Investment Securities - For the three months ended September 30, 2025, total investment securities increased to $10,511.648 million, up from $8,603.269 million[304]. - The company acquired $1,856.142 million in new investment securities during the quarter, while repayments totaled $516.156 million[304]. - The fair value of Agency RMBS and TBAs rose to $6,658.646 million, reflecting an increase of $1,718.683 million during the quarter[304]. - The company reported a total of $158.791 million in consolidated SLST investment securities as of September 30, 2025[305]. - As of September 30, 2025, the total investment securities amounted to $8.9 billion, with a fair value of $7.03 billion, reflecting an increase from $5.67 billion as of December 31, 2024[400][401]. - The carrying value of Agency RMBS and TBAs was $8.01 billion, with a fair value of $6.66 billion, showing a weighted average yield of 5.78%[400][402]. - The fair value of investment securities pledged as collateral under repurchase agreements was $6.3 billion as of September 30, 2025, compared to $3.7 billion as of December 31, 2024[402]. - The total unrealized gains on investment securities were $111.4 million, while unrealized losses amounted to $57.7 million[400][401]. Financial Performance - Net income attributable to common stockholders for Q3 2025 was $32.7 million, or $0.36 per share, with Earnings Available for Distribution (EAD) increasing 9% quarter-over-quarter to $0.24 per share, marking a 140% year-over-year improvement[311]. - The company achieved a quarterly economic return of 3.51% on GAAP book value per share and 3.41% on adjusted book value per share[311]. - The company reported a net interest income of $36,586,000 for Q3 2025, with a net interest spread of 1.50%[333]. - Total net interest income for the three months ended September 30, 2025, was $36,586, compared to $20,237 in 2024, reflecting an increase of 80.5%[342]. - The company reported a net income attributable to common stockholders of $32.7 million for the three months ended September 30, 2025, compared to $32.4 million in 2024, reflecting a slight increase[363]. - The company reported a basic earnings per common share of $0.36 for the three months ended September 30, 2025, unchanged from the same period in 2024[342]. - The total other income for the nine months ended September 30, 2025, was $71.3 million, an increase from $16.5 million in 2024[365]. Dividends and Stockholder Returns - The company declared a quarterly dividend of $0.23 per share, a 15% increase from the prior quarter, equating to a 13.2% annualized dividend yield as of September 30, 2025[311]. - The company increased its common stock dividend to $0.23 per share in September 2025[334]. - Dividends declared for the three months ended September 30, 2025, were $21,416,000, translating to $0.24 per share[366]. - The common stock repurchase program was increased to $246.0 million, with $188.2 million remaining available as of September 30, 2025[487]. - During the nine months ended September 30, 2025, the Company repurchased 231,200 shares of common stock at an average price of $6.50 per share, totaling approximately $1.5 million[487]. Loans and Financing - Residential loans at fair value decreased slightly to $2,969.048 million from $2,826.644 million[304]. - The company completed two securitizations of residential loans totaling approximately $619.2 million in net proceeds during Q3 2025[314]. - The company acquired approximately $1.8 billion of Agency investments with an average coupon of 5.27% and $525.7 million in residential loans with an average gross coupon of 8.81% during Q3 2025[333]. - The total residential loans, including those held in Consolidated SLST, amounted to $4,256,683 thousand as of September 30, 2025, up from $3,841,738 thousand as of December 31, 2024, representing a growth of 10.8%[412]. - The company had repurchase agreements with a maximum principal amount of $3,225,000,000 as of September 30, 2025, compared to $2,775,000,000 at the end of 2024, a 16.2% increase[422]. - The company had $2.5 billion in carrying value for Company-sponsored residential loan securitization CDOs as of September 30, 2025[479]. Expenses and Losses - The Company incurred general and administrative expenses of $23,349 for the three months ended September 30, 2025, compared to $11,941 in 2024, reflecting an increase of 95.5%[342]. - The net loss from real estate for the three months ended September 30, 2025, improved to $(3,878) from $(7,495) in 2024, a positive change of 48.3%[342]. - The company recognized $5.6 million in net realized losses during the three months ended September 30, 2025, primarily due to losses on foreclosed properties[345]. - The Company recognized net unrealized losses of $50.0 thousand and $132.6 thousand for the three and nine months ended September 30, 2025, respectively, on its non-Agency RMBS re-securitization[410]. - The Company recognized $50.5 million in net realized losses during the nine months ended September 30, 2025, compared to $18.5 million in 2024, primarily related to foreclosed properties[346]. Economic Indicators - The U.S. GDP grew at an annualized rate of 3.9% in Q3 2025, continuing the growth trend from Q2 2025[321]. - The unemployment rate trended up slightly to 4.3% at the end of August 2025, indicating a cooling labor market[322]. - Effective rents for professionally managed apartments fell 0.3% in Q3 2025, indicating a potential decline in rental housing fundamentals[326]. - The average interest rate for a 30-year fixed mortgage was 6.34% as of October 2, 2025, up 0.22% year-over-year, contributing to affordability challenges for home buyers[326]. - The median existing-home sales price in August 2025 was $422,600, up 2.0% from $414,200 in August 2024, marking 26 consecutive months of year-over-year price increases[326]. Strategic Initiatives - The company is focused on reallocating capital away from joint venture equity investments in multi-family properties to targeted assets[306]. - The company executed a strategic repositioning by disposing of certain joint venture equity investments and acquiring assets to expand interest income levels, including Agency RMBS and business purpose loans[382]. - The company plans to maintain a solid position in unrestricted cash while pursuing investments in less price-sensitive assets like Agency RMBS[461]. - The Company intends to focus on longer-term financing arrangements to reduce exposure to fluctuations in collateral repricing[462].

Financial Performance - Net income attributable to common stockholders for Q3 2025 was $32,702,000, with earnings per share of $0.36[3] - The net income attributable to the Company's common stockholders for the three months ended September 30, 2025, was $32,702,000, while for the nine months it was $59,501,000[13] - The company reported a net loss attributable to non-controlling interests of $5,035,000 for the three months and $14,231,000 for the nine months ended September 30, 2025[13] - The company reported cumulative depreciation expense on real estate of $26,357 thousand as of September 30, 2025[48] - The company recorded unrealized gains of $(54,852) thousand for the three months ended September 30, 2025[42] Interest Income and Expenses - Interest income for the quarter reached $160,633,000, while interest expense was $124,047,000, resulting in net interest income of $36,586,000[3] - For the three months ended September 30, 2025, the total net interest income was $36,586,000, with a net loss from real estate of $(3,878,000)[13] - For the nine months ended September 30, 2025, the total net interest income was $106,131,000, with a net loss from real estate of $(9,126,000)[13] - Net interest income for the three months ended September 30, 2025, was $36,586 thousand, a 80.5% increase from $20,237 thousand in the same period of 2024[26] - Interest income rose to $160,633 thousand for the three months ended September 30, 2025, up 48.3% from $108,361 thousand in the same period of 2024[26] Assets and Liabilities - Total assets increased to $12,401,862 thousand as of September 30, 2025, up from $9,217,282 thousand as of December 31, 2024, representing a growth of 34.5%[24] - Total liabilities increased to $10,997,084 thousand as of September 30, 2025, compared to $7,806,148 thousand as of December 31, 2024, marking a rise of 40.3%[24] - The company's total assets as of September 30, 2025, amounted to $490,545 thousand, with total liabilities of $373,388 thousand[52] Dividends and Shareholder Returns - The quarterly dividend was increased to $0.23 per common share, marking a significant increase in shareholder returns[6] - Dividends declared per common share increased to $0.23 from $0.20 in the previous quarter[28] - The Board of Directors considers EAD among other factors when determining dividends on common stock, but it should not be viewed as a guarantee of dividend payments[41] Strategic Initiatives - The company acquired approximately $1.8 billion in Agency investments with an average coupon of 5.27% and $525.7 million in residential loans with an average gross coupon of 8.81%[4] - The strategic repositioning included the acquisition of assets that expand interest income levels, such as Agency RMBS and business purpose loans[38] - Adamas Trust focuses on generating durable earnings and long-term value through disciplined portfolio management[16] - The Company is internally managed and strategically deploys capital across complementary businesses[16] Conference Call and Presentations - The Company plans to host a conference call on October 30, 2025, to discuss its financial results[14] - A supplemental financial presentation will accompany the conference call, available on the Company's website[15] Economic Returns - Economic return on book value was reported at 3.51%, while the economic return on adjusted book value was 3.41%[3] - The company’s recourse leverage ratio stood at 5.0x, indicating a stable capital structure[9] Earnings Available for Distribution (EAD) - Earnings Available for Distribution (EAD) is now presented as a supplemental non-GAAP financial measure, replacing the previously used undepreciated earnings[37] - EAD is defined as GAAP net income excluding various non-recurring and non-cash items, providing a clearer indication of the company's income-generating capacity[39] - The company aims to provide additional transparency into operating performance through the EAD measure, facilitating comparisons to industry peers[40] - Earnings available for distribution (EAD) attributable to common stockholders was $21,991 thousand for the three months ended September 30, 2025, an increase from $20,024 thousand in the previous quarter[42]

Investment Portfolio - As of June 30, 2025, the total investment portfolio amounted to $8,603,269,000, reflecting an increase of $338,604,000 from the previous quarter[271]. - The company acquired $914,732,000 in new investments during the quarter, while repayments totaled $558,534,000[271]. - The total investment securities available for sale and TBAs reached $5,119,765,000, an increase from $4,646,812,000, marking a growth of approximately 10.1%[271]. - As of June 30, 2025, the total investment portfolio carrying value was $8,609,825, an increase from $7,392,338 as of December 31, 2024, representing a growth of approximately 16.5%[308][309]. - The company acquired approximately $503.7 million of Agency investments with an average coupon of 5.29% during the second quarter[305]. - The company reported a fair value change of $12,977,000 in its total investment portfolio during the quarter[271]. Residential Loans - Residential loans decreased to $2,826,644,000, down from $2,954,018,000, representing a reduction of approximately 4.3%[271]. - The company’s residential loans totaled $4,026,027 thousand as of June 30, 2025, compared to $3,841,738 thousand as of December 31, 2024, indicating an increase of 4.8%[365]. - The total unpaid principal balance of acquired residential loans was $2,918,904,000, with a fair value of $2,826,644,000[367]. - The company purchased approximately $78.0 million of residential loans from Constructive during the three months ended June 30, 2025, and $228.7 million during the six months ended June 30, 2025[370]. - The company completed a securitization of residential loans, resulting in approximately $345.9 million in net proceeds after deducting expenses[305]. Financial Performance - The company generated net income attributable to common stockholders of $0.30 per share and earnings available for distribution of $0.42 per share for the first half of 2025, indicating continued momentum in portfolio growth and income generation[277]. - In Q2 2025, the company reported a net loss attributable to common stockholders of $3.486 million, while for the first half of 2025, net income was $26.799 million[301]. - Interest income for the three months ended June 30, 2025, was $140,901, up 55.3% from $90,775 in the same period of 2024[313]. - Net interest income for the six months ended June 30, 2025, was $69,545, an increase of 88.5% compared to $36,907 for the same period in 2024[313]. - The Company reported a net income attributable to the Company of $8,546 for the three months ended June 30, 2025, compared to a net loss of $(15,589) in the same period of 2024, indicating a turnaround of $24,135[313]. Leverage and Debt - As of June 30, 2025, the company's Recourse Leverage Ratio and Portfolio Recourse Leverage Ratio increased to 3.8x and 3.6x, respectively, from 3.0x and 2.9x as of December 31, 2024, primarily due to financing of highly liquid Agency RMBS[281]. - The company completed the issuance of $82.5 million of 9.125% Senior Notes due 2030 in January 2025, and $90.0 million of 9.875% Senior Notes due 2030 in July 2025, with net proceeds predominantly used to acquire Agency RMBS and targeted assets[282]. - The company anticipates a gradual increase in leverage as it scales its investment portfolio while remaining committed to prudent liability management[281]. - The company had $4.6 billion outstanding under repurchase agreements as of June 30, 2025, with a weighted average interest rate of 4.49%[385][386]. Economic Environment - The U.S. economy grew at an annualized rate of 3.0% in Q2 2025, compared to a 0.5% decrease in Q1 2025, while inflation remains persistently above the Federal Reserve's target of 2%[287]. - The U.S. unemployment rate was 4.1% at the end of June 2025, down from 4.2% at the end of March 2025, with average hourly earnings rising 3.7% year-over-year[288]. - The probability of a recession in the next twelve months was reported at 33% in July 2025, down from 45% in April 2025, reflecting improved GDP forecasts despite ongoing trade uncertainty[290]. Strategic Repositioning - The company is repositioning its business by opportunistically disposing of joint venture equity investments in multi-family properties[271]. - The company continues to execute its strategic repositioning, including the wind-down of multi-family joint venture equity investments, reducing exposure to $17.4 million as of June 30, 2025[279]. - The company executed a strategic repositioning by disposing of certain joint venture equity investments and acquiring assets to expand interest income levels[346]. Stockholder Returns - The company intends to make distributions to stockholders to comply with REIT status requirements and minimize corporate income tax[456]. - The company repurchased 231,200 shares of its common stock for a total cost of approximately $1.5 million, representing an average repurchase price of $6.50 per common share during the three and six months ended June 30, 2025[453]. - The common stock repurchase program was upsized to $246.0 million in March 2023, with an expiration date of March 31, 2026[453]. Other Financial Metrics - The yield on average interest-earning assets remained stable at 6.48% for both the three and six months ended June 30, 2025[301]. - The average coupon rate for the loans as of June 30, 2025, was 6.98% for business purpose rental loans and 10.48% for business purpose bridge loans[367]. - The average financing cost decreased to 4.98% in Q2 2025 from 5.13% in Q2 2024, primarily due to improved financing terms[337][338].

Financial Performance - Net loss attributable to common stockholders for Q2 2025 was $3,486,000, resulting in a loss per share of $0.04[3] - Earnings available for distribution were $20,024,000, translating to $0.22 per common share[3] - The company reported a net income attributable to the company of $8,546,000 for the three months ended June 30, 2025, compared to a net loss of $(15,589,000) for the same period in 2024[26] - Basic loss per common share for the three months ended June 30, 2025, was $(0.04), compared to $(0.29) for the same period in 2024[28] - Total net loss from real estate for the three months ended June 30, 2025, was $(3,014,000), an improvement from $(13,106,000) in the same period of 2024[26] Income and Expenses - Interest income for the quarter was $140,901,000, while interest expense was $104,454,000, leading to a net interest income of $36,447,000[3] - For the three months ended June 30, 2025, net interest income increased to $36,447,000 from $19,044,000 for the same period in 2024, representing an increase of 91.6%[26] - Total general, administrative, and operating expenses decreased to $19,890,000 for the three months ended June 30, 2025, from $23,599,000 in the same period of 2024, a reduction of 15.5%[28] - Total other (loss) income for the three months ended June 30, 2025, was $(9,264,000), compared to $(6,080,000) for the same period in 2024, indicating a decline in performance[28] Assets and Liabilities - Total assets increased to $10,552,332 thousand as of June 30, 2025, up from $9,217,282 thousand as of December 31, 2024, representing a growth of approximately 14.5%[24] - Total liabilities grew to $9,155,677 thousand as of June 30, 2025, up from $7,806,148 thousand, indicating an increase of around 17.3%[24] - The company's accumulated deficit stood at $(1,441,088) thousand as of June 30, 2025, compared to $(1,430,675) thousand at the end of 2024, showing a slight increase in the deficit[24] - The equity of the company's stockholders decreased to $1,381,203 thousand from $1,394,720 thousand, a decline of about 1.0%[24] Investment Activities - The company acquired approximately $503.7 million in Agency investments and $280.2 million in residential loans during the quarter[5] - The acquisition of Constructive Loans, LLC for approximately $38.4 million is expected to enhance the company's position in residential business purpose lending[6][7] - The total investment portfolio carrying value as of June 30, 2025, was $8,609,825,000[8] Interest Metrics - The yield on average interest-earning assets was 6.48%, with a net interest spread of 1.50%[3][10] - The yield on average interest-earning assets for the three months ended June 30, 2025, was 6.48%, slightly up from 6.46% in the same period of 2024[28] Strategic Repositioning - The company executed a strategic repositioning by disposing of certain joint venture equity investments and acquiring assets to expand interest income levels[38] - The company has classified certain joint venture equity investments as held for sale as of June 30, 2025, indicating a strategic repositioning of its business[50] Dividends and Non-GAAP Measures - The company declared dividends of $0.20 per common share for the three months ended June 30, 2025, consistent with the previous quarter[28] - Earnings Available for Distribution (EAD) is now presented as a non-GAAP financial measure, replacing the previously used undepreciated earnings[37] - EAD is defined as GAAP net income excluding various non-recurring and non-cash items, providing a clearer indication of the company's income-generating capacity[39] - The Board of Directors considers EAD among other factors when determining dividends, but it does not guarantee dividend payments[41] - The company emphasizes that EAD should not be considered a substitute for GAAP net income and may not be comparable to similar measures from other companies[40]

PART I. Financial Information [Item 1. Condensed Consolidated Financial Statements](index=5&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) New York Mortgage Trust reported a net income of $37.065 million in Q1 2025, reversing an $80.059 million loss in Q1 2024, and grew total assets to $10.004 billion Condensed Consolidated Balance Sheet Summary (in billions) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$10.004** | **$9.217** | | Residential loans, at fair value | $3.913 | $3.842 | | Investment securities available for sale, at fair value | $4.647 | $3.829 | | **Total Liabilities** | **$8.586** | **$7.806** | | Repurchase agreements | $4.486 | $4.012 | | Collateralized debt obligations | $3.187 | $2.978 | | **Total Equity** | **$1.405** | **$1.399** | Condensed Consolidated Statements of Operations Summary (in millions, except per share data) | Account | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Total net interest income | $33.098 | $17.863 | | Total other income (loss) | $31.952 | $(57.323) | | **Net Income (Loss)** | **$37.065** | **$(80.059)** | | Net Income (Loss) Attributable to Company's Common Stockholders | $30.285 | $(68.340) | | **Diluted Earnings (Loss) per Common Share** | **$0.33** | **$(0.75)** | Condensed Consolidated Statements of Cash Flows Summary (in millions) | Cash Flow Category | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $25.819 | $(13.130) | | Net cash used in investing activities | $(794.225) | $(253.984) | | Net cash provided by financing activities | $713.783 | $327.203 | | **Net (Decrease) Increase in Cash** | **$(54.623)** | **$60.089** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=79&type=section&id=Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported strong portfolio growth with $1.9 billion in Q1 2025 asset acquisitions, driving a 55% interest income increase and $0.33 net income per share - The company acquired approximately **$1.9 billion** of assets during Q1 2025, following **$4.1 billion** in acquisitions for the full year 2024, leading to a **55% increase in interest income** for Q1 2025 compared to Q1 2024[247](index=247&type=chunk) Q1 2025 Key Performance Metrics | Metric | Q1 2025 | | :--- | :--- | | Net income per share (basic) | $0.33 | | Earnings available for distribution per share (non-GAAP) | $0.20 | | Book value per common share | $9.37 | | Adjusted book value per common share (non-GAAP) | $10.43 | | Economic return on book value | 3.13% | | Dividends per common share | $0.20 | - The company is strategically repositioning its business by opportunistically selling its joint venture equity investments in multi-family properties and reallocating capital to targeted assets like residential loans and Agency RMBS[248](index=248&type=chunk)[249](index=249&type=chunk) - Recourse Leverage Ratio increased to **3.4x** as of March 31, 2025, up from **3.0x** at year-end 2024, primarily due to financing highly liquid Agency RMBS, with **38% of debt** having no exposure to mark-to-market margin calls[250](index=250&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=132&type=section&id=Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company actively manages market risks, with a 100 basis point interest rate increase estimated to decrease annualized adjusted net interest income by $44.935 million and portfolio fair value by 2.45% Interest Rate Sensitivity on Annualized Adjusted Net Interest Income (as of March 31, 2025, in millions) | Changes in Interest Rates (bps) | Changes in Adjusted Net Interest Income | | :--- | :--- | | +200 | $(90.470) | | +100 | $(44.935) | | -100 | $45.231 | | -200 | $90.472 | Interest Rate Sensitivity on Portfolio Fair Value (as of March 31, 2025, in millions) | Changes in Interest Rates (bps) | Changes in Fair Value | Percentage Change in Portfolio Fair Value | | :--- | :--- | :--- | | +200 | $(229.484) | (3.60)% | | +100 | $(156.225) | (2.45)% | | -100 | $142.826 | 2.24% | | -200 | $193.040 | 3.03% | - The primary liquidity risk arises from financing long-maturity assets with shorter-term borrowings, creating exposure to margin calls, which is managed by holding available cash, unencumbered securities, and utilizing longer-term financing like securitizations[436](index=436&type=chunk)[438](index=438&type=chunk) - Credit risk is managed through a pre-acquisition due diligence process, factoring projected losses into purchase prices, and using credit default swaps, though recent inflation and trade policy uncertainty may increase this risk[443](index=443&type=chunk)[444](index=444&type=chunk)[445](index=445&type=chunk) [Controls and Procedures](index=138&type=section&id=Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes in internal control over financial reporting - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[458](index=458&type=chunk) - No changes occurred in the company's internal control over financial reporting during the first quarter of 2025 that have materially affected, or are reasonably likely to materially affect, these controls[459](index=459&type=chunk) PART II. OTHER INFORMATION [Item 1A. Risk Factors](index=139&type=section&id=Item%201A.%20Risk%20Factors) A new risk factor was added addressing the potential negative impact of global trade disruptions, trade barriers, and frictions on the company's business and financial results - A new risk factor was added to address the potential negative impact of global trade disruptions, trade barriers (tariffs), and trade frictions on the company's business and financial results[461](index=461&type=chunk)[462](index=462&type=chunk)[463](index=463&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=140&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase common or preferred stock in Q1 2025, with $189.7 million and $97.6 million remaining available under repurchase programs expiring March 31, 2026 - No shares of common stock were repurchased in Q1 2025. As of March 31, 2025, **$189.7 million** remains available under the current repurchase program, which expires March 31, 2026[466](index=466&type=chunk) - No shares of preferred stock were repurchased in Q1 2025. As of March 31, 2025, **$97.6 million** remains available under the current repurchase program, which expires March 31, 2026[468](index=468&type=chunk) [Item 6. Exhibits](index=141&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate documents, debt indentures, and required CEO/CFO certifications and interactive data files

Financial Performance - Net income attributable to common stockholders for Q1 2025 was $30,285,000, with earnings per share of $0.33[3] - The company reported a net income attributable to common stockholders of $30,285 thousand for the three months ended March 31, 2025, compared to a net loss of $68,340 thousand for the same period in 2024[28] - Net income attributable to the Company was $42.155 million, a significant recovery from a net loss of $31.389 million in the previous quarter[30] - GAAP net income attributable to common stockholders for Q1 2025 was $30.285 million, compared to a loss of $41.828 million in Q4 2024[44] Interest Income and Expenses - Interest income for the quarter was $129,734,000, while interest expense totaled $96,636,000, resulting in net interest income of $33,098,000[3] - Interest income rose to $129,734 thousand for the three months ended March 31, 2025, compared to $83,892 thousand in the prior year, marking an increase of 54.7%[28] - Interest income for the three months ended March 31, 2025, was $129.734 million, an increase from $118.253 million in the previous quarter[30] - The net interest benefit from interest rate swaps was $5,840 in Q4 2024, compared to $8,453 in Q3 2024, indicating a decrease of approximately 30.5%[37] Net Interest Income - Net interest income for the three months ended March 31, 2025, was $33,098 thousand, compared to $17,863 thousand for the same period in 2024, reflecting an increase of 85.1%[28] - Total net interest income rose to $33.098 million, compared to $26.711 million in the prior quarter, reflecting a growth of approximately 24.5%[30] - Adjusted net interest income for the three months ended March 31, 2025, was $36.210 million, up from $33.098 million in the previous quarter[36] - GAAP total net interest income for Q4 2024 was $26,711, a decrease from $20,237 in Q3 2024, reflecting a decline of approximately 19.5%[37] Asset and Liability Management - Total assets increased to $10,004,055 thousand as of March 31, 2025, up from $9,217,282 thousand as of December 31, 2024, representing an increase of approximately 8.5%[26] - Total liabilities increased to $8,585,743 thousand as of March 31, 2025, from $7,806,148 thousand as of December 31, 2024, an increase of approximately 9.9%[26] - The total investment portfolio carrying value was $8,270,581,000 as of March 31, 2025[11] - The company reported a Company Recourse Leverage Ratio of 3.4x and a Portfolio Recourse Leverage Ratio of 3.2x[12] Shareholder Returns and Dividends - The adjusted book value per common share at the end of the period was $10.43, with an economic return on adjusted book value of 2.71%[3] - The company repurchased 231,200 shares of common stock for a total cost of approximately $1.5 million, averaging $6.50 per share[7] - Dividends declared per common share remained stable at $0.20, consistent with the previous quarter[30] - Preferred stock dividends amounted to $11,870 thousand for the three months ended March 31, 2025, compared to $10,439 thousand for the same period in 2024[28] Strategic Initiatives - The company completed the issuance of $82.5 million in Senior Notes due 2030, with net proceeds of approximately $79.3 million[8] - Two securitizations of residential loans generated approximately $326.3 million in net proceeds after expenses[8] - The strategic repositioning included the acquisition of assets such as Agency RMBS and business purpose loans, aimed at expanding interest income levels[40] - The company is repositioning its business by opportunistically disposing of joint venture equity investments in multi-family properties[52] Unrealized Gains and Losses - The company reported unrealized gains of $118,203 thousand for the three months ended March 31, 2025, compared to unrealized losses of $(39,390) thousand in the same period of 2024[28] - The company recorded unrealized gains (losses) of $(118.203) million in Q1 2025, compared to $131.576 million in Q4 2024[44] Other Financial Metrics - The yield on average interest earning assets was 6.47%, with a net interest spread of 1.32%[3] - The yield on average interest-earning assets was 6.47%, slightly down from 6.57% in the previous quarter[30] - The net interest spread decreased to 1.32%, compared to 1.37% in the prior quarter[30] - The cumulative depreciation expense on real estate was $22.989 million for Q1 2025, compared to $20.837 million for Q4 2024[50]

Real Estate Investments - As of December 31, 2024, the company owned 526 single-family rental properties, primarily located in Illinois and Maryland[30]. - The company has reduced exposure in its multi-family investments to $19.5 million over two properties after disposing of investments in 15 multi-family properties, generating net gains of approximately $16.0 million[41]. - The company anticipates allocating less capital to multi-family investments going forward, focusing on preferred equity investments and mezzanine loans[32]. - The company has entered into a joint venture owning 10 multi-family properties, holding approximately 27% common equity interest and $139.4 million in preferred equity interests as of December 31, 2024[40]. - The company may consolidate certain multi-family joint venture equity investments and preferred equity investments into its consolidated financial statements in accordance with GAAP[52]. Financial Performance - As of December 31, 2024, the company had approximately $9.2 billion in total assets, an increase from approximately $7.4 billion as of December 31, 2023[384]. - The company's acquired residential loans totaled $3.84 billion as of December 31, 2024, compared to $3.08 billion as of December 31, 2023, reflecting a growth of 24.6%[385]. - The company reported a weighted average loan-to-value (LTV) of 54% for its re-performing residential loan strategy as of December 31, 2024, compared to 60% in 2023[387]. - The company generated net cash flows from operating activities of $14.1 million for the year ended December 31, 2024, despite a decrease in cash and cash equivalents by $1.6 million[449]. - Net cash flows used in investing activities totaled $2.2 billion, primarily due to purchases of investment securities and residential loans[450]. Leverage and Debt Management - The company's maximum leverage ratios are set at 15:1 for liquid Agency securities, between 4:1 and 6:1 for illiquid assets, and 8:1 for residential loans, with a target total debt leverage ratio not exceeding 4:1[46]. - As of December 31, 2024, the company's recourse leverage ratio was approximately 3.0 to 1, and the portfolio recourse leverage ratio was approximately 2.9 to 1[48]. - The company employs leverage through repurchase agreements, with terms ranging from 30 days to 24 months, linked to the Secured Overnight Funding Rate (SOFR)[49]. - The company maintains a portfolio recourse leverage ratio of 2.9x as of December 31, 2024, with 62% of its debt subject to mark-to-market margin calls[444]. - The company had $3.5 billion outstanding under repurchase agreements, with a weighted average interest rate of 4.84%[406][407]. Equity and Stockholder Information - As of December 31, 2024, the company's stockholders' equity decreased to $1.39 billion from $1.58 billion in 2023, with an accumulated deficit of $1.43 billion[442]. - During the year ended December 31, 2024, the company repurchased 587,347 shares of common stock for approximately $3.5 million, averaging $5.95 per share[468]. - As of December 31, 2024, $97.6 million remained available for the repurchase of shares of preferred stock under the approved program[467]. - The company intends to make distributions to stockholders to maintain REIT status and minimize corporate income tax obligations[471]. Risk Management - The company utilizes interest rate swaps to hedge variable cash flows associated with its variable-rate borrowings[56]. - The company may utilize model-based risk analysis to project asset price and cash flow sensitivities over various interest rates and market scenarios[59]. - The company has obligations to purchase ownership interests from third-party investors in a joint venture, subject to certain conditions[476]. Workforce and Diversity - As of December 31, 2024, the company had 70 full-time employees across its offices in New York, Charlotte, and Woodland Hills[62]. - Women comprised 29% of the total workforce, while 33% of employees self-identified as ethnically diverse as of December 31, 2024[63]. Investment Securities - The investment securities portfolio increased in carrying value as of December 31, 2024, primarily due to purchases of Agency RMBS, non-Agency RMBS, and U.S. Treasury securities[401]. - As of December 31, 2024, the total investment securities amounted to $5.67 billion, with an amortized cost of $4.08 billion, resulting in unrealized losses of $130.1 million[402]. - The total fair value of Agency RMBS was $3.14 billion, with total unrealized losses of $39.08 million[402]. - The total fair value of Non-Agency RMBS was $69.69 million, with total unrealized losses of $2.61 million[402]. Future Outlook - The company plans to continue opportunistically disposing of assets to pursue investments in the residential housing sector, focusing on acquiring assets with less price sensitivity to credit deterioration[445]. - The company expects to roll outstanding amounts under its repurchase agreements into new agreements or repay them prior to or at maturity[406].

Financial Performance - Net loss attributable to common stockholders for Q4 2024 was $41.8 million, or $0.46 per share, and for the full year 2024, it was $103.8 million, or $1.14 per share[3]. - Economic return on book value for the full year 2024 was -10.88%[3]. - Dividends per common share for the full year 2024 were $0.80[3]. - Net interest income for Q4 2024 was $26,711,000, an increase of 59% compared to $16,800,000 in Q4 2023[27]. - Total net loss from real estate for Q4 2024 was $(5,871,000), a slight improvement from $(6,807,000) in Q4 2023[27]. - Total other (loss) income for Q4 2024 was $(31,710,000), compared to a gain of $40,685,000 in Q4 2023[27]. - General, administrative, and operating expenses increased to $20,929,000 in Q4 2024 from $17,813,000 in Q4 2023[27]. - Net loss attributable to common stockholders for Q4 2024 was $(41,828,000), compared to a profit of $31,465,000 in Q4 2023[29]. - Basic and diluted loss per common share for Q4 2024 was $(0.46), down from earnings of $0.35 in Q4 2023[29]. Asset and Liability Growth - Total assets increased to $9,217,282 thousand as of December 31, 2024, up from $7,401,328 thousand in 2023, representing a growth of approximately 24.5%[25]. - Total liabilities grew to $7,806,148 thousand in 2024, up from $5,773,202 thousand in 2023, indicating an increase of around 35.2%[25]. - Repurchase agreements surged to $4,012,225 thousand in 2024, compared to $2,471,113 thousand in 2023, which is an increase of approximately 62.3%[25]. - The company's accumulated deficit increased to $(1,430,675) thousand in 2024 from $(1,253,817) thousand in 2023, reflecting a deterioration of about 14.1%[25]. - Cash and cash equivalents decreased to $167,422 thousand in 2024 from $187,107 thousand in 2023, a decline of approximately 10.5%[25]. Investment Portfolio - The company's portfolio grew by $2.2 billion, or 44%, primarily through acquisitions in liquid agency bond markets and higher-spread bridge loan markets[9]. - Total investment portfolio carrying value at December 31, 2024, was $7.39 billion[10]. - Residential loans at fair value rose to $3,841,738 thousand in 2024, compared to $3,084,303 thousand in 2023, marking an increase of about 24.6%[25]. - Investment securities available for sale at fair value increased significantly to $3,828,544 thousand in 2024 from $2,013,817 thousand in 2023, reflecting an increase of approximately 90%[25]. Stock Repurchase and Dividends - The company repurchased 587,347 shares of common stock for approximately $3.5 million at an average repurchase price of $5.95 per share[8]. - The company has $189.7 million remaining for common stock repurchase and $97.6 million for preferred stock repurchase as of February 2025[8]. - Preferred stock dividends remained consistent at approximately $10,439,000 for both Q4 2024 and Q4 2023[29]. Future Plans and Reporting - The company plans to file its Annual Report on Form 10-K for the year ended December 31, 2024, with the SEC on or about February 21, 2025[16]. - The conference call to discuss financial results is scheduled for February 20, 2025, at 9:00 a.m. Eastern Time[15]. Management and Strategy - The company is internally managed and focuses on acquiring, investing in, financing, and managing primarily mortgage-related residential assets[17]. - The company aims to provide investors with a clearer understanding of its financial performance through non-GAAP measures[34]. - The company has classified certain joint venture equity investments as held for sale as of December 31, 2024, indicating a strategic repositioning of its business[47]. Book Value and Adjustments - As of December 31, 2024, the company's GAAP book value is $840.610 million, down from $1,025.502 million in December 2023, reflecting a decrease of approximately 18%[45]. - The adjusted book value as of December 31, 2024, is $937.361 million, compared to $1,147.533 million in December 2023, indicating a decline of about 18.3%[45]. - The adjusted book value per common share is $10.35 as of December 31, 2024, down from $12.66 in December 2023, reflecting a decrease of approximately 18.3%[45]. - The cumulative adjustment of redeemable non-controlling interest to estimated redemption value is $40.675 million as of December 31, 2024, up from $30.062 million in December 2023[45].

Investment Portfolio - As of September 30, 2024, the total investment portfolio amounted to $6,862.8 million, reflecting an increase of $1,361.9 million from the previous quarter[246]. - The investment portfolio increased by approximately $3.1 billion from December 31, 2022, to September 30, 2024, with adjusted interest income rising over 70% compared to the same period last year[251]. - The total investment securities available for sale reached $3,385.3 million, with a net increase of $736.0 million during the quarter[246]. - The company continues to expand its investment securities and residential loan portfolios despite prepayments and sales of joint venture equity ownership interests[246]. - The company is focused on acquiring, investing in, financing, and managing primarily mortgage-related single-family and multi-family residential assets[249]. Residential Loans - The residential loans portfolio increased to $2,768.6 million, with acquisitions of $624.2 million and repayments of $267.8 million during the quarter[246]. - As of September 30, 2024, the total residential loans amounted to $3,777,144 thousand, an increase of 22.5% from $3,084,303 thousand on December 31, 2023[334]. - The company acquired $30.2 million and $137.6 million of residential loans during the three and nine months ended September 30, 2024, respectively, compared to $15.3 million and $55.2 million during the same periods in 2023[339]. - The total number of acquired residential loans increased to 10,973 as of September 30, 2024, up from 10,321 as of December 31, 2023, reflecting a growth of 6.3%[336]. - The weighted average FICO score at purchase improved to 769 as of September 30, 2024, compared to 701 on December 31, 2023[342]. Financial Performance - For the three months ended September 30, 2024, the net income attributable to the Company's common stockholders was $32,410,000, compared to a net loss of $61,957,000 for the nine months ended September 30, 2024[271]. - The company reported a net income attributable to common stockholders of $32,410 for the three months ended September 30, 2024, compared to a net loss of $94,819 in the same period of 2023, a change of $127,229[281]. - The economic return on book value for the third quarter of 2024 was 3.51%, while the economic return on adjusted book value was 0.45%[271]. - The company reported a net cash increase of $1.4 million for the nine months ended September 30, 2024[396]. - The company’s accumulated deficit increased to $1,371.1 million as of September 30, 2024, compared to $1,253.8 million at the end of 2023[390]. Interest Rates and Financing - The Federal Reserve cut the target range for the federal funds rate by 50 basis points in September 2024, marking the first cut since March 2020[261]. - The yield on average interest-earning assets for the third quarter of 2024 was 6.69%, an increase from 6.52% for the nine months ended September 30, 2024[271]. - The average financing cost for Q3 2024 was 5.37%, compared to 5.13% in Q3 2023, showing a slight increase in financing expenses[310][311]. - Interest rate changes could significantly impact the company's annualized adjusted net interest income, with a +200 basis points change resulting in a decrease of $72,912 thousand and a -200 basis points change resulting in an increase of $72,808 thousand[428]. - The company utilizes interest rate caps, swaps, and other financial instruments to manage interest rate risk and optimize earnings potential[426]. Asset Management - The company expects to continue opportunistically disposing of assets to pursue investments in the residential housing sector[255]. - The company remains focused on acquiring assets with less price sensitivity to credit deterioration, such as Agency RMBS[251]. - The company actively manages its portfolio and continuously adjusts the size and composition of its asset and derivative hedge portfolios to mitigate interest rate risk[428]. - The company has commitments to purchase redeemable non-controlling interests from third-party investors in a joint venture, subject to certain conditions[420]. - The company reported a net investment in Consolidated SLST and other residential loan securitizations of $158.8 million and $296.2 million, respectively, as of September 30, 2024[347]. Equity and Dividends - The company intends to make distributions to stockholders to maintain REIT status and minimize corporate income tax[417]. - Dividends per common share for the third quarter of 2024 were $0.20, with a total of $0.60 for the nine months ended September 30, 2024[271]. - The GAAP book value per common share increased to $9.83 as of September 30, 2024, from $9.69 at the beginning of the period[304]. - The adjusted book value per common share as of September 30, 2024, was $10.87, down from $12.66 as of December 31, 2023, reflecting a decrease of 14.1%[328]. - The company repurchased 587,347 shares of its common stock for a total cost of approximately $3.5 million during the nine months ended September 30, 2024[414]. Market Conditions - The U.S. GDP grew by 2.8% in the third quarter of 2024, marking ten consecutive quarters of growth[259]. - Home prices increased by 5.9% for the 20-City Composite over July 2024, while existing home sales in August 2024 were down 4.2% year-over-year[263]. - Multi-family home starts averaged a seasonally adjusted annual rate of 341,667 for the three months ended September 30, 2024, down from 459,417 for the year ended December 31, 2023[264]. - The average occupancy rate across 15 multi-family properties was 92.6%, with an average rent per unit of $1,428 and a loan-to-value (LTV) ratio of 80.7%[376]. - The company faces liquidity risk primarily from financing long-maturity assets with shorter-term financings, necessitating daily management and forecasting of liquidity needs[431].

Financial Performance - Net income attributable to common stockholders for Q3 2024 was $32,410,000, resulting in earnings per share of $0.36[3] - Net income attributable to the company for the three months ended September 30, 2024, was $42,849,000, a turnaround from a loss of $(84,509,000) in the same period of 2023[26] - The company reported a net loss attributable to common stockholders of $(61,957,000) for the nine months ended September 30, 2024, compared to a loss of $(121,500,000) for the same period in 2023, showing improvement[26] - Basic earnings per common share for the three months ended September 30, 2024, was $0.36, compared to a loss of $(1.04) in the same period of 2023[26] - The net income attributable to the Company's common stockholders for September 30, 2024, was $32,410, a significant recovery from a loss of $26,028 in the previous quarter[38] Income and Expenses - Total Adjusted Net Interest Income increased by 39% year-over-year to $29 million in Q3 2024[8] - For the three months ended September 30, 2024, net interest income increased to $20,237,000 from $16,789,000 in the same period of 2023, representing a growth of 8.6%[26] - Total general, administrative, and operating expenses increased to $22,826,000 for the three months ended September 30, 2024, from $16,987,000 in the same period of 2023[26] - The adjusted interest expense for September 30, 2024, was $72,296, down from $56,689 for June 30, 2024, reflecting a decrease of approximately 27.8%[34] Assets and Liabilities - Total assets increased to $8,905,914 thousand as of September 30, 2024, up from $7,401,328 thousand at December 31, 2023, representing a growth of approximately 20.3%[24] - Total liabilities grew to $7,433,952 thousand as of September 30, 2024, compared to $5,773,202 thousand at December 31, 2023, an increase of around 29%[24] - The company's stockholders' equity decreased to $1,444,147 thousand from $1,579,612 thousand, a decline of approximately 8.5%[24] - The liabilities of consolidated variable interest entities (VIEs) totaled $3,517,298 thousand as of September 30, 2024, compared to $3,076,818 thousand at December 31, 2023, reflecting an increase of about 14.3%[24] Investment and Financing - The company completed a securitization of business purpose loans, generating approximately $235.8 million in net proceeds[7] - The company purchased approximately $372.2 million of Agency RMBS with an average coupon of 5.33%[7] - The company plans to unlock excess liquidity for continued portfolio growth without any corporate debt maturity until 2026[9] - The company continues to focus on enhancing its financing strategy through the use of interest rate swaps to manage variable cash flows[32] Book Value and Returns - Book value per common share at the end of Q3 2024 was $9.83, while adjusted book value was $10.87[3] - Economic return on book value was 3.51% for the period[3] - The adjusted book value per common share was $10.87 as of September 30, 2024, down from $12.93 as of September 30, 2023[28] - The adjusted book value as of September 30, 2024, is $984,363,000, compared to $1,049,676,000 as of March 31, 2024, indicating a decline[44] Other Income and Losses - Total other income for the three months ended September 30, 2024, was $52,875,000, compared to a loss of $(85,943,000) in the same period of 2023, indicating a significant recovery[26] - Total net loss from real estate for the three months ended September 30, 2024, was $(7,495,000), a slight improvement from $(7,788,000) in the same period of 2023[26] Shareholder Information - Dividends declared per common share were $0.20[3] - The company reported a total of 90,579,449 common shares issued and outstanding as of September 30, 2024, slightly down from 90,675,403 shares at the end of 2023[24] - The company maintains a preferred stock liquidation preference of $554,110 thousand, with 22,164,414 shares issued and outstanding[24]