New York Mortgage Trust, Inc. (Nasdaq: NYMT) (“NYMT,” the
“Company,” “we,” “our” or “us”) today reported results for the
three months ended June 30, 2022.
Summary of Second Quarter 2022: (dollar amounts
in thousands, except per share data)
|
Net loss attributable to Company's common stockholders |
$ |
(82,389 |
) |
| Net loss attributable to
Company's common stockholders per share (basic) |
$ |
(0.22 |
) |
| Undepreciated loss (1) |
$ |
(49,170 |
) |
| Undepreciated loss per common
share (1) |
$ |
(0.13 |
) |
| Comprehensive loss
attributable to Company's common stockholders |
$ |
(82,924 |
) |
| Comprehensive loss
attributable to Company's common stockholders per share
(basic) |
$ |
(0.22 |
) |
| Yield on average interest
earning assets |
|
6.69 |
% |
| Interest income |
$ |
68,020 |
|
| Interest expense |
$ |
41,891 |
|
| Net interest income |
$ |
26,129 |
|
| Portfolio net interest income
(1) |
$ |
41,437 |
|
| Portfolio net interest margin
(2) |
|
3.48 |
% |
| Book value per common share at
the end of the period |
$ |
4.06 |
|
| Undepreciated book value per
common share at the end of the period (1) |
$ |
4.24 |
|
| Economic return on book value
(3) |
|
(4.59 |
)% |
| Economic return on
undepreciated book value (4) |
|
(2.47 |
)% |
| 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 $773.6
million in residential loans and $59.5 million in single-family
rental properties.
- Funded multi-family joint venture
investments for approximately $57.1 million and received
approximately $11.0 million in proceeds from redemptions of
Mezzanine Lending investments.
Financing Activities
- Obtained $876.4 million of
financing for residential loans through recourse and non-recourse
repurchase agreements with new and existing counterparties.
- Repurchased 2.8 million shares of
common stock at an average repurchase price of $2.69 per
share.
Subsequent Developments:
- Subsequent to quarter end,
repurchased an additional 0.9 million shares of common stock at an
average repurchase price of $2.73 per share.
Management Overview
Jason Serrano, Chief Executive Officer and
President, commented: "Despite historical levels of volatility that
challenged the markets in the second quarter, the Company was able
to limit the decline in its undepreciated book value to 4.7%. The
bid for duration remains thin as buyers seemed to wait out the
market as spreads moved wider each month during the quarter. Our
increasing allocation to BPL bridge loans over the past year and a
half combined with our holding recourse leverage below 1x has
enabled our balance sheet to demonstrate resiliency through a
rapidly rising interest rate environment.
Against conforming mortgage rates, which ended
the second quarter just below 6%, housing fundamentals have
exhibited continued strength after several months of historic price
and rent growth, particularly in southern markets. However, the
market is clearly undergoing a seismic opportunity shift ushering
in a new paradigm. The premium priced loan markets that we saw
earlier in the year, largely due to remarkably efficient financing,
are no longer the norm. Today’s inefficient securitization
financing markets combined with markedly reduced loan demand will
provide new opportunities to take advantage of wider spreads.
We have patiently positioned the Company’s
balance sheet for high asset rotation and largely avoided vertical
integration asset strategies that depend on consistent financing
availability. Because of this, we are able to focus on secondary
market investments without concern for the uncertainty of managing
operating costs associated with an origination business. We believe
there is an extraordinary opportunity for us in the current
environment to create long-term value for our stockholders and we
are energized to unlock that value behind our highly experienced
asset management team."
Capital Allocation
The following tables set forth, by investment
category, our allocated capital at June 30, 2022, our
portfolio interest income, portfolio interest expense and portfolio
net interest income, and the average yield, average portfolio
financing cost and portfolio net interest margin for our average
interest earning assets for the three months ended June 30,
2022 (dollar amounts in thousands):
| |
Single-Family (1) |
|
Multi-Family |
|
Other |
|
Total |
|
Residential loans |
$ |
4,329,192 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
4,329,192 |
|
| Consolidated SLST CDOs |
|
(710,233 |
) |
|
|
— |
|
|
|
— |
|
|
|
(710,233 |
) |
| Multi-family loans |
|
— |
|
|
|
106,825 |
|
|
|
— |
|
|
|
106,825 |
|
| Investment securities
available for sale |
|
74,822 |
|
|
|
30,096 |
|
|
|
35,588 |
|
|
|
140,506 |
|
| Equity investments |
|
— |
|
|
|
189,773 |
|
|
|
33,878 |
|
|
|
223,651 |
|
| Equity investments in
consolidated multi-family properties (2) |
|
— |
|
|
|
387,797 |
|
|
|
— |
|
|
|
387,797 |
|
| Single-family rental
properties |
|
142,848 |
|
|
|
— |
|
|
|
— |
|
|
|
142,848 |
|
| Total investment portfolio
carrying value |
|
3,836,629 |
|
|
|
714,491 |
|
|
|
69,466 |
|
|
|
4,620,586 |
|
| Liabilities: |
|
|
|
|
|
|
|
|
Repurchase agreements |
|
(1,678,195 |
) |
|
|
(15,681 |
) |
|
|
— |
|
|
|
(1,693,876 |
) |
|
Residential loan securitization CDOs |
|
(1,107,091 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1,107,091 |
) |
|
Senior unsecured notes |
|
— |
|
|
|
— |
|
|
|
(97,039 |
) |
|
|
(97,039 |
) |
|
Subordinated debentures |
|
— |
|
|
|
— |
|
|
|
(45,000 |
) |
|
|
(45,000 |
) |
| Cash, cash equivalents and
restricted cash (3) |
|
141,689 |
|
|
|
— |
|
|
|
369,679 |
|
|
|
511,368 |
|
| Other |
|
(44,898 |
) |
|
|
(6,253 |
) |
|
|
(44,806 |
) |
|
|
(95,957 |
) |
| Net Company capital
allocated |
$ |
1,148,134 |
|
|
$ |
692,557 |
|
|
$ |
252,300 |
|
|
$ |
2,092,991 |
|
| |
|
|
|
|
|
|
|
|
|
| Company Recourse Leverage
Ratio (4) |
|
|
|
|
|
|
|
0.7 |
x |
| Portfolio Recourse Leverage
Ratio (5) |
|
|
|
|
|
|
|
0.6 |
x |
|
(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 primarily 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 June 30, 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 $208.6 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 $38.2 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 recourse repurchase
agreement financing, subordinated debentures and senior unsecured
notes divided by the Company's total stockholders' equity. Does not
include repurchase agreement financing amounting to $400.8 million,
Consolidated SLST CDOs amounting to $710.2 million, residential
loan securitization CDOs amounting to $1.1 billion and mortgages
payable on real estate amounting to $1.3 billion as they are
non-recourse debt. |
| (5) |
Represents the Company's outstanding recourse repurchase agreement
financing divided by the Company’s total stockholders’ equity. |
| Portfolio Net Interest
Income - Three Months Ended June 30, 2022: |
Single-Family (8) |
|
Multi-Family |
|
Other |
|
Total |
|
Portfolio Interest Income (1)(2) |
$ |
56,260 |
|
|
$ |
3,258 |
|
|
$ |
2,294 |
|
|
$ |
61,812 |
|
| Portfolio Interest Expense
(1) |
|
(20,264 |
) |
|
|
(111 |
) |
|
|
— |
|
|
|
(20,375 |
) |
| Portfolio Net Interest Income
(1) |
$ |
35,996 |
|
|
$ |
3,147 |
|
|
$ |
2,294 |
|
|
$ |
41,437 |
|
| |
|
|
|
|
|
|
|
| Portfolio Net Interest
Margin - Three Months Ended June 30, 2022: |
|
|
|
|
|
|
|
| Average Interest Earning
Assets (3) |
$ |
3,535,569 |
|
|
$ |
137,333 |
|
|
$ |
21,177 |
|
|
$ |
3,694,079 |
|
| Average Interest Bearing
Liabilities (4) |
$ |
2,498,132 |
|
|
$ |
16,591 |
|
|
|
— |
|
|
$ |
2,514,723 |
|
| |
|
|
|
|
|
|
|
| Yield on Average Interest
Earning Assets (5) |
|
6.37 |
% |
|
|
9.49 |
% |
|
|
43.33 |
% |
|
|
6.69 |
% |
| Average Portfolio Financing
Cost (6) |
|
(3.21 |
)% |
|
|
(2.65 |
)% |
|
|
— |
|
|
|
(3.21 |
)% |
| Portfolio Net Interest Margin
(7) |
|
3.16 |
% |
|
|
6.84 |
% |
|
|
43.33 |
% |
|
|
3.48 |
% |
|
(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) |
Includes interest income earned on cash accounts held by the
Company. |
| (3) |
Average Interest Earning Assets is calculated based on the daily
average amortized cost for the respective periods and excludes all
Consolidated SLST assets other than those securities owned by the
Company. |
| (4) |
Average Interest Bearing Liabilities is calculated each quarter
based on the daily average outstanding balance for the respective
periods and excludes our Consolidated SLST CDOs, subordinated
debentures, convertible notes, senior unsecured notes and mortgages
payable on real estate as these liabilities do not directly and
exclusively finance our interest earning assets. |
| (5) |
Yield on Average Interest Earning Assets is calculated by dividing
our annualized portfolio interest income (a supplemental non-GAAP
financial measure) relating to our interest earning assets by our
Average Interest Earning Assets for the respective periods. |
| (6) |
Average Portfolio Financing Cost is calculated by dividing our
annualized portfolio interest expense (a supplemental non-GAAP
financial measure) by our Average Interest Bearing
Liabilities. |
| (7) |
Portfolio Net Interest Margin is the difference between our Yield
on Average Interest Earning Assets and our Average Portfolio
Financing Cost. |
| (8) |
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.
Portfolio interest income amounts represent interest income earned
by securities that are owned by the Company. A reconciliation of
portfolio net interest income from the Single-Family portfolio to
the condensed consolidated financial statements is included below
in "Reconciliation of Financial Information." |
Conference Call
On Wednesday, August 3, 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 six months ended
June 30, 2022. To access the conference call, please
pre-register using this link. Registrants will receive confirmation
with dial-in details. A live audio webcast of the conference call
can be accessed via the Internet, on a listen-only basis, at the
Investor Relations section of the Company's website at
http://www.nymtrust.com or using this link. Please allow extra
time, prior to the call, to visit the site and download the
necessary software to listen to the Internet broadcast. A webcast
replay link of the conference call will be available on the
Investor Relations section of the Company’s website approximately
two hours after the call and will be available for 12 months.
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. Second quarter 2022 financial
and operating data can be viewed in the Company’s Quarterly Report
on Form 10-Q for the quarter ended June 30, 2022, which is
expected to be filed with the Securities and Exchange Commission on
or about August 4, 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, the
Company's residential loans held in securitization trusts and a
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)
| |
June 30, 2022 |
|
December 31, 2021 |
| |
(unaudited) |
|
|
|
ASSETS |
|
|
|
|
Residential loans, at fair value |
$ |
4,329,192 |
|
|
$ |
3,575,601 |
|
| Multi-family loans, at fair
value |
|
106,825 |
|
|
|
120,021 |
|
| Investment securities
available for sale, at fair value |
|
140,506 |
|
|
|
200,844 |
|
| Equity investments, at fair
value |
|
223,651 |
|
|
|
239,631 |
|
| Cash and cash equivalents |
|
407,104 |
|
|
|
289,602 |
|
| Real estate, net |
|
1,792,320 |
|
|
|
1,017,583 |
|
| Other assets |
|
299,938 |
|
|
|
215,019 |
|
| Total Assets
(1) |
$ |
7,299,536 |
|
|
$ |
5,658,301 |
|
|
LIABILITIES AND EQUITY |
|
|
|
|
Liabilities: |
|
|
|
| Repurchase agreements |
$ |
1,693,876 |
|
|
$ |
554,259 |
|
| Collateralized debt
obligations ($710,233 at fair value and $1,107,091 at amortized
cost, net as of June 30, 2022 and $839,419 at fair value and
$682,802 at amortized cost, net as of December 31, 2021) |
|
1,817,324 |
|
|
|
1,522,221 |
|
| Convertible notes |
|
— |
|
|
|
137,898 |
|
| Senior unsecured notes |
|
97,039 |
|
|
|
96,704 |
|
| Subordinated debentures |
|
45,000 |
|
|
|
45,000 |
|
| Mortgages payable on real
estate, net |
|
1,251,059 |
|
|
|
709,356 |
|
| Other liabilities |
|
231,066 |
|
|
|
161,081 |
|
| Total
liabilities (1) |
|
5,135,364 |
|
|
|
3,226,519 |
|
| |
|
|
|
| Commitments and
Contingencies |
|
|
|
| |
|
|
|
| Redeemable
Non-Controlling Interest in Consolidated Variable Interest
Entities |
|
37,101 |
|
|
|
66,392 |
|
| |
|
|
|
| Stockholders'
Equity: |
|
|
|
| Preferred stock, par value
$0.01 per share, 31,500,000 and 29,500,000 shares authorized as of
June 30, 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, 378,647,371 and
379,405,240 shares issued and outstanding as of June 30, 2022
and December 31, 2021, respectively |
|
3,786 |
|
|
|
3,794 |
|
| Additional paid-in
capital |
|
2,354,377 |
|
|
|
2,356,576 |
|
| Accumulated other
comprehensive (loss) income |
|
(945 |
) |
|
|
1,778 |
|
| Accumulated deficit |
|
(802,448 |
) |
|
|
(559,338 |
) |
| Company's
stockholders' equity |
|
2,092,991 |
|
|
|
2,341,031 |
|
| Non-controlling interest in
consolidated variable interest entities |
|
34,080 |
|
|
|
24,359 |
|
| Total
equity |
|
2,127,071 |
|
|
|
2,365,390 |
|
| Total Liabilities and
Equity |
$ |
7,299,536 |
|
|
$ |
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
June 30, 2022 and December 31, 2021, assets of
consolidated VIEs totaled $3,952,609 and $2,940,513, respectively,
and the liabilities of consolidated VIEs totaled $3,141,474 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 EndedJune
30, |
|
For the Six Months EndedJune
30, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
| NET INTEREST INCOME: |
|
|
|
|
|
|
|
|
Interest income |
$ |
68,020 |
|
|
$ |
52,186 |
|
|
$ |
126,521 |
|
|
$ |
102,225 |
|
|
Interest expense |
|
41,891 |
|
|
|
20,711 |
|
|
|
70,513 |
|
|
|
40,410 |
|
|
Total net interest income |
|
26,129 |
|
|
|
31,475 |
|
|
|
56,008 |
|
|
|
61,815 |
|
| |
|
|
|
|
|
|
|
| NON-INTEREST (LOSS)
INCOME: |
|
|
|
|
|
|
|
|
Realized gains, net |
|
2,386 |
|
|
|
4,989 |
|
|
|
6,192 |
|
|
|
12,047 |
|
|
Unrealized (losses) gains, net |
|
(67,694 |
) |
|
|
23,854 |
|
|
|
(151,353 |
) |
|
|
50,020 |
|
|
Income from equity investments |
|
8,100 |
|
|
|
10,607 |
|
|
|
14,153 |
|
|
|
14,006 |
|
|
Income from real estate |
|
35,870 |
|
|
|
2,150 |
|
|
|
61,458 |
|
|
|
3,645 |
|
|
Other income |
|
1,105 |
|
|
|
1,676 |
|
|
|
2,531 |
|
|
|
3,278 |
|
|
Total non-interest (loss) income |
|
(20,233 |
) |
|
|
43,276 |
|
|
|
(67,019 |
) |
|
|
82,996 |
|
| |
|
|
|
|
|
|
|
| GENERAL, ADMINISTRATIVE AND
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
General and administrative expenses |
|
13,175 |
|
|
|
12,520 |
|
|
|
27,533 |
|
|
|
23,961 |
|
|
Expenses related to real estate |
|
70,759 |
|
|
|
3,913 |
|
|
|
118,748 |
|
|
|
6,837 |
|
|
Portfolio operating expenses |
|
12,690 |
|
|
|
6,688 |
|
|
|
22,179 |
|
|
|
11,518 |
|
|
Total general, administrative and operating expenses |
|
96,624 |
|
|
|
23,121 |
|
|
|
168,460 |
|
|
|
42,316 |
|
| |
|
|
|
|
|
|
|
| (LOSS) INCOME FROM OPERATIONS
BEFORE INCOME TAXES |
|
(90,728 |
) |
|
|
51,630 |
|
|
|
(179,471 |
) |
|
|
102,495 |
|
| Income tax expense |
|
90 |
|
|
|
15 |
|
|
|
67 |
|
|
|
81 |
|
| |
|
|
|
|
|
|
|
| NET (LOSS) INCOME |
|
(90,818 |
) |
|
|
51,615 |
|
|
|
(179,538 |
) |
|
|
102,414 |
|
| Net loss attributable to
non-controlling interest in consolidated variable interest
entities |
|
18,922 |
|
|
|
1,625 |
|
|
|
33,792 |
|
|
|
3,034 |
|
| NET (LOSS) INCOME ATTRIBUTABLE
TO COMPANY |
|
(71,896 |
) |
|
|
53,240 |
|
|
|
(145,746 |
) |
|
|
105,448 |
|
| Preferred stock dividends |
|
(10,493 |
) |
|
|
(10,296 |
) |
|
|
(20,986 |
) |
|
|
(20,593 |
) |
| NET (LOSS) INCOME ATTRIBUTABLE
TO COMPANY'S COMMON STOCKHOLDERS |
$ |
(82,389 |
) |
|
$ |
42,944 |
|
|
$ |
(166,732 |
) |
|
$ |
84,855 |
|
| |
|
|
|
|
|
|
|
| Basic (loss) earnings per
common share |
$ |
(0.22 |
) |
|
$ |
0.11 |
|
|
$ |
(0.44 |
) |
|
$ |
0.22 |
|
| Diluted (loss) earnings per
common share |
$ |
(0.22 |
) |
|
$ |
0.11 |
|
|
$ |
(0.44 |
) |
|
$ |
0.22 |
|
| Weighted average shares
outstanding-basic |
|
381,200 |
|
|
|
379,299 |
|
|
|
380,999 |
|
|
|
379,091 |
|
| Weighted average shares
outstanding-diluted |
|
381,200 |
|
|
|
381,517 |
|
|
|
380,999 |
|
|
|
381,167 |
|
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 |
| |
June 30,2022 |
|
March 31,2022 |
|
December 31,2021 |
|
September 30,2021 |
|
June 30,2021 |
|
Interest income |
$ |
68,020 |
|
|
$ |
58,501 |
|
|
$ |
52,318 |
|
|
$ |
52,323 |
|
|
$ |
52,186 |
|
| Interest expense |
|
41,891 |
|
|
|
28,622 |
|
|
|
21,546 |
|
|
|
21,292 |
|
|
|
20,711 |
|
| Total net interest income |
|
26,129 |
|
|
|
29,879 |
|
|
|
30,772 |
|
|
|
31,031 |
|
|
|
31,475 |
|
| Total non-interest (loss)
income |
|
(20,233 |
) |
|
|
(46,784 |
) |
|
|
39,333 |
|
|
|
49,412 |
|
|
|
43,276 |
|
| Total general, administrative
and operating expenses |
|
96,624 |
|
|
|
71,836 |
|
|
|
34,063 |
|
|
|
28,046 |
|
|
|
23,121 |
|
| (Loss) income from operations
before income taxes |
|
(90,728 |
) |
|
|
(88,741 |
) |
|
|
36,042 |
|
|
|
52,397 |
|
|
|
51,630 |
|
| Income tax expense
(benefit) |
|
90 |
|
|
|
(22 |
) |
|
|
1,162 |
|
|
|
1,215 |
|
|
|
15 |
|
| Net (loss) income |
|
(90,818 |
) |
|
|
(88,719 |
) |
|
|
34,880 |
|
|
|
51,182 |
|
|
|
51,615 |
|
| Net loss attributable to
non-controlling interest in consolidated variable interest
entities |
|
18,922 |
|
|
|
14,869 |
|
|
|
1,296 |
|
|
|
394 |
|
|
|
1,625 |
|
| Net (loss) income attributable
to Company |
|
(71,896 |
) |
|
|
(73,850 |
) |
|
|
36,176 |
|
|
|
51,576 |
|
|
|
53,240 |
|
| Preferred stock dividends |
|
(10,493 |
) |
|
|
(10,493 |
) |
|
|
(10,994 |
) |
|
|
(11,272 |
) |
|
|
(10,296 |
) |
| Preferred stock redemption
charge |
|
— |
|
|
|
— |
|
|
|
(2,722 |
) |
|
|
(3,443 |
) |
|
|
— |
|
| Net (loss) income attributable
to Company's common stockholders |
|
(82,389 |
) |
|
|
(84,343 |
) |
|
|
22,460 |
|
|
|
36,861 |
|
|
|
42,944 |
|
| Basic (loss) earnings per
common share |
$ |
(0.22 |
) |
|
$ |
(0.22 |
) |
|
$ |
0.06 |
|
|
$ |
0.10 |
|
|
$ |
0.11 |
|
| Diluted (loss) earnings per
common share |
$ |
(0.22 |
) |
|
$ |
(0.22 |
) |
|
$ |
0.06 |
|
|
$ |
0.10 |
|
|
$ |
0.11 |
|
| Weighted average shares
outstanding - basic |
|
381,200 |
|
|
|
380,795 |
|
|
|
379,346 |
|
|
|
379,395 |
|
|
|
379,299 |
|
| Weighted average shares
outstanding - diluted |
|
381,200 |
|
|
|
380,795 |
|
|
|
380,551 |
|
|
|
380,983 |
|
|
|
381,517 |
|
| |
|
|
|
|
|
|
|
|
|
| Yield on average interest
earning assets |
|
6.69 |
% |
|
|
6.80 |
% |
|
|
6.57 |
% |
|
|
6.39 |
% |
|
|
6.31 |
% |
| Portfolio net interest income
(1) |
$ |
41,437 |
|
|
$ |
39,536 |
|
|
$ |
37,722 |
|
|
$ |
37,044 |
|
|
$ |
36,288 |
|
| Portfolio net interest
margin |
|
3.48 |
% |
|
|
3.87 |
% |
|
|
3.63 |
% |
|
|
3.25 |
% |
|
|
2.97 |
% |
| Undepreciated (loss) earnings
(1) |
$ |
(49,170 |
) |
|
$ |
(64,205 |
) |
|
$ |
31,045 |
|
|
$ |
42,190 |
|
|
$ |
44,021 |
|
| Undepreciated (loss) earnings
per common share (1) |
$ |
(0.13 |
) |
|
$ |
(0.17 |
) |
|
$ |
0.08 |
|
|
$ |
0.11 |
|
|
$ |
0.12 |
|
| Book value per common
share |
$ |
4.06 |
|
|
$ |
4.36 |
|
|
$ |
4.70 |
|
|
$ |
4.74 |
|
|
$ |
4.74 |
|
| Undepreciated book value per
common share (1) |
$ |
4.24 |
|
|
$ |
4.45 |
|
|
$ |
4.74 |
|
|
$ |
4.76 |
|
|
$ |
4.75 |
|
| |
|
|
|
|
|
|
|
|
|
| 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 |
|
| Dividends declared per
preferred share on Series C Preferred Stock (2) |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
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 |
|
|
$ |
0.43 |
|
|
$ |
0.47 |
|
|
$ |
— |
|
| Dividends declared per
preferred share on Series G Preferred Stock (4) |
$ |
0.44 |
|
|
$ |
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, undepreciated
book value per common share, portfolio interest income, portfolio
interest expense and portfolio net interest income.. 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 and trends using the same metrics that
management uses to operate our 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 or the supplemental financial presentation 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 |
| |
June 30,2022 |
|
March 31,2022 |
|
December 31,2021 |
|
September 30,2021 |
|
June 30,2021 |
|
Net (loss) income attributable to Company's common
stockholders |
$ |
(82,389 |
) |
|
$ |
(84,343 |
) |
|
$ |
22,460 |
|
$ |
36,861 |
|
$ |
42,944 |
| Add: |
|
|
|
|
|
|
|
|
|
|
Depreciation expense on operating real estate |
|
10,309 |
|
|
|
6,159 |
|
|
|
2,237 |
|
|
1,655 |
|
|
296 |
|
Amortization of lease intangibles related to operating real
estate |
|
22,910 |
|
|
|
13,979 |
|
|
|
6,348 |
|
|
3,674 |
|
|
781 |
| Undepreciated (loss)
earnings |
$ |
(49,170 |
) |
|
$ |
(64,205 |
) |
|
$ |
31,045 |
|
$ |
42,190 |
|
$ |
44,021 |
| |
|
|
|
|
|
|
|
|
|
| Weighted average shares
outstanding - basic |
|
381,200 |
|
|
|
380,795 |
|
|
|
379,346 |
|
|
379,395 |
|
|
379,299 |
| Undepreciated (loss) earnings
per common share |
$ |
(0.13 |
) |
|
$ |
(0.17 |
) |
|
$ |
0.08 |
|
$ |
0.11 |
|
$ |
0.12 |
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 overall 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):
| |
June 30,2022 |
|
March 31,2022 |
|
December 31,2021 |
|
September 30,2021 |
|
June 30,2021 |
|
Company's stockholders' equity |
$ |
2,092,991 |
|
|
$ |
2,217,618 |
|
|
$ |
2,341,031 |
|
|
$ |
2,357,793 |
|
|
$ |
2,321,161 |
|
| Preferred stock liquidation
preference |
|
(557,125 |
) |
|
|
(557,125 |
) |
|
|
(557,125 |
) |
|
|
(561,027 |
) |
|
|
(521,822 |
) |
| GAAP book value |
|
1,535,866 |
|
|
|
1,660,493 |
|
|
|
1,783,906 |
|
|
|
1,796,766 |
|
|
|
1,799,339 |
|
| Add: |
|
|
|
|
|
|
|
|
|
|
Cumulative depreciation expense on operating real estate |
|
20,081 |
|
|
|
9,772 |
|
|
|
4,381 |
|
|
|
2,144 |
|
|
|
489 |
|
|
Cumulative amortization of lease intangibles related to operating
real estate |
|
48,213 |
|
|
|
25,303 |
|
|
|
11,324 |
|
|
|
4,976 |
|
|
|
1,302 |
|
| Undepreciated book value |
$ |
1,604,160 |
|
|
$ |
1,695,568 |
|
|
$ |
1,799,611 |
|
|
$ |
1,803,886 |
|
|
$ |
1,801,130 |
|
| |
|
|
|
|
|
|
|
|
|
| Common shares outstanding |
|
378,647 |
|
|
|
381,249 |
|
|
|
379,405 |
|
|
|
379,286 |
|
|
|
379,372 |
|
| GAAP book value per common
share (1) |
$ |
4.06 |
|
|
$ |
4.36 |
|
|
$ |
4.70 |
|
|
$ |
4.74 |
|
|
$ |
4.74 |
|
| Undepreciated book value per
common share (2) |
$ |
4.24 |
|
|
$ |
4.45 |
|
|
$ |
4.74 |
|
|
$ |
4.76 |
|
|
$ |
4.75 |
|
|
(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. |
Portfolio Interest Income, Portfolio Interest
Expense and Portfolio Net Interest Income
The Company has determined it is the primary
beneficiary of Consolidated SLST and has consolidated Consolidated
SLST into the Company's condensed consolidated financial
statements. Our GAAP interest income includes interest income
recognized on the underlying seasoned re-performing and
non-performing residential loans held in Consolidated SLST. Our
GAAP interest expense includes interest expense recognized on the
Consolidated SLST CDOs that permanently finance the residential
loans in Consolidated SLST. We calculate portfolio interest income
(a supplemental non-GAAP financial measure) by reducing our GAAP
interest income by the interest expense recognized on the
Consolidated SLST CDOs, thus only including the interest income
earned by the SLST securities that are actually owned by the
Company.
We refer to GAAP interest expense, excluding
interest expense from Consolidated SLST CDOs, subordinated
debentures, convertible notes, senior unsecured notes and mortgages
payable on real estate, as portfolio interest expense (a
supplemental non-GAAP financial measure). Portfolio net interest
income is a supplemental non-GAAP financial measure defined as GAAP
net interest income excluding interest expense from subordinated
debentures, convertible notes, senior unsecured notes and mortgages
payable on real estate. As discussed above, we exclude the interest
expense recognized on the Consolidated SLST CDOs from GAAP interest
expense and instead reduce our GAAP interest income by the interest
expense recognized on the Consolidated SLST CDOs to reflect the
interest income earned by the SLST securities that are actually
owned by the Company. In addition, we exclude our unsecured
long-term debt and mortgages payable on real estate from GAAP
interest expense in our calculation of portfolio interest expense
and portfolio net interest income, the inclusion of which may
otherwise obscure underlying trends in our portfolio of interest
earning assets. We believe our calculation of these measures
provides investors and management with additional detail and
enhances their understanding of the performance of our interest
earning assets, the cost of financing attributable to the financing
instruments that directly and exclusively finance the Company’s
interest earning assets and underlying trends within our portfolio
of interest earning assets.
A reconciliation of GAAP interest income to
portfolio interest income, GAAP interest expense to portfolio
interest expense and GAAP total net interest income to portfolio
net interest income for the respective periods ended is presented
below (dollar amounts in thousands):
| |
For the Three Months Ended |
| |
June 30,2022 |
|
March 31,2022 |
|
December 31,2021 |
|
September 30,2021 |
|
June 30,2021 |
|
GAAP interest income |
$ |
68,020 |
|
$ |
58,501 |
|
$ |
52,318 |
|
$ |
52,323 |
|
$ |
52,186 |
| GAAP interest expense |
|
41,891 |
|
|
28,622 |
|
|
21,546 |
|
|
21,292 |
|
|
20,711 |
|
GAAP total net interest income |
$ |
26,129 |
|
$ |
29,879 |
|
$ |
30,772 |
|
$ |
31,031 |
|
$ |
31,475 |
| |
|
|
|
|
|
|
|
|
|
| GAAP interest income |
$ |
68,020 |
|
$ |
58,501 |
|
$ |
52,318 |
|
$ |
52,323 |
|
$ |
52,186 |
| Subtract interest expense
from: |
|
|
|
|
|
|
|
|
|
|
Consolidated SLST CDOs |
|
6,208 |
|
|
5,978 |
|
|
6,764 |
|
|
7,116 |
|
|
7,151 |
| Portfolio interest income |
$ |
61,812 |
|
$ |
52,523 |
|
$ |
45,554 |
|
$ |
45,207 |
|
$ |
45,035 |
| |
|
|
|
|
|
|
|
|
|
| GAAP interest expense |
$ |
41,891 |
|
$ |
28,622 |
|
$ |
21,546 |
|
$ |
21,292 |
|
$ |
20,711 |
| Subtract interest expense
from: |
|
|
|
|
|
|
|
|
|
|
Consolidated SLST CDOs |
|
6,208 |
|
|
5,978 |
|
|
6,764 |
|
|
7,116 |
|
|
7,151 |
|
Subordinated debentures |
|
550 |
|
|
459 |
|
|
457 |
|
|
458 |
|
|
459 |
|
Convertible notes |
|
— |
|
|
438 |
|
|
2,814 |
|
|
2,810 |
|
|
2,788 |
|
Senior unsecured notes |
|
1,607 |
|
|
1,603 |
|
|
1,601 |
|
|
1,598 |
|
|
1,136 |
|
Mortgages payable on real estate |
|
13,151 |
|
|
7,157 |
|
|
2,078 |
|
|
1,147 |
|
|
430 |
| Portfolio interest
expense |
$ |
20,375 |
|
$ |
12,987 |
|
$ |
7,832 |
|
$ |
8,163 |
|
$ |
8,747 |
| Portfolio net interest
income |
$ |
41,437 |
|
$ |
39,536 |
|
$ |
37,722 |
|
$ |
37,044 |
|
$ |
36,288 |
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 June 30, 2022 is shown
below (dollar amounts in thousands):
|
Cash and cash equivalents |
$ |
38,233 |
| Real estate, net |
|
1,649,472 |
| Lease intangible, net (a) |
|
18,924 |
| Other assets |
|
29,163 |
| Total assets |
$ |
1,735,792 |
| |
|
| Mortgages payable on real
estate, net |
$ |
1,251,059 |
| Other liabilities |
|
25,755 |
| Total liabilities |
$ |
1,276,814 |
| |
|
| Redeemable non-controlling
interest in Consolidated VIEs |
$ |
37,101 |
| Non-controlling interest in
Consolidated VIEs |
$ |
34,080 |
| Net equity investment |
$ |
387,797 |
(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 portfolio net interest
income generated by our Single-Family portfolio to our condensed
consolidated financial statements for the three months ended
June 30, 2022 is set forth below (dollar amounts in
thousands):
|
Interest income, residential loans |
$ |
51,522 |
|
| Interest income, investment
securities available for sale |
|
1,692 |
|
| Interest income, Consolidated
SLST |
|
9,254 |
|
| Interest expense, Consolidated
SLST CDOs |
|
(6,208 |
) |
| Portfolio interest income,
Single-Family |
|
56,260 |
|
| |
|
| Interest expense, repurchase
agreements |
|
(11,536 |
) |
| Interest expense, residential
loan securitizations |
|
(8,728 |
) |
| Portfolio interest expense,
Single-Family |
|
(20,264 |
) |
| |
|
| Portfolio net interest income,
Single-Family |
$ |
35,996 |
|
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