New York Mortgage Trust, Inc. (NYMT), a real estate investment trust (:REIT), recently announced an underwritten public offering of 3,750,000 million shares to increase its liquidity. To cover up over allotments, New York Mortgage also plans to offer an option to underwriters of purchasing an additional 562,500 shares.
Ladenburg Thalmann & Co. Inc, a subsidiary of Ladenburg Thalmann Financial Services Inc. (LTS), has been appointed as the financial manager for the offering.
New York Mortgage expects to utilize the proceeds generated from the transaction to acquire certain assets of the company, including commercial mortgage loans and commercial mortgage-backed securities (CMBS) and Agency residential mortgage-backed securities (RMBS). The proceeds generated could also be used for working capital purposes.
As of March 31, 2012, the company had $200.8 million of residential mortgage loans held in securitization trusts permanently financed with $194.8 million of residential collateralized debt obligations. As of March 31, 2012, New York Mortgage’s cash position stood at $8.9 million.
During first quarter 2012, the company reported earnings of $5.8 million or 42 cents per share compared with $2.5 million or 27 cents per share in the prior-year quarter.
New York Mortgage together with its subsidiaries operates in the United States. It invests primarily in real estate-related assets, including agency residential adjustable rate mortgage-backed securities issued by a government-sponsored enterprise of the United States, prime credit quality residential adjustable-rate mortgage loans and non-agency mortgage-backed securities.
New York Mortgagecurrently retains a Zacks #4 Rank, which translates into a short-term Strong Sell rating. We also have a long-term Neutral recommendation on the stock. One of its competitors, MFA Financial, Inc. (MFA) currently retains a Zacks #3 Rank, which implies a short-term Hold rating.
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