AG Mortgage Investment Trust (MITT) came out with quarterly earnings of $0.20 per share, missing the Zacks Consensus Estimate of $0.24 per share. This compares to earnings of $0.21 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -16.67%. A quarter ago, it was expected that this real estate investment trust would post earnings of $0.19 per share when it actually produced earnings of $0.18, delivering a surprise of -5.26%.Over t ...

[Company Overview](index=7&type=section&id=Company_Overview) Focuses on MITT's core strategy as a residential mortgage REIT and its approach to Non-Agency loan securitizations [Business Strategy](index=7&type=section&id=Business_Strategy) AG Mortgage Investment Trust, Inc. (MITT) positions itself as a pure-play residential mortgage REIT focused on generating attractive risk-adjusted returns - MITT's core business model is the aggregation and securitization of Non-Agency residential loans to generate long-term returns[9](index=9&type=chunk) - The company's strategic pillars include maintaining a high-quality portfolio, having sufficient liquidity, a disciplined approach to securitization and leverage, and accessing investment opportunities with a credit-first mindset[10](index=10&type=chunk) [Q1 2025 Financial & Performance Highlights](index=9&type=section&id=Q1_2025_Financial_and_Performance_Highlights) Summarizes MITT's Q1 2025 financial position, including book value, portfolio growth, and key performance metrics like EAD and dividend [Q1 2025 Financial Position](index=9&type=section&id=Q1_2025_Financial_Position) As of Q1 2025, the company reported a stable book value per share of $10.65, an investment portfolio of $7.1 billion, and maintained a low economic leverage ratio of 1.6x Key Financial Metrics (Q1 2025 vs Q4 2024) | Metric | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Book Value per Share | $10.65 | $10.64 | | Investment Portfolio | $7.1 billion | $6.7 billion | | Total Equity | $543.9 million | - | | Liquidity | $132.5 million | - | | Economic Leverage Ratio | 1.6x | - | - The investment portfolio grew from **$6.7 billion** in Q4 2024 to **$7.1 billion** in Q1 2025, primarily driven by an increase in securitized loans[14](index=14&type=chunk) - The financing profile is predominantly composed of non-recourse debt, which increased to **$6.7 billion** from **$6.4 billion** in the prior quarter[14](index=14&type=chunk) [Q1 2025 Performance](index=11&type=section&id=Q1_2025_Performance) In Q1 2025, MITT reported Earnings Available for Distribution (EAD) of $0.20 per share, supporting a 5.3% increase in the common dividend to $0.20 per share Q1 2025 Earnings and Dividend Summary | Metric | Value | | :--- | :--- | | Net Interest Income | $19.6 million | | GAAP Earnings per Share | $0.21 | | EAD per Share | $0.20 | | Dividend per Share | $0.20 | - The company remained active in its securitization strategy, executing a securitization of **$423.3 million UPB** of Agency-Eligible Loans[17](index=17&type=chunk) - MITT continued to grow its Home Equity Loan portfolio, purchasing **$128.2 million** in Q1 and an additional **$52.4 million** in April[17](index=17&type=chunk) - Arc Home's performance improved, reaching breakeven due to strong volumes and better margins, which enhanced its EAD contribution to MITT[18](index=18&type=chunk) [Investment Portfolio Analysis](index=13&type=section&id=Investment_Portfolio_Analysis) Provides a detailed breakdown of MITT's investment portfolio, securitization activities, loan composition, and the role of Arc Home [Securitization Activity](index=13&type=section&id=Securitization_Activity) MITT operates as a programmatic issuer of Non-Agency securitizations, a core strategy to generate attractive equity returns - The company's securitization strategy involves three steps: acquiring loans, securitizing them through its "GCAT" shelf or partnerships, and retaining bonds to reinvest[24](index=24&type=chunk) - Since 2021, MITT has acquired over **$9 billion** in residential mortgage loans and completed **24 securitizations**[24](index=24&type=chunk) - The securitized loan portfolio has shown significant growth, as depicted by the portfolio growth chart[25](index=25&type=chunk) [Loan Portfolio Composition](index=15&type=section&id=Loan_Portfolio_Composition) The loan portfolio is predominantly composed of Non-Agency Loans, which make up 82.3% of the equity invested, with a total fair value of $6.7 billion - The majority of equity (**$331.0 million**) is invested in Non-Agency Loans (**82.3%**), followed by Home Equity Loans (**12.5%**) and Re/Non-Performing Loans (**5.2%**)[29](index=29&type=chunk)[33](index=33&type=chunk) Non-Agency Loan Portfolio Characteristics | Metric | Value | | :--- | :--- | | Unpaid Principal Balance | $6.7 billion | | Coupon | 5.7% | | FICO | 765 | | Current LTV | 59% | | 90+ Days DQ % | 1.3% | Home Equity Loan Portfolio Characteristics | Metric | Value | | :--- | :--- | | Unpaid Principal Balance | $214.7 million | | Coupon | 10.3% | | FICO | 750 | | CLTV | 63% | | 90+ Days DQ % | 0.0% | [Legacy WMC Commercial Investments](index=17&type=section&id=Legacy_WMC_Commercial_Investments) The legacy WMC commercial portfolio, acquired via merger, constitutes a small portion of the overall business, representing 1.7% of the investment portfolio and 10.5% of total equity - This legacy portfolio has a fair value of **$119.8 million**, with collateral primarily in Multifamily (**49.5%**) and Office (**40.5%**) properties[38](index=38&type=chunk) - The two remaining commercial loans are first mortgages, collateralized by hotel and retail properties, with borrowers current on payments[39](index=39&type=chunk) - The CMBS portfolio has a weighted average unlevered yield of **17.2%** and a weighted average price of **54%**, offering potential book value upside[39](index=39&type=chunk) [Arc Home: Proprietary Origination Channel](index=19&type=section&id=Arc_Home_Origination_Channel) Arc Home serves as MITT's proprietary mortgage origination channel, with its Q1 2025 contribution to MITT's EAD turning positive due to increased lock volume and improved margins - MITT's investment in Arc Home was valued at **$32.2 million**, representing **5.9%** of MITT's total equity as of March 31, 2025[43](index=43&type=chunk) - Arc Home's lock volume increased by **48%** from Q1 2024, indicating strong origination activity[43](index=43&type=chunk) - Arc Home's contribution to MITT's EAD per share improved from negative **$(0.02)** in Q4 2024 to breakeven (**$0.00**) in Q1 2025[43](index=43&type=chunk) - In Q1 2025, MITT purchased **$715.9 million (UPB)** of loans from Arc Home[43](index=43&type=chunk) [Detailed Investment Portfolio Table](index=21&type=section&id=Detailed_Investment_Portfolio_Table) The total investment portfolio of $7.1 billion is financed with $6.8 billion in debt, resulting in $471.8 million of invested equity and an economic leverage of 1.6x Q1 2025 Investment Portfolio Summary | Metric | Value | | :--- | :--- | | Total Asset FMV | $7,115.0 million | | Total Financing | $6,823.2 million | | Total Economic Equity | $471.8 million | | Portfolio Yield | 6.0% | | Portfolio Cost of Funds | 5.3% | | Portfolio Economic Leverage | 1.6x | | Portfolio ROE | 18.3% | - Securitized Non-Agency Loans are the largest component, with **$6.4 billion** in fair value and generating a **17.5% ROE**[46](index=46&type=chunk) - Higher-yielding assets include Home Equity Loans (**20.9% ROE**), Securitized RPL/NPL Loans (**26.7% ROE**), and Legacy WMC CMBS (**26.8% ROE**)[46](index=46&type=chunk) [Financing & Capital Structure](index=23&type=section&id=Financing_and_Capital_Structure) Details MITT's financing profile, emphasizing securitized debt and low economic leverage, along with book value reconciliation [Q1 2025 Financing Profile](index=23&type=section&id=Q1_2025_Financing_Profile) MITT's investment portfolio is primarily financed through term, non-mark-to-market securitized debt, which comprises $5.8 billion of the total $6.7 billion in GAAP financing GAAP Financing Breakdown (Q1 2025) | Financing Type | Amount (in millions) | Cost of Funds | | :--- | :--- | :--- | | Securitized Debt | $5,836.7 | 5.2% | | Residential Bond Financing | $520.3 | 5.6% | | Residential Loan Financing | $223.0 | 6.3% | | Legacy WMC Commercial Financing | $62.5 | 7.2% | | Senior Unsecured Notes | $95.9 | 10.6% | | **Total GAAP Financing** | **$6,739.1** | **5.3%** | - The company maintains a low economic leverage ratio of **1.6x**, with the majority of leverage attributed to securitized debt (**0.9x**) and residential bond financing (**0.4x**)[52](index=52&type=chunk) [Book Value Roll-Forward](index=25&type=section&id=Book_Value_Roll-Forward) The company's book value per share experienced a slight increase of $0.01 during Q1 2025, moving from $10.64 to $10.65 Q1 2025 Book Value Per Share Reconciliation | Description | Per Diluted Share | | :--- | :--- | | **12/31/2024 Book Value** | **$10.64** | | Common dividend | ($0.20) | | Earnings available for distribution ("EAD") | $0.20 | | Net realized/unrealized gains & other | ($0.01) | | **3/31/2025 Book Value** | **$10.65** | | **Change in Book Value** | **$0.01** | [Appendix & Reconciliations](index=27&type=section&id=Appendix_and_Reconciliations) Offers supplementary financial details, including reconciliations for EAD and economic leverage, and condensed financial statements [EAD Reconciliation](index=27&type=section&id=EAD_Reconciliation) For Q1 2025, GAAP Net Income available to common stockholders was $6.2 million ($0.21 per share), with EAD totaling $6.0 million ($0.20 per share) after adjustments Reconciliation of GAAP Net Income to EAD (Q1 2025) | Description (in thousands) | Amount | Per Diluted Share | | :--- | :--- | :--- | | Net Income available to common stockholders | $6,173 | $0.21 | | Adjustments (unrealized gains, transaction costs, etc.) | ($191) | ($0.01) | | **Earnings Available for Distribution (EAD)** | **$5,982** | **$0.20** | - The primary components of EAD were Net Interest Income of **$19.6 million**, offset by total operating expenses of **$14.4 million**[57](index=57&type=chunk) [Economic Leverage Reconciliation](index=31&type=section&id=Economic_Leverage_Reconciliation) The company reconciles its GAAP leverage of $6.7 billion to its non-GAAP Economic Leverage of $850.7 million, resulting in a GAAP Leverage Ratio of 12.4x and an Economic Leverage Ratio of 1.6x Leverage Ratio Reconciliation (as of March 31, 2025) | Metric | Value | | :--- | :--- | | GAAP Leverage | $6,734.1 million | | Less: Non-recourse financing | ($5,883.4 million) | | **Economic Leverage** | **$850.7 million** | | GAAP Stockholders' Equity | $543.9 million | | **GAAP Leverage Ratio** | **12.4x** | | **Economic Leverage Ratio** | **1.6x** | [Condensed Financial Statements](index=33&type=section&id=Condensed_Financial_Statements) The condensed consolidated balance sheet shows total assets grew to $7.32 billion, while the statement of operations reported a Net Income of $11.5 million for Q1 2025 - Total assets increased to **$7.32 billion** as of March 31, 2025, from **$6.91 billion** as of December 31, 2024[64](index=64&type=chunk) - Total stockholders' equity remained stable at **$543.9 million**[64](index=64&type=chunk) Condensed Statement of Operations (Q1 2025 vs Q1 2024) | (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Net Interest Income | $18,849 | $17,179 | | Total Other Income/(Loss) | $1,549 | $10,811 | | Total Expenses | $10,106 | $9,137 | | **Net Income/(Loss)** | **$11,477** | **$20,890** |

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].

Group 1 - AG Mortgage Investment Trust, Inc. (NYSE: MITT) is an actively managed mortgage real estate investment trust (mREIT) [1] - The company has been traded multiple times in the past, indicating a history of market activity [1] Group 2 - The investment strategy involves a blended trading and income approach aimed at enhancing savings and retirement timelines [1]

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 ...