Q4 2023 Earnings Summary
Reported on Feb 22, 2024 (After Market Close)
Pre-Earnings Price$7.23Last close (Feb 22, 2024)
Post-Earnings Price$7.20Open (Feb 23, 2024)
Price Change
$-0.03(-0.41%)
- New York Mortgage Trust is well-positioned to capitalize on upcoming opportunities in the commercial real estate (CRE) market, particularly due to the significant amount of $2.8 trillion in CRE debt maturing over the next four years. The company sees enormous opportunities in both the performing and distressed segments, including providing bridge lending, mezzanine lending, and working with banks on loan purchases and servicing.
- The company has significant dry powder of $431 million available for deployment, not including capital allocated to agency assets, positioning it to take advantage of attractive investment opportunities. They are projecting mid-teens returns on their existing portfolio and have the capacity to generate high-teens returns on BPL bridge loans under a securitization profile.
- NYMT expects to benefit from their BPL bridge loan investments, which offer higher returns and are a preference in their investment allocation. Despite a tighter credit box and longer procurement times, they aim to continue growing their BPL bridge portfolio, expected to generate high-teens returns under securitization.
- Declining Adjusted Book Value: NYMT's adjusted book value per share has decreased by 3% quarter-to-date as of February 20, indicating ongoing pressure on book value due to rate movements adjusting yields higher on residential credit assets. ,
- Challenges in Exiting Multifamily JV Equity Investments: The company has been unable to sell its remaining multifamily joint venture equity investments, with no bids received on the marketed properties. This suggests difficulty in exiting these assets and the potential for further write-downs.
- Slow Deployment into Higher-Return Assets: Despite significant available liquidity, NYMT is experiencing slower deployment of capital into higher-return BPL bridge loans due to a tighter credit box and longer procurement times. This may limit near-term earnings growth. ,
Research analysts covering NYMT.