• Portfolio Growth: 44% increase in 2024, driven by $4.1 billion in acquisitions.
• Adjusted Interest Income: Rose 60% year-over-year, contributing $0.36 to EPS in Q4, a 10% improvement from a year earlier.
• Undepreciated Loss Per Share: $0.44 in Q4, compared to earnings of $0.39 in Q3.
• Adjusted Net Interest Income EPS Contribution: $0.36 per share in Q4, up from $0.32 in Q3 and $0.26 a year ago.
• Net Unrealized Losses: $131.6 million due to lower asset prices, offset by $92 million in derivative gains.
• Net Loss from Real Estate: Decreased from $7.5 million to $5.9 million in Q4.
• GAAP Book Value: Decreased by 5.6% during the quarter.
• Adjusted Book Value Per Share: Ended at $10.35, down 4.8% from Q3.
• Recourse Leverage Ratio: Increased to 3 times from 2.6 times as of September 30.
• Dividend: Maintained at $0.20 per common share for five consecutive quarters.
• Residential Investments in Q4: $923 million, with 61% in residential credit investments.
• Agency RMBS Portfolio: $3.1 billion market value, 42% of asset portfolio.
• BPL Bridge Loans: $4.8 billion invested since 2019, with $706 million revolving debt for future investments.
• BPL Rental Securitization: $295 million issued in Q4, first since 2022.

• Warning! GuruFocus has detected 5 Warning Signs with NYMT.

Release Date: February 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• New York Mortgage Trust Inc (NASDAQ:NYMT) achieved a 44% growth in its portfolio in 2024, driven by $4.1 billion in acquisitions.
• The company reported a 60% year-over-year increase in adjusted interest income, contributing $0.36 to EPS in Q4.
• NYMT successfully issued six securitizations in 2024 and started 2025 with a detailed bridge securitization.
• The company maintained a competitive dividend yield of over 13%, with a consistent dividend of $0.20 per share for five quarters.
• NYMT's agency RMBS portfolio grew to $3.1 billion, representing 42% of its asset portfolio, indicating strong investment in this sector.

Negative Points

• NYMT reported an undepreciated loss per share of $0.44 in Q4, compared to earnings of $0.39 in the previous quarter.
• The company recognized net unrealized losses of $131.6 million due to lower asset prices in its agency RMBS and residential loan portfolios.
• Foreclosed properties resulted in losses of $9.9 million or $0.11 per share, impacting overall earnings.
• GAAP book value decreased by 5.6% during the quarter, with adjusted book value per share down 4.8% from the previous quarter.
• The multi-family segment was a detractor of earnings in 2024, though restructuring efforts are underway to improve future performance.

Q & A Highlights

Q: What would the run rate earnings look like if you strip out the mark-to-market, unrealized gains, losses, and foreclosure costs? A: Kristine Nario-Eng, CFO, explained that the growth in earnings for 2024, with adjusted interest income increasing to $0.36 per share this quarter compared to $0.26 a year ago, supports alignment with the current dividend of $0.20. The recurring earnings are expected to align with this dividend.

Q: How would you characterize the excess liquidity at the moment? A: Nicholas Mah, President, stated that the goal is to rotate excess liquidity into both the agency market and residential credit. The focus is on shorter durations in residential credit through BPL bridge loans and taking advantage of the attractive spreads in the agency bond market.

Q: Can you talk about the GNA and portfolio expense outlook for 2025? A: Kristine Nario-Eng, CFO, mentioned that portfolio operating expenses decreased due to resolutions in the non-performing book. GNA expenses are expected to decrease further, with a projected run rate of $11 to $11.5 million per quarter.

Q: What is the update on the remaining multi-family assets within the JV? A: Nicholas Mah, President, noted that there are four remaining JV equity assets. Two assets in Florida are being marketed for sale, while two in Texas are seeing improved occupancy rates. The strategy is to wait for further improvement before selling the Texas assets.

Q: What is the outlook for pre-payment speeds in the RPL portfolio this year? A: Nicholas Mah, President, indicated that the RPL portfolio has shown consistent pre-payment speeds, ranging from 50s to 60s CPR, and expects this trend to continue in 2025, regardless of the rate outlook.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.