Summary of Third Quarter 2018:
- Earned net income attributable to common stockholders of
$28.0 million , or$0.21 per share (basic), and comprehensive income to common stockholders of$18.2 million , or$0.14 per share. - Earned net interest income of
$19.6 million and portfolio net interest margin of 255 basis points. - Recognized book value per common share of
$5.72 atSeptember 30, 2018 , a decrease of less than 1% fromJune 30, 2018 , resulting in an economic return of 2.8% for the quarter and an annualized economic return of 7.1% for the nine months endedSeptember 30, 2018 . - Declared third quarter dividend of
$0.20 per common share that was paid onOctober 26, 2018 . - Issued 14,375,000 shares of common stock through an underwritten public offering and 2,443,487 shares of common stock under our at-the-market equity offering program, resulting in total net proceeds to the Company of
$101.2 million . - Acquired residential and multi-family credit assets totaling
$161.5 million . - Sold residential mortgage loans, including distressed residential mortgage loans, for aggregate proceeds of approximately
$30.1 million .
Management Overview
The Company’s net interest margin improved 16 basis points to 255 basis points from the previous quarter. The improvement is largely attributable to our continued focus on credit sensitive assets in both residential and multi-family, adding
The Company sold distressed loans for total proceeds of
As we look at the fourth quarter of 2018, our pipeline for new investments is strong, with over
Capital Allocation
The following tables set forth our allocated capital by investment type at
| Capital Allocation at |
|||||||||||||||||||
| Agency RMBS(1) |
Multi- Family (2) |
Distressed Residential (3) |
Other (4) | Total | |||||||||||||||
| Carrying Value | $ | 1,055,433 | $ | 947,851 | $ | 474,717 | $ | 145,228 | $ | 2,623,229 | |||||||||
| Liabilities | |||||||||||||||||||
| Callable(5) | (852,325 | ) | (278,334 | ) | (141,396 | ) | (35,830 | ) | (1,307,885 | ) | |||||||||
| Non-Callable | — | (29,870 | ) | (23,727 | ) | (101,504 | ) | (155,101 | ) | ||||||||||
| Convertible | — | — | — | (130,251 | ) | (130,251 | ) | ||||||||||||
| Hedges (Net) (6) | 8,760 | — | — | — | 8,760 | ||||||||||||||
| Cash (7) | 10,554 | 1,992 | 7,478 | 45,744 | 65,768 | ||||||||||||||
| — | — | — | 25,222 | 25,222 | |||||||||||||||
| Other | 2,123 | (8,816 | ) | 18,783 | (33,143 | ) | (21,053 | ) | |||||||||||
| Net Capital Allocated | $ | 224,545 | $ | 632,823 | $ | 335,855 | $ | (84,534 | ) | $ | 1,108,689 | ||||||||
| % of Capital Allocated | 20.2 | % | 57.1 | % | 30.3 | % | (7.6 | )% | 100.0 | % | |||||||||
| Net Interest Income- Three Months Ended |
|||||||||||||||||||
| Interest Income | $ | 7,479 | $ | 19,668 | $ | 6,058 | $ | 1,899 | $ | 35,104 | |||||||||
| Interest Expense | (4,860 | ) | (4,047 | ) | (2,182 | ) | (4,412 | ) | (15,501 | ) | |||||||||
| Net Interest Income (Expense) | $ | 2,619 | $ | 15,621 | $ | 3,876 | $ | (2,513 | ) | $ | 19,603 | ||||||||
| Portfolio Net Interest Margin - Three Months Ended |
|||||||||||||||||||
| Average Interest Earning Assets (8) | $ | 1,121,180 | $ | 681,040 | $ | 456,240 | $ | 140,960 | $ | 2,399,420 | |||||||||
| Weighted Average Yield on Interest Earning Assets (9) | 2.67 | % | 11.55 | % | 5.31 | % | 5.39 | % | 5.85 | % | |||||||||
| Less: Average Cost of Funds (10) | (2.22 | )% | (5.04 | )% | (4.96 | )% | (4.19 | )% | (3.30 | )% | |||||||||
| Portfolio Net Interest Margin (11) | 0.45 | % | 6.51 | % | 0.35 | % | 1.20 | % | 2.55 | % | |||||||||
(1)
(2) The Company, through its ownership of certain securities, has determined it is the primary beneficiary of the Consolidated K-Series and has consolidated the Consolidated K-Series into the Company’s condensed consolidated financial statements. Carrying Value and Average Interest Earning Assets for the quarter exclude all Consolidated K-Series assets other than those securities actually owned by the Company. Interest income amounts represent interest income earned by securities that are actually owned by the Company. A reconciliation of net capital allocated to and net interest income from multi-family investments is included below in “Additional Information.”
(3) Includes
(4) Other includes residential mortgage loans held in securitization trusts amounting to
(5) Includes repurchase agreements.
(6) Includes derivative assets and variation margin.
(7) Includes
(8) Our Average Interest Earning Assets is calculated each quarter based on daily average amortized cost.
(9) Our Weighted Average Yield on Interest Earning Assets was calculated by dividing our annualized interest income for the quarter by our Average Interest Earning Assets for the quarter.
(10) Our Average Cost of Funds was calculated by dividing our annualized interest expense for the quarter by our average interest bearing liabilities, excluding our subordinated debentures and convertible notes, which generated interest expense of approximately
(11) Portfolio Net Interest Margin is the difference between our Weighted Average Yield on Interest Earning Assets and our Average Cost of Funds, excluding the weighted average cost of subordinated debentures and convertible notes.
Prepayment History
The following table sets forth the constant prepayment rates (“CPR”) for selected asset classes, by quarter, for the quarterly periods indicated.
| Quarter Ended | Agency Fixed-Rate RMBS |
Agency ARMs |
Residential Securitized Loans |
||||||
| 7.3 | % | 14.6 | % | 23.1 | % | ||||
| 5.9 | % | 16.3 | % | 20.1 | % | ||||
| 5.4 | % | 10.2 | % | 10.8 | % | ||||
| 6.3 | % | 12.9 | % | 22.1 | % | ||||
| 12.8 | % | 9.4 | % | 18.2 | % | ||||
Third Quarter Earnings Summary
For the quarter ended
We generated net interest income of
The main components of other income for the quarters ended
| Three Months Ended | ||||||||
| Other Income (Loss) | 2018 |
|||||||
| Recovery of loan losses | $ | 840 | $ | 437 | ||||
| Realized gain (loss) on investment securities and related hedges, net | 299 | (8,654 | ) | |||||
| Realized gain on distressed residential mortgage loans at carrying value, net | 1,806 | 2,021 | ||||||
| Net gain on residential mortgage loans at fair value | 643 | 97 | ||||||
| Unrealized gain on investment securities and related hedges, net | 2,275 | 12,606 | ||||||
| Unrealized gain on multi-family loans and debt held in securitization trusts, net | 12,303 | 12,019 | ||||||
| Income from operating real estate and real estate held for sale in consolidated variable interest entities | 1,380 | 1,253 | ||||||
| Other income | 4,757 | 228 | ||||||
| Total other income | $ | 24,303 | $ | 20,007 | ||||
For the quarter ended
- Unrealized gain of
$12.3 million on our Consolidated K-Series investments due to continued tightening of credit spreads from the previous quarter. - Total net gain of
$2.4 million from our residential mortgage loans, including distressed residential mortgage loans, primarily generated by sales during the period. - Other income of
$4.8 million primarily related to a$3.6 million valuation recovery from a joint venture equity investment and$1.2 million in income from other equity investments. - Unrealized gain of
$2.3 million from our interest rate swaps accounted for as trading instruments.
The change in net realized gain on investment securities and related hedges of
The following table details the general and administrative expenses for the quarters ended
| Three Months Ended | ||||||||
| General and Administrative Expenses | 2018 |
|||||||
| Salaries, benefits and directors’ compensation | $ | 4,219 | $ | 3,173 | ||||
| Base management and incentive fees | 844 | 809 | ||||||
| Other general and administrative expenses | 1,977 | 2,103 | ||||||
| Total general and administrative expenses | $ | 7,040 | $ | 6,085 | ||||
The change in general and administrative expenses is primarily related to the increase in salaries and benefits due to the increase in employee headcount as part of the internalization of our single family residential credit strategy. We expect the increase to be offset by a decrease in base management and incentive fees upon expiration of our external management agreement.
The following table sets out the operating expenses related to our distressed residential mortgage loans and the operating real estate and real estate held for sale in consolidated variable interest entities for the quarters ended
| Three Months Ended | ||||||||
| Operating Expenses | 2018 |
|||||||
| Expenses related to distressed residential mortgage loans | $ | 2,117 | $ | 1,811 | ||||
| Expenses related to operating real estate and real estate held for sale in consolidated variable interest entities | 755 | 873 | ||||||
| Total operating expenses | $ | 2,872 | $ | 2,684 | ||||
The increase in operating expenses in the third quarter can be primarily attributed to our distressed residential loan strategy, including due diligence expenses for loan purchases and appraisal costs related to loan sales.
The results of operations applicable to the operating real estate and real estate held for sale in consolidated variable interest entities included in the Company's condensed consolidated statements of operations for the three months ended
| Three Months Ended |
||||
| Income from operating real estate and real estate held for sale in consolidated variable interest entities | $ | 1,380 | ||
| Expenses related to operating real estate and real estate held for sale in consolidated variable interest entities | (755 | ) | ||
| Net income from operating real estate and real estate held for sale in consolidated variable interest entities | 625 | |||
| Net income from operating real estate and real estate held for sale in consolidated variable interest entities attributable to non-controlling interest | (517 | ) | ||
| Net income from operating real estate and real estate held for sale in consolidated variable interest entities attributable to Company's common stockholders | $ | 108 | ||
Analysis of Changes in Book Value
The following table analyzes the changes in book value of our common stock for the quarter ended
| Quarter Ended |
||||||||||||||||||||||
| Amount | Shares | Per Share(1) | ||||||||||||||||||||
| Beginning Balance | $ | 715,967 | 124,313 | $ | 5.76 | |||||||||||||||||
| Common stock issuance, net(2) | 101,795 | 16,902 | ||||||||||||||||||||
| Balance after share issuance activity | 817,762 | 141,215 | 5.79 | |||||||||||||||||||
| Dividends declared | (28,243 | ) | (0.20 | ) | ||||||||||||||||||
| Net change in accumulated other comprehensive income: | ||||||||||||||||||||||
| Investment securities (3) | (9,874 | ) | (0.07 | ) | ||||||||||||||||||
| Net income attributable to Company's common stockholders | 28,048 | 0.20 | ||||||||||||||||||||
| Ending Balance | $ | 807,693 | 141,215 | $ | 5.72 | |||||||||||||||||
(1) Outstanding shares used to calculate book value per share for the ending balance is based on outstanding shares as of
(2) Includes amortization of stock based compensation.
(3) The
Conference Call
On
Third quarter 2018 financial and operating data can be viewed in the Company’s Quarterly Report on Form 10-Q for the quarter ended
About
Defined Terms
The following defines certain of the commonly used terms in this press release: “RMBS” refers to residential mortgage-backed securities comprised of adjustable-rate, hybrid adjustable-rate, fixed-rate, interest only and inverse interest only, and principal only securities; “Agency RMBS” refers to RMBS representing interests in or obligations backed by pools of residential mortgage loans issued or guaranteed by a federally chartered corporation ("GSE"), such as the Federal National Mortgage Association (“Fannie Mae”) or the Federal Home Loan Mortgage Corporation (“Freddie Mac”), or an agency of the
Additional Information
We determined that the Consolidated K-Series were variable interest entities and that we are the primary beneficiary of the Consolidated K-Series. As a result, we are required to consolidate the Consolidated K-Series’ underlying multi-family loans including their liabilities, income and expenses in our condensed consolidated financial statements. We have elected the fair value option on the assets and liabilities held within the Consolidated K-Series, which requires that changes in valuations in the assets and liabilities of the Consolidated K-Series be reflected in our condensed consolidated statements of operations.
A reconciliation of our net capital allocated to multi-family investments to our condensed consolidated financial statements as of
| Multi-family loans held in securitization trusts, at fair value | $ | 10,070,834 | ||
| Multi-family CDOs, at fair value | (9,504,313 | ) | ||
| Net carrying value | 566,521 | |||
| Investment securities available for sale, at fair value | 133,511 | |||
| Total CMBS, at fair value | 700,032 | |||
| Preferred equity investments, mezzanine loans and investments in unconsolidated entities | 228,562 | |||
| Real estate under development (1) | 22,185 | |||
| Real estate held for sale in consolidated variable interest entities | 29,558 | |||
| Mortgages and notes payable in consolidated variable interest entities | (32,486 | ) | ||
| Financing arrangements, portfolio investments | (278,334 | ) | ||
| Securitized debt | (29,870 | ) | ||
| Cash and other | (6,824 | ) | ||
| $ | 632,823 | |||
(1) Included in the Company’s accompanying condensed consolidated balance sheets in receivables and other assets.
A reconciliation of our net interest income in multi-family investments to our condensed consolidated financial statements for the three months ended
| Three Months Ended |
|||||
| Interest income, multi-family loans held in securitization trusts | $ | 86,458 | |||
| Interest income, investment securities, available for sale (1) | 2,481 | ||||
| Interest income, preferred equity investments and mezzanine loans (1) | 5,874 | ||||
| Interest expense, multi-family collateralized debt obligation | (75,145 | ) | |||
| Interest income, Multi-Family, net | 19,668 | ||||
| Interest expense, investment securities, available for sale | (3,317 | ) | |||
| Interest expense, securitized debt | (730 | ) | |||
| Net interest income, Multi-Family | $ | 15,621 | |||
(1) Included in the Company’s accompanying condensed consolidated statements of operations in interest income, investment securities and other.
Cautionary Statement Regarding Forward-Looking Statements
When used in this press release, in future filings with the
Forward-looking statements are based on the Company’s beliefs, assumptions and expectations of its future performance, taking into account all information currently available to it. These beliefs, assumptions and expectations are subject to risks and uncertainties and can change as a result of many possible events or factors, not all of which are known to the Company. If a change occurs, the Company’s business, financial condition, liquidity and results of operations may vary materially from those expressed in its forward-looking statements. The following factors are examples of those that could cause actual results to vary from the Company’s forward-looking statements: changes in interest rates and the market value of the Company’s investments; changes in credit spreads; changes in the long-term credit ratings of the
For Further Information
| CONTACT: | AT THE COMPANY | |
|
|
||
| Chief Financial Officer | ||
| Phone: (646) 216-2363 | ||
| Email: [email protected] |
FINANCIAL TABLES FOLLOW
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands, except share data)
| (unaudited) | |||||||||||
| ASSETS | |||||||||||
| Investment securities, available for sale, at fair value (including pledged securities of |
$ | 1,287,188 | $ | 1,413,081 | |||||||
| Residential mortgage loans held in securitization trusts, net | 60,459 | 73,820 | |||||||||
| Residential mortgage loans, at fair value | 181,910 | 87,153 | |||||||||
| Distressed residential mortgage loans, net (including |
260,837 | 331,464 | |||||||||
| Multi-family loans held in securitization trusts, at fair value | 10,070,834 | 9,657,421 | |||||||||
| Derivative assets | 8,760 | 10,101 | |||||||||
| Cash and cash equivalents | 57,471 | 95,191 | |||||||||
| Investment in unconsolidated entities | 43,736 | 51,143 | |||||||||
| Preferred equity and mezzanine loan investments | 198,277 | 138,920 | |||||||||
| Real estate held for sale in consolidated variable interest entities | 29,558 | 64,202 | |||||||||
| 25,222 | 25,222 | ||||||||||
| Receivables and other assets | 102,659 | 108,567 | |||||||||
| Total Assets (1) | $ | 12,326,911 | $ | 12,056,285 | |||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
| Liabilities: | |||||||||||
| Financing arrangements, portfolio investments | $ | 1,130,659 | $ | 1,276,918 | |||||||
| Financing arrangements, residential mortgage loans | 177,226 | 149,063 | |||||||||
| Residential collateralized debt obligations | 56,504 | 70,308 | |||||||||
| Multi-family collateralized debt obligations, at fair value | 9,504,313 | 9,189,459 | |||||||||
| Securitized debt | 53,597 | 81,537 | |||||||||
| Mortgages and notes payable in consolidated variable interest entities | 32,486 | 57,124 | |||||||||
| Accrued expenses and other liabilities | 88,186 | 82,126 | |||||||||
| Subordinated debentures | 45,000 | 45,000 | |||||||||
| Convertible notes | 130,251 | 128,749 | |||||||||
| Total liabilities (1) | 11,218,222 | 11,080,284 | |||||||||
| Commitments and Contingencies | |||||||||||
| Stockholders' Equity: | |||||||||||
| Preferred stock, |
72,397 | 72,397 | |||||||||
| Preferred stock, |
86,862 | 86,862 | |||||||||
| Preferred stock, |
130,496 | 130,496 | |||||||||
| Common stock, |
1,412 | 1,119 | |||||||||
| Additional paid-in capital | 927,585 | 751,155 | |||||||||
| Accumulated other comprehensive (loss) income | (35,323 | ) | 5,553 | ||||||||
| Accumulated deficit | (75,736 | ) | (75,717 | ) | |||||||
| Company's stockholders' equity | 1,107,693 | 971,865 | |||||||||
| Non-controlling interest in consolidated variable interest entities | 996 | 4,136 | |||||||||
| Total equity | 1,108,689 | 976,001 | |||||||||
| Total Liabilities and Stockholders' Equity | $ | 12,326,911 | $ | 12,056,285 | |||||||
(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
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollar amounts in thousands, except per share data)
(unaudited)
| For the Three Months Ended |
For the Nine Months Ended |
||||||||||||||||||||||||||||||
| 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||||||||||
| INTEREST INCOME: | |||||||||||||||||||||||||||||||
| Investment securities and other | $ | 17,021 | $ | 9,716 | $ | 50,269 | $ | 29,716 | |||||||||||||||||||||||
| Multi-family loans held in securitization trusts | 86,458 | 76,186 | 257,179 | 213,242 | |||||||||||||||||||||||||||
| Residential mortgage loans | 2,844 | 1,556 | 7,415 | 4,163 | |||||||||||||||||||||||||||
| Distressed residential mortgage loans | 3,926 | 3,924 | 12,000 | 16,627 | |||||||||||||||||||||||||||
| Total interest income | 110,249 | 91,382 | 326,863 | 263,748 | |||||||||||||||||||||||||||
| INTEREST EXPENSE: | |||||||||||||||||||||||||||||||
| Investment securities and other | 10,548 | 5,759 | 30,673 | 17,132 | |||||||||||||||||||||||||||
| Convertible notes | 2,669 | 2,630 | 7,971 | 7,220 | |||||||||||||||||||||||||||
| Multi-family collateralized debt obligations | 75,145 | 67,030 | 224,310 | 187,835 | |||||||||||||||||||||||||||
| Residential collateralized debt obligations | 462 | 403 | 1,348 | 978 | |||||||||||||||||||||||||||
| Securitized debt | 1,110 | 1,651 | 3,684 | 5,937 | |||||||||||||||||||||||||||
| Subordinated debentures | 712 | 589 | 2,023 | 1,699 | |||||||||||||||||||||||||||
| Total interest expense | 90,646 | 78,062 | 270,009 | 220,801 | |||||||||||||||||||||||||||
| NET INTEREST INCOME | 19,603 | 13,320 | 56,854 | 42,947 | |||||||||||||||||||||||||||
| OTHER INCOME (LOSS): | |||||||||||||||||||||||||||||||
| Recovery of loan losses | 840 | 563 | 1,235 | 452 | |||||||||||||||||||||||||||
| Realized gain (loss) on investment securities and related hedges, net | 299 | 4,059 | (11,778 | ) | 3,951 | ||||||||||||||||||||||||||
| Realized gain on distressed residential mortgage loans at carrying value, net | 1,806 | 6,689 | 3,054 | 21,024 | |||||||||||||||||||||||||||
| Net gain on residential mortgage loans at fair value | 643 | 717 | 573 | 717 | |||||||||||||||||||||||||||
| Unrealized gain on investment securities and related hedges, net | 2,275 | 1,192 | 26,574 | 1,687 | |||||||||||||||||||||||||||
| Unrealized gain on multi-family loans and debt held in securitization trusts, net | 12,303 | 2,353 | 31,867 | 5,184 | |||||||||||||||||||||||||||
| Income from operating real estate and real estate held for sale in consolidated variable interest entities | 1,380 | 2,429 | 4,759 | 4,746 | |||||||||||||||||||||||||||
| Other income | 4,757 | 6,916 | 8,981 | 12,037 | |||||||||||||||||||||||||||
| Total other income | 24,303 | 24,918 | 65,265 | 49,798 | |||||||||||||||||||||||||||
| GENERAL, ADMINISTRATIVE AND OPERATING EXPENSES: | |||||||||||||||||||||||||||||||
| General and administrative expenses | 6,196 | 4,242 | 16,129 | 14,196 | |||||||||||||||||||||||||||
| Base management and incentive fees | 844 | 1,386 | 2,486 | 4,355 | |||||||||||||||||||||||||||
| Expenses related to distressed residential mortgage loans | 2,117 | 2,225 | 5,531 | 6,682 | |||||||||||||||||||||||||||
| Expenses related to operating real estate and real estate held for sale in consolidated variable interest entities | 755 | 3,143 | 3,234 | 7,558 | |||||||||||||||||||||||||||
| Total general, administrative and operating expenses | 9,912 | 10,996 | 27,380 | 32,791 | |||||||||||||||||||||||||||
| INCOME FROM OPERATIONS BEFORE INCOME TAXES | 33,994 | 27,242 | 94,739 | 59,954 | |||||||||||||||||||||||||||
| Income tax (benefit) expense | (454 | ) | 507 | (547 | ) | 2,187 | |||||||||||||||||||||||||
| NET INCOME | 34,448 | 26,735 | 95,286 | 57,767 | |||||||||||||||||||||||||||
| Net (income) loss attributable to non-controlling interest in consolidated variable interest entities | (475 | ) | 1,110 | (2,001 | ) | 3,597 | |||||||||||||||||||||||||
| NET INCOME ATTRIBUTABLE TO COMPANY | 33,973 | 27,845 | 93,285 | 61,364 | |||||||||||||||||||||||||||
| Preferred stock dividends | (5,925 | ) | (3,225 | ) | (17,775 | ) | (9,675 | ) | |||||||||||||||||||||||
| NET INCOME ATTRIBUTABLE TO COMPANY'S COMMON STOCKHOLDERS | $ | 28,048 | $ | 24,620 | $ | 75,510 | $ | 51,689 | |||||||||||||||||||||||
| Basic earnings per common share | $ | 0.21 | $ | 0.22 | $ | 0.63 | $ | 0.46 | |||||||||||||||||||||||
| Diluted earnings per common share | $ | 0.20 | $ | 0.21 | $ | 0.60 | $ | 0.45 | |||||||||||||||||||||||
| Weighted average shares outstanding-basic | 132,413 | 111,886 | 119,955 | 111,824 | |||||||||||||||||||||||||||
| Weighted average shares outstanding-diluted | 152,727 | 131,580 | 140,044 | 129,931 | |||||||||||||||||||||||||||
SUMMARY OF QUARTERLY EARNINGS
(Dollar amounts in thousands, except per share data)
(unaudited)
| For the Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
2018 |
2018 |
2017 |
2017 |
||||||||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 19,603 | $ | 17,500 | $ | 19,752 | $ | 15,040 | $ | 13,320 | |||||||||||||||||||||||||||||||||||
| Total other income | 24,303 | 20,007 | 20,953 | 25,218 | 24,918 | ||||||||||||||||||||||||||||||||||||||||
| Total general, administrative and operating expenses | 9,912 | 8,769 | 8,698 | 8,288 | 10,996 | ||||||||||||||||||||||||||||||||||||||||
| Income from operations before income taxes | 33,994 | 28,738 | 32,007 | 31,970 | 27,242 | ||||||||||||||||||||||||||||||||||||||||
| Income tax (benefit) expense | (454 | ) | (13 | ) | (79 | ) | 1,169 | 507 | |||||||||||||||||||||||||||||||||||||
| Net income | 34,448 | 28,751 | 32,086 | 30,801 | 26,735 | ||||||||||||||||||||||||||||||||||||||||
| Net (income) loss attributable to non-controlling interest in consolidated variable interest entities | (475 | ) | 943 | (2,468 | ) | (184 | ) | 1,110 | |||||||||||||||||||||||||||||||||||||
| Net income attributable to Company | 33,973 | 29,694 | 29,618 | 30,617 | 27,845 | ||||||||||||||||||||||||||||||||||||||||
| Preferred stock dividends | (5,925 | ) | (5,925 | ) | (5,925 | ) | (5,985 | ) | (3,225 | ) | |||||||||||||||||||||||||||||||||||
| Net income attributable to Company's common stockholders | 28,048 | 23,769 | 23,693 | 24,632 | 24,620 | ||||||||||||||||||||||||||||||||||||||||
| Basic earnings per common share | $ | 0.21 | $ | 0.21 | $ | 0.21 | $ | 0.22 | $ | 0.22 | |||||||||||||||||||||||||||||||||||
| Diluted earnings per common share | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.21 | $ | 0.21 | |||||||||||||||||||||||||||||||||||
| Weighted average shares outstanding - basic | 132,413 | 115,211 | 112,018 | 111,871 | 111,886 | ||||||||||||||||||||||||||||||||||||||||
| Weighted average shares outstanding - diluted | 152,727 | 135,164 | 131,761 | 131,565 | 131,580 | ||||||||||||||||||||||||||||||||||||||||
| Book value per common share | $ | 5.72 | $ | 5.76 | $ | 5.79 | $ | 6.00 | $ | 6.05 | |||||||||||||||||||||||||||||||||||
| Dividends declared per common share | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | |||||||||||||||||||||||||||||||||||
| Dividends declared per preferred share on Series B Preferred Stock | $ | 0.48 | $ | 0.48 | $ | 0.48 | $ | 0.48 | $ | 0.48 | |||||||||||||||||||||||||||||||||||
| Dividends declared per preferred share on Series C Preferred Stock | $ | 0.49 | $ | 0.49 | $ | 0.49 | $ | 0.49 | $ | 0.49 | |||||||||||||||||||||||||||||||||||
| Dividends declared per preferred share on Series D Preferred Stock | $ | 0.50 | $ | 0.50 | $ | 0.50 | $ | 0.51 | — | ||||||||||||||||||||||||||||||||||||
Capital Allocation Summary
The following tables set forth our allocated capital by investment type as well as the weighted average yield on interest earning assets, average cost of funds and portfolio net interest margin for our interest earning assets for the periods indicated (dollar amounts in thousands):
| Agency RMBS |
Multi- Family |
Distressed Residential |
Other | Total | |||||||||||||||||||||||||
| At |
|||||||||||||||||||||||||||||
| Carrying value | $ | 1,055,433 | $ | 947,851 | $ | 474,717 | $ | 145,228 | $ | 2,623,229 | |||||||||||||||||||
| Net capital allocated | $ | 224,545 | $ | 632,823 | $ | 335,855 | $ | (84,534 | ) | $ | 1,108,689 | ||||||||||||||||||
| Three Months Ended |
|||||||||||||||||||||||||||||
| Average interest earning assets | $ | 1,121,180 | $ | 681,040 | $ | 456,240 | $ | 140,960 | $ | 2,399,420 | |||||||||||||||||||
| Weighted average yield on interest earning assets | 2.67 | % | 11.55 | % | 5.31 | % | 5.39 | % | 5.85 | % | |||||||||||||||||||
| Less: Average cost of funds | (2.22 | )% | (5.04 | )% | (4.96 | )% | (4.19 | )% | (3.30 | )% | |||||||||||||||||||
| Portfolio net interest margin | 0.45 | % | 6.51 | % | 0.35 | % | 1.20 | % | 2.55 | % | |||||||||||||||||||
| At |
|||||||||||||||||||||||||||||
| Carrying value | $ | 1,101,344 | $ | 875,563 | $ | 445,353 | $ | 154,405 | $ | 2,576,665 | |||||||||||||||||||
| Net capital allocated | $ | 250,497 | $ | 557,422 | $ | 272,534 | $ | (64,252 | ) | $ | 1,016,201 | ||||||||||||||||||
| Three Months Ended |
|||||||||||||||||||||||||||||
| Average interest earning assets | $ | 1,167,278 | $ | 639,637 | $ | 453,407 | $ | 142,975 | $ | 2,403,297 | |||||||||||||||||||
| Weighted average yield on interest earning assets | 2.69 | % | 11.43 | % | 4.51 | % | 5.02 | % | 5.50 | % | |||||||||||||||||||
| Less: Average cost of funds | (2.02 | )% | (4.69 | )% | (4.87 | )% | (3.99 | )% | (3.11 | )% | |||||||||||||||||||
| Portfolio net interest margin | 0.67 | % | 6.74 | % | (0.36 | )% | 1.03 | % | 2.39 | % | |||||||||||||||||||
| At |
|||||||||||||||||||||||||||||
| Carrying value | $ | 1,161,445 | $ | 836,353 | $ | 461,305 | $ | 150,461 | $ | 2,609,564 | |||||||||||||||||||
| Net capital allocated | $ | 251,405 | $ | 500,813 | $ | 282,561 | $ | (83,992 | ) | $ | 950,787 | ||||||||||||||||||
| Three Months Ended |
|||||||||||||||||||||||||||||
| Average interest earning assets | $ | 1,208,900 | $ | 612,357 | $ | 467,898 | $ | 136,135 | $ | 2,425,290 | |||||||||||||||||||
| Weighted average yield on interest earning assets | 2.64 | % | 11.43 | % | 6.25 | % | 4.81 | % | 5.68 | % | |||||||||||||||||||
| Less: Average cost of funds | (1.82 | )% | (4.51 | )% | (4.45 | )% | (3.25 | )% | (2.82 | )% | |||||||||||||||||||
| Portfolio net interest margin | 0.82 | % | 6.92 | % | 1.80 | % | 1.56 | % | 2.86 | % | |||||||||||||||||||
| At |
|||||||||||||||||||||||||||||
| Carrying value | $ | 1,169,535 | $ | 816,805 | $ | 474,128 | $ | 140,325 | $ | 2,600,793 | |||||||||||||||||||
| Net capital allocated | $ | 264,801 | $ | 475,200 | $ | 285,766 | $ | (49,766 | ) | $ | 976,001 | ||||||||||||||||||
| Three Months Ended |
|||||||||||||||||||||||||||||
| Average interest earning assets | $ | 971,707 | $ | 596,701 | $ | 480,711 | $ | 126,447 | $ | 2,175,566 | |||||||||||||||||||
| Weighted average yield on interest earning assets | 2.50 | % | 11.11 | % | 3.68 | % | 4.53 | % | 5.24 | % | |||||||||||||||||||
| Less: Average cost of funds | (1.68 | )% | (4.49 | )% | (4.56 | )% | (3.22 | )% | (2.85 | )% | |||||||||||||||||||
| Portfolio net interest margin | 0.82 | % | 6.62 | % | (0.88 | )% | 1.31 | % | 2.39 | % | |||||||||||||||||||
| At |
|||||||||||||||||||||||||||||
| Carrying value | $ | 417,957 | $ | 723,170 | $ | 535,520 | $ | 136,304 | $ | 1,812,951 | |||||||||||||||||||
| Net capital allocated | $ | 90,526 | $ | 495,882 | $ | 305,668 | $ | (46,071 | ) | $ | 846,005 | ||||||||||||||||||
| Three Months Ended |
|||||||||||||||||||||||||||||
| Average interest earning assets | $ | 453,323 | $ | 536,537 | $ | 531,050 | $ | 126,848 | $ | 1,647,758 | |||||||||||||||||||
| Weighted average yield on interest earning assets | 1.70 | % | 11.39 | % | 4.37 | % | 4.21 | % | 5.91 | % | |||||||||||||||||||
| Less: Average cost of funds | (1.44 | )% | (4.46 | )% | (4.28 | )% | (2.57 | )% | (3.10 | )% | |||||||||||||||||||
| Portfolio net interest margin | 0.26 | % | 6.93 | % | 0.09 | % | 1.64 | % | 2.81 | % | |||||||||||||||||||
Source: