New York Mortgage Trust Inc (NYMT) Reports Net Loss in Q3 2023
New York Mortgage Trust Inc (NASDAQ:NYMT) reported a net loss attributable to common stockholders of $94.8 million for Q3 2023.
The company's net interest income for the quarter was $16.8 million.
NYMT's book value per common share at the end of the period was $11.26.
The company purchased approximately $946.2 million of Agency RMBS and approximately $187.8 million in residential loans during the quarter.
On November 1, 2023, New York Mortgage Trust Inc (NASDAQ:NYMT) released its earnings report for the third quarter of 2023. The company reported a net loss attributable to common stockholders of $94.8 million, or $1.04 per share. The undepreciated loss stood at $92.6 million, or $1.02 per common share. The comprehensive loss attributable to common stockholders was $94.8 million, or $1.04 per share.
Financial Highlights
The company's interest income for the quarter was $65.2 million, while the interest expense was $48.4 million, resulting in a net interest income of $16.8 million. The yield on average interest earning assets was 6.03%, and the net interest spread was 0.90%. The book value per common share at the end of the period was $11.26, while the adjusted book value per common share was $12.93. The economic return on book value was -7.07%, and the economic return on adjusted book value was -7.61%.
Investing and Financing Activities
During the quarter, NYMT purchased approximately $946.2 million of Agency RMBS and approximately $187.8 million in residential loans. The company also received approximately $25.8 million in proceeds from redemptions of Mezzanine Lending investments. In terms of financing activities, NYMT entered into a repurchase agreement with a new counterparty with a maximum aggregate purchase price of $200.0 million to fund the purchase of residential loans. The company also repurchased 560,342 shares of common stock for approximately $5.0 million at an average repurchase price of $8.93 per common share and 63,540 shares of preferred stock for approximately $1.4 million at an average repurchase price of $22.23 per preferred share.
Management Commentary
Jason Serrano, Chief Executive Officer, commented on the company's performance. He stated,
Fixed income investment valuations suffered in the third quarter against heightened rate volatility, leading to low transaction volumes across the credit spectrum. With higher rates, negative investor sentiment poured into the market, bringing asset values lower. As a result, our adjusted book value declined by 9.71% in the third quarter, led by lower asset valuations and impairment losses related to our multi-family joint venture equity portfolio."
Capital Allocation
As of September 30, 2023, the company's total investment portfolio carrying value was $4.7 billion, with residential loans accounting for the largest portion at $2.99 billion. The company's net company capital allocated was $1.57 billion, with the company recourse leverage ratio standing at 1.3x and the portfolio recourse leverage ratio at 1.2x.
For more detailed financial information, please refer to the company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2023, which is expected to be filed with the Securities and Exchange Commission on or about November 3, 2023.
Explore the complete 8-K earnings release (here) from New York Mortgage Trust Inc for further details.
This article first appeared on GuruFocus.
