure. A reconciliation of the
Company's non-GAAP financial measures to their most directly
comparable GAAP measure is included below in "Reconciliation of
Financial Information." |
(2) |
Excludes interest expense generated by our subordinated debentures,
convertible notes, senior unsecured notes and mortgages payable on
real estate. Our calculation of portfolio net interest margin may
not be comparable to similarly-titled measures of other companies
who may use a different calculation. |
(3) |
Economic return on book value is based on the periodic change in
GAAP book value per common share plus dividends declared per common
share, if any, during the period. |
(4) |
Economic return on undepreciated book value is based on the
periodic change in undepreciated book value per common share, a
non-GAAP financial measure, plus dividends declared per common
share, if any, during the period. |
|
|
Key Developments:
Investing Activities
- Purchased approximately $782.5
million in residential loans and $45.2 million in single-family
rental properties.
- Funded multi-family joint venture
investments and mezzanine lending investments for approximately
$137.7 million and $19.2 million, respectively, and received
approximately $31.8 million in proceeds from redemptions of
mezzanine lending investments.
Financing Activities
- Completed a securitization of
residential loans, resulting in approximately $286.1 million in net
proceeds to the Company after deducting expenses associated with
the transaction. The Company utilized the net proceeds to repay
approximately $195.6 million on an outstanding repurchase agreement
related to residential loans.
- Completed a securitization of
business purpose loans, resulting in approximately $223.5 million
in net proceeds to the Company after deducting expenses associated
with the transaction. The Company utilized the net proceeds to
repay approximately $121.1 million on an outstanding repurchase
agreement related to business purpose loans.
- Redeemed our convertible notes at
maturity for $138.0 million.
- The Company's Board of Directors
authorized a share repurchase program for up to $200.0 million of
the Company's common stock.
Subsequent Developments:
- Entered into non-mark-to-market,
non-recourse repurchase agreement with a new counterparty with a
maximum aggregate purchase price of $750 million to fund the
purchase of business purpose loans.
Management Overview
Jason Serrano, Chief Executive Officer and
President, commented: “In a challenging quarter with the Fed
attempting to regain control of inflation, markets experienced
heightened volatility, particularly with respect to interest rates.
The volatility combined with a rapidly rising interest rate
environment caused the fixed income market to underperform, driving
the Company’s undepreciated book value down by 6%. Although the
value of many mortgage-related assets fell during the quarter, we
were able to strengthen our balance sheet by completing multiple
loan securitizations, further protecting the Company against abrupt
changes in financing availability while lowering the Company’s cost
of funds.
During the quarter, we continued to execute on
our strategic plan to generate high portfolio turnover by
increasing our allocation to high coupon, short duration
residential investor loans that we believe are supported by solid
underlying fundamentals. Through our strong proprietary pipelines
in this sector, we nearly doubled net investment activity with cash
raised organically through a combination of maturity paydowns and
financing activity of unencumbered loans. These investments helped
push our portfolio yield to the highest level in nearly 10 years.
We believe our focus on short duration residential loans and our
strong cash position will better enable us to rapidly reposition
our portfolio in a higher rate environment and patiently seize on
superior market opportunities.”
Capital Allocation
The following tables set forth, by investment
category, our allocated capital at March 31, 2022, our
interest income and interest expense, and the average yield,
average portfolio financing cost, and portfolio net interest margin
for our average interest earning assets for the three months ended
March 31, 2022 (dollar amounts in thousands):
|
Single-Family (1) |
|
Multi-Family |
|
Other |
|
Total |
Residential loans |
$ |
3,953,427 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3,953,427 |
|
Consolidated SLST CDOs |
|
(754,264 |
) |
|
|
— |
|
|
|
— |
|
|
|
(754,264 |
) |
Multi-family loans |
|
— |
|
|
|
110,208 |
|
|
|
— |
|
|
|
110,208 |
|
Investment securities
available for sale |
|
75,499 |
|
|
|
31,576 |
|
|
|
38,705 |
|
|
|
145,780 |
|
Equity investments |
|
— |
|
|
|
193,194 |
|
|
|
32,106 |
|
|
|
225,300 |
|
Equity investments in consolidated multi-family properties (2) |
|
— |
|
|
|
367,055 |
|
|
|
— |
|
|
|
367,055 |
|
Single-family rental properties |
|
83,780 |
|
|
|
— |
|
|
|
— |
|
|
|
83,780 |
|
Total investment portfolio carrying value |
|
3,358,442 |
|
|
|
702,033 |
|
|
|
70,811 |
|
|
|
4,131,286 |
|
Liabilities: |
|
|
|
|
|
|
|
Repurchase agreements |
|
(910,097 |
) |
|
|
(16,952 |
) |
|
|
— |
|
|
|
(927,049 |
) |
Residential loan securitization CDOs |
|
(1,143,855 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1,143,855 |
) |
Senior unsecured notes |
|
— |
|
|
|
— |
|
|
|
(96,870 |
) |
|
|
(96,870 |
) |
Subordinated debentures |
|
— |
|
|
|
— |
|
|
|
(45,000 |
) |
|
|
(45,000 |
) |
Cash, cash equivalents and restricted cash (3) |
|
97,321 |
|
|
|
— |
|
|
|
271,230 |
|
|
|
368,551 |
|
Other |
|
(11,722 |
) |
|
|
(13,861 |
) |
|
|
(43,862 |
) |
|
|
(69,445 |
) |
Net Company capital allocated |
$ |
1,390,089 |
|
|
$ |
671,220 |
|
|
$ |
156,309 |
|
|
$ |
2,217,618 |
|
|
|
|
|
|
|
|
|
Company Recourse Leverage Ratio (4) |
|
|
|
|
|
|
0.5x |
Portfolio Recourse Leverage Ratio (5) |
|
|
|
|
|
|
0.4x |
(1) |
The Company, through its ownership of certain securities, has
determined it is the primary beneficiary of Consolidated SLST and
has consolidated the assets and liabilities of Consolidated SLST in
the Company’s condensed consolidated financial statements.
Consolidated SLST is presented on our condensed consolidated
balance sheets as residential loans, at fair value and
collateralized debt obligations, at fair value. Our investment in
Consolidated SLST as of March 31, 2022 was limited to the RMBS
comprised of first loss subordinated securities and IOs issued by
the securitization with an aggregate net carrying value of $214.1
million. |
(2) |
Represents the Company's equity investments in consolidated
multi-family apartment communities. A reconciliation of the
Company's equity investments in consolidated multi-family
properties to the condensed consolidated financial statements is
included below in "Reconciliation of Financial Information." |
(3) |
Excludes cash in the amount of $33.3 million and restricted cash in
the amount of $2.1 million held in the Company's equity investments
in consolidated multi-family properties. Restricted cash is
included in the Company’s accompanying condensed consolidated
balance sheets in other assets. |
(4) |
Represents the Company's total outstanding repurchase agreement
financing, subordinated debentures and senior unsecured notes
divided by the Company's total stockholders' equity. Does not
include Consolidated SLST CDOs amounting to $754.3 million,
residential loan securitization CDOs amounting to $1.1 billion and
mortgages payable on real estate amounting to $1.1 billion as they
are non-recourse debt for which the Company has no obligation. |
(5) |
Represents the Company's outstanding repurchase agreement financing
divided by the Company’s total stockholders’ equity. |
|
|
Net Interest Income - Three Months Ended March 31,
2022: |
Single-Family (1) |
|
Multi-Family |
|
Other |
|
Total |
Interest Income (2) |
$ |
46,823 |
|
|
$ |
3,312 |
|
|
$ |
2,388 |
|
|
$ |
52,523 |
|
Interest Expense |
|
(12,975 |
) |
|
|
(12 |
) |
|
|
(9,657 |
) |
|
|
(22,644 |
) |
Net Interest Income (Expense) |
$ |
33,848 |
|
|
$ |
3,300 |
|
|
$ |
(7,269 |
) |
|
$ |
29,879 |
|
|
|
|
|
|
|
|
|
Portfolio Net Interest Margin - Three Months Ended March
31, 2022: |
|
|
|
|
|
|
|
Average Interest Earning
Assets (3) (4) |
$ |
2,926,764 |
|
|
$ |
142,584 |
|
|
$ |
22,496 |
|
|
$ |
3,091,844 |
|
Yield on Average Interest
Earning Assets (5) |
|
6.40 |
% |
|
|
9.29 |
% |
|
|
42.46 |
% |
|
|
6.80 |
% |
Average Portfolio Financing
Cost (6) |
|
(2.93 |
) |
|
|
(2.39 |
) |
|
|
— |
|
|
(2.93)% |
Portfolio Net Interest Margin
(7) |
|
3.47 |
% |
|
|
6.90 |
% |
|
|
42.46 |
% |
|
|
3.87 |
% |
(1) |
The Company, through its ownership of certain securities, has
determined it is the primary beneficiary of Consolidated SLST and
has consolidated the assets and liabilities of Consolidated SLST in
the Company’s condensed consolidated financial statements. Interest
income amounts represent interest income earned by securities that
are owned by the Company. A reconciliation of net interest income
from the Single-Family portfolio to the condensed consolidated
financial statements is included below in "Reconciliation of
Financial Information." |
(2) |
Includes interest income earned on cash accounts held by the
Company. |
(3) |
Average Interest Earning Assets for the period indicated excludes
all Consolidated SLST assets other than those securities owned by
the Company. |
(4) |
Average Interest Earning Assets is calculated each quarter based on
daily average amortized cost for the respective periods. |
(5) |
Yield on Average Interest Earning Assets was calculated by dividing
our annualized interest income relating to our interest earning
assets by our Average Interest Earning Assets for the respective
periods. |
(6) |
Average Portfolio Financing Cost was calculated by dividing our
annualized interest expense relating to our interest earning assets
by our average interest bearing liabilities, excluding the interest
expense generated by our subordinated debentures, convertible
notes, senior unsecured notes and mortgages payable on real estate
of approximately $0.5 million, $0.4 million, $1.6 million and $7.2
million, respectively. Average interest bearing liabilities is
calculated each quarter based on daily average outstanding balance
for the respective periods. |
(7) |
Portfolio Net Interest Margin is the difference between our Yield
on Average Interest Earning Assets and our Average Portfolio
Financing Cost, excluding the weighted average cost of subordinated
debentures, convertible notes, senior unsecured notes and mortgages
payable on real estate. |
|
|
Conference Call
On Wednesday, May 4, 2022 at 11:30 a.m., Eastern
Time, New York Mortgage Trust's executive management is scheduled
to host a conference call and audio webcast to discuss the
Company’s financial results for the three months ended
March 31, 2022. The conference call dial-in number is (877)
312-8806. The replay will be available until Wednesday, May 11,
2022 and can be accessed by dialing (855) 859-2056 and entering
passcode 8651777. A live audio webcast of the conference call can
be accessed via the Internet, on a listen-only basis, at the
Company's website at http://www.nymtrust.com. Please allow extra
time, prior to the call, to visit the site and download the
necessary software to listen to the Internet broadcast.
In connection with the release of these
financial results, the Company will also post a supplemental
financial presentation that will accompany the conference call on
its website at http://www.nymtrust.com under the "Investors —
Events and Presentations" section. First quarter 2022 financial and
operating data can be viewed in the Company’s Quarterly Report on
Form 10-Q for the quarter ended March 31, 2022, which is
expected to be filed with the Securities and Exchange Commission on
or about May 5, 2022. A copy of the Form 10-Q will be posted at the
Company’s website as soon as reasonably practicable following its
filing with the Securities and Exchange Commission.
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 (“REIT”) for federal income tax purposes. NYMT is
an internally managed REIT in the business of acquiring, investing
in, financing and managing primarily mortgage-related single-family
and multi-family residential assets, including joint venture equity
investments in multi-family apartment communities. For a list of
defined terms used from time to time in this press release, see
“Defined Terms” below.
Defined Terms
The following defines certain of the commonly
used terms that may appear in this press release: “RMBS” refers to
residential mortgage-backed securities backed by adjustable-rate,
hybrid adjustable-rate, or fixed-rate residential loans; “Agency
RMBS” refers to RMBS representing interests in or obligations
backed by pools of residential loans guaranteed by a government
sponsored enterprise (“GSE”), such as the Federal National Mortgage
Association (“Fannie Mae”) or the Federal Home Loan Mortgage
Corporation (“Freddie Mac”), or an agency of the U.S. government,
such as the Government National Mortgage Association (“Ginnie
Mae”); “ABS” refers to debt and/or equity tranches of
securitizations backed by various asset classes including, but not
limited to, automobiles, aircraft, credit cards, equipment,
franchises, recreational vehicles and student loans; “non-Agency
RMBS” refers to RMBS that are not guaranteed by any agency of the
U.S. Government or any GSE; “IOs” refers collectively to interest
only and inverse interest only mortgage-backed securities that
represent the right to the interest component of the cash flow from
a pool of mortgage loans; “POs” refers to mortgage-backed
securities that represent the right to the principal component of
the cash flow from a pool of mortgage loans; “CMBS” refers to
commercial mortgage-backed securities comprised of commercial
mortgage pass-through securities issued by a GSE, as well as PO, IO
or mezzanine securities that represent the right to a specific
component of the cash flow from a pool of commercial mortgage
loans; “multi-family CMBS” refers to CMBS backed by commercial
mortgage loans on multi-family properties; “CDO” refers to
collateralized debt obligation and includes debt that permanently
finances the residential loans held in Consolidated SLST, and the
Company's residential loans held in securitization trusts and
non-Agency RMBS re-securitization that we consolidate or
consolidated in our financial statements in accordance with GAAP;
“Consolidated SLST” refers to a Freddie Mac-sponsored residential
loan securitization, comprised of seasoned re-performing and
non-performing residential loans, of which we own the first loss
subordinated securities and certain IOs, that we consolidate in our
financial statements in accordance with GAAP; “Consolidated VIEs”
refers to variable interest entities ("VIE") where the Company is
the primary beneficiary, as it has both the power to direct the
activities that most significantly impact the economic performance
of the VIE and a right to receive benefits or absorb losses of the
entity that could be potentially significant to the VIE and that we
consolidate in our financial statements in accordance with GAAP;
“Multi-Family” portfolio includes multi-family CMBS, preferred
equity and mezzanine loan investments and certain equity
investments that invest in multi-family assets, including joint
venture equity investments; “Single-Family” portfolio includes
residential loans, Agency RMBS, non-Agency RMBS and single-family
rental properties; and “Other” portfolio includes ABS and equity
investments in entities that invest in residential assets or
originate residential loans.
Cautionary Statement Regarding
Forward-Looking Statements
When used in this press release, in future
filings with the Securities and Exchange Commission (the “SEC”) or
in 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” or similar
expressions, are intended to identify “forward-looking statements”
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), and, as such, may involve known and
unknown risks, uncertainties and assumptions.
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
the Company’s business and investment strategy; changes in interest
rates and the fair market value of the Company’s assets, including
negative changes resulting in margin calls relating to the
financing 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; general volatility of the markets in
which the Company invests; changes in prepayment rates on the loans
the Company owns or that underlie the Company’s investment
securities; increased rates of default, delinquency or vacancy
and/or decreased recovery rates on or at the Company’s assets; the
Company’s ability to identify and acquire targeted assets,
including assets in its investment pipeline; changes in
relationships with the Company’s financing counterparties and the
Company’s ability to borrow to finance its assets and the terms
thereof; changes in our relationships with and/or the performance
of our operating partners; the Company’s ability to predict and
control costs; changes in laws, regulations or policies affecting
the Company’s business, including actions that may be taken to
contain or address the impact of the COVID-19 pandemic; the
Company’s ability to make distributions to its stockholders in the
future; 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, the availability of investment opportunities and the
conditions in the market for Agency RMBS, non-Agency RMBS, ABS and
CMBS securities, residential loans, structured multi-family
investments and other mortgage-, residential housing- and
credit-related assets; and the impact of COVID-19 on the Company,
its operations and its personnel.
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 the Company 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
CONTACT: |
AT THE
COMPANY |
|
Phone: 212-792-0107 |
|
Email: InvestorRelations@nymtrust.com |
|
|
FINANCIAL TABLES FOLLOW
NEW YORK MORTGAGE TRUST, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE
SHEETS(Dollar amounts in thousands, except share
data)
|
March 31, 2022 |
|
December 31, 2021 |
|
(unaudited) |
|
|
ASSETS |
|
|
|
Residential loans, at fair value |
$ |
3,953,427 |
|
|
$ |
3,575,601 |
|
Multi-family loans, at fair
value |
|
110,208 |
|
|
|
120,021 |
|
Investment securities
available for sale, at fair value |
|
145,780 |
|
|
|
200,844 |
|
Equity investments, at fair
value |
|
225,300 |
|
|
|
239,631 |
|
Cash and cash equivalents |
|
303,762 |
|
|
|
289,602 |
|
Real estate, net |
|
1,534,833 |
|
|
|
1,017,583 |
|
Other assets |
|
268,442 |
|
|
|
215,019 |
|
Total Assets (1) |
$ |
6,541,752 |
|
|
$ |
5,658,301 |
|
LIABILITIES AND EQUITY |
|
|
|
Liabilities: |
|
|
|
Repurchase agreements |
$ |
927,049 |
|
|
$ |
554,259 |
|
Collateralized debt
obligations ($754,264 at fair value and $1,143,855 at amortized
cost, net as of March 31, 2022 and $839,419 at fair value and
$682,802 at amortized cost, net as of December 31, 2021) |
|
1,898,119 |
|
|
|
1,522,221 |
|
Convertible notes |
|
— |
|
|
|
137,898 |
|
Senior unsecured notes |
|
96,870 |
|
|
|
96,704 |
|
Subordinated debentures |
|
45,000 |
|
|
|
45,000 |
|
Mortgages payable on real estate, net |
|
1,083,371 |
|
|
|
709,356 |
|
Other liabilities |
|
187,981 |
|
|
|
161,081 |
|
Total liabilities (1) |
|
4,238,390 |
|
|
|
3,226,519 |
|
|
|
|
|
Commitments and Contingencies |
|
|
|
|
|
|
|
Redeemable Non-Controlling Interest in Consolidated
Variable Interest Entities |
|
53,361 |
|
|
|
66,392 |
|
|
|
|
|
Stockholders' Equity: |
|
|
|
Preferred stock, par value
$0.01 per share, 31,500,000 and 29,500,000 shares authorized as of
March 31, 2022 and December 31, 2021, respectively,
22,284,994 shares issued and outstanding ($557,125 aggregate
liquidation preference) |
|
538,221 |
|
|
|
538,221 |
|
Common stock, par value $0.01
per share, 800,000,000 shares authorized, 381,249,031 and
379,405,240 shares issued and outstanding as of March 31, 2022
and December 31, 2021, respectively |
|
3,812 |
|
|
|
3,794 |
|
Additional paid-in capital |
|
2,357,910 |
|
|
|
2,356,576 |
|
Accumulated other comprehensive (loss) income |
|
(410 |
) |
|
|
1,778 |
|
Accumulated deficit |
|
(681,915 |
) |
|
|
(559,338 |
) |
Company's stockholders' equity |
|
2,217,618 |
|
|
|
2,341,031 |
|
Non-controlling interest in consolidated variable interest
entities |
|
32,383 |
|
|
|
24,359 |
|
Total equity |
|
2,250,001 |
|
|
|
2,365,390 |
|
Total Liabilities and Equity |
$ |
6,541,752 |
|
|
$ |
5,658,301 |
|
(1) |
Our condensed consolidated balance sheets include assets and
liabilities of consolidated variable interest entities ("VIEs") as
the Company is the primary beneficiary of these VIEs. As of
March 31, 2022 and December 31, 2021, assets of
consolidated VIEs totaled $3,872,784 and $2,940,513, respectively,
and the liabilities of consolidated VIEs totaled $3,030,539 and
$2,235,665, respectively. |
|
|
NEW YORK MORTGAGE TRUST, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(Amounts in thousands, except per share
data)(unaudited)
|
For the Three Months EndedMarch
31, |
|
|
2022 |
|
|
|
2021 |
|
NET INTEREST INCOME: |
|
|
|
Interest income |
$ |
58,501 |
|
|
$ |
50,039 |
|
Interest expense |
|
28,622 |
|
|
|
19,699 |
|
Total net interest income |
|
29,879 |
|
|
|
30,340 |
|
|
|
|
|
NON-INTEREST (LOSS) INCOME: |
|
|
|
Realized gains, net |
|
3,806 |
|
|
|
7,058 |
|
Unrealized (losses) gains, net |
|
(83,659 |
) |
|
|
26,166 |
|
Income from equity investments |
|
6,053 |
|
|
|
3,399 |
|
Income from real estate |
|
25,589 |
|
|
|
1,495 |
|
Other income |
|
1,427 |
|
|
|
1,602 |
|
Total non-interest (loss) income |
|
(46,784 |
) |
|
|
39,720 |
|
|
|
|
|
GENERAL, ADMINISTRATIVE AND
OPERATING EXPENSES: |
|
|
|
General and administrative expenses |
|
14,358 |
|
|
|
11,441 |
|
Expenses related to real estate |
|
47,989 |
|
|
|
2,924 |
|
Portfolio operating expenses |
|
9,489 |
|
|
|
4,830 |
|
Total general, administrative and operating expenses |
|
71,836 |
|
|
|
19,195 |
|
|
|
|
|
(LOSS) INCOME FROM OPERATIONS
BEFORE INCOME TAXES |
|
(88,741 |
) |
|
|
50,865 |
|
Income tax (benefit) expense |
|
(22 |
) |
|
|
66 |
|
|
|
|
|
NET (LOSS) INCOME |
|
(88,719 |
) |
|
|
50,799 |
|
Net loss attributable to
non-controlling interest in consolidated variable interest
entities |
|
14,869 |
|
|
|
1,409 |
|
NET (LOSS) INCOME ATTRIBUTABLE TO COMPANY |
|
(73,850 |
) |
|
|
52,208 |
|
Preferred stock dividends |
|
(10,493 |
) |
|
|
(10,297 |
) |
NET (LOSS) INCOME ATTRIBUTABLE
TO COMPANY'S COMMON STOCKHOLDERS |
$ |
(84,343 |
) |
|
$ |
41,911 |
|
|
|
|
|
Basic (loss) earnings per common share |
$ |
(0.22 |
) |
|
$ |
0.11 |
|
Diluted (loss) earnings per common share |
$ |
(0.22 |
) |
|
$ |
0.11 |
|
Weighted average shares outstanding-basic |
|
380,795 |
|
|
|
378,881 |
|
Weighted average shares outstanding-diluted |
|
380,795 |
|
|
|
380,815 |
|
|
|
|
|
|
|
|
|
NEW YORK MORTGAGE TRUST, INC. AND
SUBSIDIARIESSUMMARY OF QUARTERLY (LOSS)
EARNINGS(Dollar amounts in thousands, except per
share data)(unaudited)
|
For the Three Months Ended |
|
March 31, 2022 |
|
December 31, 2021 |
|
September 30, 2021 |
|
June 30, 2021 |
|
March 31, 2021 |
Total net interest income |
$ |
29,879 |
|
|
$ |
30,772 |
|
|
$ |
31,031 |
|
|
$ |
31,475 |
|
|
$ |
30,340 |
|
Total non-interest (loss) income |
|
(46,784 |
) |
|
|
39,333 |
|
|
|
49,412 |
|
|
|
43,276 |
|
|
|
39,720 |
|
Total general, administrative
and operating expenses |
|
71,836 |
|
|
|
34,063 |
|
|
|
28,046 |
|
|
|
23,121 |
|
|
|
19,195 |
|
(Loss) income from operations
before income taxes |
|
(88,741 |
) |
|
|
36,042 |
|
|
|
52,397 |
|
|
|
51,630 |
|
|
|
50,865 |
|
Income tax (benefit) expense |
|
(22 |
) |
|
|
1,162 |
|
|
|
1,215 |
|
|
|
15 |
|
|
|
66 |
|
Net (loss) income |
|
(88,719 |
) |
|
|
34,880 |
|
|
|
51,182 |
|
|
|
51,615 |
|
|
|
50,799 |
|
Net loss attributable to
non-controlling interest in consolidated variable interest
entities |
|
14,869 |
|
|
|
1,296 |
|
|
|
394 |
|
|
|
1,625 |
|
|
|
1,409 |
|
Net (loss) income attributable
to Company |
|
(73,850 |
) |
|
|
36,176 |
|
|
|
51,576 |
|
|
|
53,240 |
|
|
|
52,208 |
|
Preferred stock dividends |
|
(10,493 |
) |
|
|
(10,994 |
) |
|
|
(11,272 |
) |
|
|
(10,296 |
) |
|
|
(10,297 |
) |
Preferred stock redemption
charge |
|
— |
|
|
|
(2,722 |
) |
|
|
(3,443 |
) |
|
|
— |
|
|
|
— |
|
Net (loss) income attributable
to Company's common stockholders |
|
(84,343 |
) |
|
|
22,460 |
|
|
|
36,861 |
|
|
|
42,944 |
|
|
|
41,911 |
|
Basic (loss) earnings per common share |
$ |
(0.22 |
) |
|
$ |
0.06 |
|
|
$ |
0.10 |
|
|
$ |
0.11 |
|
|
$ |
0.11 |
|
Diluted (loss) earnings per common share |
$ |
(0.22 |
) |
|
$ |
0.06 |
|
|
$ |
0.10 |
|
|
$ |
0.11 |
|
|
$ |
0.11 |
|
Weighted average shares
outstanding - basic |
|
380,795 |
|
|
|
379,346 |
|
|
|
379,395 |
|
|
|
379,299 |
|
|
|
378,881 |
|
Weighted average shares
outstanding - diluted |
|
380,795 |
|
|
|
380,551 |
|
|
|
380,983 |
|
|
|
381,517 |
|
|
|
380,815 |
|
|
|
|
|
|
|
|
|
|
|
Yield on average interest earning assets |
|
6.80 |
% |
|
|
6.57 |
% |
|
|
6.39 |
% |
|
|
6.31 |
% |
|
|
6.03 |
% |
Portfolio net interest income |
$ |
39,536 |
|
|
$ |
37,722 |
|
|
$ |
37,044 |
|
|
$ |
36,288 |
|
|
$ |
33,891 |
|
Portfolio net interest margin |
|
3.87 |
% |
|
|
3.63 |
% |
|
|
3.25 |
% |
|
|
2.97 |
% |
|
|
2.42 |
% |
Undepreciated (loss) earnings (1) |
$ |
(64,205 |
) |
|
$ |
31,045 |
|
|
$ |
42,190 |
|
|
$ |
44,021 |
|
|
$ |
42,625 |
|
Undepreciated (loss) earnings per common share (1) |
$ |
(0.17 |
) |
|
$ |
0.08 |
|
|
$ |
0.11 |
|
|
$ |
0.12 |
|
|
$ |
0.11 |
|
Book value per common
share |
$ |
4.36 |
|
|
$ |
4.70 |
|
|
$ |
4.74 |
|
|
$ |
4.74 |
|
|
$ |
4.71 |
|
Undepreciated book value per common share (1) |
$ |
4.45 |
|
|
$ |
4.74 |
|
|
$ |
4.76 |
|
|
$ |
4.75 |
|
|
$ |
4.71 |
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per common share |
$ |
0.10 |
|
|
$ |
0.10 |
|
|
$ |
0.10 |
|
|
$ |
0.10 |
|
|
$ |
0.10 |
|
Dividends declared per
preferred share on Series B Preferred Stock (2) |
$ |
— |
|
|
$ |
— |
|
|
$ |
0.48 |
|
|
$ |
0.48 |
|
|
$ |
0.48 |
|
Dividends declared per
preferred share on Series C Preferred Stock (2) |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0.49 |
|
|
$ |
0.49 |
|
Dividends declared per
preferred share on Series D Preferred Stock |
$ |
0.50 |
|
|
$ |
0.50 |
|
|
$ |
0.50 |
|
|
$ |
0.50 |
|
|
$ |
0.50 |
|
Dividends declared per
preferred share on Series E Preferred Stock |
$ |
0.49 |
|
|
$ |
0.49 |
|
|
$ |
0.49 |
|
|
$ |
0.49 |
|
|
$ |
0.49 |
|
Dividends declared per
preferred share on Series F Preferred Stock (3) |
$ |
0.43 |
|
|
$ |
0.43 |
|
|
$ |
0.47 |
|
|
$ |
— |
|
|
$ |
— |
|
Dividends declared per
preferred share on Series G Preferred Stock (4) |
$ |
0.44 |
|
|
$ |
0.25 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
(1) |
Represents a non-GAAP financial measure. A reconciliation of the
Company's non-GAAP financial measures to their most directly
comparable GAAP measure is included below in "Reconciliation of
Financial Information." |
(2) |
The Company redeemed all outstanding shares of its Series B
Preferred Stock and Series C Preferred Stock in December 2021 and
July 2021, respectively. |
(3) |
For the three months ended September 30, 2021, dividends declared
represents the cash dividend for the long initial dividend period
that began on July 7, 2021 and ended on October 14, 2021. |
(4) |
For the three months ended December 31, 2021, dividends declared
represent the cash dividend for the short initial dividend period
that began on November 24, 2021 and ended on January 14, 2022. |
|
|
Reconciliation of Financial
Information
Non-GAAP Financial Measures
In addition to the results presented in
accordance with GAAP, this press release includes certain non-GAAP
financial measures, including undepreciated earnings and
undepreciated book value per common share. Our management team
believes that these non-GAAP financial measures, when considered
with our GAAP financial statements, provide supplemental
information useful for investors as it enables them to evaluate our
current performance using the same metrics that management uses to
operate the business. Our presentation of non-GAAP financial
measures may not be comparable to similarly-titled measures of
other companies, who may use different calculations. Because these
measures are not calculated in accordance with GAAP, they 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.
Undepreciated (Loss) Earnings
Undepreciated (loss) earnings is a supplemental
non-GAAP financial measure defined as GAAP net (loss) income
attributable to Company's common stockholders excluding the
Company's share in depreciation expense and lease intangible
amortization expense related to operating real estate, net. By
excluding these non-cash adjustments from our operating results, we
believe that the presentation of undepreciated (loss) earnings
provides a consistent measure of our operating performance and
useful information to investors to evaluate the effective net
return on our portfolio. In addition, we believe that presenting
undepreciated (loss) earnings enables our investors to measure,
evaluate, and compare our operating performance to that of our
peers.
A reconciliation of net (loss) income
attributable to Company's common stockholders to undepreciated
(loss) earnings for the respective periods ended is presented below
(amounts in thousands, except per share data):
|
For the Three Months Ended |
|
March 31, 2022 |
|
December 31, 2021 |
|
September 30, 2021 |
|
June 30, 2021 |
|
March 31, 2021 |
Net (loss) income attributable to Company's common
stockholders |
$ |
(84,343 |
) |
|
$ |
22,460 |
|
$ |
36,861 |
|
$ |
42,944 |
|
$ |
41,911 |
Add: |
|
|
|
|
|
|
|
|
|
Depreciation expense on operating real estate |
|
6,159 |
|
|
|
2,237 |
|
|
1,655 |
|
|
296 |
|
|
193 |
Amortization of lease intangibles related to operating real
estate |
|
13,979 |
|
|
|
6,348 |
|
|
3,674 |
|
|
781 |
|
|
521 |
Undepreciated (loss) earnings |
$ |
(64,205 |
) |
|
$ |
31,045 |
|
$ |
42,190 |
|
$ |
44,021 |
|
$ |
42,625 |
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding - basic |
|
380,795 |
|
|
|
379,346 |
|
|
379,395 |
|
|
379,299 |
|
|
378,881 |
Undepreciated (loss) earnings
per common share |
$ |
(0.17 |
) |
|
$ |
0.08 |
|
$ |
0.11 |
|
$ |
0.12 |
|
$ |
0.11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Undepreciated Book Value Per Common Share
Undepreciated book value per common share is a
supplemental non-GAAP financial measure defined as GAAP book value
excluding the Company's share of cumulative depreciation and lease
intangible amortization expenses related to operating real estate,
net held at the end of the period. By excluding these non-cash
adjustments, undepreciated book value reflects the value of the
Company’s rental property portfolio at its undepreciated basis. The
Company's rental property portfolio includes single-family rental
homes directly owned by the Company and consolidated multi-family
apartment communities. We believe that the presentation of
undepreciated book value per common share is useful to investors
and us as it allows management to consider our investment portfolio
exclusive of non-cash adjustments to operating real estate, net and
facilitates the comparison of our financial performance to that of
our peers.
A reconciliation of GAAP book value to
undepreciated book value and calculation of undepreciated book
value per common share as of the dates indicated is presented below
(amounts in thousands, except per share data):
|
March 31, 2022 |
|
December 31, 2021 |
|
September 30, 2021 |
|
June 30, 2021 |
|
March 31, 2021 |
Company's stockholders' equity |
$ |
2,217,618 |
|
|
$ |
2,341,031 |
|
|
$ |
2,357,793 |
|
|
$ |
2,321,161 |
|
|
$ |
2,308,853 |
|
Preferred stock liquidation preference |
|
(557,125 |
) |
|
|
(557,125 |
) |
|
|
(561,027 |
) |
|
|
(521,822 |
) |
|
|
(521,822 |
) |
GAAP book value |
|
1,660,493 |
|
|
|
1,783,906 |
|
|
|
1,796,766 |
|
|
|
1,799,339 |
|
|
|
1,787,031 |
|
Add: |
|
|
|
|
|
|
|
|
|
Cumulative depreciation expense on operating real estate |
|
9,772 |
|
|
|
4,381 |
|
|
|
2,144 |
|
|
|
489 |
|
|
|
193 |
|
Cumulative amortization of lease intangibles related to operating
real estate |
|
25,303 |
|
|
|
11,324 |
|
|
|
4,976 |
|
|
|
1,302 |
|
|
|
521 |
|
Undepreciated book value |
$ |
1,695,568 |
|
|
$ |
1,799,611 |
|
|
$ |
1,803,886 |
|
|
$ |
1,801,130 |
|
|
$ |
1,787,745 |
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding |
|
381,249 |
|
|
|
379,405 |
|
|
|
379,286 |
|
|
|
379,372 |
|
|
|
379,273 |
|
GAAP book value per common
share (1) |
$ |
4.36 |
|
|
$ |
4.70 |
|
|
$ |
4.74 |
|
|
$ |
4.74 |
|
|
$ |
4.71 |
|
Undepreciated book value per
common share (2) |
$ |
4.45 |
|
|
$ |
4.74 |
|
|
$ |
4.76 |
|
|
$ |
4.75 |
|
|
$ |
4.71 |
|
(1) |
GAAP book value per common share is calculated using the GAAP book
value and the common shares outstanding for the periods
indicated. |
(2) |
Undepreciated book value per common share is calculated using the
undepreciated book value and the common shares outstanding for the
periods indicated. |
|
|
Equity Investments in Consolidated
Multi-Family Properties
We invest in joint venture investments that own
multi-family apartment communities which the Company determined to
be VIEs and for which the Company is the primary beneficiary. As a
result, we are required to consolidate these entities' underlying
assets, liabilities, income and expenses in our condensed
consolidated financial statements with non-controlling interests
for the third-party ownership of the joint ventures' membership
interests.
A reconciliation of our net equity investments
in consolidated multi-family properties to our condensed
consolidated financial statements as of March 31, 2022 is
shown below (dollar amounts in thousands):
Cash and cash equivalents |
|
$ |
33,340 |
Real estate, net |
|
|
1,451,053 |
Lease intangible, net (a) |
|
|
41,759 |
Other assets |
|
|
23,153 |
Total assets |
|
$ |
1,549,305 |
|
|
|
Mortgages payable on real estate, net |
|
$ |
1,083,371 |
Other liabilities |
|
|
13,135 |
Total liabilities |
|
$ |
1,096,506 |
|
|
|
Redeemable non-controlling interest in Consolidated VIEs |
|
$ |
53,361 |
Non-controlling interest in Consolidated VIEs |
|
$ |
32,383 |
Net equity investment |
|
$ |
367,055 |
(a) |
Included in other assets in the accompanying condensed consolidated
balance sheets. |
|
|
Consolidated SLST
We determined that Consolidated SLST is a VIE
and that we are the primary beneficiary of Consolidated SLST. As a
result, we are required to consolidate Consolidated SLST’s
underlying seasoned re-performing and non-performing residential
loans including its liabilities, income and expenses in our
condensed consolidated financial statements. We have elected the
fair value option on the assets and liabilities held within
Consolidated SLST, which requires that changes in valuations in the
assets and liabilities of Consolidated SLST be reflected in our
condensed consolidated statements of operations.
A reconciliation of our net interest income
generated by our Single-Family portfolio to our condensed
consolidated financial statements for the three months ended
March 31, 2022 is set forth below (dollar amounts in
thousands):
Interest income, residential loans |
|
$ |
41,467 |
|
Interest income, investment securities available for sale |
|
|
1,954 |
|
Interest income, Consolidated SLST |
|
|
9,380 |
|
Interest expense, Consolidated SLST CDOs |
|
|
(5,978 |
) |
Interest income, Single-Family, net |
|
|
46,823 |
|
Interest expense, repurchase agreements |
|
|
(5,519 |
) |
Interest expense, residential loan securitizations |
|
|
(7,456 |
) |
Net interest income, Single-Family |
|
$ |
33,848 |
|
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