Financial Performance - Net interest income for the three months ended June 30, 2024, was $348 thousand, a decrease of 89% compared to $3,301 thousand for the same period in 2023[14]. - Consolidated net loss attributable to common stockholders for the six months ended June 30, 2024, was $87,061 thousand, compared to a loss of $19,975 thousand for the same period in 2023, indicating a significant increase in losses[14]. - Consolidated net loss for the six months ended June 30, 2024, was $86,853 thousand, compared to a loss of $18,826 thousand for the same period in 2023[20]. - The company reported a net loss of $73.978 million for the six months ended June 30, 2024[27]. - The company recorded a net loss of $481 thousand from Gaea Real Estate Corp. for the three months ended June 30, 2024, compared to a net loss of $594 thousand for the same period in 2023[181]. Assets and Liabilities - Total assets decreased from $1,336,291 thousand as of December 31, 2023, to $911,516 thousand as of June 30, 2024, representing a decline of approximately 32%[10]. - Total liabilities decreased from $1,025,396 thousand as of December 31, 2023, to $657,035 thousand as of June 30, 2024, a reduction of approximately 36%[10]. - Total equity attributable to stockholders decreased from $308,933 thousand as of December 31, 2023, to $253,552 thousand as of June 30, 2024, a decline of approximately 18%[10]. - The Company’s accumulated deficit stood at $147.361 million as of June 30, 2024[31]. - The Company’s total stockholders' equity as of June 30, 2024, was $254.481 million[31]. Cash Flow and Investments - Cash and cash equivalents increased from $52,834 thousand as of December 31, 2023, to $72,026 thousand as of June 30, 2024, reflecting a growth of approximately 36%[10]. - Net cash from operating activities increased to $8,019 thousand from a negative $23,636 thousand year-over-year[20]. - Net cash from investing activities significantly rose to $383,103 thousand, up from $88,258 thousand in the prior year[20]. - Proceeds from the sale of mortgage loans amounted to $311,279 thousand, with no proceeds reported in the previous year[20]. - The total investments as of June 30, 2024, amounted to $258.764 million, with gross unrealized losses of $31.816 million[153]. Mortgage Loans - Mortgage loans held-for-sale, net increased from $55,718 thousand as of December 31, 2023, to $108,868 thousand as of June 30, 2024, showing an increase of about 95%[10]. - The carrying value of mortgage loans held-for-investment is approximately $413.9 million, down from $864.6 million as of December 31, 2023, indicating a decrease of about 52%[128]. - The Company sold 1,477 and 1,712 mortgage loans held-for-sale with a carrying value of $263.7 million and $314.3 million during the three and six months ended June 30, 2024, respectively[133]. - The Company has not purchased any RPLs during the three and six months ended June 30, 2024, compared to 68 and 71 RPLs purchased in the same periods of 2023[133]. - The Company recorded a credit loss expense on mortgage loans of $(10) thousand for the three months ended June 30, 2024[140]. Stock and Equity Transactions - The weighted average shares outstanding for basic loss per common share increased from 23,250,725 for the three months ended June 30, 2023, to 39,344,128 for the same period in 2024, an increase of about 69%[14]. - The company declared dividends of $0.10 per share, totaling $15.506 million[28]. - The company reported a stock-based management termination fee and compensation expense of $16,952 thousand, up from $892 thousand in the prior year[20]. - The Company issued an aggregate of $125.0 million of preferred stock in two series during the year ended December 31, 2020[69]. - The Company exchanged 424,949 shares of its 7.25% Series A and 1,135,590 shares of its 5.00% Series B preferred stock for newly issued common stock, totaling 12,046,218 common shares[72]. Debt and Financing - The Company redeemed senior convertible notes totaling $103,516 thousand during the period[22]. - The Company entered into a $70.0 million term loan agreement with NIC RMBS LLC, an affiliate of Rithm Capital Corp.[34]. - The Company has entered into two repurchase facilities with a ceiling of $150.0 million and $400.0 million, respectively, for acquiring and selling mortgage loans[194]. - The total amount outstanding for repurchase transactions is $246.5 million, with a weighted average interest rate of 6.99%[199]. - The Company’s maximum borrowing capacity subject to sufficient collateral was $400.0 million as of June 30, 2024[200]. Credit Quality and Risk Management - The Company monitors the credit quality of its mortgage loans and assesses expected cash flows and fair value of underlying collateral[62]. - The Company has recognized a cumulative allowance for expected credit losses of zero as of June 30, 2024, compared to $3.4 million as of December 31, 2023[131]. - The allowance for expected credit losses at the end of the period was zero for June 30, 2024, compared to $5.985 million for June 30, 2023[140]. - Risks in the beneficial interest portfolio include default risk and delays in payment, with ongoing monitoring of credit quality[67]. - The Company’s expectation of undiscounted cash flows is evaluated at the end of each calendar quarter, impacting the allowance for expected credit losses[66].

Financial Data and Key Metrics Changes - The company reported a GAAP net loss of $12.7 million, which is significantly lower than the first quarter of 2024, driven by mark-to-market losses and additional realized losses on mortgage loan sales [11] - Earnings available for distribution decreased compared to the previous quarter, with a negative net interest margin contributing to the loss [11] - Book value per common share is reported at $5.56, with a potential fair value of around $4.20 if fully marked [12] Business Line Data and Key Metrics Changes - The company is transitioning from reperforming residential assets to investing in cash-flowing commercial real estate assets, having already begun this process [6][9] - The management team is focused on commercial real estate opportunities, leveraging expertise from Rithm Capital and Sculptor Asset Management [10] Market Data and Key Metrics Changes - The commercial real estate market is viewed as presenting some of the best investment opportunities since the financial crisis, particularly in AAA CMBS with levered returns estimated between 12% and 15% [7][20] - The company plans to sell approximately $120 million of legacy assets to clean up the balance sheet [18] Company Strategy and Development Direction - The company aims to grow its equity capital and generate real earnings while maintaining a focus on commercial real estate investments [9][14] - The dividend policy will be evaluated quarterly based on the ability to grow earnings, with the current dividend maintained at $0.06 per share [8][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to reposition the company and achieve cash flow positivity over time, despite current losses [7][11] - The company is optimistic about the commercial real estate investing environment and believes it can generate attractive returns [14][15] Other Important Information - The company has a total stockholders' equity of $253.6 million and is focused on growing this over time [12] - The management team consists of experienced professionals in commercial real estate, with a significant number of staff dedicated to this area [10] Q&A Session Summary Question: Impact of marking the whole book to fair value and current balance of legacy RPL portfolio - Management indicated that full mark-to-market would bring book value to around $4.23, with approximately $120 million of assets left to be sold [18][19] Question: Focus on commercial real estate and expected returns - The company has made investments primarily in AAA CMBS, expecting returns between 12% and 15% [20] Question: Capital allocation for risk retention and new investments - Approximately $15 million to $16 million of equity capital is allocated to risk retention securities, with $35 million to $40 million for non-risk retention assets [23] Question: Future investment mix and origination efforts - Management believes they have sufficient resources for investment sourcing and will focus on a mix of CMBS, senior loans, and opportunistic investments [25] Question: Willingness to acquire distressed assets - The company has a history of successfully acquiring distressed assets and is open to similar opportunities in the future [31] Question: Geographic or asset class focus for senior loans - Currently, the focus is on highly liquid AAA CMBS, with flexibility to explore various opportunities as they arise [33]

Financial Performance - GAAP net loss for Q2 2024 was $(12.7) million, or $(0.32) per diluted common share, an improvement from a net loss of $(74.3) million, or $(2.41) per diluted common share in Q1 2024[3][4] - Earnings available for distribution were $(9.6) million, or $(0.24) per diluted common share, compared to $(4.8) million, or $(0.16) per diluted common share in the previous quarter[3][4] - As of June 30, 2024, the net consolidated loss attributable to common stockholders was $12.742 million, compared to a loss of $74.319 million for the quarter ended March 31, 2024[17] - Earnings available for distribution for the quarter ended June 30, 2024, was $9.598 million, with a basic and diluted earnings per share of $0.24[28] Asset and Liability Management - Total assets decreased to $911.5 million from $1.3 billion at the end of 2023, primarily due to the net loss and equity issuance[14] - Total liabilities decreased to $657.0 million from $1.0 billion at the end of 2023, reflecting the company's strategic adjustments[14] - The balance for mortgage loans held-for-sale, net, was $487.3 million as of June 30, 2024, compared to $628.6 million as of December 31, 2023[1] Investment and Securities - The company reported a net unrealized loss of $9.5 million on investments in securities available for sale (AFS) as of June 30, 2024, compared to a loss of $8.0 million as of December 31, 2023[4] - The allowance for expected credit losses on investments in beneficial interests increased to $9.1 million as of June 30, 2024, from $6.9 million as of December 31, 2023[6] - The company transferred certain investments in securities AFS to held to maturity (HTM) on January 1, 2023, with a remaining discount of $4.4 million related to unamortized unrealized loss in accumulated other comprehensive income (AOCI) as of June 30, 2024[5] - The company reported zero allowance for expected credit losses on mortgage loans held-for-investment as of June 30, 2024, down from $3.4 million as of December 31, 2023[1] Dividends and Shareholder Returns - Common dividend declared was $2.2 million, or $0.06 per common share, down from $3.7 million, or $0.10 per common share in Q1 2024[3][4] Strategic Transactions - The company completed a strategic transaction with Rithm Capital, transitioning to a focus on commercial real estate and terminating the previous management agreement[7] - The company sold loans with an unpaid principal balance of approximately $305 million, generating net proceeds of about $45.1 million[7] - The company entered into a $70.0 million term loan with NIC RMBS LLC, which remains undrawn[7] - The company expects to leverage Rithm's operating platform to enhance its investment strategy and create shareholder value[7] Real Estate and Valuation - Real estate owned properties, net, included valuation allowances of $1.7 million as of June 30, 2024, compared to $1.2 million as of December 31, 2023[3] - Non-controlling interests included $0.8 million from a 50.0% owned joint venture as of June 30, 2024, consistent with the balance as of December 31, 2023[8] - The company had secured borrowings net of deferred issuance costs of $1.7 million as of June 30, 2024, down from $3.1 million as of December 31, 2023[7] Book Value - Book value per common share decreased to $5.56 from $6.87 in Q1 2024, with total book value at $253.6 million[3][4]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to 001-36844 (Commission file number) GREAT AJAX CORP. (Exact name of registrant as specified in its charter) State or other jurisdiction Maryland 46-5211870 ...

Exhibit 99.1 GREAT AJAX CORP. ANNOUNCES RESULTS FOR THE QUARTER ENDED MARCH 31, 2024 First Quarter Highlights • Interest income of $15.7 million; net interest income of $1.6 million • Net loss attributable to common stockholders of $(74.3) million • Operating loss of $(4.8) million or $(0.16) per common share • Earnings per share ("EPS") per basic common share was a loss of $(2.41) of which $(0.50) per basic common share relates to the accrual of the manager termination fee • Taxable loss of $(0.67) per sha ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K FOR ANNUAL AND TRANSITION REPORTS PURSUANT TO SECTIONS 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to 001-36844 (Commission file number) GREAT AJAX CORP. (E ...

NEW YORK--(BUSINESS WIRE)--Great Ajax Corp. (NYSE: AJX), a Maryland corporation that is a real estate investment trust ("REIT"), announces its results of operations for the quarter ended December 31, 2023. We focus primarily on acquiring, investing in and managing a portfolio of re-performing mortgage loans ("RPLs") and non-performing loans ("NPLs") secured by single-family residences and commercial properties. In addition to our continued focus on RPLs and NPLs, we also originate and acquire small-balance ...

NEW YORK--(BUSINESS WIRE)--Rithm Capital Corp. (NYSE: RITM; “Rithm”), a global asset manager focused on real estate, credit and financial services, and Great Ajax Corp. (NYSE: AJX; “Great Ajax”), a real estate investment trust, announced today that they have entered into a strategic transaction. As part of the strategic transaction, Great Ajax has entered into a one-year term loan agreement with a subsidiary of Rithm for up to $70 million. Great Ajax plans to use borrowings under the term loan, as well as ...

Exhibit 99.1 GREAT AJAX CORP. ANNOUNCES RESULTS FOR THE QUARTER ENDED DECEMBER 31, 2023 Fourth Quarter Highlights New York, NY—February 26, 2024 —Great Ajax Corp. (NYSE: AJX), a Maryland corporation that is a real estate investment trust ("REIT"), announces its results of operations for the quarter ended December 31, 2023. We focus primarily on acquiring, investing in and managing a portfolio of re-performing mortgage loans ("RPLs") and non-performing loans ("NPLs") secured by single-family residences and c ...

Third Quarter Investor Presentation Safe Harbor Disclosure  We make forward‐looking statements in this presentation that are subject to risks and uncertainties. These forward‐looking statements include information about possible or future results ...