NEW YORK - AG Mortgage Investment Trust, Inc. ('MITT,' 'we,' the 'Company,' or 'our') (NYSE: MITT) today reported financial results for the quarter ended September 30, 2022.
Q3 2022 FINANCIAL HIGHLIGHTS
$11.02 Book Value per share as of September 30, 2022 compared to $11.48 as of June 30, 2022(1)
$10.68 Adjusted Book Value per share as of September 30, 2022 compared to $11.15 as of June 30, 2022(1)
Decrease of (4.2)% from June 30, 2022
Quarterly economic return on equity of (2.3)%(2)
$(0.33) and $(0.03) of Net Income/(Loss) and Core Earnings per diluted common share, respectively(3)
$0.21 dividend per common share
MANAGEMENT REMARKS
'Despite the continued themes of inflation, volatility and uncertainty, coupled with credit spread widening, our adjusted book value was down 4.2% for the third quarter,' said TJ Durkin, Chief Executive Officer. 'We continued to execute our strategy of acquiring high quality, newly-originated Non-Agency Loans and we were disciplined and successful in terming out our warehouse financing into securitizations. This drove our strong liquidity position today and puts us in a position to play offense in volatile markets like this, as well as continue to invest excess capital into our common stock repurchase program.'
INVESTMENT AND FINANCING HIGHLIGHTS
$4.3 billion Investment Portfolio as of September 30, 2022 compared to $4.1 billion as of June 30, 2022(4)(5)
Purchased Non-Agency Loans with a fair value of $510.3 million and Agency-Eligible Loans with a fair value of $381.3 million during the quarter
$4.0 billion of financing as of September 30, 2022 compared to $3.4 billion as of June 30, 2022(4)(5)
$3.0 billion of non-recourse financing and $1.0 billion of recourse financing as of September 30, 2022
Executed a rated Non-Agency Loan securitization of $415.9 million of unpaid principal balance and a rated Agency-Eligible Loan securitization of $422.7 million of unpaid principal balance during the quarter, converting financing from recourse financing with mark-to-market margin calls to non-recourse financing without mark-to-market margin calls
Subsequent to quarter end, executed a rated Non-Agency Loan securitization of $457.4 million of unpaid principal balance, converting financing from recourse financing with mark-to-market margin calls to non-recourse financing without mark-to-market margin calls
2.0x Economic Leverage Ratio as of September 30, 2022 compared to 2.7x as of June 30, 2022(6)
1.1% Net Interest Margin(7)
$79.7 million of total liquidity as of September 30, 2022
Consisted of $77.6 million of cash and $2.1 million of unencumbered Agency RMBS
Total liquidity as of October 31, 2022 was $103.8 million
Accretive repurchase of 0.4 million shares of common stock for $2.3 million, representing a weighted average cost of $6.08 per share
ABOUT AG MORTGAGE INVESTMENT TRUST, INC.
AG Mortgage Investment Trust, Inc. is a residential mortgage REIT with a focus on investing in a diversified risk-adjusted portfolio of residential mortgage-related assets in the U.S. mortgage market. AG Mortgage Investment Trust, Inc. is externally managed and advised by AG REIT Management, LLC, a subsidiary of Angelo, Gordon & Co., L.P., a leading privately-held alternative investment firm focusing on credit and real estate strategies.
ABOUT ANGELO GORDON
Angelo, Gordon & Co., L.P. ('Angelo Gordon') is a privately-held alternative investment firm founded in November 1988. The firm currently manages approximately $52 billion with a primary focus on credit and real estate strategies. Angelo Gordon has over 600 employees, including more than 200 investment professionals, and is headquartered in New York, with associated offices elsewhere in the U.S., Europe and Asia.
FORWARD LOOKING STATEMENTS
This press release includes 'forward-looking statements' within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995 related to dividends, book value, adjusted book value, our investments, our business and investment strategy, investment returns, return on equity, liquidity, financing, taxes, our assets, our interest rate sensitivity, and our views on certain macroeconomic trends and conditions, among others. Forward-looking statements are based on estimates, projections, beliefs and assumptions of management of our 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 could differ materially from those projected in these forward-looking statements due to a variety of factors, including, without limitation, the uncertainty and economic impact of the COVID-19 pandemic and of responsive measures implemented by various governmental authorities, businesses and other third parties; whether challenging market conditions will provide us with attractive investment opportunities we anticipate or at all; our ability to continue to grow our residential investment portfolio; our acquisition pipeline; our ability to invest in higher yielding assets through Arc Home, other origination partners or otherwise; our levels of liquidity, including whether our liquidity will sufficiently enable us to continue to deploy capital within the residential whole loan space as anticipated or at all; the impact of market, regulatory and structural changes on the market opportunities we expect to have, and whether we will be able to capitalize on such opportunities in the manner we anticipate; the impact of recession on our business and ability to execute our strategy; whether we will be able to generate liquidity from additional opportunistic liquidations in our Re/Non-performing loan portfolio; our portfolio mix, including levels of Non-Agency and Agency mortgage loans; our ability to manage warehouse exposure as anticipated or at all; our levels of leverage, including our levels of recourse and non-recourse financing; our ability to execute securitizations, including at the pace anticipated or at all; our ability to achieve our forecasted returns on equity on warehoused assets and post-securitization, including whether such returns will support earnings growth; changes in our business and investment strategy; our ability to grow our adjusted book value; our ability to predict and control costs; changes in inflation, interest rates and the fair value of our assets, including negative changes resulting in margin calls relating to the financing of our assets; the impact of credit spread movements on our business; the impact of interest rate changes on our asset yields and net interest margin; changes in the yield curve; the timing and amount of stock issuances pursuant to our ATM program or otherwise; the timing and amount of stock repurchases, if any; our capitalization, including the timing and amount of preferred stock repurchases or exchanges, if any; expense levels, including levels of management fees; changes in prepayment rates on the loans we own or that underlie our investment securities; our distribution policy; Arc Home's performance, including its liquidity position and ability to manage current dynamics of the housing market; Arc Home's Non-Agency origination volumes; the composition of Arc Home's portfolio, including levels of MSR exposure; levels of leverage on Arc Home's MSR portfolio; our percentage allocation of loans originated by Arc Home; increased rates of default or delinquencies and/or decreased recovery rates on our assets; the availability of and competition for our target investments; our ability to obtain and maintain financing arrangements on terms favorable to us or at all; changes in general economic or market conditions in our industry and in the finance and real estate markets, including the impact on the value of our assets; conditions in the market for Residential Investments and Agency RMBS; our levels of Core Earnings; legislative and regulatory actions by the U.S. Department of the Treasury, the Federal Reserve and other agencies and instrumentalities; how COVID-19 may affect us, our operations and personnel; the forbearance program included in the Coronavirus Aid, Relief, and Economic Security Act; our ability to make distributions to our stockholders in the future; our ability to maintain our qualification as a REIT for federal tax purposes and our ability to qualify for an exemption from registration under the Investment Company Act of 1940, as amended. Additional information concerning these and other risk factors are contained in our filings with the Securities and Exchange Commission ('SEC'), including those described in Part I - Item 1A. 'Risk Factors' of our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, as such factors may be updated from time to time in our filings with the SEC. Copies are available free of charge on the SEC's website, http://www.sec.gov/. All forward looking statements in this press release speak only as of the date of this press release. We undertake no duty to update any forward-looking statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based. All financial information in this press release is as of September 30, 2022, unless otherwise indicated.
Contact:
Tel: (212) 692-2110
Email: ir@agmit.com
AG MORTGAGE INVESTMENT TRUST, INC. 
