New York Mortgage Trust(US:NYMT)2022-02-18 19:02Financial Data and Key Metrics Changes - The company generated GAAP earnings per share of $0.06 for Q4 2021, with undepreciated EPS at $0.08 per share, reflecting a $0.02 increase [10][21] - Book value per share ended at $4.70, or $4.74 on an undepreciated basis, down $0.02 from the previous quarter [21][108] - The total rate of return for 2021 was 11.7%, with G&A expenses remaining close to 2% [11][31] - Net interest margin for Q4 was 3.63%, an increase of 38 basis points from the previous quarter [22] Business Line Data and Key Metrics Changes - The company added nearly $800 million in new investments during Q4, setting a record, although earnings did not fully benefit due to timing of asset settlements [12] - Net interest income was $30.8 million, relatively flat compared to the previous quarter, with a slight increase in single-family interest income [24] - Non-interest income totaled $39.3 million, primarily from net unrealized gains of $15.5 million [26] Market Data and Key Metrics Changes - The company noted that housing affordability is close to the long-run average, with mortgage costs at about 23% of first-time homebuyers' income [34] - The supply of homes available for sale was below 1 million units, correlating to 1.8 months of supply in the market, indicating a tight housing market [35] Company Strategy and Development Direction - The core strategy remains unchanged, focusing on short-term bridge loans and taking advantage of market conditions [34] - The company is committed to driving earnings higher by growing its portfolio organically through unencumbered loans [15] - The company has locked in a flow agreement for 50% of production from a large originator in the BPL space, enhancing growth in the single-family sector [38] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for portfolio growth and earnings generation in 2022, with anticipated high investment levels [45] - The company is prepared to take advantage of market volatility and is actively looking for opportunities to acquire assets at lower prices [86] Other Important Information - The company has initiated a $200 million buyback program due to recent market volatility [13] - The company expects to continue reporting undepreciated EPS and book value to reflect the true value of its rental property portfolio [52] Q&A Session Summary Question: Outlook and opportunity in the fix-and-flip space - Management indicated that they expect fix-and-flip volumes to increase due to new agreements and market conditions [57] Question: Comments on offensive posture for new investment opportunities - Management discussed focusing on short-duration products to mitigate interest rate risk and highlighted the potential for higher coupons in the current market [62] Question: Revenue and expenses outlook for operating real estate portfolio - Management expects revenue from JV investments to grow significantly as more investments close [68] Question: Anticipated growth in multifamily capital allocation - Management indicated that multifamily capital allocation is expected to grow opportunistically based on market conditions [72] Question: Changes in loan pricing in 2022 - Management noted an estimated 1.5% loss to book value due to market changes and emphasized a focus on high coupon, short-duration loans [82] Question: Origination volume from BPL rental partnership - Management expects a minimum of $0.5 billion in loans from the partnership in the first year, with potential for growth [89]