Great Ajax(US:AJX)2021-11-06 17:31Financial Data and Key Metrics Changes - The overall cost of funds decreased by almost 30 basis points in Q3 2021, contributing to an increase in net interest income to approximately $18.1 million, which includes a $3.7 million acceleration of income on loans [3][14][19] - Net income attributable to common stockholders was $9.3 million or $0.40 per share after preferred dividends [14] - Book value increased to $16 per share at September 30, 2021, compared to $15.86 at June 30, 2021 [16] Business Line Data and Key Metrics Changes - Purchased reperforming loans (RPLs) represented approximately 88% of the loan portfolio at September 30, down from 96% at June 30 [21] - The company purchased $87.5 million in nonperforming loans (NPLs) with a total owing balance of approximately $96 million during Q3 [17] - Approximately 76.6% of the loan portfolio made at least 12 of the last 12 payments, up from 13% at the time of purchase [11][25] Market Data and Key Metrics Changes - California remains the largest segment of the loan portfolio, with consistent payment and performance patterns observed [23] - The company has seen strong prepayment patterns in various markets, particularly in Southern California, which has outperformed expectations during the COVID pandemic [23] - Demand and prices for homes have increased significantly in several metro areas, including Florida, Phoenix, Dallas, and Atlanta [24] Company Strategy and Development Direction - The company is in an offensive position, actively purchasing loans with specific characteristics at low percentages of underlying property value [4] - The strategy includes leveraging analytics and sourcing capabilities to broaden investment reach through joint ventures with institutional investors [8] - The company aims to maintain low leverage, with a corporate leverage ratio of 2.2 times as of September 30, 2021 [8] Management's Comments on Operating Environment and Future Outlook - Management noted that the impact of the COVID-19 economic environment on regular payment performance has been less than expected, with ongoing increases in loan cash flow velocity [11][26] - The company expects further reductions in interest expense as the cost of funds continues to decrease [14] - Management expressed optimism regarding the investment potential created by market volatility and the opportunities in the pipeline [5] Other Important Information - The company completed one rated securitization and a joint venture structure totaling $517 million in UPB during Q3 [17] - Approximately 28% of full loan payoffs in Q3 2021 were from loans over 180 days delinquent, up from 20% in Q2 [12] - The company declared a cash dividend of $0.24 to be paid on November 29, 2021 [27] Q&A Session Summary - There were no questions during the Q&A session, and the call concluded without further inquiries [30]