PART I. FINANCIAL INFORMATION This section presents the company's unaudited consolidated financial statements and management's discussion for the periods ended June 30, 2025 [Item 1. Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This section presents AG Mortgage Investment Trust's unaudited consolidated financial statements for the periods ended June 30, 2025 [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) This section summarizes the company's assets, liabilities, and equity as of June 30, 2025, and December 31, 2024 Consolidated Balance Sheet Summary (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$7,462,425** | **$6,913,609** | | Securitized residential mortgage loans, at fair value | $6,648,988 | $6,197,678 | | Residential mortgage loans, at fair value | $327,454 | $220,217 | | **Total Liabilities** | **$6,926,018** | **$6,370,186** | | Securitized debt, at fair value | $5,937,637 | $5,491,967 | | Financing arrangements | $843,537 | $742,108 | | **Total Stockholders' Equity** | **$536,407** | **$543,423** | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) This section details net interest income, expenses, and net income for the three and six months ended June 30, 2025 and 2024 Consolidated Statements of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Net Interest Income | $17,752 | $16,381 | $36,601 | $33,560 | | Total Other Income/(Loss) | $(2,713) | $(4,896) | $(1,164) | $5,915 | | Total Expenses | $11,325 | $8,471 | $21,431 | $17,608 | | Net Income/(Loss) | $3,945 | $3,925 | $15,422 | $24,815 | | Net Income/(Loss) Available to Common Stockholders | $(1,376) | $(661) | $4,797 | $15,643 | | Basic EPS | $(0.05) | $(0.02) | $0.16 | $0.53 | | Diluted EPS | $(0.05) | $(0.02) | $0.16 | $0.53 | [Consolidated Statements of Stockholders' Equity](index=5&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) This section outlines changes in stockholders' equity, including net income and dividends, for the periods presented - Total Stockholders' Equity decreased from **$543.4 million** at the beginning of 2025 to **$536.4 million** at June 30, 2025, primarily due to common and preferred dividends declared exceeding net income for the period[20](index=20&type=chunk) - For the three months ended June 30, 2025, the company declared common dividends of **$0.21 per share**, totaling **$6,235 thousand**[18](index=18&type=chunk) [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section summarizes cash flows from operating, investing, and financing activities for the six months ended June 30, 2025 and 2024 Cash Flow Summary for the Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $23,515 | $25,704 | | Net cash used in investing activities | $(485,249) | $(921,516) | | Net cash provided by financing activities | $423,335 | $918,673 | | **Net change in cash** | **$(38,399)** | **$22,861** | [Notes to Consolidated Financial Statements (unaudited)](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20(unaudited)) This section provides detailed explanations and disclosures supporting the unaudited consolidated financial statements [Note 1. Organization](index=8&type=section&id=Note%201.%20Organization) AG Mortgage Investment Trust (MITT) is a residential mortgage REIT primarily acquiring and securitizing U.S. residential mortgage loans - The Company's primary business involves acquiring and securitizing newly-originated residential mortgage loans, sourced through its affiliate Arc Home (in which it holds a **~44.6% interest**) and other third-party partners[28](index=28&type=chunk) - The Company acquired Western Asset Mortgage Capital Corporation ("WMC") on **December 6, 2023**, expanding its portfolio with residential mortgage loans, real estate securities, and commercial real estate loans[29](index=29&type=chunk) - The Company operates as a single reportable segment, "Loans and Securities," and is externally managed by AG REIT Management, LLC, a subsidiary of TPG Angelo Gordon[34](index=34&type=chunk)[35](index=35&type=chunk) [Note 3. Loans](index=12&type=section&id=Note%203.%20Loans) This note details the company's $7.0 billion residential and commercial loan portfolio, including securitized loans and geographic concentration Residential Mortgage Loan Portfolio Summary (in thousands) | Category | Unpaid Principal Balance | Fair Value | | :--- | :--- | :--- | | **June 30, 2025** | | | | Securitized residential mortgage loans | $6,910,472 | $6,648,988 | | Residential mortgage loans | $305,290 | $327,454 | | **Total** | **$7,215,762** | **$6,976,442** | | **December 31, 2024** | | | | Securitized residential mortgage loans | $6,565,315 | $6,197,678 | | Residential mortgage loans | $216,547 | $220,217 | | **Total** | **$6,781,862** | **$6,417,895** | - For the six months ended June 30, 2025, the company purchased residential mortgage loans with a fair value of **$939.9 million**, a significant increase from **$708.5 million** in the same period of 2024[63](index=63&type=chunk) - The company's residential loan portfolio has a significant geographic concentration in **California (33%)**, **Florida (10%)**, and **New York (10%)** as of June 30, 2025[67](index=67&type=chunk) - Three commercial loans (Loans A, B, and C) with a combined fair value of **$42.8 million** were in default and on non-accrual status as of June 30, 2025[83](index=83&type=chunk) [Note 4. Real Estate Securities](index=17&type=section&id=Note%204.%20Real%20Estate%20Securities) This note details the company's $223.3 million real estate securities portfolio, including Non-Agency RMBS and CMBS Real Estate Securities Portfolio Summary (in thousands) | Security Type | Fair Value at June 30, 2025 | Fair Value at Dec 31, 2024 | | :--- | :--- | :--- | | Non-Agency RMBS | $149,117 | $127,579 | | Legacy WMC CMBS | $56,205 | $52,785 | | Agency RMBS Interest Only | $17,954 | $20,996 | | **Total** | **$223,276** | **$201,360** | [Note 5. Fair Value Measurements](index=18&type=section&id=Note%205.%20Fair%20Value%20Measurements) This note details fair value measurements, with most assets ($7.2 billion) and liabilities ($5.9 billion) classified as Level 3 - As of June 30, 2025, financial instruments measured at fair value totaled **$7.39 billion** in assets and **$5.94 billion** in liabilities, with the majority, including securitized residential mortgage loans and securitized debt, classified as **Level 3**, indicating reliance on unobservable inputs for valuation[95](index=95&type=chunk) Level 3 Asset/Liability Reconciliation for Six Months Ended June 30, 2025 (in thousands) | Category | Beginning Balance | Purchases/Issuances | Sales/Repayments | Net Unrealized Gain/(Loss) | Ending Balance | | :--- | :--- | :--- | :--- | :--- | :--- | | Residential Mortgage Loans | $6,416,066 | $939,621 | $(480,146) | $96,383 | $6,974,999 | | Legacy WMC Commercial Loans | $67,005 | $0 | $0 | $(2,455) | $64,883 | | Non-Agency RMBS | $115,533 | $25,963 | $(3,702) | $1,669 | $137,945 | | AG Arc | $30,778 | $0 | $0 | $0 | $32,205 | | Securitized Debt | $(5,491,967) | $(723,330) | $383,149 | $(92,032) | $(5,937,637) | [Note 6. Financing](index=24&type=section&id=Note%206.%20Financing) This note details the company's $6.88 billion financing structure, primarily non-recourse securitized debt Financing Summary as of June 30, 2025 (in thousands) | Financing Type | Carrying Value | Weighted Avg Funding Cost | | :--- | :--- | :--- | | Financing Arrangements | $843,537 | 6.20% | | Securitized debt, at fair value | $5,937,637 | 5.22% | | Senior Unsecured Notes | $96,080 | 10.61% | | **Total Financing** | **$6,877,254** | **5.41%** | - The company has financing arrangements with six counterparties, with significant exposure to **Goldman Sachs Bank USA ($137.7 million at risk)** and **BofA Securities, Inc. ($129.6 million at risk)**, representing **25.7%** and **24.2%** of stockholders' equity, respectively[141](index=141&type=chunk)[142](index=142&type=chunk) - As of June 30, 2025, the company was in compliance with all financial covenants related to its financing arrangements[145](index=145&type=chunk) [Note 8. Earnings per share](index=29&type=section&id=Note%208.%20Earnings%20per%20share) This note details basic and diluted EPS, reporting $(0.05) for Q2 2025 and $0.16 for the six months ended June 30, 2025 Earnings Per Share Calculation (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :--- | :--- | :--- | | Net Income/(Loss) Available to Common Stockholders | $(1,376) | $4,797 | | Basic weighted average common shares outstanding | 29,686 | 29,672 | | Diluted weighted average common shares outstanding | 29,686 | 29,697 | | **Basic EPS** | **$(0.05)** | **$0.16** | | **Diluted EPS** | **$(0.05)** | **$0.16** | - The company declared a common stock dividend of **$0.21 per share** for the quarter ended June 30, 2025, and **$0.20** for the quarter ended March 31, 2025, totaling **$0.41** for the six-month period[163](index=163&type=chunk) [Note 10. Related party transactions](index=32&type=section&id=Note%2010.%20Related%20party%20transactions) This note details related party transactions, including management fees and expense reimbursements to the external manager Fees to Manager (in thousands) | Fee Type | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :--- | :--- | :--- | | Management fee to affiliate | $2,301 | $4,628 | | Expense reimbursements | $1,508 | $3,807 | - The company's investment in AG Arc, which holds its interest in mortgage originator Arc Home, was carried at a fair value of **$32.2 million** as of June 30, 2025[199](index=199&type=chunk) - For the six months ended June 30, 2025, Arc Home sold residential mortgage loans with an unpaid principal balance of **$61.0 million** to the company[206](index=206&type=chunk) [Note 11. Equity](index=36&type=section&id=Note%2011.%20Equity) This note details equity structure, including common and preferred stock repurchase programs and the 2025 Equity Incentive Plan - The company has two active common stock repurchase programs with a total of **$16.5 million** remaining authorized for future repurchases as of June 30, 2025, with no repurchases made during the first six months of 2025[212](index=212&type=chunk)[213](index=213&type=chunk) - A preferred stock repurchase program with up to **$20.0 million** in authorization is in place, but no shares have been repurchased since its authorization in February 2021[214](index=214&type=chunk) - On **May 5, 2025**, the company's 2025 Equity Incentive Plan became effective, authorizing up to **800,000 new shares** of common stock for issuance, plus shares available from the prior 2020 plan[221](index=221&type=chunk) [Note 14. Subsequent Events](index=39&type=section&id=Note%2014.%20Subsequent%20Events) This note discloses subsequent events, including preferred dividends, securitizations, and increased ownership in AG Arc - On **August 1, 2025**, the company acquired an additional **21.4% interest** in AG Arc, bringing its total ownership to approximately **66.0%**, by issuing **2,027,676 restricted shares** of common stock[247](index=247&type=chunk) - In **July 2025**, the company executed two rated Non-Agency securitizations of Home Equity Loans with a combined total unpaid principal balance of **$948.3 million**, converting recourse financing to non-recourse financing[243](index=243&type=chunk)[246](index=246&type=chunk) - On **July 31, 2025**, the Board of Directors declared third quarter 2025 dividends for its Series A, B, and C preferred stock[242](index=242&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=41&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2025 financial condition, operating results, investment activities, and liquidity, highlighting key metrics [Second Quarter 2025 Executive Summary](index=44&type=section&id=Second%20Quarter%202025%20Executive%20Summary) This section provides a high-level overview of the company's financial performance and key strategic activities for Q2 2025 Q2 2025 Financial Highlights | Metric | Value | | :--- | :--- | | Book Value per share | $10.39 | | Net Income/(Loss) per diluted common share | $(0.05) | | Earnings Available for Distribution (EAD) per diluted common share | $0.18 | | GAAP Leverage Ratio | 12.8x | | Economic Leverage Ratio | 1.3x | | Dividend per common share | $0.21 | - Subsequent to quarter end, the company purchased an additional **21.4% interest** in AG Arc, increasing its ownership to approximately **66.0%**[258](index=258&type=chunk) - The company executed a rated securitization of Agency-Eligible Loans with a total unpaid principal balance of **$331.4 million** during the quarter[261](index=261&type=chunk) [Market Conditions](index=46&type=section&id=Market%20Conditions) This section analyzes the broader financial market environment, including interest rates, monetary policy, and RMBS activity - In Q2 2025, financial markets saw positive performance with rising equities and bond prices, though uncertainty persisted around inflation and monetary policy, with the **2-year U.S. Treasury yield declining by 17 bps to 3.72%** and the **10-year yield relatively flat at 4.23%**[274](index=274&type=chunk) - The Federal Reserve maintained a data-dependent approach, holding the federal funds rate steady at **4.25%-4.50%** in its July 2025 meeting, but indicated openness to rate cuts later in the year[275](index=275&type=chunk)[276](index=276&type=chunk) - Primary RMBS market activity was **$35 billion** in Q2 2025, up **6% year-over-year**, with Non-QM issuance rising **57% YoY to nearly $16 billion**, while home price growth decelerated nationally, with the S&P Case-Shiller Index up **2.3% YoY** in May 2025[278](index=278&type=chunk)[279](index=279&type=chunk) [Results of Operations](index=50&type=section&id=Results%20of%20Operations) This section provides a detailed analysis of net interest income, other income, expenses, and net income for the reporting periods - Net interest income for Q2 2025 was **$17.8 million**, an increase from **$16.4 million** in Q2 2024, driven by a larger investment portfolio and a higher weighted average yield, which offset increased interest expense[290](index=290&type=chunk)[292](index=292&type=chunk)[295](index=295&type=chunk) - The company reported a net loss available to common stockholders of **$1.4 million** in Q2 2025, compared to a net loss of **$0.7 million** in Q2 2024, primarily due to higher net realized losses and increased transaction expenses[290](index=290&type=chunk) - For the six months ended June 30, 2025, net income available to common stockholders was **$4.8 million**, a decrease from **$15.6 million** in the prior year period, mainly due to lower other income and higher expenses[323](index=323&type=chunk) [Earnings Available for Distribution](index=60&type=section&id=Earnings%20Available%20for%20Distribution) This section reconciles GAAP net income to Earnings Available for Distribution (EAD) for the three and six months ended June 30, 2025 Reconciliation of Net Income to Earnings Available for Distribution (EAD) (in thousands) | Metric | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :--- | :--- | :--- | | Net Income/(loss) available to common stockholders | $(1,376) | $4,797 | | Adjustments (Net realized/unrealized losses, transaction expenses, etc.) | $6,727 | $6,536 | | **Earnings available for distribution** | **$5,351** | **$11,333** | | **EAD per Diluted Share** | **$0.18** | **$0.38** | [Investment activities](index=62&type=section&id=Investment%20activities) This section details the company's investment portfolio, strategy, and activities, including residential and commercial investments Investment Portfolio Summary as of June 30, 2025 (in thousands) | Asset Class | Amortized Cost | Fair Value | Allocated Equity | | :--- | :--- | :--- | :--- | | Residential Investments | $7,397,253 | $7,138,182 | $419,940 | | Agency RMBS | $17,787 | $17,954 | $6,122 | | Legacy WMC Commercial Investments | $126,001 | $121,088 | $69,988 | | **Total Investment Portfolio** | **$7,541,041** | **$7,277,224** | **$496,050** | - The company's investment strategy primarily involves acquiring newly-originated residential mortgage loans and securitizing them to obtain long-term, non-recourse financing[354](index=354&type=chunk) - As of June 30, 2025, the company held retained certificates from its Non-Agency VIEs with a fair value of **$675.6 million**, of which **$472.4 million** was held to comply with Risk Retention Rules[372](index=372&type=chunk)[373](index=373&type=chunk) [Financing activities](index=67&type=section&id=Financing%20activities) This section describes the company's financing structure, including recourse and non-recourse debt, and leverage ratio Leverage Ratio Reconciliation as of June 30, 2025 (in thousands) | Metric | Amount | Ratio | | :--- | :--- | :--- | | GAAP Leverage | $6,875,160 | 12.8x | | Less: Non-recourse financing arrangements | $(5,981,082) | | | Less: Net TBA (receivable)/payable adjustment | $(194,855) | | | **Economic Leverage** | **$699,223** | **1.3x** | | Stockholders' Equity | $536,407 | | - The company utilizes a mix of recourse financing (repurchase agreements, senior unsecured notes) and non-recourse financing (securitized debt), with total recourse financing at **$896.2 million** and non-recourse financing at **$5.98 billion** as of June 30, 2025[397](index=397&type=chunk) [Liquidity and capital resources](index=70&type=section&id=Liquidity%20and%20capital%20resources) This section discusses the company's liquidity position, capital resources, and management of liquidity risk - As of June 30, 2025, the company had **$89.7 million of liquidity**, consisting of **$88.7 million in cash and cash equivalents** and **$1.0 million in unencumbered Agency RMBS**[408](index=408&type=chunk) - The company's primary liquidity risk arises from financing long-maturity assets with shorter-term borrowings and potential margin calls on pledged collateral and derivatives if asset values decline[409](index=409&type=chunk)[410](index=410&type=chunk) - For the six months ended June 30, 2025, cash and restricted cash decreased by **$38.4 million**, resulting from **$485.2 million used in investing activities**, partially offset by **$423.3 million provided by financing activities** and **$23.5 million from operating activities**[413](index=413&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=74&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details the company's market risk exposures, including interest rate, credit, and liquidity risks Interest Rate Sensitivity Analysis as of June 30, 2025 | Change in Interest Rates (bps) | Change in Fair Value as a % of GAAP Equity | Change in Fair Value as a % of Assets | % Change in Projected Net Interest Income | | :--- | :--- | :--- | :--- | | +75 | (0.7)% | (0.1)% | 1.2% | | +50 | (0.5)% | 0.0% | 0.9% | | +25 | (0.2)% | 0.0% | 0.5% | | -25 | 0.3% | 0.0% | (0.5)% | | -50 | 0.6% | 0.0% | (1.4)% | | -75 | 0.9% | 0.1% | (2.1)% | - The company is exposed to credit risk from potential borrower defaults and credit spread widening, managed through pre-acquisition due diligence and non-recourse financing[471](index=471&type=chunk) - Liquidity risk, stemming from financing long-term assets with short-term borrowings and potential margin calls, is mitigated by maintaining cash, unpledged securities, and managing counterparty relationships[465](index=465&type=chunk) [Controls and Procedures](index=77&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of June 30, 2025, with no material changes to internal control - The company's principal executive officer and principal financial officer concluded that as of **June 30, 2025**, the disclosure controls and procedures were effective to provide reasonable assurance[481](index=481&type=chunk) - There were no changes in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[482](index=482&type=chunk) PART II. OTHER INFORMATION This section provides additional information, including legal proceedings, risk factors, and other significant disclosures [Legal Proceedings](index=79&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in legal proceedings expected to materially impact its financial condition - The company is not currently party to any litigation or legal proceedings that would have a material adverse effect on its results of operations or financial condition[484](index=484&type=chunk) [Risk Factors](index=79&type=page&id=Item%201A.%20Risk%20Factors) This section directs readers to the comprehensive risk factors detailed in the company's Annual Report on Form 10-K - The report directs investors to refer to the Risk Factors section in the Annual Report on Form 10-K for the year ended **December 31, 2024** for a discussion of potential risks[485](index=485&type=chunk) [Other Information](index=79&type=section&id=Item%205.%20Other%20Information) This section discloses the acquisition of an additional 21.385% interest in AG Arc, increasing total ownership to 66.0% - On **August 1, 2025**, the company acquired an additional **21.385% interest** in AG Arc, LLC, increasing its total interest to approximately **66.0%**[489](index=489&type=chunk) - The acquisition was completed by issuing **2,027,676 restricted shares** of common stock as consideration in a private placement[489](index=489&type=chunk)

Company Performance - AG Mortgage Investment Trust (MITT) reported quarterly earnings of $0.18 per share, missing the Zacks Consensus Estimate of $0.23 per share, and down from $0.21 per share a year ago, representing an earnings surprise of -21.74% [1] - The company posted revenues of $17.75 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 11.24%, compared to year-ago revenues of $16.38 million [2] - Over the last four quarters, AG Mortgage Investment Trust has not surpassed consensus EPS or revenue estimates [2] Stock Performance - AG Mortgage Investment Trust shares have increased approximately 13.7% since the beginning of the year, outperforming the S&P 500's gain of 7.8% [3] - The current consensus EPS estimate for the coming quarter is $0.25 on $22 million in revenues, and for the current fiscal year, it is $0.94 on $83 million in revenues [7] Industry Outlook - The REIT and Equity Trust industry, to which AG Mortgage Investment Trust belongs, is currently ranked in the top 22% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry performance can significantly impact stock performance [5][8]

[Second Quarter 2025 Earnings Overview](index=1&type=section&id=Second%20Quarter%202025%20Earnings%20Overview) The company reported its second quarter 2025 financial results, highlighting management's strategic remarks and key financial and operational performance metrics [Management Remarks](index=1&type=section&id=MANAGEMENT%20REMARKS) Management highlighted strong second quarter results, including a dividend increase, modest book value decline, and a strategic acquisition of Arc Home expected to be accretive to EAD - Common dividend increased by **5%**, and book value declined by a modest **2.4%**[4](index=4&type=chunk) - Acquired an additional **21.4%** interest in Arc Home, increasing total ownership to **66.0%**[4](index=4&type=chunk)[8](index=8&type=chunk) - The Arc Home transaction is expected to be accretive to Earnings Available for Distribution (EAD) in **2026**, with minimal **~2%** dilution to book value[4](index=4&type=chunk)[8](index=8&type=chunk) [Second Quarter Financial and Operational Highlights](index=1&type=section&id=SECOND%20QUARTER%20FINANCIAL%20HIGHLIGHTS) The company reported key financial metrics including book value, economic return, EAD, and detailed its investment portfolio, financing, and liquidity positions [Key Financial Metrics](index=1&type=section&id=Key%20Financial%20Metrics) This section presents a summary of the company's core financial performance indicators for the quarter Key Financial Metrics (as of June 30, 2025) | Metric | Value (as of June 30, 2025) | | :---------------------------------------------------------------- | :-------------------------- | | Book Value per share | $10.39 | | Quarterly economic return on equity | (0.5)% | | Net Income/(Loss) Available to Common Stockholders per diluted common share | $(0.05) | | Earnings Available for Distribution ("EAD") per diluted common share | $0.18 | | Dividend per common share declared (Q2 2025) | $0.21 (5.0% increase over Q1 2025) | [Investing and Financing Highlights](index=1&type=section&id=INVESTING%20AND%20FINANCING%20HIGHLIGHTS) This section details the company's investment portfolio, financing structure, leverage ratios, and liquidity position Investing and Financing Highlights (as of June 30, 2025) | Metric | Value (as of June 30, 2025) | | :------------------------------------------ | :-------------------------- | | Investment Portfolio | $7.3 billion | | Net Interest Margin | 0.6% (includes 0.05% benefit from interest rate swaps) | | Investment in Arc Home | $32.2 million (valued at 1.00x book value) | | Total Financing | $6.9 billion | | Non-recourse financing | $6.0 billion | | Recourse financing | $0.9 billion | | GAAP Leverage Ratio | 12.8x | | Economic Leverage Ratio | 1.3x | | Total Liquidity | $89.7 million | [Acquisition of Additional Interest in AG ARC LLC](index=1&type=section&id=ACQUISITION%20OF%20ADDITIONAL%20INTEREST%20IN%20AG%20ARC%20LLC) The company increased its ownership in Arc Home, a strategic move expected to enhance future earnings and expand product offerings - On August 1, 2025, acquired an additional **21.4%** interest in Arc Home, a residential mortgage originator, from certain private funds managed by TPG Angelo Gordon[8](index=8&type=chunk) - Increased ownership in Arc Home to **66.0%** from **44.6%** by issuing approximately **2.0 million** common shares as consideration[8](index=8&type=chunk) - The acquisition is expected to enhance earnings potential as Arc Home scales and expands product offerings, be accretive to EAD in **2026**, and result in minimal **~2%** dilution to book value[8](index=8&type=chunk) [Dividends and Investor Information](index=2&type=section&id=Dividends%20and%20Investor%20Information) This section outlines the company's dividend declarations for common and preferred stock, along with details for the investor conference call [Dividend Declarations](index=2&type=section&id=Dividend%20Declarations) The company declared a second quarter common dividend of **$0.21** per share and quarterly cash dividends for its Series A, B, and C Preferred Stock Dividend Declarations | Dividend Type | Amount per Share | Declaration Date | Payable Date | Record Date | | :-------------------------------- | :--------------- | :--------------- | :----------- | :---------- | | Common Stock (Q2 2025) | $0.21 | June 17, 2025 | N/A | N/A | | Series A Preferred Stock | $0.51563 | July 31, 2025 | September 17, 2025 | August 29, 2025 | | Series B Preferred Stock | $0.50 | July 31, 2025 | September 17, 2025 | August 29, 2025 | | Series C Preferred Stock | $0.706042 | July 31, 2025 | September 17, 2025 | August 29, 2025 | [Stockholder Conference Call and Presentation](index=2&type=section&id=STOCKHOLDER%20CALL) The company hosted its second quarter earnings conference call on August 1, 2025, with presentation materials and an audio replay available online - Q2 2025 earnings conference call held on Friday, August 1, 2025, at **8:30 a.m. Eastern Time**, with Conference ID **MITTQ225**[9](index=9&type=chunk)[10](index=10&type=chunk) - Live webcast available at https://event.on24.com/wcc/r/5005699/B02EC3F7A49E21DED7559DD94BDBCD24[10](index=10&type=chunk) - An earnings presentation detailing financial results and an audio replay are available on the Company's website, www.agmit.com[11](index=11&type=chunk) [About the Company and Advisor](index=2&type=section&id=About%20the%20Company%20and%20Advisor) This section provides an overview of AG Mortgage Investment Trust, Inc. and its external advisor, TPG Angelo Gordon [About AG Mortgage Investment Trust, Inc.](index=2&type=section&id=ABOUT%20AG%20MORTGAGE%20INVESTMENT%20TRUST%2C%20INC.) AG Mortgage Investment Trust, Inc. (MITT) is a residential mortgage REIT investing in diversified U.S. residential mortgage-related assets, externally managed by AG REIT Management, LLC - AG Mortgage Investment Trust, Inc. is a residential mortgage REIT[12](index=12&type=chunk) - Focuses on investing in a diversified risk-adjusted portfolio of residential mortgage-related assets in the U.S. mortgage market[12](index=12&type=chunk) - Externally managed and advised by AG REIT Management, LLC, a subsidiary of Angelo, Gordon & Co., L.P. (TPG Angelo Gordon)[12](index=12&type=chunk) [About TPG Angelo Gordon](index=2&type=section&id=ABOUT%20TPG%20ANGELO%20GORDON) TPG Angelo Gordon, founded in 1988, is a diversified credit and real estate investing platform within TPG, managing approximately **$92 billion** across various strategies - Founded in **1988**, Angelo, Gordon & Co., L.P. ("TPG Angelo Gordon") is a diversified credit and real estate investing platform within TPG[14](index=14&type=chunk) - The platform currently manages approximately **$92 billion** across a broad range of credit and real estate strategies[14](index=14&type=chunk) [Forward-Looking Statements](index=2&type=section&id=FORWARD%20LOOKING%20STATEMENTS) This section contains cautionary forward-looking statements, subject to risks and uncertainties, with actual results potentially differing materially from expectations - The press release includes "forward-looking statements" intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of **1995**[15](index=15&type=chunk) - Forward-looking statements are based on beliefs, assumptions, and expectations of future operations and are not guarantees of future performance[15](index=15&type=chunk) - Important factors that could cause actual results to differ materially include changes in general economic or market conditions, government regulations, the Company's ability to grow its residential loan portfolio, and financing needs[15](index=15&type=chunk)[17](index=17&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=NON-GAAP%20FINANCIAL%20MEASURES) This section defines and reconciles key non-GAAP financial measures, including Earnings Available for Distribution (EAD) and Economic Leverage Ratio [Earnings Available for Distribution (EAD)](index=3&type=section&id=Earnings%20Available%20for%20Distribution) EAD is a non-GAAP measure, defined as Net Income/(loss) available to common stockholders adjusted for specific non-recurring items, totaling **$5,351 thousand** or **$0.18** per diluted share for Q2 2025 - EAD is a non-GAAP financial measure, defined as Net Income/(loss) available to common stockholders excluding specific items like unrealized/realized gains/losses, transaction-related expenses, and deferred taxes[19](index=19&type=chunk)[26](index=26&type=chunk) Reconciliation of GAAP Net Income/(loss) to EAD (Three Months Ended June 30, 2025) | Item | Amount (in thousands) | Per Diluted Share | | :------------------------------------------ | :-------------------- | :---------------- | | Net Income/(loss) available to common stockholders | $(1,376) | $(0.05) | | Add (Deduct): | | | | Net realized (gain)/loss | 3,494 | 0.12 | | Net unrealized (gain)/loss | 40 | — | | Transaction related expenses and deal related performance fees | 3,079 | 0.10 | | Equity in (earnings)/loss from affiliates | (231) | (0.01) | | EAD from equity method investments | 456 | 0.02 | | Dollar roll income/(loss) | (111) | — | | **Earnings available for distribution** | **$5,351** | **$0.18** | [Economic Leverage Ratio](index=4&type=section&id=Economic%20Leverage%20Ratio) The Economic Leverage Ratio is a non-GAAP metric adjusting GAAP leverage by excluding non-recourse financing and including net TBA positions, resulting in **1.3x** compared to **12.8x** GAAP leverage - Economic Leverage Ratio is a non-GAAP metric, defined as GAAP leverage exclusive of fully non-recourse financing arrangements, plus the net TBA position[23](index=23&type=chunk)[30](index=30&type=chunk) Reconciliation of GAAP Leverage to Economic Leverage (June 30, 2025) | Item | Leverage (in thousands) | Stockholders' Equity (in thousands) | Leverage Ratio | | :------------------------------------------ | :---------------------- | :-------------------------- | :------------- | | Securitized debt, at fair value | $5,937,637 | | | | Financing arrangements | 843,537 | | | | Senior unsecured notes | 96,080 | | | | Restricted cash posted on Financing arrangements | (2,208) | | | | Payable on unsettled trades | 114 | | | | **GAAP Leverage** | **$6,875,160** | **$536,407** | **12.8x** | | (a) Non-recourse financing arrangements | (5,981,082) | | | | Net TBA (receivable)/payable adjustment | (194,855) | | | | **Economic Leverage** | **$699,223** | **$536,407** | **1.3x** | [Footnotes](index=4&type=section&id=Footnotes) This section provides detailed definitions and explanations for key financial terms and calculations, ensuring clarity and transparency for investors - Book value is calculated using stockholders' equity less the liquidation preference of cumulative redeemable preferred stock (**$228.0 million**)[25](index=25&type=chunk) - EAD (non-GAAP) definition includes specific exclusions like unrealized/realized gains/losses, transaction expenses, and deferred taxes, and includes net interest income and other income on a yield-adjusted basis[26](index=26&type=chunk) - Investment Portfolio consists of Residential Investments, Agency RMBS, and Legacy WMC Commercial Investments, held at fair value, and includes securities owned through equity method affiliates and long TBA positions[27](index=27&type=chunk)

Core Insights - The article discusses the author's long-term investment strategy, focusing on REITs, preferred stocks, and high-yield bonds, which began in high school in 2011 [1] - The author has recently combined long stock positions with covered calls and cash secured puts, indicating a more sophisticated approach to investing [1] - The primary focus of the author's analysis on Seeking Alpha is on REITs and financials, with occasional insights on ETFs and macro-driven stock ideas [1] Investment Strategy - The investment approach is fundamentally driven, emphasizing long-term perspectives rather than short-term gains [1] - The author has developed a fascination with markets and the economy over the years, suggesting a deep understanding of market dynamics [1] Coverage Focus - The author primarily covers REITs and financial sectors, indicating a specialization that may provide in-depth insights into these areas [1] - Occasional articles on ETFs and other stocks suggest a broader market awareness and the ability to identify macroeconomic trends [1]

Core Insights - The company, Quad 7 Capital, is known for its investment strategy called BAD BEAT Investing, which has been operational for nearly 12 years and emphasizes both long and short trades [1] - The team consists of 7 analysts with diverse expertise in various fields, including business, policy, economics, and game theory [1] - The investment approach focuses on short- and medium-term investments, income generation, special situations, and momentum trades [1] Group 1 - The company has a proven track record of success, highlighted by a significant market call in February 2020 to sell everything and go short [1] - Since May 2020, the company has maintained an average position of 95% long and 5% short [1] - The investment group aims to educate investors on becoming proficient traders through a comprehensive playbook, providing in-depth research with clear entry and exit targets [1] Group 2 - Benefits of BAD BEAT Investing include understanding market dynamics, executing well-researched trade ideas weekly, and access to multiple chat rooms for discussion [2] - Members receive daily summaries of key analyst upgrades and downgrades, along with learning opportunities in basic options trading [2] - The company provides extensive trading tools to enhance the trading experience for its members [2]

Group 1 - The article discusses the preferred stock and baby bond market activity, providing both bottom-up insights on individual news and events, as well as top-down analysis of the broader market [1] - It highlights the importance of yield and risk management considerations in the Income Portfolios offered by Systematic Income [1] - The article encourages the use of Interactive Investor Tools to navigate various markets including BDC, CEF, OEF, preferred, and baby bonds [1] Group 2 - The article promotes Investor Guides related to CEFs, Preferreds, and PIMCO CEFs, indicating a focus on educational resources for investors [2] - It offers a no-risk opportunity for potential investors to sign up for a 2-week free trial, suggesting an effort to attract new clients [2]

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) Unaudited Q1 2025 financial statements report total assets at $7.32 billion, with net income available to common stockholders at $6.2 million, a decrease from Q1 2024 due to lower other income [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to $7.32 billion as of March 31, 2025, driven by securitized residential mortgage loans, with total liabilities also growing to $6.78 billion and stockholders' equity remaining stable at $543.9 million Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$7,323,220** | **$6,913,609** | | Securitized residential mortgage loans, at fair value | $6,542,243 | $6,197,678 | | Residential mortgage loans, at fair value | $269,238 | $220,217 | | Cash and cash equivalents | $115,549 | $118,662 | | **Total Liabilities** | **$6,779,350** | **$6,370,186** | | Securitized debt, at fair value | $5,836,691 | $5,491,967 | | Financing arrangements | $806,554 | $742,108 | | **Total Stockholders' Equity** | **$543,870** | **$543,423** | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 2025 net income decreased to $11.5 million, resulting in $6.2 million ($0.21 per diluted share) available to common stockholders, primarily due to a significant reduction in total other income Quarterly Operating Results (in thousands, except per share data) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 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 | | Net Income/(Loss) Available to Common Stockholders | $6,173 | $16,304 | | Diluted EPS | $0.21 | $0.55 | [Consolidated Statements of Stockholders' Equity](index=5&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) Total stockholders' equity slightly increased to $543.9 million by March 31, 2025, driven by $11.5 million net income, largely offset by $11.2 million in common and preferred dividends - In Q1 2025, the company declared a common dividend of **$0.20 per share**, an increase from the **$0.18 per share** declared in Q1 2024[18](index=18&type=chunk) Changes in Stockholders' Equity (Q1 2025, in thousands) | Description | Amount | | :--- | :--- | | Balance at January 1, 2025 | $543,423 | | Net Income/(Loss) | $11,477 | | Common dividends declared | ($5,932) | | Preferred dividends declared | ($5,306) | | **Balance at March 31, 2025** | **$543,870** | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 saw a net cash decrease of $9.4 million, with $12.0 million from operations, $314.7 million used in investing, and $293.4 million provided by financing activities Net Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash from operating activities | $11,997 | $11,972 | | Net cash used in investing activities | ($314,725) | ($248,231) | | Net cash from financing activities | $293,377 | $227,320 | | **Net change in cash** | **($9,351)** | **($8,939)** | [Notes to Consolidated Financial Statements (unaudited)](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20(unaudited)) Notes detail the company's organization, accounting policies, financial instruments, and portfolio composition, operating as a single segment, with subsequent events including a dividend and a loan default - The company is a residential mortgage REIT focused on acquiring and securitizing newly-originated non-agency residential mortgage loans, primarily sourced through its affiliate Arc Home, in which it holds a **44.6% interest**[25](index=25&type=chunk) - The company operates as a single reportable segment named 'Loans and Securities', reflecting its integrated management approach to its investment portfolio[31](index=31&type=chunk)[239](index=239&type=chunk) - Subsequent to the quarter end, a borrower defaulted on the maturity of three Legacy WMC Commercial Loans (Loan A, B, and C) on May 6, 2025, with a short-term forbearance agreement being negotiated[243](index=243&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=39&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported Q1 2025 book value of $10.65 per share and EAD of $0.20 per diluted share, increasing the common dividend to $0.20 per share, with robust investment activity including a $423.3 million securitization, and maintaining economic leverage at 1.6x and GAAP leverage at 12.4x Q1 2025 Financial Highlights | Metric | Value | | :--- | :--- | | Book Value per share | $10.65 | | Net Income per diluted common share | $0.21 | | Earnings Available for Distribution (EAD) per diluted common share | $0.20 | | GAAP Leverage Ratio | 12.4x | | Economic Leverage Ratio | 1.6x | | Common Dividend Declared | $0.20 | - The company executed a rated securitization of Agency-Eligible Loans with a total unpaid principal balance of **$423.3 million**, converting recourse financing to non-recourse, non-mark-to-market financing[256](index=256&type=chunk) - The company's investment strategy focuses on acquiring and securitizing newly-originated residential mortgage loans, sourced through its affiliate Arc Home and other third-party partners, utilizing TPG Angelo Gordon's securitization platform[258](index=258&type=chunk) - Market conditions in Q1 2025 saw wider RMBS spreads and a **14% QoQ increase** in primary RMBS market activity to **$39 billion**, with the Non-QM sector showing the sharpest growth[274](index=274&type=chunk)[275](index=275&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=67&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces interest rate, liquidity, and credit risks, managing interest rate exposure with a 1.38-year duration gap and mitigating liquidity risk with cash reserves, while a 75 bps rate rise could decrease GAAP equity by 2.8% - The company's primary market risks are identified as interest rate, liquidity, real estate, credit, prepayment, basis, and capital markets risk[425](index=425&type=chunk) - The company's total portfolio duration was **1.38 years** as of March 31, 2025, indicating its sensitivity to interest rate changes[433](index=433&type=chunk)[434](index=434&type=chunk) Interest Rate Sensitivity Analysis (as of March 31, 2025) | Change in Interest Rates (bps) | Change in Fair Value as a % of GAAP Equity | Change in Fair Value as a % of Assets | % Change in Projected Net Interest Income | | :--- | :--- | :--- | :--- | | 75 | (2.8)% | (0.2)% | 0.1% | | 50 | (1.8)% | (0.1)% | 0.2% | | 25 | (0.9)% | (0.1)% | 0.1% | | (25) | 0.9% | 0.1% | (0.1)% | | (50) | 1.7% | 0.1% | (0.3)% | | (75) | 2.5% | 0.2% | (0.5)% | [Item 4. Controls and Procedures](index=71&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, ensuring timely and accurate information reporting, with no material changes to internal control over financial reporting identified during the quarter - The company's principal executive officer and principal financial officer concluded that disclosure controls and procedures were effective as of March 31, 2025[457](index=457&type=chunk) - There were no changes in the company's internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, such controls[458](index=458&type=chunk) [PART II. OTHER INFORMATION](index=72&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=72&type=section&id=Item%201.%20Legal%20Proceedings) The company is not a party to any litigation or legal proceedings that would materially adversely affect its financial condition or results of operations - The company is not currently involved in any material legal proceedings[459](index=459&type=chunk) [Item 1A. Risk Factors](index=72&type=section&id=Item%201A.%20Risk%20Factors) No new risk factors are presented in this report, with reference made to those previously disclosed in the Annual Report on Form 10-K for 2024 and subsequent filings - The report refers readers to the Risk Factors section of the company's Annual Report on Form 10-K for the year ended December 31, 2024[460](index=460&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=72&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities were reported during the period - None[461](index=461&type=chunk) [Item 3. Defaults Upon Senior Securities](index=72&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported during the period - None[462](index=462&type=chunk) [Item 4. Mine Safety Disclosures](index=72&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - None[463](index=463&type=chunk) [Item 5. Other Information](index=72&type=section&id=Item%205.%20Other%20Information) Stockholders approved the 2025 Equity Incentive Plan and other proposals, including director elections and auditor ratification, at the Annual Meeting on May 5, 2025 - Stockholders approved the Company's 2025 Equity Incentive Plan at the Annual Meeting on May 5, 2025[464](index=464&type=chunk) - All six director nominees were elected, the appointment of Deloitte & Touche LLP was ratified, and executive compensation was approved on an advisory basis at the 2025 Annual Meeting[465](index=465&type=chunk) [Item 6. Exhibits](index=74&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including articles of incorporation, bylaws, indentures, and Sarbanes-Oxley certifications - The report includes a list of exhibits filed, such as the 2025 Equity Incentive Plan and Sarbanes-Oxley certifications[468](index=468&type=chunk)[469](index=469&type=chunk)

Core Insights - AG Mortgage Investment Trust (MITT) reported quarterly earnings of $0.20 per share, missing the Zacks Consensus Estimate of $0.24 per share, and down from $0.21 per share a year ago, representing an earnings surprise of -16.67% [1] - The company posted revenues of $18.85 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 0.80%, and up from $17.18 million year-over-year [2] - The stock has lost about 0.3% since the beginning of the year, outperforming the S&P 500's decline of -3.9% [3] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $0.27 on $20 million in revenues, and $1.06 on $82 million in revenues for the current fiscal year [7] - The estimate revisions trend for AG Mortgage Investment Trust is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The REIT and Equity Trust industry is currently in the top 37% of Zacks industries, suggesting that stocks in the top 50% of Zacks-ranked industries tend to outperform the bottom 50% by more than 2 to 1 [8]

[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** |

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for AG Mortgage Investment Trust (MITT) due to higher revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - AG Mortgage Investment Trust is expected to report quarterly earnings of $0.24 per share, reflecting a year-over-year increase of 14.3% [3]. - Revenues are projected to be $19 million, which is a 10.6% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 3.57% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for AG Mortgage Investment Trust aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the lack of recent analyst revisions makes it challenging to predict an earnings beat for AG Mortgage Investment Trust [11]. - The company has not surpassed consensus EPS estimates in the last four quarters, with a previous quarter's surprise of -5.26% [12][13]. Industry Comparison - In contrast, Redwood Trust (RWT) is expected to report earnings of $0.17 per share, a significant year-over-year increase of 112.5%, with revenues projected at $31.31 million, up 30.5% [17]. - Redwood Trust's consensus EPS estimate has been revised up by 9.6% in the last 30 days, resulting in a positive Earnings ESP of 3.85% and a Zacks Rank of 1, indicating a strong likelihood of beating the consensus [18].