AG Mortgage Investment Trust, Inc. Reports Full Year and Fourth Quarter 2020 Results
AG Mortgage Investment Trust, Inc. (MITT) reported a net income of $1.16 per diluted share for Q4 2020, a significant increase from $0.44 in Q3 2020. Core earnings were $0.22 per share. As of December 31, 2020, the company's book value per share rose to $4.13, with an adjusted book value of $3.94, showing growth from previous quarters. The company reinstated its common dividend at $0.03 per share. Arc Home, in which MITT has a stake, achieved 136% year-over-year growth in origination volume, contributing to MITT's strong performance.
- Q4 2020 net income increased to $1.16 per diluted share from $0.44 in Q3 2020.
- Core earnings per share were $0.22 for Q4 2020.
- Book value per share rose to $4.13 from $3.34 in Q3 2020.
- Adjusted book value per share increased to $3.94 from $3.08 in Q3 2020.
- Common dividend reinstated at $0.03 per share.
- Arc Home reported 136% year-over-year growth in origination volume.
- None.
AG Mortgage Investment Trust, Inc. ("MITT," "we," the "Company," or "our") (NYSE: MITT) today reported financial results for the year and quarter ending December 31, 2020. The Company is a hybrid mortgage REIT that opportunistically invests in a diversified risk-adjusted portfolio of Credit Investments and Agency RMBS. Our Credit Investments include Residential Investments and Commercial Investments.
Q4 2020 PERFORMANCE AND HIGHLIGHTS
-
$1.16 of Net Income per diluted common share(1) for Q4 2020, as compared to$0.44 for Q3 2020 -
$0.22 of Core Earnings per share(1) for Q4 2020 -
$4.13 B ook Value per share and$3.94 Adjusted Book Value per share as of December 31, 2020 as compared to$3.34 and$3.08 as of September 30, 2020, respectively(1)- Adjusted Book Value gives effect to the liquidation preference of our preferred stock which does not reflect underwriting discounts and offering expenses incurred at issuance
- Increase from September 30, 2020 primarily due to mark-to-market gains on our Credit Investments and income generated at Arc Home
-
Fourth Quarter Capital Activity
-
Reinstated common dividend by declaring
$0.03 per share paid in January 2021 -
Declared and paid
$14.9 million of accrued and unpaid preferred dividends during the quarter -
Redeemed 1.3 million shares of preferred stock in exchange for 4.6 million shares of common stock and
$8.0 million of cash in two separate privately negotiated exchange offers -
Utilized ATM program to raise approximately
$2.4 million in net proceeds through issuance of approximately 0.7 million shares of common stock
-
Reinstated common dividend by declaring
-
Transactions Subsequent to Quarter End
-
Sold two commercial real estate loans in February for total proceeds of
$74.5 million , releasing unfunded commitments of approximately$28.8 million as of December 31, 2020 -
Purchased
$322.8 million of2.0% and2.5% fixed rate agency whole pools -
Purchased or entered into agreements to purchase
$73.4 million of Non-QM Loans,$27.8 million of which were sourced from Arc Home
-
Sold two commercial real estate loans in February for total proceeds of
MANAGEMENT REMARKS
"I am pleased with our performance during the fourth quarter of 2020 as we continued to execute on our goals of increasing book value while also maintaining strong liquidity," said David Roberts, Chief Executive Officer. "During the quarter, adjusted book value increased by
"We are excited to report that Arc Home finished 2020 with
PORTFOLIO UPDATE
Fourth Quarter Portfolio Update
-
$1.4 billion Investment Portfolio and 1.5x Economic Leverage Ratio as of December 31, 2020, as compared to$1.1 billion and 0.9x, respectively, as of September 30, 2020(2),(3),(4)- Investment portfolio and leverage increase driven by Agency RMBS purchases during the fourth quarter
-
$580.1 million of MTM recourse financing and$466.3 million of non-MTM non-recourse financing as of December 31, 2020, as compared to$242.8 million and$476.0 million , respectively, as of September 30, 2020 (a)-
At December 31, 2020, MITT had total liquidity of
$54.2 million inclusive of$47.9 million of cash and$6.3 million of unencumbered agency fixed rate securities, as compared to total liquidity of$82.4 million as of September 30, 2020
-
At December 31, 2020, MITT had total liquidity of
January Portfolio Update
-
As of January 31, 2021, we had an investment portfolio of approximately
$1.6 billion , consisting of approximately44% Agency RMBS,44% Residential Investments, and12% Commercial Investments -
As of January 31, 2021, our MTM recourse financing and Economic Leverage Ratio increased to approximately
$0.9 billion and 2.2x,(4) respectively -
Book Value per share and Adjusted Book Value per share as of January 31, 2021 are estimated to be in the range of
$4.35 t o$4.45 and$4.15 t o$4.25 , respectively(1)
(a) As of December 31, 2020, total financing of
ARC HOME UPDATE
-
MITT, alongside other Angelo Gordon funds, owns Arc Home,(7) a fully licensed mortgage originator. MITT indirectly owns approximately
44.6% of Arc Home -
Arc Home achieved
136% growth in origination volume in 2020 -
Arc Home generated net income of
$49.2 million in 2020 and$20.7 million in the fourth quarter-
Resulted in net income of
$10.4 million for MITT in the fourth quarter
-
Resulted in net income of
-
Angelo Gordon's investment in Arc Home generated
$14.5 million of liquidity, of which$6.5 million was distributed to MITT - The table below provides a summary of Arc Home's performance throughout 2020 compared to 2019:
|
|
2019 FY |
|
2020 Q1 |
|
2020 Q2 |
2020 Q3 |
2020 Q4 |
2020 FY |
|||||||||
Origination Volume |
|
|
|
|
|
|
|
|
|
|||||||||
Lock Dollars $B |
|
2.2 |
|
|
0.9 |
|
|
1.4 |
|
1.6 |
|
1.4 |
|
5.3 |
|
|||
Funding Dollars $B |
|
1.6 |
|
|
0.4 |
|
|
0.9 |
|
1.3 |
|
1.2 |
|
3.8 |
|
|||
Funding by Channel(a) |
|
|
|
|
|
|
|
|
|
|||||||||
Retail/Direct |
|
20.7 |
% |
|
37.2 |
% |
|
35.8 |
% |
32.5 |
% |
27.0 |
% |
32.0 |
% |
|||
Wholesale |
|
34.1 |
% |
|
34.7 |
% |
|
35.2 |
% |
34.3 |
% |
38.7 |
% |
35.9 |
% |
|||
Correspondent |
|
45.2 |
% |
|
28.1 |
% |
|
29.0 |
% |
33.2 |
% |
34.3 |
% |
32.0 |
% |
|||
Funding By Product(a) |
|
|
|
|
|
|
|
|
|
|||||||||
Conventional |
|
62.7 |
% |
|
58.3 |
% |
|
84.8 |
% |
84.7 |
% |
78.6 |
% |
79.8 |
% |
|||
Government |
|
34.5 |
% |
|
22.8 |
% |
|
15.0 |
% |
14.7 |
% |
13.9 |
% |
15.4 |
% |
|||
Non-Agency |
|
2.8 |
% |
|
18.9 |
% |
|
0.2 |
% |
0.6 |
% |
7.5 |
% |
4.8 |
% |
|||
Gain on Sale Margin |
|
145bps |
|
(8bps) |
|
337bps |
356bps |
353bps |
310bps |
(a) Represents the weighted average based on quarterly funding dollars for 2019 and 2020
KEY STATISTICS
($ in millions) |
|
December 31, 2020 |
||
Investment portfolio(2) |
|
$ |
1,395.6 |
|
Financing arrangements(3) |
|
680.8 |
|
|
Total Economic Leverage(3) |
|
629.7 |
|
|
Stockholders’ equity |
|
409.7 |
|
|
GAAP Leverage Ratio |
|
2.4x |
||
Economic Leverage Ratio(4) |
|
1.5x |
||
Book value, per share(1) |
|
$ |
4.13 |
|
Adjusted book value, per share(1) |
|
$ |
3.94 |
|
Dividend, per share(1) |
|
$ |
0.03 |
|
Duration Gap(5) |
|
0.58 |
|
INVESTMENT PORTFOLIO
The following summarizes the Company’s investment portfolio as of December 31, 2020(2):
($ in millions) |
|
Fair Value |
|
Percent of
|
|
Allocated
|
|
Percent of
|
Agency RMBS(a) |
|
|
|
|
|
|
|
|
Residential Investments(a) |
|
691.5 |
|
|
|
229.2 |
|
|
Commercial Investments |
|
182.3 |
|
|
|
99.6 |
|
|
Total |
|
|
|
|
|
|
|
|
(a) As of December 31, 2020, the table above includes fair value of
DIVIDEND
On November 6, 2020, the Company's board of directors declared all dividends in arrears for the second and third quarters and declared fourth quarter dividends in the amount of
On December 22, 2020, the Company’s board of directors declared a fourth quarter dividend of
STOCKHOLDER CALL
The Company invites stockholders, prospective stockholders and analysts to participate in MITT’s fourth quarter earnings conference call on February 19, 2021 at 8:30 am Eastern Time. The stockholder call can be accessed by dialing (888) 424-8151 (U.S. domestic) or 1 (847) 585-4422 (international). Please enter code number 6358 711.
A presentation will accompany the conference call and will be available on the Company’s website at www.agmit.com. Select the Q4 2020 Earnings Presentation link to download the presentation in advance of the stockholder call.
For those unable to listen to the live call, an audio replay will be available following on February 19, 2021 through March 21, 2021. To access the replay, please go to https://onlinexperiences.com/Launch/QReg/ShowUUID=376D6CAC-DED7-4DCE-BE44-8DC552937178&LangLocaleID=1033. The replay passcode is 50100331.
ABOUT AG MORTGAGE INVESTMENT TRUST, INC.
AG Mortgage Investment Trust, Inc. is a hybrid mortgage REIT that opportunistically invests in a diversified risk-adjusted portfolio of Credit Investments and Agency RMBS. Its Credit Investments include Residential Investments and Commercial Investments. AG Mortgage Investment Trust, Inc. is externally managed and advised by AG REIT Management, LLC, a subsidiary of Angelo, Gordon & Co., L.P., an SEC-registered investment adviser that specializes in alternative investment activities.
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FAQ
What were the financial results for MITT in Q4 2020?
How did MITT's book value change in Q4 2020?
Did MITT reinstate any dividends in Q4 2020?
What growth did Arc Home achieve in 2020?
What was MITT's adjusted book value per share as of December 31, 2020?