New York Mortgage Trust(US:NYMT)2025-05-01 14:02Financial Data and Key Metrics Changes - The recurring earnings in Q1 2025 increased to a level consistent with the company's dividend of $0.20 per share, reflecting a strategic portfolio restructuring initiated two years ago [6][7] - Earnings Available for Distribution (EAD) per share rose to $0.20 in Q1 2025 from $0.16 in Q4 2024, while quarterly EPS contribution from adjusted net interest income increased to $0.40 per share, up from $0.36 in the prior quarter [13][14] - GAAP book value and adjusted book value per share increased to $9.37 and $10.43 respectively, representing a 1% increase compared to the end of 2024 [17] Business Line Data and Key Metrics Changes - Agency RMBS investments now account for over 50% of company assets, with approximately $1.5 billion of Agency RMBS purchased in Q1 2025, nearly four times more than the previous quarter [11][18] - In the residential credit sector, $397 million of whole loans were purchased, with a focus on bridge loans and rental loans [19][20] Market Data and Key Metrics Changes - The market experienced spread widening in Agency RMBS and residential credit, with current coupon agency spreads widening from 135 basis points to 143 basis points in Q1 2025 [22][23] - As of April 2025, adjusted book value is estimated to be down approximately 1.5% [38] Company Strategy and Development Direction - The company aims to maintain a flexible capital allocation strategy, focusing on Agency RMBS and residential credit depending on market conditions [21][40] - The strategic shift towards high liquid agency RMBS and short-duration credit assets has enhanced the company's ability to generate recurring income [7][27] Management Comments on Operating Environment and Future Outlook - Management noted that the geopolitical situation may lead to further market volatility, but they are prepared to deploy liquidity in attractive assets [21][22] - The company does not foresee immediate impacts from potential GSE reforms on their activities, indicating a cautious outlook for the near to medium term [32][33] Other Important Information - The company successfully increased its excess liquidity by nearly 20% from the previous quarter, ending Q1 2025 with $407 million of excess liquidity [8] - General and administrative expenses increased slightly due to non-recurring employee severance costs related to restructuring initiatives [16] Q&A Session Summary Question: Impact of potential GSE reform on business and mortgage market - Management indicated that GSE reform could lead to higher mortgage rates and liquidity issues, but they do not expect significant changes in the near term [31][33] Question: Update on book value performance in Q2 - As of April 2025, adjusted book value is estimated to be down approximately 1.5% [38] Question: Capital allocation strategy amidst market volatility - Management confirmed a continued focus on Agency RMBS and BPL, with a preference for BPL rental over BPL bridge loans [39][41] Question: Timing surrounding mezzanine and multifamily investments - The 10% payoff rate mentioned was year-to-date as of early April, with expectations for continued robust resolutions in the multifamily mezzanine portfolio [43][44]