Great Ajax(AJX) - 2024 Q4 - Annual Results

Financial Performance - GAAP net income for Q4 2024 was $2.9 million, or $0.06 per diluted share, compared to a loss of $8.0 million in Q3 2024[3] - Earnings available for distribution for Q4 2024 were $0.3 million, or $0.01 per diluted common share, up from a loss of $5.4 million in Q3 2024[3] - The company stabilized its book value and achieved positive earnings growth from a loss of $12.7 million in Q2 2024 to a net income of $2.9 million in Q4 2024[4] - Net income attributable to common stockholders for the three months ended December 31, 2024, was $2.914 million, compared to a loss of $8.029 million for the previous quarter[23] - Earnings available for distribution (EAD) for the same period was $323,000, a significant improvement from a loss of $5.360 million in the prior quarter[23] - Basic and diluted earnings available for distribution per common share were both $0.01 for the three months ended December 31, 2024, compared to a loss of $0.12 per share in the previous quarter[23] Asset and Liability Management - Total assets decreased to $977.3 million as of December 31, 2024, down from $1.3 billion a year earlier[15] - Total liabilities were reported at $730.6 million, a decrease from $1.0 billion at the end of 2023[15] - Book value per common share decreased slightly to $5.44 at December 31, 2024, from $5.47 at September 30, 2024[3] Dividend Declaration - The company declared a cash dividend of $0.06 per share, totaling $2.8 million, to be paid on February 28, 2025[6] Investment Strategy - The company acquired $154 million in UPB of commercial mortgage-backed securities, increasing total investment in CMBS to $244 million[10] - The transition to a commercial real estate-focused investment strategy was highlighted following the rebranding to Rithm Property Trust on December 2, 2024[10] Earnings Distribution Policy - The company views earnings available for distribution as a consistent financial measure of its portfolio's ability to generate income for distribution to common stockholders[21] - To maintain qualification as a REIT, the company is required to distribute at least 90% of its REIT taxable income annually[21] - Management excludes certain realized and unrealized losses from earnings available for distribution as they are not considered part of the company's core operations[20] Strategic Transactions - The company reported unrealized losses of $1.516 million for the quarter ended December 31, 2024, compared to unrealized gains of $1.640 million in the prior quarter[23] - The company incurred $1.010 million in expenses related to a strategic transaction during the previous quarter[23] - The strategic transaction with Rithm Capital involved a management agreement with an affiliate to serve as the external manager for Rithm Property Trust[23]