AG Mortgage Investment Trust(US:MITT)2024-11-05 11:36Financial Performance - Q3 2024 net interest income was $15.8 million, driven by unrealized gains on residential mortgage loans and non-agency RMBS[4] - Economic return on equity (ROE) for Q3 2024 was 3.9%, a decrease of 1.4% from the previous quarter[3] - Earnings available for distribution (EAD) for the three months ended September 30, 2024, amounted to $4,876,000, translating to $0.17 per diluted share[22] - Net income available to common stockholders for the three months ended September 30, 2024, was $11,924,000, or $0.40 per diluted share[22] - The company reported a Net Income of $11,924 thousand for the three months ended September 30, 2024, compared to a Net Loss of $6,751 thousand for the same period in 2023[37] Asset Management - Book value per share increased to $10.58 in Q3 2024, reflecting strong asset appreciation in the investment portfolio[3] - Total investment portfolio valued at $6,972.9 million with a yield of 5.9% as of September 30, 2024[18] - The company’s stockholders' equity was $450,422 thousand as of September 30, 2023, increasing to $528,368 thousand by December 31, 2023[31] - Securitized residential mortgage loans at fair value increased to $6,226,698 thousand as of September 30, 2024, from $5,358,281 thousand on December 31, 2023[33] Loan and Securitization Activity - The company purchased $136.2 million in home equity loans during Q3 2024, contributing to a current pipeline of approximately $200 million[5] - Securitized loans in Q3 2024 totaled $751.5 million, with $390.8 million from agency-eligible loans[5] - The non-agency loan portfolio has a total securitized UPB of $6.2 billion, with a current loan-to-value (LTV) ratio of 59%[9] - Home equity loans represented a year-over-year growth of 138%, with a weighted average coupon of 10.7%[12] - The weighted average yield on securitized non-agency loans was 5.6%, with a financing cost of 5.2%[18] - The agency-eligible loans had a yield of 6.8% with a financing cost of 6.6%[18] Financial Ratios and Leverage - Economic leverage stood at 3.0x as of September 30, 2024, with $6.4 billion in financing[19] - Securitized debt constituted 86.1% of the financing profile, with a cost of funds averaging 5.1%[20] - As of September 30, 2023, MITT's GAAP Leverage Ratio was 9.7x, increasing to 10.5x by December 31, 2023, and projected to reach 12.0x by June 30, 2024[31] - Economic Leverage increased from $560,061 thousand on September 30, 2023, to a projected $1,353,660 thousand by June 30, 2024[31] Cash and Expenses - Cash and cash equivalents totaled $102.5 million, yielding 4.8%[18] - The company’s cash and cash equivalents were $102,532 thousand as of September 30, 2024, down from $111,534 thousand on December 31, 2023[33] - Total Expenses decreased from $14,452 thousand in the three months ended September 30, 2023, to $8,553 thousand in the same period of 2024[37] - Dividends on preferred stock for the three months ended September 30, 2024, were $4,716 thousand, compared to $4,586 thousand for the same period in 2023[37] Investment Yield - The weighted average unlevered yield of legacy commercial real estate loans is 9.6%, representing 1.8% of the investment portfolio[14] - The company retained approximately 5% to 10% of securitizations, borrowing against retained bonds to manage risk[7] - The company reported a net unrealized gain of $19,700,000 for the period, offset by a net realized loss of $10,788,000[21]