Adamas Trust, Inc. · NASDAQ:ADAM
Adamas Trust — New York Mortgage Trust — Q1 2023 Earnings Presentation
47 slides from Adamas Trust's earnings presentation, May 4, 2023
Slide 1: 2023 First Quarter Financial Summary
New York Mortgage Trust, Inc. 2023 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, taki
Slide 3: To Our Stockholders
To Our Stockholders Management Update “Historic fed rate increases have shifted the liquidity landscape, with the impact on full display after long-term fixed rate asset pricing deteriorated at regional banks. Consequently, liquidity is being redefined as simply free cash. With the market also reass
Slide 4: Table of Contents
Table of Contents • Company Overview • Financial Summary • Market & Strategy Update • Quarterly Financial Information • Appendix 4
Slide 5: Company Overview
Company Overview /NYMT Yi \ WAS | LN AS \ : \ / ff A ( / i J 7 Wi yj y Vj
Slide 6: NYMT Overview
NYMT Overview Capital Allocation New York Mortgage Trust, Inc. (NASDAQ: NYMT) is a real Single-Family Multi-Family Cash and Other estate investment trust (“REIT”) for U.S. federal income tax purposes in the business of acquiring, investing in, financing and managing primarily mortgage-related single
Slide 7: Market Update
Market Update Full Yield Curve Inversion: U.S. Housing is likely to outperform in a downturn: • Tight monetary policy and yield curve inversion came • 40% home price appreciation from Q2 2020 to Q2 2022 before every recession since 1957 (10 in total) provides historic equity build up • The entire yi
Slide 8: Strategy Update
Strategy Update Focused on long-term value in a downturn 1H 2022 Q3 2022 Q4 2022 Q1 2023 2H 2023 Market Discount / Dislocated Market Inefficient Deep Discount / Par + / Inefficient with Wide Bid/Ask Financing / Patient No Additional Outlook Efficient Financing Financing Spreads Sellers Financing Req
Slide 9: Balance Sheet Structured for Growth
Balance Sheet Structured for Growth Portfolio Management Strategy NYMT Investment Portfolio Size (Dollar amounts in billions) • In 2023, opportunity cost of capital likely greater than any $4.6 period since the Great Financial Recession. $4.1 $4.2 ◦ Portfolio construction designed to lower portfolio
Slide 10: Key Developments
Key Developments ◦ Earnings per share (basic) of $0.12, Comprehensive earnings per share of $0.12 ◦ Undepreciated earnings per share of $0.14* Financial ◦ Book value per share of $12.95 Performance ◦ Adjusted book value per share of $15.41* (-3.0% change QoQ) ◦ 0.6% Quarterly Economic Return ◦ (0.5)
Slide 11: Financial Summary
Financial Summary \ WAS | & i — \ . \ /SNYMT V J, :
Slide 12: Financial Snapshot
Financial Snapshot Dividend Per Share Adjusted Book Value Per Share* Undepreciated Earnings (Loss) Per Share* $0.14 $0.40 $0.40 $15.89 $15.41 Earnings & $(0.50) Book Value 3.60 3.34 % 4Q 2022 1Q 2023 2.80 % 4Q 2022 1Q 2023 2.45 % % 4Q 2022 1Q 2023 2.18% 16.06% Dividend Yield Q1'23 Economic Return on
Slide 13: NYMT Continues to Enhance Debt Structure
NYMT Continues to Enhance Debt Structure Portfolio and Corporate Debt Quarterly Portfolio Financing Exposure Quarterly Portfolio (Dollar amountsFinancing in millions) Exposure (Dollar amounts in millions) 20% Portfolio Recourse Leverage Ratio MTM Borrowings 0.4x 0.6x 0.4x 0.3x 0.3x 80% $369 Non-MTM
Slide 14: Balance Sheet Summary and Portfolio Positioning
Balance Sheet Summary Portfolio Positioning (dollar amounts in millions) Portfolio Assets Portfolio and Corporate Debt 1 BPL Bridge $1,074 27% Lower duration portfolio returns Securitization Debt 60% $1,416 | (3.58% WAR) capital faster to reinvest in higher yielding opportunities RPL $618 16% Single
Slide 15: Market & Strategy Update
Market & Vf Strategy Updata@yyy Yj /NYMT
Slide 16: NYMT Investment Strategy
NYMT Investment Strategy Portfolio Acquisitions Strategy For Sustainable Earnings Growth (Dollar amounts in millions) $985 $45 $890 Paradigm Shift / Strategy Shift $157 $60 • Towards the end of Q2 2022, NYMT significantly $57 curtailed investment pipeline in all core strategies, $68 $91 as the perio
Slide 17: Single-Family Portfolio Overview
Single-Family Portfolio Overview Total Investment Total Dollar amounts in millions Portfolio 82% Capital 61% Net Asset Value Portfolio Total Key Characteristics Capital Core Recourse Portfolio Sub-Sector Current Environment Strategy Leverage Leverage Avg. Avg. % $ % $ Ratio Ratio Avg. LTV Coupon FIC
Slide 18: Business Purpose Loan-Bridge Strategy
Single-Family Business Purpose Loan-Bridge Strategy NYMT Focus Loan Count: UPB ($MM): 1,698 $1,099 Strategy & Initiatives • Opportunistically deploying capital targeting the Loan Key Characteristics following: ◦ Experienced borrowers Avg. FICO Avg. Coupon Avg. LTARV Avg. LTC ◦ Markets with positive
Slide 19: Multi-Family Portfolio Overview
Multi-Family Portfolio Overview Total Investment Total Dollar amounts in millions Portfolio 18% Capital 36% Asset Value Net Capital Key Characteristics Core Avg. Sub-Sector Current Environment Strategy % $ % $ Avg. DSCR Avg. LTV Coupon/ Target IRR − Agencies remain the primary lender in the multi-fa
Slide 20: Multi-Family Mezzanine Lending Quarterly Update
Multi-Family Asset Class-Mezzanine Lending (as of 3/31/23) Quarterly Update Property Operating Update Loan Performance Update • Only one loan within the Mezzanine Lending portfolio • Portfolio Occupancy of approx. 93% was delinquent and expected to pay off at par. • Rent Growth Rate of 8% (2021) • R
Slide 21: Current Focus
Current Focus The Company is focused on opportunities in a market undergoing a landscape change. Success in this new environment may be achieved through organic creation of liquidity, tactical asset management and prudent liability management for book value protection. Utilize a Strong Balance Sheet
Slide 22: Quarterly Financial Information
Quarterly Financial Information 22
Slide 23: Financial Results
Financial Results First Quarter Profit & Loss Dollar amounts in millions, except per share data Description Amount EPS Contribution Interest income $ 57.1 $ 0.63 Interest expense (39.3) (0.43) Net Interest Income $ 17.8 $ 0.20 Realized gains 1.1 0.01 Income from real estate 41.7 0.46 Preferred retur
Slide 24: Yields By Strategy
Yields By Strategy Quarter over Quarter Comparison Net Interest Spread (1Q’23 vs 4Q’22) Net Interest Spread for the first quarter was 0.41%, a decrease of 70 bps from the prior quarter primarily due to an increase in financing costs as a result of an increase in base interest rates related to our re
Slide 25: Adjusted Net Interest Income
Adjusted Net Interest Income* Quarter over Quarter Comparison Adjusted Net Interest Income* (1Q’23 vs 4Q’22) Adjusted Net Interest Income decreased in the first quarter as compared to the previous quarter due to a decrease in adjusted interest income attributable to BPL bridge portfolio runoff parti
Slide 26: Non-Interest Income (Loss)
Non-Interest Income (Loss) Quarter over Quarter Comparison Realized Gains (Losses), Net (1Q’23 vs 4Q’22) Net realized gains on residential loans are primarily a result of loan prepayment activity during the quarter. Dollar Amounts in Thousands 1Q'23 4Q'22 3Q'22 2Q'22 1Q'22 Residential loans $ 1,081
Slide 27: Non-Interest Income (Loss)
Non-Interest Income (Loss) Quarter over Quarter Comparison Income (Loss) from Equity Investments (1Q’23 vs 4Q’22) The increase in income from equity investments in the first quarter is primarily related to unrealized gains on unconsolidated joint venture equity investments and preferred equity inves
Slide 28: Net (Loss) Income from Real Estate
Net (Loss) Income from Real Estate Quarter over Quarter Comparison Net (Loss) Income from Real Estate (1Q’23 vs 4Q’22) The increase in net loss from real estate during the quarter was primarily due to impairment loss recognized on two multi-family real estate assets in disposal group held for sale.
Slide 29: Expense Analysis
Expense Analysis Quarter over Quarter Comparison General and Administrative Expenses (1Q’23 vs 4Q’22) Quarterly general and administrative expenses decreased primarily due to a decrease in stock-based compensation expense. Dollar Amounts in Thousands 1Q'23 4Q'22 3Q'22 2Q'22 1Q'22 Salaries, benefits
Slide 30: Other Comprehensive Income (Loss)
Other Comprehensive Income (Loss) Dollar Amounts in Thousands 1Q'23 4Q'22 3Q'22 2Q'22 1Q'22 NET INCOME (LOSS) ATTRIBUTABLE TO COMPANY'S COMMON $ 10,521 $ (48,076) $ (125,770) $ (82,389) $ (84,343) STOCKHOLDERS OTHER COMPREHENSIVE INCOME (LOSS) Increase (decrease) in fair value of investment securiti
Slide 31: Book Value
Book Value Changes in Book Value The following table analyzes the changes in GAAP Book Value and Adjusted Book Value* of our common stock for the quarter ended March 31, 2023. Quarter Ended March 31, 2023 Amounts in Thousands, except per share Amount Shares Per Share Beginning Balance, GAAP Book Val
Slide 32: Annual and Quarterly Returns
Annual and Quarterly Returns Economic/Total Rate Economic Return: Change in book value per share for the period + Dividend per share declared for the period, divided by the beginning period book value per share. Economic Return on Adjusted Book Value:* Change in Adjusted Book Value per share for the
Slide 33: Appendix
Appendix 33
Slide 34: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted Net Interest Income and Net Interest Spread In addition to the results presented in accordance with GAAP, this supplemental presentation includes certain non-GAAP financial measures, including adjusted interest income, adjusted interest expense, adjusted net inte
Slide 35: Reconciliation of Single-Family Adjusted Net Interest Income
Non-GAAP Financial Measures Reconciliation of Single-Family Adjusted Net Interest Income Dollar Amounts in Thousands 1Q'23 4Q'22 3Q'22 2Q'22 1Q'22 Single-Family GAAP interest income $ 53,519 $ 59,370 $ 64,278 $ 62,468 $ 52,801 GAAP interest expense (36,759) (38,163) (36,221) (26,472) (18,953) GAAP t
Slide 36: Reconciliation of Total Adjusted Net Interest Income
Non-GAAP Financial Measures Reconciliation of Total Adjusted Net Interest Income Dollar Amounts in Thousands 1Q'22 4Q'22 3Q'22 2Q'22 1Q'22 GAAP interest income $ 57,136 $ 62,948 $ 68,920 $ 68,020 $ 58,501 GAAP interest expense (39,335) (40,651) (38,563) (28,740) (21,465) GAAP total net interest inco
Slide 37: Undepreciated Earnings (Loss)
Non-GAAP Financial Measures Undepreciated Earnings (Loss) Undepreciated Earnings (Loss) is a supplemental non-GAAP financial measure defined as GAAP net income (loss) attributable to Company's common stockholders excluding the Company's share in depreciation expense and lease intangible amortization
Slide 38: Adjusted Book Value Per Common Share
Non-GAAP Financial Measures Adjusted Book Value Per Common Share Previously, we presented undepreciated book value per common share as a non-GAAP financial measure. Commencing with the quarter ended December 31, 2022, we discontinued disclosure of undepreciated book value per common share and instea
Slide 39: Reconciliation of Adjusted Book Value Per Common Share
Non-GAAP Financial Measures Reconciliation of Adjusted Book Value Per Common Share Dollar Amounts in Thousands (except per share 1Q'23 4Q'22 3Q'22 2Q'22 1Q'22 data) Company's stockholders' equity $ 1,737,506 $ 1,767,216 $ 1,917,506 $ 2,092,991 $ 2,217,618 Preferred stock liquidation preference (556,
Slide 40: Glossary
Glossary The following defines certain of the commonly used terms in this presentation: "ABS" refers to asset-backed securities; "Adjusted Book Value" has the meaning set forth in "Non-GAAP Financial Measures—Adjusted Book Value Per Common Share"; "Adjusted Interest Income" has the meaning set forth
Slide 41: Glossary
Glossary "Economic Return on Adjusted Book Value" is calculated based on the periodic change in Adjusted Book Value per common share, a supplemental non-GAAP measure, plus dividends declared per common share during the respective periods; "IOs" refers collectively to interest only and inverse intere
Slide 42: End Notes
End Notes Slide 1 − NYMT Investment Portfolio Size amounts for the periods presented − Image(s) used under license from Powerpoint Stock Images. represent the investment portfolio carrying values as of March 31, 2023 Slide 3 (see Appendix – “Capital Allocation”). − Image(s) used under license from P
Slide 43: End Notes
End Notes − MTM Repo includes repurchase agreement financing subject to margin Slide 17 calls. − Total Investment Portfolio, Total Capital, and Net Capital − Non-MTM Repo includes repurchase agreement financing not subject to represent amounts derived from the investment portfolio margin calls. carr
Slide 44: End Notes
End Notes − Average FICO and Average LTV for Agency RMBS strategy represent the Slide 19 weighted average borrower FICO score and weighted average loan-to- − Total Investment Portfolio, Total Capital, and Net Capital represent value of the underlying collateral per the most recent data available in
Slide 45: End Notes
End Notes − Rate of prepayment of Mezzanine Lending Investments calculated as the quotient of aggregate loan amounts redeemed in 2022 and the total loan amount of the Mezzanine Lending portfolio on January 1, 2022. Slide 21 − Image(s) used under license from Powerpoint Stock Image. Slide 22 − Image(
Slide 46: Capital Allocation
Capital Allocation At March 31, 2023 (Dollar Amounts in Thousands) Single-Family (1) Multi-Family Corporate/ Total Other Residential loans $ 3,374,856 $ — $ — $ 3,374,856 Consolidated SLST CDOs (638,513) — — (638,513) Multi-family loans — 95,309 — 95,309 Investment securities available for sale 171,
Slide 47: Reconciliation of Joint Venture Equity Investments
Reconciliation of Joint Venture Equity Investments Dollar Amounts in Thousands Cash and cash equivalents $ 11,971 Real estate, net 543,471 Assets of disposal group held for sale 1,150,379 Other assets 9,396 Total assets $ 1,715,217 Mortgages payable on real estate, net $ 397,316 Liabilities of dispo
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