Adamas Trust, Inc. · NASDAQ:ADAM
Adamas Trust — New York Mortgage Trust — Q3 2020 Earnings Presentation
36 slides from Adamas Trust's earnings presentation, Nov 5, 2020
Slide 1: New York Mortgage Trust 2020 Third Quarter Financial Summary
New York Mortgage Trust 2020 Third 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 delivered another solid quarter despite the current environment, generating $0.24 GAAP earnings per share and $0.30 comprehensive earnings per share. The Company’s book value increased to $4.58, an increase of approximately 5% from the previous quar
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 $2.3B Portfolio Equity 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 multifamily re
Slide 7: Third Quarter 2020 Key Developments
Key Developments Third Quarter 2020 Key Developments Strengthened NYMT’s near-term defensive investment posture against anticipated volatility while producing strong risk-adjusted returns. • Earnings per share $0.24 Financial • Comprehensive earnings per share $0.30 Performance • Book Value per Comm
Slide 8: Financial Summary Third Quarter 2020
Financial Summary Third Quarter 2020
Slide 9: Financial Snapshot
Financial Snapshot Earnings Per Share Dividend Per Share Net Interest Margin Basic Comprehensive Q3 Dividend $0.24 $0.30 $0.075 Earnings & Book Value 2.90% 2.92% Price to Book Economic Return on Book Value 2.40% 2.43% 2.18% Market Price Book Value Price/Book 3 Months Ended $2.55 $4.58 0.56 7.0% 3Q 2
Slide 10: Third Quarter Summary
Third Quarter Summary Dollar amounts in millions, except per share data 3Q 2020 YTD 2020 Equity Capital Market Raised Total Raised Capital $ — $ 512.0 Accretive Capital from Common Equity Raises $ — $ 20.0 Investment Activity Purchases $ 111.8 $ 746.7 Sales $ (370.2) $ (2,464.4) Net Investment Activ
Slide 11: Financial Results Third Quarter Profit & Loss
Financial Results Third Quarter Profit & Loss Dollar amounts in millions, except per share data 5% Book Value Recovery in Third Quarter Net Interest Income $ 25.5 Non-Interest Income 90.5 Total Net Interest Income & Non-Interest Income 116.0 $5.78 Salaries, Benefits & Directors’ Compensation (7.2) $
Slide 12: Market & Strategy Update
Market & Strategy Update
Slide 13: Enhanced Cash Position
Enhanced Cash Position A Meticulous Approach to Liquidity Management 7.0% Economic Return Generated in Q3 Quarterly Portfolio Financing Exposure (dollar amounts in millions) Elevated Cash Balance Despite an attractive fundamental landscape, cash balances are expected to be elevated in the near-term.
Slide 14: Seizing Opportunity in Volatility
Seizing Opportunity in Volatility Significant Reinvestment Opportunity NYMT's Cash Levels Provide Protection Against Market Volatility & Opportunities to Advance on Superior Investments Dry Powder Available Significant Q/Q As of (dollar amounts in millions) Incremental EPS Growth Potential9/30/2020
Slide 15: Single-family Credit Portfolio Overview
Single-family Credit Portfolio Overview Single-Family 59% Portfolio Equity As of 9/30/2020 Loan Key Characteristics Core Strategy Sub-Sector Net Equity Current Environment Avg. FICO AVG. LTV AVG. Coupon 76% 4.88% • Limited impact due to COVID-19 forbearance on Distressed 850 • Seasoned re-performing
Slide 16: Single-Family Credit Opportunity Highlights
Single-Family Credit Opportunity Highlights Third Quarter Update 2% Active COVID-19 Assistance Plan Loans as of 9/30/2020 (Dollar amounts in millions) Sector Count Balance 9/30/20 8/31/20 7/31/20 6/30/20 5/31/20 4/31/20 Decline in COVID-19 Assistance Plans • 2% of the residential whole loan portfoli
Slide 17: Multifamily Credit Portfolio Overview
Multifamily Credit Portfolio Overview Multifamily 25% Portfolio Equity As of 9/30/2020 Loan Key Characteristics Core Strategy Sub-Sector Net Equity Current Environment Avg. DSCR AVG. LTV AVG. Coupon 82% 11.45% • COVID-19 impacted loans not material to 2.0x portfolio. Preferred Equity/ Mezzanine lend
Slide 18: Multifamily Credit Opportunity Highlights
Multifamily Credit Opportunity Highlights Third Quarter Update Multifamily Performance Summary as of 9/30/2020 (Dollar amounts in millions) Count Balance 9/30/20 6/30/20 3/31/20 COVID-19 Related Assistance Plans Unchanged Performing 48 $335 99% 99% 100% • As of 9/30/20, only one loan equaling 1% of
Slide 19: Outlook
Outlook NYMT Outlook for the Fourth Quarter of 2020: 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 to Capture Superior Market Opportunities • Continue to operate with a high cash balanc
Slide 20: Quarterly Comparative Financial Information
Quarterly Comparative Financial Information
Slide 21: Portfolio Yields by Strategy
Portfolio Yields by Strategy Quarter over Quarter Comparison Portfolio Net Interest Margin (3Q’20 vs 2Q’20) Portfolio net interest margin for the third quarter was 2.18%, a decrease from the second quarter primarily due to higher borrowing costs associated with non-mark-to-market and non-recourse se
Slide 22: Net Interest Income Quarter over Quarter Comparison
Net Interest Income Quarter over Quarter Comparison Net Interest Income (3Q’20 vs 2Q’20) The $3.0 million decrease from the previous quarter is due to the reduction of non-Agency RMBS and CMBS securities in our portfolio and higher borrowing costs associated with the two non-mark-to-market and non-r
Slide 23: Non-Interest Income (Loss): Realized and Unrealized Gains
Non-Interest Income (Loss) Quarter over Quarter Comparison Realized Gains (Losses), net (3Q’20 vs 2Q’20) Net realized losses of $2.6 million on investment securities in the third quarter includes $6.1 million in gains from sales of CMBS offset by $8.7 million in losses from sales of non-Agency RMBS.
Slide 24: Non-Interest Income (Loss): Other Income
Non-Interest Income (Loss) Quarter over Quarter Comparison Other Income (3Q’20 vs 2Q’20) The net increase of $7.9 million in other income in the third quarter is primarily the result of an increase in income generated by investment in entities that invest in residential properties and loans resultin
Slide 25: Expense Analysis
Expense Analysis Quarter over Quarter Comparison General and Administrative Expenses (3Q’20 vs 2Q’20) Decrease in compensation expenses largely related to annual awards in equity compensation to non-employee directors in the second quarter. Dollar Amounts in Thousands 3Q'20 2Q'20 1Q'20 4Q'19 3Q'19 S
Slide 26: Other Comprehensive Income
Other Comprehensive Income Other Comprehensive Income (3Q’20 vs 2Q’20) Other comprehensive income in the third quarter is primarily due to continued improvement in credit spreads. Dollar Amounts in Thousands 3Q'20 2Q'20 1Q'20 4Q'19 3Q'19 NET INCOME (LOSS) ATTRIBUTABLE TO COMPANY'S COMMON $91,344 $10
Slide 27: 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 nine months ended September 30, 2020. Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Amounts in Thousands, except per share Amount Shares Per Shar
Slide 28: 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. 3Q'20 2Q'20 1Q'20 2019 2018 2017 2016 2015 Book Value Beginning $4.35 $3.89 $5.78 $5.65 $6.00 $6.13 $6.54 $7.07 End $4.58 $4.35 $3.
Slide 29: Appendix
Appendix
Slide 30: 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 31: 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 multifamily; "MTM" refers to mark-to-market; “Multifamily CDOs” refers to the debt that permanen
Slide 32: End Notes
End Notes Slide 1 Slide 14 • Image(s) used under license from Shutterstock.com. • Undrawn available financing represents the difference between the maximum aggregate Slide 3 uncommitted principal amounts and the outstanding amounts under the related repurchase • Image(s) used under license from Shut
Slide 33: End Notes
End Notes Slide 17 Slide 22 • Refer to Appendix - "Capital Allocation" for a detailed breakout of Portfolio Equity. • Refer to Appendix - “Reconciliation of Net Interest Income" for reconciliation of net • Net Equity does not include other investments amounting to approximately $7.8 million as inter
Slide 34: Capital Allocation
Capital Allocation Single-Family Multifamily At September 30, 2020 (Dollar amounts in thousands) Other Total Credit Credit Investment securities available for sale, at fair value $375,765 $182,925 $45,007 $603,697 Residential loans, at fair value 2,822,789 — — 2,822,789 Residential collateralized de
Slide 35: Reconciliation of Net Interest Income
Reconciliation of Net Interest Income Dollar amounts in thousands 3Q'20 2Q'20 1Q'20 4Q'19 3Q'19 Single-Family Credit Interest income, residential loans $30,704 $29,420 $34,300 $24,751 $16,778 Interest income, investment securities available 5,605 8,268 8,556 8,292 6,890 for sale (1) Interest expense
Slide 36: Thank You
Thank You From all of us at NYMT
New York Mortgage Trust — Q3 2020 Earnings Presentation on 6ix