Angel Oak Mortgage REIT, Inc. (NYSE: AOMR) (the “Company,”
“we,” and “our”), a leading real estate finance company focused
on acquiring and investing in first lien non-QM loans and other
mortgage-related assets in the U.S. mortgage market, today reported
financial results for the quarter ended March 31, 2023.
First Quarter Highlights
- Q1 2023 GAAP net income of $0.5 million, or $0.02 per diluted
share of common stock.
- Q1 2023 Distributable Earnings loss of ($9.1) million, or
($0.37) per diluted share of common stock.
- GAAP book value increased to $9.80 per share of common stock as
of March 31, 2023, up from $9.49 per share of common stock as of
December 31, 2022.
- Economic book value increased to $13.39 per share of common
stock as of March 31, 2023, up from $13.11 per share of common
stock as of December 31, 2022.
- Declared dividend of $0.32 per share of common stock, payable
on May 31, 2023, to common stockholders of record as of May 22,
2023.
Sreeni Prabhu, Chief Executive Officer and President of the
Company, commented, “The first quarter of 2023 has shown signs of
stabilization compared to 2022; however, volatility remains in
rates and securitization markets as uncertainty regarding future
Fed policy decisions, unemployment and recession concerns, and the
failure of several regional banks have fueled investor
apprehension. Fortunately, our execution in late-2022 in accordance
with our strategic plan to reposition our portfolio, improve
liquidity, and reduce risk, allowed AOMR to weather the continued
volatility. We are pleased with our results; notably, we achieved a
3.3% increase in GAAP book value and a 2.1% increase in Economic
Book Value, respectively, compared to the prior quarter. We were
able to take advantage of the stronger securitization market in
January to participate in the closing of the AOMT 2023-1
securitization, which drove positive economics and strengthened our
portfolio, and we look forward to executing our next securitization
shortly. Additionally, I am pleased to say that we have resumed
purchasing newly originated, higher-coupon loans. I am confident in
our strategy and our team, and I look forward to demonstrating the
earnings power of our portfolio in the coming quarters.”
First Quarter Portfolio and Investment Activity
- In January 2023, the Company participated in AOMT 2023-1, an
approximately $580.5 million scheduled principal balance
securitization backed by a pool of residential mortgage loans, to
which the Company contributed loans with a scheduled principal
balance of $241 million. This was AOMR’s first securitization in
which it participated alongside other Angel Oak entities since
2020.
- In addition to releasing $16 million of cash, the Company
retained its economic ownership interest in the rated bonds from
the securitization, which had a fair value of $22 million as of the
deal date.
- Distributable Earnings are negative due to the realization of
losses on loans contributed to the AOMT 2023-1 securitization;
however, a higher valuation of the loans upon securitization drove
positive net GAAP economics of approximately $10MM.
Capital Markets Activity
- Contributed to the AOMT 2023-1 securitization, contributing
$241.3 million scheduled unpaid principal balance.
- As of March 31, 2023, the Company was party to three financing
lines which permit borrowings in an aggregate amount of up to $1.1
billion.
- Our total financing capacity as of March 31, 2023, stands at
$1.13 billion of which approximately $440 million is drawn, leaving
capacity of approximately $690 million for new loan purchases.
Balance Sheet
- Target assets totaled $2.1 billion as of March 31, 2023.
- Held residential mortgage whole loans with fair value of $544.4
million as of March 31, 2023.
- Recourse debt to equity ratio was 3.6x as of March 31, 2023. As
of today’s date, our recourse debt to equity ratio was 2.0x,
reflecting the maturity of US Treasury bill repurchases on April
11, 2023. This represents a decrease of 0.9x versus our recourse
debt to equity ratio of 2.9x as of December 31, 2022.
Corporate
- During the first quarter, the Company’s name changed to Angel
Oak Mortgage REIT, Inc. The Company’s website, CUSIP, and New York
Stock Exchange ticker symbol remained unchanged.
Dividend
On May 4, 2023, the Company declared a dividend of $0.32 per
share of common stock for the first quarter of 2023. The dividend
is payable on May 31, 2023, to common stockholders of record as of
May 22, 2023.
Conference Call and Webcast Information
The Company will host a live conference call and webcast today,
May 4, 2023, at 8:30 a.m. Eastern time. To listen to the live
webcast, go to the Investors section of the Company’s website at
www.angeloakreit.com at least 15 minutes prior to the scheduled
start time to register and install any necessary audio
software.
To Participate in the Telephone Conference Call:
Dial in at least 15 minutes prior to start time. Domestic:
1-844-826-3033 International: 1-412-317-5185
Conference Call Playback:
Domestic: 1-844-512-2921 International: 1-412-317-6671 Passcode:
10177511 The playback can be accessed through May 18, 2023.
Non-GAAP Metrics
Distributable Earnings is a non‑GAAP measure and is defined as
net income (loss) allocable to common stockholders as calculated in
accordance with generally accepted accounting principles in the
United States of America (“GAAP”), excluding (1) unrealized gains
and losses on our aggregate portfolio, (2) impairment losses, (3)
extinguishment of debt, (4) non-cash equity compensation expense,
(5) the incentive fee earned by our Manager, (6) realized gains or
losses on swap terminations and (7) certain other nonrecurring
gains or losses. We believe that the presentation of Distributable
Earnings provides investors with a useful measure to facilitate
comparisons of financial performance among our REIT peers, but has
important limitations. We believe Distributable Earnings as
described above helps evaluate our financial performance without
the impact of certain transactions but is of limited usefulness as
an analytical tool. Therefore, Distributable Earnings should not be
viewed in isolation and is not a substitute for net income computed
in accordance with GAAP. Our methodology for calculating
Distributable Earnings may differ from the methodologies employed
by other REITs to calculate the same or similar supplemental
performance measures, and as a result, our Distributable Earnings
may not be comparable to similar measures presented by other
REITs.
Economic book value is a non-GAAP financial measure of our
financial position. To calculate our economic book value, the
portions of our non-recourse financing obligation held at amortized
cost are adjusted to fair value. These adjustments are also
reflected in our end of period total stockholders’ equity.
Management considers economic book value to provide investors with
a useful supplemental measure to evaluate our financial position as
it reflects the impact of fair value changes for our legally held
retained bonds, irrespective of the accounting model applied for
GAAP reporting purposes. Economic book value does not represent and
should not be considered as a substitute for book value per share
of common stock or stockholders’ equity, as determined in
accordance with GAAP, and our calculation of this measure may not
be comparable to similarly titled measures reported by other
companies.
Forward-Looking Statements
This press release contains certain forward-looking statements
that are subject to various risks and uncertainties, including,
without limitation, statements relating to the performance of the
Company’s investments. Forward-looking statements are generally
identifiable by use of forward-looking terminology such as “may,”
“will,” “should,” “potential,” “intend,” “expect,” “endeavor,”
“seek,” “anticipate,” “estimate,” “believe,” “could,” “project,”
“predict,” “continue,” or by the negative of these words and
phrases or other similar words or expressions. Forward-looking
statements are based on certain assumptions, discuss future
expectations, describe existing or future plans and strategies,
contain projections of results of operations, liquidity and/or
financial condition, or state other forward-looking information.
The Company’s ability to predict future events or conditions or
their impact or the actual effect of existing or future plans or
strategies is inherently uncertain. Although the Company believes
that such forward-looking statements are based on reasonable
assumptions, actual results and performance in the future could
differ materially from those set forth in or implied by such
forward-looking statements. You are cautioned not to place undue
reliance on these forward‐looking statements, which reflect the
Company’s views only as of the date of this press release.
Additional information concerning factors that could cause actual
results and performance to differ materially from these
forward-looking statements is contained from time to time in the
Company’s filings with the Securities and Exchange Commission.
Except as required by applicable law, neither the Company nor any
other person assumes responsibility for the accuracy and
completeness of the forward‐looking statements. The Company does
not undertake any obligation to update any forward-looking
statements contained in this press release as a result of new
information, future events or otherwise.
About Angel Oak Mortgage REIT, Inc.
Angel Oak Mortgage REIT, Inc. is a real estate finance company
focused on acquiring and investing in first lien non-QM loans and
other mortgage-related assets in the U.S. mortgage market. The
Company’s objective is to generate attractive risk-adjusted returns
for its stockholders through cash distributions and capital
appreciation across interest rate and credit cycles. The Company is
externally managed and advised by an affiliate of Angel Oak Capital
Advisors, LLC, which, collectively with its affiliates, is a
leading alternative credit manager with market leadership in
mortgage credit that includes asset management, lending, and
capital markets. Additional information about the Company is
available at www.angeloakreit.com.
Angel Oak Mortgage REIT,
Inc. Condensed Consolidated Statements of Operations and
Comprehensive Income (Loss) (Unaudited) (in thousands,
except for share and per share data)
Three Months Ended
March 31, 2023
March 31, 2022
INTEREST INCOME, NET
Interest income
$
23,740
$
27,109
Interest expense
16,941
10,170
NET INTEREST INCOME
6,799
16,939
REALIZED AND UNREALIZED GAINS (LOSSES),
NET
Net realized gain (loss) on mortgage
loans, derivative contracts, RMBS, and CMBS
(10,843
)
26,416
Net unrealized gain (loss) on trading
securities, mortgage loans, debt at fair value option, and
derivative contracts
10,190
(80,181
)
TOTAL REALIZED AND UNREALIZED GAINS
(LOSSES), NET
(653
)
(53,765
)
EXPENSES
Operating expenses
2,204
3,784
Operating expenses incurred with
affiliate
466
855
Due diligence and transaction costs
—
770
Stock compensation
541
871
Securitization costs
833
2,019
Management fee incurred with affiliate
1,522
1,873
Total operating expenses
5,616
10,172
INCOME (LOSS) BEFORE INCOME
TAXES
530
(46,998
)
Income tax benefit
—
(3,457
)
NET INCOME (LOSS)
530
$
(43,541
)
Preferred dividends
—
(4
)
NET INCOME (LOSS) ALLOCABLE TO COMMON
STOCKHOLDERS
$
530
$
(43,545
)
Other comprehensive income (loss)
14,804
(12,987
)
TOTAL COMPREHENSIVE INCOME
(LOSS)
$
15,334
$
(56,532
)
Basic earnings (loss) per common share
$
0.02
$
(1.77
)
Diluted earnings (loss) per common
share
$
0.02
$
(1.77
)
Weighted average number of common
shares outstanding:
Basic
24,662,737
24,642,961
Diluted
24,925,357
24,642,961
Angel Oak Mortgage REIT,
Inc. Condensed Consolidated Balance Sheets
(Unaudited) (in thousands, except for share and per share
data)
As of:
March 31, 2023
December 31, 2022
ASSETS
Residential mortgage loans - at fair
value
$
544,436
$
770,982
Residential mortgage loans in
securitization trusts - at fair value
1,028,768
1,027,442
Commercial mortgage loans - at fair
value
9,460
9,458
RMBS - at fair value
522,887
1,055,338
CMBS - at fair value
6,480
6,111
U.S. Treasury securities - at fair
value
399,632
—
Cash and cash equivalents
36,772
29,272
Restricted cash
20,845
10,589
Principal and interest receivable
13,645
17,497
Unrealized appreciation on TBAs and
interest rate futures contracts - at fair value
—
14,756
Other assets
16,244
4,767
Total assets
$
2,599,169
$
2,946,212
LIABILITIES AND STOCKHOLDERS’
EQUITY
LIABILITIES
Notes payable
$
439,252
$
639,870
Non-recourse securitization obligation,
collateralized by residential mortgage loans in securitization
trusts
1,012,704
1,003,485
Securities sold under agreements to
repurchase
442,214
52,544
Due to broker
447,568
1,006,022
Unrealized depreciation on TBAs and
interest rate futures contracts - at fair value
8,417
—
Accrued expenses
652
1,288
Accrued expenses payable to affiliate
1,184
2,006
Interest payable
1,281
2,551
Management fee payable to affiliate
1,519
1,967
Total liabilities
$
2,354,791
$
2,709,733
Commitments and contingencies
STOCKHOLDERS’ EQUITY
Common stock, $0.01 par value. As of March
31, 2023: 350,000,000 shares authorized, 24,925,357 shares issued
and outstanding. As of December 31, 2022: 350,000,000 shares
authorized, 24,925,357 shares issued and outstanding.
249
249
Additional paid-in capital
475,920
475,379
Accumulated other comprehensive income
(6,323
)
(21,127
)
Retained (deficit) earnings
(225,468
)
(218,022
)
Total stockholders’ equity
$
244,378
$
236,479
Total liabilities and stockholders’
equity
$
2,599,169
$
2,946,212
Angel Oak Mortgage REIT,
Inc. Reconciliation of Net Income (Loss) to Distributable
Earnings and Distributable Earnings Return on Average
Equity (Unaudited)
Three Months Ended
March 31, 2023
March 31, 2022
($ in thousands)
Net income (loss) allocable to common
stockholders
$
530
$
(43,545
)
Adjustments:
Net unrealized (gains) losses on
derivatives
24,536
(15,326
)
Net unrealized (gains) losses on trading
securities
(1,605
)
—
Net unrealized (gains) losses on
residential loans in securitization trusts and non-recourse
securitization obligation
6,237
30,210
Net unrealized (gains) losses on
residential loans
(39,437
)
64,587
Net unrealized (gains) losses on
commercial loans
(11
)
496
Non-cash equity compensation expense
541
871
Distributable Earnings
$
(9,119
)
$
37,293
Angel Oak Mortgage REIT,
Inc. Reconciliation of Stockholders’ Equity to Stockholders’
Equity Including Economic Book Value Adjustments and
Economic Book Value per Common Share (Unaudited)
March 31, 2023
December 31,
2022
GAAP total common stockholders’ equity for
book value per share of common stock
$
244,378
$
236,479
Adjustments:
Fair value adjustment for securitized debt
held at amortized cost
89,284
90,348
Stockholders’ equity including economic
book value adjustments
$
333,662
$
326,827
Number of common shares outstanding at
period end
24,925,357
24,925,357
Book value per common share
$
9.80
$
9.49
Economic book value per common share
$
13.39
$
13.11
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230504005490/en/
Investors: investorrelations@angeloakreit.com
855-502-3920 Media: Bernardo Soriano, Gregory FCA for Angel
Oak Mortgage REIT, Inc. 914-656-3880 bernardo@gregoryfca.com
Company Contact: Randy Chrisman, Chief Marketing &
Corporate Investor Relations Officer, Angel Oak Capital Advisors
404-953-4969 randy.chrisman@angeloakcapital.com
Angel Oak Mortgage REIT (NYSE:AOMR)
Historical Stock Chart
Von Apr 2024 bis Mai 2024
Angel Oak Mortgage REIT (NYSE:AOMR)
Historical Stock Chart
Von Mai 2023 bis Mai 2024