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New York Mortgage Trust, Inc. (Nasdaq: NYMT) today announced preliminary estimates of certain financial information as of and for the quarter ended September 30, 2022 in light of continued market volatility.
Preliminary estimates of certain financial information for the third quarter of 2022
- Book value per common share. The carrying value per common share as at September 30, 2022 was estimated between $3.62 and $3.66 compared to $4.06 per common share as at June 30, 2022.
- Unamortized book value per common share1. The unamortized book value per common share as at September 30, 2022 was estimated to be between $3.86 and $3.90 compared to $4.24 per common share as at June 30, 2022.
- Company Recourse Leverage Ratio2 and portfolio recourse leverage ratio3. The company’s recourse leverage ratio was estimated at 0.5x and the portfolio’s recourse leverage ratio was estimated at 0.4x as of September 30, 2022.
- Liquidity position. The Company maintained a strong liquidity position, with $336 million of available cash4 and $586 million of unencumbered residential loans, investment securities (including securities held in Consolidated SLST) and mezzanine loans as of September 30 2022.
- Cash dividend. As previously announced on September 16, 2022, the Company declared a common stock cash dividend for the third quarter of 2022 of $0.10 per share, payable October 26, 2022 to holders of record as of September 26, 2022.
- Share buyback program. The Company repurchased 5.5 million common shares at an average repurchase price of $2.62 per share during the quarter ended September 30, 2022.
The preliminary estimates presented above are unaudited and are subject to change as the Company’s quarter-end closing process is completed. Although the Company believes that the estimates are based on reasonable assumptions, actual results may vary and such variations may be material. Factors that could cause actual results to differ from estimates include, but are not limited to: (i) adjustments in the calculation or application of accounting principles for the financial results for the quarter ended September 30, 2022 ; (ii) the discovery of new information having an impact on the valuation methodologies underlying these results; (iii) errors in the preliminary assessment of the value of our assets and liabilities; (iv) accounting changes required by GAAP; and (v) the risks and uncertainties described under the headings “Forward-Looking Statements” below and “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. The Company undertakes no obligation to update or revise these estimates, and investors should not place undue reliance on these estimates as they may prove materially inaccurate. Actual third quarter results remain subject to review by the Company’s independent auditors.
Third Quarter 2022 Conference Call Scheduled for Thursday, November 3, 2022
The Company expects to release its financial results for the three months ended September 30, 2022 after market close on Wednesday, November 2, 2022. New York Mortgage Trust senior management will host a conference call and audio webcast at 9:00 a.m. ET. East. , Thursday, November 3, 2022. To access the conference call, please pre-register using this link. Registrants will receive a confirmation with login details.
A live audio webcast of the conference call is available, for listening only, in the Investor Relations section of the Company’s website at www.nymtrust.com or using this link. A web replay link of the conference call will be available in the Investor Relations section of the Company’s website approximately two hours after the conference call and will be available for 12 months.
About New York Mortgage Trust
New York Mortgage Trust, Inc. is a Maryland corporation that has elected to be taxed as a real estate investment trust (“REIT”) for federal income tax purposes. NYMT is an internally managed REIT engaged in the acquisition, investment, financing and management of single-family and multi-family residential assets primarily related to mortgages.
When used in this press release, in future filings with the Securities and Exchange Commission (the “SEC”), or in other written or oral communications, statements that are not historical in nature, including those containing words such as “will”, “believe”, “expect”, “anticipate”, “estimate”, “plan”, “continue”, “intend”, “could”, “would”, “should”, “may”, or similar expressions, are intended to identify “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and as such may involve unknown risks, uncertainties and assumptions.
Forward-looking statements are based on estimates, projections, beliefs and assumptions of the Company’s management at the time of such statements and are not guarantees of future performance. Forward-looking statements involve risks and uncertainties in predicting future results and conditions. Actual results and results could differ materially from those projected in these forward-looking statements due to a variety of factors, including, without limitation: changes in the Company’s business and investment strategy; changes in interest rates and the fair market value of the Company’s assets, including negative changes resulting in margin calls related to the financing of the Company’s assets; changes in credit spreads; changes in the long-term credit ratings of the United States, Fannie Mae, Freddie Mac and Ginnie Mae; the general volatility of the markets in which the Company invests; changes in prepayment rates on borrowings held by the Company or underlying the Company’s investment securities; increase in default or delinquency rates and/or decrease in recovery rates on the Company’s assets; the Company’s ability to identify and acquire targeted assets, including assets in its investment portfolio; changes in relationships with the Company’s funding counterparties and the Company’s ability to borrow to fund its assets and the terms thereof; changes in the Company’s relationship with and/or the performance of its operating partners; the Company’s ability to predict and control costs; changes in laws, regulations or policies affecting the Company’s business, including measures that may be taken to contain or deal with the impact of the COVID-19 pandemic; the Company’s ability to make distributions to its shareholders in the future; the Company’s ability to maintain its qualification as a REIT for federal tax purposes; the ability of the Company to maintain its exemption from registration under the Investment Company Act of 1940, as amended; the risks associated with investing in real estate assets, including changes in business conditions and the general economy, the availability of investment opportunities and market conditions for agency RMBS, non- agency, ABS and CMBS securities, residential loans, multi-family investments and other mortgage, residential housing and credit-related assets, including changes resulting from the continued spread and economic effects of COVID- 19; and the impact of COVID-19 on the Company, its operations and its people.
These and other risks, uncertainties and factors, including the risk factors described in the Company’s reports filed with the SEC under the Exchange Act, could cause the Company’s actual results differ materially from those projected in the Company’s forward-looking statements. All forward-looking statements speak only as of the date they are made. New risks and uncertainties arise over time and it is not possible to predict these events or how they may affect the Company. Except as required by law, the Company is not obligated and does not intend to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. .
Non-GAAP Financial Measures
In addition to results reported in accordance with GAAP, this press release includes a non-GAAP financial measure, unamortized book value per common share. Unamortized book value per common share of $3.86 to $3.90 is a supplemental non-GAAP financial measure calculated as GAAP book value per common share of $3.62 to $3.66 adjusted for the Company’s share of accumulated amortization and amortization expense of rental intangible assets related to operating real estate, net held at the end of the period, representing adjustments of $0.08 and $0.08 $.16 per common share, respectively. Excluding these non-cash adjustments, the unamortized book value reflects the value of the Company’s rental property portfolio on its unamortized basis. The Company’s rental property portfolio includes single-family rental homes owned directly by the Company and consolidated multi-family apartment communities. The Company believes that the presentation of the unamortized book value per common share is useful to investors and the Company, as it allows management to consider the overall portfolio excluding non-cash adjustments to property operating, net and makes it easier to compare our financial performance with that of our peers.
The Company’s presentation of unamortized book value per common share may not be comparable to similarly titled measures of other companies, which may use different calculations. Because unamortized book value per common share is not calculated in accordance with GAAP, it should not be considered a substitute for or superior to financial measures calculated in accordance with GAAP and should be evaluated with care.
For more information
TO THE COMPANYInvestor Relations Phone: 212-792-0107E-mail: [email protected]
1 Represents a non-GAAP financial measure. A reconciliation of unamortized book value per common share to GAAP book value per common share is included below under “Non-GAAP Financial Measures”.2 Equity.3 Represents ongoing financing of the agreement Company’s recourse repurchase agreement divided by the Company’s total equity.4 Free cash is calculated as unrestricted cash of $370 million less $34 million of cash held by consolidated multi-family apartment communities of the society.
Source: New York Mortgage Trust, Inc.