Wall Street expects a year-over-year increase in earnings on higher revenues when AG Mortgage Investment Trust (MITT) reports results for the quarter ended March 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, ...

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Acquisition and Mergers - The company completed the acquisition of Western Asset Mortgage Capital Corporation (WMC) on December 6, 2023, merging it into a wholly owned subsidiary[300]. - The company increased its investment portfolio by $1.2 billion through the acquisition of WMC in December 2023, primarily consisting of Securitized Non-Agency Loans[357]. - The bargain purchase gain from the WMC acquisition was recorded at $30.2 million, reflecting the difference between the fair value of net assets acquired and the consideration paid[333]. - The company assumed liabilities of $1.1 billion through the acquisition of WMC, which included securitized debt and convertible senior unsecured notes[394]. Financial Performance - The net income available to common stockholders was $1.23 per diluted common share for the year ended December 31, 2024[305]. - For the year ended December 31, 2024, net income available to common stockholders was $36,384,000, compared to $35,440,000 for the year ended December 31, 2023[354]. - Earnings available for distribution (EAD) for the year ended December 31, 2024, was $22,577,000, significantly higher than $8,274,000 for the year ended December 31, 2023[354]. - Net interest income increased to $65,892,000 for the year ended December 31, 2024, compared to $47,829,000 in 2023, reflecting a change of $18,063,000[319]. - Interest income rose to $408,495,000 in 2024 from $260,329,000 in 2023, an increase of $148,166,000, primarily due to the WMC acquisition and increased weighted average yield[319][321]. - Total net interest income for the year ended December 31, 2024, was $3,575,000, compared to $5,190,000 for the year ended December 31, 2023[346]. Dividends and Stockholder Returns - The company declared a dividend of $0.75 per common share for the year, increasing the quarterly dividend from $0.18 to $0.19, representing a 5.6% increase[305]. - The company declared common stock dividends of $0.75 per share and preferred stock dividends ranging from $2.00 to $2.233117 during the year ended December 31, 2024[410]. Investment Portfolio - The investment portfolio for the year ended December 31, 2024, included purchases totaling $2,396,812,000 and sales amounting to $965,196,000[302]. - Total investment portfolio amounted to $7,063,632, with a fair value of $6,702,026 and a yield of 6.03% as of December 31, 2024[371]. - Securitized non-agency loans totaled $6,388,631 with a fair value of $6,044,597 and a yield of 5.68%[371]. - The total residential investments reached $6,917,457, with a fair value of $6,561,240 and a yield of 5.89%[371]. Interest Rates and Financing - The Federal Reserve lowered the target range for the Federal Funds Rate by 100 basis points in 2024, ending at 4.25% to 4.50%[307]. - The effective mortgage rate outstanding increased slightly to 4.02% as of December 2024, reflecting a rise of approximately 72 basis points since March 2022[311]. - The cost of funds related to the financing of the investment portfolio was 5.24%, including a benefit of 0.05% from interest rate hedges[363]. - Interest expense rose to $342,603,000 in 2024 from $212,500,000 in 2023, an increase of $130,103,000 due to higher financing costs[319][324]. Expenses and Costs - Total expenses decreased to $34,951,000 in 2024 from $38,672,000 in 2023, a reduction of $3,721,000[319]. - The company incurred transaction-related expenses of $3,310,000 for the year ended December 31, 2024, down from $11,233,000 for the year ended December 31, 2023[354]. - Non-investment related expenses for the year ended December 31, 2024, were $5.715 million, compared to $5.095 million in 2023[437]. Equity and Stockholder Equity - Total stockholders' equity was reported at $543,423, reflecting a leverage ratio of 11.6x[371]. - GAAP leverage was reported at $6,319.227 million, resulting in a leverage ratio of 11.6x against stockholders' equity of $543.423 million[405]. - Economic leverage, a non-GAAP measure, was $777.726 million, with a leverage ratio of 1.4x[405]. Cash Flow and Liquidity - Cash provided by operating activities increased to $55.839 million, up from $28.134 million in the previous year[417]. - Cash used in investing activities rose to $713.131 million, primarily due to increased purchase activity[418]. - Cash provided by financing activities was $670.287 million, attributed to the issuance of securitized debt and senior unsecured notes[419]. - As of December 31, 2024, the company had liquidity of $136.9 million, consisting of $118.7 million in cash and $18.2 million in unencumbered Agency RMBS[412]. Compliance and Regulatory Matters - The company must distribute at least 90% of ordinary taxable income to qualify as a REIT, impacting its ability to make distributions to stockholders[468]. - Failure to qualify as a REIT could result in U.S. federal income tax at regular corporate rates, adversely affecting operations and distributions[469]. - The company conducts operations to maintain exempt status under the Investment Company Act, ensuring compliance with the 40% Test[472]. Valuation and Fair Value Measurements - The company has significant unobservable inputs in fair value measurements, particularly the book value multiple, which can significantly affect fair value[452]. - The assets of securitization entities are primarily comprised of residential mortgage loans, with ongoing reassessments of consolidation conclusions[464]. - Goodwill is calculated as the excess of consideration transferred over the net assets acquired, representing estimated future economic benefits[465]. Management and Incentives - The company recorded management fees payable of $2.3 million and $1.5 million as of December 31, 2024, and 2023, respectively[431]. - The annual incentive fee is set at 15% of cumulative adjusted net income exceeding an 8% return on a base of $341.5 million, with no incentive fee expense incurred for the years ended December 31, 2024, and 2023[432]. - The company granted an aggregate of 130,000 restricted shares of common stock to certain employees of the Manager under the 2020 Equity Incentive Plan, vesting in three annual installments starting January 2026[441].

AG Mortgage Investment Trust, Inc. (NYSE: MITT ) is an actively managed mortgage real estate investment trust, or an mREIT, that we have traded a few times in the past. They work with an externalLooking for more returns like this? That is what we do at BAD BEAT InvestingEnjoy more rapid-returns with our strategy to advance your savings and retirement timeline by embracing a blended trading and income approach!If you would like, you can try our service out and take 20% off right NOW through this MITT article ...

Financial Performance - The company reported a book value increase of 0.6% from $10.58 to $10.64 per share, with a quarterly dividend of $0.19 and an economic return on equity of 2.4% for Q4 2024 [8][26] - For the full year 2024, the company increased its quarterly dividend by 5.6% and achieved an annual economic return on equity of 11.7% [8][26] - The total stockholder returns since the WMC acquisition have exceeded 15% [12] Business Lines and Investment Portfolio - The investment portfolio grew by 13% to $6.7 billion, with six securitizations executed and home equity loans incorporated into the product mix [25][26] - The company acquired $359 million of agency-eligible loans and $153 million of home equity loans during Q4, offset by the sale of $185 million of home equity loans [29] Market Data and Economic Environment - The economic leverage ratio at the end of the quarter was 1.4 turns, slightly down from 1.5 turns in September, indicating prudent management of leverage exposure [30] - The company ended the quarter with total liquidity of approximately $137 million, consisting of $119 million in cash and $18 million in unencumbered agency RMBS [30] Company Strategy and Competitive Position - The company emphasizes a disciplined securitization strategy and has been able to rotate asset allocations effectively, focusing on non-agency credit and home equity lending [11][24] - The management highlighted the importance of TPG Angelo Gordon's resources, which provide significant advantages in access to capital and expertise in the residential finance sector [14][20] Management Commentary on Future Outlook - Management expressed confidence in the company's ability to grow and protect book value despite challenging market conditions, with a focus on dynamic execution and seizing growth opportunities [9][11] - The company expects continued growth in its investment portfolio and resilience in its business model, particularly in the face of fluctuating interest rates [54] Other Important Information - Arc Home, a subsidiary, is transitioning to profitability after facing challenges, with recent investments in talent expected to drive further growth [22][25] - The company is actively monitoring the market for preferred equity financing and is comfortable with its current leverage ratios [36] Q&A Session Summary Question: How would you characterize your excess capital? - Management indicated that deployable capital could range from $75 million to $100 million, with various positions maturing and inefficient financings rolling off [34] Question: Thoughts on corporate leverage and preferred equity? - Management is comfortable with current leverage ratios and has been monitoring the market for new preferred deals [36] Question: Relative attractiveness of non-QM versus home equity? - Management believes home equity presents a large addressable market and is leaning more towards it, while non-QM continues to grow [40][41] Question: Expectations for origination volume in Arc Home? - Management expects continued growth in Arc Home's business model, which is seen as more resilient than the broader mortgage market [54] Question: Current thoughts on the dividend? - Management is in a transitional phase regarding EAD contributions from Arc Home and expects a positive contribution moving into 2025 [58]

AG Mortgage Investment Trust (MITT) came out with quarterly earnings of $0.18 per share, missing the Zacks Consensus Estimate of $0.19 per share. This compares to earnings of $0.17 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -5.26%. A quarter ago, it was expected that this real estate investment trust would post earnings of $0.20 per share when it actually produced earnings of $0.17, delivering a surprise of -15%.Over the ...

AG Mortgage Investment Trust, Inc. Q4 2024 Earnings Presentation December 31, 2024 1 Forward Looking Statements & Non-GAAP Financial Information Forward Looking Statements: This presentation includes "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995 related to dividends, book value, our investments, our business and investment strategy, investment returns, return on equity, liquidity, financing, taxes, our asse ...

Exhibit 99.1 Full Year 2024: Fourth Quarter 2024: INVESTING AND FINANCING HIGHLIGHTS DIVIDENDS 1 • $10.64 Book Value per share as of December 31, 2024 (1) ◦ Annual economic return on equity of 11.7% (2) ◦ Book value is calculated using stockholders' equity less the liquidation preference of our cumulative redeemable preferred stock of $228.0 million • $1.23 of Net Income/(Loss) Available to Common Stockholders per diluted common share (3) • $0.76 of Earnings Available for Distribution ("EAD") per diluted co ...

Financial Performance - Net Income available to common stockholders is $0.40 per diluted common share, with Earnings Available for Distribution (EAD) at $0.17 per diluted common share[218]. - Net income available to common stockholders was $11,924,000, a significant increase from a loss of $6,751,000 in the prior year, representing a turnaround of $18,675,000[258]. - Net income available to common stockholders for the nine months ended September 30, 2024, was $27,567, an increase of $22,894 from $4,673 in 2023[285]. - Interest income increased to $107,456,000 for the three months ended September 30, 2024, up from $64,211,000 in the same period of 2023, representing a growth of 67.1%[258]. - Total net interest income rose to $14,950,000, compared to $11,519,000 in the prior year, marking an increase of 29.1%[258]. - Interest income rose to $302,843 for the nine months ended September 30, 2024, up by $120,041 from $182,802 in the prior year[285]. - Total net unrealized gain for the nine months ended September 30, 2024, was $20,488, compared to a loss of $257 for the same period in 2023[296]. - The net unrealized loss for the nine months ended September 30, 2024, was $(20,488) thousand, compared to a gain of $257 thousand for the same period in 2023[309]. Investment Portfolio - The company acquired Western Asset Mortgage Capital Corporation, increasing its investment portfolio by $1.2 billion, primarily consisting of Securitized Non-Agency Loans[227]. - The fair value of investments purchased during Q3 2024 totaled $575.986 million, while proceeds from sales amounted to $706.881 million[219]. - As of September 30, 2024, the total investment portfolio amounted to $6,972,893, with a net interest margin of 5.93%[318]. - The weighted average yield of the company's investment portfolio based on fair value was 6.00% as of September 30, 2024[318]. - The weighted average amortized cost of the GAAP investment portfolio increased to $6,837 million as of September 30, 2024, up by $2,012 million from $4,825 million in 2023[287]. - The weighted average yield on the GAAP investment portfolio improved to 5.93% from 5.21%, an increase of 0.72%[261]. - The total residential investments in the portfolio were valued at $6,826,354, with a net interest margin of 5.79%[317]. - Securitized non-agency loans had an amortized cost of $6,235,950 and a fair value of $6,052,165, yielding 5.60%[317]. Dividends and Stockholder Equity - The company declared a dividend of $0.19 per common share[218]. - The company declared common stock dividends of $0.56 and preferred stock dividends of $1.54689, $1.50, and $1.50 for Series A, B, and C Preferred Stock, respectively, during the nine months ended September 30, 2024[359]. - Approximately 9.2 million shares of common stock were issued to former WMC common stockholders, who now own about 31% of the combined company's equity following the merger[238]. - The book value per common share increased to $10.58 as of September 30, 2024, up from $10.20 at the end of 2023[252]. Leverage and Financing - The GAAP Leverage Ratio is 11.8x, and the Economic Leverage Ratio is 1.5x[218]. - The leverage ratio for the total investment portfolio was 1.5x, indicating the company's economic leverage[318]. - Economic leverage, a non-GAAP metric, was $831,969 with a leverage ratio of 1.5x as of September 30, 2024[355]. - The cost of funds related to the financing on the investment portfolio was 5.25%, including a benefit of 0.08% from interest rate hedges[318]. Market Conditions - The S&P CoreLogic Case-Shiller U.S. National Home Price Index rose by 5% year-to-date and year-over-year, with forecasts for 2024 and 2025 averaging +3.5% and +3%, respectively[246]. - The effective mortgage rate outstanding was 3.92% as of June 2024, significantly lower than prevailing rates, indicating a potential "lock-in effect" among homeowners[247]. - Total existing home listings rose to 1.35 million in August 2024, the highest level since Q4 2020, although new listings remain below pre-pandemic levels[248]. - RMBS spreads tightened during Q3 2024, with senior and mezzanine Non-QM tranches tightening by 5 basis points and subordinate BB rated tranches tightening by 20 basis points[244]. - The Federal Reserve lowered the target range for the Federal Funds Rate by 50 basis points to 4.75% to 5.00% on September 18, 2024, marking the first decline in four years[243]. Management and Governance - The management agreement with TPG Angelo Gordon remains unchanged following the acquisition by TPG, ensuring continuity in management[240]. - The cumulative adjusted net income hurdle for the Manager's incentive fee is based on an 8% return on an equity hurdle base of $341.5 million[382]. - The Company has not incurred any incentive fee expense during the three and nine months ended September 30, 2024 and 2023[383]. - The Board of Directors authorized a stock repurchase program in 2023 to repurchase up to $15.0 million of common stock, with the full amount remaining available for repurchase[369]. Compliance and Risk Management - The company is organized to qualify as a REIT, requiring it to distribute at least 90% of its ordinary taxable income to stockholders[400]. - If the company fails to qualify as a REIT, it may face U.S. federal income tax at regular corporate rates, adversely affecting its operations and ability to pay distributions[401]. - The company is exposed to market risks including interest rates, liquidity, and credit, which have heightened due to inflation and rising mortgage rates[406]. - Interest rate risk is managed through monitoring interest rates, structuring financing arrangements, and using derivative instruments[407]. - The company's operating results depend on the difference between yields on investments and borrowing costs, which may narrow in a rising interest rate environment[408].

Financial Data and Key Metrics Changes - The company's book value increased from $10.37 to $10.58, representing a 2% growth, while producing a 3.9% economic return on equity for the quarter [8][27] - Net interest income for the quarter was $15.8 million, with earnings per share at $0.40 and EAD per share at $0.17 [9][28] - The economic leverage ratio decreased from 2.5 turns to 1.5 turns during the quarter, indicating a reduction in leverage [10][30] Business Line Data and Key Metrics Changes - The company issued two agency-eligible non-owner-occupied securitizations totaling approximately $750 million, strengthening its market position [11][16] - The company acquired approximately $150 million of home equity loans and committed to purchase another $200 million, indicating a strategic shift towards this growing segment [20][23] - The investment portfolio decreased by approximately 1.4% to $6.8 billion, with active acquisitions offset by sales of Agency RMBS and loans [29] Market Data and Key Metrics Changes - The home equity lending market is estimated to be as much as $2 trillion, with expected annual loan originations of $200 billion to $300 billion [22] - The company noted that its securitized agency-eligible investor book has lower delinquencies compared to similar vintage non-AC prime jumbo transactions [18] Company Strategy and Development Direction - The company is focusing on home equity loans as a new opportunity, leveraging its expertise in mortgage banking and asset management [20][23] - Management indicated a cautious approach to capital allocation in the agency-eligible investor space due to increased competition and changing market dynamics [17] Management's Comments on Operating Environment and Future Outlook - Management expressed that housing supply and affordability remain significant issues, with no immediate solutions in sight [13] - The company believes it is less exposed to interest rate volatility compared to the average mortgage rate, and expects to deliver strong results even in a flat yield curve environment [14] Other Important Information - The company plans to simplify its reporting by solely disclosing book value adjusted for the liquidation preference of preferred stock [27] - The company ended the quarter with total liquidity of approximately $120 million, consisting of $103 million in cash and $17 million in unencumbered agency RMBS [31] Q&A Session Summary Question: Home equity opportunity and equity allocation - Management expects a high portion of future capital deployment to be in the home equity sector due to its attractiveness [33] Question: Drivers for increasing earnings closer to dividends - Management indicated that as assets mature and credit plays out, there is room to increase ROEs, which could align earnings with dividends [34][35] Question: Thoughts on the dividend amidst operating earnings dip - Management noted that they are building a pipeline for higher ROE opportunities and expect Arc Home to trend towards breakeven, which would support dividend coverage [38][40] Question: Impact of prepay assumptions in the current quarter - Management stated that the prepay assumption was a major driver for the decrease in EAD from $0.21 to $0.17 [44] Question: Securitization as a financing method for home equity - Management confirmed that securitization is the primary method for financing home equity loans, with sizes typically ranging from $275 million to $500 million [45] Question: Current level of cash and liquidity comfort - Management expressed comfort with the current liquidity level of approximately $120 million, indicating room for leveraging [48] Question: Concerns about credit performance and recession risks - Management is not seeing deterioration in credit performance and believes there are multiple loss remediation tactics available [56][57]