New York Mortgage Trust Provides Business Update as of April 7, 2020
April 07 2020 - 5:15PM
New York Mortgage Trust, Inc. (Nasdaq: NYMT) (the “Company”) today
announced the following updates with respect to its business.
“The Company continues to navigate the difficult
financial and economic environment resulting from the global
pandemic of the COVID-19 virus,” said Steven R. Mumma, the
Company’s Chairman and Chief Executive Officer. “Since March 30,
2020, the date of the Company’s last market update, the Company has
made significant progress in strengthening its liquidity position.
Due to this progress and certain of the portfolio management
decisions noted below, the Company is current with its repurchase
agreement payment obligations, including margin requirements, and
is no longer in a position to need forbearance agreements from its
repurchase agreement financing counterparties.”
The Company announced the following updates as
of the close of business on April 7, 2020:
- The Company has reduced its outstanding repurchase agreement
financing with respect to mortgage-backed securities (“MBS”) to
approximately $150 million with one counterparty.
- The continued reduction in the Company’s MBS repurchase
agreement financing exposure was achieved through a combination of
the sale of $291 million in MBS since March 27, 2020 and a $250
million increase in repurchase agreement financing with respect to
the Company’s residential mortgage loan portfolio. The increased
financing is collateralized by previously unencumbered residential
mortgage loans. The reduction in the Company’s repurchase agreement
financing for MBS significantly lowers the Company’s MBS
mark-to-market financing exposure, which was a primary factor in
the reduction of liquidity to mortgage REITs in recent
weeks.
- In addition to the $150 million of outstanding repurchase
agreement financing collateralized by non-Agency RMBS noted above,
the Company has approximately $962 million of outstanding
repurchase agreement financing secured by residential mortgage
loans, resulting in total outstanding repurchase agreement
financing of approximately $1.1 billion.
- The Company is current with all of its repurchase agreement
financing payment obligations including margin
requirements.
- The Company has a total investment portfolio of approximately
$3.0 billion, including approximately $1.1 billion of unencumbered
assets comprised primarily of $554 million of non-Agency RMBS, $276
million of CMBS and $272 million of residential mortgage loans, and
approximately $200 million in cash.
- The Company estimates that its total debt leverage ratio is 0.7
to 1.
“The Company also continues to explore term
financing options for the approximately $859 million of
unencumbered securities in its investment portfolio,” added Mr.
Mumma. “To the extent we are successful in obtaining term financing
for this portfolio, we believe such financing could enhance our
liquidity position and provide opportunities to invest in this new
operating landscape.”
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 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. Statements regarding the
following subjects, among others, may be forward-looking: the
availability of other financing options and whether such financing
options could enhance liquidity or provide opportunities to
invest. 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 COMPANYMari
Nitta Investor
Relations Phone:
646-795-4066Email: InvestorRelations@nymtrust.com
New York Mortgage (NASDAQ:NYMT)
Historical Stock Chart
From Aug 2024 to Sep 2024
New York Mortgage (NASDAQ:NYMT)
Historical Stock Chart
From Sep 2023 to Sep 2024