NEW YORK MTG(NYMTL) - 2022 Q4 - Annual Report

Investment Portfolio - As of December 31, 2022, the company owned $260.1 million in non-Agency RMBS, which are collateralized by residential credit assets[29] - The company owned 491 single-family rental properties, primarily located in Illinois and Maryland, as of December 31, 2022[31] - The company has made investments in multi-family properties with loan-to-value ratios typically between 60% and 97% for preferred equity investments[36] - As of December 31, 2022, the company held approximately $137.7 million of preferred equity interests in a joint venture owning 13 multi-family properties across seven states[41] - The company targets middle market multi-family apartment communities with approximately 150 to 600 units, focusing on regions with growing demand and housing shortages[33] - The company may invest in mezzanine loans with terms typically ranging from three to ten years and loan-to-value ratios between 70% and 90%[39] - The company may acquire investments structured with terms reflecting a combination of various investment structures described in its portfolio[48] Financing and Leverage - The company has historically employed leverage through repurchase agreements in managing its Agency RMBS portfolio to generate risk-adjusted returns[30] - As of December 31, 2022, the company's recourse leverage ratio was approximately 0.3 to 1, indicating a conservative approach to leveraging its equity[51] - The company targets maximum leverage ratios of 8:1 for liquid Agency securities and between 4:1 and 6:1 for illiquid assets, with a total debt leverage ratio not exceeding 3:1[50] - The company completed nine non-recourse securitizations and three non-mark-to-market repurchase agreement financings since Q1 2020, enhancing its financing strategy[49] - The company has entered into three repurchase agreements with an aggregate outstanding balance of $446.8 million as of December 31, 2022, which are not subject to margin calls[55] - The company employs a hedging strategy using derivative instruments, including interest rate caps and swaps, to manage risks associated with its financing activities[58] - The company had repurchase agreements with a maximum aggregate uncommitted principal amount of $2,030.9 million as of December 31, 2022, with an outstanding balance of $688.5 million[392] Regulatory Compliance - The company is subject to various regulatory requirements, including compliance with the Dodd-Frank Act, which impacts its operations and costs[71] - The company must distribute at least 90% of its ordinary taxable income each year to qualify as a REIT under the Internal Revenue Code[74] - The company relies on the exemption from registration as an investment company under Section 3(c)(5)(C) of the Investment Company Act, requiring at least 55% of assets to be qualifying real estate assets[77] - The company’s residential mortgage loans are fully secured by real property with a loan-to-value ratio of less than 100%, meeting the definition of qualifying real estate assets[77] Financial Performance - As of December 31, 2022, the company had approximately $6.2 billion in total assets, an increase from approximately $5.7 billion as of December 31, 2021[379] - The company's residential loans totaled $3.525 billion as of December 31, 2022, compared to $3.576 billion as of December 31, 2021, reflecting a decrease of approximately 1.4%[380] - The assets held in Consolidated SLST amounted to approximately $830.8 million as of December 31, 2022, down from approximately $1.1 billion in 2021[379] - The company’s equity investments in multi-family properties were approximately $1.7 billion as of December 31, 2022, compared to $1.0 billion in 2021, indicating a significant increase[379] - The company reported an average occupancy rate of 90.7% across 19 properties, with a total of 6,433 units and an average rent per unit of $1,305[412] - The total investment securities portfolio was valued at $1,032.2 million as of December 31, 2022, with a fair value decrease of $58.1 million compared to the previous year[415] Employee and Workplace Policies - The company has a workforce of 74 full-time employees as of December 31, 2022, with a focus on employee engagement and retention[65] - The company is committed to maintaining a diverse workforce, with women comprising 24% and ethnically diverse employees making up 30% of its total workforce as of December 31, 2022[66] - The company has adopted a fully flexible workplace policy in 2022, allowing employees to choose their work environment[68] Risk Management - The company is subject to risks that could materially affect its results, including changes in interest rates, credit spreads, and the ability to maintain REIT qualification[84] - The effective yield on investment securities is based on management's estimates of projected cash flows, which are reviewed and adjusted quarterly[365] - The company consolidates variable interest entities (VIEs) when it is the primary beneficiary, impacting its financial statements significantly[370] Cash Flow and Investments - During the year ended December 31, 2022, net cash flows from operating activities were $91.8 million, differing from net income due to various factors including unrealized gains and losses[441] - The company reported net cash flows used in investing activities of $508.8 million during the year ended December 31, 2022, primarily due to purchases of residential loans and capital expenditures[442] - The company had $244.7 million in cash and cash equivalents and $120.5 million in unencumbered investment securities as of December 31, 2022[436] Stockholder Equity and Obligations - As of December 31, 2022, the company's stockholders' equity was $1,767.2 million, a decrease from $2,341.0 million as of December 31, 2021, reflecting a decline of approximately 24.5%[434] - The company had total contractual obligations of $967.6 million as of December 31, 2022, which includes repurchase agreements, subordinated debentures, and senior unsecured notes[464] - The company intends to make distributions to stockholders to maintain REIT status, but may need to sell assets or borrow funds to meet distribution requirements[461]