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NY

NEW YORK MORTGAGE TRUST, INC. (NYMT)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 delivered $0.33 GAAP EPS and EAD of $0.20 per share, with recurring earnings meeting the $0.20 dividend for the first time after a two-year portfolio repositioning. Book value per share rose to $9.37 and adjusted book value to $10.43 .
  • Deployment accelerated: ~$1.5B Agency RMBS (5.35% avg coupon) and ~$396.8M residential loans (9.33% avg gross coupon) were purchased; two loan securitizations and an $82.5M 9.125% senior notes issuance strengthened funding and added ~$326M net securitization proceeds .
  • Spread-driven tailwinds (wider Agency RMBS spreads into April) and operating efficiencies (lower G&A run-rate) position NYMT to grow EAD through 2025 while preserving liquidity; excess liquidity capacity was ~$407M at quarter-end (cash plus incremental financing) .
  • Estimates context: S&P Global consensus for EPS/revenue was unavailable for NYMT in our database mapping at this time; as a result, an estimates vs. actual comparison is not provided (we will update when S&P mapping is enabled).

What Went Well and What Went Wrong

  • What Went Well
    • EAD covered the dividend: “recurring earnings reached a level this quarter consistent with the Company’s dividend,” driven by portfolio shift to liquid Agency RMBS and short-duration BPL loans .
    • Capital deployment and funding execution: ~$1.5B Agency RMBS, $396.8M loans, two securitizations ($326.3M net proceeds), and $82.5M senior notes enhanced earnings power and liquidity .
    • Book value and adjusted book value improved QoQ to $9.37 and $10.43; net interest income rose to $33.1M; adjusted net interest income increased on higher-earning assets .
  • What Went Wrong
    • Mark-to-market and derivative headwinds: Net realized losses of $41.1M (foreclosed properties, securities sales) and net losses on derivatives of $46.8M offset partially by $118.2M unrealized gains as rates fell .
    • Net interest spread compressed 5 bps QoQ to 1.32%, reflecting a higher Agency RMBS allocation (lower yield vs. BPL) despite a 5 bps improvement in average financing cost .
    • Residual real estate drag persisted (though smaller): net loss from real estate improved to $(2.2)M vs. $(5.9)M in Q4 as multi-family JV equity wind-down reduced the drag; $3.9M real estate impairment recorded .

Financial Results

Overall P&L and balance metrics (oldest → newest)

MetricQ3 2024Q4 2024Q1 2025
Interest Income ($USD Millions)$108.4 $118.3 $129.7
Net Interest Income ($USD Millions)$20.2 $26.7 $33.1
Net Income Attributable to Common ($USD Millions)$32.4 $(41.8) $30.3
Diluted EPS ($)$0.36 $(0.46) $0.33
Yield on Avg Interest Earning Assets (%)6.69% 6.57% 6.47%
Net Interest Spread (%)1.32% 1.37% 1.32%
Book Value / Share ($)$9.83 $9.28 $9.37
Adjusted Book Value / Share ($)$10.87 $10.35 $10.43
EAD per Share ($)$0.10 $0.16 $0.20

YoY snapshot (Q1 2024 vs Q1 2025)

MetricQ1 2024Q1 2025
Interest Income ($USD Millions)$83.9 $129.7
Net Interest Income ($USD Millions)$17.9 $33.1
Diluted EPS ($)$(0.75) $0.33
Yield on Avg Interest Earning Assets (%)6.38% 6.47%
Net Interest Spread (%)1.31% 1.32%
EAD per Share ($)$0.02 $0.20

Segment adjusted net interest income (non-GAAP) (oldest → newest)

SegmentQ3 2024 ($USD Millions)Q4 2024 ($USD Millions)Q1 2025 ($USD Millions)
Single-Family$30.9 $34.2 $39.6
Multi-Family$2.7 $2.7 $2.6
Corporate/Other$(4.9) $(4.4) $(5.9)
Total$28.7 $32.6 $36.2

Operating KPIs and portfolio/leverage (oldest → newest)

KPIQ3 2024Q4 2024Q1 2025
Company Recourse Leverage (x)2.6x 3.0x 3.4x
Portfolio Recourse Leverage (x)2.5x 2.9x 3.2x
Agency RMBS Purchases ($USD Millions)$372.2 $362.8 $1,500.0
Residential Loan Purchases ($USD Millions)$624.2 $542.3 $396.8
Dividends per Common Share ($)$0.20 $0.20 $0.20
Excess Liquidity Capacity ($USD Millions)——$407.0

Estimates vs. Actuals

  • S&P Global consensus estimates were unavailable for NYMT due to a temporary mapping limitation in our system; we will refresh this section once mapping is restored.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Common dividendQ1 2025$0.20 (Q4 2024) $0.20 (declared Mar 20; paid Apr 28) Maintained
G&A run-rate2025N/A~$11–$11.5M per quarter (Q4 call) New disclosure
Revenue/margins/tax/segment2025N/ANo formal numeric guidance providedN/A

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 & Q4 2024)Current Period (Q1 2025)Trend
Agency RMBS allocation and spreadsCore strategy; building Agency RMBS at attractive spreads; focused on 5.5% coupons; steady deployment with volatility-driven entry points ~$1.5B purchased; spreads widened to historically high levels in April; likely allocate more to 5s to optimize carry/convexity Increasing conviction; larger allocation
Liquidity and leverageYE 2024 excess liquidity ~$343M; recourse leverage 3.0x; building non-MTM securitizations Excess liquidity capacity ~$407M; recourse leverage 3.4x; kept credit recourse leverage low (0.5x) Higher capacity; disciplined leverage mix
Multifamily exit and mezz paydownsJV equity reduced to 4 assets; expecting continued resolutions; mezz stable with high payoff rates 10% mezz book paid off YTD as of early April; robust paydown pipeline; JV equity <1% of portfolio Ongoing runoff; redeploy to higher-yielding liquid assets
Non-GAAP shift to EAD2024 focused on undepreciated earnings; strong adjusted net interest income growth Introduced EAD; EAD per share reached $0.20, covering dividend New metric adopted; positive coverage
Macro/policy (tariffs, deregulation, rates)2024 cuts; evaluating policy impacts; volatility created entry points Trade-war driven volatility, stagflation risk noted; Agency RMBS preferred if recession risk rises Heightened macro vigilance; defensive positioning

Management Commentary

  • CEO (press release): “The Company significantly increased investment activity, resulting in a substantial boost to earnings... recurring earnings reached a level this quarter consistent with the Company’s dividend... focused on sustainably enhancing interest income through investments in highly liquid assets.”
  • CEO (call): “After adding $1.8 billion of investments, we ended the quarter with $407 million of excess liquidity… we are entering the second quarter from a position of strength as we continue to grow our balance sheet, primarily focused on Agency RMBS.”
  • CFO: “EAD per share increased to $0.20… adjusted net interest income EPS contribution rose to $0.40… net interest spread was 132 bps, 5 bps lower QoQ, while average financing cost improved 5 bps.”
  • President: “We bought approximately $1.5 billion of Agency RMBS… Agency current coupon spreads blew out from 143 bps to 163 bps in the first 3 weeks of April… we currently see better value in Agency RMBS relative to Residential Credit.”

Q&A Highlights

  • GSE reform implications: Management does not expect reform over the next four years; near/medium-term not a factor for NYMT’s activities .
  • Book value intra-quarter update: Adjusted book value down ~1.5% through April month-end (post-quarter spread volatility) .
  • Capital allocation: Preference for Agency RMBS near term; BPL-Rental favored over BPL-Bridge at the margin given relative value/liquidity; pipeline remains active but at a measured deployment pace .
  • Multifamily and mezz timing: ~10% of combined multifamily mezz paid off YTD as of early April; robust 2025 payoff expectations; JV equity assets being marketed or timed for better NOI trends before sale .

Estimates Context

  • S&P Global consensus estimates for NYMT were unavailable due to a temporary mapping limitation in our system. We are unable to present a vs. consensus comparison for EPS or revenue this quarter; we will update when S&P mapping is restored.

Key Takeaways for Investors

  • EAD coverage of the dividend achieved; recurring earnings momentum supported by large Q1 deployments and continued Agency RMBS opportunities amid wide spreads .
  • Liquidity and funding optionality improved (senior notes + securitizations), enabling continued deployment at attractive risk-adjusted returns while maintaining flexibility .
  • Net interest spread modestly compressed QoQ due to higher Agency mix, but financing costs improved and adjusted net interest income continued to grow on a larger earning asset base .
  • Residual real estate drag is shrinking as multifamily JV equity winds down; accelerated mezz paydowns expected to fund higher-yielding, more liquid strategies .
  • Near-term trading: watch Agency RMBS spread volatility—management is leaning into wider spreads; intra-quarter ABV marked down ~1.5% through April end, highlighting sensitivity and tactical entry points .
  • Medium-term: continued rotation toward liquid Agency RMBS and BPL-Rental with disciplined leverage should support EAD growth and dividend sustainability; opportunistic buybacks (231k shares repurchased in April at $6.50) can be accretive .

Supporting Documents and Data

  • Earnings press release (Q1 2025), including financial tables and non-GAAP reconciliations .
  • Form 8-K 2.02 with summary, capital allocation, reconciliations, and supplemental slides (liquidity, portfolio, leverage) .
  • Earnings call transcript (Q1 2025) for management commentary and Q&A .
  • Prior quarters for trend analysis: Q4 2024 and Q3 2024 press releases and Q4 2024 call .
  • Dividend declaration press release (Mar 20, 2025) confirming $0.20/common .