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Jun 30, 2021
Great Ajax Q2 2021 Earnings Report
Reported an increase in net income due to decreased interest expense and invested primarily in joint venture debt securities.
Key Takeaways
Great Ajax Corp. reported a net income attributable to common stockholders of $10.4 million and basic earnings per share of $0.45 for the quarter ended June 30, 2021. The increase in net income was primarily due to a decrease in interest expense as the company refinanced borrowings at lower rates, which was offset by lower interest income on loans.
Interest income of $23.0 million; net interest income of $14.2 million.
Net income attributable to common stockholders of $10.4 million.
Basic earnings per common share (“EPS”) of $0.45.
Book value per common share of $15.86 at June 30, 2021.
Revenue by Segment
Forward Guidance
Great Ajax Corp. has agreed to acquire, subject to due diligence, 31 residential RPLs in six transactions, and 412 NPLs in six transactions, with aggregate UPB of $4.7 million and $103.3 million, respectively.
Positive Outlook
- Acquired 1,016 residential NPLs with aggregate UPB of $173.0 million since quarter end.
- Purchase price equaled 97.9% of UPB and 54.2% of the estimated market value of the underlying collateral of $312.1 million.
- Some of these loans were acquired into the joint venture formed in June 2021 with proceeds from the established prefunding account.
- Agreed to acquire 31 residential RPLs in six transactions.
- Agreed to acquire 412 NPLs in six transactions.
Challenges Ahead
- Acquisitions are subject to due diligence.
- The purchase price of the residential RPLs equals 80.9% of UPB and 55.1% of the estimated market value of the underlying collateral of $6.9 million.
- The purchase price of the NPLs equals 97.1% of UPB and 64.4% of the estimated market value of the underlying collateral of $155.8 million.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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