Adamas Trust, Inc. · NASDAQ:ADAM
Adamas Trust — New York Mortgage Trust — Q2 2020 Earnings Presentation
38 slides from Adamas Trust's earnings presentation, Aug 5, 2020
Slide 1: New York Mortgage Trust 2020 Second Quarter Financial Summary
New York Mortgage Trust 2020 Second 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 rebounded strongly in the second quarter after the most challenging quarter in its history, generating $0.28 in GAAP earnings and $0.50 in comprehensive earnings and increasing its book value to $4.35 at June 30, 2020, a 12% increase from March 31,
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 Investment Portfolio 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 res
Slide 7: Key Developments
Key Developments Business Activity Investment Activity Quarterly Dividend Declared Investing Declared a quarterly cash dividend on common stock of • Sold residential loans for approximately $43.8 million $0.05, reinstated the payment of dividends on preferred in proceeds and purchased $2.8 million i
Slide 8: Liquidity Update
Liquidity Update Commentary Securities and Residential Loans MTM Financing Exposure (dollar amounts in millions) Reduced MTM Financing Exposure NYMT executed a term, non-MTM re-securitization on $213 million of non-Agency RMBS generating $109 million of net proceeds. The securitization is anticipate
Slide 9: Q/Q Portfolio Comparison
Q/Q Portfolio Comparison 6/30/2020 3/31/2020 12/31/2019 Category Carrying Leverage Carrying Leverage Leverage Financing Type Financings Financings Dollar amounts in thousands Value Ratio Value Ratio Ratio SF Credit Securities Repo (MTM) $ 815,506 $ 87,571 0.1x $ 758,888 $ 333,227 0.8x SF Credit Resi
Slide 10: Financial Summary Second Quarter 2020
Financial Summary Second Quarter 2020
Slide 11: Financial Snapshot
Financial Snapshot Earnings Per Share Dividend Per Share Net Interest Margin Basic Comprehensive Q2 Dividend $0.28 $0.50 $0.05 Earnings & Book Value Price to Book Economic Return on Book Value 2.90% 2.92% 2.16% 2.40% 2.43% Market Price Book Value Price/Book 3 Months Ended $2.61 $4.35 0.60 13.1% 2Q 2
Slide 12: Second Quarter Summary
Second Quarter Summary dollar amounts in millions, except per share data 2Q 2020 YTD 2020 Equity Capital Market Raised Total Raised Capital $ — $ 512.0 Accretive Capital from Common Equity Raises $ — $ 20.0 Investment Activity Purchases $ 2.8 $ 634.9 Sales $ (105.6) $ (2,094.2) Net Investment Activi
Slide 13: Financial Results
Financial Results dollar amounts in millions, except per share data 12% Book Value Recovery in Second Quarter Second Quarter Profit & Loss Net Interest Income $ 28.5 $0.95 $1.44 Non-Interest Income 104.4 $5.78 $5.77 $5.75 Total Net Interest Income & Non-Interest Income 132.9 $4.35 $3.89 Salaries, Be
Slide 14: Market & Strategy Update
Market & Strategy Update
Slide 15: Market Conditions
Market Conditions Economic Update Sector Update US GDP Agency U.S. economic data released over the past quarter shows ▪ Market at full liquidity with Fed purchases. that the U.S. economy has greatly contracted with U.S. ▪ Record low mortgage rates keeping prepayment rates gross domestic product (“GD
Slide 16: 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 in loans one or more multi-family properties Performing Loans Joint Venture Equity GSE eligi
Slide 17: Single-Family Credit Portfolio Overview
Single-Family Credit Portfolio Overview Strategy Update The Company continues to work with loan servicers to rehabilitate borrowers, focusing on converting re-performing or non-performing loans (“Distressed Loans”) into a performing status. In Performing Loan Strategies, record low mortgage rates ar
Slide 18: Single-Family Credit Asset Management
Single-Family Credit Asset Management Distressed Loan Asset Management Summary Distressed Loan Purchases Since Internalization (from 7/18/2018 to 6/30/2020) Loan Count 5,145 Deep Credit Expertise NYMT’s credit team has on average over 10 years of Avg. Months from Purchase 14.9 experience reviewing m
Slide 19: Multi-Family Credit Portfolio Overview
Multi-Family Credit Portfolio Overview Strategy Update The Direct Preferred/Mezzanine loan program continues to be an instrumental contributor to the Company’s earnings. The Company's total exposure amounts to approximately $309.9 million, with an average coupon rate of 11.43%. Fundamentals of multi
Slide 20: Multi-Family Credit Direct Lending
Multi-Family Credit Direct Lending MF Direct Lending Summary Average Loan Portfolio As of 6/30/2020 Extensive Investment History Count 50 The Company has built a scalable operation with over 7 years of experience lending to multi-family sponsors Property Value $43.7MM against mid-sized properties (t
Slide 21: Outlook
Outlook NYMT Outlook for the Third Quarter of 2020: A Focus on Generating Total Risk-Adjusted Returns by Investing in Assets with Low Relative Risk Metrics in a Diversified Approach Utilizing a Strong Balance Sheet in a Less Competitive Environment ▪ Multiple benefits of low portfolio leverage 0.4x
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 (2Q’20 vs 1Q’20) Portfolio net interest margin for the second quarter was 2.43%, a decrease of 49 basis points primarily due to the sale of our entire portfolio of higher yielding Freddie Mac K-Series POs at t
Slide 24: Net Interest Income
Net Interest Income Quarter over Quarter Comparison Net Interest Income (2Q’20 vs 1Q’20) The $18.6 million decrease from the previous quarter is due to the $2.0 billion reduction in portfolio assets in March 2020 as part of our effort to improve the Company's liquidity due to the disruption caused b
Slide 25: Non-Interest Income (Loss)
Non-Interest Income (Loss) Quarter over Quarter Comparison Realized Gains (Losses), net (2Q’20 vs 1Q’20) Significant reduction in net realized losses in the second quarter is due to the decreased volume of sales as compared to the first quarter, where the Company sold $2.0 billion in assets to help
Slide 26: Non-Interest Income (Loss) (Cont.)
Non-Interest Income (Loss) (Cont.) Quarter over Quarter Comparison Other Income (2Q’20 vs 1Q’20) The net increase of $0.4 million in other income is the result of an increase of $5.0 million in income related to our preferred equity investments, partially offset by a write down in value of $3.0 mill
Slide 27: Expense Analysis
Expense Analysis Quarter over Quarter Comparison General and Administrative Expenses (2Q’20 vs 1Q’20) Increase in compensation expenses largely related to annual awards in equity compensation to non-employee directors in the second quarter. Dollar Amounts in Thousands 2Q'20 1Q'20 4Q'19 3Q'19 2Q'19 S
Slide 28: Other Comprehensive Income
Other Comprehensive Income Other Comprehensive Income (2Q’20 vs 1Q’20) The change in other comprehensive income is primarily due to credit spread tightening in the second quarter from levels that had widened significantly from the impact of the COVID-19 pandemic in the first quarter. Dollar Amounts
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 three and six months ended June 30, 2020. Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Amounts in Thousands, except per share Amount Shares Per Share Amount Shares P
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. 2Q'20 1Q'20 2019 2018 2017 2016 2015 2014 Book Value Beginning $3.89 $5.78 $5.65 $6.00 $6.13 $6.54 $7.07 $6.33 End $4.35 $3.89 $5.7
Slide 31: Appendix
Appendix
Slide 32: 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 33: 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; "MF" refers to multi-family; "MTM" refers to mark-to-market; “Multi-family CDOs” refers to the debt tha
Slide 34: End Notes
End Notes Slide 1 Slide 17 ◦ Image(s) used under license from Shutterstock.com. ◦ Refer to Appendix - "Capital Allocation" for a detailed breakout of Total Investment Slide 3 Portfolio. ◦ Image(s) used under license from Shutterstock.com. ◦ Value of Distressed Loans at December 31, 2019 includes $93
Slide 35: End Notes (Cont.)
End Notes (Cont.) Slide 20 Slide 29 ◦ Senior Loan UPB represents the average unpaid principal balance of the senior loans at time ◦ Outstanding shares used to calculate book value per common share for the quarter ended of origination. June 30, 2020 are 377,465,405. ◦ NYMT Direct Loan UPB represents
Slide 36: Capital Allocation
Capital Allocation Single-Family Multi-Family At June 30, 2020 (Dollar amounts in thousands) Other Total Credit Credit Investment securities available for sale, at fair value $630,196 $288,112 $42,500 $960,808 Residential loans, at fair value 2,758,228 — — 2,758,228 Residential collateralized debt o
Slide 37: Reconciliation of Net Interest Income
Reconciliation of Net Interest Income Dollar amounts in thousands 2Q'20 1Q'20 4Q'19 3Q'19 2Q'19 Single-Family Credit Interest income, residential loans $29,420 $34,300 $24,751 $16,778 $13,600 Interest income, investment securities available 8,268 8,556 8,292 6,890 5,125 for sale (1) Interest expense
Slide 38: Thank You
Thank You From all of us at NYMT
New York Mortgage Trust — Q2 2020 Earnings Presentation on 6ix