Seven Hills Realty Trust (SEVN) 2025 Conference June 04, 2025 10:15 AM ET Speaker0 Alright. I'm getting the the ghost signal here, so why don't we get started? So good morning, everyone. Thank you for joining our fireside chat today featuring Seven Hills Realty Trust. My name is Chris Moeller. I'm an analyst at Citizens Capital Markets where I focus on commercial mortgage REITs. We are pleased to cover Seven Hills as well as 22 other names that comprise the 24 company, public company commercial mortgage REI ...

Core Viewpoint - AGNC Investment Inc. has experienced an 11.6% decline in share price over the past three months, which is more significant than the industry's decline of 8.5%, reflecting broader challenges in the mortgage market due to rate volatility [1][4]. Price Performance - AGNC's peers, Annaly Capital Management and Arbor Realty Trust, have also seen declines of 5% and 21.4%, respectively, in the same period [1]. - Despite recent price drops, AGNC offers attractive long-term returns with a high dividend yield, which may attract investors [4]. Interest Rate Environment - AGNC's performance is heavily influenced by the interest rate environment, particularly decisions made by the Federal Reserve [5]. - The company's net interest income (NII) fell dramatically from $965 million in 2022 to just $18 million in 2024 due to rising borrowing costs [6]. - A reduction in interest rates by 100 basis points in 2024 positively impacted AGNC's NII, which rose to $159 million in Q1 2025 from a negative $30 million in the same quarter the previous year [7]. Mortgage Rates and Activity - Recent trends show a slight decline in mortgage rates, with the average 30-year fixed-rate mortgage at 6.76% as of May 8, 2025, down from 7.09% a year prior [7]. - Lower mortgage rates are expected to boost origination and refinancing activities, which could enhance AGNC's NII and portfolio value [8][21]. Dividend Yield - AGNC's current dividend yield stands at 16.38%, significantly higher than the industry average of 12.03%, making it an attractive option for income-seeking investors [10]. - The company has a payout ratio of 81% and is engaged in a stock repurchase plan, authorizing up to $1 billion in buybacks through December 31, 2026 [11]. Agency MBS Outlook - AGNC focuses on agency mortgage-backed securities (RMBS), which are backed by U.S. government guarantees, positioning it well in this market segment [12]. - The outlook for agency MBS has improved, although market volatility has increased following recent tariff announcements [13]. - AGNC generated a positive economic return of 2.4% in Q1 2025, supported by its dividend strategy [14]. Valuation - AGNC is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 5.36X, below the industry average of 7.74X, indicating it may be undervalued [22]. - Compared to peers, AGNC's P/E is lower than Annaly Capital Management's 6.66X and Arbor Realty Trust's 8.44X [22]. Investment Consideration - Given the strong fundamentals, high dividend yield, and potential for growth in a declining rate environment, AGNC stock may be a worthwhile addition to investment portfolios [24].

Invesco Mortgage Capital (IVR) Q1 2025 Earnings Call May 08, 2025 09:00 AM ET Company Participants Greg Seals - Head, Investor RelationsJohn Anzalone - Chief Executive OfficerBrian Norris - Chief Investment OfficerTrevor Cranston - Director, Mortgage Finance Equity ResearchJason Weaver - Managing Director - Equity ResearchJason Stewart - Director - Mortgage FinanceEric Hagen - Managing Director Conference Call Participants Douglas Harter - Equity Research Analyst Operator Welcome to the Invesco Mortgage Cap ...

Invesco Mortgage Capital (IVR) Q1 2025 Earnings Call May 08, 2025 09:00 AM ET Speaker0 Welcome to the Invesco Mortgage Capital First Quarter twenty twenty five Earnings Call. All participants will be in a listen only mode until the question and answer session. As a reminder, this call is being recorded. Now I would like to turn the call over to Greg Seals in Investor Relations. Mr. Seals, you may begin the call. Speaker1 Thanks, operator, and to all of you joining us on Invesco Mortgage Capital's quarterly ...

Safehold (SAFE) Q1 2025 Earnings Call May 07, 2025 09:00 AM ET Company Participants Pearse Hoffmann - Senior Vice President of Capital Markets & Investor RelationsJay Sugarman - CEO & ChairmanBrett Asnas - CFORonald Kamdem - Managing Director & Head of US REITs and CRE ResearchTim Doherty - Chief Investment OfficerCaitlin Burrows - Vice PresidentMitch Germain - MD - Real Estate ResearchRichard Anderson - Managing Director - Equity Research Conference Call Participants Haendel Emmanuel St. Juste - Managing D ...

Financial Data and Key Metrics Changes - For Q1 2025, GAAP revenue was $97.7 million, net income was $29.4 million, and earnings per share (EPS) was $0.41, reflecting a decline in GAAP earnings year over year primarily due to a nonrecurring $1.9 million loss on a preferred equity investment [11][12] - Excluding the one-time loss, Q1 EPS increased slightly year over year, driven by higher net earnings on investment fundings and percentage rent [12] - The portfolio currently earns a 3.7% cash yield and a 5.4% annualized yield, with an economic yield of 5.8% [12][13] Business Line Data and Key Metrics Changes - The total portfolio at quarter end was $6.8 billion, with an estimated GLTV of 52% and rent coverage of 3.5 times [9][15] - The company funded a total of $20 million in Q1, consisting of $16 million in ground lease fundings and $4 million related to leasehold loans [10] - The ground lease portfolio has grown 20 times by both book value and estimated unrealized capital appreciation since the IPO, with 85 multifamily ground leases now comprising 58% of the portfolio [10] Market Data and Key Metrics Changes - The company has nonbinding LOIs totaling approximately $386 million for potential commitments across 11 ground leases and four loans, with six of the ground leases focused on affordable housing [7][9] - The portfolio GLTV increased from 49% to 52% quarter over quarter, reflecting the largest office revaluation quarter [14][15] Company Strategy and Development Direction - The company aims to reach a scale that unlocks the full value of the business for shareholders while expanding the customer base that can benefit from long-term lower-cost capital [4][5] - The management is focused on capital recycling and evaluating opportunities to address the public versus private valuation disconnect [35][21] Management's Comments on Operating Environment and Future Outlook - The management noted that while the market remains volatile, there are signs of stabilization, and they are optimistic about the pipeline of deals [6][19] - The management expressed confidence in the ability to close the majority of the deals in the pipeline within the year, despite the challenges posed by market conditions [31][61] Other Important Information - The company ended the quarter with approximately $1.3 billion of liquidity, supported by potential available capacity in joint ventures [9][17] - The company has a weighted average debt maturity of approximately 19 years and no corporate maturities due until 2027 [17] Q&A Session Summary Question: Can you provide more details on the sponsors and markets related to the nonbinding LOIs? - The pipeline includes a robust mix of multifamily deals, with diverse locations across the West Coast, Southeast, Northeast, and Midwest [25][26] Question: What are the benefits of ground leases versus leasehold loans? - Leasehold loans provide more certainty in volatile markets and can help kickstart transactions that are stalled [27] Question: Can you quantify the closed deals from the LOIs? - The majority of the deals in the pipeline are expected to close this year, with timing varying based on construction versus recap deals [31] Question: What is the company's strategy regarding joint ventures? - The company is exploring opportunities for joint ventures to unlock value from the existing portfolio while focusing on larger scale deals with current partners [65][66] Question: How does the company view the current market volatility? - The management acknowledged ongoing volatility but noted that it has tightened, allowing sponsors to make clearer long-term capital decisions [44][61] Question: What is the outlook for S&P ratings? - The company is in dialogue with S&P and aims to achieve a third single A rating through prudent capital management and continued deal origination [82]

Cherry Hill Mortgage Investment Corporation (CHMI) Q1 2025 Earnings Call May 06, 2025 05:00 PM ET Company Participants Garrett Edson - Managing DirectorJay Lown - President and CEOJulian Evans - Chief Investment OfficerMichael Hutchby - Chief Financial OfficerRandy Binner - Managing DirectorJason Stewart - Director - Mortgage FinanceMikhail Goberman - VP - Equity ResearchRaymond Slater - Senior VP & MSR Portfolio Manager Operator Good day, and welcome to the Cherry Hill Mortgage Investment Corporation First ...

Cherry Hill Mortgage Investment Corporation (CHMI) Q1 2025 Earnings Call May 06, 2025 05:00 PM ET Speaker0 Good day, and welcome to the Cherry Hill Mortgage Investment Corporation First Quarter twenty twenty five Earnings Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. Instructions will be given at that time. As a reminder, this call may be recorded. I would now like to turn the call over to Garrett Edson with ICR ...

Arbor Realty Trust (ABR) Q1 2025 Earnings Call May 02, 2025 10:00 AM ET Company Participants Paul Elenio - EVP & CFOIvan Kaufman - Founder, Chairman & CEOJade Rahmani - Managing DirectorLeon Cooperman - Chairman and CEO Conference Call Participants Steven Delaney - AnalystRick Shane - Analyst Operator Good morning, ladies and gentlemen, and welcome to the First Quarter twenty twenty five Arbor Realty Trust Earnings Conference Call. Please be advised that today's conference is being recorded. I would now lik ...

Financial Data and Key Metrics Changes - The company reported distributable earnings of $57.3 million or $0.28 per share, and $0.31 per share excluding one-time realized losses from the sale of two REO assets [19] - The return on equity (ROE) for the first quarter was approximately 10% [19] - The company anticipates a quarterly distributable earnings guidance of $0.30 to $0.35 for 2025 [19] Business Line Data and Key Metrics Changes - The balance sheet lending platform originated $370 million in new bridge loans during the first quarter, with a full-year guidance of $1.5 billion to $2 billion [12][13] - The agency business had a slow first quarter, producing $6 million in originations and $731 million in loan sales, maintaining strong margins of 1.75% [25] - The investment portfolio grew to $11.5 billion at March 31, with an all-in yield of 7.85% [26] Market Data and Key Metrics Changes - The company experienced a reduction in delinquencies, down 20% to $654 million at March 31 compared to $819 million at December 31 [22] - The average yield on core investments decreased to 8.15% from 8.52% due to a reduction in the average SOFR rate [26] - The overall net interest spread in core assets decreased to 1.26% from 1.44% [28] Company Strategy and Development Direction - The company is focused on resolving REO assets and delinquencies, viewing 2025 as a transitional year to set up for growth in 2026 [18] - The company plans to leverage efficiencies in the securitization market to drive higher returns on capital [6][18] - The strategy includes repositioning underperforming assets to improve occupancy and net operating income (NOI) [11] Management's Comments on Operating Environment and Future Outlook - Management noted significant uncertainty and volatility in the interest rate environment, impacting the ability to predict future performance [8] - The company expects continued challenges in the short term due to the drag on earnings from REO assets and delinquencies [12] - If interest rates decrease, it could positively impact the company's ability to convert non-interest earning assets into income-producing investments [11] Other Important Information - The company has successfully modified $38 million of loans and brought $39 million of loans back to full performance [10] - The company took back $197 million of REO assets in the first quarter, with expectations to increase REO assets to between $400 million and $500 million [52] - The company has managed to deleverage its business by 30%, reducing the leverage ratio to 2.8:1 [29] Q&A Session Summary Question: Outlook for the Bridge Loan Portfolio - Management expects net growth in the bridge loan portfolio in 2025, targeting $1.5 billion to $2 billion in new business [32][34] Question: Reasons for Poor Performance in Previous Vintages - Management attributed poor performance to a combination of market corrections, economic factors, and inexperienced management in the multifamily sector [40][42] Question: Liquidity and NPLs Expectations - The company currently has $325 million in cash and liquidity, with expectations for NPLs to decrease as they work through the REO assets [48][54] Question: Non-Cash Income and Interest - The company reported $15.3 million of non-cash interest during the quarter, which is a moving number based on loan modifications [65][66] Question: Interest Rate Environment - Management discussed the impact of interest rates on business performance, noting that lower rates could enhance earnings potential [72][74]