Adamas Trust, Inc. · NASDAQ:ADAM
Adamas Trust — New York Mortgage Trust — Q2 2024 Earnings Presentation
51 slides from Adamas Trust's earnings presentation, Aug 1, 2024
Slide 1: 2024 Second Quarter Financial Summary
New York Mortgage Trust, Inc. 2024 Second 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
To Our Stockholders Management Update "Recent interest rate market activity is falling in line with moderating inflation and an expected slowing of the economy, as evidenced by a 29 basis point decline in the 2-year Treasury yield from its second quarter peak. In anticipation of these events, we con
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, 2% investing in, finan
Slide 7: Key Developments
Key Developments ◦ Loss per share (basic) of $(0.29), Comprehensive loss per share of $(0.29) ◦ Undepreciated loss per share of $(0.25)* Financial ◦ Book value per share of $9.69 (-5.09% change QoQ) Performance ◦ Adjusted book value per share of $11.02* (-4.26% change QoQ) ◦ (3.13)% Quarterly Econom
Slide 8: Core Competency Market
NYMT External Capital Criteria 1 2 Core Market Compelling Expertise and/or proven track record Competency Opportunity risk-adjusted returns at scale Investor Need 3 External capital Poor fit for needs are met NYMT balance sheet 8 See Glossary and End Notes in the Appendix.
Slide 9: Market Update
Market Update GDP (Real) 6.00% Deconstructing GDP: 4.00% • Near Record Savings Rate Drawdown • Government Sector Spending 2.00% 2.2% 80% • Inventory Building 0.6% —% Q3 2023 Q4 2023 Q1 2024 Q2 2024 A Shift in U.S. Consumer Financial Behavior Billions 9 See Glossary and End Notes in the Appendix.
Slide 10: Balance Sheet Structured for Growth
Balance Sheet Structured for Growth Portfolio Management Focus NYMT Investment Portfolio Size • Increase interest income by: $5.9 ◦ Reducing allocation to low income total $5.1 $5.4 return strategies $4.7 $4.0 ◦ Rotating excess capital into Agency RMBS $3.8 $4.9 $4.2 $4.5 • Add BPL-Bridge loans to m
Slide 11: Financial Summary
Financial Summary \ WAS | & i — \ . \ /SNYMT V J, :
Slide 12: Financial Snapshot
Financial Snapshot Dividend Per Share Adjusted Book Value Per Share* Undepreciated Loss Per Share* $(0.25) $11.51 $11.02 Earnings & $0.20 $0.20 $(0.68) Book Value 3.60 3.34 % 1Q 2024 2Q 2024 1Q 2024 2Q 2024 2.80 % 2.45 % 2.18% % 13.70% Dividend Yield Q2'24 Economic Return on 1Q 2024 2Q 2024 Adjusted
Slide 13: 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 $160 | 3% $45 | 1% Portfolio Recourse Leverage Ratio M
Slide 14: NYMT Portfolio Assets
NYMT Portfolio Assets Agency RMBS Mezzanine Lending $2,614 MM | 43% $211 MM | 3% BPL-Bridge Cross-Collateralized $1,036 MM | 17% Mezzanine Lending $149 MM | 2% RPL $571 MM | 9% Joint Venture Equity Single-Family $5.9 Billion $39 MM | 1% Performing Loans 89% Investment Portfolio Multi-Family +$227M A
Slide 15: Market & Strategy Update
Market & Vf Strategy Updat ayy Yi /NYMT
Slide 16: NYMT Investment Strategy
NYMT Investment Strategy Strategy For Sustainable Earnings Growth Portfolio Acquisitions (Dollar amounts in millions) $1,147 Strategy • NYMT continues to grow the investment $934 portfolio with the goal of generating higher recurring net interest income. $664 $674 $608 $467 • Recent acquisitions hav
Slide 17: Single-Family Agency RMBS Market
Single-Family Agency RMBS Market Market Specified Pools at Different Coupons $1,500 200 • In the quarter, current coupon mortgage NYMT Agency RMBS ($MM) spreads widened by 10bps to 148bps, spurred by heightened interest rate volatility. 150 ZV Spread (bp) $1,000 • NYMT took advantage of the higher s
Slide 18: Single-Family Agency RMBS Strategy
Single-Family Agency RMBS Strategy Strategy Agency RMBS Portfolio Characteristics Asset Value ($MM) Specified Pool % | Agency IO % • As a core strategy, Agency RMBS provides several benefits for NYMT: $2,614 98% | 2% ◦ High carry and compelling risk-adjusted returns ◦ Diversification of portfolio Sp
Slide 19: Single-Family Business Purpose Loan-Bridge Strategy
Single-Family Business Purpose Loan-Bridge Strategy Strategy Loan Q2 2024 Portfolio Q2 2024 Characteristics Acquisitions • NYMT has been active in the BPL-Bridge strategy since UPB ($MM) $1,063 $291 2019, and has purchased loans from 15 originator or aggregator companies. Loan Count 2,028 630 • The
Slide 20: Single-Family Portfolio Overview
Single-Family Portfolio Overview Total Investment Total Dollar amounts in millions Portfolio 93% Capital 73% Asset Value Capital Portfolio Portfolio Characteristics Recourse Leverage Strategy Sub-Sector Leverage Current Environment Ratio Avg. Avg. % $ % $ Ratio Avg. LTV Coupon FICO − BPL-Bridge trad
Slide 21: Multi-Family Mezzanine Lending Asset Classes
Multi-Family Asset Class-Mezzanine Lending and Cross-Collateralized Mezzanine Lending Cross-Collateralized Mezzanine Mezzanine Lending Lending Asset Value ($MM) $211 $149 Asset Count 21 13 Avg. Adjusted LTV 82% 81% Delinquent 1 0 Restructured or Extended 1 0 Avg. Coupon 13% 11% (1) Avg. Historical A
Slide 22: Multi-Family Portfolio Overview
Multi-Family Portfolio Overview Total Investment Total Dollar amounts in millions Portfolio 7% Capital 25% Asset Value Capital (1) Characteristics Strategy Sub-Sector Avg. Current Environment Avg. % $ % $ Avg. DSCR Adjusted Coupon (3) (2) LTV − As the primary lender in the multi- Mezzanine family ma
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 RMBS securities and short-term bridge loans. In this new environment, success may be achieved through organic creation of liquidity, tacti
Slide 24: Quarterly Financial Information
Quarterly Financial Information 24
Slide 25: Financial Results
Financial Results Second Quarter Profit & Loss Dollar amounts in millions, except per share data Description Amount EPS Contribution Interest income $ 90.8 $ 1.00 Interest expense (71.7) (0.79) Net Interest Income $ 19.1 $ 0.21 Income from real estate 36.5 0.40 Expenses related to real estate (49.6)
Slide 26: Yields By Strategy
Yields By Strategy Quarter over Quarter Comparison Net Interest Spread* (2Q’24 vs 1Q’24) Net Interest Spread increased 2 bps from the prior quarter, primarily as a result of an increase in yield on average interest earning assets of 8 bps due to an increase in the average coupon rate of business pur
Slide 27: Adjusted Net Interest Income
Adjusted Net Interest Income* Quarter over Quarter Comparison Adjusted Net Interest Income* (2Q’24 vs 1Q’24) Increase in Adjusted Net Interest Income primarily attributable to increased investment in Agency RMBS, non-Agency RMBS and business purpose loans in the second quarter. Adjusted Interest Inc
Slide 28: Net Loss from Real Estate
Net Loss from Real Estate Quarter over Quarter Comparison Net Loss from Real Estate (2Q’24 vs 1Q’24) Decrease in net loss from real estate during the quarter primarily due to: • Sales of membership interests in, and de-consolidation of, two multi-family joint venture equity investments over the firs
Slide 29: Other (Loss) Income
Other (Loss) Income Quarter over Quarter Comparison Realized (Losses) Gains, Net (2Q’24 vs 1Q’24) Net realized losses on residential loans and real estate owned in the second quarter is primarily related to losses incurred on foreclosed properties due to lower valuations. Dollar Amounts in Thousands
Slide 30: Other (Loss) Income
Other (Loss) Income Quarter over Quarter Comparison Gains (Losses) on Derivative Instruments, Net (2Q’24 vs 1Q’24) Net gains on derivative investments in the second quarter primarily related to: • Unrealized gains on interest rate swaps and interest rate caps as a result of an increase in interest r
Slide 31: Other (Loss) Income
Other (Loss) Income Quarter over Quarter Comparison Impairment of Real Estate (2Q’24 vs 1Q’24) Impairment losses recognized as a result of a decrease in the fair value of real estate due to lower valuations. Dollar Amounts in Thousands 2Q'24 1Q'24 4Q'23 3Q'23 2Q'23 Impairment of Real Estate $ (4,071
Slide 32: Expense Analysis
Expense Analysis Quarter over Quarter Comparison General and Administrative Expenses (2Q’24 vs 1Q’24) General and administrative expenses decreased in the second quarter due to decreases in compensation costs and non-recurring professional fees. Dollar Amounts in Thousands 2Q'24 1Q'24 4Q'23 3Q'23 2Q
Slide 33: Other Comprehensive (Loss) Income
Other Comprehensive (Loss) Income Dollar Amounts in Thousands 2Q'24 1Q'24 4Q'23 3Q'23 2Q'23 Net (Loss) Income Attributable to Company's Common Stockholders $ (26,028) $ (68,340) $ 31,465 $ (94,819) $ (37,202) Other Comprehensive Income (Loss): Increase (decrease) in fair value of investment securiti
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 June 30, 2024. Quarter Ended June 30, 2024 Amounts in Thousands, except per share Amount Shares Per Share Beginning Balance, GAAP Book Value
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 2Q'24 1Q'24 4Q'23 3Q'23 2Q'23 Single-Family GAAP interest income $ 88,067 $ 81,227 $ 76,119 $ 61,346 $ 53,907 GAAP interest expense (67,434) (61,740) (57,489) (44,101) (38,542) GAAP t
Slide 39: Reconciliation of Corporate/Other Adjusted Net Interest Income
Non-GAAP Financial Measures Reconciliation of Corporate/Other Adjusted Net Interest Income (Loss) Dollar Amounts in Thousands 2Q'24 1Q'24 4Q'23 3Q'23 2Q'23 Corporate/Other GAAP interest income $ — $ — $ — $ — $ 15 GAAP interest expense (4,297) (4,289) (4,500) (4,305) (3,862) GAAP total net interest
Slide 40: Reconciliation of Total Adjusted Net Interest Income
Non-GAAP Financial Measures Reconciliation of Total Adjusted Net Interest Income Dollar Amounts in Thousands 2Q'24 1Q'24 4Q'23 3Q'23 2Q'23 GAAP interest income $ 90,775 $ 83,892 $ 78,789 $ 65,195 $ 57,540 GAAP interest expense (71,731) (66,029) (61,989) (48,406) (42,404) 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) 2Q'24 1Q'24 4Q'23 3Q'23 2Q'23 Company's stockholders' equity $ 1,431,910 $ 1,485,256 $ 1,579,612 $ 1,575,228 $ 1,690,712 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" is calculated based on the periodic change in GAAP book value per share plus dividends declared per common share during the respective period; "Economic Return on Adjusted Book Value" is calculated based on the periodic change in Adjusted Book Value per common share, a sup
Slide 46: End Notes
End Notes Slide 1 − Additional financing of under-levered assets represents the estimated − Image(s) used under license from Powerpoint Stock Images. additional financing available for residential loans, investment securities and CDOs repurchased from residential loan securitizations under the Slide
Slide 47: End Notes
End Notes − Non-MTM Repo - Credit includes repurchase agreement financing not Slide 18 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 − Average Coupon of Mezzanine Lending and Cross-Collateralized Slide 23 Mezzanine Lending investments is a weighted average rate based upon the − Image(s) used under license from Powerpoint Stock Image. unpaid principal amount and contractual preferred return rate as of Slide 24 June 30, 2
Slide 50: Capital Allocation
Capital Allocation At June 30, 2024 (Dollar Amounts in Thousands) Single-Family (1) Multi-Family Corporate/ Total Other Residential loans $ 3,503,191 $ — $ — $ 3,503,191 Consolidated SLST CDOs (844,032) — — (844,032) Investment securities available for sale 2,672,079 — — 2,672,079 Multi-family loans
Slide 51: Reconciliation of Joint Venture Equity and Consolidated Mezzanine Lending Investments
Reconciliation of Joint Venture Equity and Consolidated Mezzanine Lending Investments Cross- Consolidated Collateralized Mezzanine Joint Venture Mezzanine Lending Dollar Amounts in Thousands Equity Lending Investment Total Cash and cash equivalents $ 1,595 $ 5,640 $ 1,133 $ 8,368 (1) Real estate, ne
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