Great Ajax Corp. Announces Results for the Quarter Ended December 31, 2023
- Interest income of $17.7 million and net interest income of $3.2 million were reported for the fourth quarter.
- Net loss attributable to common stockholders was $(23.2) million, with an operating loss of $(1.8) million.
- Earnings per share (EPS) per basic common share was a loss of $(0.86).
- Book value per common share stood at $9.99 at December 31, 2023.
- Collected total cash of $30.4 million from loan payments, sales of real estate owned (REO) properties, and investments.
- Held $52.8 million of cash and cash equivalents at December 31, 2023.
- Approximately 80.4% of the portfolio made at least 12 out of the last 12 payments.
- The company focuses on acquiring, investing in, and managing a portfolio of mortgage loans and commercial properties.
- Decline in net interest income was attributed to lower average balances on mortgage, debt security, and beneficial interest portfolios.
- Recorded $13.7 million write-downs on beneficial interests offset by a decrease in expected credit losses on the mortgage loan portfolio.
- Recorded a $8.6 million mark to market loss on a portfolio of mortgage loans held-for-sale.
- Began actively marketing a pool of non-performing loans (NPLs) with expected loan sale closure in March 2024.
- Terminated the merger agreement with Ellington Financial Inc. with a payment of $16.0 million.
- Declared a cash dividend of $0.10 per share to be paid on March 29, 2024.
- Identified mortgage loans for sale with anticipated losses in connection with the sale.
- Entered into a strategic transaction with Rithm on February 26, 2024.
- Net loss of $(23.2) million and operating loss of $(1.8) million reported for the quarter.
- Decrease in net interest income by $0.1 million compared to the previous quarter.
- Recorded write-downs on beneficial interests and mark to market loss on mortgage loans.
- Anticipated losses in connection with the sale of identified mortgage loans.
- Termination of the merger agreement with Ellington Financial Inc.
Insights
The reported net loss of $(23.2) million by Great Ajax Corp. for Q4 2023 is a significant financial event that demands attention from investors. This loss, which translates to a loss of $(0.86) per common share, is a substantial deviation from the previous quarter's loss of $(5.517) million. The increase in net loss is a red flag, indicating potential issues in the company's operations or market conditions. The decrease in net interest income, although marginal, suggests a contraction in the company's core business earnings. This could be due to a variety of factors such as declining loan interest income or increased competition.
Moreover, the decrease in book value per common share from $11.07 to $9.99 suggests asset devaluation or dilution of shareholder equity, which could impact investor confidence. The reported taxable loss of $0.03 per share, while lower than the previous quarter, still indicates the company is not generating taxable income. This could affect the company's ability to use tax assets and could be of concern to investors focused on profitability and tax efficiency.
The real estate investment trust (REIT) sector, to which Great Ajax Corp. belongs, is typically characterized by its ability to generate steady income through dividends. However, Great Ajax Corp.'s performance, with an operating loss of $(1.8) million, may underperform compared to industry peers, potentially impacting its attractiveness to income-focused investors. Additionally, the company's focus on re-performing mortgage loans (RPLs) and non-performing loans (NPLs) carries inherent risk, as evidenced by the need to write down $13.7 million on beneficial interests due to revised cash flow projections. This write-down reflects a pessimistic outlook on the recovery of these assets and suggests that the underlying collateral may not be as valuable as previously estimated.
The termination of the merger agreement with Ellington Financial and the subsequent sale of shares to them could be interpreted as a strategic pivot or a sign of internal challenges. The market may react to this news based on the perceived reasons for the termination and the implications for future company strategy and performance.
Great Ajax Corp.'s compliance with the current expected credit losses accounting standard (CECL) is noteworthy. The CECL model requires companies to estimate expected credit losses over the life of their assets, leading to the significant write-downs observed. Investors should be aware that such accounting standards can result in considerable volatility in reported earnings, as they are based on projections and estimates that may change over time. The transfer of securities from available-for-sale (AFS) to held-to-maturity (HTM) to comply with the European Union risk retention requirement is an example of how regulatory frameworks can impact financial statements.
Understanding these regulatory and accounting nuances is crucial for stakeholders to accurately assess the financial health and risk management practices of a company like Great Ajax Corp.
Fourth Quarter Highlights
-
Interest income of
$17 $3 -
Net loss attributable to common stockholders of
$(23.2) million -
Operating loss of
$(1.8) million -
Earnings per share ("EPS") per basic common share was a loss of
$(0.86) -
Operating loss per basic common share of
$(0.07) -
Taxable loss of
$0.03 -
Book value per common share of
$9.99 -
Collected total cash of
$30 -
Held
$52 $55.2 million -
As of December 31, 2023, approximately
80.4% of our portfolio (based on unpaid principal balance ("UPB") at the time of acquisition) made at least 12 out of the last 12 payments
Selected Financial Results (Unaudited) |
||||||||||||||||||||
($ in thousands except per share amounts) |
||||||||||||||||||||
|
|
For the three months ended |
||||||||||||||||||
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
||||||||||
Loan interest income |
|
$ |
12,420 |
|
|
$ |
12,696 |
|
|
$ |
12,929 |
|
|
$ |
13,281 |
|
|
$ |
13,520 |
|
Earnings from debt securities and beneficial interests(1) |
|
$ |
4,289 |
|
|
$ |
4,218 |
|
|
$ |
4,480 |
|
|
$ |
4,569 |
|
|
$ |
4,562 |
|
Other interest income |
|
$ |
948 |
|
|
$ |
965 |
|
|
$ |
931 |
|
|
$ |
606 |
|
|
$ |
367 |
|
Interest expense |
|
$ |
(14,484 |
) |
|
$ |
(14,838 |
) |
|
$ |
(15,039 |
) |
|
$ |
(14,925 |
) |
|
$ |
(14,482 |
) |
Net interest income |
|
$ |
3,173 |
|
|
$ |
3,041 |
|
|
$ |
3,301 |
|
|
$ |
3,531 |
|
|
$ |
3,967 |
|
Net (increase)/decrease in the net present value of expected credit losses |
|
$ |
(11,294 |
) |
|
$ |
(330 |
) |
|
$ |
2,866 |
|
|
$ |
621 |
|
|
$ |
1,152 |
|
Other (loss)/income, loss from equity method investments and loss on joint venture refinancing on beneficial interests |
|
$ |
(8,132 |
) |
|
$ |
(1,658 |
) |
|
$ |
(8,581 |
) |
|
$ |
(3,612 |
) |
|
$ |
(3,744 |
) |
Total (loss)/revenue, net(2) |
|
$ |
(16,253 |
) |
|
$ |
1,053 |
|
|
$ |
(2,414 |
) |
|
$ |
540 |
|
|
$ |
1,375 |
|
Consolidated net loss |
|
$ |
(22,614 |
) |
|
$ |
(5,517 |
) |
|
$ |
(11,462 |
) |
|
$ |
(7,364 |
) |
|
$ |
(6,283 |
) |
Net loss per basic share |
|
$ |
(0.86 |
) |
|
$ |
(0.25 |
) |
|
$ |
(0.51 |
) |
|
$ |
(0.34 |
) |
|
$ |
(0.30 |
) |
Average equity(3) |
|
$ |
321,327 |
|
|
$ |
316,814 |
|
|
$ |
324,089 |
|
|
$ |
337,206 |
|
|
$ |
343,112 |
|
Average total assets |
|
$ |
1,358,027 |
|
|
$ |
1,384,285 |
|
|
$ |
1,424,524 |
|
|
$ |
1,463,529 |
|
|
$ |
1,509,738 |
|
Average daily cash balance |
|
$ |
55,195 |
|
|
$ |
53,211 |
|
|
$ |
43,609 |
|
|
$ |
50,916 |
|
|
$ |
47,196 |
|
Average carrying value of RPLs |
|
$ |
882,071 |
|
|
$ |
892,367 |
|
|
$ |
886,072 |
|
|
$ |
882,018 |
|
|
$ |
883,254 |
|
Average carrying value of NPLs |
|
$ |
42,050 |
|
|
$ |
50,439 |
|
|
$ |
68,459 |
|
|
$ |
86,494 |
|
|
$ |
99,160 |
|
Average carrying value of SBC loans |
|
$ |
8,560 |
|
|
$ |
8,349 |
|
|
$ |
10,876 |
|
|
$ |
12,159 |
|
|
$ |
14,275 |
|
Average carrying value of debt securities and beneficial interests |
|
$ |
338,572 |
|
|
$ |
346,601 |
|
|
$ |
382,502 |
|
|
$ |
401,240 |
|
|
$ |
427,471 |
|
Average asset backed debt balance |
|
$ |
800,050 |
|
|
$ |
834,507 |
|
|
$ |
870,595 |
|
|
$ |
897,279 |
|
|
$ |
933,695 |
|
| (1) | Interest income on investment in debt securities and beneficial interests issued by our joint ventures is net of servicing fees. |
|
(2) |
Total loss/revenue includes net interest income, loss from equity method investments, loss on joint venture refinancing on beneficial interests and other loss/income. |
|
(3) |
Average equity includes the effect of an aggregate of |
For the quarter ended December 31, 2023, we had a GAAP consolidated net loss attributable to common stockholders of
Our net interest income for the quarter ended December 31, 2023, excluding any adjustment for expected credit losses was
We generally acquire loans at a discount and record an allowance for expected credit losses at acquisition. We update the allowance quarterly based on actual cash flow results and changing cash flow expectations in accordance with the current expected credit losses accounting standard, otherwise known as CECL. During the quarter ended December 31, 2023, we recorded
We recorded a
Our GAAP expenses decreased on a quarter over quarter basis by
We recorded
For the quarter ended March 31, 2023, we transferred certain securities from AFS to HTM in compliance with the European Union risk retention requirement, which was a non-cash transaction and recorded at fair value. On the date of transfer, accumulated other comprehensive income ("AOCI") included unrealized losses of
We ended the quarter with a GAAP book value of
Our taxable loss for the quarter ended December 31, 2023 was
We collected
As we previously announced on October 20, 2023, we and Ellington Financial Inc. (“Ellington Financial”) mutually terminated our merger agreement with Ellington Financial. The termination was approved by both companies’ boards of directors after careful consideration of the proposed merger and the progress made towards completing the transaction. In connection with the termination, Ellington Financial paid us
The following table provides an overview of our portfolio at December 31, 2023 ($ in thousands)(1):
No. of loans |
|
|
5,023 |
|
|
Weighted average coupon |
|
|
4.51 |
% |
Total UPB(2) |
|
$ |
957,175 |
|
|
Weighted average LTV(6) |
|
|
54.2 |
% |
Interest-bearing balance |
|
$ |
875,209 |
|
|
Weighted average remaining term (months) |
|
|
288 |
|
Deferred balance(1,3) |
|
$ |
81,966 |
|
|
No. of first liens |
|
|
4,979 |
|
Market value of collateral(4) |
|
$ |
2,115,857 |
|
|
No. of second liens |
|
|
44 |
|
Current purchase price/total UPB |
|
|
81.6 |
% |
|
No. of REO held-for-sale |
|
|
20 |
|
Current purchase price/market value of collateral |
|
|
41.5 |
% |
|
Market value of REO held-for-sale(7) |
|
$ |
4,592 |
|
RPLs |
|
|
89.3 |
% |
|
Carrying value of debt securities and beneficial interests in trusts |
|
$ |
310,330 |
|
NPLs |
|
|
10.0 |
% |
|
Loans with 12 for 12 payments as an approximate percentage of acquisition UPB(8) |
|
|
80.4 |
% |
SBC loans(5) |
|
|
0.7 |
% |
|
Loans with 24 for 24 payments as an approximate percentage of acquisition UPB(9) |
|
|
76.9 |
% |
| (1) |
Includes 262 loans that were classified from Mortgage loans held-for investment, net to Mortgage loans held-for-sale, net with a total UPB of |
|
(2) |
Our loan portfolio consists of fixed rate ( |
|
(3) |
Amounts that have been deferred in connection with a loan modification on which interest does not accrue. These amounts generally become payable at maturity. |
|
(4) |
As of the reporting date. |
|
(5) |
SBC loans includes both purchased and originated loans. |
|
(6) |
UPB as of December 31, 2023 divided by market value of collateral and weighted by the UPB of the loan. |
|
(7) |
Market value of other REO is the estimated expected gross proceeds from the sale of the REO less estimated costs to sell, including repayment of servicer advances. |
|
(8) |
Loans that have made at least 12 of the last 12 payments, or for which the full dollar amount to cover at least 12 payments has been made in the last 12 months. |
|
(9) |
Loans that have made at least 24 of the last 24 payments, or for which the full dollar amount to cover at least 24 payments has been made in the last 24 months. |
Recent Events
Our board declared a cash dividend of
In late February 2024, we identified mortgage loans that we proposed to market for sale. These include loans that are on our repurchase lines of credit, as well as loans included in Ajax Mortgage Loan Trust 2021-B and that in aggregate have a UPB of approximately
On February 26, 2024, we announced the entry into a strategic transaction with Rithm. We will be moving forward promptly with an annual/special stockholders' meeting as previously disclosed.
About Great Ajax Corp.
Great Ajax Corp. is a
Forward-Looking Statements
This press release contains certain forward-looking statements. Words such as “believes,” “intends,” “expects,” “projects,” “anticipates,” and “future” or similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions, many of which are beyond our control, including, without limitation and the risk factors and other matters set forth in our Annual Report on Form 10-K for the period ended December 31, 2023 when filed with the Securities and Exchange Commission (the “SEC”). We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.
GREAT AJAX CORP. AND SUBSIDIARIES |
||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
(Dollars in thousands except per share amounts) |
||||||||||||||||
|
|
Three months ended |
||||||||||||||
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
||||||||
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
||||||||
INCOME |
|
|
|
|
|
|
|
|
||||||||
Interest income |
|
$ |
17,657 |
|
|
$ |
17,879 |
|
|
$ |
18,340 |
|
|
$ |
18,456 |
|
Interest expense |
|
|
(14,484 |
) |
|
|
(14,838 |
) |
|
|
(15,039 |
) |
|
|
(14,925 |
) |
Net interest income |
|
|
3,173 |
|
|
|
3,041 |
|
|
|
3,301 |
|
|
|
3,531 |
|
Net (increase)/decrease in the net present value of expected credit losses |
|
|
(11,294 |
) |
|
|
(330 |
) |
|
|
2,866 |
|
|
|
621 |
|
Net interest (loss)/income after the impact of changes in the net present value of expected credit losses |
|
|
(8,121 |
) |
|
|
2,711 |
|
|
|
6,167 |
|
|
|
4,152 |
|
|
|
|
|
|
|
|
|
|
||||||||
Loss from equity method investments |
|
|
(317 |
) |
|
|
(628 |
) |
|
|
(265 |
) |
|
|
(98 |
) |
Loss on joint venture refinancing on beneficial interests |
|
|
— |
|
|
|
(1,215 |
) |
|
|
(8,814 |
) |
|
|
(995 |
) |
Other (loss)/income |
|
|
(7,815 |
) |
|
|
185 |
|
|
|
498 |
|
|
|
(2,519 |
) |
Total (loss)/revenue, net |
|
|
(16,253 |
) |
|
|
1,053 |
|
|
|
(2,414 |
) |
|
|
540 |
|
|
|
|
|
|
|
|
|
|
||||||||
EXPENSE |
|
|
|
|
|
|
|
|
||||||||
Related party expense - loan servicing fees |
|
|
1,773 |
|
|
|
1,809 |
|
|
|
1,827 |
|
|
|
1,860 |
|
Related party expense - management fee |
|
|
2,000 |
|
|
|
1,940 |
|
|
|
2,001 |
|
|
|
1,828 |
|
Professional fees |
|
|
623 |
|
|
|
611 |
|
|
|
989 |
|
|
|
934 |
|
Fair value adjustment on put option liability |
|
|
490 |
|
|
|
540 |
|
|
|
1,839 |
|
|
|
1,622 |
|
Other expense |
|
|
1,406 |
|
|
|
1,754 |
|
|
|
2,211 |
|
|
|
1,614 |
|
Total expense |
|
|
6,292 |
|
|
|
6,654 |
|
|
|
8,867 |
|
|
|
7,858 |
|
Loss/(gain) on debt extinguishment |
|
|
— |
|
|
|
16 |
|
|
|
— |
|
|
|
(47 |
) |
Loss before provision for income taxes |
|
|
(22,545 |
) |
|
|
(5,617 |
) |
|
|
(11,281 |
) |
|
|
(7,271 |
) |
Provision for income taxes (benefit) |
|
|
69 |
|
|
|
(100 |
) |
|
|
181 |
|
|
|
93 |
|
Consolidated net loss |
|
|
(22,614 |
) |
|
|
(5,517 |
) |
|
|
(11,462 |
) |
|
|
(7,364 |
) |
Less: consolidated net income attributable to non-controlling interests |
|
|
35 |
|
|
|
25 |
|
|
|
24 |
|
|
|
30 |
|
Consolidated net loss attributable to the Company |
|
|
(22,649 |
) |
|
|
(5,542 |
) |
|
|
(11,486 |
) |
|
|
(7,394 |
) |
Less: dividends on preferred stock |
|
|
548 |
|
|
|
547 |
|
|
|
548 |
|
|
|
547 |
|
Consolidated net loss attributable to common stockholders |
|
$ |
(23,197 |
) |
|
$ |
(6,089 |
) |
|
$ |
(12,034 |
) |
|
$ |
(7,941 |
) |
Basic loss per common share |
|
$ |
(0.86 |
) |
|
$ |
(0.25 |
) |
|
$ |
(0.51 |
) |
|
$ |
(0.34 |
) |
Diluted loss per common share |
|
$ |
(0.86 |
) |
|
$ |
(0.25 |
) |
|
$ |
(0.51 |
) |
|
$ |
(0.34 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares – basic |
|
|
26,931,750 |
|
|
|
24,001,702 |
|
|
|
23,250,725 |
|
|
|
22,920,943 |
|
Weighted average shares – diluted |
|
|
26,931,750 |
|
|
|
24,244,147 |
|
|
|
23,565,351 |
|
|
|
22,920,943 |
|
GREAT AJAX CORP. AND SUBSIDIARIES |
||||||||
CONSOLIDATED BALANCE SHEETS |
||||||||
(Dollars in thousands except per share amounts) |
||||||||
|
|
December 31, 2023 |
|
December 31, 2022 |
||||
ASSETS |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
52,834 |
|
|
$ |
47,845 |
|
Mortgage loans held-for-sale, net |
|
|
55,718 |
|
|
|
— |
|
Mortgage loans held-for-investment, net(1,2) |
|
|
864,551 |
|
|
|
989,084 |
|
Real estate owned properties, net(3) |
|
|
3,785 |
|
|
|
6,333 |
|
Investments in securities available-for-sale(4) |
|
|
131,558 |
|
|
|
257,062 |
|
Investments in securities held-to-maturity(5) |
|
|
59,691 |
|
|
|
— |
|
Investments in beneficial interests(6) |
|
|
104,162 |
|
|
|
134,552 |
|
Receivable from servicer |
|
|
7,307 |
|
|
|
7,450 |
|
Investment in affiliates |
|
|
28,000 |
|
|
|
30,185 |
|
Prepaid expenses and other assets |
|
|
28,685 |
|
|
|
11,915 |
|
Total assets |
|
$ |
1,336,291 |
|
|
$ |
1,484,426 |
|
|
|
|
|
|
||||
LIABILITIES AND EQUITY |
|
|
|
|
||||
Liabilities: |
|
|
|
|
||||
Secured borrowings, net(1,7) |
|
$ |
411,212 |
|
|
$ |
467,205 |
|
Borrowings under repurchase transactions |
|
|
375,745 |
|
|
|
445,855 |
|
Convertible senior notes, net(7) |
|
|
103,516 |
|
|
|
104,256 |
|
Notes payable, net(7) |
|
|
106,844 |
|
|
|
106,046 |
|
Management fee payable |
|
|
1,998 |
|
|
|
1,720 |
|
Put option liability |
|
|
16,644 |
|
|
|
12,153 |
|
Accrued expenses and other liabilities |
|
|
9,437 |
|
|
|
9,726 |
|
Total liabilities |
|
|
1,025,396 |
|
|
|
1,146,961 |
|
|
|
|
|
|
||||
Equity: |
|
|
|
|
||||
Preferred stock |
|
|
|
|
||||
Series A |
|
|
9,411 |
|
|
|
9,411 |
|
Series B |
|
|
25,143 |
|
|
|
25,143 |
|
Common stock |
|
|
285 |
|
|
|
241 |
|
Additional paid-in capital |
|
|
352,060 |
|
|
|
322,439 |
|
Treasury stock |
|
|
(9,557 |
) |
|
|
(9,532 |
) |
Retained (deficit)/earnings |
|
|
(54,382 |
) |
|
|
13,275 |
|
Accumulated other comprehensive loss |
|
|
(14,027 |
) |
|
|
(25,649 |
) |
Equity attributable to stockholders |
|
|
308,933 |
|
|
|
335,328 |
|
Non-controlling interests(8) |
|
|
1,962 |
|
|
|
2,137 |
|
Total equity |
|
|
310,895 |
|
|
|
337,465 |
|
Total liabilities and equity |
|
$ |
1,336,291 |
|
|
$ |
1,484,426 |
|
| (1) |
Mortgage loans held-for-investment, net include |
|
| (2) |
As of December 31, 2023 and 2022, balances for Mortgage loans held-for-investment, net include |
|
(3) |
Real estate owned properties, net, are presented net of valuation allowances of |
|
(4) |
Investments in securities AFS are presented at fair value. As of December 31, 2023, Investments in securities AFS include an amortized cost basis of |
|
(5) |
On January 1, 2023, we transferred certain of our Investments in securities AFS to HTM due to European risk retention regulations. As of December 31, 2023, Investments in securities HTM includes an allowance for expected credit losses of zero and remaining discount of |
|
(6) |
Investments in beneficial interests includes allowance for expected credit losses of |
|
(7) |
Secured borrowings, net are presented net of deferred issuance costs of |
|
(8) |
As of December 31, 2023, non-controlling interests includes |
Appendix A - Earnings per share
The following table sets forth the components of basic and diluted EPS ($ in thousands, except per share):
|
|
Three months ended |
||||||||||||||||||||||||||||||||||||||
|
|
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
||||||||||||||||||||||||||||||||
|
|
Income
|
|
Shares
|
|
Per
|
|
Income
|
|
Shares
|
|
Per
|
|
Income
|
|
Shares
|
|
Per
|
|
Income
|
|
Shares
|
|
Per
|
||||||||||||||||
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
||||||||||||||||||||||||||||||||
Basic EPS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Consolidated net loss attributable to common stockholders |
|
$ |
(23,197 |
) |
|
26,931,750 |
|
|
|
$ |
(6,089 |
) |
|
24,001,702 |
|
|
|
$ |
(12,034 |
) |
|
23,250,725 |
|
|
|
$ |
(7,941 |
) |
|
22,920,943 |
|
|
||||||||
Allocation of loss to participating restricted shares |
|
|
164 |
|
|
— |
|
|
|
|
62 |
|
|
— |
|
|
|
|
161 |
|
|
— |
|
|
|
|
111 |
|
|
— |
|
|
||||||||
Consolidated net loss attributable to unrestricted common stockholders |
|
$ |
(23,033 |
) |
|
26,931,750 |
|
$ |
(0.86 |
) |
|
$ |
(6,027 |
) |
|
24,001,702 |
|
$ |
(0.25 |
) |
|
$ |
(11,873 |
) |
|
23,250,725 |
|
$ |
(0.51 |
) |
|
$ |
(7,830 |
) |
|
22,920,943 |
|
$ |
(0.34 |
) |
Effect of dilutive securities(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Restricted stock grants and director fee shares(2) |
|
|
— |
|
|
— |
|
|
|
|
(62 |
) |
|
242,445 |
|
|
|
|
(161 |
) |
|
314,626 |
|
|
|
|
— |
|
|
— |
|
|
||||||||
Amortization of put option(3) |
|
|
— |
|
|
— |
|
|
|
|
— |
|
|
— |
|
|
|
|
— |
|
|
— |
|
|
|
|
— |
|
|
— |
|
|
||||||||
Diluted EPS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Consolidated net loss attributable to common stockholders and dilutive securities |
|
$ |
(23,033 |
) |
|
26,931,750 |
|
$ |
(0.86 |
) |
|
$ |
(6,089 |
) |
|
24,244,147 |
|
$ |
(0.25 |
) |
|
$ |
(12,034 |
) |
|
23,565,351 |
|
$ |
(0.51 |
) |
|
$ |
(7,830 |
) |
|
22,920,943 |
|
$ |
(0.34 |
) |
| (1) | Our outstanding warrants and the effect of the interest expense and assumed conversion of shares from convertible notes would have an anti-dilutive effect on diluted earnings per share for all periods shown and have not been included in the calculation. |
|
| (2) | The effect of restricted stock grants and manager and director fee shares on our diluted EPS calculation for the three months ended December 31, 2023 and March 31, 2023 would have been anti-dilutive and has been removed from the calculation. |
|
| (3) | The effect of the amortization of put option on our diluted EPS calculation for all periods shown would have been anti-dilutive and has been removed from the calculation. |
Appendix B - Reconciliation of Operating loss to Consolidated net loss available to common stockholders
(Dollars in thousands except per share amounts)
|
|
Three months ended |
||||||||||||||
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
||||||||
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
||||||||
INCOME |
|
|
|
|
|
|
|
|
||||||||
Interest income |
|
$ |
17,657 |
|
|
$ |
17,879 |
|
|
$ |
18,340 |
|
|
$ |
18,456 |
|
Interest expense |
|
|
(14,484 |
) |
|
|
(14,838 |
) |
|
|
(15,039 |
) |
|
|
(14,925 |
) |
Net interest income |
|
|
3,173 |
|
|
|
3,041 |
|
|
|
3,301 |
|
|
|
3,531 |
|
|
|
|
|
|
|
|
|
|
||||||||
Other income |
|
|
745 |
|
|
|
558 |
|
|
|
498 |
|
|
|
455 |
|
Total revenue, net |
|
|
3,918 |
|
|
|
3,599 |
|
|
|
3,799 |
|
|
|
3,986 |
|
|
|
|
|
|
|
|
|
|
||||||||
EXPENSE |
|
|
|
|
|
|
|
|
||||||||
Related party expense - loan servicing fees |
|
|
1,773 |
|
|
|
1,809 |
|
|
|
1,827 |
|
|
|
1,860 |
|
Related party expense - management fees |
|
|
2,000 |
|
|
|
1,940 |
|
|
|
2,001 |
|
|
|
1,828 |
|
Professional fees |
|
|
623 |
|
|
|
611 |
|
|
|
989 |
|
|
|
934 |
|
Other expense |
|
|
1,356 |
|
|
|
1,505 |
|
|
|
1,526 |
|
|
|
1,503 |
|
Total expense |
|
|
5,752 |
|
|
|
5,865 |
|
|
|
6,343 |
|
|
|
6,125 |
|
Consolidated operating loss |
|
$ |
(1,834 |
) |
|
$ |
(2,266 |
) |
|
$ |
(2,544 |
) |
|
$ |
(2,139 |
) |
Basic operating loss per common share |
|
$ |
(0.07 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.09 |
) |
Diluted operating loss per common share |
|
$ |
(0.07 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.09 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation to GAAP net loss |
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Consolidated operating loss |
|
$ |
(1,834 |
) |
|
$ |
(2,266 |
) |
|
$ |
(2,544 |
) |
|
$ |
(2,139 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Mark to market loss on joint venture refinancing |
|
|
— |
|
|
|
(1,215 |
) |
|
|
(8,814 |
) |
|
|
(995 |
) |
Mark to market loss on mortgage loans held-for-sale, net |
|
|
(8,559 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Realized loss on sale of securities |
|
|
— |
|
|
|
(373 |
) |
|
|
— |
|
|
|
(2,974 |
) |
Net (increase)/decrease in the net present value of expected credit losses |
|
|
(11,294 |
) |
|
|
(330 |
) |
|
|
2,866 |
|
|
|
621 |
|
Fair value adjustment on put option liability |
|
|
(490 |
) |
|
|
(540 |
) |
|
|
(1,839 |
) |
|
|
(1,622 |
) |
Other adjustments |
|
|
(368 |
) |
|
|
(893 |
) |
|
|
(950 |
) |
|
|
(162 |
) |
Loss before provision for income taxes |
|
|
(22,545 |
) |
|
|
(5,617 |
) |
|
|
(11,281 |
) |
|
|
(7,271 |
) |
Provision for income taxes (benefit) |
|
|
69 |
|
|
|
(100 |
) |
|
|
181 |
|
|
|
93 |
|
Consolidated net income attributable to non-controlling interest |
|
|
(35 |
) |
|
|
(25 |
) |
|
|
(24 |
) |
|
|
(30 |
) |
Consolidated net loss attributable to the Company |
|
|
(22,649 |
) |
|
|
(5,542 |
) |
|
|
(11,486 |
) |
|
|
(7,394 |
) |
Dividends on preferred stock |
|
|
(548 |
) |
|
|
(547 |
) |
|
|
(548 |
) |
|
|
(547 |
) |
Consolidated net loss attributable to common stockholders |
|
$ |
(23,197 |
) |
|
$ |
(6,089 |
) |
|
$ |
(12,034 |
) |
|
$ |
(7,941 |
) |
Basic loss per common share |
|
$ |
(0.86 |
) |
|
$ |
(0.25 |
) |
|
$ |
(0.51 |
) |
|
$ |
(0.34 |
) |
Diluted loss per common share |
|
$ |
(0.86 |
) |
|
$ |
(0.25 |
) |
|
$ |
(0.51 |
) |
|
$ |
(0.34 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240226785523/en/
Lawrence Mendelsohn
Chief Executive Officer
Or
Mary Doyle
Chief Financial Officer
Mary.Doyle@aspencapital.com
503-444-4224
Source: Great Ajax Corp.
FAQ
What was the net loss attributable to common stockholders for the fourth quarter of 2023?
What was the operating loss per basic common share for the fourth quarter of 2023?
What was the book value per common share at December 31, 2023?
What percentage of the portfolio made at least 12 out of the last 12 payments as of December 31, 2023?
What was the cash dividend declared per share to be paid on March 29, 2024?
What strategic transaction was entered into on February 26, 2024?
What was the total UPB of the portfolio at December 31, 2023?
What was the weighted average coupon of the portfolio at December 31, 2023?
