Executive Summary

NYMT reported a GAAP net loss to common of $(41.8)M and $(0.46) EPS in Q4, as higher benchmark rates drove $131.6M of unrealized losses, partially offset by $92.0M of hedge gains; adjusted net interest income improved sequentially to $32.6M and net interest spread widened 5 bps to 1.37% .
Book value per share fell 5.6% QoQ to $9.28 and adjusted book value (ABV) declined 4.8% to $10.35; economic return on ABV was (2.94)%, while the $0.20 dividend was maintained .
Deployment remained active: $362.8M of Agency RMBS and $542.3M of residential loans purchased, plus a residential loan securitization yielding ~$292.9M net proceeds; company and portfolio recourse leverage ended at 3.0x and 2.9x, respectively .
Management emphasized recurring earnings growth and said recurring earnings are “getting close to aligning” with the $0.20 dividend; early Q1 commentary indicated ABV up ~1–2% quarter-to-date, and the Board extended large buyback authorizations, a potential catalyst given shares trade below ABV .

What Went Well and What Went Wrong

What Went Well
- Adjusted net interest income rose to $32.6M (from $28.7M in Q3) on portfolio growth in Agency RMBS and BPL loans; net interest spread improved 5 bps QoQ to 1.37% as financing costs fell with securitization and lower base rates .
- Strong capital deployment and funding: $362.8M Agency RMBS and $542.3M loans purchased; completed a loan securitization with ~$292.9M net proceeds; subsequent unsecured notes and securitization further bolstered flexibility .
- Multifamily JV wind-down advanced: sold five multifamily assets in Q4, lowering real estate losses; CFO highlighted progress in reducing the drag and lowering portfolio operating expenses by ~$1.5M QoQ .
- “Adjusted interest income rose 11% for the fourth quarter, contributing to year-over-year growth in adjusted interest income of 60%,” CEO said, underscoring the strategy to expand recurring income .
What Went Wrong
- GAAP results pressured by marks: $131.6M unrealized losses as rates rose (impacting Agency RMBS, residential loans, SLST), partly offset by $92.0M derivative gains; realized losses of $9.9M on foreclosed properties and NPL sales .
- Book value and ABV declined: BV/share down to $9.28 (−5.6% QoQ) and ABV/share to $10.35 (−4.8% QoQ), driving a quarterly economic return on ABV of (2.94)% .
- Leverage drifted higher with deployment: company recourse leverage to 3.0x and portfolio recourse leverage to 2.9x (from 2.6x and 2.5x in Q3) .

Financial Results

Note: NYMT reports “Interest income” (REIT top-line proxy) rather than conventional “Revenue.”

Metric	Q4 2023	Q2 2024	Q3 2024	Q4 2024
Interest income ($M)	$78.789	$90.775	$108.361	$118.253
Net interest income ($M)	$16.800	$19.044	$20.237	$26.711
Net (loss)/income to common ($M)	$31.465	$(26.028)	$32.410	$(41.828)
Basic EPS ($)	$0.35	$(0.29)	$0.36	$(0.46)
Yield on avg interest earning assets (%)	6.21%	6.46%	6.69%	6.57%
Net interest spread (%)	1.02%	1.33%	1.32%	1.37%
Book value per share ($)	$11.31	$9.69	$9.83	$9.28
Adjusted book value per share ($)	$12.66	$11.02	$10.87	$10.35

Segment adjusted net interest income (non-GAAP)

Segment Adjusted NII ($M)	Q3 2024	Q4 2024
Single-Family	$30.936	$34.225
Multi-Family	$2.699	$2.683
Corporate/Other	$(4.945)	$(4.357)
Total	$28.690	$32.551

Key operating KPIs

KPI	Q3 2024	Q4 2024
Dividends per common share ($)	$0.20	$0.20
Economic return on ABV (%)	0.45%	(2.94)%
Company recourse leverage (x)	2.6x	3.0x
Portfolio recourse leverage (x)	2.5x	2.9x
Agency RMBS purchases ($M)	$372.2	$362.8
Residential loan purchases ($M)	$624.2	$542.3
Securitization net proceeds ($M)	~$235.8	~$292.9

Drivers this quarter

Higher rates into year-end widened Agency and loan marks (unrealized losses), while hedges gained; NII improved on portfolio growth and better funding mix .
Net loss from real estate improved sequentially on asset sales/deconsolidations; portfolio operating costs fell QoQ .

Guidance Changes

Metric/Item	Period	Previous	Current	Change
Common dividend per share	Q4 2024	$0.20 (Q3’24)	$0.20 declared	Maintained
Recurring earnings vs dividend	2025 outlook	—	“Getting close to aligning” with $0.20 dividend (CFO)	Qualitative positive
G&A run-rate	2025	—	~$11–$11.5M per quarter (CFO)	New run-rate disclosure
Share repurchase authorizations	Through 3/31/2026	Expiring 3/31/2025	Extended; $189.7M common and $97.6M preferred remaining	Extended

No formal quantitative guidance for revenues, margins, tax, or segment targets was provided in Q4 materials .

Earnings Call Themes & Trends

Topic	Q2 2024 (Q-2)	Q3 2024 (Q-1)	Q4 2024 (Current)	Trend
Macro/rates & spreads	Positioning for easing cycle; selective Agency adds; emphasize liquidity and hedging	Agency spreads range-bound; continued deployment	Rates rose into YE; unrealized losses; hedges offset; remain constructive on Agencies entering easing cycle	Mixed: near-term headwind, medium-term tailwind
Portfolio rotation to recurring income	Rotating from total return to current cash income; rising adjusted interest income	EPS up on rotation; higher adjusted NII	Adjusted NII and spread improved QoQ; reiterated focus on recurring income	Improving
Securitizations & funding	Rated BPL-bridge securitization; baby bonds issued; pursue nonrecourse term funding	Continued loan/bond re-securitizations	Q4 loan securitization; subsequent unsecured notes; securitization in Feb’25	Positive momentum
Dividend sustainability	Aim to align recurring earnings with dividend over time	Dividend maintained	“Getting close to aligning” recurring earnings with $0.20 dividend	Improving alignment
Multifamily JV equity wind-down	JV equity becoming immaterial; ongoing sales plan	JV sales gains; drag persists but shrinking	Five assets sold in Q4; four remaining; FL assets being marketed; TX assets improving occupancy	Wind-down advancing
Leverage & liquidity	Low recourse leverage; maintain flexibility	Recourse leverage 2.6x	Recourse leverage 3.0x with Agency ramp; liquidity supports growth	Higher but managed

Management Commentary

Strategy and earnings trajectory: “The Company’s portfolio grew by $2.2 billion, or 44%... As a result, adjusted interest income rose 11% for the fourth quarter, contributing to year-over-year growth in adjusted interest income of 60%” (CEO) .
Valuation and capital returns: “NYMT shares traded at a 41% discount to adjusted book value at year-end… $388 million of book value or $4.29 per share potential upside to year-end market capitalization,” with further upside from discounts-to-par in assets (CEO, prepared remarks) .
Earnings drivers: “Our net interest spread has shown improvement... increasing by 5 basis points in the quarter… our interest rate swaps… reducing our average financing cost by 38 basis points for the quarter” (CFO) .
Dividend path: “We are getting close to aligning with our current dividend in terms of recurring earnings” (CFO, Q&A) .
Portfolio mix: Agency RMBS at $3.1B market value (42% of assets); expect continued growth given attractive spreads into a potential easing cycle (President) .

Q&A Highlights

Normalized/recurring earnings: Management expects recurring earnings to align with the $0.20 dividend as rotation completes and deployment continues (CFO) .
Liquidity deployment: Plan to deploy excess liquidity across Agencies and short-duration residential credit, balancing rate and credit risks with target returns in mid-teens range for Agencies post-normalization (CEO) .
G&A outlook: Run-rate G&A guided to ~$11–$11.5M per quarter, with opportunities to further reduce costs (CFO) .
Book value trend: As of the call week, ABV up ~1–2% QTD in Q1’25 (President) .
Multifamily JV exit timing: Two Florida assets (≈$19M equity) on market; two Texas assets (~$1.3M equity) improving occupancy before sale later in 2025 (CEO) .
Allocation tilt: Expect higher allocation to Agency RMBS versus single-family mortgage loans as mezzanine portfolio pays down (CEO) .
Securitized debt calls/re-lever: Several callable deals; will evaluate call-and-relever economics deal-by-deal (President) .

Estimates Context

S&P Global consensus (EPS/revenue) for Q4 2024 was unavailable via our SPGI mapping for NYMT at the time of analysis; therefore, we cannot provide estimate comparisons this quarter. We will update when S&P mapping becomes available.
Target price/consensus recommendation not cited given the same data limitation.

Key Takeaways for Investors

Near-term GAAP pressure, but core earnings vector improving: Despite $(0.46) EPS on marks, adjusted NII rose and net interest spread widened; if rates stabilize/fall, marks should moderate while NII benefits from deployment and funding mix .
Book value sensitivity to rates remains the swing factor; hedges mitigated some pain in Q4; early Q1 ABV up ~1–2% suggests reversal potential if rates/spreads cooperate .
Capital deployment is active and diversified (Agencies + BPL loans), with ongoing securitizations and extended buybacks providing flexibility and potential stock support, especially at a ~41% discount to ABV at YE .
Dividend maintained at $0.20; management expects recurring earnings to align, supporting sustainability if NII momentum continues and portfolio drag from multifamily exits abates .
Leverage is rising with Agency ramp (3.0x recourse), but funding includes nonrecourse/securitized structures; monitor leverage trajectory and repo conditions into 2025 .
Watch catalysts: rate path (mark-to-market), Agency spread behavior, securitization execution, pace of multifamily JV exits, and any buyback activity given authorization extension .

Appendix: Additional Data Points

Q4 unrealized losses detail: $(99.2)M investment securities (largely Agency RMBS), $(45.6)M residential loans; offset by $91.954M derivative gains (mostly swaps) .
Q4 real estate net loss improved to $(5.9)M from $(7.5)M in Q3 on asset sales/deconsolidations; portfolio operating expenses declined QoQ .
Q4 ABV reconciliation: $937.4M total adjusted book value; ABV/share $10.35 (common shares outstanding ~90.575M) .

NEW YORK MORTGAGE TRUST, INC. (NYMT)·Q4 2024 Earnings Summary