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Mar 31, 2020
Great Ajax Q1 2020 Earnings Report
Great Ajax Corp. reported results for the quarter ended March 31, 2020.
Key Takeaways
Great Ajax Corp. announced its results of operations for the quarter ended March 31, 2020. The company reported a net income attributable to common stockholders of $0.4 million, with basic earnings per share of $0.02. The company collected total cash of $62.4 million from loan payments, sales of REO and investments in debt securities and beneficial interests. The company held $31.2 million of cash and cash equivalents at March 31, 2020.
Formed a joint venture that acquired $184.8 million in unpaid principal balance (“UPB”) of mortgage loans.
Purchased $0.2 million of non-performing mortgage loans and 26 RPLs for $1.2 million.
Interest income of $27.3 million; net interest income after provision for credit losses of $9.1 million.
Collected total cash of $62.4 million from loan payments, sales of real estate owned and investments in debt securities and beneficial interests.
Revenue by Segment
Forward Guidance
The company expects to use the net proceeds from the private placement to acquire mortgage loans and mortgage-related assets consistent with our investment strategy. We expect the rate of new foreclosures to slow due to the current moratorium in many states.
Positive Outlook
- Net proceeds from private placement will be used to acquire mortgage loans.
- Net proceeds from private placement will be used to acquire mortgage-related assets.
- Rate of new foreclosures is expected to slow.
- Liquidation of REO properties held-for-sale continues at a faster rate than properties acquired.
- Overall cost of funds decreased approximately 21 basis points.
Challenges Ahead
- COVID-19 outbreak has caused significant volatility and disruption in the financial markets.
- COVID-19 continues to spread or the response to contain it is unsuccessful, Great Ajax could experience material adverse effects on its business, financial condition, liquidity and results of operations.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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