NEW YORK MORTGAG(NYMTZ) - 2023 Q4 - Annual Report

Financial Assets and Investments - As of December 31, 2023, the company owned $181.6 million of non-Agency RMBS, which are collateralized by residential credit assets[29] - The company owned 524 single-family rental properties, primarily located in Illinois and Maryland, as of December 31, 2023[30] - The company has a joint venture that owns 13 multi-family properties in seven states, with an approximate 24% common equity interest as of December 31, 2023[39] - The company has a strategy to participate as a capital partner in multi-family properties, typically providing between 70% and 95% of the total common equity capital[38] - The company’s investment strategy includes a focus on multi-family apartment communities, which are also classified as VIEs[373] - The company’s preferred equity investments to have loan-to-value ratios of 60% to 97% when combined with the first-mortgage loan amount[34] - The company’s investment in Consolidated SLST had a net carrying value of $157.2 million as of December 31, 2023, compared to $191.5 million in 2022[389] - The company had a total investment in Constructive Loans, LLC, amounting to $37.154 million as of December 31, 2023, reflecting a fair value increase from $27.5 million in 2022[421] - The total fair value of the available-for-sale (AFS) investment securities was $2.01 billion as of December 31, 2023, compared to $99.56 million in 2022[399] - The total agency RMBS fair value was $1.99 billion, with a yield of 5.79%[398] - The total non-agency RMBS fair value was $24.49 million, with a yield of 20.27%[398] - The Mezzanine Lending portfolio totaled $212.4 million, a decrease from $242.97 million in 2022, representing a decline of approximately 12.6%[407] Debt and Leverage - The company has a target total debt leverage ratio not greater than 4:1, with a recourse leverage ratio of approximately 1.6 to 1 as of December 31, 2023[47] - The company primarily targets maximum leverage ratios of 10:1 for more liquid Agency securities and between 4:1 and 6:1 for more illiquid assets[46] - The company employs leverage through repurchase agreements to generate risk-adjusted returns, subject to market conditions[28] - The company had repurchase agreements with a maximum aggregate uncommitted principal amount of $2.225 billion as of December 31, 2023, compared to $2.031 billion in 2022[393] - The weighted average interest rate for repurchase agreements increased to 7.87% as of December 31, 2023, from 6.65% in 2022[393] - The company’s recourse leverage ratio was approximately 1.6 to 1 as of December 31, 2023, indicating the level of debt relative to stockholders' equity[450] - The company had longer-term debt, including Company-sponsored residential loan securitization CDOs with a carrying value of $1.3 billion as of December 31, 2023[448] Financial Performance - As of December 31, 2023, the company reported total assets of approximately $7.4 billion, an increase from $6.2 billion in 2022[381] - The company's acquired residential loans totaled $2,329.4 million as of December 31, 2023, down from $2,697.5 million in 2022, reflecting a decrease of approximately 13.7%[382] - The total number of acquired residential loans decreased from 11,065 in 2022 to 10,321 in 2023, indicating a reduction of about 6.7%[384] - The company reported a decrease in stockholders' equity from $1.767 billion in 2022 to $1.580 billion in 2023, primarily due to an accumulated deficit of $1.254 billion[430] - During the year ended December 31, 2023, the company generated net cash flows from operating activities of $30 million[438] - The company used $1.2 billion in net cash flows for investing activities, mainly for purchasing investment securities and residential loans[439] - As of December 31, 2023, the net cash flows provided by financing activities were $1.1 billion, primarily from repurchase agreements related to investment securities, residential loans, and single-family rental properties[442] Risk Management - The company utilizes interest rate swaps to hedge variable cash flows associated with its variable-rate borrowings, which helps offset repricing characteristics and cash flows of financing arrangements[55] - The company utilizes model-based risk analysis to project asset price and cash flow sensitivities under various market scenarios[58] - The company has obligations to purchase ownership interests from third-party investors in a joint venture under certain conditions[462] Regulatory and Compliance - The company is subject to various regulatory requirements, including those under the Dodd-Frank Act, which may impact its operations and compliance costs[64] - The company has adopted a Code of Business Conduct and Ethics applicable to its executive officers and other employees, ensuring compliance with ethical standards[74] - The company must distribute at least 90% of its ordinary taxable income each year to qualify as a REIT, which is contingent on the performance of its investment portfolio[67] - The company’s ability to maintain its qualification as a REIT for federal tax purposes is a critical factor for future distributions to stockholders[77] Workforce and Diversity - As of December 31, 2023, the company had 79 full-time employees across its offices in New York, Charlotte, and Woodland Hills, with no temporary or seasonal employees expected in the future[61] - The company is committed to maintaining a diverse workforce, with women comprising 30% and 32% of employees identifying as ethnically diverse as of December 31, 2023[62] Joint Ventures and Equity Investments - The company has joint venture equity investments in multi-family properties with a total equity ownership interest exceeding 5% in states like Florida (33.4%) and Texas (29.4%) as of December 31, 2023[416] - The company repositioned its business in September 2022 to opportunistically dispose of joint venture equity investments in multi-family properties[411] - As of December 31, 2023, the company’s investment in unconsolidated multi-family joint venture equity investments was $5.72 million[415] - The total assets of the consolidated joint venture equity investments amounted to $1.46 billion as of December 31, 2023, down from $1.73 billion in 2022, indicating a decrease of about 15.7%[414] - The net equity investment in consolidated joint ventures and disposal group held for sale was $236.3 million as of December 31, 2023, compared to $388.8 million in 2022, reflecting a reduction of approximately 39%[414] Occupancy and Rental Performance - As of December 31, 2023, the company reported an average occupancy rate of 89.8% across 22 properties, with an average rent per unit of $1,364[419]