Great Ajax Corp. Announces Results for the Quarter Ended September 30, 2023; Provides Strategic Update
- Great Ajax Corp. formed two joint ventures that acquired $325.3 million in mortgage loans, increasing their investments in debt securities and beneficial interests.
- The company collected $39.5 million in cash from loan payments, sales of real estate owned, and collections from investments.
- Approximately 81.2% of their portfolio made at least 12 out of the last 12 payments.
- Great Ajax Corp. reported a net loss of $(6.1) million for the quarter.
- The company's net interest income decreased by $0.3 million compared to the previous quarter.
- The company's book value per common share decreased to $11.07.
Third Quarter Highlights
-
Interest income of
$17.9 million $3.0 million -
Net loss attributable to common stockholders of
$(6.1) million -
Operating loss of
$(2.3) million -
Earnings per share ("EPS") per basic common share was a loss of
$(0.25) -
Operating loss per basic common share of
$(0.09) -
Taxable loss of
$(0.06) -
Book value per common share of
$11.07 -
Formed two joint ventures that acquired
$325.3 million $718.7 million $57.9 million $309.2 million -
Collected total cash of
$39.5 million -
Held
$63.9 million $53.2 million -
As of September 30, 2023, approximately
81.2% of our portfolio (based on UPB at the time of acquisition) made at least 12 out of the last 12 payments
Selected Financial Results (Unaudited) |
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($ in thousands except per share amounts) |
||||||||||||||||||||
|
|
For the three months ended |
||||||||||||||||||
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
||||||||||
Loan interest income(1) |
|
$ |
12,696 |
|
|
$ |
12,929 |
|
|
$ |
13,281 |
|
|
$ |
13,520 |
|
|
$ |
14,864 |
|
Earnings from debt securities and beneficial interests(2) |
|
$ |
4,218 |
|
|
$ |
4,480 |
|
|
$ |
4,569 |
|
|
$ |
4,562 |
|
|
$ |
4,613 |
|
Other interest income |
|
$ |
965 |
|
|
$ |
931 |
|
|
$ |
606 |
|
|
$ |
367 |
|
|
$ |
544 |
|
Interest expense |
|
$ |
(14,838 |
) |
|
$ |
(15,039 |
) |
|
$ |
(14,925 |
) |
|
$ |
(14,482 |
) |
|
$ |
(11,369 |
) |
Net interest income |
|
$ |
3,041 |
|
|
$ |
3,301 |
|
|
$ |
3,531 |
|
|
$ |
3,967 |
|
|
$ |
8,652 |
|
Net (increase)/decrease in the net present value of expected credit losses |
|
$ |
(330 |
) |
|
$ |
2,866 |
|
|
$ |
621 |
|
|
$ |
1,152 |
|
|
$ |
1,935 |
|
Other income/(loss), loss from equity method investments and loss on joint venture refinancing on beneficial interests |
|
$ |
(1,658 |
) |
|
$ |
(8,581 |
) |
|
$ |
(3,612 |
) |
|
$ |
(3,744 |
) |
|
$ |
(65 |
) |
Total revenue/(loss), net(1,3) |
|
$ |
1,053 |
|
|
$ |
(2,414 |
) |
|
$ |
540 |
|
|
$ |
1,375 |
|
|
$ |
10,522 |
|
Consolidated net loss(1) |
|
$ |
(5,517 |
) |
|
$ |
(11,462 |
) |
|
$ |
(7,364 |
) |
|
$ |
(6,283 |
) |
|
$ |
(9,503 |
) |
Net loss per basic share |
|
$ |
(0.25 |
) |
|
$ |
(0.51 |
) |
|
$ |
(0.34 |
) |
|
$ |
(0.30 |
) |
|
$ |
(0.71 |
) |
Average equity(1,4) |
|
$ |
316,814 |
|
|
$ |
324,089 |
|
|
$ |
337,206 |
|
|
$ |
343,112 |
|
|
$ |
399,610 |
|
Average total assets(1) |
|
$ |
1,384,285 |
|
|
$ |
1,424,524 |
|
|
$ |
1,463,529 |
|
|
$ |
1,509,738 |
|
|
$ |
1,559,584 |
|
Average daily cash balance |
|
$ |
53,211 |
|
|
$ |
43,609 |
|
|
$ |
50,916 |
|
|
$ |
47,196 |
|
|
$ |
62,334 |
|
Average carrying value of RPLs(1) |
|
$ |
892,367 |
|
|
$ |
886,072 |
|
|
$ |
882,018 |
|
|
$ |
883,254 |
|
|
$ |
897,947 |
|
Average carrying value of NPLs(1) |
|
$ |
50,439 |
|
|
$ |
68,459 |
|
|
$ |
86,494 |
|
|
$ |
99,160 |
|
|
$ |
100,827 |
|
Average carrying value of SBC loans |
|
$ |
8,349 |
|
|
$ |
10,876 |
|
|
$ |
12,159 |
|
|
$ |
14,275 |
|
|
$ |
15,546 |
|
Average carrying value of debt securities and beneficial interests |
|
$ |
346,601 |
|
|
$ |
382,502 |
|
|
$ |
401,240 |
|
|
$ |
427,471 |
|
|
$ |
435,849 |
|
Average asset backed debt balance(1) |
|
$ |
834,507 |
|
|
$ |
870,595 |
|
|
$ |
897,279 |
|
|
$ |
933,695 |
|
|
$ |
987,394 |
|
____________________________________________________________
| (1) |
Reflects the impact of consolidating the assets, liabilities and non-controlling interests of Ajax Mortgage Loan Trust 2017-D, which is |
|
| (2) | Interest income on investment in debt securities and beneficial interests issued by our joint ventures is net of servicing fees. |
|
| (3) | Total revenue includes net interest income, loss from equity method investments, loss on joint venture refinancing on beneficial interests and other income/loss. |
|
| (4) |
Average equity includes the effect of an aggregate of |
For the quarter ended September 30, 2023, we had a GAAP consolidated net loss attributable to common stockholders of
Our net interest income for the quarter ended September 30, 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 September 30, 2023, we recorded
On July 11, 2023, we sold an unrated Class A senior bond in one of our joint ventures and recognized a loss of
On July 24, 2023, we formed Ajax Mortgage Loan Trust 2023-B ("2023-B") and Ajax Mortgage Loan Trust 2023-C ("2023-C"), with an institutional accredited investor, by refinancing eight joint ventures and recorded an
Gaea Real Estate Corp ("Gaea") internalized its manager on September 1, 2023 and paid a contract termination fee. We recorded a loss from our investments in affiliates of
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, AOCI included unrealized losses of
We ended the quarter with a GAAP book value of
Our taxable loss for the quarter ended September 30, 2023 was
We collected
We purchased one RPL with UPB of
The following table provides an overview of our portfolio at September 30, 2023 ($ in thousands): |
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No. of loans |
|
|
5,102 |
|
|
Weighted average coupon |
|
|
4.48 |
% |
Total UPB(1) |
|
$ |
972,765 |
|
|
Weighted average LTV(5) |
|
|
54.7 |
% |
Interest-bearing balance |
|
$ |
890,104 |
|
|
Weighted average remaining term (months) |
|
|
290 |
|
Deferred balance(2) |
|
$ |
82,661 |
|
|
No. of first liens |
|
|
5,056 |
|
Market value of collateral(3) |
|
$ |
2,123,778 |
|
|
No. of second liens |
|
|
46 |
|
Current purchase price/total UPB |
|
|
81.6 |
% |
|
No. of REO held-for-sale |
|
|
25 |
|
Current purchase price/market value of collateral |
|
|
41.8 |
% |
|
Market value of REO held-for-sale(6) |
|
$ |
4,515 |
|
RPLs |
|
|
89.2 |
% |
|
Carrying value of debt securities and beneficial interests in trusts |
|
$ |
320,130 |
|
NPLs |
|
|
10.0 |
% |
|
Loans with 12 for 12 payments as an approximate percentage of acquisition UPB(7) |
|
|
81.2 |
% |
SBC loans(4) |
|
|
0.8 |
% |
|
Loans with 24 for 24 payments as an approximate percentage of acquisition UPB(8) |
|
|
77.2 |
% |
____________________________________________________________
| (1) |
Our loan portfolio consists of fixed rate ( |
|
| (2) | Amounts that have been deferred in connection with a loan modification on which interest does not accrue. These amounts generally become payable at maturity. |
|
| (3) | As of the reporting date. |
|
| (4) | SBC loans includes both purchased and originated loans. |
|
| (5) | UPB as of September 30, 2023 divided by market value of collateral and weighted by the UPB of the loan. |
|
| (6) | 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. |
|
| (7) | 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. |
|
| (8) | 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
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
As we discussed when we announced the now terminated transaction, our board regularly evaluates and considers our strategic direction, our objectives and our succession plans, as well as our ongoing business, all with a view to maximizing long-term value for our stockholders. This evaluation and consideration led to our entry into the merger agreement with Ellington Financial. Following termination of the agreement, the board engaged Piper Sandler & Co. as our financial adviser to assist us with a thorough evaluation of strategic alternatives, including, but not limited to, other strategic transactions, potential capital injections involving us and/or our affiliates, other monetization opportunities involving us and/or our affiliates, specific asset sales, or other opportunities. No assurance can be given that this process will culminate in a successful transaction, nor can we provide any guidance regarding the timing of this process or any possible transaction(s) that might result given that the board must undertake a thorough review of available alternatives. We do not intend to comment further on the review of strategic alternatives until we determine disclosure is necessary or advisable.
This year, to date, we have distributed
Conference Call
Great Ajax Corp. will host a conference call at 5:00 p.m. ET on Thursday, November 2, 2023 to review our financial results for the quarter and discuss other updates. A live Webcast of the conference call will be accessible from the Quarterly Reports section of our website www.greatajax.com. An archive of the Webcast will be available for 90 days.
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, 2022 filed with the Securities and Exchange Commission (the “SEC”) on March 3, 2023, when filed with the SEC and our Quarterly Report on Form 10-Q for the period ended September 30, 2023. 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 |
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CONSOLIDATED STATEMENTS OF OPERATIONS |
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(Dollars in thousands except per share amounts) |
||||||||||||||||
|
|
Three months ended |
||||||||||||||
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
||||||||
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
||||||||
INCOME |
|
|
|
|
|
|
|
|
||||||||
Interest income |
|
$ |
17,879 |
|
|
$ |
18,340 |
|
|
$ |
18,456 |
|
|
$ |
18,449 |
|
Interest expense |
|
|
(14,838 |
) |
|
|
(15,039 |
) |
|
|
(14,925 |
) |
|
|
(14,482 |
) |
Net interest income |
|
|
3,041 |
|
|
|
3,301 |
|
|
|
3,531 |
|
|
|
3,967 |
|
Net (increase)/decrease in the net present value of expected credit losses |
|
|
(330 |
) |
|
|
2,866 |
|
|
|
621 |
|
|
|
1,152 |
|
Net interest income after the impact of changes in the net present value of expected credit losses |
|
|
2,711 |
|
|
|
6,167 |
|
|
|
4,152 |
|
|
|
5,119 |
|
|
|
|
|
|
|
|
|
|
||||||||
Loss from equity method investments |
|
|
(628 |
) |
|
|
(265 |
) |
|
|
(98 |
) |
|
|
(349 |
) |
Loss on joint venture refinancing on beneficial interests |
|
|
(1,215 |
) |
|
|
(8,814 |
) |
|
|
(995 |
) |
|
|
— |
|
Other income/(loss) |
|
|
185 |
|
|
|
498 |
|
|
|
(2,519 |
) |
|
|
(3,395 |
) |
Total revenue/(loss), net |
|
|
1,053 |
|
|
|
(2,414 |
) |
|
|
540 |
|
|
|
1,375 |
|
|
|
|
|
|
|
|
|
|
||||||||
EXPENSE |
|
|
|
|
|
|
|
|
||||||||
Related party expense - loan servicing fees |
|
|
1,809 |
|
|
|
1,827 |
|
|
|
1,860 |
|
|
|
1,911 |
|
Related party expense - management fee |
|
|
1,940 |
|
|
|
2,001 |
|
|
|
1,828 |
|
|
|
1,722 |
|
Professional fees |
|
|
611 |
|
|
|
989 |
|
|
|
934 |
|
|
|
621 |
|
Fair value adjustment on put option liability |
|
|
540 |
|
|
|
1,839 |
|
|
|
1,622 |
|
|
|
1,431 |
|
Other expense |
|
|
1,754 |
|
|
|
2,211 |
|
|
|
1,614 |
|
|
|
1,741 |
|
Total expense |
|
|
6,654 |
|
|
|
8,867 |
|
|
|
7,858 |
|
|
|
7,426 |
|
Loss/(gain) on debt extinguishment |
|
|
16 |
|
|
|
— |
|
|
|
(47 |
) |
|
|
— |
|
Loss before provision for income taxes |
|
|
(5,617 |
) |
|
|
(11,281 |
) |
|
|
(7,271 |
) |
|
|
(6,051 |
) |
Provision for income taxes (benefit) |
|
|
(100 |
) |
|
|
181 |
|
|
|
93 |
|
|
|
232 |
|
Consolidated net loss |
|
|
(5,517 |
) |
|
|
(11,462 |
) |
|
|
(7,364 |
) |
|
|
(6,283 |
) |
Less: consolidated net income attributable to non-controlling interests |
|
|
25 |
|
|
|
24 |
|
|
|
30 |
|
|
|
5 |
|
Consolidated net loss attributable to the Company |
|
|
(5,542 |
) |
|
|
(11,486 |
) |
|
|
(7,394 |
) |
|
|
(6,288 |
) |
Less: dividends on preferred stock |
|
|
547 |
|
|
|
548 |
|
|
|
547 |
|
|
|
547 |
|
Consolidated net loss attributable to common stockholders |
|
$ |
(6,089 |
) |
|
$ |
(12,034 |
) |
|
$ |
(7,941 |
) |
|
$ |
(6,835 |
) |
Basic loss per common share |
|
$ |
(0.25 |
) |
|
$ |
(0.51 |
) |
|
$ |
(0.34 |
) |
|
$ |
(0.30 |
) |
Diluted loss per common share |
|
$ |
(0.25 |
) |
|
$ |
(0.51 |
) |
|
$ |
(0.34 |
) |
|
$ |
(0.30 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares – basic |
|
|
24,001,702 |
|
|
|
23,250,725 |
|
|
|
22,920,943 |
|
|
|
22,778,652 |
|
Weighted average shares – diluted |
|
|
24,244,147 |
|
|
|
23,565,351 |
|
|
|
22,920,943 |
|
|
|
22,778,652 |
|
GREAT AJAX CORP. AND SUBSIDIARIES |
||||||||
CONSOLIDATED BALANCE SHEETS |
||||||||
(Dollars in thousands except per share amounts) |
||||||||
|
|
September 30, 2023 |
|
December 31, 2022 |
||||
ASSETS |
|
(Unaudited) |
|
|
||||
Cash and cash equivalents |
|
$ |
63,910 |
|
|
$ |
47,845 |
|
Mortgage loans held-for-investment, net(1,2) |
|
|
939,080 |
|
|
|
989,084 |
|
Real estate owned properties, net(3) |
|
|
4,040 |
|
|
|
6,333 |
|
Investments in securities available-for-sale(4) |
|
|
131,037 |
|
|
|
257,062 |
|
Investments in securities held-to-maturity(5) |
|
|
61,189 |
|
|
|
— |
|
Investments in beneficial interests(6) |
|
|
116,954 |
|
|
|
134,552 |
|
Receivable from servicer |
|
|
9,673 |
|
|
|
7,450 |
|
Investments in affiliates |
|
|
29,132 |
|
|
|
30,185 |
|
Prepaid expenses and other assets |
|
|
19,519 |
|
|
|
11,915 |
|
Total assets |
|
$ |
1,374,534 |
|
|
$ |
1,484,426 |
|
|
|
|
|
|
||||
LIABILITIES AND EQUITY |
|
|
|
|
||||
Liabilities: |
|
|
|
|
||||
Secured borrowings, net(1,7) |
|
$ |
424,651 |
|
|
$ |
467,205 |
|
Borrowings under repurchase transactions |
|
|
392,024 |
|
|
|
445,855 |
|
Convertible senior notes, net(7) |
|
|
103,516 |
|
|
|
104,256 |
|
Notes payable, net(7) |
|
|
106,629 |
|
|
|
106,046 |
|
Management fee payable |
|
|
1,938 |
|
|
|
1,720 |
|
Put option liability |
|
|
16,155 |
|
|
|
12,153 |
|
Accrued expenses and other liabilities |
|
|
7,270 |
|
|
|
9,726 |
|
Total liabilities |
|
|
1,052,183 |
|
|
|
1,146,961 |
|
|
|
|
|
|
||||
Equity: |
|
|
|
|
||||
Preferred stock |
|
|
|
|
||||
Series A |
|
|
9,411 |
|
|
|
9,411 |
|
Series B |
|
|
25,143 |
|
|
|
25,143 |
|
Common stock |
|
|
268 |
|
|
|
241 |
|
Additional paid-in capital |
|
|
340,861 |
|
|
|
322,439 |
|
Treasury stock |
|
|
(9,557 |
) |
|
|
(9,532 |
) |
Retained (deficit)/earnings |
|
|
(28,158 |
) |
|
|
13,275 |
|
Accumulated other comprehensive loss |
|
|
(17,733 |
) |
|
|
(25,649 |
) |
Equity attributable to stockholders |
|
|
320,235 |
|
|
|
335,328 |
|
Non-controlling interests(8) |
|
|
2,116 |
|
|
|
2,137 |
|
Total equity |
|
|
322,351 |
|
|
|
337,465 |
|
Total liabilities and equity |
|
$ |
1,374,534 |
|
|
$ |
1,484,426 |
|
____________________________________________________________
| (1) |
Mortgage loans held-for-investment, net include |
|
| (2) |
As of both September 30, 2023 and December 31, 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 September 30, 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 September 30, 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 zero at both September 30, 2023 and December 31, 2022. |
|
| (7) |
Secured borrowings, net are presented net of deferred issuance costs of |
|
| (8) |
As of September 30, 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 |
||||||||||||||||||||||||||||||||||||||
|
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
||||||||||||||||||||||||||||||||
|
|
Income (Numerator) |
|
Shares (Denominator) |
|
Per Share Amount |
|
Income (Numerator) |
|
Shares (Denominator) |
|
Per Share Amount |
|
Income (Numerator) |
|
Shares (Denominator) |
|
Per Share Amount |
|
Income (Numerator) |
|
Shares (Denominator) |
|
Per Share Amount |
||||||||||||||||
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
||||||||||||||||||||||||||||||||
Basic EPS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Consolidated net loss attributable to common stockholders |
|
$ |
(6,089 |
) |
|
24,001,702 |
|
|
|
$ |
(12,034 |
) |
|
23,250,725 |
|
|
|
$ |
(7,941 |
) |
|
22,920,943 |
|
|
|
$ |
(6,835 |
) |
|
22,778,652 |
|
|
||||||||
Allocation of loss to participating restricted shares |
|
|
62 |
|
|
— |
|
|
|
|
161 |
|
|
— |
|
|
|
|
111 |
|
|
— |
|
|
|
|
97 |
|
|
— |
|
|
||||||||
Consolidated net loss attributable to unrestricted common stockholders |
|
$ |
(6,027 |
) |
|
24,001,702 |
|
$ |
(0.25 |
) |
|
$ |
(11,873 |
) |
|
23,250,725 |
|
$ |
(0.51 |
) |
|
$ |
(7,830 |
) |
|
22,920,943 |
|
$ |
(0.34 |
) |
|
$ |
(6,738 |
) |
|
22,778,652 |
|
$ |
(0.30 |
) |
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 |
|
$ |
(6,089 |
) |
|
24,244,147 |
|
$ |
(0.25 |
) |
|
$ |
(12,034 |
) |
|
23,565,351 |
|
$ |
(0.51 |
) |
|
$ |
(7,830 |
) |
|
22,920,943 |
|
$ |
(0.34 |
) |
|
$ |
(6,738 |
) |
|
22,778,652 |
|
$ |
(0.30 |
) |
____________________________________________________________
| (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 March 31, 2023 and December 31, 2022 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 |
||||||||||||||
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
||||||||
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
||||||||
INCOME |
|
|
|
|
|
|
|
|
||||||||
Interest income |
|
$ |
17,879 |
|
|
$ |
18,340 |
|
|
$ |
18,456 |
|
|
$ |
18,449 |
|
Interest expense |
|
|
(14,838 |
) |
|
|
(15,039 |
) |
|
|
(14,925 |
) |
|
|
(14,482 |
) |
Net interest income |
|
|
3,041 |
|
|
|
3,301 |
|
|
|
3,531 |
|
|
|
3,967 |
|
|
|
|
|
|
|
|
|
|
||||||||
Other income |
|
|
558 |
|
|
|
498 |
|
|
|
455 |
|
|
|
479 |
|
Total revenue, net |
|
|
3,599 |
|
|
|
3,799 |
|
|
|
3,986 |
|
|
|
4,446 |
|
|
|
|
|
|
|
|
|
|
||||||||
EXPENSE |
|
|
|
|
|
|
|
|
||||||||
Related party expense - loan servicing fees |
|
|
1,809 |
|
|
|
1,827 |
|
|
|
1,860 |
|
|
|
1,911 |
|
Related party expense - management fees |
|
|
1,940 |
|
|
|
2,001 |
|
|
|
1,828 |
|
|
|
1,722 |
|
Professional fees |
|
|
611 |
|
|
|
989 |
|
|
|
934 |
|
|
|
621 |
|
Other expense |
|
|
1,505 |
|
|
|
1,526 |
|
|
|
1,503 |
|
|
|
1,443 |
|
Total expense |
|
|
5,865 |
|
|
|
6,343 |
|
|
|
6,125 |
|
|
|
5,697 |
|
Consolidated operating loss |
|
$ |
(2,266 |
) |
|
$ |
(2,544 |
) |
|
$ |
(2,139 |
) |
|
$ |
(1,251 |
) |
Basic operating loss per common share |
|
$ |
(0.09 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.05 |
) |
Diluted operating loss per common share |
|
$ |
(0.09 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.05 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation to GAAP net loss |
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Consolidated operating loss |
|
$ |
(2,266 |
) |
|
$ |
(2,544 |
) |
|
$ |
(2,139 |
) |
|
$ |
(1,251 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Mark to market loss on joint venture refinancing |
|
|
(1,215 |
) |
|
|
(8,814 |
) |
|
|
(995 |
) |
|
|
— |
|
Realized loss on sale of securities |
|
|
(373 |
) |
|
|
— |
|
|
|
(2,974 |
) |
|
|
(3,836 |
) |
Net (increase)/decrease in the net present value of expected credit losses |
|
|
(330 |
) |
|
|
2,866 |
|
|
|
621 |
|
|
|
1,152 |
|
Fair value adjustment on put option liability |
|
|
(540 |
) |
|
|
(1,839 |
) |
|
|
(1,622 |
) |
|
|
(1,431 |
) |
Other adjustments |
|
|
(893 |
) |
|
|
(950 |
) |
|
|
(162 |
) |
|
|
(685 |
) |
Loss before provision for income taxes |
|
|
(5,617 |
) |
|
|
(11,281 |
) |
|
|
(7,271 |
) |
|
|
(6,051 |
) |
Provision for income taxes (benefit) |
|
|
(100 |
) |
|
|
181 |
|
|
|
93 |
|
|
|
232 |
|
Consolidated net income attributable to non-controlling interest |
|
|
(25 |
) |
|
|
(24 |
) |
|
|
(30 |
) |
|
|
(5 |
) |
Consolidated net loss attributable to the Company |
|
|
(5,542 |
) |
|
|
(11,486 |
) |
|
|
(7,394 |
) |
|
|
(6,288 |
) |
Dividends on preferred stock |
|
|
(547 |
) |
|
|
(548 |
) |
|
|
(547 |
) |
|
|
(547 |
) |
Consolidated net loss attributable to common stockholders |
|
$ |
(6,089 |
) |
|
$ |
(12,034 |
) |
|
$ |
(7,941 |
) |
|
$ |
(6,835 |
) |
Basic loss per common share |
|
$ |
(0.25 |
) |
|
$ |
(0.51 |
) |
|
$ |
(0.34 |
) |
|
$ |
(0.30 |
) |
Diluted loss per common share |
|
$ |
(0.25 |
) |
|
$ |
(0.51 |
) |
|
$ |
(0.34 |
) |
|
$ |
(0.30 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20231102393197/en/
Lawrence Mendelsohn
Chief Executive Officer
or
Mary Doyle
Chief Financial Officer
Mary.Doyle@aspencapital.com
503-444-4224
Source: Great Ajax Corp.
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