Adamas Trust, Inc. · NASDAQ:ADAM
Adamas Trust — New York Mortgage Trust — Q1 2021 Earnings Presentation
39 slides from Adamas Trust's earnings presentation, May 7, 2021
Slide 1: 2021 First Quarter Financial Summary
New York Mortgage Trust 2021 First Quarter 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, tak
Slide 3: To Our Stockholders: Management Update
To Our Stockholders Management Update "The Company completed another successful quarter, delivering an economic return of 2.1%, with $0.11 GAAP earnings per share and $0.12 comprehensive earnings per share. Our portfolio net margin expanded by 12 basis points to 2.42%, but more importantly, our port
Slide 4: Table of Contents
Table of Contents Company Overview Financial Summary Market & Strategy Update 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 a real estate investment trust Capital Allocation (“REIT”) for U.S. federal income tax purposes in the business of acquiring, investing in, financing and managing primarily mortgage-related single-family and multi-family Single-Family Mul
Slide 7: Key Developments
Key Developments ◦ Earnings per share $0.11 Financial ◦ Comprehensive earnings per share $0.12 Performance ◦ Book value per share of $4.71 ◦ Achieved a 2.1% Quarterly Economic Return ◦ Declared first quarter common stock dividend of $0.10 per share, and preferred Stockholder stock dividends Value ◦
Slide 8: Financial Summary
Financial Summary First Quarter 2021
Slide 9: Financial Snapshot
Financial Snapshot Earnings Per Share Dividend Per Share Net Interest Margin Basic Comprehensive Q1 Dividend $0.11 $0.12 $0.10 Earnings & Book Value Price to Book Economic Return on Book Value 2.92% 2.43% 2.18% 2.30% 2.42% Market Price Book Value Price/Book 3 Months Ended $4.47 $4.71 0.95 2.1% 1Q 20
Slide 10: First Quarter Summary
First Quarter Summary Dollar amounts in millions, except per share data 1Q 2021 Investment Activity Acquisitions $ 364.4 Sales $ (118.3) Prepayments and Redemptions $ (183.7) Net Investment Activity $ 62.4 Earnings Net Income Attributable to Common Stockholders $ 41.9 Comprehensive Income Attributab
Slide 11: Financial Results
Financial Results First Quarter Profit & Loss Dollar amounts in millions, except per share data Price to Book Value Over Time Price to Book Value Over Time Net Interest Income $ 30.3 1.08 0.95 0.78 0.60 0.56 Non-Interest Income 39.7 0.40 $5.78 Total Net Interest Income & Non-Interest 70.0 Income $4.
Slide 12: Market & Strategy Update
Market & Strategy Update
Slide 13: NYMT Investment Strategy
NYMT Investment Strategy Pipeline Strategy For Sustainable Earnings Growth Portfolio Acquisitions within Core Strategies (Dollar amounts in millions) Focus NYMT focuses on loan portfolio opportunities in markets where the Company sees a competitive $358 $351 advantage and competition is less due to
Slide 14: Strategy Update
Strategy Update A Selective Approach to Portfolio Management Market Trends Impact Strategy 1MM Housing Units Available All-Time High Transitions BPL * 73% LTV (at cost) * 18 consecutive months of decline * 43% of homes under contract in 1 week $586MM * 65% LTV (after repair) * Higher construction in
Slide 15: NYMT Continues to Enhance Capital Structure
NYMT Continues to Enhance Capital Structure 2.1% Economic Return Generated in the First Quarter Quarterly Portfolio Financing Exposure (Dollar amounts in millions) 1.4x Strategy Shift Continued to primarily focus on investments away from CUSIP securities that have potential to generate attractive as
Slide 16: Single-Family Portfolio Overview
Single-Family Portfolio Overview Total Investment Portfolio Total Capital Dollar amounts in millions 81% 75% Asset Value Net Capital Strategy Loan Key Characteristics Core Strategy Sub-Sector Leverage Current Environment % $ % $ Ratio Avg. FICO Avg. LTV Avg. Coupon • Improved performance as servicer
Slide 17: Single-Family Opportunity Highlights
Single-Family Opportunity Highlights RPL Performance Update Quarterly Update WT. Avg. Price 3/31/21 64% 36% $96 Q1 Portfolio Activity ◦ Purchased $347 million of residential loans, including: 12/31/20 62% 38% $94 – $292 million BPL – $52 million S&D 9/30/20 63% 37% $92 ◦ Sold $72 million of non-Agen
Slide 18: Single-Family Business Purpose Loan Strategy
Single-Family Business Purpose Loan Strategy NYMT Expertise Loan Count: 1,420 UPB ($MM): $586.9 Expertise & Background Loan Key Characteristics ◦ Deep experience managing different whole loan Avg. FICO Avg. Coupon Avg. LTARV Avg. LTC strategies across the credit spectrum. ◦ Managed rehabilitation an
Slide 19: Multi-Family Portfolio Overview
Multi-Family Portfolio Overview Total Investment Portfolio Total Capital Dollar amounts in millions 16% 24% Asset Value Net Capital Loan Key Characteristics Core Strategy Sub-Sector Current Environment Avg. Coupon/ % $ % $ Avg. DSCR Avg. LTV Target IRR • Middle market properties located within stron
Slide 20: Multi-Family Opportunity Highlights
Multi-Family Opportunity Highlights Quarterly Update Loan Portfolio Characteristics as of 3/31/2021 (Dollar amounts in millions) Property Operating Update ◦ Zero NY Exposure – Portfolio located primarily in the State (Top 10) Count Balance % Total Coupon LTV DSCR South and Southeast of the U.S. TX 1
Slide 21: Outlook
Outlook NYMT Outlook for the Second Quarter of 2021 For 2021, we will continue to focus on asset growth through proprietary channels and prudent liability management to increase our profitability. Utilizing a Strong Balance Sheet to Capture Superior Market Opportunities ◦ Investing across capital st
Slide 22: Quarterly Comparative Financial Information
Quarterly Comparative Financial Information
Slide 23: Portfolio Yields by Strategy
Portfolio Yields by Strategy Quarter over Quarter Comparison Portfolio Net Interest Margin (1Q’21 vs 4Q’20) Portfolio net interest margin for the first quarter was 2.42%, an increase from the prior quarter primarily due to decreased financing cost as a result of the repayment of debt associated with
Slide 24: Net Interest Income
Net Interest Income Quarter over Quarter Comparison Net Interest Income (1Q’21 vs 4Q’20) Net interest income increased by $4.4 million from the previous quarter, primarily due to increased investment in higher yielding business purpose loans and a decrease in interest expense of $0.3 million which c
Slide 25: Non-Interest Income (Loss)
Non-Interest Income (Loss) Quarter over Quarter Comparison Realized Gains (Losses), net (1Q’21 vs 4Q’20) Net realized gains of $4.4 million on investment securities in the first quarter includes $5.2 million in gains from the sales of CMBS offset by $0.8 million in losses from the sales of non-Agenc
Slide 26: Non-Interest Income (Loss)
Non-Interest Income (Loss) Quarter over Quarter Comparison Income from Equity Investments (1Q’21 vs 4Q’20) The net decrease of $8.7 million in the first quarter is primarily related to a decrease in equity income related to our residential equity investments and lower unrealized gains recognized on
Slide 27: Expense Analysis
Expense Analysis Quarter over Quarter Comparison General and Administrative Expenses (1Q’21 vs 4Q’20) Increase in compensation expenses of $2.1 million largely related to stock based compensation expense on 2021 annual equity awards and increase in incentive expense related to improved performance i
Slide 28: Other Comprehensive Income (Loss)
Other Comprehensive Income (Loss) Other Comprehensive Income (Loss) (1Q’21 vs 4Q’20) Other comprehensive income in the first quarter is primarily due to the reversal of previously recognized net unrealized losses reported in other comprehensive income that were reclassified to net realized gains as
Slide 29: Book Value
Book Value Changes in Book Value The following table analyzes the changes in book value of our common stock for the quarter ended March 31, 2021. Quarter Ended March 31, 2021 Amounts in Thousands, except per share Amount Shares Per Share Beginning Balance $ 1,779,380 377,744 $ 4.71 Common stock issu
Slide 30: 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. 1Q'21 2020 2019 2018 2017 2016 2015 Book Value Beginning $ 4.71 $ 5.78 $ 5.65 $ 6.00 $ 6.13 $ 6.54 $ 7.07 Ending $ 4.71 $ 4.71 $ 5.
Slide 31: Appendix
Appendix
Slide 32: Glossary
Glossary The following defines certain of the commonly used terms in this presentation: “Agency” or “Agency Securities” or “Agency Guaranteed” refers to CMBS or RMBS representing interests in or obligations backed by pools of mortgage loans issued and guaranteed by a government sponsored enterprise
Slide 33: Glossary
Glossary “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; "MF" refers to multi-family; "MTM" refers to mark-to-market; "Net Interest Margin" is the difference between th
Slide 34: End Notes
End Notes Slide 1 • Number of address changes and population trend data in 2020 sourced • Image(s) used under license from Shutterstock.com. from the U.S. Postal Service. Slide 3 • Percentage of homes that were under contract within one week represents • Image(s) used under license from Shutterstock
Slide 35: End Notes
End Notes • Percentage of S&D loans currently in-the-money for a refinance represent • For loans purchased after June 30, 2018, percentages in the RPL S&D loans with a coupon rate greater than the conforming rate (based on Performance Update table were calculated using the total purchased product ty
Slide 36: End Notes
End Notes • Borrower Experience represents the weighted average historical number of Slide 20 investments or rehabilitation projects attributed to BPL strategy borrowers • Loan portfolio represents the Company's Multi-Family Loans, including that is used by the originator or asset manager in the und
Slide 37: Capital Allocation
Capital Allocation At March 31, 2021 (Dollar amounts in thousands) Single-Family (1) Multi-Family Other Total Residential loans $ 3,206,282 $ — $ — $ 3,206,282 Consolidated SLST CDOs (992,288) — — (992,288) Multi-family loans — 151,836 — 151,836 Investment securities available for sale (2) 403,232 1
Slide 38: Reconciliation of Net Interest Income
Reconciliation of Net Interest Income Dollar amounts in thousands 1Q'21 4Q'20 3Q'20 2Q'20 1Q'20 Single-Family Interest income, residential loans $ 27,630 $ 21,899 $ 19,808 $ 17,898 $ 22,177 Interest income, Consolidated SLST 10,318 10,653 10,896 11,522 12,123 Interest income, investment securities a
Slide 39: Thank You
Thank You From all of us at NYMT
New York Mortgage Trust — Q1 2021 Earnings Presentation on 6ix