AG Mortgage Investment Trust(MITT) - 2025 Q3 - Quarterly Report

Financial Performance - The company achieved a book value per share of $10.46 and a net income available to common stockholders of $0.47 per diluted common share[257]. - Net income available to common stockholders for Q3 2025 was $14,617,000, compared to $11,924,000 in Q3 2024, representing a 22.5% increase[350]. - Net interest income for Q3 2025 was $19.482 million, an increase of $4.532 million from Q3 2024[288]. - Interest income rose to $124.714 million in Q3 2025, up $17.258 million from the previous year, driven by a higher weighted average yield[288]. - Net income available to common stockholders for the nine months ended September 30, 2025 was $19,414 thousand, a decrease of $8,153 thousand from $27,567 thousand in the same period of 2024[319]. - Total net realized loss for the three months ended September 30, 2025 was $(3,578) thousand, an improvement from $(10,788) thousand in the same period of 2024[299]. - Total net unrealized gain for the three months ended September 30, 2025 was $13,199 thousand, compared to $19,700 thousand for the same period in 2024, a decrease of $6,501 thousand[302]. Dividends and Shareholder Returns - The company declared a dividend of $0.21 per common share in Q3 2025[257]. - During the nine months ended September 30, 2025, the company declared common stock dividends of $0.62 per share and preferred stock dividends of $1.54689, $1.50, and $2.103968 per share for Series A, B, and C respectively[406]. - Earnings available for distribution for Q3 2025 was $7,091,000, up from $4,876,000 in Q3 2024, indicating a 45.4% growth[350]. Investment Activities - In Q3 2025, the company reported a total investment purchase of $1,719.5 million, including $888.6 million in Agency-Eligible Loans and $830.9 million in Home Equity Loans[252]. - The company executed four rated securitizations in Q3 2025, totaling an unpaid principal balance of $1,712.4 million[256]. - The company focuses on acquiring and securitizing newly-originated residential mortgage loans within the non-agency segment of the housing market[260]. - The company aims to allocate capital to investment opportunities with attractive risk/return profiles, focusing on newly-originated residential mortgage loans[353]. Portfolio and Asset Management - As of September 30, 2025, the company’s investment portfolio primarily consisted of newly originated Non-Agency Loans, Agency-Eligible Loans, and Home Equity Loans[262]. - Total Investment Portfolio amounts to $8,994,870, with a fair value of $8,791,474, yielding 6.11%[359]. - Securitized Non-Agency Loans total $7,350,818 with a fair value of $7,142,686, yielding 5.76%[359]. - Securitized Home Equity Loans stand at $985,292 with a fair value of $1,007,911, yielding 7.73%[359]. - The fair value of Non-Agency RMBS was $161.02 million, with a weighted average coupon of 2.45% and a weighted average life of 4.70 years[381]. Financing and Leverage - The company operates as a residential mortgage REIT, aiming to provide attractive risk-adjusted returns primarily through dividends and capital appreciation[259]. - The leverage ratio is influenced by portfolio mix, liquidity, financing availability, and regulatory developments[356]. - GAAP leverage as of September 30, 2025, is $8,358,196, resulting in a leverage ratio of 14.9x against stockholders' equity of $559,843[400]. - Economic leverage, a non-GAAP measure, is $930,953 with a leverage ratio of 1.7x[400]. Market Conditions - Prevailing mortgage rates fell over 30 basis points to approximately 6.3% by the end of Q3 2025, the lowest level since Q4 2024[276]. - The S&P CoreLogic Case-Shiller U.S. National Home Price Index rose 1.7% year-over-year in July 2025, with New York City home prices leading gains at 6.4%[275]. - Total existing home inventory was 1.53 million units in August 2025, the highest since June 2020, but still below typical levels from 2016 to 2019[277]. Management and Fees - The management fee to affiliates increased to $6,947 thousand for the nine months ended September 30, 2025, compared to $5,202 thousand in the same period of 2024[319]. - The management fee is calculated at 1.50% of Stockholders' Equity per annum, with management fees incurred of $2.3 million for the three months ended September 30, 2025, compared to $1.7 million in 2024[426]. - Total expense reimbursements to the manager or its affiliates amounted to $1.974 million for the three months ended September 30, 2025, compared to $1.852 million in 2024[434]. Risk Management - The company may utilize derivative instruments to hedge interest rate risks associated with its financing portfolio[402]. - The net interest margin is a key metric for evaluating the profitability of interest income versus interest expense, including the impact of interest rate swaps[354]. - The weighted average yield for the investment portfolio is calculated based on estimates of future cash flows and adjusts for actual prepayment and cash flow activity[355].