New York Mortgage Trust Announces Repositioning Away from Multi-Family Joint Venture Equity Portfolio
September 23 2022 - 5:28PM
New York Mortgage Trust, Inc. (Nasdaq: NYMT) (the “Company”)
announced today that its Board of Directors (the “Board”) has
approved a strategic repositioning of its business by
opportunistically disposing of the Company’s joint venture equity
interests in multi-family properties over time and reallocating its
capital away from such assets to its targeted assets.
The Company held $265.0 million in joint venture
equity interests in multi-family properties as of June 30, 2022,
representing 5.7% of its total investment portfolio. As of
September 22, 2022, the Company held $336.6 million in cash.
“Beginning in 2020, we saw an exciting
opportunity within the multi-family property sector to utilize our
sourcing network and add equity exposure to over 20 properties
through joint ventures,” said Jason Serrano, the Chief Executive
Officer and President of the Company. “Due to various
factors, the multi-family property sector recorded historical
increases in per unit rent in several targeted markets resulting in
opportunities that we believe will unlock value for our
stockholders on an accelerated timeline. Thus, we are
considering various opportunities to monetize what we believe is
appreciated value within our portfolio of multi-family joint
venture equity investments. We believe that through a
well-navigated disposition process and discontinuing capital
allocations to multi-family joint venture equity, we can rotate the
portfolio over time to investments in a higher rate
environment. While we will continue to invest in multi-family
mezzanine lending, we see these dispositions as an appropriate step
in the evolution of our portfolio positioning. We are excited
about the opportunity to simplify our business and take advantage
of other market dynamics that provide compelling risk-adjusted
returns.”
About New York Mortgage
TrustNew 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.
Forward-Looking StatementsWhen
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. Statements regarding the
following subject, among others, may be forward-looking: strategic
repositioning away from the Company’s multi-family joint venture
equity portfolio, unlocking value for stockholders and rotating the
portfolio to investments in a higher rate environment.
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 the Company’s
relationships with and/or the performance of its 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
AT THE COMPANYInvestor Relations Phone: 212-792-0107Email:
InvestorRelations@nymtrust.com
New York Mortgage (NASDAQ:NYMT)
Historical Stock Chart
From Jun 2024 to Jul 2024
New York Mortgage (NASDAQ:NYMT)
Historical Stock Chart
From Jul 2023 to Jul 2024