Great Ajax Corp (NYSE:AJX)
$ 3.41 -0.11 (-3.13%) Market Cap: 155.52 Mil Enterprise Value: 468.10 Mil PE Ratio: 0 PB Ratio: 0.61 GF Score: 39/100
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Q2 2024 Great Ajax Corp Earnings Call Transcript

Jul 24, 2024 / 12:00PM GMT
Release Date Price: $3.49 (-9.35%)

Key Points

Positve
  • Great Ajax Corp (AJX) is transitioning to focus on commercial real estate, leveraging the expertise of the Rithm Capital team.
  • The company has a clean balance sheet with no legacy commercial real estate assets, positioning it well for future growth.
  • The Board voted to maintain the current dividend, indicating confidence in future earnings potential.
  • Great Ajax Corp (AJX) has increased its cash reserves, preparing to deploy capital into higher-yielding commercial real estate assets.
  • The company is targeting mid-teens returns on new investments, which could be highly accretive for shareholders.
Negative
  • Great Ajax Corp (AJX) reported a GAAP net loss of $12.7 million for the quarter, driven by mark-to-market losses and realized losses on mortgage loan sales.
  • The company continues to have a negative net interest margin, contributing to ongoing financial losses.
  • There is a need for more equity capital over time to support growth, which may dilute existing shareholders.
  • The transition to a commercial real estate focus will take time, and the company is not yet cash flow positive.
  • Book value per share has decreased, with a full fair value mark-to-market valuation significantly lower than the amortized cost value.
Operator

Good day and welcome to the Great Ajax second quarter 2024 earnings call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Emma Bowling. Please go ahead.

Emma Bowling
Great Ajax Corp.

Thank you, and good morning, everyone. I would like to thank you for joining us today for Great Ajax's second quarter 2024 earnings call. Joining me today are Michael Nierenberg, Chairman, CEO, and President of Rithm Capital and CEO of Great Ajax, and Mary Doyle, Principal Financial Officer of Great Ajax. Throughout the call, we are going to reference the earnings supplement that was posted this morning to the Great Ajax website, www.greatajax.com.

If you've not already done so, I'd encourage you to download the presentation. I would like to point out that certain statements made today will be forward-looking statements. These statements, by their nature are uncertain and may differ materially from actual results. I encourage you to review

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