NEW YORK MORTGAG(NYMTZ) - 2025 Q4 - Annual Report

Real Estate Portfolio - As of December 31, 2025, the company owned 471 single-family rental properties, primarily located in Illinois and Maryland [35]. - The company's multi-family investment portfolio consists of credit-oriented investments, including preferred equity investments and cross-collateralized mezzanine lending investments [37]. - The company focuses on acquiring single-family residential loans through proprietary sourcing channels and does not directly service the mortgage loans acquired [30]. - The company emphasizes investment in Agency RMBS, reflecting their liquidity and ability to generate attractive risk-adjusted returns [29]. - The total amount of acquired and originated residential loans reached $3.19 billion as of December 31, 2025, compared to $2.88 billion in 2024, representing a growth of about 11% [416]. - The total number of acquired and originated residential loans was 14,492 as of December 31, 2025, an increase from 11,853 in 2024 [418]. - The company’s non-Agency RMBS re-securitization CDOs had an outstanding face amount of $65.3 million as of December 31, 2025, down from $70.9 million in 2024 [414]. - The company had $6.2 billion outstanding under repurchase agreements as of December 31, 2025, up from $3.33 billion in 2024, indicating an increase of approximately 86% [410]. - The total number of residential loans held for sale as of December 31, 2025, was 356, with a current fair value of $80,707 thousand and an average loan size of $221,714 thousand [426]. Financial Performance - As of December 31, 2025, the company had approximately $12.6 billion in total assets, an increase from approximately $9.2 billion as of December 31, 2024 [404]. - The investment securities portfolio included $8.8 billion in total investment securities as of December 31, 2025, compared to $5.7 billion as of December 31, 2024 [405][407]. - The fair value of Agency RMBS increased to $6.6 billion as of December 31, 2025, from $3.1 billion as of December 31, 2024 [406][407]. - The weighted average yield on investment securities was 5.82% as of December 31, 2025, compared to 5.94% as of December 31, 2024 [406][407]. - The company generated net cash flows from operating activities totaling $134.0 million during the year ended December 31, 2025 [468]. - Net cash flows used in investing activities were $2.9 billion, primarily due to purchases of investment securities and residential loans [469]. - Net cash flows provided by financing activities were $2.8 billion, mainly from proceeds received from repurchase agreements and warehouse facilities [472]. Leverage and Risk Management - The maximum leverage ratios for eligible asset portfolios are 15:1 for liquid Agency securities, between 1:1 and 4:1 for non-Agency RMBS and multi-family investments, and 8:1 for residential loans [45]. - The company’s recourse leverage ratio was approximately 5.0 to 1 as of December 31, 2025, while the portfolio recourse leverage ratio was approximately 4.7 to 1 [46]. - The company employs leverage through a mix of short-term and long-term repurchase agreements and structured financings, including securitizations [45]. - The company utilizes derivative instruments, including interest rate swaps and TBAs, as part of its risk management strategy [52]. - The company utilizes model-based risk analysis to evaluate the sensitivity of its assets and cash flows to changes in interest rates and other market factors [58]. Regulatory Compliance - The company is required to distribute at least 90% of its ordinary taxable income each year to qualify as a REIT [64]. - The company incurs significant ongoing costs to comply with various laws and regulations, although these have not had a material adverse effect on its business [62]. - The company must maintain its qualification as a REIT to avoid being subject to U.S. federal income tax at regular corporate rates [65]. - The company relies on exemptions from registration as an investment company under the Investment Company Act, which requires at least 55% of its assets to be qualifying real estate assets [67]. - The company’s operations are subject to supervision and regulation by governmental authorities, which impose various requirements and restrictions [61]. Equity and Stockholder Information - The company’s stockholders' equity increased to $1.43 billion as of December 31, 2025, compared to $1.39 billion in 2024, marking an increase of approximately 2.3% [461]. - The company issued senior unsecured notes totaling $357.5 million as of December 31, 2025, with a weighted average interest rate of 9.125% [458]. - The company had total contractual obligations of approximately $7.34 billion as of December 31, 2025, including projected interest payments [497]. - The company may utilize debt securities offerings as a source of liquidity, in addition to equity offerings [487]. - The company may be required to enter into interest rate cap contracts related to variable-rate mortgages, impacting liquidity and financial obligations [486].