Adamas Trust, Inc. · NASDAQ:ADAM
Adamas Trust — New York Mortgage Trust — Q4 2019 Earnings Presentation
42 slides from Adamas Trust's earnings presentation, Feb 25, 2020
Slide 1: 2019 Fourth Quarter and Full Year Financial Summary
New York Mortgage Trust 2019 Fourth Quarter and Full Year Financial Summary
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on our beliefs, assumptions and expectations of our future performance, taki
Slide 3: Management
Management Steven Jason Mumma Serrano Chairman and CEO President “During a year in which the Company nearly doubled its “NYMT’s core operating model centers around equity market capitalization and investment portfolio, the efficiency and flexibility. The Company’s growth within steady and discipline
Slide 4: Table of Contents
Table of Contents Company Overview Financial Summary Market Update Strategy Updates 2020 Developments Quarterly Comparative Financial Information Appendix Glossary End Notes Capital Allocation Reconciliation of Net Interest Income
Slide 5: Company Overview
Company Overview
Slide 6: NYMT Overview
NYMT Overview New York Mortgage Trust, Inc. (NASDAQ: NYMT) is an internally managed REIT which Investment Portfolio Allocation acquires, invests in, finances and manages mortgage-related and residential housing-related assets. NYMT has a proud history of successfully navigating changing economic con
Slide 7: NYMT Investment Focus
NYMT Investment Focus A conservative yet strategic business model. $5.4B Total Investment Portfolio 1.5x Total Debt Leverage 16.46% Economic Return The Company focuses on a total return The Company maintains a conservative The Company adopts a total return approach framework by diversifying between
Slide 8: NYMT Value Proposition
NYMT Value Proposition A mission to Maximize Stockholder Value under a total return strategy throughout changing economic cycles. Diversified Approach Proprietary Sourcing The Company’s investment approach is driven by the goal to maintain a The Company benefits from extensive relationships with a w
Slide 9: NYMT Resources & Capabilities
NYMT Resources & Capabilities A niche position allowing for direct insight into market dynamics, risks and opportunities. Opportunity Focus Enhanced Market Knowledge Experience / Flexibility Over the past 10+ years, the $11T SF and Harnessing big data procured from large With the internalization of
Slide 10: Financial Summary
Financial Summary Fourth Quarter & Full Year 2019
Slide 11: Fourth Quarter Financial Snapshot
Fourth Quarter Financial Snapshot Earnings Per Share Dividend Per Share Net Interest Margin Basic Comprehensive Q4 Dividend Annualized Yield $0.20 $0.21 $0.20 12.8% Earnings & Book Value 2.90% Price to Book Economic Return on Book Value 2.30% 2.40% 2.16% 2.40% Market Price Book Value Price/Book 3 Mo
Slide 12: Financial Highlights
Financial Highlights Fourth Quarter & Full Year Annual Summary dollar amounts in millions, except per share data 4Q Full Year Equity Capital Market Raised Common $ 172.2 $ 804.4 Preferred 184.6 215.1 Total Raised Capital $ 356.8 $ 1,019.5 Accretive Capital from Common Equity Raises $ 6.3 $ 29.0 Inve
Slide 13: Financial Results
Financial Results dollar amounts in millions Fourth Quarter Profit & Loss 2019 Comprehensive Income + Accretive Capital vs. Net Interest Income $ 44.0 Common Dividends Declared Non-Interest Income 33.6 Total Net Interest & Non-Interest Income 77.6 $29.0 Salaries, Benefits & Directors’ Compensation (
Slide 14: Relative Comparison
Relative Comparison dollar amounts in millions Stockholders’ Equity as of December 31, Total Rate of Return Comparison $2,206 NYMT Out Performance by 106% NYMT 323% BBRG* 217% $1,179 976.0 $971 880.5 851.2 817.9 $881 $848 $818 480.7 500.0 $481 $322 322.0 $68 $85 85.3 2010 2011 2012 2013 2014 2015 20
Slide 15: Market Update
Market Update
Slide 16: Market Conditions
Market Conditions Broader Economy Housing Fundamentals U.S. economy expanded at 2.3% in 2019 vs. 2.9% 30-year fixed mortgage rates down 75bps from in 2018. beginning of year following Fed’s ruling to lower target range by 25bps. U.S. Unemployment rate lowered by approximately Household debt service
Slide 17: Strategy Updates
Strategy Updates
Slide 18: Investment Strategies
Investment Strategies Single-Family Multi-Family Distressed Loans Preferred Equity/Mezzanine Loans Seasoned re-performing and non-performing mortgage Subordinate lending secured indirectly by equity interest loans in one or more multi-family properties Performing Loans Joint Venture Equity GSE eligi
Slide 19: Single-Family Credit
Single-Family Credit Portfolio Overview Strategy Overview: ADSFASDFSDAFAS Building on the success of converting re-performing or non-performing loans into performing loans, the Company intends to continue allocating Distressed Loans to the balance sheet. In Performing Loan Strategies, the Company wi
Slide 20: Single-Family Credit: Distressed Loan Strategy
Single-Family Credit Distressed Loan Strategy Distressed Loan Purchases NYMT Distressed Loan Strategy Since Internalization (from 7/1/18 to 12/31/19) Loan Count 5,342 Avg. Months from Purchase 9.1 Market Landscape After the financial crisis, millions of modified residential Total UPB $962.3MM mortga
Slide 21: Multi-Family Credit
Multi-Family Credit Portfolio Overview Strategy Overview: ADSFASDFSDAFAS The largest allocation continues to be Securities, where the Company is currently exposed to $1.3B market value of which $824.5MM represents equity interest in Freddie Mac’s K-Series multi-family program. The Company’s direct P
Slide 22: Multi-Family Credit: K-Deal Securitizations
Multi-Family Credit K-Deal Securitizations K-Deal Example K-Deal Overview Underlying Loans Count 46 K-Deal Structure Avg. Property Value $39MM ▪ MF senior loan securitizations with a senior tranche wrapped by Freddie Mac Avg. Loan UPB $28MM ▪ NYMT focuses on the subordinated or nonwrapped tranches A
Slide 23: Agency
Agency Portfolio Overview Strategy Overview: ADSFASDFSDAFAS The Company’s relative allocation to Agency Securities declined over the years as the opportunity became less compelling relative to other strategies of focus. Today, NYMT primarily uses Agency Securities as an incubator to redeploy capital
Slide 24: 2020 Developments
2020 Developments
Slide 25: 2020 Key Developments & Outlook
2020 Key Developments & Outlook Entering 2020 with Strongest Quarterly Investment Pipeline in Company History 2 Public Offerings Investment Pipeline New Strategy Initiatives Portfolio Financing Update $20MM Accretive Capital ▪ 1/10/2020 issued ▪ Approximately $500MM ▪ SF – Pursuing utilization of ▪
Slide 26: Quarterly Comparative Financial Information
Quarterly Comparative Financial Information
Slide 27: Portfolio Yields by Strategy
Portfolio Yields by Strategy Quarter over Quarter Comparison Portfolio Net Interest Margin (4Q’19 vs 3Q’19) Portfolio Net Interest Margin increased by 50 basis points from the third quarter, primarily due to a 42 bps reduction in the average portfolio debt cost related to the 25 basis point Fed Fund
Slide 28: Net Interest Income
Net Interest Income Quarter over Quarter Comparison Net Interest Income (4Q’19 vs 3Q’19) Change in net interest income in the fourth quarter is primarily driven by increases in avg. interest earning assets in our credit portfolios coupled with improved net margins in both credit strategies. Interest
Slide 29: Non-Interest Income
Non-Interest Income Quarter over Quarter Comparison Realized Gains (Losses), net (4Q’19 vs 3Q’19) The third quarter included gains from the sale of certain CMBS securities, while there was no sales activity in the fourth quarter. In addition, realized gains from our Distressed Loans were offset by t
Slide 30: Non-Interest Income (Cont.)
Non-Interest Income (Cont.) Quarter over Quarter Comparison Other Income (4Q’19 vs 3Q’19) The increase of $7.5 million from the third quarter of 2019 is primarily related to an unrealized gain from a multi-family equity investment related to a pending sale in 2020, as well as increased income from o
Slide 31: Expense Analysis
Expense Analysis Quarter over Quarter Comparison General and Administrative Expenses (4Q’19 vs 3Q’19) The change in total general and administrative expenses in the fourth quarter as compared to the third quarter is primarily due to an increase in employee headcount and an increase in software licen
Slide 32: Comprehensive Income
COMPREHENSIVE INCOME Comprehensive Income (4Q’19 vs 3Q’19) The market experienced general spread tightening during the fourth quarter of 2019 which benefited our investment securities portfolio and resulted in an increase in other comprehensive income during the period. Dollar Amounts in Thousands 4
Slide 33: Book Value
Book Value Changes in Book Value The following table analyzes the changes in book value of our common stock for the quarter and year ended December 31, 2019. Quarter Ended December 31, 2019 Full Year Ended December 31, 2019 Amounts in Thousands, except per share Amount S hares Per S hare Amount S ha
Slide 34: Annual Returns
Annual Returns Economic/Total Rate Economic Return: Change in Book Value for the period + Dividends declared for the period, divided by the beginning period Book Value. 2013 2014 2015 2016 2017 2018 2019 Book Value Beginning $ 6.50 $ 6.33 $ 7.07 $ 6.54 $ 6.13 $ 6.00 $ 5.65 End $ 6.33 $ 7.07 $ 6.54 $
Slide 35: Appendix
Appendix
Slide 36: Glossary
Glossary The following defines certain of the commonly used terms in this presentation: "Accretive Capital' refers to the premium received on shares of common stock issued in our capital markets raises over the most recently reported book value prior to the respective capital raises, after deducting
Slide 37: Glossary (Cont.)
Glossary (Cont.) “Market Capitalization” is the outstanding shares of common stock and preferred stock multiplied by closing common stock and preferred stock market price as of the date indicated; “Multi-family CDOs” refers to the debt that permanently finances the multi-family mortgage loans held i
Slide 38: End Notes
End Notes Slide 1 Slide 16 • Image(s) used under license from Shutterstock.com. • U.S. GDP data sourced from the U.S. Bureau of Economic Analysis. Slide 6 • U.S. unemployment data sourced from the U.S. Bureau of Labor Statistics. • Refer to Appendix - "Capital Allocation" for a detailed breakout of
Slide 39: End Notes (Cont.)
End Notes (Cont.) Slide 22 Slide 33 • Historical K-Deal losses of <1 bp through December 31, 2019 sourced from “K-Deal • Outstanding shares used to calculate book value per share for the year ended December 31, Performance December 2019” presentation published by Freddie Mac. 2019 are 291,371,039. •
Slide 40: Capital Allocation
Capital Allocation Single-Family Multi-Family At December 31, 2019: Agency Other Total Credit Credit Investment securities, available for sale, at fair value $ 973,835 $ 715,314 $ 267,777 $ 49,214 $ 2,006,140 Distressed and other residential mortgage loans, at fair value - 1,429,754 - - 1,429,754 Di
Slide 41: Reconciliation of Net Interest Income
Reconciliation of Net Interest Income Dollar Amounts in Thousands 4Q'18 1Q'19 2Q'19 3Q'19 4Q'19 Single-Family Credit Interest income, distressed and other residential mortgage loans $ -$ -$ -$ -$ 24,751 Interest income, investment securities, available for sale(1) - - - - 8,292 Interest expense, SLS
Slide 42: Thank You
Thank You From all of us at NYMT
New York Mortgage Trust — Q4 2019 Earnings Presentation on 6ix