Adamas Trust, Inc. · NASDAQ:ADAM
Adamas Trust — New York Mortgage Trust — Q3 2021 Earnings Presentation
41 slides from Adamas Trust's earnings presentation, Nov 2, 2021
Slide 1: 2021 Third Quarter Financial Summary
New York Mortgage Trust 2021 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
To Our Stockholders Management Update "The Company continued to deliver solid results in the third quarter, generating GAAP earnings per share of $0.10 and comprehensive earnings per share of $0.08. The numbers for the quarter were negatively impacted by nonrecurring, one-time charges, including $3.
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 Reconciliation of Joint Venture Equity Investments
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 $0.10 Financial ◦ Comprehensive earnings per share $0.08 Performance ◦ Book value per share of $4.74 ◦ Achieved a 2.1% Quarterly Economic Return ◦ Declared third quarter common stock dividend of $0.10 per share Stockholder ◦ Common stock dividend yield of 9.4% (
Slide 8: Financial Summary
Financial Summary Third Quarter 2021
Slide 9: Financial Snapshot
Financial Snapshot Earnings Per Share Dividend Per Share Net Interest Margin Basic Comprehensive Q3 Dividend $0.10 $0.08 $0.10 Earnings & 3.25% Book Value Price to Book Economic Return on Book Value 2.18% 2.30% 2.42% 2.97% Market Price Book Value Price/Book 3 Months Ended $4.26 $4.74 0.90 2.1% 3Q 20
Slide 10: Third Quarter Summary
Third Quarter Summary Dollar amounts in millions, except per share data 3Q 2021 Investment Activity Acquisitions $ 504.6 Sales $ (182.6) Prepayments and Redemptions $ (306.6) Net Investment Activity $ 15.4 Earnings Net Income Attributable to Common Stockholders $ 36.9 Comprehensive Income Attributab
Slide 11: Financial Results
Financial Results Third Quarter Profit & Loss Dollar amounts in millions, except per share data Non-Interest Income: in millions Net Interest Income $ 31.0 Realized Gains $ 8.3 Unrealized Gains 30.1 Non-Interest Income 49.4 Preferred Return on Mezzanine Lending 6.2 Income from Operating Real Estate
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 * 72% LTV (at cost) * At least 5.5 million new units are needed to * Focus on short-term, bridge lending to $753MM * 65% LTV (after repair) meet estimated housing
Slide 14: NYMT Investment Strategy
NYMT Investment Strategy Strategy For Sustainable Earnings Growth Portfolio Acquisitions (Dollar amounts in millions) $505 $490 Focus $38 NYMT seeks investment opportunities in markets where the Company finds a competitive advantage due to operational barriers to entry. $139 $96 $364 $6 $11 $31 $55
Slide 15: NYMT Continues to Enhance Debt Structure
NYMT Continues to Enhance Debt Structure Strategy for Sustainable Financing Quarterly Portfolio Financing Exposure (Dollar amounts in millions) Strategy Portfolio Leverage Ratio Continue to primarily focus on investments away from 0.3x 0.2x 0.2x 0.1x 0.1x CUSIP securities that do not rely on short-t
Slide 16: Single-Family Portfolio Overview
Single-Family Portfolio Overview Total Investment Portfolio Total Capital Dollar amounts in millions 83% 74% Asset Value Net Capital Portfolio Loan Key Characteristics Core Strategy Sub-Sector Leverage Current Environment % $ % $ Ratio Avg. FICO Avg. LTV Avg. Coupon • Strong HPA growth continues to
Slide 17: Single-Family Opportunity Highlights
Single-Family Opportunity Highlights RPL Performance Update Quarterly Update WT. Avg. Price Q3 Portfolio Activity 9/30/21 66% 34% $97 ◦ Purchased $371 million of residential loans, including: – $273 million BPL 6/30/21 64% 36% $97 – $98 million S&D ◦ Purchased $29 million of non-Agency RMBS 3/31/21
Slide 18: Single-Family Business Purpose Loan Strategy
Single-Family Business Purpose Loan Strategy NYMT Expertise Loan Count: 1,780 UPB ($MM): $754 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% 20% Asset Value Net Capital Loan Key Characteristics Core Strategy Sub-Sector Current Environment Avg. Coupon/ % $ % $ Avg. DSCR Avg. LTV Target IRR • Bridge lenders are favored for value add, lea
Slide 20: Multi-Family Opportunity Highlights
Multi-Family Opportunity Highlights Quarterly Update Loan Portfolio Characteristics as of 9/30/2021 (Dollar amounts in millions) Property Operating Update ◦ Portfolio located primarily in the South and Southeast of State (Top 10) Count Balance % Total Coupon LTV DSCR the U.S. TX 13 $ 114 33.1 % 11.4
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 (3Q’21 vs 2Q’21) Portfolio net interest margin for the third quarter was 3.25%, an increase from the prior quarter primarily due to 1) higher yield on average interest earning assets due to our continued inves
Slide 24: Net Interest Income
Net Interest Income Quarter over Quarter Comparison Net Interest Income (3Q’21 vs 2Q’21) Net interest income was relatively flat for the quarter as compared to the previous quarter. Our continued investment in higher-yielding business purpose loans during the quarter contributed to the $1.7 million
Slide 25: Non-Interest Income (Loss)
Non-Interest Income (Loss) Quarter over Quarter Comparison Realized Gains (Losses), net (3Q’21 vs 2Q’21) Net realized gains of $5.1 million on investment securities is primarily related to the sale of CMBS and non-Agency RMBS during the quarter which generated $5.0 million and $4.8 million of realiz
Slide 26: Non-Interest Income (Loss)
Non-Interest Income (Loss) Quarter over Quarter Comparison Income from Equity Investments (3Q’21 vs 2Q’21) The net decrease of $2.6 million in the third quarter is primarily related to the redemption of a residential equity investment in the second quarter partially offset by an increase in preferre
Slide 27: Net Loss from Operating Real Estate
Net Loss from Operating Real Estate Quarter over Quarter Comparison Net Loss from Operating Real Estate (3Q’21 vs 2Q’21) The increase in both income from and expenses related to operating real estate in the third quarter is primarily related to additional consolidated joint venture multi-family inve
Slide 28: Expense Analysis
Expense Analysis Quarter over Quarter Comparison General and Administrative Expenses (3Q’21 vs 2Q’21) Decrease in compensation expenses is largely related to decreases in stock based compensation expense and bonus accruals during the third quarter. Increase in other general and administration is pri
Slide 29: Other Comprehensive Income (Loss)
Other Comprehensive Income (Loss) Other Comprehensive Income (Loss) (3Q’21 vs 2Q’21) The change in other comprehensive income is primarily due to previously recognized unrealized gains reported in other comprehensive income that were reclassified to net realized gains in relation to the sale of cert
Slide 30: 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 September 30, 2021. Three Months Ended September 30, 2021 Amounts in Thousands, except per share Amount Shares Per Share Beginning Balance $ 1,799,339 379,372 $ 4.74
Slide 31: 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'21 2Q'21 1Q'21 2020 2019 2018 Book Value Beginning $ 4.74 $ 4.71 $ 4.71 $ 5.78 $ 5.65 $ 6.00 Ending $ 4.74 $ 4.74 $ 4.71 $ 4.71
Slide 32: Appendix
Appendix
Slide 33: 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 34: 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; "Mezzanine Lending" refers to the Company's preferred equity in, and mezzanine loans to, entities that have mul
Slide 35: End Notes
End Notes Slide 1 • BPL, S&D and Multi-Family Direct/JV percentages represent the • Image(s) used under license from Shutterstock.com. percentage of the Total Investment Portfolio as of September 30, 2021 Slide 3 (see Appendix - "Capital Allocation"). • Image(s) used under license from Shutterstock.
Slide 36: 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. September 30, 2021. Average FICO and Average Coupon repre
Slide 37: End Notes
End Notes • Refer to Appendix - "Reconciliation of Joint Venture Equity Investments" for Slide 23 a detailed breakout. • Portfolio Total Avg. Interest Earning Assets, Portfolio Total Yield on • Average DSCR and Average LTV of Multi-Family Loans represent the Average Interest Earning Assets and Portf
Slide 38: Capital Allocation
Capital Allocation At September 30, 2021 (Dollar amounts in thousands) Single-Family (1) Multi-Family Other Total Residential loans $ 3,273,807 $ — $ — $ 3,273,807 Consolidated SLST CDOs (904,976) — — (904,976) Multi-family loans — 119,812 — 119,812 Investment securities available for sale (2) 350,3
Slide 39: Reconciliation of Net Interest Income
Reconciliation of Net Interest Income Dollar amounts in thousands 3Q'21 2Q'21 1Q'21 4Q'20 3Q'20 Single-Family Interest income, residential loans $ 31,488 $ 30,088 $ 27,630 $ 21,899 $ 19,808 Interest income, investment securities available for sale 4,527 4,039 4,415 4,892 5,605 Interest income, Conso
Slide 40: Reconciliation of Joint Venture Equity Investments
Reconciliation of Joint Venture Equity Investments Dollar amounts in thousands At September 30, 2021 Cash and cash equivalents $ 3,905 Operating real estate, net 261,178 Equity investments 10,290 (a) Lease intangible, net 7,975 Other assets 11,620 Total assets $ 294,968 Mortgages payable on operatin
Slide 41: Thank You
Thank You From all of us at NYMT
New York Mortgage Trust — Q3 2021 Earnings Presentation on 6ix