AG Mortgage Investment Trust, Inc. Reports Third Quarter 2024 Results

NEW YORK--(BUSINESS WIRE)--November 05, 2024-- 

AG Mortgage Investment Trust, Inc. ("MITT," "we," the "Company," or "our") (NYSE: MITT) today reported financial results for the quarter ended September 30, 2024.

MANAGEMENT REMARKS

"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," said T.J. Durkin, Chief Executive Officer and President. "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."

THIRD QUARTER FINANCIAL HIGHLIGHTS

   -- $10.58 Book Value per share as of September 30, 2024(1) 
 
          -- Quarterly economic return on equity of 3.9%(2) 
 
          -- Book value is calculated using stockholders' equity less the 
             liquidation preference of our cumulative redeemable preferred 
             stock of $228.0 million 
 
   -- $0.40 of Net Income/(Loss) Available to Common Stockholders per diluted 
      common share(3) 
 
   -- $0.17 of Earnings Available for Distribution ("EAD") per diluted common 
      share(3),(4) 

INVESTING AND FINANCING HIGHLIGHTS

   -- $6.8 billion Investment Portfolio as of September 30, 2024(5) 
 
          -- 0.6% Net Interest Margin, which includes a 0.1% benefit from the 
             net interest component of our interest rate swaps(6) 
 
   -- $31.0 million investment in Arc Home as of September 30, 2024 determined 
      using a valuation multiple of 0.95x book value(7) 
 
   -- $6.4 billion of financing as of September 30, 2024(5) 
 
          -- $5.6 billion of non-recourse and $0.8 billion of recourse 
             financing 
 
          -- 11.8x GAAP Leverage Ratio and 1.5x Economic Leverage Ratio(8) 
 
          -- Paid off the $79.1 million remaining principal amount outstanding 
             on the Legacy WMC Convertible Senior Unsecured Notes 
 
   -- $119.7 million of total liquidity as of September 30, 2024(9) 

DIVIDENDS

   -- On September 16, 2024, declared a third quarter dividend of $0.19 per 
      common share 
 
   -- On November 4, 2024, declared quarterly cash dividends of $0.51563, 
      $0.50, and $0.725061 per share on its Series A, Series B, and Series C 
      Preferred Stock, respectively, payable on December 17, 2024 to preferred 
      shareholders of record on November 29, 2024 

STOCKHOLDER CALL

The Company invites stockholders, prospective stockholders, and analysts to participate in MITT's third quarter earnings conference call on Tuesday, November 5, 2024 at 8:00 a.m. Eastern Time.

To participate in the call by telephone, please dial (800) 579-2543 at least five minutes prior to the start time. International callers should dial (785) 424-1789. The Conference ID is MITTQ324. To listen to the live webcast of the conference call, please go to https://event.on24.com/wcc/r/4717833/1E880CC895F6CB36B08B5EBF90951240 and register using the same Conference ID.

The Company issued an earnings presentation detailing its third quarter 2024 financial results, which is available on the Company's website, www.agmit.com, under "Presentations" in the "News & Presentations" section.

For those unable to listen to the live call, an audio replay will be available on November 5, 2024 through 8:30 a.m. Eastern Time on December 5, 2024. To access the replay, please go to the Company's website at www.agmit.com.

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 diversified credit and real estate investing platform within TPG.

Additional information can be found on the Company's website at www.agmit.com.

ABOUT TPG ANGELO GORDON

Founded in 1988, Angelo, Gordon & Co., L.P. ("TPG Angelo Gordon") is a diversified credit and real estate investing platform within TPG. The platform currently manages approximately $88 billion across a broad range of credit and real estate strategies. For more information, visit www.angelogordon.com.

FORWARD LOOKING STATEMENTS

This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with the safe harbor provisions. Words such as "expects," "endeavor," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "will," "should," "may," "projects," "could," "estimates," "continue" or variations of such words and other similar expressions are intended to identify such forward-looking statements, which generally are not historical in nature, but not all forward-looking statements include such identifying words. Forward-looking statements are based on our beliefs, assumptions and expectations of our future operations, business strategies, performance, financial condition, liquidity and prospects, taking into account information currently available to us, and are not guarantees of future performance. Forward-looking statements regarding the Company include, but are not limited to, our levels of liquidity, our ability to continue to execute on our prudent and disciplined approach to employing leverage, and whether the Company is well positioned to take advantage of exciting new opportunities in the residential mortgage space to drive earnings power for the benefit of the Company's shareholders. These forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. The Company believes these factors include, without limitation, changes in general economic or market conditions, including changes in inflation, interest rates and the fair value of our assets; changes in government regulations affecting our business; the Company's ability to grow its residential loan portfolio; changes in prepayment rates and mortgage default rates on the Company's assets; financing needs and arrangements; and the risk factors contained in the Company's filings with the Securities and Exchange Commission ("SEC"), including those described under the headings "Forward-Looking Statements" and "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and in other reports and documents filed by the Company with the SEC from time to time, which are accessible on the SEC's website, http://www.sec.gov/. Moreover, other risks and uncertainties of which the Company is not currently aware may also affect the Company's forward-looking statements and may cause actual results and the timing of events to differ materially from those anticipated. The forward-looking statements made in this press release are made only as of the date of this press release or as of the dates indicated in the forward-looking statements, even if they are subsequently made available by the Company on its website or otherwise. The Company undertakes no obligation to update or supplement any forward-looking statements to reflect actual results, new information, future events, changes in its expectations or other circumstances that exist after the date as of which the forward-looking statements were made, except as required by law. All financial information in this press release is as of September 30, 2024, unless otherwise indicated.

NON-GAAP FINANCIAL MEASURES

This press release contains EAD and Economic Leverage Ratio, non-GAAP financial measures. Our presentation of these measures may not be comparable to similarly-titled measures of other companies, who may use different calculations. These non-GAAP measures should not be considered a substitute for, or superior to, the financial measures calculated in accordance with GAAP. Our GAAP financial results and the reconciliations from these results should be carefully evaluated.

Earnings Available for Distribution(3),(4)

A reconciliation of GAAP Net Income/(loss) available to common stockholders to EAD is set forth below (in thousands, except per share data).

 
                                 Three Months Ended September 30, 2024 
                           ------------------------------------------------- 
                                     Amount              Per Diluted Share 
                           --------------------------  --------------------- 
Net Income/(loss) 
 available to common 
 stockholders                $             11,924        $          0.40 
Add (Deduct): 
    Net realized 
     (gain)/loss                           10,788                   0.37 
    Net unrealized 
     (gain)/loss                          (19,700)                 (0.66) 
    Transaction related 
     expenses and deal 
     related performance 
     fees                                     709                   0.02 
    Equity in 
     (earnings)/loss from 
     affiliates                               849                   0.03 
    EAD from equity 
     method 
     investments(a), (b)                      306                   0.01 
                           ---  -----------------      ---  ------------ 
Earnings available for 
 distribution                $              4,876        $          0.17 
 

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