Adamas Trust, Inc. · NASDAQ:ADAM
Adamas Trust — New York Mortgage Trust — Q1 2020 Earnings Presentation
42 slides from Adamas Trust's earnings presentation, May 21, 2020
Slide 1: New York Mortgage Trust 2020 First Quarter Financial Summary
New York Mortgage Trust 2020 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: NYMT's Resilience Through COVID-19
To Our Stockholders NYMT’s Resilience Through COVID-19 As we announce our results for the first quarter of 2020, in a time of turmoil and uncertainty, we wanted to provide an update to our valued investors and key stakeholders of the Company to reaffirm our confidence in the strength and resilience
Slide 4: Table of Contents
Table of Contents Company Overview Business Update Financial Summary Strategy Updates 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 Investment Portfolio Allocation which acquires, invests in, finances and manages mortgage-related and residential housing- related assets. NYMT has a history of successfully navigating changing economic conditio
Slide 7: Business Updates
Business Updates
Slide 8: Market Conditions
Market Conditions Broader Economy Housing Fundamentals GDP Contraction Mortgage Forbearance US COVID-19 continues to affect all sectors of the The CARES Act instructed mortgage servicers to global economy. GDP contracted 4.8% in the first grant forbearance to agency loans. While this mitigated quart
Slide 9: COVID-19 Impact on REIT Market
COVID-19 Impact on REIT Market NYMT continues to mitigate market volatility by increasing business efficiency, flexibility & liquidity Market Event Impact on REIT Market Decline in Asset Values Decline in Asset Values Anticipating stress from COVID-19, dealers started The significant decrease in ass
Slide 10: COVID-19 Pandemic Operations
COVID-19 Pandemic Operations NYMT prioritizes portfolio value protection to enable Stockholders to benefit from recovery Operational Repositioning Portfolio Protection Workforce Protection Business Strategy The Company remains focused on the well-being of its NYMT is maintaining a disciplined and me
Slide 11: NYMT Response to COVID-19
NYMT Response to COVID-19 A Commitment to Delivering Attractive Total Returns with Lower Volatility Reduce Risks Increase Liquidity Protect Book Value Reduced Leverage Increased Cash Available $1.4B Unencumbered Assets Reduced portfolio leverage multiple in Improved cash liquidity by selling The Com
Slide 12: Q/Q Portfolio Comparison
Q/Q Portfolio Comparison As of December 31, 2019 As of March 31, 2020 Carrying Leverage Carrying Leverage Category Financing Type Financings Financings Dollar amounts in thousands Value Ratio Value Ratio Agency Repo (MTM) $ 1,088,433 $ 945,926 6.6x SF Credit Securities Repo (MTM) 965,846 594,286 1.6
Slide 13: Financial Summary First Quarter 2020
Financial Summary First Quarter 2020
Slide 14: First Quarter Financial Snapshot
First Quarter Financial Snapshot Loss Per Share Dividend Per Share Net Interest Margin Basic Comprehensive Q1 Dividend $(1.71) $(2.11) Suspended Earnings & Book Value 2.90% 2.92% Price to Book Economic Return on Book Value 2.40% 2.16% 2.40% Market Price Book Value Price/Book Quarter End $1.55 $3.89
Slide 15: First Quarter Summary
First Quarter Summary dollar amounts in millions, except per share data Equity Capital Market Raised Total Raised Capital $ 512.0 Accretive Capital from Common Equity Raises $ 20.0 Investment Activity Purchases $ 632.8 Sales $ (1,988.9) Net Investment Activity $ (1,356.1) Earnings Net Loss Attributa
Slide 16: Financial Results First Quarter Summary
Financial Results First Quarter Summary dollar amounts in millions, except per share data Book Value Per Share Past Five Quarters First Quarter Profit & Loss Net Interest Income $ 47.1 10% $0.67 23% $1.44 Non-Interest Loss (622.0) Total Net Interest Income & Non-Interest Loss (574.9) $5.78 $5.77 $5.
Slide 17: Strategy Updates
Strategy Updates
Slide 18: Investment Strategies
Investment Strategies Single-Family Multi-Family Residential 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 elig
Slide 19: 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 (“Residential Loans”) into a performing status. In Performing Loan Strategies, record low mortgage rates a
Slide 20: Single-Family Credit Asset Management
Single-Family Credit Asset Management Residential Loan Purchases SF Loan Asset Management Summary Since Internalization (from 7/1/2018 to 3/31/2020) Loan Count 5,230 Deep Credit Expertise Avg. Months from Purchase 12 NYMT’s internalized credit team has on average over 10 years of experience reviewin
Slide 21: Multi-Family Credit Portfolio Overview
Multi-Family Credit Portfolio Overview Strategy Update In the first quarter, the Company exited its position in Freddie Mac’s K- Series first loss positions to increase liquidity and reduce market volatility risk. Additionally, the Direct Preferred/Mezzanine loan program, continues to be an instrume
Slide 22: Multi-Family Credit Direct Lending
Multi-Family Credit Direct Lending Average Loan Portfolio MF Direct Lending Summary As of 3/31/2020 Loan Count 50 Extensive Investment History NYMT has extensive experience managing across Property Value $43.7MM various MF asset classes since 2009, including a longstanding relationship with Freddie
Slide 23: Agency Portfolio Overview
Agency Portfolio Overview Strategy Overview In response to COVID-19 pandemic market turmoil we focused on improving our liquidity and long-term capital preservation, by selling 100% of our Agency securities portfolio totaling $1.1 billion and reducing our related repurchase agreements by $1.1 billio
Slide 24: Business Summary First Quarter 2020
Business Summary First Quarter 2020
Slide 25: Business Summary First Quarter 2020 Overview
Business Summary First Quarter 2020 Overview NYMT Outlook for the Second Quarter of 2020: A Focus on Generating Total Risk-Adjusted Returns by Investing in Assets with Low Relative Risk Metrics in a Diversified Approach 2Q Strategy Initiatives ▪ Credit Focused Strategy with investments that contain
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 (1Q’20 vs 4Q’19) Portfolio net interest margin of 292 basis points was largely unchanged from the previous quarter, however we did see a 61 basis point improvement in our Single-Family Credit portfolio. Our Mu
Slide 28: Net Interest Income
Net Interest Income Quarter over Quarter Comparison Net Interest Income (1Q’20 vs 4Q’19) An increase of $3.1 million from the previous quarter is due to an increase in average earnings assets from the deployment of our capital raises in January and February. Due to our portfolio reduction in respons
Slide 29: Non-Interest (Loss) Income
Non-Interest (Loss) Income Quarter over Quarter Comparison Realized Gains (Losses), net (1Q’20 vs 4Q’19) In an effort to manage the Company’s portfolio through the unprecedented turmoil in the financial markets and improve liquidity, the Company sold approximately $2.0 billion of assets and terminat
Slide 30: Non-Interest (Loss) Income (Cont.)
Non-Interest (Loss) Income (Cont.) Quarter over Quarter Comparison Other Income (1Q’20 vs 4Q’19) The decrease in other income is primarily attributable to $4.0 million in mark-to-market losses on our MF direct lending accounted for under the equity method and a $4.0 million decrease in income from o
Slide 31: Expense Analysis
Expense Analysis Quarter over Quarter Comparison General and Administrative Expenses (1Q’20 vs 4Q’19) Increase in compensation costs of $1.1 million as compared to the fourth quarter of 2019 was primarily related to amortization costs associated with our long term incentive plans for 2020, 2019 and
Slide 32: Comprehensive Income
COMPREHENSIVE INCOME Comprehensive Income (1Q’20 vs 4Q’19) Significant decrease in comprehensive income is due to the market turmoil from COVID-19 and the mark-to-market decrease in values across our investment portfolio. Dollar Amounts in Thousands 1Q'20 4Q'19 3Q'19 2Q'19 1Q'19 NET (LOSS) INCOME AT
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 ended March 31, 2020. Quarter Ended March 31, 2020 Amounts in Thousands, except per share Amount Shares Per Share Beginning Balance $1,683,911 291,371 $5.78 Cumulative-effect a
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. 1Q 2020 2019 2018 2017 2016 2015 2014 Book Value Beginning $5.78 $5.65 $6.00 $6.13 $6.54 $7.07 $6.33 End $3.89 $5.78 $5.65 $6.00 $6
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; "MF" refers to multi-family; “Multi-family CDOs” refers to the debt that permanently finances the multi
Slide 38: End Notes
End Notes Slide 1 Slide 19 ◦ Image(s) used under license from Shutterstock.com. ◦ Refer to Appendix - "Capital Allocation" for a detailed breakout of Total Investment Slide 6 Portfolio. ◦ Refer to Appendix - "Capital Allocation" for a detailed breakout of Total Investment ◦ Value of Residential Loan
Slide 39: End Notes (Cont.)
End Notes (Cont.) Slide 22 Slide 33 ◦ 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. March 31, 2020 are 377,465,405. ◦ NYMT Direct loan UPB represents
Slide 40: Capital Allocation
Capital Allocation Single-Family Multi-Family At March 31st, 2020 (Dollar amounts in thousands) Other Total Credit Credit Investment securities available for sale, at fair value $576,108 $268,856 $42,344 $887,308 Residential loans, at fair value 2,776,630 — — 2,776,630 Residential collateralized deb
Slide 41: Reconciliation of Net Interest Income
Reconciliation of Net Interest Income Dollar amounts in thousands 1Q'19 4Q'19 3Q'19 2Q'19 1Q'19 Single-Family Credit Interest income, residential loans $34,300 $24,751 $— $— $— Interest income, investment securities available 8,556 8,292 — — — for sale (1) Interest expense, SLST CDOs (2) (8,535) (2,
Slide 42: Thank You
Thank You From all of us at NYMT
New York Mortgage Trust — Q1 2020 Earnings Presentation on 6ix