Adamas Trust, Inc. · NASDAQ:ADAM
Adamas Trust — New York Mortgage Trust — Q1 2024 Earnings Presentation
51 slides from Adamas Trust's earnings presentation, May 2, 2024
Slide 1: 2024 First Quarter Financial Summary
New York Mortgage Trust, Inc. 2024 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: Management Update
To Our Stockholders Management Update "The March 2024 U.S. GDP report surprised the market with a lower-than-expected growth rate of 1.6%, signaling potential late-stage cycle conditions in the U.S. economy. Without further depletion of U.S. consumer savings in the first quarter, GDP could have been
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 an Single-Family Credit Single-Family Agency internally-managed real estate investment trust (“REIT”) for Multi-Family Cash and Other U.S. federal income tax purposes in the business of acquiring, 5% investing in, finan
Slide 7: Key Developments
Key Developments ◦ Loss per share (basic) of $(0.75), Comprehensive loss per share of $(0.75) ◦ Undepreciated loss per share of $(0.68)* Financial ◦ Book value per share of $10.21 (-9.73% change QoQ) Performance ◦ Adjusted book value per share of $11.51* (-9.08% change QoQ) ◦ (7.96)% Quarterly Econo
Slide 8: Market Update
Market Update U.S. Economy Showing Signs of Late Cycle Conditions GDP Inflation • In Q4 2023, U.S. GDP slowed to 3.4% from the 4.9% • The BEA released the Fed’s preferred inflation measure, pace in the prior quarter. Core PCE, for March which was 2.8% year-over-year. • In early 2024, U.S. GDP surpri
Slide 9: Balance Sheet Structured for Growth
Balance Sheet Structured for Growth Portfolio Management Focus NYMT Investment Portfolio Size Grow interest income by: $5.4 $5.1 $4.7 $4.5 • Adding BPL-Bridge loans to maintain low duration of $4.2 $4.0 credit exposure. $3.8 $3.8 $3.1 • Continuing to rotate excess capital into highly liquid $2.7 ass
Slide 10: Financial Summary
Financial Summary \ WAS | & i — \ . \ /SNYMT V J, :
Slide 11: Financial Snapshot
Financial Snapshot Dividend Per Share Adjusted Book Value Per Share* Undepreciated Earnings (Loss) Per Share* $12.66 $11.51 Earnings & $0.20 $0.20 $0.37 Book Value 3.60 3.34 % 4Q 2023 1Q 2024 2.80 %$(0.68) 4Q 2023 1Q 2024 2.45 % 2.18% % 11.11% Dividend Yield Q1'24 Economic Return on 4Q 2023 1Q 2024
Slide 12: NYMT Debt Structure
NYMT Debt Structure Portfolio and Corporate Debt Quarterly Portfolio Financing Exposure (dollar amounts in millions) Quarterly Portfolio (Dollar amountsFinancing in millions) Exposure (Dollar amounts in millions) Sr. Unsec. Notes Sub. Debentures $100 | 2% $45 | 1% Portfolio Recourse Leverage Ratio M
Slide 13: NYMT Portfolio Assets
NYMT Portfolio Assets Agency RMBS Mezzanine Lending $2,217 MM | 40% $207 MM | 4% BPL - Bridge Hybrid Preferred & Joint $941 MM | 17% Venture Equity $148 MM | 3% RPL $588 MM | 11% Joint Venture Equity Single-Family $5.4 Billion $52 MM | 1% Performing Loans 87% Portfolio Assets Multi-Family +$213M Ava
Slide 14: Market & Strategy Update
Market & Vf Strategy Updat ayy Yi /NYMT
Slide 15: NYMT Investment Strategy
NYMT Investment Strategy Strategy For Sustainable Earnings Growth Portfolio Acquisitions (Dollar amounts in millions) $1,147 Strategy • NYMT has focused on growing the investment portfolio as the Fed nears the end of its unprecedented rate hiking cycle. • Acquisition activity has recently been $664
Slide 16: Single-Family Agency RMBS Market
Single-Family Agency RMBS Market Agency Market Specified Pools at Different Coupons $1,200 200 • In the quarter, current coupon mortgage spreads remained range-bound and ended NYMT Agency RMBS ($MM) effectively unchanged from Q4 2023, despite 150 interest rates drifting higher. ZV Spread (bp) $800 •
Slide 17: Single-Family Agency RMBS Strategy
Single-Family Agency RMBS Strategy Agency Strategy Agency Portfolio Characteristics • The allocation towards Agency RMBS continues to Market Value ($MM) Specified Pool % | Agency IOs % complement the overall portfolio by diversifying away from credit. $2,217 98% | 2% • By growing the portfolio in 20
Slide 18: Business Purpose Loan-Bridge Strategy
Single-Family Business Purpose Loan-Bridge Strategy Strategy Loan Key Q1 2024 Portfolio Q1 2024 • NYMT is increasing the size of the BPL-Bridge portfolio Characteristics Acquisitions through purchases from multiple originators, while UPB ($MM) $971 $239 maintaining a conservative credit profile in o
Slide 19: Single-Family Portfolio Overview
Single-Family Portfolio Overview Total Investment Total Dollar amounts in millions Portfolio 92% Capital 70% Net Asset Value Portfolio Total Key Characteristics Core Capital Recourse Portfolio Sub-Sector Current Environment Strategy Leverage Leverage Avg. Avg. % $ % $ Ratio Ratio Avg. LTV Coupon FIC
Slide 20: Multi-Family Asset Class-Mezzanine Lending
Multi-Family Asset Class-Mezzanine Lending Asset Management Update • $6 million loan payoff in Q1 2024 at a lifetime IRR to • We expect the remaining 21 positions will continue a high NYMT of 14.1% (1.37x multiple). payoff rate due to: ◦ Substantial seasoning - 32 months from origination • Annual pa
Slide 21: Multi-Family Asset Class-Joint Venture Equity
Multi-Family Asset Class-Joint Venture Equity (1) Portfolio Update Asset Management Update • NYMT ceased acquisitions after April 2022. • NYMT is focusing on increasing occupancy levels after the completion or near completion of value-add capex • $52MM of remaining exposure as of Q1 2024. programs.
Slide 22: Multi-Family Portfolio Overview
Multi-Family Portfolio Overview Total Investment Total Dollar amounts in millions Portfolio 8% Capital 25% Asset Value Net Capital (1) Key Characteristics Core Avg. Sub-Sector Avg. Current Environment Strategy % $ % $ Avg. DSCR Adjusted (3) (2) Coupon LTV − Agencies remain the primary lender in the
Slide 23: 2024 Focus
2024 Focus The Company is focused on opportunities in a market undergoing a structural landscape change. Balance sheet growth is expected to continue with Agency securities, short-term bridge loans, and structured derivatives. In this new environment, success may be achieved through organic creation
Slide 24: Quarterly Financial Information
Quarterly Financial Information 24
Slide 25: Financial Results
Financial Results First Quarter Profit & Loss Dollar amounts in millions, except per share data Description Amount EPS Contribution Interest income $ 83.9 $ 0.92 Interest expense (66.0) (0.72) Net Interest Income $ 17.9 $ 0.20 Income from real estate 38.1 0.42 Expenses related to real estate (54.5)
Slide 26: Yields By Strategy
Yields By Strategy Quarter over Quarter Comparison Net Interest Spread (1Q’24 vs 4Q’23) Net Interest Spread increased 29 bps from the prior quarter, primarily as a result of: • Increase in yield on average interest earning assets of 17 bps due to an increase in the average coupon rate of business pu
Slide 27: Adjusted Net Interest Income
Adjusted Net Interest Income* Quarter over Quarter Comparison Adjusted Net Interest Income* (1Q’24 vs 4Q’23) Increase in Adjusted Net Interest Income primarily attributable to: • Increased investment in Agency RMBS and business purpose loans in the first quarter • Increase in net interest benefit of
Slide 28: Net Loss from Real Estate
Net Loss from Real Estate Quarter over Quarter Comparison Net Loss from Real Estate (1Q’24 vs 4Q’23) Increase in net loss from real estate during the quarter primarily due to: • Increase in depreciation expense on operating real estate as a result of the reclassification of real estate assets from h
Slide 29: Other (Loss) Income
Other (Loss) Income Quarter over Quarter Comparison Realized (Losses) Gains, Net (1Q’24 vs 4Q’23) Net realized losses on residential loans and real estate owned in the first quarter primarily related to: • Losses incurred on foreclosed properties due to lower valuations • Realized losses recognized
Slide 30: Other (Loss) Income
Other (Loss) Income Quarter over Quarter Comparison Gains (Losses) on Derivative Instruments, Net (1Q’24 vs 4Q’23) Net gains on derivative investments in the first quarter primarily related to: • Unrealized gains on interest rate swaps and interest rate caps as a result of an increase in interest ra
Slide 31: Other (Loss) Income
Other (Loss) Income Quarter over Quarter Comparison Impairment of Real Estate (1Q’24 vs 4Q’23) Impairment losses recognized as a result of: • Decrease in fair value of real estate in disposal group held for sale due to lower valuations as a result of lower net operating income estimates and wider ca
Slide 32: Expense Analysis
Expense Analysis Quarter over Quarter Comparison General and Administrative Expenses (1Q’24 vs 4Q’23) General and administrative expenses increased due to an increase in non-recurring professional fees and consulting fees Dollar Amounts in Thousands 1Q'24 4Q'23 3Q'23 2Q'23 1Q'23 Salaries, benefits a
Slide 33: Other Comprehensive (Loss) Income
Other Comprehensive (Loss) Income Dollar Amounts in Thousands 1Q'24 4Q'23 3Q'23 2Q'23 1Q'23 Net (Loss) Income Attributable to Company's Common Stockholders $ (68,340) $ 31,465 $ (94,819) $ (37,202) $ 10,521 Other Comprehensive Income (Loss): Increase (decrease) in fair value of investment securities
Slide 34: 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, 2024. Quarter Ended March 31, 2024 Amounts in Thousands, except per share Amount Shares Per Share Beginning Balance, GAAP Book Val
Slide 35: 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 36: Appendix
Appendix 36
Slide 37: 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 38: 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'24 4Q'23 3Q'23 2Q'23 1Q'23 Single-Family GAAP interest income $ 81,227 $ 76,119 $ 61,346 $ 53,907 $ 53,519 GAAP interest expense (61,740) (57,489) (44,101) (38,542) (36,759) GAAP t
Slide 39: Reconciliation of Corporate/Other Adjusted Net Interest Income
Non-GAAP Financial Measures Reconciliation of Corporate/Other Adjusted Net Interest Income Dollar Amounts in Thousands 1Q'24 4Q'23 3Q'23 2Q'23 1Q'23 Corporate/Other GAAP interest income $ — $ — $ — $ 15 $ 48 GAAP interest expense (4,289) (4,500) (4,305) (3,862) (2,576) GAAP total net interest income
Slide 40: Reconciliation of Total Adjusted Net Interest Income
Non-GAAP Financial Measures Reconciliation of Total Adjusted Net Interest Income Dollar Amounts in Thousands 1Q'24 4Q'23 3Q'23 2Q'23 1Q'23 GAAP interest income $ 83,892 $ 78,789 $ 65,195 $ 57,540 $ 57,136 GAAP interest expense (66,029) (61,989) (48,406) (42,404) (39,335) GAAP total net interest inco
Slide 41: Undepreciated (Loss) Earnings
Non-GAAP Financial Measures Undepreciated (Loss) Earnings Undepreciated (Loss) Earnings is a supplemental non-GAAP financial measure defined as GAAP net (loss) income attributable to Company's common stockholders excluding the Company's share in depreciation expense and lease intangible amortization
Slide 42: Adjusted Book Value Per Common Share
Non-GAAP Financial Measures Adjusted Book Value Per Common Share Adjusted book value per common share is a supplemental non-GAAP financial measure calculated by making the following adjustments to GAAP book value: (i) exclude the Company's share of cumulative depreciation and lease intangible amorti
Slide 43: 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 data) 1Q'24 4Q'23 3Q'23 2Q'23 1Q'23 Company's stockholders' equity $ 1,485,256 $ 1,579,612 $ 1,575,228 $ 1,690,712 $ 1,737,506 Preferred stock liquidation preference (554,
Slide 44: 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 Appendix - "Non-GAAP Financial Measures—Adjusted Book Value Per Common Share"; "Adjusted Interest Income" has the meanin
Slide 45: 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 46: End Notes
End Notes Slide 1 − Financing of unencumbered assets represents the estimated available − Image(s) used under license from Powerpoint Stock Images. repurchase agreement and revolver securitization financings for the Slide 3 Company's residential loans, investment securities and single-family − Image
Slide 47: End Notes
End Notes − Non-MTM Repo - Credit includes repurchase agreement financing not Slide 17 subject to margin calls used to fund the purchase of residential loans. − Market value represents the fair value of the Agency RMBS − Securitization Financing includes residential loan securitizations. strategy po
Slide 48: End Notes
End Notes − Average LTC represents the weighted average LTC calculated using the − Average LTV for RPL Strategy, BPL-Rental Strategy and Performing initial loan amount at origination (exclusive of any debt service, rehab Loan Strategy represents the weighted average loan-to-value for escrows and oth
Slide 49: End Notes
End Notes − NYMT Equity Basis represents the Company's net equity investment in Slide 34 consolidated and unconsolidated multi-family apartment properties as of − Outstanding shares used to calculate book value per common share and March 31, 2024. Adjusted Book Value per common share for the quarter
Slide 50: Capital Allocation
Capital Allocation At March 31, 2024 (Dollar Amounts in Thousands) Single-Family (1) Multi-Family Corporate/ Total Other Residential loans $ 3,103,105 $ — $ — $ 3,103,105 Consolidated SLST CDOs (582,627) — — (582,627) Investment securities available for sale 2,241,340 — — 2,241,340 Multi-family loan
Slide 51: Reconciliation of Joint Venture Equity and Consolidated Mezzanine Lending Investments
Reconciliation of Joint Venture Equity and Consolidated Mezzanine Lending Investments Hybrid Consolidated Preferred & Mezzanine Joint Venture Joint Venture Lending Dollar Amounts in Thousands Equity Equity Investment Total Cash and cash equivalents $ 7,512 $ 5,213 $ 1,600 $ 14,325 (1) Real estate, n
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