NEW YORK MTG(US:NYMTL)2025-11-04 22:13Investment Securities - For the three months ended September 30, 2025, total investment securities increased to $10,511.648 million, up from $8,603.269 million[304]. - The company reported a total of $6,869.358 million in investment securities available for sale and TBAs as of September 30, 2025[304]. - The fair value of consolidated SLST investment securities owned by the company was $158.791 million as of September 30, 2025, down from $160.930 million[305]. - As of September 30, 2025, total investments amounted to $10,518,504, an increase from $7,392,338 as of December 31, 2024, representing a growth of approximately 42.8%[337][338]. - The company had $6.1 billion outstanding under repurchase agreements as of September 30, 2025, with a weighted average interest rate of 4.43%[404][405]. - The total unrealized gains on investment securities were $111.4 million as of September 30, 2025, compared to $23.9 million as of December 31, 2024[401]. - The carrying value of Agency RMBS and TBAs increased to $8.01 billion as of September 30, 2025, compared to $4.24 billion as of December 31, 2024, indicating significant growth in this segment[400][401]. Financial Performance - Net income attributable to common stockholders for Q3 2025 was $32.7 million, or $0.36 per share, with Earnings Available for Distribution (EAD) increasing 9% quarter-over-quarter to $0.24 per share, marking a 140% year-over-year improvement[311]. - The company achieved the highest level of quarterly investment activity in its history during Q3 2025, reflecting a strategic focus on enhancing recurring income and portfolio liquidity[310]. - The economic return on book value for Q3 2025 was 3.51%, while the economic return on adjusted book value was 3.41%[333]. - The Company reported a net income attributable to common stockholders of $32,702 for the three months ended September 30, 2025, slightly up from $32,410 in 2024, while for the nine months, it decreased to $59,501 from $121,458, a decline of 51.0%[342]. - The Company’s total other income (loss) for the three months ended September 30, 2025, was $48,604, down 8.1% from $52,875 in 2024, while for the nine months, it improved to $71,292 from $(10,527), a significant positive change[342]. Dividends and Stock Repurchases - The company declared a quarterly dividend of $0.23 per share, a 15% increase from the prior quarter, equating to a 13.2% annualized dividend yield as of September 30, 2025[311]. - Common stock repurchases amounted to $1,502,000 for the nine months ended September 30, 2025, with a total of 231,000 shares repurchased[366]. - The Company approved a $100.0 million preferred stock repurchase program, with $97.6 million remaining available as of September 30, 2025[486]. - The common stock repurchase program was increased to $246.0 million, with $188.2 million remaining available as of September 30, 2025[487]. Loan and Mortgage Activity - The company acquired approximately $1.8 billion of Agency investments with an average coupon of 5.27% and approximately $525.7 million in residential loans with an average gross coupon of 8.81% during Q3 2025[333]. - The total value of acquired and originated residential loans as of September 30, 2025, was $4,256,683 thousand, an increase of 10.8% from $3,841,738 thousand as of December 31, 2024[412]. - The business purpose rental loan strategy accounted for 39.5% of the total unpaid principal of acquired and originated residential loans as of September 30, 2025, with an average FICO score of 747 and an average loan-to-value (LTV) ratio of 70%[414]. - The company recognized net unrealized losses of $50.0 thousand and $132.6 thousand for the three and nine months ended September 30, 2025, respectively, on its non-Agency RMBS re-securitization[410]. Risks and Market Conditions - The company faces various risks including changes in interest rates, credit spreads, and the ability to maintain REIT qualification, which could impact future performance[300]. - The Federal Reserve cut the target range for the federal funds rate by 25 basis points in September and another 25 basis points in October 2025, marking the lowest level since 2022[324]. - The U.S. unemployment rate trended up to 4.3% by the end of August 2025, indicating a cooling labor market[322]. - Effective rents for professionally managed apartments fell 0.3% in Q3 2025, indicating a potential decline in rental housing fundamentals[326]. Capital Structure and Financing - The Company Recourse Leverage Ratio and Portfolio Recourse Leverage Ratio increased to 5.0x and 4.7x, respectively, from 3.8x and 3.6x as of June 30, 2025[314]. - The company had repurchase agreements and warehouse facilities totaling $3,225,000,000 as of September 30, 2025, with a weighted average interest rate of 6.37%[422]. - The company incurred loan origination costs of $3.8 million for both the three and nine months ended September 30, 2025[361]. - The company plans to maintain a solid position in unrestricted cash while pursuing investments in less price-sensitive assets like Agency RMBS[461]. Operational Costs - General and administrative expenses for the three months ended September 30, 2025, were $23,349, up 95.4% from $11,941 in 2024, indicating increased operational costs[342]. - Total expenses related to real estate decreased by $16.4 million to $22.98 million for the three months ended September 30, 2025, from $39.4 million in 2024[344]. - Total financing transaction costs for the three months ended September 30, 2025, were $7.9 million, an increase of $5.6 million compared to $2.4 million in 2024[362]. Strategic Acquisitions - The company completed the acquisition of the outstanding membership interests in Constructive, consolidating it into the financial statements, which included residential loans and mortgage servicing rights[304]. - The acquisition of Constructive was completed on July 15, 2025, resulting in full ownership and a reported $14.1 million in mortgage banking income from origination and sale activity for the quarter[313]. - The company executed a strategic repositioning by disposing of certain joint venture equity investments and acquiring assets to expand interest income levels, including Agency RMBS and business purpose loans[382].