New York Mortgage Trust Reports Fourth Quarter 2017 Results
Date : 02/20/2018 @ 4:01PM
Source : GlobeNewswire Inc.
Stock : New York Mortgage Trust, Inc. (NYMT)
Quote : 6.05 0.05 (0.83%) @ 8:00PM
New York Mortgage Trust Reports Fourth Quarter 2017 Results
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New York Mortgage Trust, Inc. (NASDAQ:NYMT)
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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, 2017.
Summary of Fourth Quarter 2017:
Net income attributable to common stockholders of $24.6 million, or $0.22 per share (basic), and comprehensive income to common stockholders of $21.0 million, or $0.19 per share.
Net interest income of $15.0 million and portfolio net interest margin of 239 basis points.
Book value per common share of $6.00 at December 31, 2017, delivering an economic return of 2.5% for the quarter ended December 31, 2017.
Issued 5.4 million shares of 8.00% Series D Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock ("Series D Preferred Stock") resulting in total net proceeds of approximately $130.5 million after deducting underwriting fees, commissions and offering expenses.
Sold distressed residential mortgage loans for aggregate proceeds of approximately $37.6 million, which resulted in a net realized gain, before income taxes, of approximately $6.2 million.
Purchased CMBS securities, including a first loss PO security issued by Freddie Mac-sponsored multi-family K-Series securitizations, for an aggregate gross purchase price of $58.7 million.
Purchased Agency-fixed rate RMBS for a gross purchase price of approximately $788.7 million.
Declared fourth quarter dividend of $0.20 per common share that was paid on January 25, 2018.
Highlights for Full Year 2017:
Net income attributable to common stockholders in 2017 of $76.3 million, or $0.68 per share (basic).
Net interest income of $58.0 million and portfolio net interest margin of 273 basis points.
Delivered economic return of 10.9% for the year ended December 31, 2017.
Declared aggregate 2017 dividends of $0.80 per common share.
Issued $138.0 million aggregate principal amount of convertible notes in a public offering resulting in net proceeds to the Company of approximately $127.0 million.
Purchased CMBS securities, including two first loss PO securities issued by Freddie Mac-sponsored multi-family K-Series securitizations, for an aggregate gross purchase price of approximately $171.2 million.
Funded in aggregate $60.3 million of preferred equity investments in owners of multi-family properties.
Sold distressed residential mortgage loans for aggregate proceeds of approximately $179.7 million resulting in a net realized gain, before income taxes, of approximately $28.0 million.
Management Overview
Steven Mumma, NYMT's Chairman and Chief Executive Officer, commented: “the Company had a good fourth quarter, generating $24.6 million in net income and delivering a 2.5% economic return. We benefited from continued credit spread tightening in our multi-family portfolio and solid execution in our distressed residential loan portfolio. The improved changes in credit spreads increased the valuation on our multi-family CMBS by $13.7 million, while our distressed residential loan strategy generated $6.2 million of realized gains on sales, before taxes, for the quarter, bringing the distressed residential loan portfolio’s contribution for the year to $28.0 million, up $11.3 million from the previous year.
In October, the Company completed a $135 million offering of its Series D Preferred Stock, which we believe will be accretive to our common stockholders. We invested approximately $52.3 million of the offering proceeds in structured multi-family property investments, with the balance of the proceeds invested in our Agency RMBS strategy. The Company was able to purchase a Freddie Mac K-Series first loss PO security and certain related IO securities for approximately $36.7 million in October, even though competition for credit assets continued to be very competitive. This is the second Freddie Mac K-Series investment we completed this year, bringing our 2017 investments in these securities to $102.1 million. The Company also expanded investment in its second lien program during the quarter, adding approximately $11.3 million of new loans. As mortgage rates rise, we expect this volume to increase further.
We expect to begin a non-QM first lien program during the first half of this year. We believe both the first lien non-QM and second lien programs will deliver more attractive returns in the current interest rate environment. The Company has approximately 78% of its capital allocated to credit strategies, which we believe will enable us to better manage the current interest rate environment. The Company is well positioned with liquidity and capital to continue to build its credit strategy into 2018.”
