New York Mortgage Trust Provides Business Update as of April 7, 2020
“The Company continues to navigate the difficult financial and economic environment resulting from the global pandemic of the COVID-19 virus,” said
The Company announced the following updates as of the close of business on
- The Company has reduced its outstanding repurchase agreement financing with respect to mortgage-backed securities (“MBS”) to approximately
$150 millionwith one counterparty.
- The continued reduction in the Company’s MBS repurchase agreement financing exposure was achieved through a combination of the sale of
$291 millionin MBS since March 27, 2020and a $250 millionincrease in repurchase agreement financing with respect to the Company’s residential mortgage loan portfolio. The increased financing is collateralized by previously unencumbered residential mortgage loans. The reduction in the Company’s repurchase agreement financing for MBS significantly lowers the Company’s MBS mark-to-market financing exposure, which was a primary factor in the reduction of liquidity to mortgage REITs in recent weeks.
- In addition to the
$150 millionof outstanding repurchase agreement financing collateralized by non-Agency RMBS noted above, the Company has approximately $962 millionof outstanding repurchase agreement financing secured by residential mortgage loans, resulting in total outstanding repurchase agreement financing of approximately $1.1 billion.
- The Company is current with all of its repurchase agreement financing payment obligations including margin requirements.
- The Company has a total investment portfolio of approximately
$3.0 billion, including approximately $1.1 billionof unencumbered assets comprised primarily of $554 millionof non-Agency RMBS, $276 millionof CMBS and $272 millionof residential mortgage loans, and approximately $200 millionin cash.
- The Company estimates that its total debt leverage ratio is 0.7 to 1.
“The Company also continues to explore term financing options for the approximately
Cautionary Note Regarding Forward-Looking Statements
When used in this press release or other written or oral communications, statements which are not historical in nature, including those containing words such as “will,” “believe,” “expect,” “anticipate,” “estimate,” “plan,” “continue,” “intend,” “could,” “would,” “should,” “may”, “expect” or similar expressions, are intended to identify “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 “Exchange Act”), and, as such, may involve known and unknown risks, uncertainties and assumptions. Statements regarding the following subjects, among others, may be forward-looking: the availability of other financing options and whether such financing options could enhance liquidity or provide opportunities to invest. Forward-looking statements are based on estimates, projections, beliefs and assumptions of management of the 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 and outcomes could differ materially from those projected in these forward-looking statements due to a variety of factors, including, without limitation, changes in interest rates and the market value of the Company’s assets; changes in credit spreads; changes in the long-term credit ratings of the
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Source: New York Mortgage Trust, Inc.