Financial Performance - For the three months ended June 30, 2021, the company reported net income attributable to common stockholders of $10.4 million, or $0.45 per share for basic and $0.42 per share for diluted common shares, compared to $6.2 million, or $0.27 per share for the same period in 2020[320]. - Total revenue for the three months ended June 30, 2021 was $19.8 million, compared to $16.3 million for the same period in 2020, reflecting a year-over-year increase of approximately 21.5%[323]. - Consolidated net income attributable to common stockholders for the three months ended June 30, 2021 was $10.4 million, compared to $6.2 million for the same period in 2020, marking a significant increase of approximately 67.1%[323]. - The company collected $78.9 million in cash payments and proceeds on mortgage loans, securities, and REO held-for-sale during the second quarter of 2021, up from $57.8 million in the second quarter of 2020, reflecting a 36.5% increase[328]. - The net increase in the net present value of expected cash flows for the six months ended June 30, 2021 was $10.2 million, compared to only $0.2 million for the same period in 2020, indicating a substantial improvement[326]. Asset and Portfolio Management - As of June 30, 2021, the carrying value of residential RPLs was $897.5 million, down from $1,057.5 million as of December 31, 2020, representing a decrease of approximately 15.1%[268]. - The total mortgage-related assets increased to $1,518.5 million as of June 30, 2021, compared to $1,493.1 million as of December 31, 2020, reflecting a growth of about 1.7%[268]. - The company anticipates that its residential mortgage loan portfolio may grow at an uneven pace due to irregular acquisition opportunities[278]. - The company is focusing on acquiring pools of residential RPLs, while also considering NPLs if attractive opportunities arise[274]. - The company purchased $4.8 million in RPLs, with UPB of $5.2 million at 60.7% of property value, resulting in a total of $955.6 million in net mortgage loans[320]. Market Conditions and Economic Outlook - The company expects continued volatility in the residential mortgage securities market and increased acquisition opportunities due to extended forbearance and foreclosure timelines[272]. - The company believes that demand for single-family and smaller multi-family rental properties will increase in the near term due to regulatory constraints on traditional mortgage lending[273]. - Current market conditions present attractive investment opportunities despite the uncertain environment for mortgage-related assets[290]. - The pandemic has created challenges in predicting the impact on various business factors, complicating the assessment of future performance[291]. - The company expects the COVID-19 pandemic to adversely impact future operating cash flows due to borrower payment delays and potential declines in home prices[360]. Cash Flow and Liquidity - As of June 30, 2021, the company held $88.1 million in cash and cash equivalents, with an average daily cash balance of $113.0 million for the quarter[320]. - The company’s operating cash outflows for the six months ended June 30, 2021, were $22.9 million, compared to $10.2 million for the same period in 2020, indicating a 124.5% increase in cash outflows[362]. - The average daily cash balance during the quarter was $113.0 million, a decrease of $15.7 million from $128.7 million in the previous quarter[361]. - The company experienced net financing cash outflows of $7.0 million for the six months ended June 30, 2021, primarily due to pay downs of existing debt obligations totaling $312.5 million[367]. Debt and Financing - The company has two repurchase facilities with ceilings of $250.0 million and $400.0 million, allowing for the acquisition of mortgage loan pools[381]. - The total maximum borrowing capacity across various loans is $987,545 million[384]. - The total amount outstanding is $394,386 million, representing approximately 40% of the maximum borrowing capacity[384]. - The company completed a public offering of $87.5 million in convertible senior notes due 2024, with a 7.25% annual interest rate[379]. - The company’s secured borrowings are non-recourse, with principal and interest paid only from cash flows from mortgage loans[402]. Risk Management - The company’s market risk includes real estate risk, interest rate risk, prepayment risk, and credit risk, which are actively managed[407]. - Credit risk is a significant concern, with property values subject to volatility from various economic factors, including public health crises[412]. - Borrowers may fail to pay due to personal income reductions, job loss, or poor property management, which the company aims to mitigate through servicer efforts[413]. - The company’s assets and liabilities are sensitive to interest rates, and inflation could decrease disposable household income, increasing credit risk[416]. Corporate Governance and Compliance - The company conducted an evaluation of its disclosure controls and procedures, concluding they were effective as of the end of the reporting period[418]. - There have been no material changes in the company's internal control over financial reporting during the last fiscal quarter[419]. - The company is not involved in any material pending legal or regulatory proceedings[421]. - The company has not reported any defaults upon senior securities[422].

Great Ajax Corp. (NYSE:AJX) Q1 2021 Earnings Conference Call May 6, 2021 5:00 PM ET Company Participants Lawrence Mendelsohn - Chief Executive Officer Conference Call Participants Kevin Barker - Piper Sandler Eric Hagen - BTIG Operator Good day, and thank you for standing by, and welcome to the Great Ajax Corp. Q1 2021 Earnings Call. At this time all participants are in a listen-only mode. After the speaker's remarks, there will be a question-and-answer session. [Operator Instructions] Please be advised tha ...

Financial Performance - For the three months ended March 31, 2021, net income attributable to common stockholders was $7.0 million, or $0.30 per share, compared to $0.4 million, or $0.02 per share, for the same period in 2020[301]. - Total revenue for the quarter ended March 31, 2021 was $19.8 million, compared to $8.0 million for the same period in 2020, reflecting a significant increase[304]. - Total expenses rose to $8.2 million for the three months ended March 31, 2021, compared to $6.5 million in the same period of 2020, driven by increased management fees and put option amortization expenses[316]. - Consolidated net income attributable to common stockholders was $7.0 million for the quarter ended March 31, 2021, compared to $400,000 in the same period of 2020[304]. - Net interest income after recovery of losses increased to $19.2 million for the three months ended March 31, 2021, up from $9.1 million in the same period of 2020, primarily due to a $5.5 million acceleration of purchase discount on loans[305]. Asset and Liability Management - The total mortgage-related assets amounted to $1,490.3 million as of March 31, 2021, compared to $1,493.1 million at the end of 2020[248]. - The total assets as of March 31, 2021, were $1,804,775, an increase from $1,777,123 as of December 31, 2020[324]. - Total liabilities increased to $1,184,576 as of March 31, 2021, from $1,140,875 as of December 31, 2020[324]. - The company ended the period with $1.1 billion of net mortgage loans with an aggregate UPB of $1.2 billion as of March 31, 2021[330]. - The fair value of total equity increased to $620,199 as of March 31, 2021, from $636,248 as of December 31, 2020[324]. Investment Strategy - The company is focusing on acquiring pools of residential RPLs, with a strategy to also consider NPLs if attractive opportunities arise[257]. - The company anticipates that the ongoing pandemic may create increased opportunities to acquire NPLs[261]. - The company is actively monitoring opportunities to increase holdings of SBC loans and properties, particularly in urban areas[258]. - The company plans to acquire 4,739 residential RPLs with an aggregate UPB of $790.4 million at 97.5% of UPB and 54.0% of estimated market value of $1.4 billion[392]. - The company has co-invested to form Ajax Mortgage Loan Trust 2021-C, retaining $26.3 million of securities with a coupon of 2.115%[394]. Market Conditions and Risks - The company expects continued volatility in the residential mortgage securities market, which may lead to increased acquisition opportunities[253]. - The company believes that demand for single-family and smaller multi-family rental properties will increase in the near term due to regulatory pressures and market conditions[256]. - The COVID-19 pandemic has created uncertainty in various factors affecting the company's business, making it difficult to predict future impacts[274]. - The company is subject to various market risks, including real estate risk, interest rate risk, prepayment risk, and credit risk[396]. Cash Flow and Financing - The company collected total cash of $70.2 million from loan payments, sales of REO, and investments in debt securities and beneficial interests[301]. - The average daily cash balance for the quarter was $115.2 million, with $137.6 million in cash and cash equivalents at March 31, 2021[301]. - The company had net financing cash inflows of $16.9 million for the three months ended March 31, 2021, primarily driven by additional borrowing of $391.0 million through secured debt[353]. - The company expects that its primary financing sources will continue to include secured borrowings, repurchase agreements, and securities offerings[347]. - The company’s secured borrowings are non-recourse, with principal and interest paid only from cash flows from mortgage loans[390]. Loan Performance and Delinquency - The current delinquency rate for loans held-for-investment was 58.8%, up from 56.1% in the previous quarter[338]. - The percentage of loans 90+ days delinquent increased to 26.5% from 23.5%[338]. - Approximately 73.1% of the portfolio based on UPB made at least 12 out of the last 12 payments as of March 31, 2021[301]. - The weighted average loan-to-value (LTV) ratio improved to 70.9% from 72.8%[335]. - The number of REO properties held-for-sale decreased to 26 from 32, indicating a reduction in foreclosed assets[335]. Shareholder Returns and Equity - A dividend of $0.19 per share was declared on May 6, 2021, representing approximately 4.70% on an annualized basis of the book value of $16.18 per share at March 31, 2021[379][380]. - The book value per common share increased to $16.18 at March 31, 2021, up from $15.59 at December 31, 2020[301]. - The company has not engaged in off-balance sheet arrangements or guaranteed any obligations of unconsolidated entities, minimizing exposure to market, credit, liquidity, or financing risk[381]. Regulatory and Compliance - To qualify as a REIT, the company must distribute at least 90% of its taxable income to stockholders, limiting its ability to retain earnings for capital replenishment[263]. - There have been no changes in internal control over financial reporting that materially affected the company during the last fiscal quarter[407]. - The company and its subsidiaries are not involved in any material pending legal or regulatory proceedings[409].

Financial Data and Key Metrics Changes - The overall corporate cost of funds decreased by approximately 27 basis points in Q4 2020, continuing a trend from previous quarters [4][13] - Net income attributable to common stockholders was $10.8 million, or $0.47 per share, after accounting for preferred dividends and non-controlling interests [14] - Book value per share was $15.59 as of December 31, 2020, while fair value estimates were materially higher, at approximately $19.54 per share [15][30] Business Line Data and Key Metrics Changes - Net interest income from loans and securities was approximately $21.9 million, including a partial reversal of COVID-19 related loan and credit losses [8] - The loan portfolio saw a significant increase in cash flow velocity, leading to a reversal of previous credit loss provisions [4][11] - Approximately 72% of the loan portfolio made at least 12 of the last 12 payments, compared to only 13% at the time of purchase [10][22] Market Data and Key Metrics Changes - California remains the largest segment of the loan portfolio, with consistent payment and performance patterns observed [18][19] - The company has seen increased demand for homes in target markets, particularly in Florida, Phoenix, Dallas, and Atlanta [22] - The Las Vegas market was removed from target markets due to anticipated negative impacts from COVID-19, although a recovery is expected [20][21] Company Strategy and Development Direction - The company continues to focus on acquiring re-performing loans (RPLs), which represent approximately 96% of the loan portfolio [17] - The strategy includes leveraging analytics and an affiliated servicer to maximize loan performance and resolution timelines [6][7] - The company is well-equipped for volatility and is actively pursuing investment opportunities in its pipeline [4] Management's Comments on Operating Environment and Future Outlook - Management noted that the impact of COVID-19 on payment performance has been less than expected, with strong regular payment patterns continuing [11][23] - The company anticipates that the cost of funds will continue to decrease, enhancing profitability [13][27] - Management expressed optimism about the potential for increased prepayments and cash flow velocity in the current environment [35] Other Important Information - The company had approximately $107 million in cash at year-end 2020, increasing to approximately $145 million by March 1, 2021 [16][29] - The company declared a cash dividend of $0.17 per share, expected to increase during 2021 based on taxable income estimates [25] Q&A Session Summary Question: On the RPL purchases since quarter end, are those seasoned loans or newer issues? - Management indicated that about 20% of the loans are scratch and dent from new origination, while the balance consists of seasoned loans [36] Question: What is the expected prepayment rate for re-performing borrowers? - The weighted average coupon for the portfolio is in the mid-fours, with a low weighted average LTV, and borrowers with significant equity are prepaying primarily for sale [34][35] Question: What is the amount of securitized debt callable this year? - Management stated there are about three additional securitizations and four joint venture securitizations callable this year, which could reduce the cost of funds by 120 to 200 basis points [33] Question: What is the current cash number and its implications? - The cash number was $107 million at year-end and $145 million as of March 1, 2021, with prepayments and securitizations contributing to the increase [37][38] Question: How does the recent rise in interest rates affect the company's strategy? - Management believes that loan prices have not yet reacted to the rise in interest rates, but they anticipate significant opportunities as a result [41]

Management and Ownership - The company has a 19.8% ownership in its Manager, which implements its business strategy and manages day-to-day operations[61] - The company has a 19.8% equity interest in its Manager and an 8.0% interest in the parent of its Servicer, structured through wholly owned subsidiaries[82] Fees and Compensation - The base management fee is set at 1.5% of stockholders' equity per annum, calculated quarterly[63] - The company pays an incentive fee of 20% on dividends exceeding 8% of book value, contingent on cumulative core earnings being positive[65] - The company is required to pay a termination fee equal to twice the combined base and incentive fees if the Management Agreement is terminated without cause[68] - The Servicer receives an annual servicing fee ranging from 0.65% to 1.25% of UPB, with specific reductions for certain joint ventures[72] Financing and Capital - The company may utilize various types of borrowings, including bank credit facilities and structured financing arrangements, depending on market conditions[56] - The company finances asset acquisitions with non-recourse securitizations and repurchase agreements, with borrowing bases ranging from 70% to 85% of market value[54] - The company may seek additional capital through public or private offerings, but there is no assurance of success in these efforts[56] - The company expects to continue securitizing whole loan portfolios as a financing tool, creating long-term, fixed-rate, non-recourse financing with moderate leverage[475] Risk Management - The company does not currently hedge risks associated with mortgage loans but may use derivative instruments for risk management in the future[58] - The company is exposed to real estate risk, including volatility in residential property values due to economic conditions and interest rate changes[474] - Credit risk is present due to potential borrower defaults, influenced by factors such as job loss and economic conditions, which may affect property values[478] - Prepayment risk is influenced by various factors, including interest rates and borrower behavior, with expectations of a slowdown in loan prepayments due to the pandemic[477] Servicing and Operations - The Servicer is licensed to service loans in all required states and is an approved servicer for FHA and VA[75] - The Servicer collects mortgage loan payments and is entitled to servicing fees based on specified percentages of the outstanding unpaid principal balance[76] - The company has implemented a multifaceted resolution approach for managing non-performing loans (NPLs) and real estate owned (REO) assets[76] - The company may engage in REO liquidation and short sale processes to generate cash for reinvestment if properties do not meet investment criteria[76] Compliance and Internal Controls - The company monitors compliance with the Investment Company Act to avoid registration as an investment company, ensuring less than 40% of total assets consist of investment securities[84] - The company conducted an evaluation of its disclosure controls and procedures, concluding they were effective as of the end of the reporting period[484] - Management assessed the effectiveness of internal control over financial reporting as of December 31, 2020, finding it effective based on established criteria[489] - The independent auditor, Moss Adams LLP, expressed an unqualified opinion on the company's internal control over financial reporting and consolidated financial statements[490] Market Conditions and Competition - The company competes with larger mortgage and hybrid REITs, hedge funds, and other financial institutions, which may have greater access to capital[79] - The company relies on its Manager's professionals for competitive advantages in assessing risks and pricing potential assets[81] - A rising interest rate environment could positively impact operations related to rental real property, potentially increasing rent levels and property values[476] - The company expects many borrowers to refinance loans at or near the estimated value of the underlying property, potentially generating attractive returns[76]

Great Ajax Corp. (NYSE:AJX) Q3 2020 Earnings Conference Call November 5, 2020 5:00 PM ET Company Participants Lawrence Mendelsohn - Chief Executive Officer Conference Call Participants Mike Smyth - B. Riley Securities Kevin Barker - Piper Sandler Operator Ladies and gentlemen, thank you for standing by and welcome to the Great Ajax Corp. Q3 2020 Earnings Conference Call. All lines are currently in a listen-only mode. After the speaker’s remarks, there will be a question-and-answer session. [Operator Instruc ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbols Name of each exchange on which registered Common stock, par value $0.01 per share AJX New York Stock Exchange 7.25% Convertible Senior Notes due 2024 AJXA New York Stock Exchange 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 September 30, 2020 OR ☐ ...

Great Ajax Corp. (NYSE:AJX) Q2 2020 Results Earnings Conference Call August 4, 2020 5:00 PM ET Company Participants Lawrence Mendelsohn - Chief Executive Officer Conference Call Participants Tim Hayes - B. Riley Stephen Laws - Raymond James Kevin Barker - Piper Sandler Operator Ladies and gentlemen, thank you for standing by, and welcome to the Great Ajax Corporation Q2 2020 Earnings Call. [Operator instructions] I would now like to hand the conference over to your speaker today, Mr. Lawrence Mendelsohn, CE ...

PART I. FINANCIAL INFORMATION [Consolidated Interim Financial Statements](index=3&type=section&id=Item%201.%20Consolidated%20Interim%20Financial%20Statements) Unaudited consolidated interim financial statements for Q2 2020, detailing financial position, performance, and cash flows [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) | Metric (in thousands) | June 30, 2020 | December 31, 2019 | | :-------------------- | :------------ | :---------------- | | Total assets | $1,639,924 | $1,576,841 | | Total liabilities | $1,141,054 | $1,192,757 | | Total equity | $498,870 | $384,084 | | Cash and cash equivalents | $163,422 | $64,343 | | Mortgage loans, net | $1,080,617 | $1,151,469 | | Secured borrowings, net | $609,812 | $652,747 | | Convertible senior notes, net | $111,773 | $118,784 | - Mortgage loans, net, include **$14.5 million** and **$2.0 million** of allowance for loan credit losses at June 30, 2020 and December 31, 2019, respectively[7](index=7&type=chunk) - Investments at fair value include net unrealized losses of **$3.9 million** at June 30, 2020, compared to unrealized gains of **$1.3 million** at December 31, 2019[7](index=7&type=chunk) [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) | Metric (in thousands) | Three months ended June 30, 2020 | Three months ended June 30, 2019 | Six months ended June 30, 2020 | Six months ended June 30, 2019 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Interest income | $23,705 | $28,128 | $50,991 | $57,580 | | Net interest income | $10,647 | $12,689 | $24,863 | $26,456 | | Provision for credit benefit/(losses) | $4,328 | $(85) | $(781) | $(239) | | Total revenue, net | $16,327 | $20,703 | $24,364 | $35,887 | | Total expense | $7,389 | $6,857 | $13,841 | $13,849 | | Consolidated net income attributable to Company | $8,083 | $13,027 | $8,483 | $20,357 | | Basic earnings per common share | $0.27 | $0.67 | $0.29 | $1.06 | | Diluted earnings per common share | $0.27 | $0.56 | $0.29 | $0.93 | - The Company sold no mortgage loans during the three months ended June 30, 2020, compared to **962 loans** sold for a gain of **$7.0 million** in the prior year period[8](index=8&type=chunk) [Consolidated Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) | Metric (in thousands) | Three months ended June 30, 2020 | Three months ended June 30, 2019 | Six months ended June 30, 2020 | Six months ended June 30, 2019 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Consolidated net income attributable to common stockholders | $6,242 | $13,027 | $6,642 | $20,357 | | Net unrealized gain/(loss) on investments in available-for-sale debt securities | $23,231 | $710 | $(5,213) | $1,107 | | Comprehensive income | $29,473 | $13,737 | $1,429 | $21,464 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) | Metric (in thousands) | Six months ended June 30, 2020 | Six months ended June 30, 2019 | | :-------------------- | :----------------------------- | :----------------------------- | | Net cash from operating activities | $(10,232) | $(9,951) | | Net cash from investing activities | $56,983 | $112,528 | | Net cash from financing activities | $52,498 | $(101,997) | | Net change in cash, cash equivalents, and cash held in trust | $99,249 | $580 | | Cash, cash equivalents and cash held in trust, end of period | $163,612 | $55,750 | - Cash paid for interest was **$22.8 million** for the six months ended June 30, 2020, down from **$28.2 million** in the prior year period[15](index=15&type=chunk) - Proceeds from issuance of preferred stock and warrants, net of offering costs, totaled **$124.977 million** for the six months ended June 30, 2020[15](index=15&type=chunk) [Consolidated Statements of Changes in Equity](index=9&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Equity) | Metric (in thousands) | Balance at Dec 31, 2019 | Net income | Preferred Stock | Issuance of shares under dividend reinvestment plan | Stock-based compensation expense | Dividends declared and distributions | Other comprehensive income | Treasury stock | Balance at June 30, 2020 | | :-------------------- | :---------------------- | :--------- | :-------------- | :-------------------------------------------------- | :------------------------------- | :----------------------------------- | :------------------------- | :------------- | :----------------------- | | Total Stockholders' Equity | $359,882 | $8,083 | $115,144 | $41 | $214 | $(5,748) | $23,231 | $(38) | $472,987 | | Noncontrolling Interest | $24,202 | $735 | — | — | — | $(66) | — | — | $25,883 | | Total Equity | $384,084 | $8,818 | $115,144 | $41 | $214 | $(5,814) | $23,231 | $(38) | $498,870 | - During Q2 2019, all **624,106 Operating Partnership units** held by an unaffiliated holder were exchanged for common stock, resulting in the Operating Partnership being **100% owned** by the Company at June 30, 2020[34](index=34&type=chunk) [Note 1 — Organization and Basis of Presentation](index=12&type=section&id=Note%201%20%E2%80%94%20Organization%20and%20Basis%20of%20Presentation) - Great Ajax Corp. is an externally managed real estate company formed on January 30, 2014, operating as a mortgage REIT, primarily targeting acquisitions of re-performing loans (RPLs) and small balance commercial loans (SBC loans)[25](index=25&type=chunk) - The Company also invests in single-family and smaller commercial properties directly and opportunistically acquires non-performing loans (NPLs)[25](index=25&type=chunk) - The Company owns **19.8%** of its Manager (Thetis Asset Management LLC) and **8.0%** of Great Ajax FS LLC (parent of the Servicer, Gregory Funding LLC), both affiliated companies[25](index=25&type=chunk) [Note 2 — Summary of Significant Accounting Policies](index=14&type=section&id=Note%202%20%E2%80%94%20Summary%20of%20Significant%20Accounting%20Policies) - The Company adopted ASU 2016-13, Financial Instruments - Credit Losses (CECL), on January 1, 2020, requiring recording expected credit losses over the life of loans and beneficial interests[87](index=87&type=chunk) - Upon CECL adoption, a **$10.2 million** reclassification occurred between loan discount and allowance for purchased credit impaired loans, and a **$4.2 million** reclassification for beneficial interests, with no net impact on the balance sheet or equity[88](index=88&type=chunk) - The Company issued **$125.0 million** (net of offering costs) of preferred stock and warrants in private placements during Q2 2020, recognizing an **$11.1 million** put option liability for the warrants[54](index=54&type=chunk) [Note 3 — Mortgage Loans](index=23&type=section&id=Note%203%20%E2%80%94%20Mortgage%20Loans) | Loan Type (in thousands) | June 30, 2020 | December 31, 2019 | | :----------------------- | :------------ | :---------------- | | Residential RPLs loans | $1,048,146 | $1,085,514 | | SBC/commercial loans | $4,240 | $35,086 | | Residential NPL loans | $28,231 | $30,869 | | Total | $1,080,617 | $1,151,469 | - The Company recognized a recovery of **$