Executive Summary

EPS inflected to $0.36 and undepreciated EPS to $0.39 on stronger adjusted net interest income and valuation gains; GAAP BVPS rose 1.4% QoQ to $9.83 while adjusted BVPS eased to $10.87 as fair-value add-backs declined .
Portfolio rotation delivered: total adjusted net interest income rose to $28.7mm (from $27.3mm in Q2) as NYMT added $1.0B of single‑family investments and executed six 2024 securitizations, including a second rated BPL-Bridge deal at a 5.65% effective cost, lowering funding costs and terming out risk .
Leverage increased to support agency growth (company recourse leverage 2.6x; portfolio recourse leverage 2.5x) while liquidity remained robust; agency RMBS neared $3.0B (42% of assets) providing flexible ballast amid macro volatility .
Multifamily JV equity de‑risk largely complete (≈$19mm remaining; resolutions in sight), reducing a key prior source of book value volatility and freeing capital for recurring‑income strategies .
Estimates context: S&P Global consensus for NYMT was unavailable via our connector for Q3 2024; therefore beat/miss vs. Street cannot be assessed this quarter (we attempted retrieval and could not map CIQ ID).

What Went Well and What Went Wrong

What Went Well
- “Sharply higher” EPS of $0.36 as portfolio rotation to recurring interest income took hold; Total Adjusted Net Interest Income reached $29mm, up 39% YoY (undepreciated EPS $0.39) .
- Funding costs improved and financing de‑risked: second rated BPL-Bridge securitization at 5.65% effective cost, >140 bps below repo; term non‑MTM structures drive stability and revolving capacity supports future purchases .
- De‑risked multifamily JV equity: sold properties, recognized gains, cut net loss from real estate to $(7.5)mm from $(13.1)mm QoQ; remaining JV equity exposure is now immaterial .
What Went Wrong
- Derivative losses offset asset valuation gains: $96.9mm unrealized gains primarily on Agency RMBS and loans were partly offset by $(60.6)mm net derivative losses from lower rates .
- Adjusted BVPS declined to $10.87 (−1.4% QoQ) as lower rates reduced fair‑value add‑backs on amortized‑cost liabilities; GAAP BVPS improved but adjusted metric fell .
- Operating cost items persisted: portfolio operating expenses rose with loan growth and $2.4mm debt issuance costs were expensed due to FV election, tempering bottom‑line leverage of revenue growth .

Financial Results

Metric	Q3 2023	Q2 2024	Q3 2024
Interest Income ($mm)	65.2	90.8	108.4
Interest Expense ($mm)	48.4	71.7	88.1
Net Interest Income ($mm)	16.8	19.0	20.2
Net Income Attrib. to Common ($mm)	(94.8)	(26.0)	32.4
Basic EPS ($)	(1.04)	(0.29)	0.36
Undepreciated EPS (non‑GAAP) ($)	(1.02)	(0.25)	0.39
Yield on Avg Earning Assets (%)	6.03%	6.46%	6.69%
Net Interest Spread (%)	0.90%	1.33%	1.32%
Book Value per Share ($)	11.26	9.69	9.83
Adjusted BVPS ($)	12.93	11.02	10.87
Dividend per Common Share ($)	0.30	0.20	0.20

Adjusted Net Interest Income (non‑GAAP)

Metric ($mm)	Q3 2023	Q2 2024	Q3 2024
Total Adjusted Net Interest Income	20.7	27.3	28.7

Segment Economics (Q3 2024, non‑GAAP)

Segment	Adjusted Interest Income ($000)	Adjusted Interest Expense ($000)	Adjusted Net Interest Income ($000)	Yield on Avg Earning Assets (%)	Avg Financing Cost (%)	Net Interest Spread (%)
Single‑Family	97,233	(66,297)	30,936	6.66	5.30	1.36
Multi‑Family	2,699	—	2,699	11.84	—	11.84
Corporate/Other	1,054	(5,999)	(4,945)	4.08	6.29	(2.21)
Total	100,986	(72,296)	28,690	6.69	5.37	1.32

Key KPIs and Balance Sheet Trajectory

KPI	Q1 2024	Q2 2024	Q3 2024
Total Investment Portfolio Carrying Value ($mm)	5,352.6	5,916.5	6,868.1
Company Recourse Leverage Ratio (x)	1.7x	2.1x	2.6x
Portfolio Recourse Leverage Ratio (x)	1.6x	2.0x	2.5x
Total Adjusted NII ($mm)	26.2	27.3	28.7
Yield on Avg Earning Assets (%)	6.38	6.46	6.69
Net Interest Spread (%)	1.31	1.33	1.32
Economic Return on BV (%)	—	(3.13)	3.51
Economic Return on Adj. BV (%)	—	(2.52)	0.45

Guidance Changes

Metric	Period	Previous Guidance/Level	Current Guidance/Level	Change
Common Dividend per Share	Q3 2024	$0.20 (Q2 div)	$0.20 declared for Q3	Maintained
Financial Guidance (Revenue/Margins/Tax)	FY/Q4	Not provided	Not provided	N/A

No formal quantitative guidance (revenue, margin, tax) was issued; management reiterated focus on growing recurring earnings and deploying excess liquidity prudently .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3)	Trend
Portfolio rotation to recurring income	Q1: Shift to Agency RMBS and short‑duration credit; reduce JV equity to curb BV volatility . Q2: Elevated adjusted interest income; liquidity preserved for growth .	EPS $0.36 on higher adjusted NII; “plan” delivering; undepreciated EPS $0.39 .	Improving execution and earnings momentum.
Agency RMBS strategy	Q2: Opportunistic adds; 6% coupons; portfolio $2.6B (44% assets) .	Spreads tightened intra‑quarter; slowed purchases QoQ but book ~ $3.0B (42% assets); flexible ballast .	Growing core allocation, timing deployments.
BPL‑Bridge/rental growth and securitizations	Q2: First rated BPL‑Bridge deal; plan to use rated structure .	Six 2024 deals; second rated BPL‑Bridge at 5.65% effective cost; revolving capacity $706mm; resumed BPL rental program .	Scaling issuance, lowering cost of funds.
Multifamily JV equity run‑off	Q1: JV equity impairments drove adj. BV decline; plan to exit . Q2: JV equity <1% of portfolio; pursuing mezzanine JV up to $300mm .	~$19mm remaining; 4 of 7 assets near disposition; BV volatility source largely removed .	Risk reduction largely complete.
Leverage/liquidity stance	Q2: Recourse leverage 2.1x; portfolio recourse 2.0x .	Recourse leverage 2.6x; portfolio recourse 2.5x; liquidity strong; no corporate maturities until 2026 .	Leverage up to fund agency growth; liquidity intact.
Macro outlook and rates	Q2: Expect potential rate cuts; constructive for fixed income .	Fed pivot (50 bps cut) noted; caution on deficits crowding out private markets .	Constructive fixed‑income setup with macro vigilance.

Management Commentary

CEO (press release): “The Company reported sharply higher earnings per share of $0.36… [from] a portfolio rotation… focusing on acquisitions that can deliver high recurring interest income… Total Adjusted Net Interest Income of $29 million… up 39% year‑over‑year.”
CEO (call): “We increased our portfolio by $1 billion or 17% from last quarter… had over $100 million of adjusted interest income… without depleting our excess liquidity… particularly without having near‑term corporate debt maturities.”
CFO: “Undepreciated earnings per share of $0.39… valuation improvements on our residential loan and bond portfolios due to changes in interest rates, contributing $1.07 per share of unrealized gains, partially offset by $0.57 per share in losses on swaps… net loss from real estate decreased to $7.5 million.”
President: “We have now completed a total of 6 securitizations in 2024… our second rated BPL bridge deal… 5.65% effective cost… more than 140 bps lower effective cost compared to repo… Agency RMBS book is now almost $3 billion (42% of assets).”

Q&A Highlights

Book value sensitivity and JV runoff: Remaining JV equity ~$19mm across 7 assets; four with LOIs near resolution; residual ~$1.4mm—management sees BV volatility abating as book winds down .
Quarter‑to‑date adjusted BV: Down ~1–2% as of the week of the call .
Strategy ROEs: BPL‑Bridge “20+% type gross ROEs” (levered); Agency mid‑teens (higher at wider spreads); BPL rental mid‑to‑high teens .
CRE/multifamily market tone: Rate volatility slowed deal activity; expect a pickup in early next year; pursuing mezzanine lending JV with third‑party capital ~ $300mm .

Estimates Context

We attempted to pull S&P Global consensus (EPS, revenue) for Q3 2024 but could not retrieve due to a mapping limitation for NYMT in our connector at this time. As a result, we cannot assess beat/miss vs. Street for Q3 2024 using S&P Global data. Actuals reported by NYMT were as follows: basic EPS $0.36; undepreciated EPS $0.39; interest income $108.4mm .

Key Takeaways for Investors

Earnings inflected: Positive EPS and improved adjusted NII with portfolio growth and lower funding costs position NYMT to move closer to covering the dividend over the near term, per management’s focus on recurring income .
Funding tailwinds: Rated BPL‑Bridge and rental securitizations (5.65% effective cost on latest bridge deal) reduce reliance on repo and support NIM expansion as volumes recycle .
Agency ballast with option value: Agency RMBS (~$3.0B; 42% of assets) offers liquidity to pivot as spreads/rates move—management expects to lean in when spreads widen, supporting trading flexibility .
De‑risked equity book: Multifamily JV equity is now immaterial, curbing a key source of prior adjusted BV volatility and freeing capital allocation for income‑bearing assets .
Leverage uptick is deliberate: Recourse leverage increased to 2.6x to fund agency growth; watch spread/rate moves and derivative positioning impacts on quarterly valuation swings .
Dividend maintained: $0.20 common dividend for Q3; management aims to align recurring earnings with the payout as rotation continues .
Near‑term catalysts: Additional rated securitizations, agency spread widening (deploy), JV mezzanine third‑party capital launch, and further dispositions could lift recurring earnings and simplify the story .

All citations:
Q3 2024 press release and financial tables .
Q3 2024 8‑K and supplemental .
Q3 2024 earnings call transcript .
Q2 2024 press release and call .
Q1 2024 8‑K and supplemental .
Q3 2024 dividend press release .

NEW YORK MORTGAGE TRUST INC (NYMT)·Q3 2024 Earnings Summary