New York Mortgage Trust Reports Fourth Quarter 2018 Results
Summary of Fourth Quarter 2018:
- Earned net income attributable to common stockholders of
$3.7 million , or$0.02 per share (basic), and comprehensive income to common stockholders of$16.9 million , or$0.11 per share. - Earned net interest income of
$21.9 million and portfolio net interest margin of 230 basis points. - Recognized book value per common share of
$5.65 atDecember 31, 2018 , a decrease of 1% fromSeptember 30, 2018 , resulting in an economic return of 2.3% for the quarter endedDecember 31, 2018 . - Declared fourth quarter dividend of
$0.20 per common share that was paid onJanuary 25, 2019 . - Issued 14,375,000 shares of common stock through an underwritten public offering resulting in total net proceeds of approximately
$85.3 million after deducting underwriting discounts, commissions and offering expenses. - Acquired credit assets totaling
$944.2 million , including distressed residential mortgage loans totaling$482.6 million , other residential mortgage loans totaling$87.5 million , non-Agency RMBS totaling$119.5 million , multi-family CMBS totaling$208.5 million and preferred equity investments in owners of multi-family properties totaling$46.2 million . - Closed on a master repurchase agreement with a maximum aggregate principal amount of
$750.0 million to fund the purchase of residential mortgage loans.
Highlights for Full Year 2018:
- Earned net income attributable to common stockholders in 2018 of
$79.2 million , or$0.62 per share (basic), and comprehensive income to common stockholders of$51.5 million , or$0.40 per share. - Earned net interest income of
$78.7 million and portfolio net interest margin of 253 basis points. - Delivered economic return of 7.50% for the year ended
December 31, 2018 . - Declared aggregate 2018 dividends of
$0.80 per common share. - Completed the issuance of an aggregate of 28,750,000 shares through two underwritten public offerings in
August 2018 andNovember 2018 at an average public offering price of$6.14 per share resulting in aggregate net proceeds to the Company of$171.3 million , after deducting underwriting discounts, commissions, and offering expenses. - Issued and sold 14,588,631 shares of common stock under our at-the-market equity offering program at an average sales price of
$6.19 per share, resulting in net proceeds to the Company of$89.0 million , after deducting placement fees. - Acquired credit assets totaling
$1.2 billion , including distressed residential mortgage loans totaling$560.7 million , other residential mortgage loans totaling$128.0 million , non-Agency RMBS totaling$196.2 million , multi-family CMBS totaling$249.4 million and preferred equity investments in owners of multi-family properties totaling$113.0 million . - Added 18 professionals in connection with our growth.
On
Management Overview
2018 was a transformational year for the Company. We moved to internalize our last externally-managed business, residential distressed credit, adding a team of professionals that not only covers distressed residential assets but increases our capabilities across many other residential credit opportunities. In
We are excited about the year ahead, having added approximately
Capital Allocation
The following tables set forth our allocated capital by investment type at
Capital Allocation at | |||||||||||||||||||
Agency RMBS(1) | Multi- Family Credit (2) | Residential Credit (3) | Other (4) | Total | |||||||||||||||
Carrying Value | $ | 1,037,730 | $ | 1,166,628 | $ | 1,241,817 | $ | 10,953 | $ | 3,457,128 | |||||||||
Liabilities | |||||||||||||||||||
Callable (5) | (925,230 | ) | (529,617 | ) | (676,658 | ) | — | (2,131,505 | ) | ||||||||||
Non-Callable | — | (30,121 | ) | (65,253 | ) | (45,000 | ) | (140,374 | ) | ||||||||||
Convertible | — | — | — | (130,762 | ) | (130,762 | ) | ||||||||||||
Hedges (Net) (6) | 10,263 | — | — | — | 10,263 | ||||||||||||||
Cash and Restricted Cash(7) | 10,377 | 17,291 | 20,859 | 60,618 | 109,145 | ||||||||||||||
— | — | — | 25,222 | 25,222 | |||||||||||||||
Other | 2,374 | (4,929 | ) | 24,182 | (40,451 | ) | (18,824 | ) | |||||||||||
Net Capital Allocated | $ | 135,514 | $ | 619,252 | $ | 544,947 | $ | (119,420 | ) | $ | 1,180,293 | ||||||||
% of Capital Allocated | 11.5 | % | 52.5 | % | 46.2 | % | (10.2 | )% | 100.0 | % | |||||||||
Net Interest Income- Three Months Ended | |||||||||||||||||||
Interest Income | $ | 7,436 | $ | 21,329 | $ | 11,379 | $ | — | $ | 40,144 | |||||||||
Interest Expense | (5,594 | ) | (5,135 | ) | (4,148 | ) | (3,394 | ) | (18,271 | ) | |||||||||
Net Interest Income (Expense) | $ | 1,842 | $ | 16,194 | $ | 7,231 | $ | (3,394 | ) | $ | 21,873 | ||||||||
Portfolio Net Interest Margin - Three Months Ended | |||||||||||||||||||
Average Interest Earning Assets (8) | $ | 1,087,267 | $ | 786,394 | $ | 848,777 | $ | — | $ | 2,722,438 | |||||||||
Weighted Average Yield on Interest Earning Assets (9) | 2.74 | % | 10.85 | % | 5.36 | % | — | 5.90 | % | ||||||||||
Less: Average Cost of Funds (10) | (2.46 | )% | (5.00 | )% | (5.01 | )% | — | (3.60 | )% | ||||||||||
Portfolio Net Interest Margin (11) | 0.28 | % | 5.85 | % | 0.35 | % | — | 2.30 | % |
(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 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