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Sep 30, 2023
NYMT Q3 2023 Earnings Report
Reported a net loss due to heightened rate volatility and lower asset valuations.
Key Takeaways
New York Mortgage Trust reported a net loss attributable to common stockholders of $94.8 million, or $1.04 per share, for the third quarter of 2023. The results were impacted by heightened rate volatility and lower asset valuations, particularly in the multi-family joint venture equity portfolio.
Adjusted book value declined by 9.71% due to lower asset valuations and impairment losses.
Credit portfolio declined by $1.0 billion year-over-year as management reduced credit exposure.
Interest income increased by 15% from the prior quarter, driven by an accretive, high coupon Agency RMBS portfolio.
Company repurchased 560,342 shares of common stock for approximately $5.0 million.
Revenue by Segment
Forward Guidance
Company believes decisive actions to reposition the portfolio and reduce credit exposure will enable the company to provide long-term, sustainable value in a likely downturn.
Positive Outlook
- Increased exposure to Agency RMBS is expected to support book value and liquidity.
- Agency RMBS spreads are at one of the widest levels since 2008, which is believed to meaningfully expand interest earnings.
- Repositioning of the portfolio to reduce credit exposure.
- Building an accretive, high coupon Agency RMBS portfolio.
- Focus on long-term, sustainable value.
Challenges Ahead
- Fixed income investment valuations suffered due to rate volatility.
- Negative investor sentiment brought asset values lower.
- Adjusted book value declined by 9.71% in the third quarter.
- Impairment losses related to multi-family joint venture equity portfolio.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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