AG Mortgage Investment Trust Inc is a real estate investment trust (REIT) focused on investing in a diversified risk-adjusted portfolio of residential mortgage-related assets in the U.S. mortgage market. The company's objective is to provide attractive risk-adjusted returns to its stockholders over the long term through dividends and capital appreciation.
Performance Overview
AG Mortgage Investment Trust Inc (MITT, Financial) reported a net loss available to common stockholders of $(0.02) per diluted common share for Q2 2024, missing the analyst estimate of $0.26 per share. The company generated $0.21 of Earnings Available for Distribution (EAD) per diluted common share, which was below the estimated earnings per share of $0.26. Revenue for the quarter was not explicitly stated in the filing but was implied to be below the estimated $17.03 million.
Key Financial Metrics
AG Mortgage Investment Trust Inc (MITT, Financial) reported a book value per share of $10.63 as of June 30, 2024, down from $10.84 as of March 31, 2024. The adjusted book value per share also decreased to $10.37 from $10.58 over the same period, representing a 2.0% decline.
| Metric | Q2 2024 | Q1 2024 |
|---|---|---|
| Book Value per Share | $10.63 | $10.84 |
| Adjusted Book Value per Share | $10.37 | $10.58 |
| Net Income/(Loss) per Share | $(0.02) | Not Provided |
| Earnings Available for Distribution per Share | $0.21 | Not Provided |
Investment and Financing Highlights
The company’s investment portfolio increased to $6.9 billion as of June 30, 2024, from $6.2 billion as of March 31, 2024. This growth was driven by the purchase of $423.2 million of Non-Agency and Agency-Eligible Loans and $428.5 million of Agency RMBS. The company also executed strategic sales of $19.9 million of Non-Agency RMBS, including $8.3 million from the legacy portfolio acquired from Western Asset Mortgage Capital Corporation (WMC).
On the financing front, AG Mortgage Investment Trust Inc (MITT, Financial) reported $6.5 billion of financing as of June 30, 2024, up from $5.8 billion as of March 31, 2024. This includes $5.2 billion of non-recourse financing and $1.3 billion of recourse financing. The company issued $65.0 million principal amount of 9.500% senior notes due 2029, generating net proceeds of approximately $62.4 million.
Management Commentary
"Our second quarter financial results show the continued execution of our core business strategy and the compelling benefits of our recent WMC acquisition. We generated $0.21 per share of EAD during the quarter, covering our newly set $0.19 per share dividend, which represented a 5.6% increase from the prior quarter's dividend," said TJ Durkin, Chief Executive Officer and President.
Dividend and Liquidity
The company declared a $0.19 dividend per common share for the second quarter of 2024, an increase of 5.6% compared to the $0.18 dividend declared in the first quarter of 2024. As of June 30, 2024, AG Mortgage Investment Trust Inc (MITT, Financial) had total liquidity of $180.2 million, consisting of $120.9 million in cash and cash equivalents and $59.3 million in unencumbered Agency RMBS.
Analysis
AG Mortgage Investment Trust Inc (MITT, Financial)'s performance in Q2 2024 reflects both achievements and challenges. The decrease in book value per share and adjusted book value per share indicates some underlying pressures, possibly from market conditions or portfolio adjustments. However, the increase in the investment portfolio and strategic financing moves, including the issuance of senior notes, demonstrate the company's proactive approach to managing its capital structure and investment strategy.
For value investors, the company's ability to cover its dividend with EAD and its strategic acquisitions and sales within its portfolio are positive signs. However, the net loss per share and the decline in book value warrant close monitoring in future quarters.
For more detailed insights and to access the full earnings report, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from AG Mortgage Investment Trust Inc for further details.
