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Mar 31, 2020
NYMT Q1 2020 Earnings Report
Reported results for the first quarter of 2020, experiencing a net loss due to unprecedented market conditions from the COVID-19 pandemic, and taking actions to improve liquidity and reduce exposure.
Key Takeaways
New York Mortgage Trust reported a net loss of $598.68 million for Q1 2020, driven by market volatility due to the COVID-19 pandemic. The company sold $2.0 billion in assets and reduced repurchase agreement financings by $1.7 billion to improve liquidity, finishing the quarter with $173 million in cash and a portfolio leverage ratio of 0.7 times. The book value dropped by 33%, and the company temporarily suspended its quarterly dividends.
Experienced unprecedented market conditions due to the COVID-19 pandemic.
Sold $2.0 billion in assets and reduced repurchase agreement financings by $1.7 billion to improve liquidity.
Finished the quarter with $173 million in cash liquidity and a portfolio leverage ratio of 0.7 times.
Temporarily suspended its quarterly dividends due to significant losses.
Forward Guidance
NYMT took decisive action to improve liquidity and reduce exposure amid the COVID-19 pandemic, selling assets and reducing financing, which resulted in significant costs and a temporary dividend suspension. The company believes these actions have better positioned it to weather the economic storm and capitalize on investment opportunities.
Positive Outlook
- Improved liquidity by selling $2.0 billion in assets.
- Reduced repurchase agreement financings by $1.7 billion from year-end levels.
- Finished the quarter with $173 million in cash liquidity.
- Achieved a portfolio leverage ratio of 0.7 times.
- Positioned to take advantage of a dislocated investment landscape with low leverage.
Challenges Ahead
- Experienced the worst quarter in its history.
- Saw book value drop by 33%.
- Temporarily suspended its quarterly dividends.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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