AG Mortgage Investment Trust, Inc. Reports Third Quarter 2024 Results
AG Mortgage Investment Trust (NYSE: MITT) reported its Q3 2024 financial results, achieving a 3.9% economic return on equity. The company posted a book value of $10.58 per share and net income of $0.40 per diluted common share. MITT's investment portfolio stood at $6.8 billion with $6.4 billion in financing. The company maintained strong liquidity of $119.7 million and declared a quarterly dividend of $0.19 per common share. The company's strategy continues to focus on originating and securitizing residential whole loans.
AG Mortgage Investment Trust (NYSE: MITT) ha riportato i risultati finanziari del terzo trimestre 2024, registrando un ritorno economico sul capitale proprio del 3,9%. L'azienda ha riportato un valore contabile di 10,58$ per azione e un utile netto di 0,40$ per azione ordinaria diluita. Il portafoglio di investimenti di MITT ammontava a 6,8 miliardi di dollari con 6,4 miliardi di dollari in finanziamenti. L'azienda ha mantenuto una solida liquidità di 119,7 milioni di dollari e ha dichiarato un dividendo trimestrale di 0,19$ per azione ordinaria. La strategia dell'azienda continua a focalizzarsi sull'origine e sulla cartolarizzazione di prestiti ipotecari residenziali.
AG Mortgage Investment Trust (NYSE: MITT) reportó sus resultados financieros del tercer trimestre de 2024, logrando un retorno económico sobre el capital del 3,9%. La compañía reportó un valor contable de 10,58$ por acción y un ingreso neto de 0,40$ por acción común diluida. La cartera de inversiones de MITT se situó en 6,8 mil millones de dólares con 6,4 mil millones de dólares en financiamiento. La compañía mantuvo una sólida liquidez de 119,7 millones de dólares y declaró un dividendo trimestral de 0,19$ por acción común. La estrategia de la compañía sigue enfocándose en originar y titulizar préstamos hipotecarios residenciales.
AG Mortgage Investment Trust (NYSE: MITT)는 2024년 3분기 재무 결과를 발표하며 3.9%의 자본 경제 수익률을 달성했습니다. 회사는 주당 10.58$의 장부 가치를 기록했으며, 희석된 보통주 기준으로 주당 0.40$의 순이익을 올렸습니다. MITT의 투자 포트폴리오는 68억 달러에 달하며 64억 달러의 자금을 마련했습니다. 이 회사는 1억 1970만 달러의 강력한 유동성을 유지하고 있으며, 보통주당 0.19$의 분기 배당금을 선언했습니다. 회사의 전략은 주택 전세 대출의 기원 및 증권화에 계속 집중하고 있습니다.
AG Mortgage Investment Trust (NYSE: MITT) a annoncé ses résultats financiers pour le troisième trimestre 2024, réalisant un rendement économique sur fonds propres de 3,9%. L'entreprise a affiché une valeur comptable de 10,58$ par action et un revenu net de 0,40$ par action ordinaire diluée. Le portefeuille d'investissements de MITT s'élevait à 6,8 milliards de dollars avec 6,4 milliards de dollars en financement. L'entreprise a maintenu une forte liquidité de 119,7 millions de dollars et a déclaré un dividende trimestriel de 0,19$ par action ordinaire. La stratégie de l'entreprise continue de se concentrer sur l'origine et la titrisation de prêts hypothécaires résidentiels.
AG Mortgage Investment Trust (NYSE: MITT) hat seine finanziellen Ergebnisse für das 3. Quartal 2024 veröffentlicht und einen wirtschaftlichen Return on Equity von 3,9% erzielt. Das Unternehmen meldete einen Buchwert von 10,58$ pro Aktie und einen Nettogewinn von 0,40$ pro verwässerter Stammaktie. Das Anlageportfolio von MITT belief sich auf 6,8 Milliarden Dollar mit 6,4 Milliarden Dollar an Finanzierungen. Das Unternehmen hielt eine starke Liquidität von 119,7 Millionen Dollar und erklärte eine vierteljährliche Dividende von 0,19$ pro Stammaktie. Die Strategie des Unternehmens konzentriert sich weiterhin auf die Herkunft und Verbriefung von Wohnhypothekendarlehen.
- Economic return on equity of 3.9% for Q3 2024
- Net Income of $0.40 per diluted common share
- Strong liquidity position of $119.7 million
- Successfully paid off $79.1 million in Legacy WMC Convertible Senior Unsecured Notes
- Low Net Interest Margin of 0.6%
- High GAAP Leverage Ratio of 11.8x
Insights
AG Mortgage Investment Trust delivered solid Q3 2024 results with notable metrics: economic return on equity of
Key strengths include ample liquidity of
MANAGEMENT REMARKS
“MITT delivered yet another strong quarter as we continue to execute the core business strategy of originating and securitizing residential whole loans, with MITT generating an economic return on equity of
THIRD QUARTER FINANCIAL HIGHLIGHTS
-
$10.58 -
Quarterly economic return on equity of
3.9% (2) -
Book value is calculated using stockholders’ equity less the liquidation preference of our cumulative redeemable preferred stock of
$228.0 million
-
Quarterly economic return on equity of
-
$0.40 -
$0.17
INVESTING AND FINANCING HIGHLIGHTS
-
$6.8 billion -
0.6% Net Interest Margin, which includes a0.1% benefit from the net interest component of our interest rate swaps(6)
-
-
$31.0 million -
$6.4 billion -
$5.6 billion $0.8 billion - 11.8x GAAP Leverage Ratio and 1.5x Economic Leverage Ratio(8)
-
Paid off the
$79.1 million
-
-
$119.7 million
DIVIDENDS
-
On September 16, 2024, declared a third quarter dividend of
$0.19 -
On November 4, 2024, declared quarterly cash dividends of
$0.51 563$0.50 $0.72 5061
STOCKHOLDER CALL
The Company invites stockholders, prospective stockholders, and analysts to participate in MITT’s third quarter earnings conference call on Tuesday, November 5, 2024 at 8:00 a.m. Eastern Time.
To participate in the call by telephone, please dial (800) 579-2543 at least five minutes prior to the start time. International callers should dial (785) 424-1789. The Conference ID is MITTQ324. To listen to the live webcast of the conference call, please go to https://event.on24.com/wcc/r/4717833/1E880CC895F6CB36B08B5EBF90951240 and register using the same Conference ID.
The Company issued an earnings presentation detailing its third quarter 2024 financial results, which is available on the Company’s website, www.agmit.com, under "Presentations" in the "News & Presentations" section.
For those unable to listen to the live call, an audio replay will be available on November 5, 2024 through 8:30 a.m. Eastern Time on December 5, 2024. To access the replay, please go to the Company’s website at www.agmit.com.
ABOUT AG MORTGAGE INVESTMENT TRUST, INC.
AG Mortgage Investment Trust, Inc. is a residential mortgage REIT with a focus on investing in a diversified risk-adjusted portfolio of residential mortgage-related assets in the
Additional information can be found on the Company’s website at www.agmit.com.
ABOUT TPG ANGELO GORDON
Founded in 1988, Angelo, Gordon & Co., L.P. ("TPG Angelo Gordon") is a diversified credit and real estate investing platform within TPG. The platform currently manages approximately
FORWARD LOOKING STATEMENTS
This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with the safe harbor provisions. Words such as "expects," "endeavor," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "will," "should," "may," "projects," "could," "estimates," "continue" or variations of such words and other similar expressions are intended to identify such forward-looking statements, which generally are not historical in nature, but not all forward-looking statements include such identifying words. Forward-looking statements are based on our beliefs, assumptions and expectations of our future operations, business strategies, performance, financial condition, liquidity and prospects, taking into account information currently available to us, and are not guarantees of future performance. Forward-looking statements regarding the Company include, but are not limited to, our levels of liquidity, our ability to continue to execute on our prudent and disciplined approach to employing leverage, and whether the Company is well positioned to take advantage of exciting new opportunities in the residential mortgage space to drive earnings power for the benefit of the Company's shareholders. These forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. The Company believes these factors include, without limitation, changes in general economic or market conditions, including changes in inflation, interest rates and the fair value of our assets; changes in government regulations affecting our business; the Company’s ability to grow its residential loan portfolio; changes in prepayment rates and mortgage default rates on the Company’s assets; financing needs and arrangements; and the risk factors contained in the Company’s filings with the Securities and Exchange Commission ("SEC"), including those described under the headings "Forward-Looking Statements" and "Risk Factors" in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and in other reports and documents filed by the Company with the SEC from time to time, which are accessible on the SEC's website, http://www.sec.gov/. Moreover, other risks and uncertainties of which the Company is not currently aware may also affect the Company’s forward-looking statements and may cause actual results and the timing of events to differ materially from those anticipated. The forward-looking statements made in this press release are made only as of the date of this press release or as of the dates indicated in the forward-looking statements, even if they are subsequently made available by the Company on its website or otherwise. The Company undertakes no obligation to update or supplement any forward-looking statements to reflect actual results, new information, future events, changes in its expectations or other circumstances that exist after the date as of which the forward-looking statements were made, except as required by law. All financial information in this press release is as of September 30, 2024, unless otherwise indicated.
NON-GAAP FINANCIAL MEASURES
This press release contains EAD and Economic Leverage Ratio, non-GAAP financial measures. Our presentation of these measures may not be comparable to similarly-titled measures of other companies, who may use different calculations. These non-GAAP measures should not be considered a substitute for, or superior to, the financial measures calculated in accordance with GAAP. Our GAAP financial results and the reconciliations from these results should be carefully evaluated.
Earnings Available for Distribution(3),(4)
A reconciliation of GAAP Net Income/(loss) available to common stockholders to EAD is set forth below (in thousands, except per share data).
|
Three Months Ended September 30, 2024 |
||||||
|
Amount |
|
Per Diluted Share |
||||
Net Income/(loss) available to common stockholders |
$ |
11,924 |
|
|
$ |
0.40 |
|
Add (Deduct): |
|
|
|
||||
Net realized (gain)/loss |
|
10,788 |
|
|
|
0.37 |
|
Net unrealized (gain)/loss |
|
(19,700 |
) |
|
|
(0.66 |
) |
Transaction related expenses and deal related performance fees |
|
709 |
|
|
|
0.02 |
|
Equity in (earnings)/loss from affiliates |
|
849 |
|
|
|
0.03 |
|
EAD from equity method investments(a), (b) |
|
306 |
|
|
|
0.01 |
|
Earnings available for distribution |
$ |
4,876 |
|
|
$ |
0.17 |
|
(a)
(b) We eliminated
Economic Leverage Ratio(8)
The calculation in the table below divides GAAP leverage and Economic Leverage by our GAAP stockholders’ equity to derive our leverage ratios. The following table presents a reconciliation of our GAAP Leverage ratio to our Economic Leverage ratio ($ in thousands).
September 30, 2024 |
|
Leverage |
|
Stockholders’ Equity |
|
Leverage Ratio |
|||
Securitized debt, at fair value |
|
$ |
5,497,552 |
|
|
|
|
|
|
GAAP Financing arrangements |
|
|
789,499 |
|
|
|
|
|
|
Senior unsecured notes |
|
|
95,548 |
|
|
|
|
|
|
Restricted cash posted on Financing arrangements |
|
|
(3,283 |
) |
|
|
|
|
|
GAAP Leverage |
|
$ |
6,379,316 |
|
|
$ |
540,085 |
|
11.8x |
Financing arrangements through affiliated entities |
|
|
3,540 |
|
|
|
|
|
|
Non-recourse financing arrangements(a) |
|
|
(5,550,887 |
) |
|
|
|
|
|
Economic Leverage |
|
$ |
831,969 |
|
|
$ |
540,085 |
|
1.5x |
(a) Non-recourse financing arrangements include securitized debt and other non-recourse financing arrangements.
Footnotes
(1) Book value is calculated using stockholders’ equity less the liquidation preference of our cumulative redeemable preferred stock of
(2) The economic return on equity represents the change in book value per share during the period, plus the common dividends per share declared over the period, divided by book value per share from the prior period.
(3) Diluted per share figures are calculated using diluted weighted average outstanding shares in accordance with GAAP.
(4) We define EAD, a non-GAAP measure, as Net Income/(loss) available to common stockholders excluding (i) (a) unrealized gains/(losses) on loans, real estate securities, derivatives and other investments, inclusive of our investment in AG Arc, and (b) net realized gains/(losses) on the sale or termination of such instruments, (ii) any transaction related expenses incurred in connection with the acquisition, disposition, or securitization of our investments as well as transaction related expenses incurred in connection with the WMC acquisition, (iii) accrued deal-related performance fees payable to third party operators to the extent the primary component of the accrual relates to items that are excluded from EAD, such as unrealized and realized gains/(losses), (iv) realized and unrealized changes in the fair value of Arc Home's mortgage servicing rights and the derivatives intended to offset changes in the fair value of those net mortgage servicing rights, (v) deferred taxes recognized at our taxable REIT subsidiaries, if any, (vi) any bargain purchase gains recognized, and (vii) certain other nonrecurring gains or losses. Items (i) through (vii) above include any amount related to those items held in affiliated entities. Transaction related expenses referenced in (ii) above are primarily comprised of costs incurred prior to or at the time of executing our securitizations and acquiring or disposing of residential mortgage loans. These costs are nonrecurring and may include underwriting fees, legal fees, diligence fees, and other similar transaction related expenses. Recurring expenses, such as servicing fees, custodial fees, trustee fees and other similar ongoing fees are not excluded from earnings available for distribution. Management considers the transaction related expenses to be similar to realized losses incurred at the acquisition, disposition, or securitization of an asset and does not view them as being part of its core operations. Management views the exclusion described in (iv) above to be consistent with how it calculates EAD on the remainder of its portfolio. Management excludes all deferred taxes because it believes deferred taxes are not representative of current operations. EAD includes the net interest income and other income earned on our investments on a yield adjusted basis, including TBA dollar roll income/(loss) or any other investment activity that may earn or pay net interest or its economic equivalent.
(5) Our Investment Portfolio consists of Residential Investments, Agency RMBS, and WMC Legacy Commercial Investments, all of which are held at fair value. Our financing is inclusive of Securitized Debt, which is held at fair value, Financing Arrangements, and Senior Unsecured Notes. Throughout this press release where we disclose our Investment Portfolio and the related financing, we have presented this information inclusive of (i) securities owned through investments in affiliates that are accounted for under GAAP using the equity method and, where applicable, (ii) long positions in TBAs, which are accounted for as derivatives under GAAP. This press release excludes investments through AG Arc LLC unless otherwise noted.
(6) Net interest margin is calculated by subtracting the weighted average cost of funds on our financing from the weighted average yield for our Investment Portfolio, which excludes cash held.
(7) We invest in Arc Home LLC, a licensed mortgage originator, through AG Arc LLC, one of our equity method investees. Our investment in AG Arc LLC represents a
(8) We define GAAP leverage as the sum of (1) Securitized debt, at fair value, (2) GAAP Financing arrangements, net of any restricted cash posted on such financing arrangements, (3) Senior unsecured notes, and (4) the amount payable on purchases that have not yet settled less the financing remaining on sales that have not yet settled. We define Economic Leverage, as the sum of: (i) our GAAP leverage, exclusive of any fully non-recourse financing arrangements, (ii) financing arrangements held through affiliated entities, net of any restricted cash posted on such financing arrangements, exclusive of any financing utilized through AG Arc, inclusive of any adjustment related to unsettled trades as described in (4) in the previous sentence, and exclusive of any non-recourse financing arrangements and (iii) our net TBA position (at cost), if any.
(9) Total liquidity includes
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AG Mortgage Investment Trust, Inc.
Investor Relations
(212) 692-2110
ir@agmit.com
Source: AG Mortgage Investment Trust, Inc.
FAQ
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