Great Ajax Corp. Announces Results for the Quarter Ended September 30, 2024 and Announces Intent to Rebrand to Rithm Property Trust Inc.

NEW YORK--(BUSINESS WIRE)--October 21, 2024-- 

Great Ajax Corp. (NYSE: AJX, "Great Ajax" or the "Company") today announced the following financial results for the quarter ended September 30, 2024.

Third Quarter Financial Highlights:

   -- GAAP net loss attributable to common stockholders of $(8.0) million, or 
      $(0.18) per diluted share1 
 
   -- Earnings Available for Distribution of $(5.4) million or $(0.12) per 
      diluted common share1,2 
 
   -- Book value per common share of $5.47 at September 30, 20241 
 
   -- Paid a common dividend of $2.7 million, or $0.06 per common share 
 
                                    Q3 2024           Q2 2024 
                                ----------------  ---------------- 
Summary of Operating Results 
   GAAP Net Loss per Diluted 
    Common Share(1)             $(0.18)           $(0.32) 
   GAAP Net Loss                $ (8.0)  million  $(12.7)  million 
 
Non-GAAP Results 
   Earnings Available for 
    Distribution per Diluted 
    Common Share(1,2)           $(0.12)           $(0.24) 
   Earnings Available for 
    Distribution(2)             $ (5.4)  million  $ (9.6)  million 
 
Book Value 
   Book Value per Common 
    Share(1)                    $ 5.47            $ 5.56 
   Book Value                   $246.1   million  $253.6   million 
 
Common Dividend 
   Common Dividend per Share    $ 0.06            $ 0.06 
   Common Dividend              $  2.7   million  $  2.2   million 
 
 
 
Per common share calculations for both GAAP net loss and Earnings Available 
for Distribution are based on 45,327,254 and 39,344,128 weighted average 
diluted shares for the quarters ended September 30, 2024 and June 30, 2024, 
respectively. Per share calculations of Book Value are based on 44,978,969 and 
45,605,549 common shares outstanding as of September 30, 2024 and June 30, 
2024, respectively. Earnings Available for Distribution is a non-GAAP 
financial measure. For a reconciliation of Earnings Available for Distribution 
to GAAP net loss, as well as an explanation of this measure, please refer to 
the section entitled Non-GAAP Financial Measures and Reconciliation to GAAP 
Net Loss. 
 

"When we completed the strategic transaction with Great Ajax, we were clear about our mission: to transform the Company from a legacy residential mortgage vehicle into an opportunistic real estate platform, " said Michael Nierenberg, Chief Executive Officer of Rithm Capital Corp. "During the third quarter, we made significant progress towards doing so by selling down $148 million UPB of legacy assets and growing our commercial real estate debt portfolio to over $100 million UPB. We are excited about the future of the Company and are committed to providing shareholders with growth and value creation."

Third Quarter Company Highlights:

   -- Loan and Security Sales: Sold residential loans and securities with 
      approximately $148.0 million in unpaid principal balance ("UPB"), 
      generating net proceeds of approximately $31.7 million. 
 
   -- Commercial Real Estate Investments: Acquired $81.9 million in UPB of 
      commercial mortgage-backed securities ("CMBS"), bringing our total 
      investment in CMBS to $101.9 million, as we continue to execute on our 
      transition into the commercial real estate sector. 
 
   -- Capital Activity: On September 6, 2024, the Company filed a shelf 
      registration statement with the U.S. Securities and Exchange Commission 
      ("SEC") to increase the aggregate maximum offering price of its common 
      stock, preferred stock, debt securities, warrants and units to $400 
      million. The filed shelf registration statement when declared effective 
      by the SEC will replace the Company's prior shelf registration statement. 
      The securities described in the recently filed shelf registration 
      statement may not be sold and offers to buy may not be accepted prior to 
      the time the registration statement becomes effective. This press release 
      shall not constitute an offer to sell or the solicitation of an offer to 
      buy, nor shall there be any sale of the securities in any state or other 
      jurisdiction in which such offer, solicitation, or sale would be unlawful 
      prior to registration or qualification under the securities laws of any 
      such state or other jurisdiction. 
 
   -- Dividend Declaration: On October 18, 2024, our board of directors 
      declared a cash dividend of $0.06 per common share to be paid on November 
      29, 2024, to stockholders of record as of November 15, 2024. 

Rebranding to Rithm Property Trust

In connection with the Company's strategic transaction with Rithm Capital Corp. ("Rithm"), the Company expects to change its name and rebrand as Rithm Property Trust Inc. ("Rithm Property Trust") and to change its ticker symbol on the New York Stock Exchange to "RPT". The rebranding initiative highlights a new chapter in the Company's evolution as an opportunistic real estate investment platform.

The name change is expected to take effect during the fourth quarter of 2024, pursuant to customary notices.

Earnings Conference Call

Great Ajax will host a conference call at 8:00 AM ET on Monday, October 21, 2024, to review its financial results for the third quarter of 2024. The conference call may be accessed by dialing 1-844-746-0740 (from within the U.S.) or 1-412-317-5106 (from outside of the U.S.) ten minutes prior to the scheduled start of the call; please reference "Great Ajax Third Quarter 2024 Earnings Call." In addition, participants are encouraged to pre-register for the conference call at https://dpregister.com/sreg/10193667/fdb89356c2.

A simultaneous webcast of the conference call will be available to the public on a listen-only basis at www.greatajax.com. Please allow extra time prior to the call to visit the website and download any necessary software required to listen to the internet broadcast.

A telephonic replay of the conference call will also be available two hours following the call's completion through 11:59 P.M. Eastern Time on Monday, October 28 2024, by dialing 1-877-344-7529 (from within the U.S.) or 1-412-317-0088 (from outside of the U.S.); please reference access code "6885966."

About Great Ajax Corp.

Great Ajax Corp. is a real estate investment platform externally managed by RCM GA Manager LLC, an affiliate of Rithm. Great Ajax has historically focused on acquiring, investing in and managing re-performing loans and non-performing loans secured by single-family residences and commercial properties. In connection with its recent strategic transaction with Rithm, the Company expects to transition to a flexible commercial real estate focused investment strategy. Great Ajax is a Maryland corporation that is organized and conducts its operations to qualify as a real estate investment trust ("REIT") for federal income tax purposes.

Forward-Looking Statements

This press release contains certain information which constitutes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "may," "will," "seek," "believes," "intends," "expects," "projects," "anticipates," "plans" and "future" or similar expressions are intended to identify forward-looking statements, including the Company's expectation of the effective date of the name change and its new ticker symbol on the New York Stock Exchange. These statements are not historical facts. These forward-looking statements represent management's current expectations regarding future events and are subject to the inherent uncertainties in predicting future results and conditions, many of which are beyond our control. Accordingly, you should not place undue reliance on any forward-looking statements contained herein. For a discussion of some of the risks and important factors that could affect such forward-looking statements see the sections entitled "Cautionary Statement Regarding Forward-Looking Statements", "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's most recent annual and quarterly reports and other filings, including the Company's recent proxy statements, filed with the Securities and Exchange Commission. The Company expressly disclaims any 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 
                 CONSOLIDATED STATEMENTS OF OPERATIONS 
            (Dollars in thousands except per share amounts) 
                              (Unaudited) 
 
                                           Three months ended 
                                 --------------------------------------- 
                                  September 30, 2024     June 30, 2024 
                                 --------------------  ----------------- 
Revenues: 
Interest income                   $           12,348    $      11,915 
Interest expense                              (8,660)         (11,567) 
                                     ---------------       ---------- 
   Net interest income                         3,688              348 
Net change in the allowance for 
 credit losses                                  (857)              -- 
                                     ---------------       ---------- 
   Net interest income after 
    the net change in the 
    allowance for credit 
    losses                                     2,831              348 
Loss from investments in 
 affiliates                                     (624)            (974) 
Mark to market loss on mortgage 
 loans held-for-sale, net                     (1,712)          (6,488) 
Other loss                                    (3,278)          (1,844) 

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