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NEW YORK MTG(NYMTL) - 2024 Q4 - Annual Report
NYMTLNEW YORK MTG(NYMTL)2025-02-21 21:57

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 19.5millionovertwomulti−familyproperties,generatingnetgainsofapproximately19.5 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 139.4millionofpreferredequityinterestsinajointventurethatowns10multi−familypropertiesasofDecember31,2024[40].−Thecompanyhasa50139.4 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 1,579.61millionin2023,reflectinganaccumulateddeficitof1,579.61 million in 2023, reflecting an accumulated deficit of 1,430.68 million [443]. Financial Performance - As of December 31, 2024, the company had approximately 9.2billionintotalassets,anincreasefromapproximately9.2 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 14.1millionduringtheyearendedDecember31,2024[450].−Thenetcashflowsusedininvestingactivitiesamountedto14.1 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 2.2billion,primarilyfromrepurchaseagreementsandissuanceofCDOs[454].LeverageandDebt−Thecompany′smaximumleverageratiosare15:1formoreliquidAgencysecurities,between4:1and6:1formoreilliquidassets,and8:1forresidentialloans,withatargettotaldebtleveragerationotgreaterthan4:1[46].−AsofDecember31,2024,thecompany′srecourseleverageratiowasapproximately3.0to1,andtheportfoliorecourseleverageratiowasapproximately2.9to1[48].−Thecompanyemploysleveragethroughrepurchaseagreements,withtermsrangingfrom30daysto24months,linkedtotheSecuredOvernightFundingRate(SOFR)[49].−Thecompany’srecourseleverageratiowasapproximately3.0to1asofDecember31,2024,indicatingthelevelofdebtrelativetostockholders′equity[463].−Totalcontractualobligationsamountto2.2 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 4,049,232,000ofthetotalobligations[477].InvestmentSecurities−TheinvestmentsecuritiesportfolioincreasedincarryingvalueasofDecember31,2024,primarilyduetopurchasesofAgencyRMBS,non−AgencyRMBS,andU.S.Treasurysecurities[402].−AsofDecember31,2024,thetotalinvestmentsecuritiesamountedto4,049,232,000 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,resultinginunrealizedlossesof4,083,247,000, 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,withaweightedaverageyieldof5.883,136,812,000, 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,withaweightedaverageyieldof4.13622,045,000, 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 5.95pershare[469].−ThecompanydidnotrepurchaseanysharesofpreferredstockduringtheyearendedDecember31,2024,leaving5.95 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 176.6million,downfrom176.6 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].