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New York Mortgage Trust Inc (NYMT) Q1 2025 Earnings Call Highlights: Strategic Portfolio ...

In This Article:

  • Earnings Available for Distribution (EAD) per Share: Increased to $0.20 in Q1 2025 from $0.16 in Q4 2024.

  • Adjusted Net Interest Income per Share: Rose to $0.40 from $0.36 in the prior quarter and $0.29 a year ago.

  • Net Interest Spread: 132 basis points, down from 137 basis points in the prior quarter.

  • Net Unrealized Gains: $118.2 million, primarily from higher valuations in agency RMBS and residential loan book.

  • Unrealized Losses from Derivatives: Approximately $71.3 million, mainly from interest rate swaps.

  • Net Realized Losses: Approximately $2.3 million from investment activity.

  • GAAP Book Value per Share: Increased to $9.37, a 1% increase from December 31, 2024.

  • Adjusted Book Value per Share: Increased to $10.43, a 1% increase from December 31, 2024.

  • Recourse Leverage Ratio: Increased to 3.4 times from 3 times at year-end 2024.

  • Portfolio Recourse Leverage Ratio: Increased to 3.2 times from 2.9 times at year-end 2024.

  • Agency RMBS Purchases: Approximately $1.5 billion in Q1 2025, nearly four times more than the prior quarter.

  • Whole Loan Purchases: $397 million, including $232 million of bridge loans and $163 million of rental loans.

  • Dividend: Maintained at $0.20 per share for the sixth consecutive quarter.

Release Date: May 01, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • New York Mortgage Trust Inc (NASDAQ:NYMT) increased its recurring earnings to align with its dividend of $0.20 per share, reflecting successful strategic portfolio restructuring.

  • The company doubled its investment pace from the previous quarter, adding $1.8 billion in investments, primarily in agency RMBS and short-duration credit assets.

  • Excess liquidity increased by nearly 20% from the previous quarter, ending with $407 million, despite high investment deployment.

  • The company introduced a new non-GAAP financial measure, earnings available for distribution (EAD), which better reflects its income-generating capability.

  • Net unrealized gains of $118.2 million were recognized, primarily due to higher valuations in the agency RMBS portfolio and residential loan book.

Negative Points

  • The portfolio recourse leverage ratio decreased to 0.5 times from 1.1 times, indicating a reduction in leverage.

  • General and administrative expenses increased slightly due to non-recurring employee severance costs related to restructuring initiatives.

  • The company recorded unrealized losses of approximately $71.3 million from derivative instruments, mainly interest rate swaps.

  • Net realized losses of approximately $2.3 million were recorded from investment activity, with significant losses from sales of investment securities.

  • Adjusted book value per share decreased by approximately 1.5% as of April month-end, indicating a decline in value.