Great Ajax(AJX) - 2024 Q2 - Quarterly Results

Financial Performance - GAAP net loss for Q2 2024 was $(12.7) million, or$(0.32) per diluted common share, an improvement from a net loss of $(74.3) million, or$(2.41) per diluted common share in Q1 2024[3][4] - Earnings available for distribution were $(9.6) million, or$(0.24) per diluted common share, compared to $(4.8) million, or$(0.16) per diluted common share in the previous quarter[3][4] - As of June 30, 2024, the net consolidated loss attributable to common stockholders was $12.742 million, compared to a loss of$74.319 million for the quarter ended March 31, 2024[17] - Earnings available for distribution for the quarter ended June 30, 2024, was $9.598 million, with a basic and diluted earnings per share of$0.24[28] Asset and Liability Management - Total assets decreased to $911.5 million from$1.3 billion at the end of 2023, primarily due to the net loss and equity issuance[14] - Total liabilities decreased to $657.0 million from$1.0 billion at the end of 2023, reflecting the company's strategic adjustments[14] - The balance for mortgage loans held-for-sale, net, was $487.3 million as of June 30, 2024, compared to$628.6 million as of December 31, 2023[1] Investment and Securities - The company reported a net unrealized loss of $9.5 million on investments in securities available for sale (AFS) as of June 30, 2024, compared to a loss of$8.0 million as of December 31, 2023[4] - The allowance for expected credit losses on investments in beneficial interests increased to $9.1 million as of June 30, 2024, from$6.9 million as of December 31, 2023[6] - The company transferred certain investments in securities AFS to held to maturity (HTM) on January 1, 2023, with a remaining discount of $4.4 million related to unamortized unrealized loss in accumulated other comprehensive income (AOCI) as of June 30, 2024[5] - The company reported zero allowance for expected credit losses on mortgage loans held-for-investment as of June 30, 2024, down from$3.4 million as of December 31, 2023[1] Dividends and Shareholder Returns - Common dividend declared was $2.2 million, or$0.06 per common share, down from $3.7 million, or$0.10 per common share in Q1 2024[3][4] Strategic Transactions - The company completed a strategic transaction with Rithm Capital, transitioning to a focus on commercial real estate and terminating the previous management agreement[7] - The company sold loans with an unpaid principal balance of approximately $305 million, generating net proceeds of about$45.1 million[7] - The company entered into a $70.0 million term loan with NIC RMBS LLC, which remains undrawn[7] - The company expects to leverage Rithm's operating platform to enhance its investment strategy and create shareholder value[7] Real Estate and Valuation - Real estate owned properties, net, included valuation allowances of$1.7 million as of June 30, 2024, compared to $1.2 million as of December 31, 2023[3] - Non-controlling interests included$0.8 million from a 50.0% owned joint venture as of June 30, 2024, consistent with the balance as of December 31, 2023[8] - The company had secured borrowings net of deferred issuance costs of $1.7 million as of June 30, 2024, down from$3.1 million as of December 31, 2023[7] Book Value - Book value per common share decreased to $5.56 from$6.87 in Q1 2024, with total book value at $253.6 million[3][4]