纽约抵押信托报告
2024年第三季度成果
纳斯达克：2024年10月30日纽约（GLOBE NEWSWIRE）- 纽约抵押信托公司（纳斯达克：NYMT）（以下简称“NYMT”，“公司”，“我们”或“我们”）今日公布了截至2024年9月30日的三个月和九个月的业绩。
2024年第三季摘要：
(以千元计算，除每股资料外的全部金额)
归属于公司普通股东的净利润 | $ | 32,410 | |||
归属于公司普通股东的每股基本净利润 | $ | 0.36 | |||
未折旧收益 (1) | $ | 34,941 | |||
每股普通股的未折旧收益 (1) | $ | 0.39 | |||
归属于公司普通股东的综合收益 | $ | 32,410 | |||
归属于公司普通股东的每股基本综合收益 | $ | 0.36 | |||
平均利息收入资产的利润率 (1) (2) | 6.69 | % | |||
| 利息收入 | $ | 108,361 | |||
| 利息费用 | $ | 88,124 | |||
| 净利息收益 | $ | 20,237 | |||
息差净收益 (1) (3) | 1.32 | % | |||
| 期末每股普通股的帐面价值 | $ | 9.83 | |||
期末每股普通股的调整帐面价值 (1) | $ | 10.87 | |||
帐面价值的经济回报 (4) | 3.51 | % | |||
调整帐面价值的经济回报 (5) | 0.45 | % | |||
| 每股普通股的分红派息 | $ | 0.20 | |||
(1)代表一项非依照通用会计原则（GAAP）的财务指标。该公司的非GAAP财务指标与其最直接可比较的GAAP措施的调解已包含在下方的「财务信息调解」中。
(2)根据我们调整后的利息收入和平均利息收益资产的商数计算，并排除所有合并SLSt资产，除了公司所拥有的证券。
(3)我们对净利差的计算可能与其他公司使用不同计算方法的同类指标不可比较。
(4)以GAAP净资产价值每股期间变动加上每股分红派息（如有）计算净资产价值经济回报。
(5)根据调整后股东权益的周期变化及每股普通股的分红派息（如果有的话）来计算调整后帐面值的经济回报，该指标为一个非通用会计原则的财务指标。
重要发展：
投资活动
•我们持有共同股权投资的一家合资创业公司出售其大型多户公寓社区，金额约为5640万美元。此次出售为公司普通股股东产生约870万美元净利。
•我们持有合并优先股和普通股投资的一家合资公司，以约4350万美元的价格出售了一个多家庭公寓社区。这笔交易为公司普通股股东产生了约150万美元的净收益。
•购入约$372.2百万美元的机构RMBS，平均债券利率为5.33%。
•购买了大约6.242亿美元的住宅贷款，平均净票息为9.72%。
融资活动
•完成了一笔业务用途贷款的证券化交易，导致我们约23580万美元的净收益，扣除与交易相关的费用后。 我们利用部分净收益来偿还与住宅贷款相关的尚未清偿的回购协议，金额约为18460万美元。.
•完成了对我们投资的再证券化 部分次偿权证券已发行由Consolidated SLSt，导致我们获得约 $7300万 的净收益，扣除与交易相关的费用后。我们利用部分净收益还清了关于我们投资于Consolidated SLSt的尚未清偿的约 $4880万的回购协议融资。
管理概观
Jason Serrano，首席执行官，评论说：「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来开始的投资组合重组的结果。 作为计划的一部分，我们专注于可以交付高循环利息收入的收购，通过从表现不佳的回报机会进行轮换。 因此，公司第三季度报告的综合调整净利息收入为2900万美元，较上年同期增长39%。
过去一年，我们坚持谨慎的方式来平衡资产负债表的增长，优先考虑包含基本稳定收入的投资，并且没有偏离我们的目标。未来，我们打算释放公司的过剩流动性，为持续的投资组合增长提供支持，进一步增加公司收益，特别是在没有任何企业债务到2026年之前。我们认为在这个市场环境中谨慎地对待收益增长是明智之举，以提高股东价值。
资本配置
以下表格列出了2024年9月30日按投资类别分配的资本（金额以千美元为单位）：
独立住宅 (1) | 多元资产 / 其他 家庭 | 公司/其他 | 总计 | ||||||||||||||||||||
| 住宅贷款 | $ | 3,777,144 | $ | — | $ | — | $ | 3,777,144 | |||||||||||||||
| 综合SLSt CDO | (845,811) | — | — | (845,811) | |||||||||||||||||||
| 可供出售的投资证券 | 3,036,182 | — | 349,088 | 3,385,270 | |||||||||||||||||||
| 多家庭贷款 | — | 87,614 | — | 87,614 | |||||||||||||||||||
| 股权投资 | — | 100,378 | 46,455 | 146,833 | |||||||||||||||||||
合并式多家庭房产的股权投资 (2) | — | 154,462 | — | 154,462 | |||||||||||||||||||
处分群组持有待售的股权投资 (3) | — | 17,831 | — | 17,831 | |||||||||||||||||||
| 单一家庭租赁房产 | 144,736 | — | — | 144,736 | |||||||||||||||||||
| 投资组合总帐面价值 | 6,112,251 | 360,285 | 395,543 | 6,868,079 | |||||||||||||||||||
| 负债： | |||||||||||||||||||||||
回购协议 | (3,258,175) | — | (352,940) | (3,611,115) | |||||||||||||||||||
担保债务抵押贷款证券 | |||||||||||||||||||||||
| 住宅贷款证券化CDO | (1,883,817) | — | — | (1,883,817) | |||||||||||||||||||
非机构RMBS再证券化 | (72,638) | — | — | (72,638) | |||||||||||||||||||
| 优先无抵押票据 | — | — | (159,587) | (159,587) | |||||||||||||||||||
| 次顺位债券 | — | — | (45,000) | (45,000) | |||||||||||||||||||
现金、货币及受限制现金 (4) | 104,220 | — | 221,582 | 325,802 | |||||||||||||||||||
| 赎回式非控制权益的累计调整至预估赎回价值 | — | (48,282) | — | (48,282) | |||||||||||||||||||
| 其他 | 111,504 | (1,306) | (39,493) | 70,705 | |||||||||||||||||||
| 公司资本分配 | $ | 1,113,345 | $ | 310,697 | $ | 20,105 | $ | 1,444,147 | |||||||||||||||
公司负债杠杆比 (5) | 2.6 | x | |||||||||||||||||||||
投资组合负债杠杆比 (6) | 2.5 | x | |||||||||||||||||||||
(1)本公司通过拥有某些证券已确定是综合SLSt的主要受益人，并在公司的简明综合基本报表中合并了综合SLSt的资产和负债。 综合SLSt主要以住宅贷款，按公平价值和抵押债务令券，按公平价值，在我们的简明综合资产负债表上呈现。 截至2024年9月30日，我们对综合SLSt的投资仅限于由首要损失次级证券组成的RMBS以及由相应证券化发行的特定IO，其净携带价值总额为 $15750万。
(2)代表公司对非处于待售处分群组的合并多家庭房地产的股权投资。请参阅下面的「财务资讯调整」部分，以了解合并多家庭房地产和待售处分群组的股权投资与公司的简明综合财务报表的调节。
(3)代表公司持有待售处置群组中的合并多家庭物业股权。请参阅下面「基本报表资讯调节」部分，以了解合并多家庭物业股权和待售处置群组股权调节至公司简明合并基本报表的调节情况。
(4)不包括公司在合并持有的多家庭物业和处分组合内合并持有的多家庭房地产资产中总额为$920万的现金。受限现金$13690万包括在公司附带之简明综合资产负债表中的其他资产。
(5)代表公司的全部未清担保赎回协议融资、优先债务及债务人次级债券除以公司总股东权益。不包括3460万美元的非担保买回协议融资，84580万美元的SLSt CDOs，19亿美元的住房贷款证券化CDOs，7260万美元的非机构RMBS再证券化CDOs，以及房地产担保的应付抵押贷款，包括待售处置群组房地产的应付抵押贷款，总计662.6百万美元，因为它们是非担保债务。
(6)代表公司杰出的追索回购协议融资，以公司总股东权益为分母。
下表列出我们按类别分类的利息赚取资产相关的调整后利息收入、调整后利息支出、调整后净利息收入（损失）、平均利息赚取资产收益率、平均融资成本和净利息差额为 截至2024年9月30日及2023年的三个月 2024年9月30日 （金额以千为单位）：
2024年9月30日结束的三个月
单一家庭 (8) | 多元资产 / 其他 家庭 | 公司/其他 | 总计 | ||||||||||||||||||||
调整后利息收入 (1) (2) | $ | 97,233 | $ | 2,699 | $ | 1,054 | $ | 100,986 | |||||||||||||||
调整后利息支出 (1) | (66,297) | — | (5,999) | (72,296) | |||||||||||||||||||
调整后净利息收入（损失） (1) | $ | 30,936 | $ | 2,699 | $ | (4,945) | $ | 28,690 | |||||||||||||||
平均利息收入资产 (3) | $ | 5,841,444 | $ | 91,164 | $ | 103,275 | $ | 6,035,883 | |||||||||||||||
平均利息轴承负债 (4) | $ | 4,976,522 | $ | — | $ | 379,590 | $ | 5,356,112 | |||||||||||||||
平均利息收入资产收益率 (1) (5) | 6.66 | % | 11.84 | % | 4.08 | % | 6.69 | % | |||||||||||||||
平均融资成本 (1) (6) | (5.30) | % | — | (6.29) | % | (5.37) | % | ||||||||||||||||
净利差 (1) (7) | 1.36 | % | 11.84 | % | (2.21) | % | 1.32 | % | |||||||||||||||
(1)代表非依照通用会计原则计算之财务指标。 下方包括公司非依照通用会计原则计算之财务指标与其相对应之最接近通用会计原则计算之指标之对帐单。
(2)包括公司持有的现金账户所赚取的利息收入。
(3)该时期的平均利息赚取资产包括住宅贷款、多家庭住宅贷款和投资证券，并且不包括所有合并SLSt资产，除了公司拥有的证券。平均利息赚取资产是基于该时期的每日摊销成本计算的。
(4)期间内的平均利息负债包括回购协议、住宅贷款证券化、非机构RMBS再证券化CDO、优先无担保票据和次顺位债券，并排除综合SLSt CDO和房地产业上应付的按揭贷款，因为公司对这些用于GAAP目的的负债并不直接支付利息费用。平均利息负债是基于期间内的日均余额计算的。
(5)平均利息赚取资产收益率是通过将我们与利息赚取资产相关的年化调整利息收入除以我们该期间的平均利息赚取资产来计算的。
(6)平均融资成本是通过将我们的年化调整利息费用除以我们的平均利息负债来计算。
(7)净利息差是我们平均利息收入资产的收益与我们平均融资成本之间的差异。
(8)本公司已确定其为综合SLSt的主要受益人，并将综合SLSt纳入本公司的简明综合基本报表中。我们的GAAP利息收入包括在综合SLSt持有的基础季节性再执行和非执行住宅贷款上认可的利息收入。我们的GAAP利息支出包括在永久理财综合SLSt住宅贷款的SLSt CDOs上认可的利息支出，这些CDOs不是本公司拥有的。我们通过将我们的GAAP利息收入减少综合SLSt CDOs上认可的利息支出来计算调整后的利息收入，并通过在调整前净利息收入中排除在综合SLSt CDOs上认可的利息支出等其他事项，因此仅将本公司实际拥有的SLSt证券所赚取的利息收入纳入调整后的净利息支出。
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.