Residential mortgage focus drives portfolio growth
AG Mortgage Investment Trust (MITT) has reported its third-quarter 2024 financial results, highlighting a solid economic return and growth in its residential mortgage-focused investment portfolio.
MITT’s book value per share stood at $10.58 as of September 30, 2024, with net income available to common stockholders reaching $0.40 per diluted share. Meanwhile, the company’s earnings available for distribution (EAD) came in at $0.17 per diluted share
The company achieved an economic return on equity of 3.9% as it expanded its investment portfolio and maintained ample liquidity.
AG Mortgage grew its investment portfolio by acquiring agency-eligible loans, which contributed to the portfolio's increase from $6.2 billion to $6.8 billion. The increase was driven by a shift toward acquiring agency-eligible loans and capitalizing on high-returning opportunities within the home equity space. MITT also executed several strategic moves in the second quarter of 2024, including selling off non-agency residential mortgage-backed securities (RMBS) and co-sponsoring a rated securitization.
“In the non-QM space, we continue to see the lowest cost of capital being no longer levered credit buyers,” MIIT chief investment officer Nick Smith said during the Q2 earnings call. “We believe it’s prudent to deploy capital in higher-returning opportunities, including agency-eligible positions.”
MITT ended the third quarter with $119.7 million in total liquidity and continued to strengthen its balance sheet by paying off the remaining $79.1 million principal on its Legacy WMC Convertible Senior Unsecured Notes. The trust’s financing totaled $6.4 billion, with $5.6 billion in non-recourse financing and $0.8 billion in recourse financing.
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The company declared a third-quarter dividend of $0.19 per common share, paid on September 16, and also announced preferred dividends for Series A, B, and C shareholders, payable on December 17.
“MITT delivered yet another strong quarter as we continue to execute the core business strategy of originating and securitizing residential whole loans, with MITT generating an economic return on equity of 3.9% for the quarter,” T.J. Durkin, chief executive officer and president of MIIT, said in the financial report. “With ample liquidity, and our prudent and disciplined approach to employing leverage, we believe MITT is well positioned to take advantage of exciting new opportunities in the residential mortgage space to drive earnings power for the benefit of MITT’s shareholders.”
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