Adamas Trust, Inc. · NASDAQ:ADAM
Adamas Trust — New York Mortgage Trust — Q2 2021 Earnings Presentation
39 slides from Adamas Trust's earnings presentation, Aug 6, 2021
Slide 1: 2021 Second Quarter Financial Summary
New York Mortgage Trust 2021 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
To Our Stockholders Management Update "The Company delivered solid results in the second quarter, with GAAP earnings per share of $0.11, comprehensive earnings per share of $0.12 and an increase in book value per common share to $4.74, generating a total economic return for the quarter of 2.8%. More
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 $4.74 ◦ Achieved a 2.8% Quarterly Economic Return ◦ Declared second quarter common stock dividend of $0.10 per share, and preferred Stockholder stock dividends Value ◦
Slide 8: Financial Summary
Financial Summary Second Quarter 2021
Slide 9: Financial Snapshot
Financial Snapshot Earnings Per Share Dividend Per Share Net Interest Margin Basic Comprehensive Q2 Dividend $0.11 $0.12 $0.10 Earnings & Book Value Price to Book Economic Return on Book Value 2.43% 2.18% 2.30% 2.42% 2.97% Market Price Book Value Price/Book 3 Months Ended $4.47 $4.74 0.94 2.8% 2Q 20
Slide 10: Second Quarter Summary
Second Quarter Summary Dollar amounts in millions, except per share data 2Q 2021 Investment Activity Acquisitions $ 289.9 Sales $ (15.1) Prepayments and Redemptions $ (309.1) Net Investment Activity $ (34.3) Earnings Net Income Attributable to Common Stockholders $ 42.9 Comprehensive Income Attribut
Slide 11: Financial Results
Financial Results Second Quarter Profit & Loss Dollar amounts in millions, except per share data Price to Book Value Over Time Price to Book Value Over Time 0.95 0.94 Net Interest Income $ 31.5 0.78 0.60 0.56 Non-Interest Income 43.3 $4.74 Total Net Interest Income & Non-Interest $4.71 $4.71 74.8 In
Slide 12: Market & Strategy Update
Market & Strategy Update
Slide 13: Strategy Update
Strategy Update A Selective Approach to Portfolio Management Market Trends Impact Strategy U.S. Housing Supply Deficit Bridge Lending BPL * 74% LTV (at cost) * Estimated at least 5.5 million new units are * Focus on short-term, bridge lending to $622MM * 66% LTV (after repair) needed to meet demand
Slide 14: NYMT Investment Strategy
NYMT Investment Strategy Pipeline Strategy For Sustainable Earnings Growth Portfolio Acquisitions (Dollar amounts in millions) $490 Focus NYMT focuses on portfolio opportunities in markets where the Company sees a competitive advantage due to operational barriers to entry. $139 $364 $6 $11 $31 $55 $
Slide 15: NYMT Continues to Enhance Capital Structure
NYMT Continues to Enhance Capital Structure 2.8% Economic Return Generated in the Second Quarter Quarterly Portfolio Financing Exposure (Dollar amounts in millions) Strategy Portfolio Leverage Ratio Continued to primarily focus on investments away from 0.4x 0.3x 0.2x 0.2x 0.1x CUSIP securities that
Slide 16: Single-Family Portfolio Overview
Single-Family Portfolio Overview Total Investment Portfolio Total Capital Dollar amounts in millions 83% 77% Asset Value Net Capital Portfolio Loan Key Characteristics Core Strategy Sub-Sector Leverage Current Environment % $ % $ Ratio Avg. FICO Avg. LTV Avg. Coupon • Seasoned re-performing 850 4.84
Slide 17: Single-Family Opportunity Highlights
Single-Family Opportunity Highlights RPL Performance Update Quarterly Update WT. Avg. Price 6/30/21 64% 36% $97 Q2 Portfolio Activity ◦ Purchased $258 million of residential loans, including: 3/31/21 64% 36% $96 – $165 million BPL – $93 million S&D 12/31/20 62% 38% $94 ◦ Purchased $19 million of non
Slide 18: Single-Family Business Purpose Loan Strategy
Single-Family Business Purpose Loan Strategy NYMT Expertise Loan Count: 1,437 UPB ($MM): $622 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 and
Slide 19: Multi-Family Portfolio Overview
Multi-Family Portfolio Overview Total Investment Portfolio Total Capital Dollar amounts in millions 15% 21% Asset Value Net Capital Loan Key Characteristics Core Strategy Sub-Sector Current Environment Avg. Coupon/ % $ % $ Avg. DSCR Avg. LTV Target IRR • Recent decrease in 7/10-yr agency pricing by
Slide 20: Multi-Family Opportunity Highlights
Multi-Family Opportunity Highlights Quarterly Update Loan Portfolio Characteristics as of 6/30/2021 (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: Current Focus
Current Focus The Company continues to focus on asset growth through proprietary channels and prudent liability management to increase our profitability. Utilize a Strong Balance Sheet to Capture Superior Market Opportunities ◦ Invest across capital structures and sectors to locate compelling risk-a
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’21 vs 1Q’21) Portfolio net interest margin for the second quarter was 2.97%, an increase from the prior quarter primarily due to 1) continued investment in higher yielding business purpose loans and 2) dec
Slide 24: Net Interest Income
Net Interest Income Quarter over Quarter Comparison Net Interest Income (2Q’21 vs 1Q’21) Total net interest income increased from the previous quarter primarily due to our continued investment in higher yielding business purpose loans, which contributed to the $2.1 million increase in total interest
Slide 25: Non-Interest Income (Loss)
Non-Interest Income (Loss) Quarter over Quarter Comparison Realized Gains (Losses), net (2Q’21 vs 1Q’21) Net realized gains of $4.6 million on residential loans is primarily a result of loan prepayment activity. Net realized gains of $0.4 million on investment securities is related to gain from the
Slide 26: Non-Interest Income (Loss)
Non-Interest Income (Loss) Quarter over Quarter Comparison Income from Equity Investments (2Q’21 vs 1Q’21) The net increase of $7.2 million in the second quarter is primarily related to an increase in equity income related to the redemption of a residential equity investment and greater unrealized g
Slide 27: Expense Analysis
Expense Analysis Quarter over Quarter Comparison General and Administrative Expenses (2Q’21 vs 1Q’21) Increase in compensation expenses of $1.0 million largely related to annual awards in equity compensation to non-employee directors in the second quarter. Dollar Amounts in Thousands 2Q'21 1Q'21 4Q'
Slide 28: Other Comprehensive Income (Loss)
Other Comprehensive Income (Loss) Other Comprehensive Income (Loss) (2Q’21 vs 1Q’21) The change in other comprehensive income is primarily due to continued improvement in credit spreads. Dollar Amounts in Thousands 2Q'21 1Q'21 4Q'20 3Q'20 2Q'20 NET INCOME ATTRIBUTABLE TO COMPANY'S COMMON $ 42,944 $
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 months ended June 30, 2021. Three Months Ended June 30, 2021 Amounts in Thousands, except per share Amount Shares Per Share Beginning Balance $ 1,787,031 379,273 $ 4.71 Common st
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'21 1Q'21 2020 2019 2018 2017 Book Value Beginning $ 4.71 $ 4.71 $ 5.78 $ 5.65 $ 6.00 $ 6.13 Ending $ 4.74 $ 4.71 $ 4.71 $ 5.78 $
Slide 31: Appendix
Appendix
Slide 32: Glossary
Glossary The following defines certain of the commonly used terms in this presentation: “Agency” refers to CMBS or RMBS representing interests in or obligations backed by pools of mortgage loans issued and guaranteed by a government sponsored enterprise (“GSE”), such as the Federal National Mortgage
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 • BPL, S&D and Multi-Family Direct/JV amounts represent the fair value of • Image(s) used under license from Shutterstock.com. the assets as of June 30, 2021. Slide 3 • BPL, S&D and Multi-Family Direct/JV percentages represent the • Image(s) used under license from Shutterstock.com
Slide 35: End Notes
End Notes • Portfolio Leverage Ratio represents outstanding repurchase agreement Slide 18 financing related to the strategy divided by the net capital allocated to the • UPB represents the interest bearing balance of BPLs held as of strategy. June 30, 2021. Average FICO and Average Coupon represent
Slide 36: End Notes
End Notes • Average DSCR and Average LTV of Multi-Family Loans represent the • Total Interest Income, Total Interest Expense, and Total Net Interest Income weighted average debt service coverage ratio and weighted average include amounts related to our “Other” portfolio not shown separately within c
Slide 37: Capital Allocation
Capital Allocation At June 30, 2021 (Dollar amounts in thousands) Single-Family (1) Multi-Family Other Total Residential loans $ 3,202,743 $ — $ — $ 3,202,743 Consolidated SLST CDOs (948,090) — — (948,090) Multi-family loans — 126,719 — 126,719 Investment securities available for sale (2) 419,287 14
Slide 38: Reconciliation of Net Interest Income
Reconciliation of Net Interest Income Dollar amounts in thousands 2Q'21 1Q'21 4Q'20 3Q'20 2Q'20 Single-Family Interest income, residential loans $ 30,088 $ 27,630 $ 21,899 $ 19,808 $ 17,898 Interest income, investment securities available for sale 4,039 4,415 4,892 5,605 8,268 Interest income, Conso
Slide 39: Thank You
Thank You From all of us at NYMT
New York Mortgage Trust — Q2 2021 Earnings Presentation on 6ix