紐約抵押信託報告
2024年第三季度成果
納斯達克：2024年10月30日紐約（GLOBE NEWSWIRE）- 紐約抵押信託公司（納斯達克：NYMT）（以下簡稱“NYMT”，“公司”，“我們”或“我們”）今日公佈了截至2024年9月30日的三個月和九個月的業績。
2024年第三季摘要：
(以千元計算，除每股資料外的全部金額)
歸屬於公司普通股東的凈利潤 | $ | 32,410 | |||
歸屬於公司普通股東的每股基本凈利潤 | $ | 0.36 | |||
未折舊收益 (1) | $ | 34,941 | |||
每股普通股的未折舊收益 (1) | $ | 0.39 | |||
歸屬於公司普通股東的綜合收益 | $ | 32,410 | |||
歸屬於公司普通股東的每股基本綜合收益 | $ | 0.36 | |||
平均利息收入資產的利潤率 (1) (2) | 6.69 | % | |||
| 利息收入 | $ | 108,361 | |||
| 利息費用 | $ | 88,124 | |||
| 淨利息收益 | $ | 20,237 | |||
息差凈收益 (1) (3) | 1.32 | % | |||
| 期末每股普通股的帳面價值 | $ | 9.83 | |||
期末每股普通股的調整帳面價值 (1) | $ | 10.87 | |||
帳面價值的經濟回報 (4) | 3.51 | % | |||
調整帳面價值的經濟回報 (5) | 0.45 | % | |||
| 每股普通股的分紅派息 | $ | 0.20 | |||
(1)代表一項非依照通用會計原則（GAAP）的財務指標。該公司的非GAAP財務指標與其最直接可比較的GAAP措施的調解已包含在下方的「財務信息調解」中。
(2)根據我們調整後的利息收入和平均利息收益資產的商數計算，並排除所有合併SLSt資產，除了公司所擁有的證券。
(3)我們對淨利差的計算可能與其他公司使用不同計算方法的同類指標不可比較。
(4)以GAAP淨資產價值每股期間變動加上每股分紅派息（如有）計算淨資產價值經濟回報。
(5)根據調整後股東權益的周期變化及每股普通股的分紅派息（如果有的話）來計算調整後帳面值的經濟回報，該指標為一個非通用會計原則的財務指標。
重要發展：
投資活動
•我們持有共同股權投資的一家合資創業公司出售其大型多戶公寓社區，金額約為5640萬美元。此次出售為公司普通股股東產生約870萬美元淨利。
•我們持有合併優先股和普通股投資的一家合資公司，以約4350萬美元的價格出售了一個多家庭公寓社區。這筆交易為公司普通股股東產生了約150萬美元的淨收益。
•購入約$372.2百萬美元的機構RMBS，平均債券利率為5.33%。
•購買了大約6.242億美元的住宅貸款，平均淨票息為9.72%。
融資活動
•完成了一筆業務用途貸款的證券化交易，導致我們約23580萬美元的淨收益，扣除與交易相關的費用後。 我們利用部分淨收益來償還與住宅貸款相關的尚未清償的回購協議，金額約為18460萬美元。.
•完成了對我們投資的再證券化 部分次償權證券已發行由Consolidated SLSt，導致我們獲得約 $7300萬 的淨收益，扣除與交易相關的費用後。我們利用部分淨收益還清了關於我們投資於Consolidated SLSt的尚未清償的約 $4880萬的回購協議融資。
管理概觀
Jason Serrano，首席執行官，評論說：「公司第三季度每股盈利大幅增至0.36美元。 改善的收益是一年多以來開始的投資組合重組的結果。 作為計劃的一部分，我們專注於可以交付高循環利息收入的收購，通過從表現不佳的回報機會進行輪換。 因此，公司第三季度報告的綜合調整淨利息收入為2900萬美元，較上年同期增長39%。
過去一年，我們堅持謹慎的方式來平衡資產負債表的增長，優先考慮包含基本穩定收入的投資，並且沒有偏離我們的目標。未來，我們打算釋放公司的過剩流動性，為持續的投資組合增長提供支持，進一步增加公司收益，特別是在沒有任何企業債務到2026年之前。我們認為在這個市場環境中謹慎地對待收益增長是明智之舉，以提高股東價值。
資本配置
以下表格列出了2024年9月30日按投資類別分配的資本（金額以千美元為單位）：
獨立住宅 (1) | 多元資產 / 其他 家庭 | 公司/其他 | 總計 | ||||||||||||||||||||
| 住宅貸款 | $ | 3,777,144 | $ | — | $ | — | $ | 3,777,144 | |||||||||||||||
| 綜合SLSt CDO | (845,811) | — | — | (845,811) | |||||||||||||||||||
| 可供出售的投資證券 | 3,036,182 | — | 349,088 | 3,385,270 | |||||||||||||||||||
| 多家庭貸款 | — | 87,614 | — | 87,614 | |||||||||||||||||||
| 股權投資 | — | 100,378 | 46,455 | 146,833 | |||||||||||||||||||
合併式多家庭房產的股權投資 (2) | — | 154,462 | — | 154,462 | |||||||||||||||||||
處分群組持有待售的股權投資 (3) | — | 17,831 | — | 17,831 | |||||||||||||||||||
| 單一家庭租賃房產 | 144,736 | — | — | 144,736 | |||||||||||||||||||
| 投資組合總帳面價值 | 6,112,251 | 360,285 | 395,543 | 6,868,079 | |||||||||||||||||||
| 負債： | |||||||||||||||||||||||
回購協議 | (3,258,175) | — | (352,940) | (3,611,115) | |||||||||||||||||||
擔保債務抵押貸款證券 | |||||||||||||||||||||||
| 住宅貸款證券化CDO | (1,883,817) | — | — | (1,883,817) | |||||||||||||||||||
非機構RMBS再證券化 | (72,638) | — | — | (72,638) | |||||||||||||||||||
| 優先無抵押票據 | — | — | (159,587) | (159,587) | |||||||||||||||||||
| 次順位債券 | — | — | (45,000) | (45,000) | |||||||||||||||||||
現金、貨幣及受限制現金 (4) | 104,220 | — | 221,582 | 325,802 | |||||||||||||||||||
| 贖回式非控制權益的累計調整至預估贖回價值 | — | (48,282) | — | (48,282) | |||||||||||||||||||
| 其他 | 111,504 | (1,306) | (39,493) | 70,705 | |||||||||||||||||||
| 公司資本分配 | $ | 1,113,345 | $ | 310,697 | $ | 20,105 | $ | 1,444,147 | |||||||||||||||
公司負債槓桿比 (5) | 2.6 | x | |||||||||||||||||||||
投資組合負債槓桿比 (6) | 2.5 | x | |||||||||||||||||||||
(1)本公司通過擁有某些證券已確定是綜合SLSt的主要受益人，並在公司的簡明綜合基本報表中合併了綜合SLSt的資產和負債。 綜合SLSt主要以住宅貸款，按公平價值和抵押債務令券，按公平價值，在我們的簡明綜合資產負債表上呈現。 截至2024年9月30日，我們對綜合SLSt的投資僅限於由首要損失次級證券組成的RMBS以及由相應證券化發行的特定IO，其淨攜帶價值總額為 $15750萬。
(2)代表公司對非處於待售處分群組的合併多家庭房地產的股權投資。請參閱下面的「財務資訊調整」部分，以了解合併多家庭房地產和待售處分群組的股權投資與公司的簡明綜合財務報表的調節。
(3)代表公司持有待售處置群組中的合併多家庭物業股權。請參閱下面「基本報表資訊調節」部分，以了解合併多家庭物業股權和待售處置群組股權調節至公司簡明合併基本報表的調節情況。
(4)不包括公司在合併持有的多家庭物業和處分組合內合併持有的多家庭房地產資產中總額為$920萬的現金。受限現金$13690萬包括在公司附帶之簡明綜合資產負債表中的其他資產。
(5)代表公司的全部未清擔保贖回協議融資、優先債務及債務人次級債券除以公司總股東權益。不包括3460萬美元的非擔保買回協議融資，84580萬美元的SLSt CDOs，19億美元的住房貸款證券化CDOs，7260萬美元的非機構RMBS再證券化CDOs，以及房地產擔保的應付抵押貸款，包括待售處置群組房地產的應付抵押貸款，總計662.6百萬美元，因為它們是非擔保債務。
(6)代表公司傑出的追索回購協議融資，以公司總股東權益為分母。
下表列出我們按類別分類的利息賺取資產相關的調整後利息收入、調整後利息支出、調整後淨利息收入（損失）、平均利息賺取資產收益率、平均融資成本和淨利息差額為 截至2024年9月30日及2023年的三個月 2024年9月30日 （金額以千為單位）：
2024年9月30日結束的三個月
單一家庭 (8) | 多元資產 / 其他 家庭 | 公司/其他 | 總計 | ||||||||||||||||||||
調整後利息收入 (1) (2) | $ | 97,233 | $ | 2,699 | $ | 1,054 | $ | 100,986 | |||||||||||||||
調整後利息支出 (1) | (66,297) | — | (5,999) | (72,296) | |||||||||||||||||||
調整後淨利息收入（損失） (1) | $ | 30,936 | $ | 2,699 | $ | (4,945) | $ | 28,690 | |||||||||||||||
平均利息收入資產 (3) | $ | 5,841,444 | $ | 91,164 | $ | 103,275 | $ | 6,035,883 | |||||||||||||||
平均利息軸承負債 (4) | $ | 4,976,522 | $ | — | $ | 379,590 | $ | 5,356,112 | |||||||||||||||
平均利息收入資產收益率 (1) (5) | 6.66 | % | 11.84 | % | 4.08 | % | 6.69 | % | |||||||||||||||
平均融資成本 (1) (6) | (5.30) | % | — | (6.29) | % | (5.37) | % | ||||||||||||||||
淨利差 (1) (7) | 1.36 | % | 11.84 | % | (2.21) | % | 1.32 | % | |||||||||||||||
(1)代表非依照通用會計原則計算之財務指標。 下方包括公司非依照通用會計原則計算之財務指標與其相對應之最接近通用會計原則計算之指標之對帳單。
(2)包括公司持有的現金帳戶所賺取的利息收入。
(3)該時期的平均利息賺取資產包括住宅貸款、多家庭住宅貸款和投資證券，並且不包括所有合併SLSt資產，除了公司擁有的證券。平均利息賺取資產是基於該時期的每日攤銷成本計算的。
(4)期間內的平均利息負債包括回購協議、住宅貸款證券化、非機構RMBS再證券化CDO、優先無擔保票據和次順位債券，並排除綜合SLSt CDO和房地產業上應付的按揭貸款，因為公司對這些用於GAAP目的的負債並不直接支付利息費用。平均利息負債是基於期間內的日均餘額計算的。
(5)平均利息賺取資產收益率是通過將我們與利息賺取資產相關的年化調整利息收入除以我們該期間的平均利息賺取資產來計算的。
(6)平均融資成本是通過將我們的年化調整利息費用除以我們的平均利息負債來計算。
(7)淨利息差是我們平均利息收入資產的收益與我們平均融資成本之間的差異。
(8)本公司已確定其為綜合SLSt的主要受益人，並將綜合SLSt納入本公司的簡明綜合基本報表中。我們的GAAP利息收入包括在綜合SLSt持有的基礎季節性再執行和非執行住宅貸款上認可的利息收入。我們的GAAP利息支出包括在永久理財綜合SLSt住宅貸款的SLSt CDOs上認可的利息支出，這些CDOs不是本公司擁有的。我們通過將我們的GAAP利息收入減少綜合SLSt CDOs上認可的利息支出來計算調整後的利息收入，並通過在調整前淨利息收入中排除在綜合SLSt CDOs上認可的利息支出等其他事項，因此僅將本公司實際擁有的SLSt證券所賺取的利息收入納入調整後的淨利息支出。
Conference Call
On Thursday, October 31, 2024 at 9:00 a.m., Eastern Time, New York Mortgage Trust's executive management is scheduled to host a conference call and audio webcast to discuss the Company’s financial results for the three and nine months ended September 30, 2024. To access the conference call, please pre-register at https://register.vevent.com/register/BI47471a7fa6394842b20a96fbb7461214. Registrants will receive confirmation with dial-in details. A live audio webcast of the conference call can be accessed via the Internet, on a listen-only basis, at the Investor Relations section of the Company's website at http://www.nymtrust.com or at https://edge.media-server.com/mmc/p/kz5ryov5/. Please allow extra time, prior to the call, to visit the site and download the necessary software to listen to the Internet broadcast. A webcast replay link of the conference call will be available on the Investor Relations section of the Company’s website approximately two hours after the call and will be available for 12 months.
In connection with the release of these financial results, the Company will also post a supplemental financial presentation that will accompany the conference call on its website at http://www.nymtrust.com under the "Investors — Events and Presentations" section. Third quarter 2024 financial and operating data can be viewed in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, which is expected to be filed with the Securities and Exchange Commission on or about November 1, 2024. A copy of the Form 10-Q will be posted at the Company’s website as soon as reasonably practicable following its filing with the Securities and Exchange Commission.
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 in the business of acquiring, investing in, financing and managing primarily mortgage-related single-family and multi-family residential assets. For a list of defined terms used from time to time in this press release, see “Defined Terms” below.
Defined Terms
The following defines certain of the commonly used terms that may appear in this press release: “RMBS” refers to residential mortgage-backed securities backed by adjustable-rate, hybrid adjustable-rate, or fixed-rate residential loans; “Agency RMBS” refers to RMBS representing interests in or obligations backed by pools of residential loans guaranteed by a government sponsored enterprise (“GSE”), such as the Federal National Mortgage Association (“Fannie Mae”) or the Federal Home Loan Mortgage Corporation (“Freddie Mac”), or an agency of the U.S. government, such as the Government National Mortgage Association (“Ginnie Mae”); “ABS” refers to debt and/or equity tranches of securitizations backed by various asset classes including, but not limited to, automobiles, aircraft, credit cards, equipment, franchises, recreational vehicles and student loans; “non-Agency RMBS” refers to RMBS that are not guaranteed by any agency of the U.S. Government or any GSE; “IOs” refers collectively to interest only and inverse interest only mortgage-backed securities that represent the right to the interest component of the cash flow from a pool of mortgage loans; “POs” refers to mortgage-backed securities that represent the right to the principal component of the cash flow from a pool of mortgage loans; “CMBS” refers to commercial mortgage-backed securities comprised of commercial mortgage pass-through securities issued by a GSE, as well as PO, IO or mezzanine securities that represent the right to a specific component of the cash flow from a pool of commercial mortgage loans; “multi-family CMBS” refers to CMBS backed by commercial mortgage loans on multi-family properties; “CDO” refers to collateralized debt obligation and includes debt that permanently finances the residential loans held in Consolidated SLST, the Company's residential loans held in securitization trusts and a non-Agency RMBS re-securitization that we consolidate or consolidated in our financial statements in accordance with GAAP; “Consolidated SLST” refers to Freddie Mac-sponsored residential loan securitizations, comprised of seasoned re-performing and non-performing residential loans, of which we own the first loss subordinated securities and certain IOs, that we consolidate in our financial statements in accordance with GAAP; “Consolidated VIEs” refers to variable interest entities ("VIE") where the Company is the primary beneficiary, as it has both the power to direct the activities that most significantly impact the economic performance of the VIE and a right to receive benefits or absorb losses of the entity that could be potentially significant to the VIE and that we consolidate in our financial statements in accordance with GAAP; “Consolidated Real Estate VIEs” refers to Consolidated VIEs that own multi-family properties; “business purpose loans” refers to (i) short-term loans that are collateralized by residential properties and are made to investors who intend to rehabilitate and sell the residential property for a profit or (ii) loans that finance (or refinance) non-owner occupied residential properties that are rented to one or more tenants; “Mezzanine Lending” refers, collectively, to preferred equity and mezzanine loan investments; “Multi-Family” portfolio includes multi-family CMBS, Mezzanine Lending and certain equity investments in multi-family assets, including joint venture equity investments; “Single-Family” portfolio includes residential loans, Agency RMBS, non-Agency RMBS and single-family rental properties; and “Other” portfolio includes other investment securities and an equity investment in an entity that originates residential loans.
Cautionary Statement Regarding Forward-Looking Statements
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 which 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 known and unknown risks, uncertainties and assumptions.
Forward-looking statements are based on estimates, projections, beliefs and assumptions of management of the Company 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 outcomes 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; inflation and changes in interest rates and the fair market value of the Company’s assets, including negative changes resulting in margin calls relating to the financing of the Company’s assets; changes in credit spreads; changes in the long-term credit ratings of the U.S., Fannie Mae, Freddie Mac, and Ginnie Mae; general volatility of the markets in which the Company invests; changes in prepayment rates on the loans the Company owns or that underlie the Company’s investment securities; increased rates of default, delinquency or vacancy and/or decreased recovery rates on or at the Company’s assets; the Company’s ability to identify and acquire targeted assets, including assets in its investment pipeline; the Company's ability to dispose of assets from time to time on terms favorable to it, including the disposition over time of its joint venture equity investments; changes in relationships with the Company’s financing counterparties and the Company’s ability to borrow to finance its assets and the terms thereof; changes in the Company's relationships 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; the Company’s ability to make distributions to its stockholders in the future; the Company’s ability to maintain its qualification as a REIT for federal tax purposes; the Company’s ability to maintain its exemption from registration under the Investment Company Act of 1940, as amended; impairments in the value of the collateral underlying the Company's investments; the Company's ability to manage or hedge credit risk, interest rate risk, and other financial and operational risks; the Company's exposure to liquidity risk, risks associated with the use of leverage, and market risks; and risks associated with investing in real estate assets, including changes in business conditions and the general economy, the availability of investment opportunities and the conditions in the market for investment securities, residential loans, structured multi-family investments and other mortgage-, residential housing- and credit-related assets.
These and other risks, uncertainties and factors, including the risk factors and other information described in the Company’s reports filed with the SEC pursuant to the Exchange Act, could cause the Company’s actual results to differ materially from those projected in any forward-looking statements the Company makes. All forward-looking statements speak only as of the date on which they are made. New risks and uncertainties arise over time and it is not possible to predict those events or how they may affect the Company. Except as required by law, the Company is not obligated to, and does not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For Further Information
CONTACT: AT THE COMPANY
Phone: 212-792-0107
Email: InvestorRelations@nymtrust.com
FINANCIAL TABLES FOLLOW
NEW YORK MORTGAGE TRUST, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands, except share data)
| September 30, 2024 | December 31, 2023 | ||||||||||
| (unaudited) | |||||||||||
| ASSETS | |||||||||||
| Residential loans, at fair value | $ | 3,777,144 | $ | 3,084,303 | |||||||
| Investment securities available for sale, at fair value | 3,385,270 | 2,013,817 | |||||||||
| Multi-family loans, at fair value | 87,614 | 95,792 | |||||||||
| Equity investments, at fair value | 146,833 | 147,116 | |||||||||
| Cash and cash equivalents | 195,066 | 187,107 | |||||||||
| Real estate, net | 755,702 | 1,131,819 | |||||||||
| Assets of disposal group held for sale | 197,665 | 426,017 | |||||||||
| Other assets | 360,620 | 315,357 | |||||||||
Total Assets (1) | $ | 8,905,914 | $ | 7,401,328 | |||||||
| LIABILITIES AND EQUITY | |||||||||||
| Liabilities: | |||||||||||
| Repurchase agreements | $ | 3,611,115 | $ | 2,471,113 | |||||||
Collateralized debt obligations ($1,900,228 at fair value and $902,038 at amortized cost, net as of September 30, 2024 and $593,737 at fair value and $1,276,780 at amortized cost, net as of December 31, 2023) | 2,802,266 | 1,870,517 | |||||||||
Senior unsecured notes ($60,900 at fair value and $98,687 at amortized cost, net as of September 30, 2024 and $98,111 at amortized cost, net as of December 31, 2023) | 159,587 | 98,111 | |||||||||
| Subordinated debentures | 45,000 | 45,000 | |||||||||
| Mortgages payable on real estate, net | 492,321 | 784,421 | |||||||||
| Liabilities of disposal group held for sale | 177,869 | 386,024 | |||||||||
| Other liabilities | 145,794 | 118,016 | |||||||||
Total liabilities (1) | 7,433,952 | 5,773,202 | |||||||||
| Commitments and Contingencies | |||||||||||
| Redeemable Non-Controlling Interest in Consolidated Variable Interest Entities | 21,826 | 28,061 | |||||||||
| Stockholders' Equity: | |||||||||||
Preferred stock, par value $0.01 per share, 31,500,000 shares authorized, 22,164,414 shares issued and outstanding ($554,110 aggregate liquidation preference) | 535,445 | 535,445 | |||||||||
Common stock, par value $0.01 per share, 200,000,000 shares authorized, 90,579,449 and 90,675,403 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively | 906 | 907 | |||||||||
| Additional paid-in capital | 2,278,869 | 2,297,081 | |||||||||
| Accumulated other comprehensive loss | — | (4) | |||||||||
| Accumulated deficit | (1,371,073) | (1,253,817) | |||||||||
| Company's stockholders' equity | 1,444,147 | 1,579,612 | |||||||||
| Non-controlling interests | 5,989 | 20,453 | |||||||||
| Total equity | 1,450,136 | 1,600,065 | |||||||||
| Total Liabilities and Equity | $ | 8,905,914 | $ | 7,401,328 | |||||||
(1)Our condensed consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs") as the Company is the primary beneficiary of these VIEs. As of September 30, 2024 and December 31, 2023, assets of consolidated VIEs totaled $4,051,406 and $3,816,777, respectively, and the liabilities of consolidated VIEs totaled $3,517,298 and $3,076,818, respectively.
NEW YORK MORTGAGE TRUST, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)
(unaudited)
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| NET INTEREST INCOME: | |||||||||||||||||||||||
| Interest income | $ | 108,361 | $ | 65,195 | $ | 283,027 | $ | 179,871 | |||||||||||||||
| Interest expense | 88,124 | 48,406 | 225,883 | 130,145 | |||||||||||||||||||
| Total net interest income | 20,237 | 16,789 | 57,144 | 49,726 | |||||||||||||||||||
| NET LOSS FROM REAL ESTATE: | |||||||||||||||||||||||
| Rental income | 26,382 | 34,176 | 90,353 | 107,427 | |||||||||||||||||||
| Other real estate income | 5,521 | 8,215 | 16,093 | 21,486 | |||||||||||||||||||
| Total income from real estate | 31,903 | 42,391 | 106,446 | 128,913 | |||||||||||||||||||
| Interest expense, mortgages payable on real estate | 12,676 | 21,604 | 49,996 | 68,158 | |||||||||||||||||||
| Depreciation and amortization | 8,131 | 6,204 | 32,942 | 18,371 | |||||||||||||||||||
| Other real estate expenses | 18,591 | 22,371 | 60,476 | 66,878 | |||||||||||||||||||
| Total expenses related to real estate | 39,398 | 50,179 | 143,414 | 153,407 | |||||||||||||||||||
| Total net loss from real estate | (7,495) | (7,788) | (36,968) | (24,494) | |||||||||||||||||||
OTHER INCOME (LOSS): | |||||||||||||||||||||||
Realized losses, net | (1,380) | (3,679) | (19,404) | (2,220) | |||||||||||||||||||
Unrealized gains (losses), net | 96,949 | (61,295) | 41,046 | (55,738) | |||||||||||||||||||
(Losses) gains on derivative instruments, net | (60,640) | 20,993 | 4,042 | 38,204 | |||||||||||||||||||
Income from equity investments | 6,054 | 2,056 | 10,026 | 9,223 | |||||||||||||||||||
Impairment of real estate | (7,823) | (44,157) | (48,142) | (71,296) | |||||||||||||||||||
Loss on reclassification of disposal group | — | — | (14,636) | — | |||||||||||||||||||
Other income | 19,715 | 139 | 16,541 | 1,712 | |||||||||||||||||||
Total other income (loss) | 52,875 | (85,943) | (10,527) | (80,115) | |||||||||||||||||||
| GENERAL, ADMINISTRATIVE AND OPERATING EXPENSES: | |||||||||||||||||||||||
General and administrative expenses | 11,941 | 11,826 | 36,643 | 37,824 | |||||||||||||||||||
| Portfolio operating expenses | 8,531 | 5,161 | 23,672 | 17,882 | |||||||||||||||||||
Debt issuance costs | 2,354 | — | 10,452 | — | |||||||||||||||||||
Total general, administrative and operating expenses | 22,826 | 16,987 | 70,767 | 55,706 | |||||||||||||||||||
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES | 42,791 | (93,929) | (61,118) | (110,589) | |||||||||||||||||||
Income tax expense (benefit) | 2,325 | (56) | 2,556 | (59) | |||||||||||||||||||
NET INCOME (LOSS) | 40,466 | (93,873) | (63,674) | (110,530) | |||||||||||||||||||
| Net loss attributable to non-controlling interests | 2,383 | 9,364 | 33,034 | 19,957 | |||||||||||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO COMPANY | 42,849 | (84,509) | (30,640) | (90,573) | |||||||||||||||||||
| Preferred stock dividends | (10,439) | (10,435) | (31,317) | (31,394) | |||||||||||||||||||
| Gain on repurchase of preferred stock | — | 125 | — | 467 | |||||||||||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO COMPANY'S COMMON STOCKHOLDERS | $ | 32,410 | $ | (94,819) | $ | (61,957) | $ | (121,500) | |||||||||||||||
Basic earnings (loss) per common share | $ | 0.36 | $ | (1.04) | $ | (0.68) | $ | (1.33) | |||||||||||||||
Diluted earnings (loss) per common share | $ | 0.36 | $ | (1.04) | $ | (0.68) | $ | (1.33) | |||||||||||||||
| Weighted average shares outstanding-basic | 90,582 | 90,984 | 90,895 | 91,163 | |||||||||||||||||||
| Weighted average shares outstanding-diluted | 90,586 | 90,984 | 90,895 | 91,163 | |||||||||||||||||||
NEW YORK MORTGAGE TRUST, INC. AND SUBSIDIARIES
SUMMARY OF QUARTERLY EARNINGS (LOSS)
(Dollar amounts in thousands, except per share data)
(unaudited)
| For the Three Months Ended | |||||||||||||||||||||||||||||
| September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | |||||||||||||||||||||||||
| Interest income | $ | 108,361 | $ | 90,775 | $ | 83,892 | $ | 78,789 | $ | 65,195 | |||||||||||||||||||
| Interest expense | 88,124 | 71,731 | 66,029 | 61,989 | 48,406 | ||||||||||||||||||||||||
| Total net interest income | 20,237 | 19,044 | 17,863 | 16,800 | 16,789 | ||||||||||||||||||||||||
| Total net loss from real estate | (7,495) | (13,106) | (16,369) | (6,807) | (7,788) | ||||||||||||||||||||||||
Total other income (loss) | 52,875 | (6,080) | (57,323) | 40,685 | (85,943) | ||||||||||||||||||||||||
| Total general, administrative and operating expenses | 22,826 | 23,599 | 24,341 | 17,813 | 16,987 | ||||||||||||||||||||||||
Income (loss) from operations before income taxes | 42,791 | (23,741) | (80,170) | 32,865 | (93,929) | ||||||||||||||||||||||||
Income tax expense (benefit) | 2,325 | 342 | (111) | 134 | (56) | ||||||||||||||||||||||||
Net income (loss) | 40,466 | (24,083) | (80,059) | 32,731 | (93,873) | ||||||||||||||||||||||||
| Net loss attributable to non-controlling interests | 2,383 | 8,494 | 22,158 | 9,177 | 9,364 | ||||||||||||||||||||||||
Net income (loss) attributable to Company | 42,849 | (15,589) | (57,901) | 41,908 | (84,509) | ||||||||||||||||||||||||
| Preferred stock dividends | (10,439) | (10,439) | (10,439) | (10,443) | (10,435) | ||||||||||||||||||||||||
| Gain on repurchase of preferred stock | — | — | — | — | 125 | ||||||||||||||||||||||||
Net income (loss) attributable to Company's common stockholders | 32,410 | (26,028) | (68,340) | 31,465 | (94,819) | ||||||||||||||||||||||||
Basic earnings (loss) per common share | $ | 0.36 | $ | (0.29) | $ | (0.75) | $ | 0.35 | $ | (1.04) | |||||||||||||||||||
Diluted earnings (loss) per common share | $ | 0.36 | $ | (0.29) | $ | (0.75) | $ | 0.35 | $ | (1.04) | |||||||||||||||||||
Weighted average shares outstanding - basic | 90,582 | 90,989 | 91,117 | 90,683 | 90,984 | ||||||||||||||||||||||||
Weighted average shares outstanding - diluted | 90,586 | 90,989 | 91,117 | 91,189 | 90,984 | ||||||||||||||||||||||||
Yield on average interest earning assets (1) | 6.69 | % | 6.46 | % | 6.38 | % | 6.21 | % | 6.03 | % | |||||||||||||||||||
Net interest spread (1) | 1.32 | % | 1.33 | % | 1.31 | % | 1.02 | % | 0.90 | % | |||||||||||||||||||
Undepreciated earnings (loss) (1) | $ | 34,941 | $ | (22,330) | $ | (62,014) | $ | 33,697 | $ | (92,637) | |||||||||||||||||||
Undepreciated earnings (loss) per common share (1) | $ | 0.39 | $ | (0.25) | $ | (0.68) | $ | 0.37 | $ | (1.02) | |||||||||||||||||||
Book value per common share | $ | 9.83 | $ | 9.69 | $ | 10.21 | $ | 11.31 | $ | 11.26 | |||||||||||||||||||
Adjusted book value per common share (1) | $ | 10.87 | $ | 11.02 | $ | 11.51 | $ | 12.66 | $ | 12.93 | |||||||||||||||||||
| Dividends declared per common share | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.30 | |||||||||||||||||||
| Dividends declared per preferred share on Series D Preferred Stock | $ | 0.50 | $ | 0.50 | $ | 0.50 | $ | 0.50 | $ | 0.50 | |||||||||||||||||||
| Dividends declared per preferred share on Series E Preferred Stock | $ | 0.49 | $ | 0.49 | $ | 0.49 | $ | 0.49 | $ | 0.49 | |||||||||||||||||||
| Dividends declared per preferred share on Series F Preferred Stock | $ | 0.43 | $ | 0.43 | $ | 0.43 | $ | 0.43 | $ | 0.43 | |||||||||||||||||||
| Dividends declared per preferred share on Series G Preferred Stock | $ | 0.44 | $ | 0.44 | $ | 0.44 | $ | 0.44 | $ | 0.44 | |||||||||||||||||||
(1)Represents a non-GAAP financial measure. A reconciliation of the Company's non-GAAP financial measures to their most directly comparable GAAP measure is included below in "Reconciliation of Financial Information."
Reconciliation of Financial Information
Non-GAAP Financial Measures
In addition to the results presented in accordance with GAAP, this press release includes certain non-GAAP financial measures, including adjusted interest income, adjusted interest expense, adjusted net interest income (loss), yield on average interest earning assets, average financing cost, net interest spread, undepreciated earnings (loss) and adjusted book value per common share. Our management team believes that these non-GAAP financial measures, when considered with our GAAP financial statements, provide supplemental information useful for investors as it enables them to evaluate our current performance and trends using the metrics that management uses to operate our business. Our presentation of non-GAAP financial measures may not be comparable to similarly-titled measures of other companies, who may use different calculations. Because these measures are not calculated in accordance with GAAP, they should not be considered a substitute for, or superior to, the financial measures calculated in accordance with GAAP. Our GAAP financial results and the reconciliations of the non-GAAP financial measures included in this press release to the most directly comparable financial measures prepared in accordance with GAAP should be carefully evaluated.
Adjusted Net Interest Income (Loss) and Net Interest Spread
Financial results for the Company during a given period include the net interest income earned on our investment portfolio of residential loans, investment securities and preferred equity investments and mezzanine loans, where the risks and payment characteristics are equivalent to and accounted for as loans (collectively, our “interest earning assets”). Adjusted net interest income (loss) and net interest spread (both supplemental non-GAAP financial measures) are impacted by factors such as our cost of financing, including our hedging costs, and the interest rate that our investments bear. Furthermore, the amount of premium or discount paid on purchased investments and the prepayment rates on investments will impact adjusted net interest income (loss) as such factors will be amortized over the expected term of such investments.
We provide the following non-GAAP financial measures, in total and by investment category, for the respective periods:
•adjusted interest income – calculated as our GAAP interest income reduced by the interest expense recognized on Consolidated SLST CDOs,
•adjusted interest expense – calculated as our GAAP interest expense reduced by the interest expense recognized on Consolidated SLST CDOs and adjusted to include the net interest component of interest rate swaps,
•adjusted net interest income (loss) – calculated by subtracting adjusted interest expense from adjusted interest income,
•yield on average interest earning assets – calculated as the quotient of our adjusted interest income and our average interest earning assets and excludes all Consolidated SLST assets other than those securities owned by the Company,
•average financing cost – calculated as the quotient of our adjusted interest expense and the average outstanding balance of our interest bearing liabilities, excluding Consolidated SLST CDOs and mortgages payable on real estate, and
•net interest spread – calculated as the difference between our yield on average interest earning assets and our average financing cost.
These measures remove the impact of Consolidated SLST that we consolidate in accordance with GAAP and include the net interest component of interest rate swaps utilized to hedge the variable cash flows associated with our variable-rate borrowings, which is included in (losses) gains on derivative instruments, net in the Company's condensed consolidated statements of operations. With respect to Consolidated SLST, we only include the interest income earned by the Consolidated SLST securities that are actually owned by the Company as the Company only receives income or absorbs losses related to the Consolidated SLST securities actually owned by the Company. We include the net interest component of interest rate swaps in these measures to more fully represent the cost of our financing strategy.
We provide the non-GAAP financial measures listed above because we believe these non-GAAP financial measures provide investors and management with additional detail and enhance their understanding of our interest earning asset yields, in total and by investment category, relative to the cost of our financing and the underlying trends within our portfolio of interest earning assets. In addition to the foregoing, our management team uses these measures to assess, among other things, the performance of our interest earning assets in total and by asset, possible cash flows from our interest earning assets in total and by asset, our ability to finance or borrow against the asset and the terms of such financing and the composition of our portfolio of interest earning assets, including acquisition and disposition determinations.
A reconciliation of GAAP interest income to adjusted interest income, GAAP interest expense to adjusted interest expense and GAAP total net interest income (loss) to adjusted net interest income (loss) for the three months ended as of the dates indicated is presented below (dollar amounts in thousands):
September 30, 2024 | |||||||||||||||||||||||
| Single-Family | Multi-Family | Corporate/Other | Total | ||||||||||||||||||||
GAAP interest income | $ | 104,608 | $ | 2,699 | $ | 1,054 | $ | 108,361 | |||||||||||||||
| GAAP interest expense | (81,214) | — | (6,910) | (88,124) | |||||||||||||||||||
GAAP total net interest income (loss) | $ | 23,394 | $ | 2,699 | $ | (5,856) | $ | 20,237 | |||||||||||||||
| GAAP interest income | $ | 104,608 | $ | 2,699 | $ | 1,054 | $ | 108,361 | |||||||||||||||
| Adjusted for: | |||||||||||||||||||||||
| Consolidated SLST CDO interest expense | (7,375) | — | — | (7,375) | |||||||||||||||||||
| Adjusted interest income | $ | 97,233 | $ | 2,699 | $ | 1,054 | $ | 100,986 | |||||||||||||||
| GAAP interest expense | $ | (81,214) | $ | — | $ | (6,910) | $ | (88,124) | |||||||||||||||
| Adjusted for: | |||||||||||||||||||||||
| Consolidated SLST CDO interest expense | 7,375 | — | — | 7,375 | |||||||||||||||||||
| Net interest benefit of interest rate swaps | 7,542 | — | 911 | 8,453 | |||||||||||||||||||
| Adjusted interest expense | $ | (66,297) | $ | — | $ | (5,999) | $ | (72,296) | |||||||||||||||
Adjusted net interest income (loss) (1) | $ | 30,936 | $ | 2,699 | $ | (4,945) | $ | 28,690 | |||||||||||||||
June 30, 2024 | |||||||||||||||||||||||
| Single-Family | Multi-Family | Corporate/Other | Total | ||||||||||||||||||||
GAAP interest income | $ | 88,067 | $ | 2,708 | $ | — | $ | 90,775 | |||||||||||||||
| GAAP interest expense | (67,434) | — | (4,297) | (71,731) | |||||||||||||||||||
GAAP total net interest income (loss) | $ | 20,633 | $ | 2,708 | $ | (4,297) | $ | 19,044 | |||||||||||||||
| GAAP interest income | $ | 88,067 | $ | 2,708 | $ | — | $ | 90,775 | |||||||||||||||
| Adjusted for: | |||||||||||||||||||||||
| Consolidated SLST CDO interest expense | (6,752) | — | — | (6,752) | |||||||||||||||||||
| Adjusted interest income | $ | 81,315 | $ | 2,708 | $ | — | $ | 84,023 | |||||||||||||||
| GAAP interest expense | $ | (67,434) | $ | — | $ | (4,297) | $ | (71,731) | |||||||||||||||
| Adjusted for: | |||||||||||||||||||||||
| Consolidated SLST CDO interest expense | 6,752 | — | — | 6,752 | |||||||||||||||||||
| Net interest benefit of interest rate swaps | 7,631 | — | 659 | 8,290 | |||||||||||||||||||
| Adjusted interest expense | $ | (53,051) | $ | — | $ | (3,638) | $ | (56,689) | |||||||||||||||
Adjusted net interest income (loss) (1) | $ | 28,264 | $ | 2,708 | $ | (3,638) | $ | 27,334 | |||||||||||||||
March 31, 2024 | |||||||||||||||||||||||
| Single-Family | Multi-Family | Corporate/Other | Total | ||||||||||||||||||||
GAAP interest income | $ | 81,227 | $ | 2,665 | $ | — | $ | 83,892 | |||||||||||||||
| GAAP interest expense | (61,740) | — | (4,289) | (66,029) | |||||||||||||||||||
GAAP total net interest income (loss) | $ | 19,487 | $ | 2,665 | $ | (4,289) | $ | 17,863 | |||||||||||||||
| GAAP interest income | $ | 81,227 | $ | 2,665 | $ | — | $ | 83,892 | |||||||||||||||
| Adjusted for: | |||||||||||||||||||||||
| Consolidated SLST CDO interest expense | (5,801) | — | — | (5,801) | |||||||||||||||||||
| Adjusted interest income | $ | 75,426 | $ | 2,665 | $ | — | $ | 78,091 | |||||||||||||||
| GAAP interest expense | $ | (61,740) | $ | — | $ | (4,289) | $ | (66,029) | |||||||||||||||
| Adjusted for: | |||||||||||||||||||||||
| Consolidated SLST CDO interest expense | 5,801 | — | — | 5,801 | |||||||||||||||||||
| Net interest benefit of interest rate swaps | 7,177 | — | 1,155 | 8,332 | |||||||||||||||||||
| Adjusted interest expense | $ | (48,762) | $ | — | $ | (3,134) | $ | (51,896) | |||||||||||||||
Adjusted net interest income (loss) (1) | $ | 26,664 | $ | 2,665 | $ | (3,134) | $ | 26,195 | |||||||||||||||
| December 31, 2023 | |||||||||||||||||||||||
| Single-Family | Multi-Family | Corporate/Other | Total | ||||||||||||||||||||
GAAP interest income | $ | 76,119 | $ | 2,670 | $ | — | $ | 78,789 | |||||||||||||||
| GAAP interest expense | (57,489) | — | (4,500) | (61,989) | |||||||||||||||||||
GAAP total net interest income (loss) | $ | 18,630 | $ | 2,670 | $ | (4,500) | $ | 16,800 | |||||||||||||||
| GAAP interest income | $ | 76,119 | $ | 2,670 | $ | — | $ | 78,789 | |||||||||||||||
| Adjusted for: | |||||||||||||||||||||||
| Consolidated SLST CDO interest expense | (6,268) | — | — | (6,268) | |||||||||||||||||||
| Adjusted interest income | $ | 69,851 | $ | 2,670 | $ | — | $ | 72,521 | |||||||||||||||
| GAAP interest expense | $ | (57,489) | $ | — | $ | (4,500) | $ | (61,989) | |||||||||||||||
| Adjusted for: | |||||||||||||||||||||||
| Consolidated SLST CDO interest expense | 6,268 | — | — | 6,268 | |||||||||||||||||||
| Net interest benefit of interest rate swaps | 5,703 | — | 988 | 6,691 | |||||||||||||||||||
| Adjusted interest expense | $ | (45,518) | $ | — | $ | (3,512) | $ | (49,030) | |||||||||||||||
Adjusted net interest income (loss) (1) | $ | 24,333 | $ | 2,670 | $ | (3,512) | $ | 23,491 | |||||||||||||||
| September 30, 2023 | |||||||||||||||||||||||
| Single-Family | Multi-Family | Corporate/Other | Total | ||||||||||||||||||||
GAAP interest income | $ | 61,346 | $ | 3,849 | $ | — | $ | 65,195 | |||||||||||||||
| GAAP interest expense | (44,101) | — | (4,305) | (48,406) | |||||||||||||||||||
GAAP total net interest income (loss) | $ | 17,245 | $ | 3,849 | $ | (4,305) | $ | 16,789 | |||||||||||||||
| GAAP interest income | $ | 61,346 | $ | 3,849 | $ | — | $ | 65,195 | |||||||||||||||
| Adjusted for: | |||||||||||||||||||||||
| Consolidated SLST CDO interest expense | (5,957) | — | — | (5,957) | |||||||||||||||||||
| Adjusted interest income | $ | 55,389 | $ | 3,849 | $ | — | $ | 59,238 | |||||||||||||||
| GAAP interest expense | $ | (44,101) | $ | — | $ | (4,305) | $ | (48,406) | |||||||||||||||
| Adjusted for: | |||||||||||||||||||||||
| Consolidated SLST CDO interest expense | 5,957 | — | — | 5,957 | |||||||||||||||||||
| Net interest benefit of interest rate swaps | 2,994 | — | 872 | 3,866 | |||||||||||||||||||
| Adjusted interest expense | $ | (35,150) | $ | — | $ | (3,433) | $ | (38,583) | |||||||||||||||
Adjusted net interest income (loss) (1) | $ | 20,239 | $ | 3,849 | $ | (3,433) | $ | 20,655 | |||||||||||||||
(1)Adjusted net interest income (loss) is calculated by subtracting adjusted interest expense from adjusted interest income.
Undepreciated Earnings (Loss)
Undepreciated earnings (loss) is a supplemental non-GAAP financial measure defined as GAAP net income (loss) attributable to Company's common stockholders excluding the Company's share in depreciation expense and lease intangible amortization expense, if any, related to operating real estate, net for which an impairment has not been recognized. By excluding these non-cash adjustments from our operating results, we believe that the presentation of undepreciated earnings (loss) provides a consistent measure of our operating performance and useful information to investors to evaluate the effective net return on our portfolio. In addition, we believe that presenting undepreciated earnings (loss) enables our investors to measure, evaluate, and compare our operating performance to that of our peers.
A reconciliation of net income (loss) attributable to Company's common stockholders to undepreciated earnings (loss) for the respective periods ended is presented below (amounts in thousands, except per share data):
| For the Three Months Ended | |||||||||||||||||||||||||||||
| September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | |||||||||||||||||||||||||
Net income (loss) attributable to Company's common stockholders | $ | 32,410 | $ | (26,028) | $ | (68,340) | $ | 31,465 | $ | (94,819) | |||||||||||||||||||
| Add: | |||||||||||||||||||||||||||||
| Depreciation expense on operating real estate | 2,531 | 3,698 | 6,326 | 2,232 | 2,182 | ||||||||||||||||||||||||
Undepreciated earnings (loss) | $ | 34,941 | $ | (22,330) | $ | (62,014) | $ | 33,697 | $ | (92,637) | |||||||||||||||||||
| Weighted average shares outstanding - basic | 90,582 | 90,989 | 91,117 | 90,683 | 90,984 | ||||||||||||||||||||||||
Undepreciated earnings (loss) per common share | $ | 0.39 | $ | (0.25) | $ | (0.68) | $ | 0.37 | $ | (1.02) | |||||||||||||||||||
Adjusted Book Value Per Common Share
Adjusted book value per common share is a supplemental non-GAAP financial measure calculated by making the following adjustments to GAAP book value: (i) exclude the Company's share of cumulative depreciation and lease intangible amortization expenses related to real estate held at the end of the period for which an impairment has not been recognized, (ii) exclude the cumulative adjustment of redeemable non-controlling interests to estimated redemption value and (iii) adjust our amortized cost liabilities that finance our investment portfolio to fair value.
Our rental property portfolio includes fee simple interests in single-family rental homes and joint venture equity interests in multi-family properties owned by Consolidated Real Estate VIEs. By excluding our share of cumulative non-cash depreciation and amortization expenses related to real estate held at the end of the period for which an impairment has not been recognized, adjusted book value reflects the value, at their undepreciated basis, of our single-family rental properties and joint venture equity investments that the Company has determined to be recoverable at the end of the period.
Additionally, in connection with third party ownership of certain of the non-controlling interests in certain of the Consolidated Real Estate VIEs, we record redeemable non-controlling interests as mezzanine equity on our condensed consolidated balance sheets. The holders of the redeemable non-controlling interests may elect to sell their ownership interests to us at fair value once a year, subject to annual minimum and maximum amount limitations, resulting in an adjustment of the redeemable non-controlling interests to fair value that is accounted for by us as an equity transaction in accordance with GAAP. A key component of the estimation of fair value of the redeemable non-controlling interests is the estimated fair value of the multi-family apartment properties held by the applicable Consolidated Real Estate VIEs. However, because the corresponding real estate assets are not reported at fair value and thus not adjusted to reflect unrealized gains or losses in our condensed consolidated financial statements, the cumulative adjustment of the redeemable non-controlling interests to fair value directly affects our GAAP book value. By excluding the cumulative adjustment of redeemable non-controlling interests to estimated redemption value, adjusted book value more closely aligns the accounting treatment applied to these real estate assets and reflects our joint venture equity investment at its undepreciated basis.
The substantial majority of our remaining assets are financial or similar instruments that are carried at fair value in accordance with the fair value option in our condensed consolidated financial statements. However, unlike our use of the fair value option for the assets in our investment portfolio, certain CDOs issued by our residential loan securitizations, certain senior unsecured notes and subordinated debentures that finance our investment portfolio assets are carried at amortized cost in our condensed consolidated financial statements. By adjusting these financing instruments to fair value, adjusted book value reflects the Company's net equity in investments on a comparable fair value basis.
We believe that the presentation of adjusted book value per common share provides a useful measure for investors and us as it provides a consistent measure of our value, allows management to effectively consider our financial position and facilitates the comparison of our financial performance to that of our peers.
A reconciliation of GAAP book value to adjusted book value and calculation of adjusted book value per common share as of the dates indicated is presented below (amounts in thousands, except per share data):
| September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | |||||||||||||||||||||||||
| Company's stockholders' equity | $ | 1,444,147 | $ | 1,431,910 | $ | 1,485,256 | $ | 1,579,612 | $ | 1,575,228 | |||||||||||||||||||
| Preferred stock liquidation preference | (554,110) | (554,110) | (554,110) | (554,110) | (554,110) | ||||||||||||||||||||||||
| GAAP book value | 890,037 | 877,800 | 931,146 | 1,025,502 | 1,021,118 | ||||||||||||||||||||||||
| Add: | |||||||||||||||||||||||||||||
Cumulative depreciation expense on real estate (1) | 19,180 | 21,692 | 24,451 | 21,801 | 21,817 | ||||||||||||||||||||||||
Cumulative amortization of lease intangibles related to real estate (1) | 4,903 | 11,078 | 13,000 | 14,897 | 21,356 | ||||||||||||||||||||||||
| Cumulative adjustment of redeemable non-controlling interest to estimated redemption value | 48,282 | 44,053 | 36,489 | 30,062 | 17,043 | ||||||||||||||||||||||||
| Adjustment of amortized cost liabilities to fair value | 21,961 | 43,475 | 44,590 | 55,271 | 90,929 | ||||||||||||||||||||||||
| Adjusted book value | $ | 984,363 | $ | 998,098 | $ | 1,049,676 | $ | 1,147,533 | $ | 1,172,263 | |||||||||||||||||||
| Common shares outstanding | 90,579 | 90,592 | 91,231 | 90,675 | 90,684 | ||||||||||||||||||||||||
GAAP book value per common share (2) | $ | 9.83 | $ | 9.69 | $ | 10.21 | $ | 11.31 | $ | 11.26 | |||||||||||||||||||
Adjusted book value per common share (3) | $ | 10.87 | $ | 11.02 | $ | 11.51 | $ | 12.66 | $ | 12.93 | |||||||||||||||||||
(1)Represents cumulative adjustments for the Company's share of depreciation expense and amortization of lease intangibles related to real estate held as of the end of the period presented for which an impairment has not been recognized.
(2)GAAP book value per common share is calculated using the GAAP book value and the common shares outstanding for the periods indicated.
(3)Adjusted book value per common share is calculated using the adjusted book value and the common shares outstanding for the periods indicated.
Equity Investments in Multi-Family Entities
We own joint venture equity investments in entities that own multi-family properties. We determined that these joint venture entities are VIEs and that we are the primary beneficiary of all but two of these VIEs, resulting in consolidation of the VIEs where we are the primary beneficiary, including their assets, liabilities, income and expenses, in our condensed consolidated financial statements with non-controlling interests for the third-party ownership of the joint ventures' membership interests. With respect to the two additional joint venture equity investments for which we determined that we are not the primary beneficiary, we record our equity investments at fair value.
In September 2022, the Company announced a repositioning of its business through the opportunistic disposition over time of the Company's joint venture equity investments in multi-family properties and reallocation of its capital away from such assets to its targeted assets. Accordingly, as of September 30, 2024, the Company determined that certain joint venture equity investments meet the criteria to be classified as held for sale and the assets and liabilities of the respective Consolidated VIEs are reported in assets and liabilities of disposal group held for sale.
We also own a preferred equity investment in a VIE that owns a multi-family property and for which, as of September 30, 2024, the Company is the primary beneficiary, resulting in consolidation of the assets, liabilities, income and expenses of the VIE in our condensed consolidated financial statements with a non-controlling interest for the third-party ownership of the VIE's membership interests.
A reconciliation of our net equity investments in consolidated multi-family properties and disposal group held for sale to our condensed consolidated financial statements as of September 30, 2024 is shown below (dollar amounts in thousands):
| Cash and cash equivalents | $ | 6,194 | ||||||
Real estate, net (1) | 610,967 | |||||||
| Assets of disposal group held for sale | 197,665 | |||||||
| Other assets | 21,981 | |||||||
| Total assets | $ | 836,807 | ||||||
| Mortgages payable on real estate, net | $ | 492,321 | ||||||
| Liabilities of disposal group held for sale | 177,869 | |||||||
| Other liabilities | 14,917 | |||||||
| Total liabilities | $ | 685,107 | ||||||
| Redeemable non-controlling interest in Consolidated VIEs | $ | 21,826 | ||||||
| Less: Cumulative adjustment of redeemable non-controlling interest to estimated redemption value | (48,282) | |||||||
| Non-controlling interest in Consolidated VIEs | 3,899 | |||||||
| Non-controlling interest in disposal group held for sale | 1,964 | |||||||
Net equity investment (2) | $ | 172,293 | ||||||
(1)Includes real estate held for sale in the amount of $23.6 million.
(2)The Company's net equity investment as of September 30, 2024 consists of $154.5 million of net equity investments in consolidated multi-family properties and $17.8 million of net equity investments in disposal group held for sale.