Tpg Mortgage Investment Trust, Inc. · NYSE:MITT
Tpg Mortgage Investment Trust — Q4 2023 Earnings Presentation
28 slides from Tpg Mortgage Investment Trust's earnings presentation, Feb 22, 2024
Slide 1: AG Mortgage Investment Trust Q4 2023 Earnings Presentation
AG Mortgage Investment Trust, Inc. Q4 2023 Earnings Presentation December 31, 2023 1
Slide 2: Forward Looking Statements & Non-GAAP Financial Information
Forward Looking Statements & Non-GAAP Financial Information Forward Looking Statements: This presentation includes "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995 related to dividends, book value, adj
Slide 3: Q4 2023 MITT Earnings Call Presenters
Q4 2023 MITT Earnings Call Presenters T.J. Durkin Nicholas Smith Anthony Rossiello Chief Executive Officer & Chief Investment Officer Chief Financial Officer President NYSE: MITT 3
Slide 4: MITT: A Pure Play Residential Mortgage REIT
MITT: A Pure Play Residential Mortgage REIT Committed to generating attractive risk adjusted returns over the long-term as a programmatic aggregator and issuer of Non-Agency residential loan securitizations Liquidity to Support Access to Investment High Quality Portfolio Disciplined Approach Continu
Slide 5: Successfully Executed Pure Play Strategy
Successfully Executed Pure Play Strategy Demonstrated ability to execute our strategy to grow and simplify MITT's business to focus on Non-Agency Securitized Assets • In 2021, we established a roadmap to Simplify our Equity Allocation business, Grow our portfolio and Focus on Non- 500 Agency Securit
Slide 6: Acquisition of Western Asset Mortgage Capital Corporation (WMC)
Acquisition of Western Asset Mortgage Capital Corporation (WMC) Acquisition provided meaningful growth in MITT’s investment portfolio and scale to support return profile Transaction Overview – Synergies and Benefits WMC Acquisition • On December 6, 2023, MITT completed its strategic acquisition of W
Slide 7: 2023 Book Value Progression
2023 Book Value Progression1 Despite a volatile year, pre-acquisition book value increased by 1.1% and the WMC acquisition is anticipated to provide enhanced scale and profitability for our shareholders Highlights • MITT generated positive net income during 2023 as a result of asset appreciation and
Slide 8: 2023 Financial Position
2023 Financial Position Pivotal year where MITT was able to grow equity base through the WMC acquisition while maintaining strong liquidity and low leverage for future growth $10.46 $10.20 $528.4 $112.3 1.5x Book Value per Adjusted Book Value per Total Equity Liquidity2 Economic Leverage Share1 Shar
Slide 9: 2023 Performance
2023 Performance Strong appreciation in our investment $53.2mm $1.68 portfolio during a volatile market 2023 Net Interest 2023 Earnings per Share6 Income • GAAP earnings primarily driven by net realized and unrealized gains on our investment portfolio coupled with a bargain purchase gain on the WMC
Slide 10: Q4 2023 Performance
Q4 2023 Performance Continued improvement in EAD as WMC $14.4mm $1.35 acquisition provides for increased scale Q4 Net Interest Income Q4 Earnings per Share6 • GAAP earnings primarily driven by a $30.2 million bargain purchase gain coupled with an increase in net interest income through acquiring hig
Slide 11: Securitization Activity
Securitization Activity Programmatic issuer of Non-Agency securitizations throughout 2023 generating attractive equity returns on our investment portfolio Investing and Funding Lifecycle Securitized Loan Portfolio Growth ($mm) $6,000 Acquire and Aggregate Loans $5,000 Current production yields rangi
Slide 12: Non-Agency Loan Portfolio Snapshot
Non-Agency Loan Portfolio Snapshot Portfolio of Non-Agency loans with strong borrower performance and low LTVs benefiting from accumulated HPA and loan amortization FICO ($ in mm) $5.6bn $304.4mm $ 1,000 UPB of Loans 800 Securitized UPB(a) Warehouse UPB(a) 600 400 200 5.2% 8.0% — 74 68 62 78 72 66 <
Slide 13: Arc Home: MITT's Proprietary Origination Channel
Arc Home: MITT's Proprietary Origination Channel8 Cash, along with Arc Home’s MSR portfolio, provides a strong financial position to manage current dynamics in the mortgage origination market Funding by Product ($bn) Arc Home Balance Sheet ($mm) Q4 '23 Cash and Cash Equivalents $ 13.4 Mortgage Loans
Slide 14: Legacy WMC Commercial Investments
Legacy WMC Commercial Investments Expect to hold commercial investments as they organically mature or prudently exit through opportunistic sales $43.0mm of Equity Invested (by Investment Type) Commercial Investments 6.7% • Legacy Commercial Real Estate Loans and CMBS acquired in WMC merger represent
Slide 15: Earnings Power
Earnings Power Execution of our securitization business positions Equity Allocation(a) MITT with a significant amount of equity Residential 65.0% invested in retained bonds currently held at Cash 18.2% implied ROEs in the mid to high teens Commercial 7.2% Arc Home 5.5% Other 4.1% Asset UPB / Repo Co
Slide 16: Financing Profile
Financing Profile5 Successful in terming out warehouse financing, through securitizations reducing mark-to- market financing exposure and Economic Leverage Ratio3 $5.6bn of Financing as of 12/31/2023 Economic Leverage Ratio3 Commercial, 1.4% 2.0x Agency, 1.6x 0.2% 1.5x 1.3x 1.4x 1.2x 1.2x Unsecured
Slide 17: Book Value Roll-Forward
Book Value Roll-Forward1 Three Months Ended Year Ended December 31, 2023 December 31, 2023 Amount (000’s) Per Diluted Share6 Amount (000’s) Per Diluted Share6 Beginning Book Value $ 229,950 $ 11.37 $ 242,328 $ 11.39 Common dividend (4,103) (0.18) (15,063) (0.72) (a) Equity from WMC Acquisition 81,35
Slide 18: Reconciliation of 2023 EAD
Reconciliation of 2023 EAD7 Year Ended December 31, 2023 Year Ended December 31, 2023 Reconciliation of GAAP Net Income to Amount Per Diluted Amount Per Diluted Components of Earnings Available for Distribution Earnings Available for Distribution (000’s) Share6 (000’s) Share6 Net Income/(loss) avail
Slide 19: Reconciliation of Q4 2023 EAD (cont'd)
Reconciliation of Q4 2023 EAD (cont’d)7 Three Months Ended December 31, 2023 Three Months Ended December 31, 2023 Reconciliation of GAAP Net Income to Amount Per Diluted Amount Per Diluted Components of Earnings Available for Distribution Earnings Available for Distribution (000’s) Share6 (000’s) Sh
Slide 20: Appendix
Appendix Appendix 20
Slide 21: MITT & Corporate Social Responsibility
MITT & Corporate Social Responsibility TPG Angelo Gordon's values of integrity, fairness, honesty, entrepreneurship and long-term value guides MITT's business and commitment to corporate responsibility. Responsible Investing Operational Impact/Governance • Industry Recognized Transactions with Commu
Slide 22: Q4 2023 Investment Portfolio Details
Q4 2023 Investment Portfolio Details Description ($ in mm’s) Asset FMV Yield10 Securitized Debt Repo Financing Cost of Funds9, (a) FMV Residential Mortgage Loans Securitized Non-Agency Loans $5,175.2 5.5% $4,597.5 $301.2 5.0% Residential Mortgage Loans 317.7 8.1% — 278.0 6.1% Securitized RPL/NPL Loa
Slide 23: Economic Leverage
Economic Leverage3 Reconciliation of GAAP Leverage Ratio to Economic Leverage Ratio - December 31, 2023 ($ in thousands) Leverage Stockholder’s Equity Leverage Ratio Securitized debt, at fair value $ 4,711,623 GAAP Financing arrangements 767,592 Convertible senior unsecured notes 85,266 Restricted c
Slide 24: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet December 31, 2023 (Unaudited) Amount (000’s) Assets Liabilities Securitized residential mortgage loans, at fair value $ 5,358,281 Securitized debt, at fair value $ 4,711,623 Residential mortgage loans, at fair value 317,631 Financing arrangements 767,592 Commerci
Slide 25: Condensed Consolidated Statement of Operations
Condensed Consolidated Statement of Operations Year Ended December 31, 2023 (unaudited) Amount (000’s) Net Interest Income Total Earnings/(Loss) Per Share of Common Stock Interest income $ 260,329 Earnings/(Loss) Per Share - Basic $ 1.68 Interest expense 212,500 Earnings/(Loss) Per Share - Diluted $
Slide 26: Condensed Consolidated Statement of Operations (cont'd)
Condensed Consolidated Statement of Operations (cont’d) Three Months Ended December 31, 2023 (unaudited) Amount (000’s) Net Interest Income Total Earnings/(Loss) Per Share of Common Stock Interest income $ 77,527 Earnings/(Loss) Per Share - Basic $ 1.35 Interest expense 64,191 Earnings/(Loss) Per Sh
Slide 27: Footnotes
Footnotes 1. Book value is calculated using stockholders’ equity less net proceeds of our cumulative redeemable preferred stock ($220.5 million) as the numerator. Adjusted book value (“ABV”) is calculated using stockholders’ equity less the liquidation preference of our cumulative redeemable preferr
Slide 28: www.agmit.com
TPG www.agmit.com
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