NEW YORK MTG(US:NYMTL)2026-02-20 22:23Real Estate Portfolio - As of December 31, 2025, the company owned 471 single-family rental properties, primarily located in Illinois and Maryland[35]. - The company targets middle-market multi-family apartment communities located in secondary and tertiary markets for its investments[37]. - The multi-family investment portfolio consists of credit-oriented investments, including preferred equity investments and cross-collateralized mezzanine lending investments[37]. - As of December 31, 2025, 100% of the company's Mezzanine Lending assets were structured as preferred equity investments[40]. - The company has consolidated its cross-collateralized mezzanine lending investment, owning approximately 27% common equity interest and $144.1 million of preferred equity interests in the entity[41]. 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 reported a cumulative deficit of $1.41 billion as of December 31, 2025, an improvement from a deficit of $1.43 billion in 2024[461]. Leverage and Debt - The company's maximum leverage ratios are 15:1 for liquid Agency securities, between 1:1 and 4:1 for illiquid assets, and 8:1 for residential loans, with a target total debt leverage ratio not exceeding 6:1[45]. - The company’s recourse leverage ratio was approximately 5.0 to 1 as of December 31, 2025, and the portfolio recourse leverage ratio was approximately 4.7 to 1[46]. - The company had total contractual obligations of approximately $7.34 billion as of December 31, 2025, including projected interest payments[497]. - The company had $100.0 million in 2026 Senior Notes outstanding, bearing interest at 5.75% per year, maturing on April 30, 2026[477]. - The company had $60.0 million in 2029 Senior Notes outstanding, bearing interest at 9.125% per year, maturing on July 1, 2029[478]. Risk Management - The company employs derivative instruments, including interest rate swaps and TBAs, as part of its risk management strategy to manage exposure to interest rates and market conditions[52]. - The company primarily uses interest rate swaps to hedge variable cash flows associated with its variable-rate borrowings[54]. - The company utilizes model-based risk analysis to evaluate the sensitivity of its assets and liabilities to changes in interest rates and other market factors[58]. - The company may be required to enter into interest rate cap contracts related to variable-rate mortgages, impacting its liquidity[486]. Employee and Operations - As of December 31, 2025, the company had 221 full-time employees, with 160 (72%) directly engaged in operations[60]. - The company has adopted a Code of Business Conduct and Ethics applicable to its executive officers and employees[74]. - 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’s operations are subject to supervision and regulation by governmental authorities, impacting lending activities and consumer protections[61]. Investment Strategy - The company may invest in other multi-family investments and structured investments based on market conditions while maintaining its REIT qualification[44]. - The company relies on exemptions from registration as an investment company under the Investment Company Act, requiring at least 55% of its assets to be qualifying real estate assets[67]. - The company has a preferred equity investment in a Consolidated VIE valued at $17,344 as of December 31, 2025, with a weighted average preferred return rate of 13.86%[440]. - The business purpose rental loan strategy accounted for $1.57 billion in fair value with a weighted average coupon of 7.05% as of December 31, 2025[418]. Cash Flow and Financing Activities - 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]. - The company may utilize debt securities offerings as a source of liquidity, in addition to equity offerings[487]. Stockholder Equity and Repurchase Programs - 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 2.0%[461]. - The preferred stock repurchase program approved in March 2023 allows for repurchases of up to $100.0 million, with $97.6 million remaining available as of December 31, 2025[488]. - The common stock repurchase program was increased to $246.0 million in March 2023, with $188.2 million remaining available as of December 31, 2025[489]. - The company repurchased 231,200 shares of its common stock for a total cost of approximately $1.5 million, representing an average repurchase price of $6.50 per common share[489].