New York Mortgage Trust, Inc. has recently released its 10-K report, providing an insight into the company's operations and financial performance. The company, incorporated in 2003 and headquartered in New York, acquires, invests in, finances, and manages primarily mortgage-related single-family and multi-family residential assets in the United States. New York Mortgage Trust, Inc. qualifies as a real estate investment trust for federal income tax purposes and aims to deliver long-term stable distributions to its stockholders through a combination of net interest spread and capital gains from a diversified investment portfolio.
In the 10-K report, New York Mortgage Trust, Inc. discussed its strategic initiatives and investment activities. The company significantly curtailed its investment activity and pipeline in 2022 in anticipation of a recession to conserve capital, preserve liquidity, and limit material credit risk from investments underwritten to peak real estate valuations in 2022. However, in the second quarter of 2023, the company began stabilizing its investment portfolio holdings through greater investment activity. It focused on acquiring assets with less price sensitivity to credit deterioration, such as Agency RMBS, which is a compelling asset class to invest in over the near term due to attractive spread levels resulting from volatility in interest rates.
The company announced a strategic repositioning of its business in September 2022, involving the opportunistic disposition over time of its joint venture equity investments in multi-family properties and reallocation of returned capital from such investments to targeted assets. Throughout 2023 and 2024, New York Mortgage Trust, Inc. exited several joint venture equity investments in multi-family properties and reduced exposure in this disposal group of multi-family investments. The company intends to focus on its core portfolio strengths of single-family and multi-family residential assets, which it believes will deliver better risk-adjusted returns over time.
As of December 31, 2024, the company's Recourse Leverage Ratio and Portfolio Recourse Leverage Ratio increased to 3.0x and 2.9x, respectively, from 1.6x and 1.5x, primarily due to the financing of highly liquid U.S. Treasury securities and Agency RMBS. New York Mortgage Trust, Inc. completed a non-Agency RMBS re-securitization and five new, non-recourse securitizations of residential loans. It also issued $60.0 million of its 9.125% Senior Notes due 2029 in an underwritten public offering in the second quarter of 2024 and completed the issuance of $82.5 million of its 9.125% Senior Notes due 2030 in an underwritten public offering in January 2025.
The 10-K report also includes selected historical operating and financial data for the years ended December 31, 2020 to 2024. For instance, interest income increased from $258,388,000 in 2022 to $401,280,000 in 2024, while net income attributable to the company's common stockholders was a loss of $103,785,000 in 2024 compared to a loss of $340,577,000 in 2022.
Additionally, the report provides a detailed portfolio update for the year ended December 31, 2024, showcasing the company's investment activities, acquisitions, repayments, sales, and fair value changes across various asset categories such as residential loans, investment securities, preferred equity investments, mezzanine loans, and equity investments in consolidated multi-family properties.
The 10-K report offers a comprehensive view of New York Mortgage Trust, Inc.'s financial performance, strategic initiatives, and investment activities, providing valuable insights for investors and stakeholders. The market has reacted to these announcements by moving the company's shares 0.5% to a price of $6.46. For more information, read the company's full 10-K submission here.
