New York Mortgage Trust has recently released its 10-Q report, detailing its activities and financial performance for the quarter. The company, incorporated in 2003 and headquartered in New York, acquires, invests in, finances, and manages mortgage-related single-family and multi-family residential assets in the United States. Its targeted investments include residential loans, structured multi-family property investments, non-agency residential mortgage-backed securities (RMBS), agency RMBS, commercial mortgage-backed securities (CMBS), single-family rental properties, and other mortgage, residential housing, and credit-related assets. The company also qualifies as a real estate investment trust for federal income tax purposes.
In the 10-Q report, New York Mortgage Trust discussed the activity in its investment portfolio for the three months ended March 31, 2024. During this period, the company continued to purchase Agency RMBS and selectively pursued new single-family residential loans. The investment activity was offset primarily by prepayments, redemptions, and distributions. The total investment portfolio as of March 31, 2024, stood at $5.35 billion, with residential loans accounting for $2.36 billion, investment securities available for sale at $2.24 billion, and other investments comprising the remaining balance.
The company's objective is to deliver long-term stable distributions to its stockholders through a combination of net interest spread and capital gains from a diversified investment portfolio. New York Mortgage Trust has elected to be taxed as a real estate investment trust for U.S. federal income tax purposes, and it expects to be subject to some federal, state, and local taxes on income generated in its taxable REIT subsidiaries, even if it maintains its qualification as a REIT.
The report also discussed the challenges faced by the company in building out a low-levered, higher-yielding portfolio of credit-sensitive single-family and multi-family assets since the significant market disruption in March 2020. Despite the challenges, the company managed to expand its total investment portfolio to approximately $4.6 billion as of June 30, 2022, up from $3.6 billion as of December 31, 2021. However, the improved investment environment was short-lived due to heightened interest rate volatility and credit spread widening following the Federal Reserve's actions to subdue inflation.
The market has reacted to these announcements by moving the company's shares -0.9% to a price of $6.21. Check out the company's full 10-Q submission here.
