New York Mortgage Trust, Inc. (Nasdaq: NYMT) (“NYMT,” the
“Company,” “we,” “our” or “us”) today reported results for the
three and twelve months ended December 31, 2021.
| Summary of
Fourth Quarter and Full Year 2021: (dollar amounts in
thousands, except per share data) |
| |
| |
For the Three Months Ended December 31, 2021 |
|
For the Twelve Months Ended December 31, 2021 |
|
Net income attributable to Company's common stockholders |
$ |
22,460 |
|
|
$ |
144,176 |
|
| Net income attributable to
Company's common stockholders per share (basic) |
$ |
0.06 |
|
|
$ |
0.38 |
|
|
Undepreciated earnings (1) |
$ |
31,045 |
|
|
$ |
159,881 |
|
|
Undepreciated earnings per common share (1) |
$ |
0.08 |
|
|
$ |
0.42 |
|
|
Comprehensive income attributable to Company's common
stockholders |
$ |
22,197 |
|
|
$ |
144,960 |
|
| Comprehensive income
attributable to Company's common stockholders per share
(basic) |
$ |
0.06 |
|
|
$ |
0.38 |
|
|
Net interest income |
$ |
30,772 |
|
|
$ |
123,618 |
|
|
Portfolio net interest margin |
|
3.63 |
% |
|
|
3.07 |
% |
|
Book value per common share at the end of the period |
$ |
4.70 |
|
|
$ |
4.70 |
|
|
Undepreciated book value per common share at the end of the period
(1) |
$ |
4.74 |
|
|
$ |
4.74 |
|
|
Economic return on book value (2) |
|
1.27 |
% |
|
|
8.28 |
% |
|
Economic return on undepreciated book value (3) |
|
1.68 |
% |
|
|
9.13 |
% |
|
Dividends per common share |
$ |
0.10 |
|
|
$ |
0.40 |
|
|
(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) |
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. |
| (3) |
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:
Fourth Quarter Investing
Activities
- Purchased approximately $606.2
million in residential loans and received approximately $245.1
million in repayments.
- Sold investment securities for
aggregate proceeds of approximately $184.1 million.
- Funded multi-family joint venture
investments for approximately $123.1 million and mezzanine lending
investments in the amount of approximately $65.5 million.
Fourth Quarter Financing
Activities
- Issued 7.000% Series G Cumulative
Redeemable Preferred Stock for net proceeds of approximately $72.1
million and fully redeemed 7.750% Series B Cumulative Redeemable
Preferred Stock for approximately $80.0 million, lowering the cost
of capital represented by the redeemed shares by 75 basis
points.
Full Year 2021
Investing Activities
- Purchased approximately $1.6
billion in residential loans and received approximately $858.2
million in repayments and sales proceeds of approximately $77.1
million.
- Purchased approximately $53.7
million in investment securities and received approximately $432.6
million in sales proceeds.
- Funded multi-family joint venture
investments for approximately $198.5 million and mezzanine lending
investments for approximately $108.4 million. Received
approximately $96.0 million in proceeds from redemptions of
mezzanine lending investments.
Full Year 2021
Financing Activities
- Issued $100.0 million in aggregate
principal amount of 5.75% senior unsecured notes due April 2026 at
par.
- Completed a securitization of
bridge business purpose loans resulting in approximately $178.4
million of net proceeds to the Company, of which $117.1 million was
used to repay an outstanding repurchase agreement.
- Redeemed one of the Company's
residential loan securitizations with an outstanding balance of
$203.5 million at the time of redemption and completed a new
securitization of certain performing, re-performing and
non-performing residential loans resulting in approximately $254.9
million of net proceeds to the Company.
- Issued 6.875% Series F
Fixed-to-Floating-Rate Cumulative Redeemable Preferred Stock for
net proceeds of approximately $138.6 million and fully redeemed
7.875% Series C Cumulative Redeemable Preferred Stock for
approximately $104.9 million, lowering the cost of capital
represented by the redeemed shares by 100 basis points.
- Issued 7.000% Series G Cumulative
Redeemable Preferred Stock for net proceeds of approximately $72.1
million and fully redeemed 7.750% Series B Cumulative Redeemable
Preferred Stock for approximately $80.0 million, lowering the cost
of capital represented by the redeemed shares by 75 basis
points.
Subsequent Developments:
- Completed a securitization of
residential loans, resulting in approximately $286.3 million in net
proceeds to the Company after deducting estimated 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 $222.5 million
in net proceeds to the Company after deducting estimated expenses
associated with the transaction. The Company utilized the net
proceeds to repay approximately $121.1 million on an outstanding
repurchase agreement related to residential loans.
- Redeemed our convertible notes at
maturity for $138.0 million.
- The Company's Board of Directors
has authorized a share repurchase program for up to $200.0 million
of the Company's common stock.
Management Overview
Jason Serrano, Chief Executive Officer and
President, commented: “The Company’s investment portfolio was
transformed over the course of 2021 by our continued pursuit of
organically-sourced opportunities through proprietary loan and
joint venture pipelines. This strategic focus culminated in the
fourth quarter with record quarterly investment acquisitions and
fundings, portfolio yields at the highest level in nearly 10 years
and a stable book value. We believe a diversified portfolio growth
strategy centered around recurring income streams will provide
stability to earnings in 2022. With industry leading low Company
recourse leverage and flexibility aided by our low-cost operating
structure, we are taking a more offensive posture to pursue
opportunities in the higher rate environment for continued
portfolio growth. We believe this is the path to enhance
earnings.”
Capital Allocation
The following tables set forth, by investment
category, our allocated capital at December 31, 2021, 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
December 31, 2021 (dollar amounts in thousands):
|
|
Single-Family (1) |
|
Multi-Family |
|
Other |
|
Total |
|
Residential loans |
$ |
3,575,601 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3,575,601 |
|
| Consolidated SLST CDOs |
|
(839,419 |
) |
|
|
— |
|
|
|
— |
|
|
|
(839,419 |
) |
| Multi-family loans |
|
— |
|
|
|
120,021 |
|
|
|
— |
|
|
|
120,021 |
|
| Investment securities
available for sale |
|
128,019 |
|
|
|
33,146 |
|
|
|
39,679 |
|
|
|
200,844 |
|
| Equity investments |
|
— |
|
|
|
191,238 |
|
|
|
48,393 |
|
|
|
239,631 |
|
|
Equity investments in consolidated multi-family properties (2) |
|
— |
|
|
|
261,639 |
|
|
|
— |
|
|
|
261,639 |
|
|
Other investments (3) |
|
38,749 |
|
|
|
— |
|
|
|
— |
|
|
|
38,749 |
|
|
Total investment portfolio carrying value |
|
2,902,950 |
|
|
|
606,044 |
|
|
|
88,072 |
|
|
|
3,597,066 |
|
|
Liabilities: |
|
|
|
|
|
|
|
|
Repurchase agreements |
|
(554,259 |
) |
|
|
— |
|
|
|
— |
|
|
|
(554,259 |
) |
|
Residential loan securitization CDOs |
|
(682,802 |
) |
|
|
— |
|
|
|
— |
|
|
|
(682,802 |
) |
|
Convertible notes |
|
— |
|
|
|
— |
|
|
|
(137,898 |
) |
|
|
(137,898 |
) |
|
Senior unsecured notes |
|
— |
|
|
|
— |
|
|
|
(96,704 |
) |
|
|
(96,704 |
) |
|
Subordinated debentures |
|
— |
|
|
|
— |
|
|
|
(45,000 |
) |
|
|
(45,000 |
) |
|
Cash, cash equivalents and restricted cash (4) |
|
39,366 |
|
|
|
— |
|
|
|
260,279 |
|
|
|
299,645 |
|
|
Other |
|
29,612 |
|
|
|
(13,205 |
) |
|
|
(55,424 |
) |
|
|
(39,017 |
) |
|
Net Company capital allocated |
$ |
1,734,867 |
|
|
$ |
592,839 |
|
|
$ |
13,325 |
|
|
$ |
2,341,031 |
|
| |
|
|
|
|
|
|
|
|
Company Recourse Leverage Ratio (5) |
|
|
|
|
|
|
0.4x |
|
Portfolio Recourse Leverage Ratio (6) |
|
|
|
|
|
|
0.2x |
|
(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 consolidated financial statements. Consolidated SLST
is presented on our consolidated balance sheets as residential
loans, at fair value and collateralized debt obligations, at fair
value. Our investment in Consolidated SLST as of December 31,
2021 was limited to the RMBS comprised of first loss subordinated
securities and IOs issued by the securitization with an aggregate
net carrying value of $230.3 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 consolidated
financial statements is included below in "Reconciliation of
Financial Information." |
| (3) |
Represents the Company's
single-family rental properties. |
| (4) |
Excludes cash in the amount of
$30.1 million and restricted cash in the amount of $8.1 million
held in the Company's equity investments in consolidated
multi-family properties. Restricted cash is included in the
Company’s accompanying consolidated balance sheets in other
assets. |
| (5) |
Represents the Company's total
outstanding repurchase agreement financing, subordinated
debentures, convertible notes and senior unsecured notes divided by
the Company's total stockholders' equity. Does not include
Consolidated SLST CDOs amounting to $839.4 million, residential
loan securitization CDOs amounting to $682.8 million and mortgages
payable on real estate amounting to $709.4 million as they are
non-recourse debt for which the Company has no obligation. |
| (6) |
Represents the Company's
outstanding repurchase agreement financing divided by the Company’s
total stockholders’ equity. |
|
Net Interest Income - Three Months Ended December 31,
2021: |
Single-Family (1) |
|
Multi-Family |
|
Other |
|
Total |
|
Interest Income (2) |
$ |
40,073 |
|
|
$ |
3,767 |
|
|
$ |
1,714 |
|
|
$ |
45,554 |
|
|
Interest Expense |
|
(7,832 |
) |
|
|
— |
|
|
|
(6,950 |
) |
|
|
(14,782 |
) |
|
Net Interest Income (Expense) |
$ |
32,241 |
|
|
$ |
3,767 |
|
|
$ |
(5,236 |
) |
|
$ |
30,772 |
|
| |
|
|
|
|
|
|
|
|
Portfolio Net Interest Margin - Three Months Ended December
31, 2021: |
|
|
|
|
|
|
|
| Average Interest Earning
Assets (3) (4) |
$ |
2,590,388 |
|
|
$ |
158,424 |
|
|
$ |
23,328 |
|
|
$ |
2,772,140 |
|
| Average Yield on Interest
Earning Assets (5) |
|
6.19 |
% |
|
|
9.51 |
% |
|
|
29.39 |
% |
|
|
6.57 |
% |
| Average Portfolio Financing
Cost (6) |
|
(2.94 |
)% |
|
|
— |
|
|
|
— |
|
|
|
(2.94 |
)% |
| Portfolio Net Interest Margin
(7) |
|
3.25 |
% |
|
|
9.51 |
% |
|
|
29.39 |
% |
|
|
3.63 |
% |
|
(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 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 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) |
Average Yield on 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, $2.8 million, $1.6 million and $2.1 million,
respectively. |
| (7) |
Portfolio Net Interest Margin
is the difference between our Average Yield on 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. |
| |
|
Stock Repurchase Program
On February 15, 2022, the Company's Board of
Directors authorized a share repurchase program under which the
Company may repurchase up to $200.0 million of its common stock
through March 31, 2023. The stock repurchase program does not
require the purchase of any minimum number of shares. The timing
and extent to which the Company repurchases its shares will depend
upon, among other things, market conditions, share price,
liquidity, regulatory requirements and other factors, and
repurchases may be commenced or suspended at any time without prior
notice. Acquisitions under the share repurchase program may be made
in the open market, through privately negotiated transactions or
block trades or other means, in accordance with applicable
securities laws.
The Company intends to only consider
repurchasing shares of its common stock when the purchase price is
less than the last publicly reported book value per common share
and expects to fund the share repurchases from current
liquidity.
Conference Call
On Friday, February 18, 2022 at 9:00 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 and twelve months
ended December 31, 2021. The conference call dial-in number is
(877) 312-8806. The replay will be available until Friday, February
25, 2022 and can be accessed by dialing (855) 859-2056 and entering
passcode 6046509. 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. Full year 2021 financial and
operating data can be viewed in the Company’s Annual Report on Form
10-K for the year ended December 31, 2021, which is expected
to be filed with the Securities and Exchange Commission on or about
February 25, 2022. A copy of the Form 10-K 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. 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; “Agency CMBS” refers to CMBS representing interests in or
obligations backed by pools of multi-family mortgage loans
guaranteed by a GSE, such as Fannie Mae or Freddie Mac;
“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, multi-family loans
held in the Consolidated K-Series 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
K-Series” refers to Freddie Mac-sponsored multi-family loan
K-Series securitizations, of which we, or one of our special
purpose entities, owned the first loss PO securities and certain
IOs and certain senior or mezzanine securities issued by them, that
we 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 or delinquency and/or
decreased recovery rates on 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,
including changes resulting from the ongoing spread and economic
effects of COVID-19; 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: 212-792-0107Email:
InvestorRelations@nymtrust.com |
FINANCIAL TABLES FOLLOW
| |
|
NEW YORK MORTGAGE TRUST, INC. AND
SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(Dollar
amounts in thousands, except share data) |
| |
| |
December 31, 2021 |
|
December 31, 2020 |
| |
(unaudited) |
|
|
|
ASSETS |
|
|
|
|
Residential loans, at fair value |
$ |
3,575,601 |
|
|
$ |
3,049,166 |
|
| Multi-family loans, at fair
value |
|
120,021 |
|
|
|
163,593 |
|
| Investment securities
available for sale, at fair value |
|
200,844 |
|
|
|
724,726 |
|
| Equity investments, at fair
value |
|
239,631 |
|
|
|
259,095 |
|
|
Cash and cash equivalents |
|
289,602 |
|
|
|
293,183 |
|
|
Real estate, net |
|
1,017,583 |
|
|
|
50,532 |
|
|
Other assets |
|
198,416 |
|
|
|
115,292 |
|
|
Total Assets (1) |
$ |
5,641,698 |
|
|
$ |
4,655,587 |
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
Repurchase agreements |
$ |
554,259 |
|
|
$ |
405,531 |
|
| Collateralized debt
obligations ($839,419 at fair value and $682,802 at amortized cost,
net |
|
|
|
|
|
|
|
|
as of December 31, 2021 and $1,054,335 at fair value and
$569,323 at amortized cost, net as of December 31, 2020) |
|
1,522,221 |
|
|
|
1,623,658 |
|
|
Convertible notes |
|
137,898 |
|
|
|
135,327 |
|
|
Senior unsecured notes |
|
96,704 |
|
|
|
— |
|
|
Subordinated debentures |
|
45,000 |
|
|
|
45,000 |
|
|
Mortgages payable on real estate, net |
|
709,356 |
|
|
|
36,752 |
|
|
Other liabilities |
|
144,478 |
|
|
|
101,746 |
|
|
Total liabilities (1) |
|
3,209,916 |
|
|
|
2,348,014 |
|
| |
|
|
|
|
|
|
|
|
Commitments and Contingencies |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
Redeemable Non-Controlling Interest in Consolidated
Variable Interest Entities |
|
66,392 |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
Stockholders' Equity: |
|
|
|
|
|
|
|
| Preferred stock, par value
$0.01 per share, 29,500,000 and 30,900,000 shares
authorized |
|
|
|
|
|
|
|
|
as of December 31, 2021 and December 31, 2020,
respectively, 22,284,994 and 20,872,888 shares issued and
outstanding as of December 31, 2021 and December 31,
2020, respectively ($557,125 and $521,822 aggregate liquidation
preference as of December 31, 2021 and December 31, 2020,
respectively) |
|
538,221 |
|
|
|
504,765 |
|
| Common stock, par value $0.01
per share, 800,000,000 shares authorized, 379,405,240 |
|
|
|
|
|
|
|
|
and 377,744,476 shares issued and outstanding as of
December 31, 2021 and December 31, 2020,
respectively |
|
3,794 |
|
|
|
3,777 |
|
|
Additional paid-in capital |
|
2,356,576 |
|
|
|
2,342,934 |
|
|
Accumulated other comprehensive income |
|
1,778 |
|
|
|
994 |
|
|
Accumulated deficit |
|
(559,338 |
) |
|
|
(551,268 |
) |
|
Company's stockholders' equity |
|
2,341,031 |
|
|
|
2,301,202 |
|
|
Non-controlling interest in consolidated variable interest
entities |
|
24,359 |
|
|
|
6,371 |
|
|
Total equity |
|
2,365,390 |
|
|
|
2,307,573 |
|
|
Total Liabilities and Equity |
$ |
5,641,698 |
|
|
$ |
4,655,587 |
|
|
(1) |
Our
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 December 31, 2021
and December 31, 2020, assets of consolidated VIEs totaled
$2,924,678 and $2,150,984, respectively, and the liabilities of
consolidated VIEs totaled $2,219,830 and $1,667,306,
respectively. |
|
NEW YORK MORTGAGE TRUST, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF
OPERATIONS(Dollar amounts in thousands, except per share
data)(unaudited) |
| |
| |
|
For the Three Months EndedDecember
31, |
|
For the Years Ended December 31, |
|
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
NET INTEREST INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
$ |
52,318 |
|
|
$ |
46,220 |
|
|
$ |
206,866 |
|
|
$ |
350,161 |
|
|
Interest expense |
|
|
21,546 |
|
|
|
20,264 |
|
|
|
83,248 |
|
|
|
223,068 |
|
|
Total net interest income |
|
|
30,772 |
|
|
|
25,956 |
|
|
|
123,618 |
|
|
|
127,093 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST INCOME (LOSS): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized gains (losses), net |
|
|
1,090 |
|
|
|
1,861 |
|
|
|
21,451 |
|
|
|
(148,058 |
) |
|
Realized loss on de-consolidation of Consolidated K-Series |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(54,118 |
) |
|
Unrealized gains (losses), net |
|
|
15,491 |
|
|
|
52,549 |
|
|
|
95,649 |
|
|
|
(160,161 |
) |
|
Income from equity investments |
|
|
11,875 |
|
|
|
12,098 |
|
|
|
33,896 |
|
|
|
26,670 |
|
|
Impairment of goodwill |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(25,222 |
) |
|
Income from real estate |
|
|
7,605 |
|
|
|
419 |
|
|
|
15,230 |
|
|
|
419 |
|
|
Other income |
|
|
3,272 |
|
|
|
344 |
|
|
|
5,515 |
|
|
|
678 |
|
|
Total non-interest income (loss) |
|
|
39,333 |
|
|
|
67,271 |
|
|
|
171,741 |
|
|
|
(359,792 |
) |
| |
|
|
|
|
|
|
|
|
| GENERAL, ADMINISTRATIVE AND
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
General and administrative expenses |
|
|
12,489 |
|
|
|
9,656 |
|
|
|
48,908 |
|
|
|
42,228 |
|
|
Expenses related to real estate |
|
|
13,463 |
|
|
|
763 |
|
|
|
28,849 |
|
|
|
763 |
|
|
Portfolio operating expenses |
|
|
8,111 |
|
|
|
2,761 |
|
|
|
26,668 |
|
|
|
11,572 |
|
|
Total general, administrative and operating expenses |
|
|
34,063 |
|
|
|
13,180 |
|
|
|
104,425 |
|
|
|
54,563 |
|
| |
|
|
|
|
|
|
|
|
| INCOME (LOSS) FROM OPERATIONS
BEFORE INCOME TAXES |
|
|
36,042 |
|
|
|
80,047 |
|
|
|
190,934 |
|
|
|
(287,262 |
) |
|
Income tax expense |
|
|
1,162 |
|
|
|
65 |
|
|
|
2,458 |
|
|
|
981 |
|
| |
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) |
|
|
34,880 |
|
|
|
79,982 |
|
|
|
188,476 |
|
|
|
(288,243 |
) |
| Net loss (income) attributable
to non-controlling interest in consolidated variable interest
entities |
|
|
1,296 |
|
|
|
437 |
|
|
|
4,724 |
|
|
|
(267 |
) |
|
NET INCOME (LOSS) ATTRIBUTABLE TO COMPANY |
|
|
36,176 |
|
|
|
80,419 |
|
|
|
193,200 |
|
|
|
(288,510 |
) |
|
Preferred stock dividends |
|
|
(10,994 |
) |
|
|
(10,296 |
) |
|
|
(42,859 |
) |
|
|
(41,186 |
) |
|
Preferred stock redemption charge |
|
|
(2,722 |
) |
|
|
— |
|
|
|
(6,165 |
) |
|
|
— |
|
| NET INCOME (LOSS) ATTRIBUTABLE
TO COMPANY'S COMMON STOCKHOLDERS |
|
$ |
22,460 |
|
|
$ |
70,123 |
|
|
$ |
144,176 |
|
|
$ |
(329,696 |
) |
| |
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per common share |
|
$ |
0.06 |
|
|
$ |
0.19 |
|
|
$ |
0.38 |
|
|
$ |
(0.89 |
) |
|
Diluted earnings (loss) per common share |
|
$ |
0.06 |
|
|
$ |
0.18 |
|
|
$ |
0.38 |
|
|
$ |
(0.89 |
) |
|
Weighted average shares outstanding-basic |
|
|
379,346 |
|
|
|
377,744 |
|
|
|
379,232 |
|
|
|
371,004 |
|
|
Weighted average shares outstanding-diluted |
|
|
380,551 |
|
|
|
399,009 |
|
|
|
380,968 |
|
|
|
371,004 |
|
|
NEW YORK MORTGAGE TRUST, INC. AND
SUBSIDIARIESSUMMARY OF QUARTERLY EARNINGS(Dollar
amounts in thousands, except per share
data)(unaudited) |
|
|
| |
For the Three Months Ended |
| |
December 31, 2021 |
|
September 30, 2021 |
|
June 30, 2021 |
|
March 31, 2021 |
|
December 31, 2020 |
|
Total net interest income |
$ |
30,772 |
|
|
$ |
31,031 |
|
|
$ |
31,475 |
|
|
$ |
30,340 |
|
|
$ |
25,956 |
|
|
Total non-interest income |
|
39,333 |
|
|
|
49,412 |
|
|
|
43,276 |
|
|
|
39,720 |
|
|
|
67,271 |
|
| Total general, administrative
and operating expenses |
|
34,063 |
|
|
|
28,046 |
|
|
|
23,121 |
|
|
|
19,195 |
|
|
|
13,180 |
|
| Income from operations before
income taxes |
|
36,042 |
|
|
|
52,397 |
|
|
|
51,630 |
|
|
|
50,865 |
|
|
|
80,047 |
|
|
Income tax expense |
|
1,162 |
|
|
|
1,215 |
|
|
|
15 |
|
|
|
66 |
|
|
|
65 |
|
|
Net income |
|
34,880 |
|
|
|
51,182 |
|
|
|
51,615 |
|
|
|
50,799 |
|
|
|
79,982 |
|
| Net loss attributable to
non-controlling interest in consolidated variable interest
entities |
|
1,296 |
|
|
|
394 |
|
|
|
1,625 |
|
|
|
1,409 |
|
|
|
437 |
|
| Net income attributable to
Company |
|
36,176 |
|
|
|
51,576 |
|
|
|
53,240 |
|
|
|
52,208 |
|
|
|
80,419 |
|
|
Preferred stock dividends |
|
(10,994 |
) |
|
|
(11,272 |
) |
|
|
(10,296 |
) |
|
|
(10,297 |
) |
|
|
(10,296 |
) |
| Preferred stock redemption
charge |
|
(2,722 |
) |
|
|
(3,443 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Net income attributable to
Company's common stockholders |
|
22,460 |
|
|
|
36,861 |
|
|
|
42,944 |
|
|
|
41,911 |
|
|
|
70,123 |
|
|
Basic earnings per common share |
$ |
0.06 |
|
|
$ |
0.10 |
|
|
$ |
0.11 |
|
|
$ |
0.11 |
|
|
$ |
0.19 |
|
|
Diluted earnings per common share |
$ |
0.06 |
|
|
$ |
0.10 |
|
|
$ |
0.11 |
|
|
$ |
0.11 |
|
|
$ |
0.18 |
|
| Weighted average shares
outstanding - basic |
|
379,346 |
|
|
|
379,395 |
|
|
|
379,299 |
|
|
|
378,881 |
|
|
|
377,744 |
|
| Weighted average shares
outstanding - diluted |
|
380,551 |
|
|
|
380,983 |
|
|
|
381,517 |
|
|
|
380,815 |
|
|
|
399,009 |
|
| |
|
|
|
|
|
|
|
|
|
| Book value per common
share |
$ |
4.70 |
|
|
$ |
4.74 |
|
|
$ |
4.74 |
|
|
$ |
4.71 |
|
|
$ |
4.71 |
|
| |
|
|
|
|
|
|
|
|
|
|
Undepreciated earnings (1) |
$ |
31,045 |
|
|
$ |
42,190 |
|
|
$ |
44,022 |
|
|
$ |
42,625 |
|
|
$ |
70,123 |
|
|
Undepreciated earnings per common share (1) |
$ |
0.08 |
|
|
$ |
0.11 |
|
|
$ |
0.12 |
|
|
$ |
0.11 |
|
|
$ |
0.19 |
|
|
Undepreciated book value per common share (1) |
$ |
4.74 |
|
|
$ |
4.76 |
|
|
$ |
4.75 |
|
|
$ |
4.71 |
|
|
$ |
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 |
|
|
$ |
0.48 |
|
| Dividends declared per
preferred share on Series C Preferred Stock (3) |
$ |
— |
|
|
$ |
— |
|
|
$ |
0.49 |
|
|
$ |
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 (4) |
$ |
0.43 |
|
|
$ |
0.47 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
| Dividends declared per
preferred share on Series G Preferred Stock (5) |
$ |
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) |
In December 2021, the Company
redeemed all outstanding shares of its Series B Preferred Stock and
paid accumulated dividends up to, but not including, the redemption
date. |
| (3) |
In July 2021, the Company
redeemed all outstanding shares of its Series C Preferred Stock and
paid accumulated dividends up to, but not including, the redemption
date. |
| (4) |
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. |
| (5) |
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 Earnings
Undepreciated earnings is a supplemental
non-GAAP financial measure defined as GAAP net income (loss)
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 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 earnings enables our investors to measure, evaluate,
and compare our operating performance to that of our peers.
A reconciliation of net income (loss)
attributable to Company's common stockholders to undepreciated
earnings for the respective periods ended is presented below
(dollar amounts in thousands, except per share data).
| |
For the Twelve Months Ended, |
|
For the Three Months Ended |
| |
December 31, 2021 |
|
December 31, 2021 |
|
September 30, 2021 |
|
June 30, 2021 |
|
March 31, 2021 |
|
December 31, 2020 |
|
Net income attributable to Company's common stockholders |
$ |
144,176 |
|
$ |
22,460 |
|
$ |
36,861 |
|
$ |
42,944 |
|
$ |
41,911 |
|
$ |
70,123 |
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation expense on operating real estate |
|
4,381 |
|
|
2,237 |
|
|
1,655 |
|
|
296 |
|
|
193 |
|
|
— |
|
Amortization of lease intangibles related to operating real
estate |
|
11,324 |
|
|
6,348 |
|
|
3,674 |
|
|
781 |
|
|
521 |
|
|
— |
|
Undepreciated earnings |
$ |
159,881 |
|
$ |
31,045 |
|
$ |
42,190 |
|
$ |
44,021 |
|
$ |
42,625 |
|
$ |
70,123 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average shares
outstanding - basic |
|
379,232 |
|
|
379,346 |
|
|
379,395 |
|
|
379,299 |
|
|
378,881 |
|
|
377,744 |
| Undepreciated earnings per
common share |
$ |
0.42 |
|
$ |
0.08 |
|
$ |
0.11 |
|
$ |
0.12 |
|
$ |
0.11 |
|
$ |
0.19 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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. 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
(dollar amounts in thousands, except per share data).
| |
December 31, 2021 |
|
September 30, 2021 |
|
June 30, 2021 |
|
March 31, 2021 |
|
December 31, 2020 |
|
Company's stockholders' equity |
$ |
2,341,031 |
|
|
$ |
2,357,793 |
|
|
$ |
2,321,161 |
|
|
$ |
2,308,853 |
|
|
$ |
2,301,202 |
|
|
Preferred stock liquidation preference |
|
(557,125 |
) |
|
|
(561,027 |
) |
|
|
(521,822 |
) |
|
|
(521,822 |
) |
|
|
(521,822 |
) |
|
GAAP book value |
|
1,783,906 |
|
|
|
1,796,766 |
|
|
|
1,799,339 |
|
|
|
1,787,031 |
|
|
|
1,779,380 |
|
|
Add: |
|
|
|
|
|
|
|
|
|
|
Cumulative depreciation expense on operating real estate |
|
4,381 |
|
|
|
2,144 |
|
|
|
489 |
|
|
|
193 |
|
|
|
— |
|
|
Cumulative amortization of lease intangibles related to operating
real estate |
|
11,324 |
|
|
|
4,976 |
|
|
|
1,302 |
|
|
|
521 |
|
|
|
— |
|
|
Undepreciated book value |
$ |
1,799,611 |
|
|
$ |
1,803,886 |
|
|
$ |
1,801,130 |
|
|
$ |
1,787,745 |
|
|
$ |
1,779,380 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common shares outstanding |
|
379,405 |
|
|
|
379,286 |
|
|
|
379,372 |
|
|
|
379,273 |
|
|
|
377,744 |
|
| GAAP book value per common
share (1) |
$ |
4.70 |
|
|
$ |
4.74 |
|
|
$ |
4.74 |
|
|
$ |
4.71 |
|
|
$ |
4.71 |
|
| Undepreciated book value per
common share (2) |
$ |
4.74 |
|
|
$ |
4.76 |
|
|
$ |
4.75 |
|
|
$ |
4.71 |
|
|
$ |
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 the our 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 consolidated
financial statements as of December 31, 2021 is shown below
(dollar amounts in thousands):
|
Cash and cash equivalents |
|
$ |
30,130 |
|
Real estate, net |
|
|
978,834 |
|
Lease intangible, net (a) |
|
|
39,769 |
|
Other assets |
|
|
31,006 |
|
Total assets |
|
$ |
1,079,739 |
| |
|
|
|
Mortgages payable on real estate, net |
|
$ |
709,356 |
|
Other liabilities |
|
|
17,993 |
|
Total liabilities |
|
$ |
727,349 |
| |
|
|
|
Redeemable non-controlling interest in Consolidated VIEs |
|
$ |
66,392 |
|
Non-controlling interest in Consolidated VIEs |
|
$ |
24,359 |
|
Net equity investment |
|
$ |
261,639 |
(a) Included in other assets in the
accompanying consolidated balance sheets.
Consolidated SLST
We determined that Consolidated SLST is a
variable interest entity 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 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 consolidated statements of operations.
A reconciliation of our net interest income
generated by our Single-Family portfolio to our consolidated
financial statements for the three months ended December 31,
2021 is set forth below (dollar amounts in thousands):
|
Interest income, residential loans |
|
$ |
33,587 |
|
|
Interest income, investment securities available for sale |
|
|
3,348 |
|
|
Interest income, Consolidated SLST |
|
|
9,902 |
|
|
Interest expense, Consolidated SLST CDOs |
|
|
(6,764 |
) |
|
Interest income, Single-Family, net |
|
|
40,073 |
|
|
Interest expense, repurchase agreements |
|
|
(2,961 |
) |
|
Interest expense, residential loan securitizations |
|
|
(4,871 |
) |
|
Net interest income, Single-Family |
|
$ |
32,241 |
|
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