The following is a summary of the Great Ajax Corp. (AJX) Q3 2024 Earnings Call Transcript:
Financial Performance:
Great Ajax Corp reports a GAAP net income loss of $8 million or $0.18 per diluted share for Q3.
Earnings available for distribution were negative $5.4 million or $0.12 per diluted share.
Declared a dividend in the third quarter of $0.06.Cash and equivalents on the balance sheet amounted to $84 million with $30 million available for investment and maintaining a roughly $50 million reserve.
Business Progress:
Unwound $85 million of residential mortgage loans generating around $18 million in cash.
Sold 62.7 million of residential securities, which generated $14 million of cash.
Closed in $100 million notional amount of AAA CMBS at approximately a 12% levered return.
Aiming for breakeven before dividends by the end of Q1 next year.
The company plans to change its name from Great Ajax to Rithm Property Trust in the fourth quarter.
Opportunities:
Entered bids on $1 billion of assorted commercial real estate loans as part of a strategy to redeploy capital into cash flowing assets.
Significant potential identified in managing out of banks' workout groups, which is becoming a focused area due to the recalibration of bank lending against distressed assets.
Risks:
Current investments might continue to experience negative carrying until strategic transformations are realized.
Balancing the risk of maintaining dividend payments amidst financial losses until redirection strategies are fully implemented.
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