Dilok Klaisataporn
AG Mortgage Investment Trust (NYSE:MITT) stock rose 2.2% in early Monday trading after its Q2 results met the Wall Street consensus and its total portfolio value rose as well as adjusted book value.
Q2 EPS available for distribution of $0.08, matching the average analyst estimate, rose $0.03 in the prior quarter and was unchanged from $0.08 in the year-ago period.
“Our prudent and disciplined securitization strategy is beginning to evidence itself in our earnings power, growing our EAD per share to $0.08 through higher net interest margin and improving fundamentals at Arc Home,” said CEO and President TJ Durkin.
Q2 net interest income of $11.4M compared with $11.6M in Q1 and $16.2M a year ago. Net interest margin of 0.8% was unchanged from the previous quarter and down from 1.1% a year ago.
Q2 expenses of $7.26M fell from $8.93M in the prior quarter and $10.5M in the year-ago period.
Economic leverage ratio of 1.6x at June 30, 2023 increased from 1.4x at March 31.
Adjusted book value per share increased to $11.52 at June 30 from $11.48 at March 31.
Total investment portfolio fair value increased to $4.61B at June 30, 2023 from $4.47B at March 31.
During the quarter, MITT purchased $219.2M of non-agency and agency-eligible loans during and strategically sold non-agency loans for total proceeds of $99.9M.
It also said loans with a fair value of $225.7M committed to be purchased from Arc Home as of quarter end. Growth in its pipeline from Arc Home and third parties after the end of the quarter currently approximates $354.5M of unpaid principal balance as of Aug. 7.
On July 31, AG Mortgage’s (MITT) independent directors unanimously consented to the company’s management agreement that will occur upon the closing of its previously announced acquisition of Angelo, Gordon & Co. LP, the parent company of MITT’s manager, by TPG (TPG). There will be no changes to the company’s management agreement in connection with TPG’s acquisition of Angelo Gordon and the assignment of the management agreement will become effective upon the closing of the transaction.
