Adamas Trust, Inc. · NASDAQ:ADAM
Adamas Trust — New York Mortgage Trust — Q4 2024 Earnings Presentation
51 slides from Adamas Trust's earnings presentation, Feb 20, 2025
Slide 1: 2024 Fourth Quarter Financial Summary
New York Mortgage Trust, Inc. 2024 Fourth 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: Table of Contents
Table of Contents • Company Overview • Financial Summary • Market & Strategy Update • Quarterly Financial Information • Appendix 3
Slide 4: Company Overview
Company Overview /NYMT Yi \ WAS | LN AS \ : \ / ff A ( / i J 7 Wi yj y Vj
Slide 5: NYMT Overview
NYMT Overview Capital Allocation New York Mortgage Trust, Inc. (NASDAQ: NYMT) is an Single-Family Credit Single-Family Agency Multi-Family internally-managed real estate investment trust (“REIT”) for U.S. federal income tax purposes in the business of acquiring, investing in, financing and managing
Slide 6: Key Developments
Key Developments ◦ Loss per share (basic) of $(0.46), Comprehensive loss per share of $(0.46) ◦ Undepreciated loss per share of $(0.44)* Financial ◦ Book value per share of $9.28 (-5.60% change QoQ) Performance ◦ Adjusted book value per share of $10.35* (-4.78% change QoQ) ◦ (3.56)% Quarterly Econom
Slide 7: 2024 Achievements
2024 Achievements • Acquired $4.1B of assets, increasing investment portfolio by 44% YoY Income • Increased adjusted net interest income by $36 Growth million or 46% YoY* • Divested lower income-producing multi-family JV equity holdings Other 19% • Issued $1.4B of securitizations across six resident
Slide 8: 2025 Key Economic Factors
2025 Key Economic Factors Potential Headwinds Potential Tailwinds Federal Spending Trade Wars The U.S. budget deficit is projected to grow from $1.9 Planned tariffs may raise input costs, which could trillion in 2025 to $2.7 trillion by 2035. Instead of negatively affect sub-sector growth. However,
Slide 9: Balance Sheet Structured for Growth
Balance Sheet Structured for Growth Earnings Improvement NYMT Investment Portfolio Size $10.0 • Company is focused on continuing to increase +7.2% portfolio income QoQ through: +16.9% $7.4 +9.3% ◦ Deployment of excess liquidity to grow assets $7.5 +5.9% $6.9 +8.5% on balance sheet. $5.9 +17.5% $5.1
Slide 10: NYMT Share Price Has Significant Potential Upside
NYMT Share Price Has Significant Potential Upside Valuation Amount Per Adjusted Book Value (as of 12/31) (millions) Share Market Capitalization* $549 $6.06 Adjusted Book Value** $937 $10.35 NYMT Market Capitalization is discounted by + 41% • NYMT's Market Capitalization is discounted by $388 million
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 Earnings (Loss) Per Share* $10.87 $10.35 Earnings & $0.20 $0.20 $0.39 Book Value 3.60 3.34 % 3Q 2024 4Q 2024 2.80 %$(0.44) 3Q 2024 4Q 2024 2.45 % 2.18% % 13.20% Dividend Yield Q4'24 Economic Return on 3Q 2024 4Q 2024
Slide 13: NYMT Debt Structure
NYMT Debt Structure Portfolio Financing and Corporate Debt Quarterly Portfolio Quarterly PortfolioFinancing Exposure Financing Exposure (Dollar amounts in millions) Corporate Sr. Unsec. Notes Corporate Sub. Debentures $160 | 3% $45 | 1% Portfolio Recourse Leverage Ratio Repo - Credit/Other 1.5x 1.6x
Slide 14: NYMT Holds Diversified Portfolio of Assets
NYMT Holds Diversified Portfolio of Assets Agency RMBS $3,137 MM | 42% BPL-Bridge Single-Family $1,157 MM | 15% Agency Mezzanine Lending 42% $177 MM | 2% BPL-Rental $758 MM | 10% Cross-Collateralized Mezzanine Lending Performing Loans $134 MM | 2% $525 MM | 7% $7.4 Billion Investment Portfolio Joint
Slide 15: Market & Strategy Update
Market & Vf Strategy Updat ayy Yi /NYMT
Slide 16: NYMT Strategy for Long-Term Shareholder Value
NYMT Strategy for Long-Term Shareholder Value Strategy For Sustainable Earnings Growth Residential Investment Acquisitions (Dollar amounts in millions) $1,008 $933 $923 • NYMT has been growing the investment portfolio with the goal of generating higher recurring net interest income amidst an $372 un
Slide 17: Single-Family Agency RMBS Market
Single-Family Agency RMBS Market Specified Pools at Different Coupons • In the quarter, current coupon mortgage 1,500 200 spreads widened by 6bps to 135bps, due to NYMT Agency RMBS ($MM) market uncertainty about the path of Fed rate cuts in 2025. 150 ZV Spread (bp) 1,000 • During the quarter, NYMT s
Slide 18: Single-Family Agency RMBS Strategy
Single-Family Agency RMBS Strategy Agency RMBS Portfolio Characteristics • As a core strategy, Agency RMBS provides several Asset Value ($MM) Specified Pool % | Agency IO % benefits: ◦ High carry and compelling risk-adjusted returns $3,137 98% | 2% ◦ Diversification of overall portfolio ◦ Expected o
Slide 19: Business Purpose Loan-Bridge Strategy
Single-Family Business Purpose Loan-Bridge Strategy Loan 4Q 2024 • NYMT BPL-Bridge strategy has been in place since 2019, Characteristics 4Q 2024 Portfolio Acquisitions trading with 18 originator/aggregator counterparties over time. UPB ($MM) $1,177 $281 • NYMT is selective on credit and prioritizes
Slide 20: Single-Family Portfolio Overview
Single-Family Portfolio Overview Total Investment Total Dollar amounts in millions Portfolio 87% Capital 79% Asset Value Capital Portfolio Portfolio Characteristics Recourse Leverage Strategy Sub-Sector Leverage Current Environment Ratio Avg. Avg. % $ % $ Ratio Avg. LTV Coupon FICO − BPL-Bridge secu
Slide 21: Multi-Family Mezzanine Lending Asset Classes
Multi-Family Asset Class-Mezzanine Lending and Cross-Collateralized Mezzanine Lending Cross-Collateralized Senior Debt Characteristics Mezzanine Lending Mezzanine Lending Fixed Rate 28% 100% Hedged Floating Rate 60% — Unhedged Floating Rate 12% — Senior Debt Total 100% 100% Avg. Effective Coupon 5.4
Slide 22: Multi-Family Portfolio Overview
Multi-Family Portfolio Overview Total Investment Total Dollar amounts in millions Portfolio 4% Capital 21% Asset Value Capital (1) Characteristics Strategy Sub-Sector Avg. Current Environment Avg. % $ % $ Avg. DSCR Adjusted Coupon (3) (2) LTV Mezzanine Lending & Preferred equity − NYMT expects redem
Slide 23: Quarterly Financial Information
Quarterly Financial Information 23
Slide 24: Financial Results
Financial Results Fourth Quarter Profit & Loss Dollar amounts in millions, except per share data Description Amount EPS Contribution Interest income $ 118.2 $ 1.30 Interest expense (91.5) (1.01) Net Interest Income $ 26.7 $ 0.29 Income from real estate 26.2 0.29 Expenses related to real estate (32.1
Slide 25: Yields By Strategy
Yields By Strategy Quarter over Quarter Comparison Net Interest Spread* (4Q’24 vs 3Q’24) Net interest spread increased by 5bps, primarily due to a decrease in average financing cost driven by the securitization of residential loans previously financed through repurchase agreements and a decrease in
Slide 26: Adjusted Net Interest Income
Adjusted Net Interest Income* Quarter over Quarter Comparison Adjusted Net Interest Income* (4Q’24 vs 3Q’24) Increase in Adjusted Net Interest Income primarily attributable to increased investment in business purpose loans, Agency RMBS and U.S Treasury securities in the fourth quarter. Adjusted Inte
Slide 27: Net Loss from Real Estate
Net Loss from Real Estate Quarter over Quarter Comparison Net Loss from Real Estate (4Q’24 vs 3Q’24) Decrease in net loss from real estate during the quarter primarily due to sales of underlying properties or membership interests in, and de- consolidation of, five multi-family joint venture equity i
Slide 28: Other (Loss) Income
Other (Loss) Income Quarter over Quarter Comparison Realized Losses, Net (4Q’24 vs 3Q’24) Net realized losses on residential loans and real estate owned in the fourth quarter is primarily related to losses incurred on foreclosed properties due to lower valuations and losses incurred on the sale of c
Slide 29: Other (Loss) Income
Other (Loss) Income Quarter over Quarter Comparison Gains (Losses) on Derivative Instruments, Net (4Q’24 vs 3Q’24) Net gains on derivative investments in the fourth quarter primarily related to: • Unrealized gains on interest rate swaps as a result of an increase in interest rates • Realized gains o
Slide 30: Other (Loss) Income
Other (Loss) Income Quarter over Quarter Comparison Impairment of Real Estate (4Q’24 vs 3Q’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 4Q'24 3Q'24 2Q'24 1Q'24 4Q'23 Impairment of Real Estate $ (733)
Slide 31: Expense Analysis
Expense Analysis Quarter over Quarter Comparison General and Administrative Expenses Dollar Amounts in Thousands 4Q'24 3Q'24 2Q'24 1Q'24 4Q'23 Salaries, benefits and directors' compensation $ 8,458 $ 8,736 $ 8,331 $ 9,273 $ 8,773 Other general and administrative expenses 3,572 3,205 3,317 3,781 2,96
Slide 32: Other Comprehensive (Loss) Income
Other Comprehensive (Loss) Income Dollar Amounts in Thousands 4Q'24 3Q'24 2Q'24 1Q'24 4Q'23 Net (Loss) Income Attributable to Company's Common Stockholders $ (41,828) $ 32,410 $ (26,028) $ (68,340) $ 31,465 Other Comprehensive Income: Increase in fair value of investment securities available for sal
Slide 33: 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 and year ended December 31, 2024. Quarter Ended December 31, 2024 Year Ended December 31, 2024 Amounts in Thousands, except per share Amount Share
Slide 34: 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 35: Appendix
Appendix 35
Slide 36: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted Net Interest Income (Loss) 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 n
Slide 37: Reconciliation of Single-Family Adjusted Net Interest Income
Non-GAAP Financial Measures Reconciliation of Single-Family Adjusted Net Interest Income Dollar Amounts in Thousands 4Q'24 3Q'24 2Q'24 1Q'24 4Q'23 Single-Family GAAP interest income $ 110,078 $ 104,608 $ 88,067 $ 81,227 $ 76,119 GAAP interest expense (80,096) (81,214) (67,434) (61,740) (57,489) GAAP
Slide 38: Reconciliation of Corporate/Other Adjusted Net Interest Loss
Non-GAAP Financial Measures Reconciliation of Corporate/Other Adjusted Net Interest Loss Dollar Amounts in Thousands 4Q'24 3Q'24 2Q'24 1Q'24 4Q'23 Corporate/Other GAAP interest income $ 5,492 $ 1,054 $ — $ — $ — GAAP interest expense (11,446) (6,910) (4,297) (4,289) (4,500) GAAP total net interest l
Slide 39: Reconciliation of Total Adjusted Net Interest Income
Non-GAAP Financial Measures Reconciliation of Total Adjusted Net Interest Income Dollar Amounts in Thousands 4Q'24 3Q'24 2Q'24 1Q'24 4Q'23 GAAP interest income $ 118,253 $ 108,361 $ 90,775 $ 83,892 $ 78,789 GAAP interest expense (91,542) (88,124) (71,731) (66,029) (61,989) GAAP total net interest in
Slide 40: 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 41: 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 42: 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) 4Q'24 3Q'24 2Q'24 1Q'24 4Q'23 Company's stockholders' equity $ 1,394,720 $ 1,444,147 $ 1,431,910 $ 1,485,256 $ 1,579,612 Preferred stock liquidation preference (554,
Slide 43: Glossary
Glossary The following defines certain of the commonly used terms in this presentation: "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 meaning set forth in Appendix - "Non-GAAP Finan
Slide 44: 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 45: End Notes
End Notes Slide 1 − Dry powder includes 1) $99 million of financing of unencumbered assets, − Image(s) used under license from PowerPoint Stock Images. which represents the estimated available repurchase agreement and Slide 3 revolver securitization financings for the Company's residential loans and
Slide 46: End Notes
End Notes Slide 10 − Securitization Financing includes residential loan securitizations and a − Outstanding common shares used to calculate Market Cap per share and non-Agency RMBS re-securitization. Adjusted Book Value per share for the quarter ended December 31, − Repo and Securitization Financing
Slide 47: End Notes
End Notes − Agency RMBS Current Coupon Spreads sourced from Bloomberg. Slide 20 Slide 18 − Total Investment Portfolio, Total Capital, and Capital represent amounts − Asset value represents the fair value of the Agency RMBS strategy derived from the investment portfolio carrying value and net Company
Slide 48: End Notes
End Notes − Average FICO, Average LTV and Average Coupon for Non-Agency RMBS Slide 22 represent the weighted average borrower FICO score, weighted average − Total Investment Portfolio, Total Capital, and Capital represent amounts loan-to-value and weighted average coupon rate of the underlying deriv
Slide 49: End Notes
End Notes Slide 33 − Outstanding shares used to calculate book value per common share and Adjusted Book Value per common share for the quarter ended December 31, 2024 are 90,574,996. − Common stock issuance, net includes amortization of stock based compensation. Slide 35 − Image(s) used under licens
Slide 50: Capital Allocation
Capital Allocation At December 31, 2024 (Dollar Amounts in Thousands) Single-Family (1) Multi-Family Corporate/ Total Other Residential loans $ 3,841,738 $ — $ — $ 3,841,738 Consolidated SLST CDOs (811,591) — — (811,591) Investment securities available for sale 3,206,499 — 622,045 3,828,544 Multi-fa
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 $ — $ 3,759 $ 392 $ 4,151 Real estate, net — 427,65
New York Mortgage Trust — Q4 2024 Earnings Presentation on 6ix