Great Ajax(US:AJX)2024-08-01 23:50Financial Performance - Net interest income for the three months ended June 30, 2024, was $348 thousand, a decrease of 89% compared to $3,301 thousand for the same period in 2023[14]. - Consolidated net loss attributable to common stockholders for the six months ended June 30, 2024, was $87,061 thousand, compared to a loss of $19,975 thousand for the same period in 2023, indicating a significant increase in losses[14]. - Consolidated net loss for the six months ended June 30, 2024, was $86,853 thousand, compared to a loss of $18,826 thousand for the same period in 2023[20]. - The company reported a net loss of $73.978 million for the six months ended June 30, 2024[27]. - The company recorded a net loss of $481 thousand from Gaea Real Estate Corp. for the three months ended June 30, 2024, compared to a net loss of $594 thousand for the same period in 2023[181]. Assets and Liabilities - Total assets decreased from $1,336,291 thousand as of December 31, 2023, to $911,516 thousand as of June 30, 2024, representing a decline of approximately 32%[10]. - Total liabilities decreased from $1,025,396 thousand as of December 31, 2023, to $657,035 thousand as of June 30, 2024, a reduction of approximately 36%[10]. - Total equity attributable to stockholders decreased from $308,933 thousand as of December 31, 2023, to $253,552 thousand as of June 30, 2024, a decline of approximately 18%[10]. - The Company’s accumulated deficit stood at $147.361 million as of June 30, 2024[31]. - The Company’s total stockholders' equity as of June 30, 2024, was $254.481 million[31]. Cash Flow and Investments - Cash and cash equivalents increased from $52,834 thousand as of December 31, 2023, to $72,026 thousand as of June 30, 2024, reflecting a growth of approximately 36%[10]. - Net cash from operating activities increased to $8,019 thousand from a negative $23,636 thousand year-over-year[20]. - Net cash from investing activities significantly rose to $383,103 thousand, up from $88,258 thousand in the prior year[20]. - Proceeds from the sale of mortgage loans amounted to $311,279 thousand, with no proceeds reported in the previous year[20]. - The total investments as of June 30, 2024, amounted to $258.764 million, with gross unrealized losses of $31.816 million[153]. Mortgage Loans - Mortgage loans held-for-sale, net increased from $55,718 thousand as of December 31, 2023, to $108,868 thousand as of June 30, 2024, showing an increase of about 95%[10]. - The carrying value of mortgage loans held-for-investment is approximately $413.9 million, down from $864.6 million as of December 31, 2023, indicating a decrease of about 52%[128]. - The Company sold 1,477 and 1,712 mortgage loans held-for-sale with a carrying value of $263.7 million and $314.3 million during the three and six months ended June 30, 2024, respectively[133]. - The Company has not purchased any RPLs during the three and six months ended June 30, 2024, compared to 68 and 71 RPLs purchased in the same periods of 2023[133]. - The Company recorded a credit loss expense on mortgage loans of $(10) thousand for the three months ended June 30, 2024[140]. Stock and Equity Transactions - The weighted average shares outstanding for basic loss per common share increased from 23,250,725 for the three months ended June 30, 2023, to 39,344,128 for the same period in 2024, an increase of about 69%[14]. - The company declared dividends of $0.10 per share, totaling $15.506 million[28]. - The company reported a stock-based management termination fee and compensation expense of $16,952 thousand, up from $892 thousand in the prior year[20]. - The Company issued an aggregate of $125.0 million of preferred stock in two series during the year ended December 31, 2020[69]. - The Company exchanged 424,949 shares of its 7.25% Series A and 1,135,590 shares of its 5.00% Series B preferred stock for newly issued common stock, totaling 12,046,218 common shares[72]. Debt and Financing - The Company redeemed senior convertible notes totaling $103,516 thousand during the period[22]. - The Company entered into a $70.0 million term loan agreement with NIC RMBS LLC, an affiliate of Rithm Capital Corp.[34]. - The Company has entered into two repurchase facilities with a ceiling of $150.0 million and $400.0 million, respectively, for acquiring and selling mortgage loans[194]. - The total amount outstanding for repurchase transactions is $246.5 million, with a weighted average interest rate of 6.99%[199]. - The Company’s maximum borrowing capacity subject to sufficient collateral was $400.0 million as of June 30, 2024[200]. Credit Quality and Risk Management - The Company monitors the credit quality of its mortgage loans and assesses expected cash flows and fair value of underlying collateral[62]. - The Company has recognized a cumulative allowance for expected credit losses of zero as of June 30, 2024, compared to $3.4 million as of December 31, 2023[131]. - The allowance for expected credit losses at the end of the period was zero for June 30, 2024, compared to $5.985 million for June 30, 2023[140]. - Risks in the beneficial interest portfolio include default risk and delays in payment, with ongoing monitoring of credit quality[67]. - The Company’s expectation of undiscounted cash flows is evaluated at the end of each calendar quarter, impacting the allowance for expected credit losses[66].