Financial Performance - Net income attributable to common stockholders was $0.33 per share for the first quarter of 2025[247]. - Earnings available for distribution was $0.20 per share for the first quarter of 2025, indicating continued momentum in portfolio growth and income generation[247]. - Net income attributable to the Company's common stockholders for Q1 2025 was $30,285,000, with a basic earnings per share of $0.33[269]. - Net income attributable to the company for the three months ended March 31, 2025, was $42.155 million, a significant improvement from a net loss of $57.901 million in 2024[282]. - Basic earnings per common share improved to $0.33 in 2025 from a loss of $0.75 in 2024, an increase of $1.08[282]. - GAAP net income attributable to common stockholders for Q1 2025 was $30,285, compared to a loss of $68,340 in Q1 2024[322]. - Earnings available for distribution (EAD) attributable to common stockholders increased to $18,194 in Q1 2025 from $2,117 in Q1 2024[322]. Investment Portfolio - The total investment portfolio reached $8.26 billion as of March 31, 2025, after accounting for acquisitions and repayments[242]. - The company’s residential loans at fair value increased to $2.95 billion as of March 31, 2025, from $2.88 billion at the end of 2024[242]. - Agency RMBS holdings grew to $4.56 billion as of March 31, 2025, up from $3.14 billion at the end of 2024[242]. - The company purchased approximately $1.5 billion of Agency RMBS with an average coupon of 5.35% during Q1 2025[272]. - The total investment portfolio carrying value as of March 31, 2025, was $8,270,581,000[276]. - The investment securities portfolio's fair value increased to $4.794 billion as of March 31, 2025, from $3.977 billion on December 31, 2024, marking an increase of approximately 20.5%[350]. - The total fair value of residential loan securitizations increased to $1.554 billion as of March 31, 2025, compared to $1.253 billion on December 31, 2024, representing a growth of approximately 24%[348]. Debt and Financing - The company issued $82.5 million of 9.125% Senior Notes due 2030, receiving $79.3 million in net proceeds primarily used to purchase Agency RMBS[250]. - The company had $100.0 million in 5.75% Senior Notes due 2026, with a total cost of approximately 6.64%[390]. - The Company had commitments to fund up to $184.8 million of additional advances on existing business purpose loans as of March 31, 2025[424]. - The common stock repurchase program had $189.7 million remaining available as of March 31, 2025, and it also expires on March 31, 2026[419]. - The company reported redeemable non-controlling interests of approximately $13.4 million as of March 31, 2025, related to its joint venture equity investments[373]. Economic Environment - The U.S. GDP contracted by 0.3% in the first quarter of 2025, marking the first quarter of contraction since Q1 2022, compared to a 2.4% growth in Q4 2024[255]. - The unemployment rate in the U.S. was 4.2% at the end of March 2025, slightly up from 4.1% at the end of December 2024, with 7.1 million unemployed persons[256]. - Effective rents for professionally managed apartments grew 1.1% for the twelve months ended March 2025, but there were significant regional disparities[260]. - Investment grade credit spreads widened by 15 basis points and high-yield spreads by 63 basis points during the first quarter of 2025[261]. Asset Management and Strategy - The company is repositioning its business by opportunistically disposing of joint venture equity investments in multi-family properties[243]. - The company expects to continue opportunistically disposing of assets from its multi-family portfolio while focusing on investments in the residential housing sector[251]. - The company has maintained its qualification as a REIT, which allows it to avoid federal income tax on distributed taxable income[245]. - The company actively manages its portfolio and continuously adjusts the size and composition of its asset and derivative hedge portfolios[433]. Interest Income and Expenses - Interest income increased by 55% and adjusted interest income increased by more than 57% for the first quarter of 2025 compared to the same period in 2024[247]. - Interest income for the same period was $129,734,000, while interest expense was $96,636,000, resulting in a net interest income of $33,098,000[269]. - The yield on average interest-earning assets was reported at 6.47%[269]. - Interest expense increased to $96.636 million in 2025 from $66.029 million in 2024, an increase of 46.5%[282]. - Adjusted interest expense for Q1 2025 was $86,560, up from $51,896 in Q1 2024, marking an increase of approximately $34.7 million[310][314]. Real Estate and Loans - The company’s weighted average loan-to-value (LTV) ratio for business purpose rental loans was 73% as of March 31, 2025[337]. - The delinquency status shows that 91.3% of loans were current as of March 31, 2025, a slight increase from 91.2% at the end of 2024[342]. - The weighted average credit score at purchase for the underlying loans was 765 as of March 31, 2025, compared to 767 at the end of 2024[342]. - The company had a net investment in Consolidated SLST of $149.4 million as of March 31, 2025, slightly down from $149.8 million at the end of 2024[347]. Cash Flow - The Company generated net cash flows from operating activities totaling $25.8 million during the three months ended March 31, 2025[401]. - Net cash flows used in investing activities were $794.2 million, primarily due to purchases of investment securities and residential loans[402]. - Net cash flows provided by financing activities were $713.8 million, mainly from proceeds received from repurchase agreements and the issuance of CDOs and senior unsecured notes[405]. Risk Management - Changes in interest rates could significantly impact adjusted net interest income, with a +200 basis points change resulting in a decrease of $90,470 thousand[433]. - The company utilizes interest rate caps and swaps to manage interest rate risk in its portfolio[431]. - The company may be required to enter into interest rate cap contracts for variable-rate mortgages payable in its Consolidated Real Estate VIEs[416].

Financial Performance - Net income attributable to common stockholders for Q1 2025 was $30,285,000, with earnings per share of $0.33[3] - Net income attributable to the company's common stockholders for Q1 2025 was $30,285 thousand, compared to a net loss of $68,340 thousand in Q1 2024, indicating a significant turnaround[28] - Basic earnings per common share for Q1 2025 was $0.33, compared to a loss of $(0.75) per share in Q1 2024[28] - GAAP net income attributable to common stockholders for Q1 2025 was $30.285 million, compared to a loss of $41.828 million in Q4 2024[44] - Earnings available for distribution (EAD) attributable to common stockholders for Q1 2025 was $18.194 million, up from $14.178 million in Q4 2024[44] Interest Income and Expenses - Interest income for the quarter was $129,734,000, while interest expense totaled $96,636,000, resulting in net interest income of $33,098,000[3] - Interest income rose to $129,734 thousand in Q1 2025, up from $83,892 thousand in Q1 2024, marking an increase of 54.7%[28] - Total net interest income rose to $33.098 million, compared to $26.711 million in the prior quarter, reflecting a 24.5% increase[30] - The yield on average interest earning assets was 6.47%, with a net interest spread of 1.32%[3] - The yield on average interest-earning assets was 6.47%, slightly down from 6.57% in the previous quarter[30] - The net interest spread was 1.32%, consistent with the previous quarter's spread of 1.37%[30] Investment Activities - The company purchased approximately $1.5 billion of Agency RMBS with an average coupon of 5.35% and $396.8 million in residential loans with an average gross coupon of 9.33%[5] - Two securitizations of residential loans generated approximately $326.3 million in net proceeds after expenses[8] - Total investment portfolio carrying value was $8,270,581,000 as of March 31, 2025[11] Assets and Liabilities - Total assets increased to $10,004,055 thousand as of March 31, 2025, up from $9,217,282 thousand as of December 31, 2024, representing an increase of approximately 8.5%[26] - Total liabilities increased to $8,585,743 thousand as of March 31, 2025, from $7,806,148 thousand as of December 31, 2024, an increase of approximately 9.9%[26] - The company's equity investments at fair value decreased to $93,999 thousand as of March 31, 2025, down from $113,492 thousand as of December 31, 2024, a decline of 17.2%[26] Shareholder Actions - The company repurchased 231,200 shares of common stock for a total cost of approximately $1.5 million, averaging $6.50 per share[7] - The company completed the issuance of $82.5 million in Senior Notes due 2030, with net proceeds of approximately $79.3 million[8] Operational Metrics - The adjusted book value per common share at the end of the period was $10.43, with an economic return on adjusted book value of 2.71%[3] - Adjusted book value per common share as of March 31, 2025, was $10.43, compared to $10.35 as of December 31, 2024[50] - The company’s total general, administrative, and operating expenses were $25,102 thousand for Q1 2025, slightly up from $24,341 thousand in Q1 2024[28] Changes in Accounting Measures - The company has transitioned to presenting earnings available for distribution (EAD) starting from Q1 2025, replacing the previously used undepreciated earnings measure[39] - EAD is defined as GAAP net income excluding various non-recurring and non-cash items, providing a clearer indication of the company's income-generating capacity[41] - The Board of Directors considers EAD among other factors when determining dividend distributions, but it does not guarantee dividend payments[43] Real Estate Performance - The company reported a total net loss from real estate of $(2,235) thousand for Q1 2025, an improvement from a loss of $(16,369) thousand in Q1 2024[28] - The company recorded realized losses of $41.1 million in Q1 2025, compared to $9.947 million in Q4 2024[44] - Unrealized gains for Q1 2025 were $(118.203) million, a significant change from the $131.576 million in Q4 2024[44] Business Repositioning - The strategic repositioning included the acquisition of Agency RMBS and business purpose loans, aimed at expanding interest income levels[40] - The company is repositioning its business by opportunistically disposing of joint venture equity investments in multi-family properties[52] - As of March 31, 2025, the company has classified certain joint venture equity investments as held for sale[52]

Real Estate Investments - As of December 31, 2024, the company owned 526 single-family rental properties, primarily located in Illinois and Maryland [30]. - The company has reduced exposure in its disposal group of multi-family investments to $19.5 million over two multi-family properties, generating net gains of approximately $16.0 million from the disposal of 15 multi-family properties [41]. - The company anticipates allocating less capital to multi-family investments going forward, focusing on preferred equity investments and mezzanine loans [32]. - The company owned approximately $139.4 million of preferred equity interests in a joint venture that owns 10 multi-family properties as of December 31, 2024 [40]. - The company has a 50% equity interest in an entity that originates residential loans as of December 31, 2024 [44]. - The company may consolidate certain multi-family joint venture equity investments and preferred equity investments into its consolidated financial statements in accordance with GAAP [52]. - As of December 31, 2024, the company's total equity ownership interest in multi-family properties was $1,394.72 million, a decrease from $1,579.61 million in 2023, reflecting an accumulated deficit of $1,430.68 million [443]. Financial Performance - As of December 31, 2024, the company had approximately $9.2 billion in total assets, an increase from approximately $7.4 billion as of December 31, 2023 [384]. - The company generated net cash flows from operating activities of $14.1 million during the year ended December 31, 2024 [450]. - The net cash flows used in investing activities amounted to $2.2 billion, primarily due to purchases of investment securities and residential loans [451]. - As of December 31, 2024, the company reported net cash flows from financing activities of $2.2 billion, primarily from repurchase agreements and issuance of CDOs [454]. Leverage and Debt - The company's maximum leverage ratios are 15:1 for more liquid Agency securities, between 4:1 and 6:1 for more illiquid assets, and 8:1 for residential loans, with a target total debt leverage ratio not greater than 4:1 [46]. - As of December 31, 2024, the company's recourse leverage ratio was approximately 3.0 to 1, and the portfolio recourse leverage ratio was approximately 2.9 to 1 [48]. - The company employs leverage through repurchase agreements, with terms ranging from 30 days to 24 months, linked to the Secured Overnight Funding Rate (SOFR) [49]. - The company’s recourse leverage ratio was approximately 3.0 to 1 as of December 31, 2024, indicating the level of debt relative to stockholders' equity [463]. - Total contractual obligations amount to $4,329,259,000, including projected interest payments [477]. - Repurchase agreements account for $4,049,232,000 of the total obligations [477]. Investment Securities - The investment securities portfolio increased in carrying value as of December 31, 2024, primarily due to purchases of Agency RMBS, non-Agency RMBS, and U.S. Treasury securities [402]. - As of December 31, 2024, the total investment securities amounted to $5,669,393,000, with an amortized cost of $4,083,247,000, resulting in unrealized losses of $130,099,000 [403]. - The total fair value of Agency RMBS as of December 31, 2024, was $3,136,812,000, with a weighted average yield of 5.88% [403]. - The total fair value of non-Agency RMBS was $69,687,000, with a weighted average yield of 14.02% [403]. - The total fair value of U.S. Treasury securities was $622,045,000, with a weighted average yield of 4.13% [403]. Employee and Diversity Metrics - As of December 31, 2024, the company had 70 full-time employees across its offices in New York, Charlotte, and Woodland Hills [62]. - Women comprised 29% of the total workforce, while 33% of employees self-identified as ethnically diverse as of December 31, 2024 [63]. Risk Management - The company utilizes interest rate swaps to hedge variable cash flows associated with its variable-rate borrowings [56]. - The company may utilize model-based risk analysis to project asset price and cash flow sensitivities over various interest rates and market scenarios [59]. - The company believes that existing statutes and regulations have not had a material adverse effect on its business [66]. Shareholder Returns and Dividends - The company is committed to distributing at least 90% of its ordinary taxable income each year to qualify as a REIT under the Internal Revenue Code [68]. - The company’s dividend policy will be evaluated quarterly, with adjustments based on earnings, financial condition, and other relevant factors [471]. - During the year ended December 31, 2024, the company repurchased 587,347 shares of common stock for approximately $3.5 million, averaging $5.95 per share [469]. - The company did not repurchase any shares of preferred stock during the year ended December 31, 2024, leaving $97.6 million available under the preferred stock repurchase program [468]. Mezzanine Lending - The company’s mezzanine lending strategy may include preferred equity and mezzanine loans secured by multi-family real estate assets [412]. - As of December 31, 2024, the total fair value of the Mezzanine Lending portfolio is $176.6 million, down from $211.7 million as of December 31, 2023, representing a decrease of approximately 16.6% [417]. - The weighted average preferred return rate for the Mezzanine Lending portfolio increased to 12.9% as of December 31, 2024, compared to 12.5% as of December 31, 2023 [420]. - The Company recorded a defaulted preferred equity investment, which represents 1.8% of the total investment amount of the Mezzanine Lending portfolio, reducing its fair value to zero [415].

Financial Performance - Net loss attributable to common stockholders for Q4 2024 was $41.8 million, or $0.46 per share, and for the full year 2024 was $103.8 million, or $1.14 per share[3]. - The economic return on book value for the full year 2024 was -10.88%[3]. - Net interest income for the three months ended December 31, 2024, was $26,711,000, an increase of 59.5% compared to $16,800,000 for the same period in 2023[27]. - Total net loss from real estate for the three months ended December 31, 2024, was $(5,871,000), a slight improvement from $(6,807,000) in the same period of 2023[27]. - Total other (loss) income for the three months ended December 31, 2024, was $(31,710,000), compared to $40,685,000 for the same period in 2023[27]. - Net (loss) income attributable to the company for the three months ended December 31, 2024, was $(31,389,000), compared to $41,908,000 for the same period in 2023[27]. - Basic (loss) earnings per common share for the three months ended December 31, 2024, was $(0.46), down from $0.35 in the same period of 2023[27]. Interest Income and Expenses - Adjusted interest income increased by 11% in Q4 2024, contributing to a year-over-year growth of 60%[9]. - Interest income for the year ended December 31, 2024, was $401.3 million, while interest expense was $317.4 million, resulting in net interest income of $83.9 million[3]. - The yield on average interest earning assets was 6.57% for Q4 2024 and 6.54% for the full year 2024[3]. - Yield on average interest-earning assets for the three months ended December 31, 2024, was 6.57%, compared to 6.21% for the same period in 2023[29]. - Net interest spread for the three months ended December 31, 2024, was 1.37%, an increase from 1.02% in the same period of 2023[29]. - For the three months ended December 31, 2024, GAAP interest income was $118,253,000, with a total net interest income of $26,711,000[35]. Asset and Liability Growth - The company's portfolio grew by $2.2 billion, or 44%, primarily through acquisitions in liquid agency bond markets and higher-spread bridge loan markets[9]. - Total assets increased to $9,217,282 thousand as of December 31, 2024, up from $7,401,328 thousand in 2023, representing a growth of approximately 24.5%[25]. - Total liabilities grew to $7,806,148 thousand in 2024, up from $5,773,202 thousand in 2023, indicating a rise of around 35.2%[25]. - Repurchase agreements surged to $4,012,225 thousand in 2024, compared to $2,471,113 thousand in 2023, an increase of approximately 62.3%[25]. - Cash and cash equivalents decreased to $167,422 thousand in 2024 from $187,107 thousand in 2023, a decline of approximately 10.5%[25]. Stock and Shareholder Information - The company repurchased 587,347 shares of common stock for approximately $3.5 million at an average repurchase price of $5.95 per share[8]. - The company announced extensions of its common stock and preferred stock repurchase programs, with $189.7 million and $97.6 million remaining available for repurchase, respectively[8]. - Book value per common share as of December 31, 2024, was $9.28, a decrease from $11.31 as of December 31, 2023[29]. - The common shares outstanding as of December 31, 2024, are 90,575, with a GAAP book value per common share of $9.28 and an adjusted book value per common share of $10.35[45]. Future Plans and Reporting - The company plans to file its Annual Report on Form 10-K for the year ended December 31, 2024, with the SEC on or about February 21, 2025[16]. - The conference call to discuss financial results is scheduled for February 20, 2025, at 9:00 a.m. Eastern Time[15]. Business Strategy and Management - The company is internally managed and primarily invests in mortgage-related single-family and multi-family residential assets[17]. - The Company has repositioned its business to opportunistically dispose of joint venture equity investments in multi-family properties as of September 2022[47]. - The Company consolidates the assets, liabilities, income, and expenses of VIEs where it is the primary beneficiary, impacting its financial statements significantly[46]. Depreciation and Adjustments - The cumulative depreciation expense on real estate as of December 31, 2024, is $20.837 million, reflecting ongoing asset management strategies[45]. - The cumulative adjustment of redeemable non-controlling interest to estimated redemption value is $40.675 million as of December 31, 2024, up from $30.062 million in December 2023[45]. - The adjusted book value as of December 31, 2024, is $937.361 million, compared to $1,147.533 million in December 2023, indicating a decline of about 18.3%[45].

Investment Portfolio - As of September 30, 2024, the total investment portfolio amounted to $6,862,803,000, reflecting an increase from $5,911,537,000 as of June 30, 2024[247]. - The residential loans portfolio increased to $2,768,561,000, up from $2,498,247,000, with acquisitions of $624,163,000 and repayments of $267,832,000 during the quarter[247]. - Agency RMBS holdings rose to $2,967,966,000, with acquisitions of $372,162,000 and fair value changes contributing $61,283,000[247]. - The company reported a total of $3,542,766,000 in investment securities, which includes $736,035,000 in new acquisitions and $84,675,000 in repayments[247]. - Preferred equity investments and mezzanine loans totaled $234,447,000, with a decrease of $5,100,000 due to repayments[247]. - Equity investments in consolidated multi-family properties decreased to $154,462,000, reflecting a reduction of $15,011,000 due to disposals[247]. - The investment portfolio increased by approximately $3.1 billion from December 31, 2022, to September 30, 2024, with adjusted interest income rising by over 70% compared to the same period last year[252]. - The company allocated $1,113,345,000 in net capital to single-family residential loans as of September 30, 2024[277]. - The carrying value of the company's investment securities portfolio increased to $4.89 billion as of September 30, 2024, compared to $3.34 billion as of December 31, 2023[349]. Financial Performance - For the three months ended September 30, 2024, the net income attributable to the Company's common stockholders was $32,410,000, compared to a net loss of $61,957,000 for the nine months ended the same date[272]. - The net income attributable to the Company for the three months ended September 30, 2024, was $42,849, a significant improvement of $127,358 compared to a net loss of $84,509 in the same period of 2023[282]. - The basic earnings per common share for the three months ended September 30, 2024, was $0.36, compared to a loss of $1.04 per share in the same period of 2023, reflecting a turnaround of $1.40[282]. - Total other income for the three months ended September 30, 2024, was $52,875, a substantial increase of $138,818 compared to a loss of $85,943 in the same period of 2023[282]. - The company reported a comprehensive income attributable to common stockholders of $32,410,000 for the three months ended September 30, 2024, compared to a comprehensive loss of $94,884,000 in 2023[302]. - The company recognized a gain of $17,903,000 on the sale of real estate during the three months ended September 30, 2024[298]. - The company reported total realized losses, net of $19,404,000 for the nine months ended September 30, 2024, a decrease of $17,184,000 compared to $2,220,000 in the same period of 2023[286]. Interest Income and Expense - For the three months ended September 30, 2024, interest income increased to $108,361, up $43,166 from $65,195 in the same period of 2023, while interest expense rose to $88,124, an increase of $39,718 from $48,406[282]. - The yield on average interest-earning assets for the third quarter of 2024 was 6.69%, an increase from 6.52% for the nine months ended September 30, 2024[272]. - Adjusted interest income for Q3 2024 was $100,986, an increase of approximately $41.7 million compared to Q3 2023[310]. - Adjusted net interest income for Q3 2024 was $28,690, compared to $20,655 in Q3 2023, reflecting a year-over-year increase of 38.7%[311]. - The average financing cost for Q3 2024 was -5.37%, slightly higher than -5.13% in Q3 2023, influenced by base interest rate movements[310][311]. - Adjusted interest expense for Q3 2024 increased by approximately $33.7 million compared to Q3 2023, primarily due to increased repurchase agreement financing[316]. Market Conditions and Economic Indicators - The Federal Reserve cut the target range for the federal funds rate by 50 basis points in September 2024, marking the first cut since March 2020[262]. - The U.S. GDP grew by 2.8% in the third quarter of 2024, marking ten consecutive quarters of growth[260]. - The unemployment rate remained flat at 4.1% as of September 2024, with average hourly earnings rising by 4.0% year-over-year[261]. - Home prices increased by 5.9% for the 20-City Composite over July 2024, while existing home sales in August 2024 were down 4.2% year-over-year[264]. - Multi-family housing starts averaged a seasonally adjusted annual rate of 341,667 for the three months ended September 30, 2024, down from 459,417 for the year ended December 31, 2023[265]. Risks and Challenges - The company continues to face risks related to market volatility, interest rates, and credit spreads, which could impact future performance[244]. - The company continues to face regulatory and political headwinds that may impact cash flows and valuations for multi-family and single-family rental properties[266]. - Interest rate changes could significantly impact the Company's net interest income, with potential declines of $72,912 thousand for a +200 basis points increase and increases of $72,808 thousand for a -200 basis points decrease[427]. - Liquidity risk arises from financing long-maturity assets with shorter-term financings, and the Company manages liquidity needs daily to avoid unplanned asset sales[430]. - The Company faces margin call risk on repurchase agreements, which could adversely affect liquidity if asset values decrease[431]. Asset Management and Strategy - The company aims to deliver long-term stable distributions to stockholders through a diversified investment portfolio, focusing on mortgage-related assets[250]. - The investment strategy includes reallocating capital away from joint venture equity investments in multi-family properties[247]. - The company plans to focus on acquiring assets capable of growing interest income while remaining selective in acquiring residential credit assets[256]. - The company plans to opportunistically dispose of joint venture equity investments in multi-family properties to reallocate capital to targeted assets[364]. - The company plans to continue disposing of assets from its portfolio to pursue investments in the residential housing sector, focusing on less price-sensitive assets like Agency RMBS[392]. Debt and Financing - As of September 30, 2024, the total assets of the company were approximately $8.9 billion, up from $7.4 billion as of December 31, 2023, indicating a growth of 20.3%[332]. - The company had $3.0 billion outstanding under repurchase agreements as of September 30, 2024, with a weighted average interest rate of 5.23%[352][353]. - The company issued $60.0 million in 9.125% Senior Notes due 2029, which were completed on June 28, 2024, to strengthen its capital structure[385]. - The Company had $100.0 million of 5.75% Senior Notes outstanding, maturing on April 30, 2026[403]. - The Company had $60.0 million of 9.125% Senior Notes outstanding, maturing on July 1, 2029[404]. Equity and Shareholder Returns - The Company declared dividends of $0.20 per common share for the third quarter of 2024, totaling $0.60 for the nine months ended the same date[272]. - During the nine months ended September 30, 2024, the Company repurchased 587,347 shares of common stock for a total cost of approximately $3.5 million[413]. - The Company has a preferred stock repurchase program with $97.6 million remaining available for repurchase as of September 30, 2024[412].

Financial Performance - Net income attributable to common stockholders for Q3 2024 was $32,410,000, resulting in earnings per share of $0.36[3] - Net income attributable to the company for the three months ended September 30, 2024, was $42,849,000, a turnaround from a loss of $(84,509,000) in the same period of 2023[26] - The company reported a net loss attributable to common stockholders of $(61,957,000) for the nine months ended September 30, 2024, compared to $(121,500,000) for the same period in 2023, showing improvement[26] - Basic earnings per common share for the three months ended September 30, 2024, was $0.36, compared to a loss of $(1.04) in the same period of 2023[26] Income and Expenses - Total Adjusted Net Interest Income increased by 39% year-over-year to $29 million in Q3 2024[8] - For the three months ended September 30, 2024, net interest income increased to $20,237,000 from $16,789,000 in the same period of 2023, representing a growth of 8.7%[26] - Total general, administrative, and operating expenses for the three months ended September 30, 2024, were $22,826,000, an increase from $16,987,000 in the same period of 2023[26] - The company's GAAP interest expense for the three months ended September 30, 2024, was $88,124, which included $7,375 related to Consolidated SLST CDOs[34] Assets and Liabilities - Total assets increased to $8,905,914 thousand as of September 30, 2024, up from $7,401,328 thousand at December 31, 2023, representing a growth of approximately 20.3%[24] - Total liabilities grew to $7,433,952 thousand as of September 30, 2024, compared to $5,773,202 thousand at December 31, 2023, an increase of around 29%[24] - The company reported a total of $4,051,406 thousand in assets and $3,517,298 thousand in liabilities from consolidated variable interest entities (VIEs) as of September 30, 2024[24] - The total liabilities as of September 30, 2024 are $685,107,000, which includes $492,321,000 in mortgages payable on real estate[48] Equity and Book Value - Book value per common share at the end of the period was $9.83, with an adjusted book value of $10.87[3] - The adjusted book value per common share as of September 30, 2024, was $10.87, compared to $12.93 as of September 30, 2023[28] - The company's accumulated deficit widened to $(1,371,073) thousand as of September 30, 2024, compared to $(1,253,817) thousand at the end of 2023[24] - Stockholders' equity decreased to $1,450,136 thousand from $1,600,065 thousand, a decline of about 9.4%[24] Investments and Securitization - The company completed a securitization of business purpose loans, generating approximately $235.8 million in net proceeds[7] - A joint venture sold a multi-family apartment community for approximately $56.4 million, resulting in a net gain of about $8.7 million[4] - The company owns joint venture equity investments in multi-family properties, consolidating all but two of these entities[45] - The Company is repositioning its business by classifying certain joint venture equity investments as held for sale as of September 30, 2024[46] Interest Rates and Yields - The yield on average interest earning assets was reported at 6.69% for the quarter[3] - The yield on average interest-earning assets for the three months ended September 30, 2024, was 6.69%, up from 6.03% in the same period of 2023[28] - The average financing cost for the period was calculated at $66,297, leading to a net interest spread of approximately 31.5%[34] - The net interest benefit of interest rate swaps contributed $8,453 to adjusted interest income for the three months ended September 30, 2024[34] Cash and Cash Equivalents - The company’s cash and cash equivalents increased to $195,066 thousand from $187,107 thousand, a growth of approximately 4.9%[24]

Investment Portfolio - For the three months ended June 30, 2024, the total investment portfolio amounted to $5,911,537, with acquisitions of $934,241 and repayments of $323,456[249]. - The Agency RMBS investments increased to $2,613,842, reflecting acquisitions of $467,496 and repayments of $55,537[249]. - Residential loans at fair value rose to $2,498,247, with acquisitions of $420,668 and repayments of $261,305[249]. - Non-Agency RMBS investments totaled $58,237, with acquisitions of $34,500 and minimal repayments of $131[249]. - The consolidated SLST investment securities owned by the company increased to $155,965 from $151,239[252]. - The total investment portfolio increased to approximately $4.6 billion as of June 30, 2022, up from $3.6 billion as of December 31, 2021, reflecting a growth of about 28%[255]. - As of June 30, 2024, the total investment portfolio carrying value was $5,916,484,000[281]. - The total investment securities portfolio as of June 30, 2024, was $4.457 billion, with an amortized cost of $2.896 billion and unrealized losses of $84.264 million[354]. - The carrying value of Agency RMBS increased to $3.669 billion as of June 30, 2024, from $2.634 billion as of December 31, 2023[354]. - The total carrying value of non-Agency RMBS was $401.446 million, with unrealized gains of $6.246 million as of June 30, 2024[354]. Financial Performance - For the three months ended June 30, 2024, the net loss attributable to the company's common stockholders was $26,028,000, resulting in a loss per share of $0.29[275]. - The company reported interest income of $90,775,000 and interest expense of $71,731,000 for the same period, leading to a net interest income of $19,044,000[275]. - Adjusted interest income increased by more than 50% compared to the same period last year, driven by higher business purpose loan acquisition volumes[255]. - The company’s economic return on book value was -3.13% for the three months ended June 30, 2024[275]. - The company reported a net loss from real estate of $13,106 for the three months ended June 30, 2024, compared to a loss of $7,755 in the same period of 2023, indicating a deterioration of 68.9%[289]. - The Company’s net interest income for the three months ended June 30, 2024, was $19,044, an increase from $15,136 in the same period of 2023, marking a growth of 19.1%[287]. - The Company’s basic loss per common share for the three months ended June 30, 2024, was $(0.29), an improvement from $(0.41) in the same period of 2023[287]. - The Company recognized $17.5 million in net realized losses during the six months ended June 30, 2024, primarily from foreclosed properties and residential loan sales[291]. - The Company reported a net interest benefit of $16,622 thousand from interest rate swaps for the six months ended June 30, 2024[328]. Debt and Financing - The company’s Recourse Leverage Ratio increased to 2.1x as of June 30, 2024, up from 1.6x as of December 31, 2023, primarily due to financing of Agency RMBS[258]. - As of June 30, 2024, 58% of the company's debt is subject to mark-to-market margin calls, with 48% collateralized by Agency RMBS[258]. - The company had $2.4 billion outstanding under repurchase agreements as of June 30, 2024, with a weighted average interest rate of 5.54%[356][357]. - The quarterly average balance of repurchase agreements increased to $2.20 billion by June 30, 2024, compared to $1.85 billion at the end of December 2023[358]. - The company had commitments to fund up to $190.6 million of additional advances on existing business purpose loans as of June 30, 2024[420]. - The company issued $60.0 million of 9.125% Senior Notes due 2029, resulting in approximately $57.5 million in net proceeds[278]. - The company issued 9.125% Senior Notes in an underwritten public offering during the six months ended June 30, 2024[413]. - The company had $100.0 million aggregate principal amount of 5.75% Senior Notes outstanding, maturing on April 30, 2026[405]. - The company had $60.0 million aggregate principal amount of 9.125% Senior Notes outstanding, maturing on July 1, 2029[406]. Market Conditions - The U.S. GDP grew by 2.8% in the second quarter of 2024, marking eight consecutive quarters of growth[262]. - The unemployment rate was 4.1% at the end of June 2024, slightly up from 3.8% at the end of March 2024[263]. - Home prices increased by 7.2% for the 20-City Composite over April 2023, with the median existing-home sales price reaching $419,300 in May 2024, up 5.8% year-over-year[266]. - Starts on multi-family homes averaged a seasonally adjusted annual rate of 329,667 for the three months ended June 30, 2024, down from 459,417 for the year ended December 31, 2023[267]. - The Federal Reserve raised the federal funds target rate by a total of 525 bps from March 2022 through July 2023, the fastest pace of increases in history[255]. Risk Management - Significant margin calls could have a material adverse effect on the company's results of operations, financial condition, and liquidity[403]. - The company holds residential loans and RMBS, with interest rate adjustments that may not synchronize with repurchase agreements, potentially impacting net returns[426]. - Interest rate changes could lead to significant fluctuations in adjusted net interest income, with a +200 basis points change resulting in a decrease of $59,025,000 and a -200 basis points change resulting in an increase of $57,865,000[429]. - The company utilizes a model-based risk analysis system to project performances of interest rate-sensitive assets and liabilities, with results potentially varying significantly from projections due to changing assumptions[428]. - Liquidity risk arises from financing long-maturity assets with shorter-term financings, necessitating daily management and forecasting of liquidity needs[432]. - The company emphasizes procuring longer-term financing arrangements to mitigate exposure to fluctuations in collateral repricing and liquidity reductions[434]. - Prepayment risk is present when borrowers repay loans faster than expected, which can reduce yields on residential mortgage assets purchased at a premium[435]. - The company stress-tests its portfolio for prepayment speeds and interest rate risk to adjust hedge balances accordingly[438]. - Changes in interest rates may impact GAAP book value and adjusted book value, with the value of mortgage-related assets generally decreasing as interest rates increase[430]. - The company faces margin call risk on repurchase agreements, which could adversely affect liquidity if asset values decrease[433]. - Volatility in interest rates has negatively affected net interest income and fair value of assets throughout 2022, 2023, and the first half of 2024[431]. Shareholder Actions - The company repurchased 587,347 shares of common stock for approximately $3.5 million at an average repurchase price of $5.95 per share[277]. - The company intends to make distributions to stockholders to comply with REIT status requirements, which may require selling assets or borrowing funds on a short-term basis[418]. - The ending GAAP book value per common share remained at $9.69 for the six months ended June 30, 2024, unchanged from the previous period[308]. - Adjusted book value per common share decreased to $11.02 as of June 30, 2024, from $12.66 as of December 31, 2023[330]. - The company’s stockholders' equity was $1,431,910,000, a decrease from $1,579,612,000 as of December 31, 2023, primarily due to an accumulated deficit of $1,385,105,000[390].

Investment Portfolio Performance - The total investment portfolio increased to $5,348,306, up from $5,143,236 as of December 31, 2023, reflecting an increase of approximately 4%[234] - Agency RMBS holdings rose to $2,217,485, a growth of 11.5% from $1,989,324 at the end of 2023[234] - The company acquired $608,174 in new investments during the three months ended March 31, 2024[234] - Prepayments and redemptions totaled $262,231, indicating active portfolio management[234] - The total investment portfolio increased to approximately $4.6 billion as of June 30, 2022, up from $3.6 billion as of December 31, 2021, reflecting a growth of about 28%[238] - The Company experienced a net investment portfolio increase of approximately $1.3 billion during 2023 and $205.1 million in the first quarter of 2024[238] - As of March 31, 2024, the total investment portfolio carrying value was $5,352,566, with residential loans accounting for $3,103,105 and investment securities available for sale at $2,241,340[263] - The total acquired residential loans increased to $3,103,105 as of March 31, 2024, from $3,084,303 as of December 31, 2023, marking a growth of approximately 0.6%[311] Financial Performance - For the three months ended March 31, 2024, the net loss attributable to the company's common stockholders was $68,340, or $0.75 per share[259] - The yield on average interest-earning assets was 6.38%, with interest income of $83,892 and interest expense of $66,029, resulting in a net interest income of $17,863[259] - Adjusted interest income increased by more than 50% compared to the same period last year, indicating strong momentum in portfolio acquisition activities[238] - The economic return on book value for the period was -7.96%, while the economic return on adjusted book value was -7.50%[259] - The Company reported a net loss from real estate of $16,369 for the three months ended March 31, 2024, compared to a loss of $8,951 in 2023, indicating an increase of $7,418[272] - The Company recognized $49,211 in total gains on derivative instruments for the three months ended March 31, 2024, compared to a loss of $4,362 in 2023, marking an increase of $53,573[275] - The total other (loss) income for the three months ended March 31, 2024, was a loss of $57,323, compared to an income of $25,081 in 2023, indicating a change of $82,404[270] - The Company’s basic loss per common share for the three months ended March 31, 2024, was $(0.75), down from a profit of $0.12 in 2023, reflecting a change of $(0.87)[270] Market Conditions and Economic Indicators - The U.S. GDP grew at an annualized rate of 1.6% in the first quarter of 2024, marking seven consecutive quarters of growth[246] - The unemployment rate was 3.8% at the end of March 2024, slightly up from 3.7% at the end of December 2023, with average hourly earnings rising 4.1% year-over-year[247] - Home prices increased by 6.6% for the 20-City Composite over January 2023, while existing home sales in March 2024 were down 4.3% month-over-month[250] - The Federal Reserve raised the target range for the federal funds rate by a total of 5.25% from March 2022 through July 2023, the highest level in over 22 years[248] Risk Management - The company continues to face risks related to market volatility, interest rates, and credit spreads, which could impact future performance[229] - The company is exposed to risks from derivative financial instruments, including interest rate swaps and credit default swaps, to manage its financial risks[352] - Credit risk is heightened due to current inflationary pressures, potentially leading to increased delinquencies and defaults[409] - The company conducts thorough due diligence on credit-sensitive assets to mitigate credit risk and assess potential defaults[408] Liquidity and Capital Management - The company has maintained its REIT status, which allows it to avoid federal income tax on distributed taxable income[237] - The company emphasizes the importance of non-GAAP financial measures to evaluate performance and trends, which may not be comparable to other companies[287] - Liquidity management is critical, with the company emphasizing the need for long-term financing arrangements to avoid unplanned asset sales[400] - The company faces margin call risks on repurchase agreements, which could adversely affect its liquidity position if asset values decline[401] Investment Strategy - The company aims to deliver long-term stable distributions through a diversified investment portfolio, focusing on mortgage-related assets[236] - The investment strategy includes a repositioning towards targeted assets, particularly in single-family residential loans[234] - The company plans to continue disposing of assets from its portfolio to pursue investments in the residential housing sector, focusing on acquiring assets with less price sensitivity to credit deterioration[363] Joint Ventures and Equity Investments - Joint venture entities sold five multi-family properties in 2023, representing total net equity investments of $43.2 million, with a net gain of $1.7 million attributable to the Company[239] - The Company's net equity in consolidated joint venture equity investments totaled $197.7 million as of March 31, 2024, compared to $236.3 million as of December 31, 2023[341] - The Company's net equity investment in consolidated multi-family properties was $189.5 million as of March 31, 2024, down from $211.2 million as of December 31, 2023[345] Asset Management - The company has repurchase agreements with a maximum outstanding balance of $456,038 as of March 31, 2024, down from $611,055 at the end of 2023[320] - The company purchased approximately $297.6 million of Agency RMBS with an average coupon of 5.8% and approximately $305.7 million in residential loans with an average gross coupon of 10.7%[261] - The company’s mezzanine lending strategy includes preferred equity and mezzanine loans secured by multi-family real estate assets[332] - The weighted average loan-to-value (LTV) ratio for multi-family properties not in the disposal group is 78.8%, with the highest LTV in Collierville, TN at 87.5%[349]

Financial Assets and Investments - As of December 31, 2023, the company owned $181.6 million of non-Agency RMBS, which are collateralized by residential credit assets[29] - The company owned 524 single-family rental properties, primarily located in Illinois and Maryland, as of December 31, 2023[30] - The company focuses on middle market multi-family apartment communities with approximately 150 to 600 units located in secondary and tertiary markets[31] - The company has a joint venture that owns 13 multi-family properties in seven states, with an approximate 24% common equity interest as of December 31, 2023[39] - The company has a strategy to invest in multi-family properties that are poorly managed or undercapitalized, creating opportunities for net income growth[35] - The company expects its preferred equity investments to have loan-to-value ratios of 60% to 97% when combined with the first-mortgage loan amount[34] - The company’s investment strategy involves significant judgment in estimating fair values, which can impact the carrying value of assets and liabilities[375] - The company assesses the net fair value of real estate held for sale using market assumptions and discounted cash flow analysis[376] Debt and Leverage - The company has a target total debt leverage ratio not greater than 4:1, with a recourse leverage ratio of approximately 1.6 to 1 as of December 31, 2023[47] - The company employs leverage with maximum ratios of 10:1 for liquid Agency securities and between 4:1 and 6:1 for more illiquid assets[46] - The company had longer-term debt including CDOs with a carrying value of $1.3 billion as of December 31, 2023[447] - The Company’s recourse leverage ratio was approximately 1.6 to 1 as of December 31, 2023, excluding non-recourse financing[449] Cash Flow and Liquidity - The company had $171.5 million in available cash and cash equivalents as of December 31, 2023, indicating a strong liquidity position[433] - During the year ended December 31, 2023, the company generated net cash flows from operating activities of $30.0 million[437] - The net cash flows used in investing activities for the year ended December 31, 2023, were $1.2 billion, primarily due to purchases of investment securities and residential loans[438] - As of December 31, 2023, the net cash flows provided by financing activities were $1.1 billion, primarily from repurchase agreements related to investment securities and residential loans[441] - The Company had $171.5 million in cash and cash equivalents and $170.6 million in unencumbered investment securities available for margin requirements[444] Regulatory and Compliance - The company is subject to various regulatory requirements, including maintaining REIT qualification by distributing at least 90% of its ordinary taxable income to stockholders[67] - The company’s ability to maintain its qualification as a REIT for federal tax purposes is a critical factor for future distributions to stockholders[77] - The company intends to make distributions to stockholders to maintain REIT status and minimize corporate income tax obligations[458] Joint Ventures and Equity Investments - The company may consolidate certain joint venture equity investments into its financial statements, which could impact its balance sheets and equity investments[51] - The total assets of the consolidated joint venture equity investments amounted to $1.46 billion as of December 31, 2023, down from $1.73 billion in 2022, indicating a 15.7% decrease[413] - The net equity investment in consolidated joint ventures and disposal group held for sale was $236.3 million in 2023, compared to $388.8 million in 2022, representing a 39.1% decline[413] - The company has joint venture equity investments in multi-family properties totaling $199.5 million as of December 31, 2023, which do not meet the criteria to be classified as held for sale[414] Risk Management - The company utilizes interest rate swaps to hedge variable cash flows associated with its variable-rate borrowings, which helps offset repricing characteristics and cash flows of its financing arrangements[55] - The company employs a hedging strategy that includes derivative instruments such as interest rate swaps and options to manage market value risk[53] - The company faces competition from various financial institutions and investors, which may affect the acquisition of residential mortgage assets and result in higher prices and lower yields[59] Employee and Workforce - As of December 31, 2023, the company had 79 full-time employees across its offices in New York, Charlotte, and Woodland Hills, with no temporary or seasonal employees expected in the future[61] - The company is committed to maintaining a diverse workforce, with women comprising 30% and 32% of employees identifying as ethnically diverse as of December 31, 2023[62] Financial Performance - As of December 31, 2023, the company had approximately $7.4 billion in total assets, an increase from $6.2 billion in 2022[380] - The company's total residential loans amounted to $3.08 billion as of December 31, 2023, down from $3.53 billion in 2022, reflecting a decrease of approximately 12.6%[381] - The company reported a weighted average coupon of 5.1% for the re-performing residential loan strategy as of December 31, 2023[383] - The total fair value of available-for-sale (AFS) investment securities was $2.01 billion as of December 31, 2023, compared to $99.56 million in the previous year[398] - The company's stockholders' equity decreased to $1.580 billion as of December 31, 2023, from $1.767 billion in 2022[429] Shareholder Actions - The Company repurchased 937,850 shares of common stock for approximately $8.6 million during the year ended December 31, 2023, with $193.2 million remaining available for repurchase[455] - The Company repurchased preferred stock for a total cost of approximately $2.4 million during the year ended December 31, 2023, with $97.6 million remaining available for repurchase[454]

Investment Portfolio - As of September 30, 2023, the total investment portfolio amounted to $4,700,071,000, reflecting an increase of $1,146,642,000 in acquisitions during the quarter[226] - The company purchased $946,226,000 in Agency RMBS during the three months ended September 30, 2023, while experiencing repayments of $24,698,000[226] - The company reported a total of $1,602,215,000 in investment securities available for sale as of September 30, 2023, after accounting for various changes and sales[226] - As of September 30, 2023, the total investment portfolio carrying value was $4,703,506,000, with residential loans accounting for $2,993,895,000[260] - The investment securities portfolio increased to $3.424 billion as of September 30, 2023, from $1.032 billion at the end of 2022, primarily due to purchases of Agency RMBS[346][347] Financial Performance - For the three months ended September 30, 2023, the net loss attributable to the company's common stockholders was $94,819,000, resulting in a loss per share of $1.04[253] - The company reported interest income of $65,195,000 and interest expense of $48,406,000 for the same period, leading to a net interest income of $16,789,000[253] - The economic return on adjusted book value for the nine months ended September 30, 2023, was -12.33%[253] - The net loss attributable to the Company for the three months ended September 30, 2023, was $84,509, a decrease of $30,768 compared to a net loss of $115,277 in 2022[263] - The net loss attributable to the company's common stockholders for the three months ended September 30, 2023, was $94.819 million, an improvement of $30.951 million compared to a loss of $125.770 million in 2022[282] Market Conditions - The U.S. GDP grew at a 4.9% annualized rate in Q3 2023, marking five consecutive quarters of growth, compared to 2.1% in Q2 2023[239] - The U.S. unemployment rate was 3.8% at the end of September 2023, slightly up from 3.6% at the end of June 2023[240] - The average 30-year fixed-rate mortgage rose to 7.63% as of October 19, 2023, up 0.94% year-over-year, which may exert downward pressure on home prices[243] - Multi-family home starts averaged a seasonally adjusted annual rate of 388,000 for Q3 2023, down from 530,500 for the year ended December 31, 2022[244] Risk Management - The company’s interest rate risk management includes the use of interest rate swaps, caps, and other derivatives to hedge against market value risks associated with its investment portfolio[376] - The company faces liquidity risk from financing long-maturity assets with shorter-term financings, necessitating daily management and forecasting of liquidity needs[398] - Credit risk is heightened due to potential economic recession, which may lead to increased delinquencies and defaults on credit-sensitive assets[408] - The company is exposed to margin call risk on repurchase agreements, which could adversely affect liquidity if asset values decrease[399] Asset Management - The company plans to continue opportunistically disposing of assets, including joint venture equity investments, to pursue investments in residential housing with less price sensitivity to credit deterioration[235] - The company has determined that certain joint venture equity investments met the criteria to be classified as held for sale, resulting in a reallocation of capital away from multi-family properties[336] - The Company’s net equity in consolidated multi-family properties and disposal group held for sale totaled $276.4 million as of September 30, 2023, down from $388.8 million as of December 31, 2022[336] Shareholder Returns - The company declared dividends totaling $27,582 for the three months ended September 30, 2023, equating to $0.30 per share[285] - The company has a preferred stock repurchase program approved for $100.0 million, with $97.6 million remaining available for repurchase as of September 30, 2023[381] - The company intends to make distributions to stockholders to comply with REIT status requirements, which may require selling assets or borrowing funds on a short-term basis[385] Leverage and Capital Structure - As of September 30, 2023, the Recourse Leverage Ratio and Portfolio Recourse Leverage Ratio increased to 1.3x and 1.2x, respectively, from 0.7x and 0.6x as of June 30, 2023[234] - The company’s recourse leverage ratio was approximately 1.3 to 1 as of September 30, 2023, indicating the total outstanding recourse financing relative to total stockholders' equity[375] - The Company had ten Company-sponsored securitizations with CDOs outstanding as of September 30, 2023, with a carrying value of $1.3 billion[373] Economic Indicators - The Federal Reserve raised the target range for the federal funds rate by a total of 5.25% from March 2022 to November 1, 2023, reaching the highest level in over 22 years[241] - The spread between the 2-Year and 10-Year U.S. Treasury yields closed at negative 44 basis points on September 29, 2023, indicating a potential recession[247] Cash Flow and Liquidity - The Company generated net cash flows from operating activities totaling $16.9 million during the nine months ended September 30, 2023[365] - Net cash flows used in investing activities were $822.5 million, primarily due to purchases of investment securities and residential loans[366] - As of September 30, 2023, the Company had $221.2 million of available cash and cash equivalents[361]